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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_____________
FORM 8-K
______________
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) November 15, 2023

ARMOUR Residential REIT, Inc.
(Exact Name of Registrant as Specified in Its Charter)

Maryland001-3476626-1908763
(State or Other Jurisdiction
of Incorporation)		(Commission File Number)(I.R.S. Employer Identification No.)
3001 Ocean Drive, Suite 201 
Vero Beach,Florida32963
(Address of Principal Executive Offices) (Zip Code)

(772) 617-4340
(Registrant’s Telephone Number, Including Area Code)

n/a
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading symbolsName of Exchange on which registered
Preferred Stock, 7.00% Series C Cumulative RedeemableARR-PRCNew York Stock Exchange
Common Stock, $0.001 par valueARRNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).        

Emerging growth company ☐

If an emerging growth company, indicate by a check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐




Item 7.01.    Regulation FD Disclosure.

On November 15, 2023, ARMOUR Residential REIT, Inc. (“ARMOUR”) furnished a slide deck presentation to be presented by members of ARMOUR's executive management, to participants at the JMP Securities Financial Services Conference on November 16, 2023. The slide deck presentation contains updates on ARMOUR's financial position, business and operations. Attached as Exhibit 99.1 to this report is the slide deck presentation to be presented.

The slide deck presentation attached to this report as Exhibit 99.1 is furnished pursuant to this Item 7.01 and shall not be deemed filed in this or any other filing of ARMOUR under the Securities Exchange Act of 1934, as amended, unless expressly incorporated by specific reference in any such filing.

Item 9.01.    Financial Statements and Exhibits.

(d) Exhibits
  
Exhibit No.Description
99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL document)



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: November 15, 2023

ARMOUR RESIDENTIAL REIT, INC.

By: /s/ Mark Gruber 
Name: Mark Gruber
Title: Chief Investment Officer




JMP Securities Financial Services Conference 11/16/2023 ARMOUR Residential REIT, Inc. (“ARMOUR”; NYSE ticker ARR) brings private capital into the mortgage markets to support home ownership for a broad and diverse spectrum of Americans. We seek to create shareholder value through thoughtful investment and risk management of a leveraged and diversified portfolio of mortgage-backed securities issued or guaranteed by U.S Government-sponsored entities. We rely on the decades of experience of our management team for (i) MBS securities portfolio analysis and selection, (ii) access to equity capital and repurchase financing on potentially attractive rates and terms, and (iii) hedging and liquidity strategies to moderate interest rate and MBS price risk. We prioritize maintaining common share dividends appropriate for the intermediate term rather than focusing on short-term market fluctuations.

 
2 • Certain statements made in this presentation regarding ARMOUR Residential REIT, Inc. (“ARMOUR” or the “Company”), and any other statements regarding ARMOUR’s future expectations, beliefs, goals or prospects constitute “forward-looking statements” made within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions) should also be considered forward-looking statements. Forward-looking statements include but are not limited to statements regarding the projections and future plans for ARMOUR’s business, growth and operational improvements. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of ARMOUR’s control. A number of important factors could cause actual results or events to differ materially from those indicated by such forward-looking statements. Additional information concerning these factors and risks are contained in the Company’s most recent annual and quarterly reports and other reports filed with the Securities and Exchange Commission. ARMOUR assumes no obligation to update the information in this communication, except as otherwise required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. • This material is for information purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation for any securities or financial instruments. The statements, information and estimates contained herein are based on information that the Company believes to be reliable as of today's date unless otherwise indicated. ARMOUR cannot guarantee future results, levels of activity, performance or achievements. • Pricing and duration information are estimates provided by independent third-party providers based on models that require inputs and assumptions. Actual realized prices and durations will depend on a number of factors that cannot be predicted with certainty and may be materially different from estimates. • Estimates do not reflect any costs of operation of ARMOUR. • THE INFORMATION PRESENTED HEREIN IS UNAUDITED AND NOT REVIEWED BY OUR INDEPENDENT PUBLIC ACCOUNTANTS. PLEASE READ: Important Note Regarding Forward Looking Statements and Estimates

