- ARMOUR Residential REIT reported a Q3 2026 GAAP net loss attributable to common stockholders of $327M, or $2.26 per common share, as mortgage spreads widened and rates rose late in the quarter.
- Quarter-end book value was $14.55 per share, down 17% from June 30. Management estimated book value at $14.65 as of Oct. 19, including the accrual of the October dividend.
- Net interest income was $83.7M and distributable earnings were $102.3M, or $0.71 per share. Total economic return was negative 12.9% for the quarter.
- Treasury yields rose roughly 70 to 80 basis points during the quarter, and the portfolio option-adjusted spread widened by 20 basis points, with about 80% of that move in September.
- ARMOUR sold roughly $900M of MBS beginning in late September, mainly DUS pools and deep-discount seasoned MBS, and plans to reinvest into moderately discounted MBS with estimated levered returns of 15% to 18%.
- The company paid $0.72 in common dividends for the quarter and declared a $0.24 dividend payable Nov. 27. Simply Wall St reported the November dividend was affirmed at $0.24.
- Year-to-date net loss was reported at $263.78M by Simply Wall St, which put the Q3 net loss at $323.75M, below the $327M figure in the transcript summary.
- At quarter-end, implied leverage excluding Treasuries was 8.2 times, net duration was 0.38 years, and available liquidity was $1.02B.
Quotes
“Today, mortgage spreads sit near their widest of the year, offering more compelling valuations that support our constructive medium-term outlook”
“unusually high”