Home
Arbor Realty Trust
Arbor Realty Trust Reports Second Quarter 2025 Results and Declares Dividend of $0.30 per Share
Business
Aug 1 2025
21 min read

Arbor Realty Trust Reports Second Quarter 2025 Results and Declares Dividend of $0.30 per Share

news images

Company Highlights:

  • GAAP net income of $0.12 per diluted common share

  • Distributable earnings1 of $0.25, or $0.30 per diluted common share, excluding $10.5 million of realized losses from the sale of two real estate owned properties

  • Declares cash dividend on common stock of $0.30 per share

  • Significant improvements to the right side of our balance sheet:

    • Closed our first build-to-rent collateralized securitization vehicle totaling $801.9 million with improved terms over our warehouse lines

    • In July 2025, issued $500.0 million of 7.875% senior unsecured notes due 2030 to repay $287.5 million of convertible senior notes and add ~$200 million of liquidity

  • Servicing portfolio of ~$33.76 billion, agency loan originations of $857.1 million

  • Structured loan portfolio of ~$11.61 billion, originations of $716.5 million and runoff of $519.7 million

  • Foreclosed on six loans totaling $188.2 million and sold four real estate owned properties totaling $114.5 million

UNIONDALE, N.Y., Aug. 01, 2025 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE: ABR), today announced financial results for the second quarter ended June 30, 2025. Arbor reported net income for the quarter of $24.0 million, or $0.12 per diluted common share, compared to net income of $47.4 million, or $0.25 per diluted common share for the quarter ended June 30, 2024. Distributable earnings for the quarter was $52.1 million, or $0.25 per diluted common share, compared to $91.6 million, or $0.45 per diluted common share for the quarter ended June 30, 2024.

Agency Business

Loan Origination Platform

 

Agency Loan Volume (in thousands)

 

Quarter Ended

 

June 30, 2025

 

March 31, 2025

Fannie Mae

$

683,206

 

$

357,811

Freddie Mac

 

150,339

 

 

178,020

Private Label

 

 

 

44,925

FHA

 

 

 

16,041

SFR-Fixed Rate

 

23,552

 

 

9,111

Total Originations

$

857,097

 

$

605,908

 

 

 

 

Total Loan Sales

$

807,020

 

$

730,854

 

 

 

 

Total Loan Commitments

$

852,766

 

$

645,401

 

 

 

 

 

 

For the quarter ended June 30, 2025, the Agency Business generated revenues of $64.5 million, compared to $62.9 million for the first quarter of 2025. Gain on sales, including fee-based services, net was $13.7 million for the quarter, reflecting a margin of 1.69%, compared to $12.8 million and 1.75% for the first quarter of 2025. Income from mortgage servicing rights was $10.9 million for the quarter, reflecting a rate of 1.28% as a percentage of loan commitments, compared to $8.1 million and 1.26% for the first quarter of 2025.

At June 30, 2025, loans held-for-sale was $361.4 million, with financing associated with these loans totaling $329.5 million.

Fee-Based Servicing Portfolio

The Company’s fee-based servicing portfolio totaled $33.76 billion at June 30, 2025. Servicing revenue, net was $27.4 million for the quarter and consisted of servicing revenue of $45.2 million, net of amortization of mortgage servicing rights totaling $17.8 million.

 

Fee-Based Servicing Portfolio ($ in thousands)

 

June 30, 2025

 

March 31, 2025

 

UPB

 

Wtd. Avg.
Fee (bps)

 

Wtd. Avg.
Life (years)

 

UPB

 

Wtd. Avg.
Fee (bps)

 

Wtd. Avg.
Life (years)

Fannie Mae

$

22,999,772

 

45.8

 

5.9

 

$

22,683,885

 

46.2

 

6.2

Freddie Mac

 

6,100,091

 

21.3

 

6.5

 

 

6,123,074

 

21.4

 

6.6

Private Label

 

2,599,971

 

18.7

 

5.0

 

 

2,603,122

 

18.7

 

5.3

FHA

 

1,497,551

 

14.0

 

19.9

 

 

1,519,675

 

14.0

 

19.0

SFR-Fixed Rate

 

287,065

 

20.0

 

4.2

 

 

276,839

 

20.1

 

4.1

Bridge

 

278,116

 

10.4

 

2.6

 

 

278,293

 

10.4

 

2.8

Total

$

33,762,566

 

37.4

 

6.5

 

$

33,484,888

 

37.5

 

6.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans sold under the Fannie Mae program contain an obligation to partially guarantee the performance of the loan (“loss-sharing obligations”) and includes $35.0 million for the fair value of the guarantee obligation undertaken at June 30, 2025. The Company recorded a $4.0 million net provision for loss sharing associated with CECL for the second quarter of 2025. At June 30, 2025, the Company’s total CECL allowance for loss-sharing obligations was $54.8 million, representing 0.24% of the Fannie Mae servicing portfolio.

