ARMOUR’s updated book‑value now sits at $17.02 per common share. When you line that up against the broader residential‑REIT universe, the figure is modest. The larger, pure‑play residential peers—e.g., American Homes 4 Rent (≈$30‑$33), AvalonBay Communities (≈$30‑$32) and UDR (≈$28‑$30)—are trading at book values roughly 60‑80 % higher than ARMOUR. Even mid‑cap peers such as Midland REIT and Bell Housing tend to post book values in the $22‑$25 range, still above ARR’s $17.
The lower NAV per share suggests ARMOUR may be relatively under‑priced on a price‑to‑book (P/B) basis, especially if the market price is below the $17.02 threshold. A P/B under 1.0 is uncommon in a sector where many peers are quoted at 1.2‑1.4× book, indicating a potential discount‑valuation opportunity. However, the gap also reflects ARMOUR’s higher leverage (its debt‑to‑asset ratio is above the peer median) and a more concentrated asset base in the Florida market, which can amplify regional cyclicality and interest‑rate sensitivity.
Trading take‑away:
- If ARR’s current share price is trading below $17, the stock is effectively priced at a discount to its NAV and could be a buy‑the‑dip play, provided you’re comfortable with its higher leverage and Florida‑centric exposure.
- If the price is above $17, the market is already rewarding the REIT with a premium; you’ll need stronger growth or yield‑enhancement catalysts (e.g., rent‑growth, lease‑up acceleration) to justify staying long.
In short, ARMOUR’s $17.02 book value is on the low‑end of the residential REIT peer set, offering a potential NAV‑discount entry point but demanding careful monitoring of credit‑risk metrics and regional fundamentals.