Fri, Aug. 21, 3:30 PM
- These income favorites often catch a wave of buying when the major averages sell off and yields fall, but the panicky action today is taking down nearly all equities.
- The iShares DJ U.S. Real Estate ETF (IYR -1.7%) and the iShares FTSE NAREIT Mortgage REIT ETF (REM -1.6%), however, are outperforming the S&P 500's 2.7% decline.
- Previously: Just a modest rally for Treasurys as stocks crumble (Aug. 21)
- Leading the mREITs lower is Javelin Mortgage (JMI -5.9%), with SA contributor ColoradoWealthManagementFund noting the company has stopped buying back stock despite its wide discount to book value. The sector as a whole looks like it will continue to have to deal with widening spreads and rising prepayments, and still have a looming rate hike cycle on the horizon.
- Armour Residential (ARR -2%), CYS Investments (CYS -1.8%), Annaly (NLY -1.2%), American Capital Agency (AGNC -1.8%), Arlington Asset (AI -2.4%), Orchid Island (ORC -2.5%), Dynex (DX -2%), Capstead Mortgage (CMO -1.3%).
- Equity REITs: Realty Income (O -0.7%), Vereit (VER -2.3%), Health Care REIT (HCN -1%), HCP (HCP -1.1%), Gramercy Property (GPT -3.1%), Equity Residential (EQY -1.6%), Simon Property (SPG -0.5%), Kimco (KIM -2.1%), Hospitality Properties (HPT -2.8%), Stag Industrial (STAG -1.4%), American Campus (ACC -1.1%), Public Storage (PSA -1%).
Wed, Jul. 29, 5:12 PM
- Q2 core income of $47.7M or $0.12 per share vs. $33.5M and $0.08 in Q1. Dividends of $0.12 during quarter.
- Book value per share of $3.96 slips from $4.14 a quarter earlier. Today's close of $2.70 is a 32% discount to book, likely the highest in the mREIT sector.
- Average net interest margin of 1.36% up 16 basis points from Q1. CPR of 8.11% up from 6.7%.
- Commencing with the 1:8 reverse stock split on August 3, a buyback authorization for 9M shares will begin, a 71% increase from today's remaining authorization. The split-adjusted float is currently about 39M shares. About 275K shares (split-adjusted) were bought back in Q2 at an average cost of $3.04 each.
- Conference call tomorrow at 9:30 ET
- Previously: ARMOUR Residential REIT beats by $0.01 (July 29)
- ARR flat after hours
Wed, Jul. 29, 5:04 PM
Fri, Jul. 24, 3:01 PM
- Just a 1% decline in the major averages (which are being helped by some high-profile earnings moves) is masking far greater carnage in a number of other sectors, notably healthcare (XLV -2.5%) and energy (XLE -2%).
- Business development companies and mortgage REITs are being socked again as well, suggesting the worry may go beyond interest rates and to credit in general, especially as commodity prices continue to tumble - to pick one, crude oil at $48.06 per barrel is at its lowest price in about four months.
- Among BDCs: Hercules Technology Growth (HTGC -4.2%), Triangle Capital (TCAP -3.3%), PennantPark Investment (PNNT -5.4%), Prospect Capital (PSEC -1.4%), Main Street Capital (MAIN -2.8%), TICC Capital (TICC -2.4%), KCAP Financial (KCAP -2.6%), THL Credit (TCRD -2.7%), FS Investment (FSIC -1.8%).
- Among mREITs: Armour Residential (ARR -3.1%), Two Harbors (TWO -0.9%), CYS Investments (CYS -2%), Invesco Mortgage (IVR -1.5%), Capstead Mortgage (CMO -1.2%), Apollo Residential (AMTG -2.6%), Arlington Asset (AI -3.7%), American Capital Mortgage (MTGE -0.9%), Orchid Island (ORC -5.8%).
- MReit ETFs: MORL, REM, MORT, LMBS
- BDC ETFs: BDCL, BDCS, BIZD, FGB
Thu, Jul. 23, 1:17 PM
- CYS Investments last night reported a big drop in book value as the effect of sharply higher rates more than offset the company's hedges. Core income failed to cover the dividend as prepayments also rose.
- The stock today is down 2.6% and trading at more than a 20% discount to book value.
- Earlier this week, Hatteras also reported a decline in income and fall in book value.
