Stonegate Capital Partners Initiates Coverage on Armour Residential REIT, Inc. (ARR)

Rhea-AI Summary

Armour Residential REIT (NYSE: ARR) was initiated by Stonegate Capital Partners on December 23, 2025, following a quarter that showed strong operating results.

Key reported metrics: Revenue $210.2M, Net income to common $156.3M, and Diluted EPS $1.49, representing YoY increases of 65.4%, 148.5%, and 23.2% respectively. Stonegate attributes results to higher average interest income and lower interest cost on liabilities and projects sustainability given the macro environment.

Additional highlights include a 19.3% annualized dividend yield (monthly), a stated valuation discount to book value, and a 7.75% total economic return in the quarter.

Positive

• Revenue $210.2M (+65.4% YoY)
• Net income to common $156.3M (+148.5% YoY)
• Diluted EPS $1.49 (+23.2% YoY)
• Annualized dividend yield 19.3% paid monthly
• Quarter total economic return 7.75%

Negative

• None.

Key Figures

Revenue $210.2M Latest reported quarter revenue

Net income to common $156.3M Latest reported quarter net income

Diluted EPS $1.49 Latest reported quarter EPS

Revenue YoY growth 65.4% Year-over-year revenue increase

Net income YoY growth 148.5% Year-over-year net income increase

EPS YoY growth 23.2% Year-over-year diluted EPS increase

Annualized dividend yield 19.3% Stated annualized yield, paid monthly

Total economic return 7.75% Total economic return in the quarter

Market Reality Check

$18.09 Last Close

Volume Volume 3,097,749 vs 20-day average 3,201,802 (relative volume 0.97). normal

Technical Shares at $17.72, trading above 200-day MA of $16.24 and 8.35% below 52-week high.

Peers on Argus

ARR gained 1.84% with peers also positive: DX +0.36%, ARI +0.90%, EFC +1.01%, LADR +0.31%, CIM +1.33%, suggesting broadly constructive sentiment in mortgage REITs despite the scanner not flagging a sector move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 26	Monthly dividend update	Positive	+0.6%	Announced $0.24 December 2025 cash dividend and key record/payment dates.
Oct 22	Q3 2025 earnings	Positive	+1.1%	Reported $156.3M GAAP net income, $1.49 EPS, higher book value and strong liquidity.
Oct 21	November dividend	Positive	+0.5%	Declared $0.24 November 2025 dividend and reiterated REIT distribution framework.
Oct 21	Earnings webcast notice	Neutral	+0.5%	Scheduled Q3 2025 webcast and guided investors to the replay link.
Oct 01	Dividend confirmations	Positive	+0.7%	Confirmed $0.24 October common dividend and Q4 2025 Series C preferred payouts.

Pattern Detected

Recent dividend and earnings communications have coincided with modestly positive next-day price moves, with no instances of negative reactions in the last five events.

Recent Company History

Over the last few months, ARMOUR’s news flow has centered on stable dividends and Q3 2025 financial performance. Multiple releases in October 2025 confirmed a recurring $0.24 monthly common dividend and detailed Series C preferred distributions. On October 22, 2025, the company reported $156.3M GAAP net income and $1.49 EPS, alongside strong liquidity and agency MBS exposure. Those events all saw small positive price reactions, providing a constructive backdrop for today’s coverage initiation highlighting growth and income metrics.

Market Pulse Summary

This announcement underscores Stonegate’s initiation on ARMOUR following a quarter with $210.2M revenue, $156.3M net income to common, and $1.49 diluted EPS, showing strong year-over-year growth. The company also highlights a 19.3% annualized dividend yield, paid monthly, and a 7.75% total economic return. Investors may monitor future quarters for consistency in earnings, dividend coverage, and book value trends relative to the stock’s current discount.

Key Terms

diluted eps financial

"revenues, net income to common, and diluted EPS of $210.2M..."

