ARMOUR Residential REIT Q2 net income rises, book value up 0.6%

Overview

• U.S. mortgage REIT's Q2 GAAP net income rose to $111.5 mln

• Q2 distributable earnings available to common stockholders were $93.2 mln

• Book value per common share increased 0.6% to $17.53 from Q1

Outlook

• Company says future common dividend rates will be determined based on ongoing evaluation of results

• ARMOUR says it is prioritizing dividend stability over short-term market fluctuations

• Company says it is well positioned to manage downside risks and pursue opportunities

Result Drivers

• NET INTEREST INCOME - Higher net interest income of $76.8 mln supported quarterly results

• HEDGING GAINS - Gains on interest rate swaps of $110.8 mln offset losses on MBS and U.S. Treasury securities

• CAPITAL RAISE - Raised $218.7 mln from common stock and $4.1 mln from preferred stock offerings, boosting liquidity

Company press release: ID:nGNX5tShz0

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy"

• Wall Street's median 12-month price target for ARMOUR Residential REIT Inc is $18.25, about 11.1% above its July 21 closing price of $16.43

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 5 three months ago

Reuters Recommended Reads

• July 20 - Dynex Capital Q2 book value rises as portfolio expands

• July 20 - AGNC Investment Q2 net spread income slips on lower asset yields

• July 22 - US 30-year mortgage hits 11-month high, MBA says

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)