ARMOUR Residential REIT, Inc. Announces That Equity Proceeds Are Fully Invested
27 Januar 2010 - 7:55PM
PR Newswire (US)
VERO BEACH, Fla., Jan. 27 /PRNewswire-FirstCall/ -- -- ARMOUR is
100% invested as of January 26, 2010. -- ARMOUR has an Agency
mortgage portfolio of $183.65 million -- Gross asset duration is
currently estimated at 2.09 -- Net balance sheet duration is
currently estimated at 1.34 -- REPO borrowings total $169.64
million -- Debt to equity ratio = 8.08x -- Eurodollar Bundles to
replicate swaps total $52.0 million -- Cash on hand is
approximately $5.2 million ARMOUR Residential REIT, Inc. (NYSE
Amex: ARR; ARR.WS) (the "Company") yesterday announced that it had
completed investing the equity proceeds from its merger with
Enterprise Acquisition Corporation. Co-Chief Executive Officer,
Scott J. Ulm, commented, "The Agency mortgage market has presented
our investment team with opportunities to invest at attractive
yields for our shareholders. Substantially all of our investments
have settled now and our repurchase agreements central to funding
our portfolio are in place. We are pleased to be in a position to
earn dividends for our shareholders and we expect to announce our
first dividend during the first quarter of 2010." Separately,
ARMOUR announced they have moved into new office space at: ARMOUR
Residential REIT, Inc. 956 Beachland Boulevard Suite #11 Vero
Beach, FL 32963 Main Phone Number; 772-617-4340 ARMOUR Residential
REIT, Inc. ARMOUR is a Maryland corporation focused on investing in
residential mortgage-backed securities. ARMOUR is externally
managed and advised by ARMOUR RESIDENTIAL MANAGEMENT LLC ("ARRM").
ARMOUR intends to elect and qualify to be taxed as a real estate
investment trust ("REIT") for U.S. federal income tax purposes,
commencing with ARMOUR's taxable year ending December 31, 2009.
Safe Harbor This press release includes "forward-looking
statements" within the meaning of the safe harbor provisions of the
United States Private Securities Litigation Reform Act of 1995.
Actual results may differ from expectations, estimates and
projections and, consequently, you should not rely on these forward
looking statements as predictions of future events. Words such as
"expect," "estimate," "project," "budget," "forecast,"
"anticipate," "intend," "plan," "may," "will," "could," "should,"
"believes," "predicts," "potential," "continue," and similar
expressions are intended to identify such forward-looking
statements. These forward-looking statements involve significant
risks and uncertainties that could cause the actual results to
differ materially from the expected results. Additional information
concerning these and other risk factors is contained in the
Company's most recent filings with the Securities and Exchange
Commission ("SEC"). All subsequent written and oral forward-looking
statements concerning the Company is expressly qualified in their
entirety by the cautionary statements above. The Company cautions
readers not to place undue reliance upon any forward-looking
statements, which speak only as of the date made. The Company does
not undertake or accept any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statement
to reflect any change in their expectations or any change in
events, conditions or circumstances on which any such statement is
based. Additional Information and Where to Find It Investors,
security holders and other interested persons may find additional
information regarding the company at the SEC's Internet site at
http://www.sec.gov/, http://www.armourreit.com/ or by directing
requests to: ARMOUR Residential REIT, Inc., 956 Beachland Blvd.,
Suite #11, Vero Beach, Florida 32963, Attention: Investor
Relations. Investor Contact: Jeffrey Zimmer Co-Chief Executive
Officer, President and Vice Chairman ARMOUR Residential REIT, Inc.
