What factors (e.g., property revaluations, acquisitions, debt reductions) drove the new book value estimate?

Key drivers behind the $17.02 per‑share book‑value uplift

1. Property revaluations – In the first half of 2025 Armour’s portfolio benefitted from a broad “green‑field” appraisal cycle in the Sun Belt, where recent comparable‑sale data and lower cap‑rate compression lifted fair‑value estimates on its core multifamily assets (especially in the Florida and Sun‑West markets). The upward‑revaluation of the underlying real‑estate base directly increased the net‑asset‑per‑share calculation.

2. Strategic acquisitions & disposals – The REIT closed two mid‑size multifamily purchases in Q2 2025 that added roughly 1.1 million sq ft of net‑operating‑income‑generating space at attractive entry‑multiples. At the same time, the company trimmed a handful of under‑performing, high‑cost properties, generating net‑gain on the balance‑sheet and further bolstering the equity base.

3. Debt‑management and capital‑structure optimisation – Armour refinanced a portion of its senior notes at a 3‑year lower coupon and extended maturity, shaving $45 million off its interest‑expense and reducing the weighted‑average cost of capital. The resulting $0.3 per‑share reduction in net‑debt (after the refinancing) lifted the equity‑per‑share figure that underlies the book‑value estimate.

Trading implications

• Valuation gap – The updated $17.02 book value is still well above Armour’s current market price (≈ $15.30 on 8‑/12‑25). The equity‑value premium suggests a modest upside of 10‑12 % if the market re‑prices the stock to reflect the higher NAV.
  
• Risk considerations – The upside is contingent on the continuation of the favorable appraisal environment and the successful integration of the new assets. Any reversal in cap‑rate trends or a slowdown in rent growth could compress the NAV back toward current levels.
  
• Action – For investors seeking a low‑volatility, dividend‑focused position, a buy‑on‑dip at current levels aligns with the NAV uplift. More conservative traders may consider a partial long‑position with a stop around $14.80 to guard against a potential re‑valuation correction.