Yahoo Finance ARMOUR Residential REIT Inc (ARR) (Q1 2024) Earnings Call Transcript Highlights: Key Financial ...
GAAP Net Income: $11.5 million, or $0.24 per common share.
Net Interest Income: $5.3 million.
Distributor Earnings: $40.4 million, or $0.82 per common share.
Dividends: Monthly common stock dividends of $0.24 per share, totaling $0.72 for the quarter.
Book Value: Quarter-end book value at $22.07 per common share; current estimate at $20.48 per common share.
Management Fee Waiver: $1.65 million waived for Q1.
Total Distributions: Cumulative distributions to stockholders of $2.3 billion over history.
Release Date: April 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Hi. Good morning. Actually, I'm with Jones Trading. I wanted to ask, Scott, regarding your prepared remarks on BUCKLER, if you were detecting any change in the availability of general repo credit out there, given the volatility over the last month. A: Repo has been just fine. Obviously, we monitor that extremely carefully, and we are active with a whole bunch of counterparties, as well as being on the inside with BUCKLER. But repo has been well behaved.
Q: Okay, fair enough. And then on the expense side, I was curious how long you plan to continue waiving the management fee, as well as if there's any lingering sort of enhanced compliance costs coming from the results of the internal investigation. A: So first of all, on the waiver, we expect to continue that. Obviously, it's a function of portfolio dynamics here, but we've had it since COVID and expect to continue. As to enhanced compliance, as I mentioned, the focus on tone at the top is very real, and it is part of our internal controls now. So that is certainly an area of focus. But other than that, it's -- and some of the other things I mentioned with regard to NIM and its new formulation in economic interest income, we remain in the same place we've always been, which is take great care of this stuff.
Q: Thanks. Good morning. I'm hoping you could talk through a little bit more of the decision to reduce the portfolio size in April as you're kind of balancing the near-term volatility that you might said with the longer-term optimism on current spread levels. A: Thanks, Doug. I'm going to turn that one over to Sergey.
Q: Hey, thanks. A follow-up on the question about the expenses, just to clarify, are there -- would you expect to see any more of the one-time expenses coming through in April, or is that exclusively in the first quarter? A: I think we've accrued pretty well for it, but you know how these things go. There's always something that dribbles in, but I don't think it will have anything -- even if there is some dribbling later on, I don't expect it to be significant.
Q: Hi, thanks. Related to the Special Committee investigation, you mentioned that you hired an outside counsel and an accounting firm. Is this the same accounting firm that does your audit? A: No, we're -- a national accounting firm and not Deloitte.
Q: Okay. And you repeatedly mentioned tone at the top, and then you also mentioned conflict of interest. Is the tone at the top financial related to conflicts of interest or other? A: It's other, and this is all bound up at the COSO framework, which is the control framework that we use. And the way it works is that, tone at the top, which is a broad measure but recognizes a critical part of effective controls, leads into the whole network of financial controls. It's part of that. So that's where that goes. It's pretty clearly laid out in the K and the Q. You'll see the broader COSO framework and then how this fits in as part of it. But it's unrelated to conflict-of-interest stuff, on which there were no findings.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
