# EDGAR Filing Document

**Accession Number:** 0001428205
**File Stem:** 0001428205-23-000063
**Filing Date:** 2023-3
**Character Count:** 13643
**Document Hash:** 50ca1177141eb5b66fa4132712abed25
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001428205-23-000063.hdr.sgml**: 20230310

**ACCESSION NUMBER**: 0001428205-23-000063

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 22

**CONFORMED PERIOD OF REPORT**: 20230310

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230310

**DATE AS OF CHANGE**: 20230310

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Armour Residential REIT, Inc.
- **CENTRAL INDEX KEY:** 0001428205
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **IRS NUMBER:** 261908763
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-34766
- **FILM NUMBER:** 23723766

**BUSINESS ADDRESS:**
- **STREET 1:** 3001 OCEAN DRIVE
- **STREET 2:** SUITE 201
- **CITY:** VERO BEACH
- **STATE:** FL
- **ZIP:** 32963
- **BUSINESS PHONE:** (772) 617-4340

**MAIL ADDRESS:**
- **STREET 1:** 3001 OCEAN DRIVE
- **STREET 2:** SUITE 201
- **CITY:** VERO BEACH
- **STATE:** FL
- **ZIP:** 32963

?xml version="1.0" ? arr-20230310

**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) <u>March 10, 2023</u>

**<u>ARMOUR Residential REIT, Inc.</u>**

(Exact Name of Registrant as Specified in Its Charter)

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| | | |
|:---|:---|:---|
| **Maryland** | **001-34766** | **26-1908763** |
| (State or Other Jurisdiction<br>of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |

---

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| | | |
|:---|:---|:---|
| **3001 Ocean Drive, Suite 201** | **3001 Ocean Drive, Suite 201** | |
| **Vero Beach,** | **Florida** | **32963** |
| (Address of Principal Executive Offices) | (Address of Principal Executive Offices) | (Zip Code) |

---

**<u>(772) 617-4340</u>**

(Registrant's Telephone Number, Including Area Code)

**<u>n/a</u>**

(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):

☐**&nbsp;&nbsp;&nbsp;&nbsp;**Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐**&nbsp;&nbsp;&nbsp;&nbsp;**Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐**&nbsp;&nbsp;&nbsp;&nbsp;**Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐**&nbsp;&nbsp;&nbsp;&nbsp;**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:

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| | | |
|:---|:---|:---|
| **Title of Each Class** | **Trading symbols** | **Name of Exchange on which registered** |
| Preferred Stock, 7.00% Series C Cumulative Redeemable | ARR-PRC | New York Stock Exchange |
| Common Stock, $0.001 par value | ARR | New York Stock Exchange |

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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).&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

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 ☐

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**Item 7.01.&nbsp;&nbsp;&nbsp;&nbsp;Regulation FD Disclosure.**

On March 10, 2023, ARMOUR Residential REIT, Inc. ("ARMOUR") produced for distribution a slide deck presentation, which contains updates on ARMOUR's financial position, business and operations. Attached as Exhibit 99.1 to this report is the slide deck presentation produced by ARMOUR.

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.&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits.** 

(d) Exhibits

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| | |
|:---|:---|
| **<u>Exhibit No.</u>** | **<u>Description</u>** |
| 99.1 | <u>[Slide Deck Presentation dated March 10, 2023](companyupdatemarch2023.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

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**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: March 10, 2023

**ARMOUR RESIDENTIAL REIT, INC.**

By: <u>/s/ Mark Gruber</u> 

Name: Mark Gruber

Title: Chief Investment Officer

## Exhibit 99.1

![](companyupdatemarch2023001.jpg)

ARMOUR RESIDENTIAL REIT, Inc. Company Update 3/10/2023 ARMOUR seeks to create shareholder value through thoughtful investment and risk management that produces current yield and superior risk adjusted returns over the long term. Our focus on residential real estate finance supports home ownership for a broad and diverse spectrum of Americans by bringing private capital into the mortgage markets.

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![](companyupdatemarch2023002.jpg)

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

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![](companyupdatemarch2023003.jpg)

3 Stockholders' Equity and Liquidity Dividend Policy Shareholder Alignment Transparency and Governance ARMOUR REIT Manager • As previously reported, Stockholders' Equity as of February 13, 2023 totaled $1.4 billion, including the 7.00% Series C Cumulative Redeemable Preferred Stock ("Series C Preferred") with liquidation preference totaling $171 million. • February 28, 2023 liquidity was approximately $737 million, consisting of $118 million cash and $619 million unlevered Agency and US Treasury securities. • ARMOUR pays dividends monthly. • The Company previously announced the March common stock dividend of $0.08 per share payable on March 28, 2023 to holders of record on March 15, 2023. • Since inception in November 2009, ARMOUR has paid out $1.9 billion in dividends.(1) • Returned $278 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 1 (1) Includes both common and preferred stock dividends through February 2023. Information as of 02/28/2023. 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.

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![](companyupdatemarch2023004.jpg)

4 ARMOUR Portfolio(1) Securities % of Portfolio Current Value (millions) Weighted Average Book Price Weighted Average Market Price Weighted Average Net/Gross Coupon Estimated Effective Duration Agency Fixed Rates MBS Maturing Between 0 and 360 Months 97.1% $11,640 100.6% 97.2% 4.87/5.72 4.65 Agency 30Y TBA Long Positions 2.9% $353 102.0% 101.0% 5.93/ N/A 2.79 Total Portfolio 100.0% $11,994 ARMOUR Portfolio and Financing Composition (1) As of 02/28/2023, ARMOUR had approximately $790 million in forward settling net purchases. These pools will likely go on repo upon settlement. (2) The repurchase agreement table includes $500 million of overnight reverse repo for ARMOUR's Treasury Short position, which reduces our repo notional outstanding. (3) BUCKLER Securities LLC is a FINRA registered broker-dealer affiliated with ARMOUR REIT. Information as of 02/28/2023. 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(2) Repo Counterparty Principal Borrowed (millions) % of Repo Positions Wtd. Avg. Original Term Wtd. Avg. Remaining Days Longest Remaining Term in Days BUCKLER Securities LLC (3) $4,556 48.8% 47 33 55 All Other Counterparties $4,785 51.2% 52 35 52 Total or Wtd. Avg. $9,341 100.0% 50 34

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![](companyupdatemarch2023005.jpg)

5 Information as of 02/28/2023. Some totals may not foot due to rounding. ARMOUR Hedging Composition 6 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 1,000 2,000 Total Hedge Breakdown by Type IRS: OIS 58.3% IRS: SOFR 20.7% 2-Year Treasury Futures 4.2% 5-Year Treasury Futures 11.6% 5-Year Treasury Shorts 5.3% Total Swap Notional is $7.5B with a weighted average maturity of 66 months. ARMOUR is currently active with seven swap counterparties.

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![](companyupdatemarch2023006.jpg)

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 Ap ril 20 18 Ju ly 20 18 Oc to be r 2 01 8 Jan ua ry 20 19 Ap ril 20 19 Ju ly 20 19 Oc to be r 2 01 9 Jan ua ry 20 20 Ap ril 20 20 Ju ly 20 20 Oc to be r 2 02 0 Jan ua ry 20 21 Ap ril 20 21 Ju ly 20 21 Oc to be r 2 02 1 Jan ua ry 20 22 Ap ril 20 22 Ju ly 20 22 Oc to be r 2 02 2 Jan ua ry 20 23 0 5 10 15 20

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![](companyupdatemarch2023007.jpg)

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 0 1 2 3 4 Information as of Q4 2022.

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![](companyupdatemarch2023008.jpg)

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

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