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ARMOUR Residential REIT, Inc. (ARR)

  • Mar. 24, 2014, 9:43 AM
    • It's not just Annaly. Compass Point is ringing the register on a wide swath of the mortgage REIT industry today. American Capital Agency (AGNC -1.6%), Anworth Mortgage (ANH -1.3%), Armour Residential (ARR -1.2%), CYS Investments (CYS -1%), Hatteras (HTS -1.5%), and Western Asset Mortgage (WMC -1.4%) are all cut to Hold from Buy.
    • All have been big gainers this year, likely narrowing their discounts to book value and - in at least one case - maybe climbing above it.
    | Mar. 24, 2014, 9:43 AM | 13 Comments
  • Mar. 19, 2014, 3:13 PM
    • A check of sectors following the FOMC statement and updated projections suggesting a quickened pace of rate hikes in the future finds the banks and life insurers notably moving higher. Both groups have struggled earning a spread amid ZIRP and are positively levered to higher rates.
    • Lenders: Bank of America (BAC +1%), Citigroup (C +1%), JPMorgan (JPM), Regions (RF +1.7%), KeyCorp (KEY +0.9%), SunTrust (STI +0.7%).
    • Life insurers: MetLife (MET +1%), Prudential (PRU +0.7%), Lincoln National (LNC +1%).
    • Not necessarily positively levered to higher rates are the mortgage REITs (REM -1.6%): Annaly (NLY -1.8%), American Capital (AGNC -1.7%), (MTGE -1.9%), Armour (ARR -1.3%), Two Harbors (TWO -2%) CYS Investments (CYS -3.3%), Capstead (CMO -1.3%), MFA (MFA -1.8%).
    • Related ETFs: MORT, MORL
    | Mar. 19, 2014, 3:13 PM | 14 Comments
  • Mar. 13, 2014, 3:16 PM
    • Ports in a storm on a tough day for the major averages (S&P 500 -1.4%), the mREIT sector is mostly in the green, with sector giants Annaly (NLY +1.1%) and American Capital (AGNC +1.1%) leading the way.
    • The 10-year Treasury yield is off eight basis points to 2.65%.
    • Earlier: Dividend hikes at mREITs? Capstead (CMO +0.9%) and Ellington Residential (EARN +1.9%) boost payouts by 10%.
    • Others: Armour (ARR +0.9), CYS Investments (CYS +0.9%), Dynex (DX +0.8%).
    | Mar. 13, 2014, 3:16 PM | 9 Comments
  • Mar. 7, 2014, 12:46 PM
    • The mortgage REITs are maybe the poorest performing sector amid a big move higher in interest rates, and formerly bullish Deutsche Bank ringing the register on New York Mortgage Trust, CYS Investments, and American Capital Mortgage after nice runs for all have pulled them close to (or above in NYMT's case) book value.
    • There's also an earnings miss this morning from one of the last of the players to report Q4, Western Asset Mortgage.
    • Annaly (NLY -2.1%), American Capital Agency (AGNC -2.3%), Armour (ARR -1.4%), Two Harbors (TWO -1.8%), Invesco (IVR -2.7%), Capstead (CMO -1.2%), MFA Financial (MFA -2%), Apollo Residential (AMTG -1.7%)
    | Mar. 7, 2014, 12:46 PM | 21 Comments
  • Mar. 6, 2014, 7:19 AM
    • The stock repurchase authorization is raised to 3M shares from 2M previously. With the boost, the company currently has permission to buy back another 1.49M shares.
    • Thomas Guba - on the board since 2012 - is appointed lead independent director.
    • Javelin is externally managed by the same team which externally manages Armour Residential (ARR) and Armour made nearly identical moves today, though Javelin's buyback program - under pressure from an activist investor - has previously been more aggressive than Armour's.
    • Press release
    • JMI no trades premarket
    | Mar. 6, 2014, 7:19 AM | 1 Comment
  • Mar. 6, 2014, 7:12 AM
    • Armour Residential (ARR) increases the size of its buyback authorization to up to 50M shares. It was previously $100M, or about 23M shares at the current price.
    • Thomas Guba - who has served on the board since 2009 - is appointed lead independent director. Among other responsibilities, Guba will coordinated the activities of the other independent directors, including having the authority to call executive sessions of the independent directors.