Structured Business

Portfolio and Investment Activity

 

Structured Portfolio Activity ($ in thousands)

 

Quarter Ended

 

June 30, 2025

 

March 31, 2025

 

UPB

 

%

 

UPB

 

%

Bridge:

 

 

 

 

 

 

 

Multifamily

$

103,300

 

14

%

 

$

367,750

 

49

%

SFR

 

530,986

 

74

%

 

 

356,294

 

48

%

 

 

634,286

 

88

%

 

 

724,044

 

97

%

 

 

 

 

 

.

 

 

Mezzanine/Preferred Equity

 

6,999

 

1

%

 

 

4,440

 

1

%

Construction - Multifamily

 

75,259

 

11

%

 

 

18,637

 

2

%

Total Originations

$

716,544

 

100

%

 

$

747,121

 

100

%

 

 

 

 

 

 

 

 

Number of Loans Originated

 

19

 

 

 

 

20

 

 

 

 

 

 

 

 

 

 

Commitments:

 

 

 

 

 

 

 

SFR

$

232,384

 

 

 

$

162,400

 

 

Construction - Multifamily

 

173,000

 

 

 

 

92,000

 

 

Total Commitments

$

405,384

 

 

 

$

254,400

 

 

 

 

 

 

 

 

 

 

Loan Runoff

$

519,709

 

 

 

$

421,941

 

 


 

Structured Portfolio ($ in thousands)

 

June 30, 2025

 

March 31, 2025

 

UPB

 

%

 

UPB

 

%

Bridge:

 

 

 

 

 

 

 

Multifamily

$

8,404,597

 

72

%

 

$

8,637,773

 

75

%

SFR

 

2,531,841

 

22

%

 

 

2,247,817

 

20

%

Other

 

169,025

 

2

%

 

 

171,952

 

1

%

 

 

11,105,463

 

96

%

 

 

11,057,542

 

96

%

 

 

 

 

 

 

 

 

Mezzanine/Preferred Equity

 

400,634

 

3

%

 

 

405,770

 

4

%

Construction - Multifamily

 

100,070

 

1

%

 

 

23,005

 

<1

%

SFR Permanent

 

3,068

 

<1

%

 

 

3,076

 

<1

%

Total Portfolio

$

11,609,235

 

100

%

 

$

11,489,393

 

100

%

 

 

 

 

 

 

 

 

 

 

 

 

At June 30, 2025, the loan and investment portfolio’s unpaid principal balance ("UPB"), excluding loan loss reserves, was $11.61 billion, with a weighted average interest rate of 7.03%, compared to $11.49 billion and 6.94% at March 31, 2025. Including certain fees earned and costs associated with the loan and investment portfolio, the weighted average interest rate was 7.86% at June 30, 2025, compared to 7.85% at March 31, 2025.

The average balance of the Company’s loan and investment portfolio during the second quarter of 2025, excluding loan loss reserves, was $11.53 billion with a weighted average yield of 7.95%, compared to $11.39 billion and 8.15% for the first quarter of 2025. The decrease in yield was primarily due to non-performing and foreclosed on loans in the second quarter of 2025.

During the second quarter of 2025, the Company recorded a $16.1 million net provision for loan losses associated with CECL. At June 30, 2025, the Company’s total allowance for loan losses was $243.3 million. The Company had nineteen non-performing loans with a UPB of $471.8 million, before related loan loss reserves of $36.4 million, compared to twenty-three loans with a UPB of $511.1 million, before loan loss reserves of $35.3 million at March 31, 2025.

In addition, at June 30, 2025, the Company had three loans with a total UPB of $56.9 million that were less than 60 days past due classified as non-accrual, compared to five loans with a total UPB of $142.8 million (before related loan loss reserves of $7.3 million) at March 31, 2025. Interest income on these loans is only being recorded to the extent cash is received.

