ARMOUR Residential REIT posts Q3 loss due to widening mortgage spreads

ARMOUR Residential REIT

21/10/2026 21:24

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: ID:nGNX85sN73

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

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(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.)