Stonegate Capital Partners Updates Coverage on Armour Residential REIT, Inc. (NYSE: ARR)

Stonegate Capital Partners has updated its coverage on Armour Residential REIT, Inc. (NYSE: ARR), emphasizing the company's improved core earnings power despite a quarterly net loss. For the first quarter of 2026, ARR reported a net loss available to common shareholders of $(58.0) million, or $(0.49) per share, as stronger carry income was more than offset by quarter-end mark-to-market pressure across the portfolio.

Net interest income improved to $70.7 million, but this was outweighed by a $(182.6) million loss on Agency securities and a $(10.6) million loss on U.S. Treasuries, partially offset by $83.0 million of derivative gains. The primary drag in the quarter was the 6.5% decline in book value to $17.42 per share, resulting in a (2.6)% total economic return, reflecting the impact of wider spreads and weaker MBS pricing late in the period.

Despite the headline loss, distributable earnings rose to $0.76 per share, and the economic spread widened to 1.84%. Dividend coverage improved, with the $0.72 quarterly dividend covered by distributable earnings, lowering the payout ratio to approximately 95% from about 101% in the fourth quarter of 2025. The company ended the quarter with $1.1 billion of liquidity, an Agency-focused portfolio, and continued capital access, preserving deployment capacity despite book value pressure.

Stonegate Capital Partners noted that ARR's core earnings power improved despite mark-to-market pressure, and the dividend coverage moved back above the line. The Agency-heavy positioning and strong liquidity support flexibility for future opportunities. For the full announcement, including downloadable images and bios, click here.

Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Its affiliate, Stonegate Capital Markets (member FINRA), provides a full spectrum of investment banking services for public and private companies.