MCLEAN, Va., March 26, 2020 /PRNewswire/ -- Arlington
Asset Investment Corp. (NYSE: AI) (the "Company") today announced
that the Company has determined not to declare a first quarter 2020
common stock dividend in order to preserve liquidity as a result of
volatile market conditions related to the COVID-19 pandemic.
In addition, the declaration and payment of future dividends on its
common stock, 7.00% Series B Cumulative Perpetual Redeemable Stock
(NYSE: AI PrB) and 8.250% Series C Fixed-to-Floating Cumulative
Redeemable Preferred Stock (NYSE: AI PrC) will be evaluated at a
future date.
The Company has also provided the following updates.
- The Company has satisfied all of its margin calls under its
financing arrangements.
- The Company estimates that its book value per common share as
of March 24, 2020 has declined in a
range of approximately 32% to 36% since December 31, 2019.
- The Company de-levered its investment portfolio and estimates
that its "at risk" short term secured financing to investable
capital ratio has been reduced to approximately 1.6 to 1 from 8.7
to 1 as of December 31,
2019.[1]
- The Company remains committed to preserving long-term value for
its shareholders while also protecting its employees during this
difficult time.
About the Company
Arlington Asset Investment Corp. (NYSE: AI) currently invests
primarily in mortgage-related and other assets and will elect to be
taxed as a real estate investment trust for its taxable year
ending December 31, 2019. The Company is headquartered
in the Washington, D.C. metropolitan area. For more
information, please visit www.arlingtonasset.com.
Certain statements in this press release are forward-looking as
defined by the Private Securities Litigation Reform Act of
1995. These include statements regarding the Company's
estimate of book value per common share as of March 24, 2020, current leverage, and future
dividend payments. Forward-looking statements can be
identified by forward-looking language, including words such as
"believes," "expects," "anticipates," "estimates," "plans,"
"continues," "intends," "should", "may," and similar expressions.
Due to known and unknown risks, including the risk that the
assumptions on which the forward-looking statements are based prove
to be inaccurate, actual results may differ materially from
expectations or projections. These risks also include the
Company's ability to accurately estimate the financial information
included in this press release, ongoing uncertainly caused by the
COVID-19 pandemic and those described in the Company's most recent
Annual Report on Form 10-K and any other documents filed by the
Company with the Securities and Exchange Commission (the "SEC")
from time to time, which are available from the Company and from
the SEC, and you should read and understand these risks when
evaluating any forward-looking statement. Readers of this
press release are cautioned to consider these risks and
uncertainties and not to place undue reliance on any
forward-looking statements. The Company does not undertake
any obligation to update any forward-looking statement, whether
written or oral, relating to matters discussed in this press
release, except as may be required by applicable securities
laws.
[1] The Company's "at risk" short-term secured
financing to investable capital is measured as the ratio of the sum
of the Company's repurchase agreement financing, net payable or
receivable for unsettled securities and net contractual price of
TBA commitments less cash and cash equivalents compared to the
Company's investable capital measured as the sum of the Company's
shareholders' equity and long-term unsecured debt.
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SOURCE Arlington Asset Investment Corp.