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Mar 31, 2020
ARMOUR Residential REIT Q1 2020 Earnings Report
ARMOUR Residential REIT announced its financial position for Q1 2020, detailing the impacts of COVID-19 and risk mitigation efforts.
Key Takeaways
ARMOUR Residential REIT reported a stockholders' equity of $786 million and liquidity of $360 million, while navigating market volatility due to COVID-19 by reducing its Agency Securities portfolio and managing its swap portfolio.
Book value per common share was $11.10.
Liquidity, including cash and unencumbered securities, was $360 million.
Stockholders' equity totaled $786 million, including preferred stock.
Debt to equity ratio was 4.4 to 1.
Forward Guidance
ARMOUR expects to announce its decision regarding the amount of second quarter dividends on common stock in the latter part of June 2020 as well as whether the Company will return to its prior monthly dividend policy.
Positive Outlook
- Company will move to a quarterly dividend on its common stock for the second quarter of 2020.
- Adopting the more conventional policy of announcing quarterly dividends towards the end of the quarter, the Company believes it can maintain greater flexibility and generate increased liquidity.
- Company is required to timely distribute substantially all of its ordinary REIT taxable income for the tax year to maintain its tax status as a REIT.
- ARMOUR’s Board of Directors will evaluate the Company’s results, financial position, real estate investment trust (“REIT”) tax requirements, and overall market conditions as the quarter progresses.
- ARMOUR’s liquidity exceeded $460 million as of April 27, 2020.
Challenges Ahead
- The extent of the ultimate impact of the COVID-19 pandemic on the Company's operational and financial performance will depend on various developments, including the duration of the outbreak and the spread of the virus and the federal government's and states' responses to the virus, which cannot be reasonably predicted at this time.
Historical Earnings Impact
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