ARMOUR Residential REIT, Inc. (NYSE:ARR) Q2 2024 Earnings Conference Call July 25, 2024 8:00 AM ET

Company Participants

Scott Ulm - Chief Executive Officer
Gordon Harper - Chief Financial Officer
Desmond Macauley - Co-Chief Investment Officer and Head-Risk Management
Sergey Losyev - Co-Chief Investment Officer

Conference Call Participants

Doug Harter - UBS
Jason Weaver - JonesTrading
Jason Stewart - Janney
Christopher Nolan - Ladenburg Thalmann

Operator

Good morning, and welcome to the ARMOUR Residential REITs Second Quarter 2024 Earnings Call. All participants will be in listen-only mode. [Operator Instructions]. Please note this event is being recorded.

I would now like to turn the conference over to Scott Ulm. Please go ahead.

Scott Ulm

Thank you, and good morning, and welcome to the ARMOUR Residential REIT second quarter 2024 conference call.

This morning, I'm joined by our CFO, Gordon Harper, as well as our co-CIOs, Sergey Losyev and Desmond Macauley.

I'll now turn the call over to Gordon to run through the financial results. Gordon?

Gordon Harper

Thank you, Scott. By now, everyone has access to ARMOUR's earnings release, which can be found on ARMOUR's website, www.ARMOURreit.com.

This conference call includes forward-looking statements, which are intended to be subject to the Safe Harbor protection provided by the Private Securities Litigation Reform Act of 1995. The risk factors section of ARMOUR's periodic reports filed with the Securities Exchange Commission describes certain factors beyond ARMOUR's control that could cause actual results to differ materially from those expressed in or implied by these forward-looking statements. Those periodic filings can be found on the SEC's website at www.sec.gov.

All of today's forward-looking statements are subject to change without notice. We disclaim any obligation to update them unless required by law.

Also today's discussion refers to certain non-GAAP measures. These measures are reconciled with comparable GAAP measures in our earnings release. An online replay of this conference call will be available on ARMOUR's website shortly and continue for one year.

Turning to results, ARMOUR's Q2 GAAP net loss available to common stockholders was $51.3 million, or $1.05 per common share. Net interest income was $7 million. Distributable earnings available to common stockholders was $52.5 million, or $1.08 per common share. This non-GAAP measure is defined as net interest income plus TBA drop income, adjusted for interest income or expense, on our interest rate swaps and futures contracts minus net operating expenses.

ARMOUR Capital Management continued to waive a portion of its management fees, waiving $1.65 million for Q2, which offsets operating expenses. This waiver continues until further notice. ARMOUR paid monthly common stock dividends per share of $0.24 per common share per month for a total of $0.72 for the quarter. Taken together with the contractual dividends on the preferred stock, ARMOUR has made cumulative distributions to stockholders of approximately $2.3 billion over its history.