FAQ

ARMOUR is an externally managed Maryland corporation incorporated in 2008. The Company is managed by ACM, an investment advisor registered with the Securities and Exchange Commission.

ARMOUR’s Series C Preferred Stock and our common stock are currently listed on the NYSE under the symbols “ARR-PRC,” and “ARR,” respectively.

ARMOUR invests in mortgage backed securities issued or guaranteed by a United States Government-sponsored entity, such as the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), or a government agency such as Government National Mortgage Administration (Ginnie Mae) (collectively, "Agency Securities"). ARMOUR’s Agency Securities consist primarily of fixed rate loans. The remaining are either backed by hybrid adjustable rate or adjustable rate loans. From time to time ARMOUR has also invested in Credit Risk and Non-Agency Securities, Interest-Only Securities, U.S. Treasury Securities and money market instruments.

ARMOUR leverages its Agency mortgage investment portfolio with borrowings, which are generally short term and are secured by ARMOUR’s investment securities. The broad target leverage ratio is six to ten times debt to equity based on ARMOUR’s permanent capital equity base (additional paid-in-capital), though ARMOUR is not constrained by that range.

ARMOUR reports its earnings according to Generally Accepted Accounting Principles, (“GAAP”). Earnings disclosure is supplemented with a measure called “Distributable Earnings,” which typically represents the majority of taxable REIT income. ARMOUR pays dividends out of taxable REIT income. Distributable Earnings represents a non-GAAP measure and is defined as net interest income (loss) plus TBA Drop Income minus hedging costs and net operating expenses. Distributable Earnings differs from GAAP total comprehensive income which includes gains or losses from securities sales and early termination of derivatives, market value adjustments (including impairments) and certain non-recurring expenses.

As a REIT, ARMOUR is required to pay out at least 90% of its taxable earnings in dividends. Any retained earnings are subject to corporate level taxation. Taxable income is generally the net interest income less current period realized expense deductions plus capital gains or losses. Taxable income excludes the unrealized change in the value of the interest rate hedging program. Capital gains or losses in taxable income would typically arise from the sale of securities or termination of an interest rate hedge.

Auditor: Deloitte and Touche LLP
Legal counsel: Holland & Knight LLP
Securities Custodian: BNY Mellon
Prime Broker: AVM L.P.

ARMOUR pays dividends on each class of its stock on a monthly basis. The dividend amounts are generally calculated to equal ARMOUR’s estimated taxable REIT income for the quarter. However, actual taxable REIT income results can differ from dividend declarations. As a REIT, ARMOUR is required to distribute 90% of its taxable income on a yearly basis.