ARR · ARMOUR Residential REIT, Inc.

ARMOUR Residential REIT reported a challenging first quarter of 2026, marked by a GAAP net loss of $(58.0) million, or $(0.49) per share, a significant swing from the prior quarter's gain. The loss was primarily driven by $(182.6) million in unrealized losses on Agency MBS and $(10.6) million in losses on U.S. Treasury Securities, partially offset by $71.3 million in gains on interest rate swaps. Management attributed the market turbulence and MBS volatility to geopolitical events in the latter portion of the quarter. Despite the GAAP loss, the Company generated robust Distributable Earnings of $90.5 million, or $0.76 per share, exceeding the common stock dividend of $0.72 per share. This non-GAAP measure, which focuses on net interest income and hedging efficacy excluding mark-to-market volatility, demonstrated the operational strength of the portfolio. Net interest income increased to $70.7 million from $50.4 million in the prior quarter, supported by a stable economic net interest spread of 1.84%. The Company actively managed its capital structure, raising $215.3 million through common stock issuances while repurchasing 125,000 shares. Book value declined 6.5% to $17.42 per share, resulting in a total economic return of (2.6)%. Management emphasized their strategy of maintaining robust liquidity, which totaled $1.1 billion, and dynamically adjusting hedges to navigate the volatile rate environment.