ARMOUR Residential REIT posts Q3 loss due to widening mortgage spreads

By Reuters News


Overview

  • U.S. mortgage-backed securities REIT reported Q3 GAAP net loss and book value decline

  • Q3 distributable earnings positive, but net income negative due to MBS and Treasury losses

  • Company says Q3 results driven by widening mortgage spreads and rising interest rates


Outlook

  • Company has declared a monthly common dividend of $0.24 per share for November 2026

  • ARMOUR says it remains constructive on the MBS market and sees the outlook as favorable

  • Company says it will determine future dividend rates based on results, financial position and market conditions


Result Drivers

  • MORTGAGE SPREADS - Co said widening mortgage spreads and rising interest rates late in Q3 led to losses on MBS and Treasury securities

  • HEDGING GAINS - Gains on interest rate swaps and futures contracts partially offset investment losses, per co


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Distributable Earnings

$102.30 mln

Q3 Net Interest Income

$83.70 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the specialized reits peer group is "buy"

  • Wall Street's median 12-month price target for ARMOUR Residential REIT, Inc. is $18.25, about 43.9% above its October 20 closing price of $12.68

  • The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 6 three months ago


Reuters Recommended Reads

  • Oct 19 - AGNC Investment Q3 net loss widens on Agency MBS market weakness

  • Oct 20 - Annaly Capital posts Q3 net loss amid challenging fixed-income markets

  • Oct 19 - Dynex Capital's Q3 book value declines, reports loss


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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