Armour Residential REIT, Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>Armour Residential REIT, Inc. has filed its 2023 10-K annual report detailing financial performance and holdings.</b>

AI Summary

Armour Residential REIT, Inc. (ARR-PC) filed a Annual Report (10-K) with the SEC on March 15, 2024. Armour Residential REIT, Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. Key financial data points and disclosures for the fiscal year 2023 are presented. The report includes information on preferred and common stock, as well as retained earnings and accumulated other comprehensive income. Details on agency securities and U.S. Treasury securities held by the company are provided for fiscal years 2021, 2022, and 2023.

Why It Matters

For investors and stakeholders tracking Armour Residential REIT, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Armour Residential REIT's financial health and operational activities for the fiscal year 2023, crucial for investors assessing the company's performance and future prospects. The detailed breakdown of asset holdings, including agency and U.S. Treasury securities, and changes in equity accounts offers insights into the company's investment strategy and risk management.

Risk Assessment

Risk Level: — Armour Residential REIT, Inc. shows moderate risk based on this filing. The company's financial performance is subject to market fluctuations in interest rates and real estate values, as indicated by the detailed reporting of its securities portfolio.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand Armour Residential REIT's exposure to interest rate risk and its impact on portfolio value.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-15 — Filing Date (Date the 10-K was filed)

Key Players & Entities

• Armour Residential REIT, Inc. (company) — Filer of the 10-K report
• 2023-12-31 (date) — Fiscal year end
• 2024-03-15 (date) — Filing date
• BUCKLER Securities LLC (company) — Related party entity holding securities

FAQ

Industry Context

Armour Residential REIT, Inc. operates as a real estate investment trust, primarily investing in agency mortgage-backed securities and U.S. Treasury securities.

Regulatory Implications

As a publicly traded REIT, Armour Residential REIT is subject to SEC regulations and reporting requirements, including the annual filing of Form 10-K.

What Investors Should Do

1. Review the detailed financial statements and disclosures within the 10-K for a comprehensive understanding of Armour Residential REIT's financial position.
2. Analyze the company's portfolio composition, particularly its holdings in agency and U.S. Treasury securities, to assess investment strategy and risk exposure.
3. Examine any disclosed risk factors related to interest rate sensitivity and market volatility that could impact the REIT's performance.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-15: Filing Date — Date Armour Residential REIT, Inc. submitted its 10-K filing.

Year-Over-Year Comparison

This filing represents the annual 10-K report for the fiscal year 2023, providing updated financial and operational data compared to previous filings.

Key Financial Figures

• $0.001 — New York Stock Exchange Common Stock, $0.001 par value ARR New York Stock Exchange
• $1.0 billion — f (a) 1.5% of gross equity raised up to $1.0 billion plus (b) 0.75% of gross equity raised i
• $4,231,965 — d 0.98% based on gross equity raised of $4,231,965, $3,787,042 and $3,313,937 and effectiv
• $3,787,042 — d on gross equity raised of $4,231,965, $3,787,042 and $3,313,937 and effectively a rate o
• $3,313,937 — ty raised of $4,231,965, $3,787,042 and $3,313,937 and effectively a rate of 3.09%, 3.53%
• $2,400 — to adjust the fee waiver to the rate of $2,400 for the first quarter of 2021 and $800
• $800 — 2,400 for the first quarter of 2021 and $800 per month thereafter. On April 20, 2021
• $2,100 — to adjust the fee waiver to the rate of $2,100 for the second quarter of 2021 and $700
• $700 — ,100 for the second quarter of 2021 and $700 per month thereafter. On October 25, 20
• $650 — iver from the rate of $700 per month to $650 per month, effective November 1, 2021,
• $1,650 — to adjust the fee waiver to the rate of $1,650 for the first quarter of 2023 and $550
• $550 — 1,650 for the first quarter of 2023 and $550 per month thereafter until ACM provides
• $6,600 — M voluntarily waived management fees of $6,600 and $7,800 and $8,600, respectively (se
• $7,800 — ly waived management fees of $6,600 and $7,800 and $8,600, respectively (see Note 8 to
• $8,600 — anagement fees of $6,600 and $7,800 and $8,600, respectively (see Note 8 to the consol

