ARMOUR Residential REIT Inc is a type of real estate investment trust that focuses on investing in a specific type of security called residential mortgage-backed securities (RMBS). These securities are either issued or guaranteed by entities associated with the US government, like Fannie Mae, Freddie Mac, or Ginnie Mae. The company’s investment portfolio primarily consists of mortgage-backed securities, adjustable-rate mortgage securities, and multifamily mortgage-backed securities.
Armour’s main investments consist mostly of long-term, fixed-rate agency RMBS and a significant amount of multifamily RMBS in terms of fair value. These holdings are primarily backed by Fannie Mae. Armour earns the majority of its revenue from the interest income generated by these investments.
They have elected to be taxed as a real estate investment trust and, accordingly, generally will not pay U.S. federal income tax on our taxable income that is distributed to stockholders. The company is headquartered in Boca Raton, Florida. Its common stock is listed on the New York Stock Exchange under the symbol “ARR”. As of December 31, 2020, the company had an equity market capitalization of approximately $2.5 billion and total assets of approximately $10.2 billion.
The majority of ARMOUR’s investments are long-term, fixed-rate agency RMBS with Fannie Mae as a primary guarantor representing a significant portion of its holdings. Multifamily RMBS also represents a substantial amount. ARMOUR is dedicated to providing attractive risk-adjusted returns and dividend stability to shareholders through active portfolio management, with an emphasis on consistent cash flow and preserving principal. The company derives substantially all of its revenue from interest income earned on its investments.
ARMOUR’s objective is to produce attractive returns for stockholders through investment in residential mortgage-backed securities while preserving its capital and protecting against risk. The company seeks to achieve these goals by taking advantage of opportunities presented by the marketplace and actively managing its portfolio. ARMOUR continuously monitors market conditions and adjusts its asset allocations accordingly in order to maximize return while minimizing risk.