Arlington Asset Investment Corp. (NYSE: AI) announced today that its Board of Directors has approved a plan for the Company to elect to be taxed and to operate in a manner that will allow the Company to qualify as a real estate investment trust for U.S. federal income tax purposes commencing with the Company's taxable year ending December 31, 2019.

"With the expectation that Arlington would utilize its net operating loss carryforwards as a C corporation in 2019, the Board of Directors believes that the Company's plan to elect to be taxed as a REIT is the best long-term tax structure for both Arlington and its shareholders," commented J. Rock Tonkel, Jr., the Company's President and Chief Executive Officer. "Remaining tax loss carryforwards upon REIT conversion will continue to be available to the Company as a REIT. The Company also does not anticipate any significant modifications to its operations or investment strategy to qualify as a REIT."

In connection with the Company's expected election to be taxed as a REIT, the Company's Board of Directors has received a legal opinion from Hunton Andrews Kurth LLP regarding the Company's ability to qualify as a REIT commencing with the Company's taxable year ending December 31, 2019.

About the Company

Arlington Asset Investment Corp. (NYSE: AI) is a principal investment firm that currently invests primarily in mortgage-related and other assets. The Company is headquartered in the Washington, D.C. metropolitan area. The Company intends to operate in a manner that will allow it to qualify as a REIT, commencing with the Company's taxable year ending December 31, 2019.