    • Press release
    • Shares +1.4% premarket
    • Javelin Mortgage announced nearly identical moves today as well.
    | Mar. 6, 2014, 7:12 AM | Comment!
  • Feb. 27, 2014, 5:55 AM
    | Feb. 27, 2014, 5:55 AM | Comment!
  • Feb. 26, 2014, 10:36 PM
    • Armour Residential (ARR) Q4 core EPS of $0.15 beats by $0.02.
    • End of year book value per share of $4.75 falls 9.7% from $5.26 at the end of Q3. Today's closing price of $4.34 is an 8.6% discount to Dec. 31 book.
    • Average net interest margin of 1.6% is up 36 basis points from Q3 as CPR falls to 4.8% from 8.8%.
    • Leverage of 6.92:1 is about unchanged from Q3. $4B of agency paper sold during Q4 leaving portfolio size of $14.6B vs. $16.7B in Q3. Company continues to shorten duration in 2014, selling $5.5B of 25-year and 30-year fixed rate mortgages thus far this year, leaving $1.3B of 30-years left to be sold. $3.7B of 15-year mortgages have been purchased.
    • 13.375M shares repurchased during quarter at an average price of $3.89 each.
    • Press release
    | Feb. 26, 2014, 10:36 PM | Comment!
  • Feb. 26, 2014, 9:58 AM
    • A check of the mREIT sector (REM +0.8%) following better-than-expected Q4 results from Annaly finds about all the individual names in the green.
    • Like many earlier reporters, Annaly experienced a pleasing drop in prepayments during Q4, leading to a widening net interest margin.
    • American Capital Agency (AGNC +0.8%), Armour Residential (ARR +0.9%), CYS Investments (CYS +0.6%), Hatteras Financial (HTS +0.9%), Dynex (DX +1.1%)
    • ETFs: MORT, MORL
    • Annaly's earnings call begins shortly. The stock is up 3.5% in early action.
    | Feb. 26, 2014, 9:58 AM | 3 Comments
  • Feb. 4, 2014, 11:51 AM
    • Addressing an analyst cadre somewhat uncomfortable with American Capital's (AGNC +1.6%) new policy of purchasing the common stock of its agency mREIT competitors (Wells' Joel Houck: Do you know their hedging strategies? What happens when one blows up?), CIO Gary Kain says the discounts to asset value are so great as to mitigate much of the risk.
    • Kain does acknowledge some risks though, and reminds that the purchase program is but a small slice of AGNC's overall portfolio ($400M of others' stock bought so far vs. nearly $600M of AGNC buybacks just in Q4).
    • For now, there won't be any disclosure of which names American Capital is buying - a position also not sitting well with those on the call. Should the positions get large enough though, regulatory filings might be required.
    • Kain also reminds that AGNC isn't just boosting risk with these purchases - instead it's selling MBS at 100 cents on the dollar to buy them back (via other mREITs) at somewhere in the area of 80 cents on the dollar.
    • Most of the mREIT sector (REM +0.7%) is ahead again today - Armour (ARR +0.9%), CYS (CYS +2.8%), Hatteras (HTS +1.6%), American Capital Mortgage (MTGE +0.6%), PennyMac (PMT +1.2%) - but Annaly (NLY -0.6%) lags, perhaps as investors feel it was far more conservatively positioned going into 2014 than AGNC was.
    • Earnings call is still ongoing
    • Previous coverage
    | Feb. 4, 2014, 11:51 AM | 28 Comments
  • Jan. 30, 2014, 10:20 AM
    • You're seeing a lot of demand in the assets we hold, says Capstead Mortgage (CMO +1.5%) management on the conference call after reporting a blowout Q4. In a steepening yield curve environment - the short-end anchored while long rates move higher - Capstead is benefitting from tightening spreads in the 5/1 ARMs it mostly holds.
    • Mr. Market seems to have fleshed this out, and Capstead was already trading for right around book value (reported at $12.47 as of Dec. 31) vs. the double-digit discounts for long-end players like Annaly (NLY +0.2%), American Capital (AGNC -0.3%), Armour (ARR), and CYS Investments (CYS -0.5%).
    • Another in the adjustable-rate arena is Hatteras Financial (HTS +1.5%).