- Sector giants Annaly Capital (NLY -0.5%) and American Capital Agency (AGNC -0.7%) are performing the best today. Armour Residential (ARR -1.8%), Chimera Investment (CIM -0.8%), Invesco Mortgage (IVR -1.1%), New York Mortgage (NYMT -1.2%), Western Asset Mortgage (WMC -1%), Anworth Mortgage (ANH -1.2%), Arlington Asset (AI -2.3%), Ellington Residential (EARN -2.1%), Dynex Capital (DX -0.8%)
- ETFs: MORL, REM, MORT, LMBS
Fri, Jun. 26, 3:31 PM
- Equity REITs are mostly being spared any punishment today, but mortgage REITs are hitting multi-year lows across the board as the 10-year U.S. Treasury yield climbs seven basis points to 2.48%.
- Annaly Capital (NLY -4.7%) hasn't seen a price this low since Alan Greenspan was nearing the end of his rate hike cycle in 2000. American Capital Agency (AGNC -3.7%) is at its lowest price since the bottom of the financial crisis.
- Armour Residential (ARR -2.9%), Two Harbors (TWO -4.5%), Chimera Investment (CIM -4.8%), CYS Investments (CYS -3.7%), American Capital Mortgage (MTGE -5.4%), Capstead Mortgage (CMO -4.5%), Anworth Mortgage (ANH -4.3%), AG Mortgage (MITT -3.3%), Ellington Residential (EARN -5.3%), Orchid Island (ORC -3.9%).
- ETFs: MORL, REM, MORT, LMBS
Thu, Jun. 25, 4:17 PM
- The XLU underperformed again today, losing 0.7% and bringing its year-to-date decline to more than 12%.
- Looking at equity REITs, the IYR dipped another 0.95% and VNQ fell 1%. Both are down about 6% in 2015, and roughly 15% since late January. Some individual names: Spirit Realty (SRC -2.8%), Senior Housing (SNH -1.2%), HCP (HCP -1.4%), American Realty Capital (ARCP -3%), Gramercy Property (GPT -2.8%), Duke Realty (DRE -2%).
- In mortgage REITs, REM lost 0.9% today and is off 7% YTD. Some individual names: American Capital Agency (AGNC -1.2%), Armour (ARR -1%), CYS Investments (CYS -0.9%), Annaly Capital (NLY -0.8%), Invesco Mortgage (IVR -1.2%), Apollo Residential (AMTG -1.1%), PennyMac Mortgage (PMT -2.3%), Western Asset Mortgage (WMC -2.7%).
- The 10-year Treasury yield gained three basis points to 2.40%.
- Previously: Sell-side abandoning REITs as rates rise (June 25)
- ETFs: IYR, VNQ, DRN, URE, RQI, SCHH, ICF, SRS, RWR, RNP, JRS, KBWY, RFI, NRO, DRV, RIT, REK, RIF, FRI, FTY, PSR, DRA, FREL, WREI, IARAX
Tue, Jun. 23, 11:20 AM
- Armour Residential (ARR +0.7%) is just about the only mortgage REIT in the green today following an upgrade to Buy at MLV & Co.
- The stock's off 30% Y/Y amid sliding book value and dividend cuts. The longer-term track record isn't any better.
- Today's upgrade comes in the wake of last week's announcement of a 1:8 reverse stock split and the expectation of a modest increase in the dividend.
Thu, Jun. 18, 7:36 AM
- Armour Residential (NYSE:ARR) announces a 1:8 reverse stock split to take effect on August 3, the company believing the higher stock price should attract a broader range of investors (better operating results wouldn't hurt either). Management notes a persistently large gap between book value and the share price - roughly 28% as of the close yesterday.
- Q3 dividends are expected to be $0.04 in July (flat from Q2), $0.33 in August, and $0.33 in September. The last two months' payout - split-adjusted -would represent a 3.125% boost to the dividend.
- Source: Press Release
Fri, Jun. 5, 3:57 PM
- The 10-year yield is up nine basis points to 2.40% and a September rate hike looks to be in play after the BLS reported a job gain of 280K in May and Y/Y wage growth of 2.3%.
- Annaly Capital (NLY -1.2%), American Capital Agency (AGNC -2.3%), Armour Residential (ARR -2.7%), Two Harbors (TWO -2.4%), CYS Investments (CYS -1.4%), Hatteras (HTS -1.5%), New York Mortgage (NYMT -1.2%), Capstead Mortgage (CMO -1.4%), MFA Financial (MFA -1.6%), Anworth (ANH -1.8%), Dynex (DX -1.2%).
