Armour Residential REIT

ARMOUR invests in mortgage-backed securities that help fund home loans in the US. Its main products support the housing market by providing liquidity for lenders. This benefits homeowners and financial institutions by making mortgages more accessible.

Mortgage Menu: What’s on Offer?

• Agency Mortgage-Backed Securities (MBS): Securities backed by home loans, issued or guaranteed by US government agencies; these make up the primary portion of the portfolio.
• Non-Agency MBS: Securities backed by home loans not guaranteed by government agencies; small portion of portfolio.
• Unsecured Notes and Bonds: Debt issued by government-sponsored entities, used for portfolio diversification.
• US Treasury Securities: Short-term government debt for liquidity and risk management.
• Money Market Instruments: Short-term, low-risk investments to manage cash and liquidity needs.

Growth and Expansion: The ARMOUR Playbook

• Expanded agency MBS portfolio, purchasing $7.27 billion in securities in 2024.
• Raised $265.6 million through at-the-market equity offerings in 2024.
• Invested in BUCKLER Securities LLC to secure favorable financing terms (2024).
• Extended management agreement with ARMOUR Capital Management LP through 2029.

What Makes ARMOUR Stand Out?

ARMOUR uses a leveraged investment strategy, borrowing to invest in mortgage-backed securities. It relies on external management for portfolio and risk oversight. The company hedges interest rate risk with derivatives and maintains diverse financing sources.

Five Things You Need to Know

• Total comprehensive income was $161 million in Q3 2025, up 142.2% year-on-year.
• Total assets reached $1.56 billion in Q3 2025, up 47.9% from Q3 2024.
• Net loss improved to $14.4 million in FY 2024 from $67.9 million in FY 2023.
• Leverage ratio was 7.87:1 at December 31, 2024, reflecting high use of debt.

Bottom Line

ARMOUR has evolved by expanding its mortgage-backed securities portfolio and adapting its financing strategies. The company’s focus on agency-backed assets and risk management defines its approach in a volatile market.