    • Related ETFs: REM, MORT, MORL
    | Jan. 30, 2014, 10:20 AM | 3 Comments
  • Jan. 29, 2014, 3:15 PM
    • For the most part, the mREIT sector (REM -0.2%) is getting little boost from another big swoosh down in interest rates - the 10-year Treasury yield off 7 basis points to 2.69%. Confused about how to play the dislocations caused by massive QE purchases of MBS, mREIT managements are likely similarly confused about how to play the taper (another $10B reduction today).
    • Peeking into the green in afternoon action are Annaly (NLY +0.9%), Chimera (CIM +0.8%), and American Capital Agency (AGNC +0.2%), but Armour (ARR -0.7%), Invesco (IVR -1.2%), American Capital Mortgage (MTGE -1.2%), Hatteras (HTS -1.7%), and Western Asset (WMC -2.6%) are nicely lower.
    • Capstead Mortgage is set to be the first of the mREIT to report Q4 results after the bell today.
    • ETFs: MORT, MORL
    | Jan. 29, 2014, 3:15 PM | 11 Comments
  • Jan. 10, 2014, 11:18 AM
    • It's a big dip in interest rates today (the 10-year yield off 8 bps to 2.88%), but buyers are doing little more than tiptoeing back into beaten-down mortgage REITs.
    • Leading are Annaly (NLY +1.3%) and American Capital (AGNC +1.4%), (MTGE +1.1%), and Armour (ARR +0.7%), CYS Investments (CYS +1.2%), and Invesco (IVR +1.1%) are also posting decent gains. All are quietly up in the area of 5-10% off of their 52-week lows set late last year.
    • Related ETFs: REM, MORT, MORL
    | Jan. 10, 2014, 11:18 AM | 9 Comments
  • Dec. 18, 2013, 8:21 AM
    • Armour Residential (ARR) sets a $0.05 monthly dividend for calendar year 2014. It's an annualized yield of 16.2% based on last night's close of $3.70. September 30 book value was $5.26, putting the stock at about a 30% discount to book. The next payment date is January 30 to holders of record on January 15.
    • Press release
    | Dec. 18, 2013, 8:21 AM | 19 Comments
  • Dec. 16, 2013, 3:35 PM
    • The mortgage REIT sector (REM -0.6%) is lower on a bright green day for the rest of the market, with Anworth Mortgage's (ANH -1.2%) 33% dividend cut Friday night offering another excuse to Sell. Anworth is an agency mortgage player, investing mostly in adjustable mortgages. Anworth's new forward yield of 7.5% is so far out of line with the double digits of the rest of the industry, it suggests even more declines are in store for the stock, or big dividend cuts lie ahead for competitors. At $4.19, Anworth is selling for a near-30% discount to September 30 book value.
    • Down the most today is American Capital Mortgage (AGNC -2.7%), and its non-agency cousin, American Capital Agency (MTGE -1.7%) is off sharply as well.
    • Others: Annaly (NLY -1.3%), Armour (ARR -1.2%), Western Asset (WMC -1.8%), Apollo (AMTG -1.4%), Ellington (EFC -0.4%), (EARN +0.2%)
    • Related ETFs: MORT, MORL
    | Dec. 16, 2013, 3:35 PM | 27 Comments
  • Dec. 6, 2013, 11:42 AM
    • There's a bit of green spreading across the mREIT sector this morning as Treasurys reverse an early plunge following the strong jobs report - the 10-year yield is now off 3 basis points to 2.85% after climbing to 2.93% just after the 8:30 ET release.
    • However, there's no relief for sector leaders Annaly (NLY -1%) and American Capital Agency (AGNC -1.5%), both of  which continue to reel following Goldman's Sell recommendation yesterday - each have carved out new 52-week lows this morning. There may be plenty of players in the mREIT sector, but for the institutional big boys who have the Goldman report on their desks, there's just NLY and AGNC. Others in the red include: Armour (ARR -0.7%) and CYS Investments (CYS -1.1%).
    • Posting gains: Chimera (CIM +0.8%), Invesco (IVR +0.2%), Hatteras (HTS +0.2%), Dynex (DX +0.7%), New York Mortgage (NYMT +0.3%), Apollo Residential (AMTG +0.7%), Javelin (JMI +1.1%), AG Mortgage Investment (MITT +2.3%).
    • Related ETFs: REM, MORT, MORL.
    | Dec. 6, 2013, 11:42 AM | 12 Comments
ARR vs. ETF Alternatives
Company Description
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.
Sector: Financial
Country: United States