Armour (ARR) Q2 2025 Earnings Call Transcript

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Thursday, July 24, 2025 astatine 8 a.m. ET

• Chief Executive Officer — Scott Jeffrey Ulm

• Co-Chief Investment Officer — Desmond E. Macauley

• Managing Director — Sergey Losyev

• Chief Financial Officer — Gordon Harper

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ARMOUR's Q2 GAAP nett nonaccomplishment related to communal stockholders was $78.6 cardinal oregon $0.94 per communal share. Net involvement income was $33.1 million. Distributable net disposable to communal stockholders was $64.9 cardinal oregon $0.77 per communal share. This non-GAAP measurement is defined arsenic nett involvement income positive TBA driblet income adjusted for involvement income oregon disbursal connected our involvement complaint swaps and futures contracts minus nett operating expenses. ARMOUR Capital Management waived a information of their absorption fees, waiving $1.65 cardinal for the Q2, which offsets operating expenses. During Q2, ARMOUR raised astir $104.6 cardinal of superior by issuing astir 6.3 cardinal shares of communal banal done an at-the-market offering program.

Since June 30, we person raised astir $58.8 cardinal of superior by issuing astir 3.5 cardinal shares of communal banal done an at-the-market offering program. We presently person outstanding 91.5 cardinal communal shares. ARMOUR paid monthly communal banal dividends per stock of $0.24 per communal stock per period for a full of $0.72 for the quarter. We purpose to wage an charismatic dividend that is due successful discourse and unchangeable implicit the mean term. On July 30, 2025, a currency dividend of $0.24 per outstanding communal stock volition beryllium paid to holders of grounds connected July 15, 2025.

We person besides declared a currency dividend of $0.24 per outstanding communal stock payable August 29 to the holders of grounds connected August 15, 2025. Quarter ending publication worth was $16.90 per communal share. Our estimation of publication worth arsenic of Monday, July 21, was $16.81 per communal share, reflective of the accrual of the July communal dividend. I volition present crook the telephone implicit to Chief Executive Officer, Scott Ulm, to sermon ARMOUR's portfolio presumption and existent strategy.

Scott Jeffrey Ulm: Thanks, Gordon. Just a enactment to the team. I had a connectivity occupation a 2nd ago. So if I disappear, conscionable proceed with what we person to accidental here, but we should beryllium conscionable fine. Well, acknowledgment all. As we entered the 2nd fractional of 2025, the statement astir U.S. fiscal sustainability, Fed independency and commercialized dynamics continues to measurement connected the macro landscape. While we don't expect these issues to beryllium resolved quickly, markets look to person digested overmuch of the archetypal daze arsenic rates and spreads person settled into unchangeable ranges and volatility has drifted lower. On the monetary argumentation front, incoming U.S. economical information indicates coagulated economical maturation that's supportive of the Fed's wait-and-see approach.