Stonegate Capital Partners has updated its coverage on Armour Residential REIT, Inc. (NYSE: ARR), reporting robust financial results for the fourth quarter of 2025. The company ended the quarter with interest income of $236.5 million, net income to common stockholders of $208.7 million, and diluted earnings per share of $1.86. These figures represent year-over-year increases of 55.1% in interest income, $258.1 million in net income, and $2.69 in diluted EPS, respectively. The strong performance was primarily driven by growth in average interest income on interest-earning assets, while interest costs on average interest-bearing liabilities declined.
According to the announcement, ARR reported distributable earnings of $79.7 million, or $0.71 per share, while book value per share increased 6.5% sequentially to $18.63. The company paid $0.72 per share in dividends, resulting in a 16.4% annualized yield and a 101% payout ratio relative to distributable earnings. Stonegate Capital Partners noted that given the current macro environment, this performance is expected to be sustainable.
The full announcement, including downloadable images and bios, is available here. Key takeaways from the report highlight that in Q4 2025, ARR generated interest income, net income, and diluted EPS of $236.5 million, $208.7 million, and $1.86, driven by improved interest spreads and lower funding costs.
Stonegate Capital Partners is a leading capital markets advisory firm providing investor relations, equity research, and institutional investor outreach services for public companies. Its affiliate, Stonegate Capital Markets (member FINRA), offers a full spectrum of investment banking services for public and private companies.