 
3 Stockholders' Equity, Liquidity, and Leverage Dividend Policy Shareholder Alignment Transparency and Governance ARMOUR REIT Manager • Book Value per Common Share was $20.74, after accrual of November dividends. ◦ Stockholder's Equity was $1.2 billion, including the 7.00% Series C Cumulative Redeemable Preferred Stock ("Series C Preferred") with liquidation preference totaling $171 million. ◦ On average for the last three years ARMOUR stock price has closed monthly within 4% of Book Value. • Liquidity was approximately $578 million, consisting of $107 million cash, $355 million unlevered Agency and US Treasury securities and $116 million of principal and interest receivables. • Implied leverage for the Portfolio was 7.5x, which includes TBAs, forward settling net transactions and Treasury Short positions. • ARMOUR pays dividends monthly. The Company previously announced the November and December 2023 common stock dividends of $0.40 per share. • The Company sets its dividend rate based on the amount of its capital, responsible risk analysis and on the earnings power of the portfolio, after hedging and financing, with a medium term perspective. Under current market conditions, we expect the Company's returns to support a dividend yield for January 2024 in approximately the low to mid teens (12% to 15%) as a percentage of book value. The Company will give further guidance on its January dividend in December. • Since inception in November 2009, ARMOUR has paid out $2.1 billion in dividends.(2) • Returned $284 million to common shareholders through share repurchases since 2013. • Senior management maintains common stock ownership basis in excess of $5.75 million aggregate target. • Managed preferred shares through repurchases, calls, and refinancing to maximize value in capital structure. • Updated portfolio and liability details can be found monthly at www.armourreit.com. • Non-Executive Board Chairman and separate Lead Independent Director. • ARMOUR REIT is externally managed by ARMOUR Capital Management LP. • ARMOUR Capital Management LP is the majority owner of BUCKLER Securities, a FINRA registered broker-dealer. ARMOUR Overview as of November 14, 20231 1 (1) Many of the numbers presented herein are estimates based on information provided in some cases by outside vendors and are unaudited. (2) Includes both common and preferred stock dividends through November 2023. 2 3 4 5 ARMOUR manages an investment portfolio consisting of mortgage-backed securities issued or guaranteed by U.S. Government-sponsored enterprises (“GSEs”), Treasury securities, and cash; a financing position consisting primarily of repurchase agreements and preferred equity and a hedge book consisting primarily of interest rate swaps, Treasury futures and Treasury shorts.

 
4 • Approximately 77% of ARMOUR's Agency Portfolio positions (excluding TBA positions) contain better convexity characteristics, including: ◦ 32% have loan-to-value ratios greater than 95%, FICO scores of less than 700 or seasoning of greater than 24 months. ◦ 22% have 100% loans in geographies with additional taxes on refinancing and cash-out transactions such as TX, FL, and NY. ◦ 20% have loan balances less than or equal to 275k. ◦ 4% have prepayment penalties (Agency Multifamily). ARMOUR Portfolio Securities % of Portfolio Current Value (millions) Weighted Average Book Price Weighted Average Market Price Weighted Average Net/Gross Coupon Estimated Effective Duration Agency Multifamily Ballooning in 120 Months or Less 4.5% $472 99.5% 95.1% 4.48/5.35 7.53 Agency Fixed Rates MBS Maturing Between 0 and 360 Months 96.8% $10,142 100.1% 95.6% 5.11/5.96 5.00 Agency 30Y TBA Net Positions(1) -1.3% -$134 91.1% 91.8% 4.44/ N/A -3.25 Total Portfolio 100.0% $10,480 ARMOUR Portfolio and Financing Composition (1) The Agency 30Y TBA Short Positions effectively pare down certain specified pools. (2) BUCKLER Securities LLC is a FINRA registered broker-dealer affiliated with ARMOUR REIT. (3) The repurchase agreement table excludes $656 million of overnight reverse repo for ARMOUR's Treasury Short position, which reduces our repo notional outstanding. Information as of 11/14/2023. Portfolio value is based on independent third-party pricing. Information includes estimates of the effect of forward settling trades. Some totals may not foot due to rounding. ARMOUR Repurchase Agreements Repo Counterparty Principal Borrowed (millions) % of Repo Positions Wtd. Avg. Original Term Wtd. Avg. Remaining Days Longest Remaining Term in Days BUCKLER Securities LLC (2) $4,967 51.7% 26 13 30 All Other Counterparties $4,634 48.3% 34 19 30 Total or Wtd. Avg. (3) $9,601 100.0% 30 16

