Boston, MA 10/30/2013 (wallstreetpr) – ARMOUR Residential REIT, Inc. (NYSE:ARR) as scheduled released its third quarterly performance for the year 2013, ended September 30.
Armour Residential is an investing agency in the real estate sector that has varied interests in residential mortgage-backed securities (MBS). Considering the high levels of volatility in the sector, the company has seen massive cuts in dividends.
According to the results, the company’s core income is $43.8 million and GAAP net loss to the tune of $229.9 million. The company’s dividends are in the region of $0.7 for every Common Share held each month, translating to $78.3 million. Additionally, Armour also paid monthly dividends against Cumulative Preferred Stock for Series A as well as Series B.
Armour Residential was affected in the third quarter of 2013, by the volatility occurring in the mortgage and bond market.
The company had combated the volatility by lowering its exposure to it. It sold nearly $6.0 billion of its Agency Securities that translated to loss of $301.0 million. The three government mortgage securities- Fannie Mae, Ginnie Mae and Freddie Mac were part of its core portfolio. The total value of these securities was $16.7 billion. The company recorded yield of 2.60% on the average assets. Of the complete portfolio it holds on Agency Securities, valued at $16.7 billion, 98.4% was fixed rate Agency Securities, ARMs was 1.6% and Hybrid ARMs.
Armour Residential also has a management fee payment structure. Typically the company has a 1.5% management fee on equity of $1.0 billion, while it is 0.75 % when equity crosses $1.0 billion. For the current quarter, Armour Residential has made an payment of management fee of 1.016% on the equity it had raised thus far.
Armour Residential proposes to reconcile with regulations of the Internal Revenue Code, preferring this over GAAP.
