UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
______________
FORM 8-K
______________
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): January 4, 2010
ARMOUR Residential REIT, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Maryland | 001-33736 | 26-1908763 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
6800 Broken Sound Parkway, Suite 200 Boca Raton, Florida | 33487 |
(Address of Principal Executive Offices) | (Zip Code) |
(772) 388-4758
(Registrant’s Telephone Number, Including Area Code)
N/A
(Former Name of Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
[_]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[_]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17CFR 240.14a-12)
[_]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[_]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 7.01.
Regulation FD Disclosure.
Commencing on January 4, 2010, ARMOUR Residential REIT, Inc. (“ARMOUR”) will be making presentations to certain investors. Attached as Exhibit 99.1 to this report is the form of investor presentation to be used by ARMOUR in its presentations.
The investor presentation attached to this report as Exhibit 99.1 is furnished pursuant to this Item 7.01 and shall not be deemed filed in this or any other filing of ARMOUR under the Securities Exchange Act of 1934, as amended, unless expressly incorporated by specific reference in any such filing.
Item 9.01.
Financial Statements and Exhibits.
(c) Exhibits
Exhibit No. | Description |
|
|
99.1 | Investor Presentation |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: January 4, 2010
ARMOUR RESIDENTIAL REIT, INC.
By: /s/ Jeffrey J. Zimmer
Name: Jeffrey J. Zimmer
Title: Co-Chief Executive Officer, President and Vice Chairman
Exhibit Index
Exhibit No. | Description |
|
|
99.1 | Investor Presentation |
Exhibit 99.1
ARMOUR RESIDENTIAL REIT, Inc. |
PLEASE READ: Important Regulatory and Yield Estimate Risk Disclosures |
Certain statements made in this presentation regarding ARMOUR Residential REIT, Inc. (“ARMOUR” or the “Company”), and any other statements regarding ARMOUR’s future expectations, beliefs, goals or prospects constitute forward-looking statements made within the meaning of Section 21E of the Securities Exchange Act of 1934. Any statements that are not statements of historical fact (including statements containing the words “believes,” “plans,” “anticipates,” “expects,” “estimates” and similar expressions) should also be considered forward-looking statements. Forward-looking statements include but are not limited to statements regarding the projections for the ARMOUR business, and plans for future growth and operational improvements. A number of important factors could cause actual results or events to differ materially from those indicated by such forward-looking statements ARMOUR assumes no obligation to update the information looking statements. in this communication, except as otherwise required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
This material is for information purposes only and does not constitute an offer to sell, a solicitation of an offer to buy, or a recommendation for any securities, financial instruments, or common or privately issued stock. The statements, information and estimates contained herein are based on information that the presenter believes to be reliable as of today's date, but cannot be represented that such statements, information or estimates are complete or accurate.
Actual realized yields, durations and net durations described herein will depend on a number of factors that cannot be predicted with certainly. Estimated yields do not reflect any of the costs of operation of ARMOUR.
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ARMOUR Portfolio and Balance Sheet Highlights |
• ARMOUR currently has an Agency mortgage portfolio of $118.3 million.
• At an 8x debt to equity target, total investments are expected to reach approximately $180 million, which includes premium prices paid.
• ARMOUR is 65.7% invested and expects to be fully invested by 1/30/2010.
• ARMOUR expects to increase its investment exposure to True ARMs.
• Approximately half of all investments made to date settled in 2009. The majority of the remaining investments settle in January 2010.
• Gross asset duration is currently estimated at 2.15.
• Net balance sheet duration is currently estimated at 1.60.
• REPO borrowings total $46.4 million.
• Cash on hand as of 12/31/2009 is approximately $6.3 million.
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ARMOUR Portfolio Composition |
Agency Asset Class |
| Investment Amount Including Premium |
| Percentage of Total Portfolio |
|
|
|
|
|
Hybrids | $ | 88,017,603 |
| 74.4% |
True ARMs | $ | 6,315,345 |
| 5.3% |
Seasoned 15 Year | $ | 1,736,443 |
| 1.5% |
Low Loan Balance 15 Year | $ | 16,960,986 |
| 14.3% |
Seasoned 20 Year | $ | 5,249,361 |
| 4.4% |
Total | $ | 118,279,738 |
| 100.0% |
Agency Type |
| Investment Amount Including Premium |
| Percentage of Total Portfolio |
|
|
|
|
|
Freddie Mac | $ | 59,851,569 |
| 50.6% |
Fannie Mae | $ | 43,099,185 |
| 36.4% |
Ginnie Mae | $ | 15,328,983 |
| 13.0% |
Total | $ | 118,279,738 |
| 100.0% |
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ARMOUR Asset Class Composition |
Agency Asset Class | Weighted Average Coupon | Estimated Yield | Estimated Effective Duration | Weighted Average Purchase Price |
|
|
|
|
|
Hybrids | 4.76% | 3.00% | 2.09 | 103.54% |
True ARMs | 3.04% | 2.00% | 0.21 | 101.94% |
Seasoned 15 Year | 6.18% | 3.10% | 1.83 | 106.66% |
Low Loan Balance 15 Year | 4.97% | 3.20% | 3.06 | 105.83% |
Seasoned 20 Year | 4.50% | 3.50% | 2.74 | 102.27% |
Totals | 4.71% | 3.01% | 2.15 | 103.77% |
Yield and Duration estimates are derived from functions available from Bloomberg Finance L.P.
Actual realized yields, durations and net durations described herein will depend on a number of factors that cannot be predicted with certainly. Estimated yields do not reflect any of the costs of operation of ARMOUR.
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ARMOUR Hybrid Composition and True ARM Composition |
Hybrid Index |
| Investment Amount Including Premium |
| Percentage of Hybrid Portfolio |
|
|
|
|
|
1 Year CMT | $ | 29,072,689 |
| 33.0% |
12 Month Libor | $ | 52,474,285 |
| 59.6% |
6 Month Libor | $ | 4,157,767 |
| 4.7% |
10 Yr CMT | $ | 2,312,861 |
| 2.6% |
Total | $ | 88,017,603 |
| 100.0% |
Weighted Average Months to Reset |
| 59.6 | ||
True ARM Type |
| Investment Amount Including Premium |
| Percentage of True ARM Portfolio |
|
|
|
|
|
MTA | $ | 5,008,568 |
| 79.3% |
1 Year CMT |
| 576,755 |
| 9.1% |
12 Month Libor | $ | 638 480 |
| 10.1% |
COFI | $ | 91,542 |
| 1.4% |
Total | $ | 6,315,345 |
| 100.0% |
Weighted Average Months to Reset |
| 1 | ||
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Eurodollar Composition (used to replicate swaps) and REPO Composition |
Eurodollar Bundles to Replicate Swaps |
| Amount | Weighted Average Swap Rate Equivalent | Estimated Duration | Weighted Average Maturity | Longest Maturity |
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Total, Weighted Average | $ | 21,000,000 | 2.22% | 3.12 | 3.47 Years | 48 Months |
REPO |
| Principal Borrowed | Weighted Average REPO Rate | Haircut | Weighted Average Maturity | Longest Maturity |
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Total, Weighted Average | $ | 46,388,602 | 0.251% | 5.09% | 54 Days | 3/22/2010 |
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