ARMOUR Residential REIT (ARR) Q4 2024 earnings summary

Executive summary

• Q4 2024 GAAP net loss attributable to common stockholders was $49.4 million, or $0.83 per share, compared to net income of $62.9 million in Q3 2024.

• Distributable earnings available to common stockholders were $46.5 million, or $0.78 per share, down from $52.0 million ($1.00 per share) in Q3 2024.

• Book value per common share declined to $19.07 at December 31, 2024, with an updated estimate of $19.18 as of February 10, 2025.

• Paid $0.24 per share monthly dividend, totaling $0.72 for the quarter; cumulative distributions now $2.4 billion.

• Raised $136.2 million net capital in Q4 via ATM common stock issuance, with an additional $259 million raised through February 2025.

Financial highlights

• Net interest income for Q4 was $12.7 million.

• Economic net interest spread was 1.53% in Q4 2024, up from 0.65% in Q3 2024.

• Total economic return for Q4 2024 was (4.67)% and (2.62)% for the full year 2024.

• Book value per share at quarter-end was $19.07, with an updated estimate of $19.18 as of February 10, 2025.

• Liquidity at year-end was $608.0 million, with $12.4 billion in agency MBS and $10.7 billion in repurchase agreements.

Outlook and guidance

• Expectation of range-bound interest rates in early 2025, supporting consistent MBS returns.

• Earnings available for distribution anticipated to exceed Q1 dividend rate.

• ROE on new MBS deployments projected at 18–19%.

• Volatility in rates and spreads expected to remain subdued, providing a favorable environment for MBS.

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