ARR

ARMOUR Residential REIT

Agency Mortgage REIT

RISK / 100

MODERATE

HIGH RISKMODERATELOW RISK

Last close

$16.34

Day chg

+0.1%

Market cap

$1.3B

P/E

~6x

Rev growth

n/m

Div yield

17.6%

12-month price

Indicative · 52-wk rangeEx-div: ~Sep 15, 2026 (est) · $0.24 monthly

$21.50$13.90

Risk factor breakdown

Valuation

Multiples & price

Below book

Trades ~0.93x bookBook value $17.53Rate-path dependent

Rating

Buy · B/S 59/100

~17.6% monthly yieldSmall discount to bookHigh leverage

vs Sector median	This	Median
P/Book	0.93x	1.0x
Div yield	17.6%	13%
Leverage	~8x	~7x

Financial Health

Balance sheet

Levered agency book

Agency MBS focusedLiquidity in place~8x leverage — high

Profitability

Beat on earnings

Distributable EPS $0.72 > $0.69Book value +0.6% to $17.53Dividend near coverage

Growth

Top-line

Spread-driven

Wide MBS spreads help ROEPortfolio actively hedgedNIM curve-sensitive

Outlook

Rate-cut beneficiary

Easing lowers funding costBook recovery potentialPrepayment risk

Score breakdown

Valuation risk · 35%48

Financial Health risk · 35%50

Growth risk · 30%49

Weighted risk = Valuation 35% · Financial Health 35% · Growth 30% → 49/100

PAGE 2

Quarterly trend

Quarter	Distributable EPS ($)	Book value ($)	QoQ
Q3 25	0.70	17.1	▼
Q4 25	0.71	17.3	▲
Q1 26	0.71	17.4	▲
Q2 26	0.72	17.53	▲

Green rows = improving QoQ · red rows = declining. Figures indicative, drawn from reported results & guidance.

Latest earnings / delivery

Q2 beat

Distributable EPS of $0.72 topped the $0.69 dividend run-rate and book value rose 0.6% to $17.53. The ~17% monthly dividend looks covered near-term.

Dividend

Monthly $0.24 (~17.6% annualised); ARR went ex-dividend on Aug 17 and the next ex-date is estimated mid-September. Leverage stays around 8x.

Catalysts vs Risks

▲ Catalysts

Fed rate cuts lowering funding costsHIGH IMPACT
Discount-to-book closureMEDIUM
Covered high monthly dividendMEDIUM

▼ Risks

~8x leverage amplifies lossesHIGH IMPACT
Rate / spread volatilityHIGH IMPACT
Dividend cut risk if book fallsMEDIUM

Bottom line

Buy · Buy/Sell 59/100 · PT +5%

SELL / AVOIDHOLDATTRACTIVE BUY

An agency mortgage REIT trading at a small discount to its $17.53 book value with a ~17.6% monthly dividend that the Q2 beat shows is currently covered. At $16.34 the combination of income plus modest discount-to-book supports a Buy. The offset is high (~8x) leverage that magnifies any rate or spread shock.

Generated August 24, 2026. Prices reflect the last completed session (August 21, 2026), sourced via AlphaVantage & web research; some quotes carry data-provider lag — verify live prices before acting. 12-month charts are indicative. Risk score = Valuation 35% · Financial Health 35% · Growth 30% (0 = low risk, 100 = high risk). Buy/Sell weighs current price level against fundamentals (0 = avoid, 100 = attractive). For informational purposes only — not investment advice.