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 26, 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.) |
956 Beachland Blvd., Suite 11 Vero Beach, Florida | 32963 |
(Address of Principal Executive Offices) | (Zip Code) |
(772) 617-4340
(Registrant’s Telephone Number, Including Area Code)
6800 Broken Sound Parkway, Suite 200
Boca Raton, Florida 33487
(772) 388-4758
(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 26, 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 26, 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 forwardlooking 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 |
• Portfolio and Balance Sheet Highlights
— ARMOUR is 100% invested as of January 26, 2010.
— ARMOUR has an Agency mortgage portfolio of $183.65 million (1).
— Gross asset duration is currently estimated at 2.09.
— Net balance sheet duration is currently estimated at 1.34.
— REPO borrowings total $169.64 million.
— Debt to equity ratio (2) = 8.08x.
— Eurodollar Bundles to replicate swaps total $52.0 million.
— Cash on hand is approximately $5.2 million.
• Dividend and Earnings Update
— ARMOUR expects to declare a dividend prior to the end of the first quarter of 2010 payable
within
30 days of that declaration.
— ARMOUR will file its Form 10K for 2009 with the SEC in March 2010.
• (1) Based on Agency asset purchase price and including those assets which have settled.
• (2) Estimated book value per share at the time of the closing of the merger with Enterprise Acquisition Corporation, on 11/6/2009.
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ARMOUR Portfolio Composition |
Agency Asset Class |
| Investment Amount Including Premium |
| Percentage of Total Portfolio |
|
|
|
|
|
True ARMS (0-18 Months to Reset) | $ | 21,502,395 |
| 11.7% |
Hybrids (‹ 19 Months to Reset) | $ | 126,687,757 |
| 69.0% |
Seasoned 15 & 20 Year Pass-Throughs | $ | 18,542,613 |
| 10.1% |
Low Loan Balance 15 Year Pass-Throughs | $ | 16,919,018 |
| 9.2% |
Total | $ | 183,651,783 |
| 100.0% |
February Forward Settlement Trades | $ | 15,242,364 |
|
|
Agency Type |
| Investment Amount Including Premium |
| Percentage of Total Portfolio |
|
|
|
|
|
Freddie Mac | $ | 86,379,902 |
| 47.0% |
Fannie Mae | $ | 88,620,619 |
| 48.3% |
Ginnie Mae | $ | 8,651,262 |
| 4.7% |
Total | $ | 183,651,783 |
| 100.0% |
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ARMOUR Asset Class Composition |
Agency Asset Class | Weighted Average Coupon | Estimated Yield | Estimated Effective Duration |
|
|
|
|
True ARMS (0-18 Months to Reset) | 4.76% | 2.00% | 0.25 |
Hybrids (19+ Months to Reset; Ave. = 59) | 4.69% | 3.00% | 2.20 |
Seasoned 15 & 20 Year Pass-Throughs | 4.92% | 3.50% | 2.60 |
Low Loan Balance 15 Year Pass-Throughs | 4.97% | 3.20% | 3.06 |
Totals | 4.74% | 2.95% | 2.09 |
Yield and Duration estimates are derived from functions available from Bloomberg Finance L.P.
Yield and Duration estimates are derived using the asset purchase price.
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 | $ | 26,986,363 |
| 21.3% |
12 Month Libor | $ | 93,019,933 |
| 73.4% |
6 Month Libor | $ | 4,378,681 |
| 3.5% |
10 Yr CMT | $ | 2,302,779 |
| 1.8% |
Total | $ | 126,687,756 |
| 100.0% |
Weighted Average Months to Reset |
| 57 | ||
True ARM Type |
| Investment Amount Including Premium |
| Percentage of True ARM Portfolio |
|
|
|
|
|
MTA | $ | 4,861,322 |
| 22.6% |
6 Month CMT |
| 1,515,419 |
| 7.0% |
1 Year CMT |
| 3,438,959 |
| 16.0% |
6 Month Libor | $ | 1,143,760 |
| 5.3% |
12 Month Libor | $ | 10,158,539 |
| 47.2% |
COFI | $ | 384,396 |
| 1.8% |
Total | $ | 21,502,395 |
| 100.0% |
Weighted Average Months to Reset |
| 8 | ||
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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 |
|
|
|
|
|
|
Total, Weighted Average | $ | 52,000,000 | 1.83% | 2.67 | 35.8 Months |
|
|
|
|
| Longest Maturity |
|
|
|
|
| 48 Months |
REPO |
| Principal Borrowed | Weighted Average REPO Rate | Haircut | Weighted Average Maturity |
|
|
|
|
|
|
Total, Weighted Average | $ | 169,643,760 | 0.250% | 5.15% | 61 Days |
|
|
|
|
| Longest Maturity |
|
|
|
|
| 104 Days |
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