Armour Residential (ARR) Director John P. Hollihan III Exercises Phantom Stock

What Happened

• John P. Hollihan III, a director of Armour Residential REIT (ARR), converted vested phantom stock on Aug 21, 2026. He converted 1,140 phantom units into 1,140 shares of Armour common stock (acquired at $0 per unit as these were phantom units) and converted the remaining 760 vested phantom units into cash to cover income taxes, resulting in a disposition of 760 shares at $16.32 each for proceeds of $12,403.
• The transactions reflect a conversion of 1,900 vested phantom stock units (the full vested amount), with 1,140 retained as stock and 760 cashed solely to pay tax withholding.

Key Details

• Transaction date: August 21, 2026; Filing date: August 25, 2026.
• Conversion details: 1,900 vested phantom units involved; 1,140 units converted to common stock (acquired @ $0); 760 units converted to cash (disposed) @ $16.32 each = $12,403.
• Shares owned after the transaction: not specified in the provided excerpt of the filing.
• Footnotes: F1 explains the split conversion (1,140 to shares, 760 to cash for taxes) and that the 1,900 units relate to a phantom stock award vesting over five years (previously reported). F2 clarifies each phantom unit equals one share of Armour common stock.
• Timeliness: filing shows the Form 4 was submitted Aug 25 for an Aug 21 transaction (check the full filing for any late-filing designation).

Context

• This was a conversion of phantom stock (a cash/stock-settled award), not an open-market purchase or sale of previously held shares. Converting a portion to cash to cover taxes is a routine administrative step (tax withholding) rather than a directional trade signal.
• For retail investors, purchases or added holdings can be more meaningful; here the director acquired 1,140 shares via conversion but also relinquished 760 units for tax liability.