- ETFs: MORL, REM, MORT, LMBS
- Previously: Financials on the move as rate hike draws nearer (June 5)
- Previously: Jobs up 280K in May; UE rate ticks higher (June 5)
Thu, Apr. 30, 3:15 PM
- A big rise in interest rates early in the session made for a good excuse to sell REITs, but - with the averages sharply lower - rates have reversed course. Still, the sector can't catch a bid, with many of the bigger names down way more than the broader market.
- Equity REITs: Realty Income (O -2.3%), Health Care REIT (HCN -3.2%), Ventas (VTR -3.2%), HCP (HCP -3.1%), Equity Residential (EQR -2.6%), Silver Bay Realty (SBY -2.5%), General Growth Properties (GGP -2.4%), Retail Opportunity (ROIC -3.9%), Boston Properties (BXP -2.4%), Hospitality Properties (HPT -2.9%)
- Mortgage REITs: Armour Residential (ARR -5.6%) - which reported another weak quarter overnight, Two Harbors (TWO -1.1%), Western Asset (WMC -1.3%), Arlington Asset (AI -2.8%), PennyMac (PMT -1.5%). When things get tough, money does have a tendency to flow into the sector giants though: Annaly Capital (NLY -0.4%) and American Capital Agency (AGNC +0.3%) are notable outperformers on the session.
- ETFs: IYR, VNQ, DRN, URE, REZ, SCHH, ICF, SRS, RWR, KBWY, DRV, REK, FRI, FTY, PSR, FREL, WREI
Wed, Apr. 29, 4:31 PM
- Q1 core income and estimated REIT income of $33.5M or $0.08 per share vs. $41.1M and $0.10 in Q4. Quarterly dividend run rate of $0.12 per share.
- Book value per share of $4.14 slides from $4.39 at the start of the year. Today's close of $3.15 is probably a well-deserved 24% discount to book.
- NIM of 1.20% off seven basis points from last quarter.
- CPR of 6.7% up from 6.45%.
- Leverage ratio of 8.39:1 up from 7.94:1.
- Conference call tomorrow at 8:30 ET
- Previously: ARMOUR Residential REIT misses by $0.01 (April 29)
- ARR flat premarket
Wed, Apr. 29, 4:21 PM
Wed, Mar. 25, 4:42 PM
Fri, Mar. 6, 10:21 AM
- The 10-year Treasury yield has popped all the way to 2.24% (up 11 bps on the session) following the strong jobs report which saw 295K jobs added in February and the unemployment rate dropping to 5.5%.
- Checking short-term interest rate futures, they're falling (meaning higher rates), but still not pricing in a rate hike until late summer.
- Annaly Capital (NLY -1.3%), American Capital Agency (AGNC -0.6%), Two Harbors (TWO -1%), Armour (ARR -0.9%), Invesco (IVR -0.9%), CYS Investments (CYS -1.4%), Hatteras (HTS -1.1%), MFA Financial (MFA -1.1%), Western Asset (WMC -0.7%), Dynex (DX -1.2%), AG Mortgage (MITT -1.5%), Ellington Residential (EARN -1.1%).
- ETFs: REM, MORT, MORL
- Previously: Dollar and Treasury yields spike after strong jobs print (March 6)
Tue, Feb. 24, 4:48 PM
- Q4 core earnings of $41.1M or $0.10 per share vs. $49M and $0.13 in Q3. Q4 dividends were $0.15 and have since been cut to $0.12.
- Book value per share of $4.39 down from $4.58 at the end of Q3. Today's close of $3.15 is probably a deserved 28% discount to book.
- Net interest margin in Q4 of 1.27% down 16 basis points from Q3. CPR of 6.45% down 101 basis points.
- Leverage ratio of 7.94:1 vs. 8.42:1 in Q3.
- Conference call tomorrow at 8 ET
- Previously: ARMOUR Residential REIT misses by $0.02 (Feb. 24)
- ARR +1.9% after hours
ARR vs. ETF Alternatives
ARMOUR Residential REIT Inc invests in and manages a leveraged portfolio of residential mortgage backed securities. Itinvest in residential mortgage backed securities issued or guaranteed by a United States Government-sponsored entity.
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