Key Highlights

  • Three monthly payments of USD 0.24 per common share came to USD 0.72 for the third quarter, which compares with distributable Earnings of USD 0.71 per share, a calculated coverage ratio of 0.99 times.
  • Book value per common share slid by a calculated 21.9% to USD 14.55 on September 30, 2026, starting from USD 18.63 on December 31, 2025, with the third quarter carrying a net loss of USD 323.7 million.
  • Debt-to-equity was 8.24 to 1 on September 30, 2026, and came down to 7.99 to 1 in the October 19 update, while quarter-end Liquidity reached USD 1.0 billion.
  • Agency mortgage-backed securities accounted for 94.0% of the USD 21.3 billion portfolio, and repurchase agreements of USD 19.4 billion funded it, with 49.8% of those borrowings placed with affiliate BUCKLER Securities LLC.

Payout Track Record and Yield for ARMOUR Residential REIT, Inc. (NYSE:ARR)

ARMOUR Residential REIT, Inc. (NYSE:ARR) set its common Dividend at USD 0.24 per share each month, or USD 0.72 for the third quarter. The October payment was made on October 29, 2026 to shareholders recorded on October 15, 2026. The November installment, USD 0.24 per share, will be paid on November 27, 2026 to those recorded on November 16, 2026. On a calculated basis the yearly total is USD 2.88 per share, equal to 19.8% of Book Value per common share at September 30, 2026. Series C preferred stock pays USD 0.14583 per share monthly, with payments declared for November 27 and December 28, 2026.

Coverage Math: Distributable Earnings Against the Dividend at ARMOUR Residential REIT, Inc. (NYSE:ARR)

Mortgage REITs are usually judged on distributable earnings when it comes to coverage. Third-quarter figures totaled USD 105.6 million, with the common stockholder share at USD 102.3 million, or USD 0.71 per share, down from USD 0.72 in the second quarter. Net interest income climbed to USD 83.7 million from USD 76.8 million. The economic net interest spread was 1.83% against 1.82%, and the economic net yield 2.15% against 2.08%. Under GAAP the company recorded a net loss of USD 323.7 million, which works out to USD 2.26 per common share, along with a total economic return of negative 12.9%.

Book Value Erosion, Leverage and Repo Exposure at ARMOUR Residential REIT, Inc. (NYSE:ARR)

ARMOUR Residential REIT, Inc. (NYSE:ARR) reported common stockholders' Equity of USD 2,350.7 million across 148,415,420 shares outstanding. The mix inside the USD 21.3 billion book was 94.0% Agency paper, with 2.2% in U.S. Treasuries and 3.8% in to-be-announced trades, and USD 17.0 billion of Interest Rate swaps served as hedges. Average third-quarter leverage on a debt-to-equity basis was 7.58 to 1. Excluding USD 253.2 million of principal and interest receivable, liquidity stood above USD 897.0 million as of the October 19 update. Wider Mortgage spreads as rates rose are the core threat to a leveraged Agency book, alongside concentration among repurchase lenders.

Where Things Stand

On the reported numbers, ARMOUR Residential REIT, Inc. (NYSE:ARR) covers its USD 0.24 monthly payout only just, with distributable earnings of USD 0.71 per share against USD 0.72 declared in the quarter. Book value is the more pressing variable, having dropped to USD 14.55 per common share as mortgage spreads widened. Management said it stays constructive on mortgage-backed securities and leans on stress-tested liquidity, systematic hedging and selective Capital deployment. The economic net interest spread of 1.83% is the figure to watch as hedge costs and funding change. No numeric earnings guidance has been issued.