ARMOUR Residential REIT Boosts Book Value 6.5%, Posts $208.7m Q4 Profit
ARMOUR Residential REIT posted GAAP net income of $208.7m ($1.86/share) and distributable earnings of $79.8m ($0.71/share) in Q4, delivering a 10.63% economic return. Quarter-end book value rose 6.5% to $18.63 per share while the REIT raised $146.6m through ATM stock issuances.
1. Strong Q4 Income and Returns
ARMOUR Residential REIT reported GAAP net income available to common stockholders of $208.7 million ($1.86 per share) in Q4 2025, with net interest income of $50.4 million. The company recorded distributable earnings of $79.8 million ($0.71 per share) and achieved a total economic return of 10.63% for the quarter.
2. Book Value Growth and Dividend Stability
Quarter-end book value rose 6.5% to $18.63 per common share as of December 31, 2025, with a subsequent estimate of $18.37 per share as of February 17. ARMOUR maintained monthly common dividends of $0.24 per share for January, February, and March, totaling $0.72 for the quarter.
3. Capital Raises via ATM Programs
During the fourth quarter, the REIT issued approximately 183,000 preferred shares for $3.8 million under its preferred ATM program. Through February 11, the company raised $138 million by issuing 7.5 million common shares and an additional $4.8 million via 230,000 preferred shares, a strategy described as mildly dilutive.
4. Portfolio Positioning and Funding Conditions
The firm’s mortgage-backed securities portfolio grew over 10% from Q3 2025, with assets exceeding $20 billion and net balance sheet duration of 0.14 years. Leverage (excluding Treasuries) stood at 7.9 times, funding costs averaged SOFR plus 15 basis points, and repo haircuts averaged 2.75%, reflecting improved liquidity and favorable MBS spread dynamics.