ARMOUR RESIDENTIAL REIT, INC. ANNOUNCES COMPANY UPDATE AND DIVIDEND INFORMATION

VERO BEACH, Florida, April 02, 2020 (GLOBE NEWSWIRE) -- ARMOUR Residential REIT, Inc. (“ARMOUR” or the “Company”) (NYSE: ARR and ARR-PRC), today announced an update regarding the Company’s financial status reflecting developments related to the continued market volatility due to the novel Coronavirus outbreak, confirmed the April cash dividend of $0.14583 per share on its 7.00% Series C Cumulative Redeemable Preferred Stock (the “Series C Preferred Stock”) and announced a quarterly common stock dividend policy for the second quarter of 2020. The Company also announced that Mark Gruber will continue in his current role as Chief Investment Officer.

The novel Coronavirus outbreak has been unprecedented and continues to have a real-time impact on all business sectors. The strong intervention by the Federal Reserve helped stabilize the agency residential and commercial mortgage-backed securities (“MBS”) and recover a large amount of the spread widening that took place during the month of March. Trading activity in agency credit risk transfer (“CRT”) securities has resumed and prices are stabilizing. ARMOUR has acted aggressively to mitigate risk, moderate leverage and maximize liquidity and activated its remote work environment protocol to minimize health and operational risks. The Company remains focused on prioritizing liquidity through this period of increased market volatility and financial risks to the Company.

Company Update
At the close of business on March 31, 2020:

• Book value per common share is estimated to be above $11.00.
• ARMOUR’s liquidity, including cash and unpledged agency-guaranteed MBS, exceeds $350 million (45% of stockholders’ equity).
• ARMOUR’s 17 active counterparties, including our affiliate BUCKLER Securities LLC, continue to provide the Company with access to repurchase financing. Its six active swap counterparties continue to provide the Company with access to over-the-counter interest rate swaps.  The Company has timely met all margin calls received.
• ARMOUR’s approximately $4.8 billion securities portfolio includes approximately $4.1 billion of agency‑guaranteed MBS (including securities to-be-announced).
• ARMOUR reduced its short-term security repurchase facilities borrowings, in aggregate, to approximately $3.46 billion. As a result, the Company’s “leverage” was approximately 4.4 to 1 (based on repurchase agreements divided by stockholders’ equity).
• ARMOUR estimates its total stockholders’ equity exceeds $780 million, which includes $133 million of the Company’s Series C Preferred Stock.
• ARMOUR has outstanding 58,881,965 shares of its common stock and 5,303,520 shares of its Series C Preferred Stock.

The information above is subject to inherent uncertainties, especially in light of recent market volatility and reduced pricing transparency for some assets. Actual amounts may be materially different and are subject to change over time as the Company completes its regular quarterly financial reporting process culminating with the filing of its Form 10-Q  for the quarter ended March 31, 2020, which will be available at www.sec.gov in the ordinary course.