Q1 2026 Results
GAAP net loss related to common stockholders of $(58.0) million or $(0.49) per common share.
Net interest income of $70.7 million.
Distributable Earnings available to common stockholders of $90.5 million, which represents $0.76 per common share (see explanation of this non-GAAP measure on page 5).
Average interest income on interest earning assets of 4.88% and interest cost on average interest bearing liabilities of 3.84%.
Economic interest income was 4.82% less economic interest expense of 2.98% for an economic net interest spread of 1.84% (see explanation of this non-GAAP measure on page 7).
Raised $215.3 million of capital by issuing 11,820,056 shares of common stock through an at the market offering program.
Raised $6.4 million of capital by issuing 306,823 shares of preferred stock through an at the market offering program.
Repurchased 125,000 shares of common stock under the Company's common stock repurchase authorization.
Paid common stock dividends of $0.24 per share per month, or $0.72 per share for Q1.
March 31, 2026 Financial Position
Book value per common share of $17.42, down (6.5)% compared to $18.63 at December 31, 2025.
Q1 2026 total economic return was (2.6)%, which is change in book value for the period plus common dividends paid for the quarter.
Liquidity, including cash and unencumbered securities, of $1.1 billion.
Portfolio totaled $21.1 billion, comprised of 92.5% Agency mortgage-backed securities ("MBS") and 4.7% U.S. Treasury Securities and 2.8% of To Be Announced ("TBA") securities.
Repurchase agreements, net totaled $18.5 billion; 43.4% were with ARMOUR affiliate BUCKLER Securities LLC.
Debt to equity ratio of 7.90:1 (based on repurchase agreements divided by total stockholders' equity). Implied leverage, including TBA Securities and forward settling sales and unsettled purchases was 8.21:1.
Interest Rate swap contracts totaled $12.9 billion of notional amount.
Management's Remarks
"Notwithstanding the market turbulence and MBS volatility due to geopolitical events experienced in the latter portion of the first quarter of the year the Company delivered solid results for the first quarter of 2026, with total economic return of (2.6)%," said Scott Ulm, the Company's Chief Executive Officer. "Our approach remains to grow and deploy capital thoughtfully during spread dislocations, maintain robust liquidity, and dynamically adjust hedges for disciplined risk management. We continue to prioritize maintaining common share dividends appropriate for the intermediate term rather than focusing on short-term market fluctuations. We are confident in our positioning, strategy, and ability to deliver value for shareholders."
Company Update, April 20, 2026
Common stock outstanding of 124,046,116 shares.
Liquidity, including cash and unencumbered securities, exceeded $943 million, this excludes MBS principal and interest receivable due in April 2026 which totaled $380.5 million.
Securities portfolio included approximately $21.5 billion of Agency MBS (including TBA Securities) and U.S. Treasury Securities.
Through April 14, 2026 we raised approximately $7.2 million of capital by issuing 416,409 shares of common stock and $0.2 million of capital by issuing 8,603 shares of preferred stock through at the market offering programs.
Debt to equity ratio (based on repurchase agreements divided by total stockholders' equity) was 8.06 to 1; Implied leverage, including TBA Securities and forward settling sales and unsettled purchases was 8.27 to 1.
Book value per common share consisted of:
March 31,2026
December 31,2025
Stockholders' Equity
(in millions except per share)
Common stock, at par value - 123,629,707 and 111,915,020 shares outstanding, respectively
$
0.1
$
0.1
Additional paid-in capital
5,666.4
5,446.2
Cumulative distributions to stockholders
(2,756.5
)
(2,667.1
)
Accumulated net loss
(573.0
)
(518.2
)
Total Stockholders' Equity
$
2,337.0
$
2,261.0
Less: liquidation preference - 7.00% Cumulative Redeemable Preferred C Stock - 7,354,655 and 7,047,832 shares outstanding
(183.9
)
(176.2
)
Equity Attributable to Common Stockholders
$
2,153.1
$
2,084.8
Book value per common share
$
17.42
$
18.63
The major drivers of the change in the Company's financial position were:
Q1 2026
Q4 2025
(in millions)
Total Stockholders' Equity, Beginning
$
2,261.0
$
2,128.8
Income
Investment in securities:
Gain (Loss) on MBS
$
(182.6
)
$
112.9
Loss on U.S. Treasury Securities
(10.6
)
(0.4
)
Gain (Loss) on TBA Securities
(7.1
)
0.2
Gain on interest rate swaps
71.3
48.5
Gain on futures contracts
18.8
14.1
Net Interest Income
70.7
50.4
Total Expenses(1)
(15.3
)
(14.0
)
Net Income (Loss)
$
(54.8
)
$
211.7
Preferred stock dividends
(3.2
)
(3.0
)
Common stock dividends
(86.3
)
(80.8
)
Capital Activities
Issuance of Preferred stock
6.4
3.8
Issuance of common stock
215.9
0.5
Common shares repurchased
(2.0
)
—
Total Stockholders' Equity, Ending
$
2,337.0
$
2,261.0
____________________
(1)The Company's external manager waived a portion of its contractual management fee at the rate of $1.65 million for Q4 2025.
Condensed Balance Sheet (unaudited)
March 31,2026
December 31,2025
(in millions)
Assets
Cash and cash equivalents
$
66.5
$
63.3
Cash collateral posted to counterparties
147.7
226.7
Agency Securities, at fair value
19,497.6
19,417.6
U.S. Treasury Securities, at fair value
989.5
598.1
Derivatives, at fair value
661.0
611.5
Accrued interest receivable
88.6
86.2
Prepaid and other
3.7
1.7
Total Assets
$
21,454.6
