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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.
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