Armour Residential REIT, Inc.

ARMOUR Residential REIT, Inc. (NYSE: ARR) operates as a real estate investment trust focused on investing in mortgage-backed securities issued or guaranteed by U.S. Government-sponsored entities such as Fannie Mae, Freddie Mac, and Ginnie Mae, as well as U.S. Treasury Securities. The company's website is www.armourreit.com.

The company employs a leveraged investment strategy, utilizing repurchase agreements to finance a portfolio of Agency Securities that is several times larger than its stockholders' equity. This financial leverage approach enables ARMOUR to generate net interest income from the spread between long-term mortgage yields and short-term borrowing costs. The company's investment portfolio consists primarily of fixed-rate mortgage-backed securities, though its charter permits investments in hybrid adjustable-rate and adjustable-rate mortgage securities as well.

ARMOUR is externally managed by ARMOUR Capital Management LP, a registered investment advisor, pursuant to a management agreement that runs through December 31, 2029 with automatic renewal provisions. The management fee structure is based on gross equity raised rather than asset performance, calculated as 1.5% of gross equity raised up to $1.0 billion and 0.75% of amounts exceeding that threshold. As of February 17, 2026, ARMOUR Capital Management employed 20 individuals providing services to the company.

The company maintains a 10.8% equity ownership interest in BUCKLER Securities LLC, a FINRA-regulated broker-dealer that serves as a significant financing counterparty and placement agent for the company's at-the-market common stock offering program. BUCKLER accounted for approximately 47% of ARMOUR's aggregate borrowings as of December 31, 2025.

ARMOUR qualifies as a REIT for federal income tax purposes and is required to distribute at least 90% of taxable income to shareholders annually. The company maintains an exclusion from regulation under the Investment Company Act of 1940 by ensuring that at least 55% of assets are invested in mortgages and real estate-related interests. The company actively manages interest rate risk through derivative instruments including interest rate swaps, basis swaps, and futures contracts while maintaining a diversified portfolio across multiple maturities and coupon rates.