Diluted earnings per share (EPS) shows how much profit a company makes for each share of stock, assuming all possible shares from stock options or convertible securities are used. It provides a more conservative estimate than basic EPS, accounting for potential share increases that could dilute ownership. Investors use diluted EPS to get a clearer picture of a company's true profitability on a per-share basis.

dividend yield financial

"Key Takeaways: Strong 19.3% annualized dividend yield, paid monthly..."

Dividend yield is the annual cash dividend a company pays divided by its current share price, shown as a percentage. It tells investors how much income they would receive for each dollar invested—similar to the interest rate on a savings account—helping compare income potential across stocks and flagging when a payout looks unusually high or low relative to the share price.

book value financial

"Value play trading at a discount to Book Value..."

Book value is a company’s total assets minus its total liabilities as reported on the balance sheet; it represents the net accounting value that would remain for shareholders if the business sold its assets and paid off its debts. Investors use it as a benchmark to judge whether a stock looks cheap or pricey compared with that accounting baseline—like comparing a car’s resale “book” value to the price someone asks—and to assess firms with lots of tangible assets or potential liquidation value.

total economic return financial

"Book Value 7.75% total economic return in the quarter..."

Total economic return measures the complete gain or loss an investor experiences from an investment, including changes in market value plus any cash payments such as dividends or interest, after accounting for costs that affect value. It matters because it shows the real payoff of owning an asset — like reading a bank statement that combines account balance change and interest — and lets investors fairly compare investments and judge management performance over time.

interest-bearing liabilities financial

"interest income on interest earning assets while interest cost on average interest-bearing liabilities declined."

Interest-bearing liabilities are debts a company must pay interest on, such as loans, bonds or credit lines, where the borrower pays a regular cost for using the money. Investors care because these obligations determine a firm’s ongoing cash outflows, affect profits and credit risk, and influence how much cash remains for growth or dividends—similar to how a homeowner’s mortgage payments limit personal spending and savings.

AI-generated analysis. Not financial advice.

Dallas, Texas--(Newsfile Corp. - December 23, 2025) - Armour Residential REIT, Inc. (NYSE: ARR): Stonegate Capital Partners initiates their coverage on Armour Residential REIT, Inc. (NYSE: ARR). The Company ended the quarter with revenues, net income to common, and diluted EPS of $210.2M, $156.3M, and $1.49. This was a year over year increase of 65.4%, 148.5% and 23.2% respectively. This was primarily driven by the strong growth in average interest income on interest earning assets while interest cost on average interest-bearing liabilities declined. Given the current macro environment, we expect this performance to be sustainable.

To view the full announcement, including downloadable images, bios, and more, click here.

Key Takeaways:

• Strong 19.3% annualized dividend yield, paid monthly
• Value play trading at a discount to Book Value
• 7.75% total economic return in the quarter

Click image above to view full announcement.

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About Stonegate
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Our affiliate, Stonegate Capital Markets (member FINRA) provides a full spectrum of investment banking services for public and private companies.

Contacts:

Stonegate Capital Partners
(214) 987-4121
info@stonegateinc.com

Source: Stonegate, Inc.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/278981

FAQ

What quarter results did Armour Residential REIT (ARR) report on December 23, 2025?

ARR reported quarterly revenue $210.2M, net income to common $156.3M, and diluted EPS $1.49.

How large were ARR's year-over-year increases reported in the initiation of coverage?

Stonegate reported YoY increases of 65.4% revenue, 148.5% net income, and 23.2% EPS.

What dividend yield did Armour Residential REIT (ARR) highlight in the announcement?

The announcement cites a 19.3% annualized dividend yield, paid on a monthly basis.

Why did Stonegate say ARR's quarter improved versus last year?

Stonegate attributed improvement to higher average interest income on assets and lower interest cost on liabilities.

What total economic return did ARR record in the quarter mentioned by Stonegate?

The quarter delivered a stated 7.75% total economic return.

Does Stonegate expect Armour Residential REIT's performance to continue?

Stonegate expressed an expectation that the performance is sustainable given the current macro environment.