Armour Residential REIT Files 2024 10-K

TL;DR

ARR's 2024 10-K is in. Check agency securities and related party deals with BUCKLER.

AI Summary

Armour Residential REIT, Inc. filed its 2024 10-K on February 12, 2025, reporting its financial performance for the fiscal year ending December 31, 2024. The filing details the company's assets, liabilities, and equity, including significant holdings in agency securities. It also discloses related-party transactions involving BUCKLER Securities LLC.

Why It Matters

This filing provides investors with a comprehensive overview of Armour Residential REIT's financial health and operational activities for the past fiscal year, crucial for investment decisions.

Risk Assessment

Risk Level: medium — REITs, especially those focused on agency securities, are subject to interest rate risk and market volatility.

Key Numbers

• 2024-12-31 — Fiscal Year End (Reporting period for the 10-K)
• 2025-02-12 — Filing Date (Date the 10-K was submitted to the SEC)

Key Players & Entities

• Armour Residential REIT, Inc. (company) — Filer of the 10-K
• 2024-12-31 (date) — Fiscal year end
• 2025-02-12 (date) — Filing date
• BUCKLER Securities LLC (company) — Related party in transactions
• Agency Securities (financial_instrument) — Key asset class

FAQ

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
• $4,498,880 — waived, based on gross equity raised of $4,498,880, $4,231,965 and $3,787,042, respectivel
• $4,231,965 — d on gross equity raised of $4,498,880, $4,231,965 and $3,787,042, respectively and effect
• $3,787,042 — ty raised of $4,498,880, $4,231,965 and $3,787,042, respectively and effectively a rate of
• $6,600 — M voluntarily waived management fees of $6,600, $6,600 and $7,800 respectively. ACM is
• $7,800 — d management fees of $6,600, $6,600 and $7,800 respectively. ACM is currently waiving
• $550 — respectively. ACM is currently waiving $550 per month of its contractual management

Filing Documents

• arr-20241231.htm (10-K) — 2342KB
• a2024-ex41descriptionofsec.htm (EX-4.1) — 78KB
• a2024xex191arrinsidertradi.htm (EX-19.1) — 46KB
• a2024-ex231consentofindepe.htm (EX-23.1) — 3KB
• a202410k-exhibit311sulm.htm (EX-31.1) — 12KB
• a202410k-exhibit312gharper.htm (EX-31.2) — 12KB
• a202410k-exhibit321sulm.htm (EX-32.1) — 7KB
• a202410k-exhibit322gharper.htm (EX-32.2) — 7KB
• arr-20241231_g1.jpg (GRAPHIC) — 151KB
• arr-20241231_g2.jpg (GRAPHIC) — 74KB
• arr-20241231_g3.jpg (GRAPHIC) — 108KB
• arr-20241231_g4.jpg (GRAPHIC) — 121KB
• arr-20241231_g5.jpg (GRAPHIC) — 127KB
• arr-20241231_g6.jpg (GRAPHIC) — 133KB
• arr-20241231_g7.jpg (GRAPHIC) — 83KB
• 0001428205-25-000027.txt ( ) — 12821KB
• arr-20241231.xsd (EX-101.SCH) — 71KB
• arr-20241231_cal.xml (EX-101.CAL) — 88KB
• arr-20241231_def.xml (EX-101.DEF) — 421KB
• arr-20241231_lab.xml (EX-101.LAB) — 735KB
• arr-20241231_pre.xml (EX-101.PRE) — 576KB
• arr-20241231_htm.xml (XML) — 1651KB

Risk Factors

Item 1A. Risk Factors 7

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 37

Cybersecurity 38

Item 1C. Cybersecurity 38

Properties

Item 2. Properties 40

Legal Proceedings

Item 3. Legal Proceedings 40

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 40 PART II 41

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 41

[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 108

Controls and Procedures

Item 9A. Controls and Procedures 108

Other Information

Item 9B. Other Information 110

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 110 Part III 111

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 111

Executive Compensation

Item 11. Executive Compensation 111

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 111

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 111

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 111 Glossary of Terms 112 Part IV 115

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 115

Form 10-K Summary

Item 16. Form 10-K Summary 118

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. 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 9 and Note 15 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 one-for-five reverse stock split (the "Reverse Stock Split"), which was effective September 29, 2023. 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 broad and diverse spectrum of Americans. We seek to create stockholder value through thoughtful investment and risk management of a leveraged and diversified portfolio of MBS. We rely on the decade

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 all potential risks that may affect us. Additional risks and uncertainties not currently known to us, or not presently deemed material by us, may also impair our operations and performance. If any of the following events occur, our business, financial condition and operating results may be materially adversely affected, the trading price of our securities could decline and you may lose all or part of your investment. Refer to the Glossary of Terms for definitions of capitalized terms and abbreviations used in this report. U.S. dollar amounts

View Full Filing

View this 10-K filing on SEC EDGAR