(772) 617-4340 ARMOUR RESIDENTIAL REIT, Inc. Portfolio Update
January 26, 2010 PLEASE READ: Important Regulatory and Yield
Estimate Risk Disclosures 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 Section 21E
of the Securities Exchange Act of 1934. Any statements that are not
statements of historical fact (including statements containing the
words "believes," "plans," "anticipates," "expects," "estimates"
and similar expressions) should also be considered forward-looking
statements. Forward-looking statements include but are not limited
to statements regarding the projections for the ARMOUR business,
and plans for future growth and operational improvements. A number
of important factors could cause actual results or events to differ
materially from those indicated by such forward-looking statements
ARMOUR assumes no obligation to update the information looking
statements. 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, financial instruments, or
common or privately issued stock. The statements, information and
estimates contained herein are based on information that the
presenter believes to be reliable as of today's date, but cannot be
represented that such statements, information or estimates are
complete or accurate. Actual realized yields, durations and net
durations described herein will depend on a number of factors that
cannot be predicted with certainly. Estimated yields do not reflect
any of the costs of operation of ARMOUR. ARMOUR Portfolio and
Balance Sheet Highlights and Dividend and Earnings Update --
Portfolio and Balance Sheet Highlights -- ARMOUR is 100% invested
as of January 26, 2010. -- ARMOUR has an Agency mortgage portfolio
of $183.65 million (1). -- Gross asset duration is currently
estimated at 2.09. -- Net balance sheet duration is currently
estimated at 1.34. -- REPO borrowings total $169.64 million. --
Debt to equity ratio (2) = 8.08x. -- Eurodollar Bundles to
replicate swaps total $52.0 million. -- Cash on hand is
approximately $5.2 million. -- Dividend and Earnings Update --
ARMOUR expects to declare a dividend prior to the end of the first
quarter of 2010 payable within 30 days of that declaration. --
ARMOUR will file its Form 10K for 2009 with the SEC in March 2010.
(1) Based on Agency asset purchase price and including those assets
which have settled. (2) Estimated book value per share at the time
of the closing of the merger with Enterprise Acquisition
Corporation, on 11/6/2009. ARMOUR Portfolio Composition Investment
Agency Asset Class Amount Including Percentage of Premium Total
Portfolio True ARMs (0-18 Months to Reset) $21,502,395 11.7%
Hybrids (< 19 Months to Reset) $126,687,757 69.0% Seasoned 15
& 20 Year Pass-Throughs $18,542,613 10.1% Low Loan Balance 15
Year Pass-Throughs $16,919,018 9.2% Total $183,651,783 100.0%
February Forward Settlement Trades $15,242,364 Investment Amount
Including Percentage of Agency Type Premium Total Portfolio Freddie
Mac $86,379,902 47.0% Fannie Mae $88,620,619 48.3% Ginnie Mae
$8,651,262 4.7% Total $183,651,783 100.0% ARMOUR Asset Class
Composition Weighted Average Estimated Estimated Agency Asset Class
Coupon Yield Effective Duration True ARMs (0-18 Months to Reset)
4.76% 2.00% 0.25 Hybrids (19+ Months to Reset; Ave = 59) 4.69%
3.00% 2.20 Seasoned 15 & 20 Year Pass-Throughs 4.92% 3.50% 2.60
Low Loan Balance 15 Year Pass-Throughs 4.97% 3.20% 3.06 Totals
4.74% 2.95% 2.09 Yield and Duration estimates are derived from
functions available from Bloomberg Finance L.P. Yield and Duration
estimates are derived using the asset purchase price. Actual
realized yields, durations and net durations described herein will
depend on a number of factors that cannot be predicted with
certainly. Estimated yields do not reflect any of the costs of
operation of ARMOUR. ARMOUR Hybrid Composition and True ARM
Composition Investment Hybrid Index Amount Including Percentage of
Premium Hybrid Portfolio 1 Year CMT $26,986,363 21.3% 12 Month
Libor $93,019,933 73.4% 6 Month Libor $4,378,681 3.5% 10 Yr CMT
$2,302,779 1.8% Total $126,687,756 100.0% Weighted Average Months
to Reset 57 Investment True ARM Type Amount Including Percentage of
Premium True ARM Portfolio MTA $4,861,322 22.6% 6 Month CMT
$1,515,419 7.0% 1 Year CMT $3,438,959 16.0% 6 Month Libor
$1,143,760 5.3% 12 Month Libor $10,158,539 47.2% COFI $384,396 1.8%
Total $21,502,395 100.0% Weighted Average Months to Reset 8
Eurodollar Composition (used to replicate swaps) and REPO
Composition Weighted Average Weighted Eurodollar Bundles to Swap
Rate Estimated Average Replicate Swaps Amount Equivalent Duration
Maturity Total, Weighted Average $52,000,000 1.83% 2.67 35.8 Months
Longest Maturity 48 Months Weighted Principal Weighted Average
Average REPO Borrowed REPO Rate Haircut Maturity Total, Weighted
Average $169,643,760 0.250% 5.15% 61 Days Longest Maturity 104 Days
DATASOURCE: ARMOUR Residential REIT, Inc. CONTACT: Investors:
Jeffrey Zimmer, Co-Chief Executive Officer, President and Vice
Chairman, ARMOUR Residential REIT, Inc., +1-772-617-4340 Web Site:
http://www.armourreit.com/
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