ARMOUR Residential REIT, Inc. (NYSE: ARR) is a specialty finance company that invests primarily in residential mortgage-backed securities (“RMBS”). Organized as a real estate investment trust (REIT), the company’s principal business objective is to generate current income and, as market conditions permit, capital appreciation for its shareholders. To pursue these objectives, ARMOUR Residential REIT acquires, holds and manages a diversified portfolio of residential mortgage assets that may include agency and non-agency RMBS, mortgage servicing rights (MSRs) and other residential credit investments.
The company’s investment strategy emphasizes Agency RMBS guaranteed by U.S. Government-sponsored enterprises such as Fannie Mae, Freddie Mac and Ginnie Mae, while also maintaining the flexibility to invest in non-Agency RMBS and credit risk transfer securities. ARMOUR Residential REIT seeks to enhance returns through the use of leverage, primarily by entering into repurchase agreements and other secured financing transactions with leading counterparties. Risk management is central to the investment process, with the firm employing interest rate hedging and other derivative strategies to manage portfolio duration and credit exposure.
ARMOUR Residential REIT launched its initial public offering in 2013 and is externally managed by ARMOUR Capital Management, LP, an investment adviser specializing in residential mortgage credit. Since its inception, the company has focused exclusively on the U.S. residential housing finance market, drawing on the deep liquidity and transparency of the Agency RMBS sector. Headquartered in New York City, ARMOUR Residential REIT leverages the market expertise and operational capabilities of its adviser to monitor changing market dynamics and capitalize on relative value opportunities across the mortgage landscape.
Under the leadership of John M. Bittenbender, Chief Executive Officer and Executive Chairman, ARMOUR Residential REIT benefits from a management team with extensive backgrounds in structured finance, risk management and capital markets. The company’s governance framework and oversight processes are designed to support disciplined investment decisions and maintain compliance with REIT regulations. Through its focus on core mortgage-backed assets, prudent leverage and active risk management, ARMOUR Residential REIT aims to deliver attractive risk-adjusted returns to its investors over the long term.
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