Stonegate Capital Partners has updated its coverage on Armour Residential REIT, Inc. (NYSE: ARR), following the company's first-quarter 2026 results. The report highlights a net loss available to common shareholders of $(58.0) million, or $(0.49) per share, as stronger carry income was more than offset by quarter-end mark-to-market pressure across the portfolio.
Net interest income improved to $70.7 million, but this was outweighed by a $(182.6) million loss on Agency securities and a $(10.6) million loss on U.S. Treasuries, partially offset by $83.0 million of derivative gains. The primary drag in the quarter was the 6.5% decline in book value to $17.42 per share, resulting in a (2.6)% total economic return, reflecting the impact of wider spreads and weaker MBS pricing late in the period.
Despite the headline loss, Stonegate noted that core earnings power improved. Distributable earnings rose to $0.76 per share, and the economic spread widened to 1.84%. Dividend coverage moved back above the line, with the $0.72 quarterly dividend covered by distributable earnings, lowering the payout ratio to approximately 95% from about 101% in the fourth quarter of 2025.
The company's liquidity and Agency-heavy positioning support flexibility. Armour ended the quarter with $1.1 billion of liquidity, an Agency-focused portfolio, and continued capital access, preserving deployment capacity despite book value pressure. The full announcement, including downloadable images and more, is available here.
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Its affiliate, Stonegate Capital Markets (member FINRA), provides a full spectrum of investment banking services for public and private companies.
