Stonegate Capital Partners has updated its coverage on Armour Residential REIT, Inc. (NYSE: ARR), emphasizing the company's robust fourth-quarter 2025 financial results. The mortgage real estate investment trust reported interest income of $236.5 million, net income to common shareholders of $208.7 million, and diluted earnings per share (EPS) of $1.86 for the quarter ended December 31, 2025. These figures represent significant year-over-year improvements, with interest income rising 55.1%, net income increasing by $258.1 million, and diluted EPS growing by $2.69.
The strong performance was primarily driven by a substantial increase in average interest income on interest-earning assets, coupled with a decline in interest costs on average interest-bearing liabilities. According to Stonegate, this favorable spread environment is expected to be sustainable given the current macroeconomic conditions. The company also reported distributable earnings of $79.7 million, or $0.71 per share, while book value per share rose 6.5% sequentially to $18.63.
Armour Residential REIT paid dividends of $0.72 per share during the quarter, resulting in an annualized yield of 16.4% and a payout ratio of 101% relative to distributable earnings. The full announcement, including additional details and downloadable images, is available here.
Stonegate Capital Partners, a leading capital markets advisory firm, provides investor relations, equity research, and institutional investor outreach services for public companies. Its affiliate, Stonegate Capital Markets (member FINRA), offers a full spectrum of investment banking services for public and private companies.
