Stonegate Capital Partners has updated its coverage on Armour Residential REIT, Inc., revealing robust financial results for the fourth quarter of 2025. The company reported interest income of $236.5 million, net income to common of $208.7 million, and diluted earnings per share of $1.86. These figures represent significant year-over-year increases of 55.1%, $258.1 million, and $2.69, respectively.
The primary drivers behind this performance were strong growth in average interest income on interest-earning assets coupled with a decline in interest costs on average interest-bearing liabilities. This improved interest spread environment contributed directly to the company's profitability. Stonegate Capital Partners indicated that, given the current macroeconomic conditions, this level of performance is expected to be sustainable.
Further details from the report show that Armour Residential REIT generated distributable earnings of $79.7 million, or $0.71 per share, for the quarter. The company's book value per share increased by 6.5% sequentially to $18.63. During the quarter, ARR paid dividends of $0.72 per share, which translates to an annualized yield of 16.4% and a payout ratio of 101% relative to its distributable earnings.
This financial update is important for investors and market observers as it demonstrates the company's operational strength and ability to generate shareholder returns in a fluctuating interest rate environment. The substantial growth in key financial metrics suggests effective management of the company's portfolio and liabilities. The sustainability of this performance, as noted by Stonegate, could signal stability and continued value generation for stakeholders, impacting investment decisions and perceptions within the real estate investment trust sector. The full announcement, including downloadable images and additional information, is available via Stonegate Capital Partners' website.
