ARMOUR Residential REIT Delivers Solid Results Amid Market Turbulence
Despite the challenges posed by heightened geopolitical tensions and market volatility in the first quarter of 2026, ARMOUR Residential REIT demonstrated resilience, delivering a solid performance for the period. The company's total economic return stood at -2.6%, with its Q1 GAAP net loss related to common stockholders amounting to $58 million, or $0.49 per common share.
According to Scott J. Ulm, Chief Executive Officer of ARMOUR Residential REIT, the market turbulence and MBS volatility experienced in the latter part of the first quarter presented a buying opportunity for the company. As interest rates stabilized, mortgage-backed securities (MBS) spreads retraced tighter, driving a recovery in ARMOUR's book value by 3%.
The company reported net interest income of $70.7 million and distributed earnings available to common stockholders of $90.5 million, or $0.76 per common share. This non-GAAP measure is defined as net interest income plus TBA drop income, adjusted for interest income or expense on the company's interest rate swaps and futures contracts, minus operating expenses.
ARMOUR Residential REIT also announced that it had raised approximately $215 million of capital by issuing approximately 11.8 million shares of common stock and $6.4 million of capital by issuing approximately 306,000 shares of preferred stock through its at-the-market offering programs. In addition, the company repurchased 125,000 shares of common stock through its stock repurchase program in March 2026.
ARMOUR paid monthly common stock dividends per share of $0.24 per common share per month, for a total of $0.72 for the quarter. The company aims to pay an attractive dividend that is appropriate in context and stable over the medium term.
In terms of its portfolio position and current strategy, Ulm noted that heightened uncertainty returned to the market in 2026, driven by renewed geopolitical tensions and a sharp rise in oil prices that put further Fed easing on hold for now. As concerns around the Middle Eastern conflict intensified, the yield curve bear-flattened on a shallower path of Fed cuts.
Implied volatility more than doubled, and nominal mortgage spreads widened from 95 basis points to as much as 130 basis points from trough to peak over the course of the first quarter. However, ARMOUR Residential REIT took advantage of this market turbulence, with Ulm stating that the risk/reward at valuations last observed in Q3 of last year turned decisively favorable.
The company's estimated book value stood at $18.05 per common share as of Monday, April 20th, reflecting the accrual of the April common dividend. Quarter-end book value was $17.42 per common share, down 6.5% from December 31, 2025.
