ARR (ARMOUR Residential REIT, Inc.) Reports Lower Leverage and Higher Liquidity
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ARMOUR Residential REIT’s November 13, 2026 portfolio update showed that implied leverage eased to 8.0 times equity at the end of October, from 8.41 times at the end of September. Liquidity rose to about $1.12 billion from the roughly $1.0 billion the company reported at quarter end. Its November common dividend of $0.24 per share had already been announced.
ARMOUR borrows to finance much of its mortgage-bond portfolio. Implied leverage counts exposures such as forward mortgage-bond purchases as well as financing already on the balance sheet. The lower ratio and larger pool of cash and unpledged securities give ARMOUR more room to meet demands for collateral if bond prices swing. The portfolio stayed near $21 billion, so the change in the ratio came alongside a broadly similar amount of assets.
ARMOUR reported $0.71 per common share of distributable earnings for the September quarter, just below the $0.72 in common dividends. We see a stronger liquidity position in the October update. The next question for the dividend is whether the income from the mortgage portfolio, after funding and hedging costs, can build a cushion above the payout.
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This article is general information, not personalized investment advice. Fly High Investing may hold securities discussed in this article.