Financial snapshot: 2026-08-31. Research reviewed 2026-09-24. The annual earnings comparison is from 2026-10-03. The business and balance-sheet figures below relate to the reporting period shown.
The income-producing business
The distribution is supported by cash generation from the mortgage portfolio's net interest spread after the cost of repurchase-agreement funding, hedging and operating expenses. Leverage can magnify this income when spreads are favorable, but it also magnifies the effect of falling asset values, higher funding costs and adverse hedge performance. Agency guarantees address mortgage credit exposure, not the interest-rate and funding risks that drive a mortgage REIT's distributable earnings.
This is the business behind the dividend. We care most about the recurring earnings left for shareholders after the costs of running and financing it.
ARMOUR second-quarter 2026 issuer results and reconciliation
The funding behind the assets
At 2026-06-30, ARMOUR Residential REIT, Inc. reported $22.746 billion of total assets and $20.167 billion of total liabilities.
Liabilities represented 88.7% of reported assets. This broad balance-sheet measure includes more than borrowing and must not be read as a debt-to-equity ratio. Funding costs and asset losses can both reduce the earnings available to shareholders.
ARMOUR Residential REIT, Inc.: financial statements and portfolio disclosures
Do earnings cover the dividend?
Annual earnings of $2.96 per share compare with $2.88 in annual dividends. Coverage is 102.78%. Earnings cover the payment in this update. Keep watching whether that support holds up.
We like the earnings support here. A steady or growing cushion would make the income case more comfortable.
Fly High update 2026-10-03
Interest-rate and yield-curve risk
Changes in short- and long-term interest rates can alter both mortgage-asset values and financing costs. A flatter or inverted yield curve can pressure the spread that supports earnings available for distribution.
This exposure matters if it reduces the earnings left to pay the dividend. The next report will show whether that is happening.
ARMOUR second-quarter 2026 issuer results and reconciliation
Financing and leverage risk
Mortgage REITs commonly rely on short-term repurchase-agreement financing. Higher borrowing costs, reduced financing availability, increased collateral requirements or forced deleveraging could reduce earnings and book value.
This exposure matters if it reduces the earnings left to pay the dividend. The next report will show whether that is happening.
ARMOUR second-quarter 2026 issuer results and reconciliation
Where the portfolio is invested
At August 31, 2026, the $22.665 billion portfolio comprised 87.4% fixed-rate agency pools, 6.5% agency CMBS, 3.5% net TBA positions and 2.6% Treasury longs.
Agency support addresses mortgage credit exposure. Leverage, financing costs, prepayments and changes in rates still affect income and capital.
ARMOUR September 2026 portfolio update, filed with SEC
The current agency-backed portfolio
The August 31, 2026 portfolio update lists $22.665 billion of portfolio exposure: 93.9% Agency securities, 3.5% net TBA positions and 2.6% U.S. Treasury long positions. The Agency total includes 87.4% fixed-rate pools and 6.5% Agency commercial mortgage securities.
Fly High assessment: This dated asset mix does not identify a new material direct mortgage-credit problem. Agency backing does not protect common shareholders against mortgage-price changes, leverage or financing costs.
ARMOUR September 2026 portfolio update, filed with SEC
Liquidity and short-term funding
At August 31, 2026, ARMOUR reported $1.334 billion of liquidity, equal to 50% of total capital, 7.5 times debt to equity and 7.9 times implied leverage. Repurchase financing had a weighted average remaining term of 22 days; affiliated BUCKLER Securities supplied 50.0% of that financing.
Fly High assessment: Liquidity is substantial, but frequent refinancing and the concentration with an affiliated counterparty require monitoring. The liquidity measure includes cash and unencumbered Agency and U.S. government securities; it is not all cash.
ARMOUR September 2026 portfolio update, filed with SEC
Common book value and share growth
Using the June 30, 2026 balance sheet, common book value was approximately $17.53 per share, compared with $18.63 at December 31, 2025. This calculation subtracts the reported Series C liquidation preference from total stockholders equity and divides by issued and outstanding common shares. Common shares increased from 111.915 million to 136.371 million.
Fly High assessment: Total capital increased, but calculated common capital per share declined. Watch the economics of new share issuance and future book value per share. These are calculations from the dated financial statements, not replacements for the published Fly High figures.
ARMOUR Residential REIT, Inc.: financial statements and portfolio disclosures
What would change the earnings picture?
The next report should show how mortgage spreads, hedging and short-term borrowing costs affect earnings after the August portfolio update. Compare that result with the monthly dividend and common book value.
