Stonegate Capital Partners Updates Coverage on Armour Residential REIT Following Strong Fourth Quarter Performance

Stonegate Capital Partners has updated its coverage on Armour Residential REIT, Inc. following the company's fourth quarter 2025 financial results. The real estate investment trust ended the quarter with interest income of $236.5 million, net income to common shareholders of $208.7 million, and diluted earnings per share of $1.86. These figures represent substantial year-over-year increases of 55.1%, $258.1 million, and $2.69 respectively. The performance was primarily driven by strong growth in average interest income on interest-earning assets while interest costs on average interest-bearing liabilities declined.

According to Stonegate Capital Partners, given the current macroeconomic environment, this performance is expected to be sustainable. The firm's analysis indicates that ARR generated these results through improved interest spreads and lower funding costs. The company also reported distributable earnings of $79.7 million, or $0.71 per share, while book value per share increased 6.5% sequentially to $18.63. This growth in book value reflects the underlying strength of the company's portfolio and management strategy.

During the quarter, Armour Residential REIT paid $0.72 per share in dividends, resulting in a 16.4% annualized yield and a 101% payout ratio relative to distributable earnings. The dividend payment demonstrates the company's commitment to returning value to shareholders while maintaining financial stability. The full announcement, including downloadable images and additional information, is available through Stonegate Capital Partners' coverage update. The firm provides comprehensive capital markets advisory services including investor relations, equity research, and institutional investor outreach for public companies through its various divisions.

The strong fourth quarter performance comes at a time when many real estate investment trusts are navigating challenging market conditions. Armour Residential REIT's ability to achieve significant growth in key financial metrics suggests effective portfolio management and strategic positioning within the residential mortgage-backed securities market. The company's focus on interest-earning assets and careful management of interest-bearing liabilities has positioned it well for continued performance in the current interest rate environment.

Stonegate Capital Partners' updated coverage provides investors with detailed analysis of these financial results and their implications for future performance. The firm's assessment of sustainability in the current macro environment offers valuable perspective for market participants evaluating real estate investment trust opportunities. The combination of strong financial performance, dividend payments, and book value growth creates a compelling picture of Armour Residential REIT's position in the market as it moves forward from the fourth quarter of 2025.