ARMOUR Residential REIT (ARR) Q2 2025 earnings summary

Executive summary

• Reported Q2 2025 GAAP net loss attributable to common stockholders of $78.6 million, or $0.94 per share, with distributable earnings of $64.9 million, or $0.77 per share.

• Raised $104.6 million in Q2 and an additional $59 million since June 30 through at-the-market offerings, increasing outstanding shares to 91.5 million.

• Paid $0.72 per share in dividends for Q2 and declared further monthly dividends of $0.24 per share for July and August.

• Maintained a strategy focused on disciplined capital deployment, robust liquidity, and dynamic hedging amid market volatility.

• Maintained REIT status, with operations designed to meet federal tax requirements and distribute taxable income.

Financial highlights

• Net interest income for Q2 was $33.1 million, with economic net interest spread at 1.82%.

• Book value per common share was $16.90 at June 30, 2025, down from $18.59 at March 31, 2025.

• Total assets increased to $16.24 billion at June 30, 2025, from $13.55 billion at December 31, 2024.

• Management fee waivers totaled $1.65 million in Q2, offsetting operating expenses.

• Total expenses after fee waivers were $14.3 million, slightly elevated due to higher professional fees.

Outlook and guidance

• Expectation of Fed rate cuts later in 2025, which could boost agency MBS demand and liquidity.

• Current dividend policy viewed as sustainable and appropriate for the medium term.

• Board to determine future dividend rates based on results, financial position, REIT tax requirements, and market conditions.

• Optimism for improved structural demand for MBS as regulatory clarity and Fed easing progress.

• Management remains focused on liquidity and risk mitigation amid ongoing market volatility and global trade tensions.