ARMOUR Residential REIT (ARR) Q1 2026 earnings summary

Executive summary

• Reported a GAAP net loss attributable to common stockholders of $(58.0) million, or $(0.49) per share, for Q1 2026, driven by unrealized losses on agency securities and derivatives, despite higher interest income and derivative gains.

• Distributable Earnings available to common stockholders were $90.5 million, or $0.76 per share, up from $0.71 in Q4 2025.

• Book value per common share declined 6.5% to $17.42 as of March 31, 2026, but recovered to $18.05 by April 20, 2026, net of dividend accrual.

• Total economic return for Q1 2026 was (2.6)%.

• Maintained a stable monthly dividend of $0.24 per common share, totaling $0.72 for the quarter.

Financial highlights

• Net interest income for Q1 2026 was $70.7 million, up from $50.4 million in Q4 2025.

• Portfolio balance increased to $21.1 billion, with 92.5% in Agency MBS, 4.7% in U.S. Treasuries, and 2.8% in TBA securities.

• Liquidity stood at $1.12 billion, representing about 48% of total equity.

• Raised $215.3 million via 11.8 million common shares and $6.4 million via 306,000 preferred shares through at-the-market offerings.

• Repurchased 125,000 common shares in March 2026.

Outlook and guidance

• Management emphasized maintaining robust liquidity, systematic hedging, and disciplined capital deployment amid market volatility.

• Confident in positioning and strategy for 2026, with a focus on shareholder value and stable dividends.

• Return on equity for new agency purchases is in the mid to high teens, potentially reaching 19%-20% with spread tightening.

• Anticipate strong demand for agency MBS if Fed resumes easing cycle.

• May 2026 common dividend set at $0.24 per share, with ex-dividend date on May 15, 2026, and pay date on May 28, 2026.