Q3 2025 Results
GAAP net income available to common stockholders of $156.3 million or $1.49 per common share.
Net interest income of $38.5 million.
Distributable Earnings available to common stockholders of $75.3 million, which represents $0.72 per common share (see explanation of this non-GAAP measure on page 4).
Average interest income on interest earning assets of 5.05% and interest cost on average interest bearing liabilities of 4.63%.
Economic interest income was 5.00% less economic interest expense of 3.17% for an economic net interest spread of 1.83% (see explanation of this non-GAAP measure on page 6).
In August, completed the sale of 18,500,000 shares of common stock for proceeds of approximately $298.6 million, net of underwriting discounts and commissions.
Raised $99.5 million of capital by issuing 5,994,201 shares of common stock through an at the market offering program.
In September, repurchased (684,102) shares of common stock through a stock repurchase program.
Paid common stock dividends of $0.24 per share per month, or $0.72 per share for Q3.
September 30, 2025 Financial Position
Book value per common share of $17.49, up 3.5% compared to $16.90 at June 30, 2025; and up 2.8% from the previously reported book value of $17.02 on August 8, 2025.
Total economic return, which is change in book value for the period plus common dividends paid for the quarter, was 7.75% for Q3 2025.
Liquidity, including cash and unencumbered securities, of $1.1 billion.
Portfolio totaled $18.2 billion, comprised of 97.9% Agency mortgage-backed securities ("MBS"), 1.4% U.S. Treasury Securities and 0.7% of To Be Announced ("TBA") Securities.
Repurchase agreements, net totaled $16.6 billion; 43.3% were with ARMOUR affiliate BUCKLER Securities LLC.
Debt to equity ratio of 7.78:1 (based on repurchase agreements divided by total stockholders' equity). Implied leverage, including TBA Securities and forward settling sales and unsettled purchases was 7.73:1.
Interest Rate swap contracts totaled $10.4 billion of notional amount.
Company Update, October 20, 2025
Common stock outstanding of 111,898,236 shares.
Liquidity, including cash and unencumbered securities, exceeded $927 million, this excludes MBS principal and interest receivable due in October 2025 which totaled $250.0 million.
Securities portfolio included approximately $18.8 billion of Agency MBS (including TBA Securities) and U.S. Treasury Securities.
Through October 10, 2025 we raised approximately $0.3 million of capital by issuing 13,997 shares of preferred stock through an at the market offering program.
Debt to equity ratio (based on repurchase agreements divided by total stockholders' equity) was 8.12 to 1; Implied leverage, including TBA Securities and forward settling sales and unsettled purchases was 8.12 to 1.
Book value per common share consisted of:
September 30, 2025
December 31, 2024
Stockholders' Equity
(in millions except per share)
Common stock, at par value - 111,898,236 and 62,412,116 shares outstanding, respectively
$
0.1
$
0.1
Additional paid-in capital
5,441.8
4,585.7
Cumulative distributions to stockholders
(2,583.2
)
(2,383.5
)
Accumulated net loss
(729.9
)
(840.9
)
Total Stockholders' Equity
$
2,128.8
$
1,361.4
Less: liquidation preference - 7.00% Cumulative Redeemable Preferred C Stock - 6,864,342 and 6,846,978 shares outstanding
(171.6
)
(171.2
)
Equity Attributable to Common Stockholders
$
1,957.2
$
1,190.2
Book value per common share
$
17.49
$
19.07
The major drivers of the change in the Company's financial position were:
Q3 2025
Q2 2025
(in millions)
Total Stockholders' Equity, Beginning
$
1,659.9
$
1,703.8
Income (Loss)
Investment in securities:
Gain on MBS
$
177.1
$
16.5
Gain (Loss) on U.S. Treasury Securities
6.2
(2.9
)
Gain (Loss) on TBA Securities
0.6
(2.8
)
Loss on interest rate swaps
(17.2
)
(77.6
)
Loss on futures contracts
(32.6
)
(27.6
)
Net Interest Income
38.5
33.1
Total Expenses after fees waived(1)
(13.3
)
(14.3
)
Net Income (Loss)
$
159.3
$
(75.6
)
Preferred stock dividends
(3.0
)
(3.0
)
Common stock dividends
(76.2
)
(60.4
)
Capital Activities
Issuance of common stock
398.7
105.1
Common shares repurchased
(9.9
)
(10.0
)
Total Stockholders' Equity, Ending
$
2,128.8
$
1,659.9
__________________________________
(1) The Company's external manager waived a portion of its contractual management fee at the rate of $1.65 million per quarter for each of Q3 2025 and Q2 2025.
Condensed Balance Sheet (unaudited)
September 30, 2025
December 31, 2024
(in millions)
Assets
Cash and cash equivalents
$
44.2
$
68.0
Cash collateral posted to counterparties
264.3
78.2
Agency Securities, at fair value
17,805.2
12,439.4
U.S. Treasury Securities, at fair value
251.6
—
Receivable for unsettled sales
296.5
—
Derivatives, at fair value
613.0
908.1
Accrued interest receivable
79.7
52.8
Prepaid and other
2.7
1.4
Total Assets
$
19,357.2
$
13,547.9
Liabilities
Repurchase agreements, net