 
5 Information as of 11/14/2023. Some totals may not foot due to rounding. ARMOUR Hedging Composition 6 Remaining Term (in months) N ot io na l ( in m ill io ns ) Interest Rate Swap Breakdown by Months to Maturity 0 - 12 M on th s 13 - 2 4 M on th s 25 - 3 6 M on th s 37 - 4 8 M on th s 49 - 6 0 M on th s 61 - 7 2 M on th s 73 - 8 4 M on th s 85 - 9 6 M on th s 97 - 1 08 M on th s 10 9 - 12 0 M on th s 0 500 1,000 1,500 2,000 Total Swap Notional is $7.9B with a weighted average maturity of 76 months. Hedge Portfolio Summary as of 11/14/2023 Derivative Type Notional Amount (in millions) Interest Rate Swaps $7,886 10-Year Treasury Shorts $700 10-Year Treasury Future Shorts $300

 
6 Constant Prepayment Rate ("CPR") is the annualized equivalent of single monthly mortality ("SMM"). CPR attempts to predict the percentage of principal that will prepay over the next twelve months based on historical principal pay downs. CPR is reported on the 4th business day of the month for the previous month's prepayment activity. ARMOUR's Agency Portfolio Constant Prepayment Rates ("CPR") Monthly Portfolio CPR Jan ua ry 20 18 Ju ne 20 18 No ve mb er 20 18 Ap ril 20 19 Se pt em be r 2 01 9 Fe br ua ry 20 20 Ju ly 20 20 De ce mb er 20 20 M ay 20 21 Oc to be r 2 02 1 M ar ch 20 22 Au gu st 20 22 Jan ua ry 20 23 Ju ne 20 23 No ve mb er 20 23 0 5 10 15 20

 
7ARMOUR Net Interest Margin Pe rc en t Asset Yield Cost of Funds including Hedges Net Interest Margin 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1 2 3 4 Information as of Q3 2023.

 
ARMOUR Residential REIT, Inc. 3001 Ocean Drive Suite 201 Vero Beach, FL 32963 armourreit.com 772-617-4340

 
v3.23.3
Cover Document
Nov. 15, 2023
Document Information [Line Items]  
Document Type 8-K
Document Period End Date Nov. 15, 2023
Entity Registrant Name ARMOUR Residential REIT, Inc.
Entity Incorporation, State or Country Code MD
Entity File Number 001-34766
Entity Tax Identification Number 26-1908763
Entity Address, Address Line One 3001 Ocean Drive, Suite 201
Entity Address, City or Town Vero Beach,
Entity Address, State or Province FL
Entity Address, Postal Zip Code 32963
City Area Code 772
Local Phone Number 617-4340
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0001428205
Amendment Flag false
Series C Preferred Stock [Member]  
Document Information [Line Items]  
Title of 12(b) Security Preferred Stock, 7.00% Series C Cumulative Redeemable
Trading Symbol ARR-PRC
Security Exchange Name NYSE
Common Stock  
Document Information [Line Items]  
Title of 12(b) Security Common Stock, $0.001 par value
Trading Symbol ARR
Security Exchange Name NYSE
ARMOUR Residential REIT (NYSE:ARR-C)
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