Filing Documents

• arr-20231231.htm (10-K) — 2453KB
• a2023-ex41descriptionofsec.htm (EX-4.1) — 78KB
• a2023-ex231consentofindepe.htm (EX-23.1) — 2KB
• a202310k-exhibit311sulm.htm (EX-31.1) — 12KB
• a202310k-exhibit312gharper.htm (EX-31.2) — 12KB
• a202310k-exhibit321sulm.htm (EX-32.1) — 7KB
• a202310k-exhibit322gharper.htm (EX-32.2) — 7KB
• a2023ex971clawbackpolicy.htm (EX-97.1) — 27KB
• arr-20231231_g1.jpg (GRAPHIC) — 151KB
• arr-20231231_g2.jpg (GRAPHIC) — 249KB
• arr-20231231_g3.jpg (GRAPHIC) — 107KB
• arr-20231231_g4.jpg (GRAPHIC) — 120KB
• arr-20231231_g5.jpg (GRAPHIC) — 129KB
• arr-20231231_g6.jpg (GRAPHIC) — 124KB
• arr-20231231_g7.jpg (GRAPHIC) — 84KB
• 0001428205-24-000061.txt (&nbsp;) — 13345KB
• arr-20231231.xsd (EX-101.SCH) — 75KB
• arr-20231231_cal.xml (EX-101.CAL) — 100KB
• arr-20231231_def.xml (EX-101.DEF) — 435KB
• arr-20231231_lab.xml (EX-101.LAB) — 679KB
• arr-20231231_pre.xml (EX-101.PRE) — 553KB
• arr-20231231_htm.xml (XML) — 1716KB

Risk Factors

Item 1A. Risk Factors 7

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 36

Cybersecurity 37

Item 1C. Cybersecurity 37

Properties

Item 2. Properties 39

Legal Proceedings

Item 3. Legal Proceedings 39

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 39 PART II 40

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 40

[Reserved]

Item 6. [Reserved] 43

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 44

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 69

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 73

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 110

Controls and Procedures

Item 9A. Controls and Procedures 110

Other Information

Item 9B. Other Information 113

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 115 Part III 116

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 116

Executive Compensation

Item 11. Executive Compensation 116

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 116

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 116

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 116 Glossary of Terms 117 Part IV 120

Exhibits and Fi nancial Statement Schedules

Item 15. Exhibits and Fi nancial Statement Schedules 120

Form 10-K Summary

Item 16. Form 10-K Summary 123

Signatures

Signatures II- 1 PART I

Business

Item 1. Business ARMOUR Residential REIT, Inc. 1 References to "we," "us," "our," or the "Company" are to ARMOUR Residential REIT, Inc. ("ARMOUR") and its subsidiaries. References to "ACM" are to ARMOUR Capital Management LP, a Delaware limited partnership. ARMOUR owns a 10.8% equity interest in BUCKLER Securities LLC ("BUCKLER"), a Delaware limited liability company and a FINRA-regulated broker-dealer, controlled by ACM and certain executive officers of ARMOUR. Refer to the Glossary of Terms for definitions of capitalized terms and abbreviations used in this report. U.S. dollar amounts are presented in thousands, except per share amounts or as otherwise noted. ARMOUR is an externally managed Maryland corporation incorporated in 2008. The Company is managed by ACM, an investment advisor registered with the Securities and Exchange Commission ("SEC") (which registration the Company provides notice of to the state of Florida), (see Note 8 and Note 14 to the consolidated financial statements). We have elected to be taxed as a real estate investment trust ("REIT") under the Internal Revenue Code of 1986, as amended (the "Code"). We believe that we are organized in conformity with the requirements for qualification as a REIT under the Code and our manner of operations enables us to meet the requirements for taxation as a REIT for federal income tax purposes (See Real Estate Investment Trust Requirements section below). All per share amounts, common shares outstanding and stock-based compensation amounts for all periods presented reflect our Reverse Stock Split. Interest earned/paid on cash collateral posted/held on interest rate swap contracts was reclassified from Interest Income to Gain (loss) on derivatives, net, in the consolidated financial statements to conform to current presentation. No other reclassifications have been made to previously reported amounts. Strategies ARMOUR brings private capital into the mortgage markets to support home ownership for a br

Risk Factors

Item 1A. Risk Factors ARMOUR Residential REIT, Inc. 7 You should consider carefully all of the risks described below together with the other information contained in this Annual Report on Form 10-K, before making a decision to invest in our securities. This Annual Report on Form 10-K also contains forward-looking statements that involve risks and uncertainties. The risks and uncertainties described herein should not be considered to be a complete list of

View Full Filing

View this 10-K filing on SEC EDGAR