ARMOUR Residential REIT raises $302.5 million in public offering

Published 07/08/2025, 21:14
ARMOUR Residential REIT raises $302.5 million in public offering

VERO BEACH, Florida - ARMOUR Residential REIT, Inc. (NYSE:ARR), a $1.45 billion market cap company currently offering an impressive 18.11% dividend yield, announced Thursday it has closed an underwritten public offering of 18.5 million shares of its common stock, raising approximately $302.5 million in gross proceeds. According to InvestingPro data, the company has maintained consistent dividend payments for 16 consecutive years.

The real estate investment trust has granted underwriters a 30-day option to purchase up to an additional 2.775 million shares, which could increase total proceeds to approximately $347.8 million if fully exercised.

Goldman Sachs & Co. LLC served as the sole bookrunner for the offering, with BUCKLER Securities LLC acting as co-manager. The settlement of the offering occurred on August 7.

According to the company’s statement, ARMOUR intends to use the net proceeds to acquire additional mortgage-backed securities and other mortgage-related assets in line with its investment strategies. While the company shows a FAIR financial health score on InvestingPro, analysts expect it to return to profitability this year despite recent challenges.

ARMOUR primarily invests in fixed rate residential, adjustable rate and hybrid adjustable rate residential mortgage-backed securities issued or guaranteed by U.S. Government-sponsored enterprises or the Government National Mortgage Association.

The offering was made through a prospectus supplement and accompanying base prospectus filed with the Securities and Exchange Commission.

ARMOUR Residential REIT has elected to be taxed as a real estate investment trust for U.S. Federal income tax purposes, which requires it to distribute substantially all of its ordinary taxable income to maintain this status.

The company is externally managed and advised by ARMOUR Capital Management LP, an investment advisor registered with the SEC.

In other recent news, ARMOUR Residential REIT Inc. reported its financial results for the second quarter of 2025, missing both earnings and revenue estimates. The company posted an earnings per share (EPS) of $0.77, falling short of the forecasted $0.82, and reported revenue of $67.9 million, below the expected $78.66 million. ARMOUR Residential REIT also announced the pricing of an underwritten public offering of 18.5 million shares of common stock, expected to generate approximately $302.5 million in gross proceeds. This amount could increase to around $347.8 million if underwriters exercise their option to purchase an additional 2.775 million shares. The company further amended its equity sales agreement to increase the number of common shares available for sale by 9.5 million, bringing the total to 17,732,711 shares under the at-the-market offering program. Goldman Sachs & Co. LLC is serving as the sole bookrunner for the offering, with BUCKLER Securities LLC acting as co-manager. These developments highlight ARMOUR Residential REIT’s recent financial activities and strategic moves in the market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.