During the second quarter of 2025, the Company modified eight loans to borrowers experiencing financial difficulty with a total UPB of $251.9 million, primarily all of which had borrowers investing additional capital to recapitalize their deals. Six of these loans with a total UPB of $144.9 million, contained interest rates based on pricing over SOFR ranging from 3.25% to 4.50% and were modified to provide temporary rate relief through a pay and accrual feature. At June 30, 2025, these modified loans had a weighted average pay rate of 5.50% and a weighted average accrual rate of 2.78%. In addition, of the total modified loans for the second quarter, $47.7 million were less than 60 days past due and $11.2 million were non-performing at March 31, 2025, and are now current in accordance with their modified terms.

Financing Activity

The balance of debt that finances the Company’s loan and investment portfolio at June 30, 2025 was $9.61 billion with a weighted average interest rate including fees of 6.88%, as compared to $9.49 billion and a rate of 6.82% at March 31, 2025.

The average balance of debt that finances the Company’s loan and investment portfolio for the second quarter of 2025 was $9.52 billion, as compared to $9.42 billion for the first quarter of 2025. The average cost of borrowings for the second quarter of 2025 was 6.99%, compared to 6.96% for the first quarter of 2025.

In May 2025, the Company completed its first build-to-rent collateralized securitization vehicle totaling $801.9 million, of which $682.6 million consisted of investment grade notes, with the Company retaining subordinate interests in the vehicle of $119.3 million and $41.0 million of the investment grade notes. The vehicle included $50 million in ramp-up capacity for acquiring additional loans within 180 days of closing, a two-year replenishment period and a $200 million senior revolving note to support construction advances and future reinvestment during the replenishment period. The investment grade-rated notes placed with investors had an initial weighted average spread of 2.48% over SOFR, excluding fees and transaction costs.

In July 2025, the Company issued $500.0 million of its 7.875% senior unsecured notes due July 2030 through a private offering. The Company is using the net proceeds of this offering to pay down debt and for general corporate purposes.

Dividend

The Company announced today that its Board of Directors has declared a quarterly cash dividend of $0.30 per share of common stock for the quarter ended June 30, 2025. The dividend is payable on August 29, 2025 to common stockholders of record on August 15, 2025.

Earnings Conference Call

The Company will host a conference call today at 10:00 a.m. Eastern Time. A live webcast and replay of the conference call will be available at www.arbor.com in the investor relations section of the Company’s website, or you can access the call telephonically at least ten minutes prior to the conference call. The dial-in numbers are (800) 343-4136 for domestic callers and (203) 518-9843 for international callers. Please use participant passcode ABRQ225 when prompted by the operator.

A telephonic replay of the call will be available until August 8, 2025. The replay dial-in numbers are (800) 839-8531 for domestic callers and (402) 220-6074 for international callers.

About Arbor Realty Trust, Inc.

Arbor Realty Trust, Inc. (NYSE: ABR) is a nationwide real estate investment trust and direct lender, providing loan origination and servicing for multifamily, single-family rental (SFR) portfolios, and other diverse commercial real estate assets. Headquartered in New York, Arbor manages a multibillion-dollar servicing portfolio, specializing in government-sponsored enterprise products. Arbor is a leading Fannie Mae DUS® lender and Freddie Mac Optigo® Seller/Servicer, and an approved FHA Multifamily Accelerated Processing (MAP) lender. Arbor’s product platform also includes bridge, CMBS, mezzanine and preferred equity loans. Rated by Standard and Poor’s and Fitch Ratings, Arbor is committed to building on its reputation for service, quality, and customized solutions with an unparalleled dedication to providing our clients excellence over the entire life of a loan.

Safe Harbor Statement

Certain items in this press release may constitute forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Arbor can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from Arbor’s expectations include, but are not limited to, changes in economic conditions generally, and the real estate markets specifically, continued ability to source new investments, changes in interest rates and/or credit spreads, and other risks detailed in Arbor’s Annual Report on Form 10-K for the year ended December 31, 2024 and its other reports filed with the SEC. Such forward-looking statements speak only as of the date of this press release. Arbor expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Arbor’s expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.

Notes

  1. During the quarterly earnings conference call, the Company may discuss non-GAAP financial measures as defined by SEC Regulation G. In addition, the Company has used non-GAAP financial measures in this press release. A supplemental schedule of non-GAAP financial measures and the comparable GAAP financial measure can be found on the last two pages of this release.

Contact:

Arbor Realty Trust, Inc.
Investor Relations
516-506-4200
InvestorRelations@arbor.com


 

ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Consolidated Statements of Income - (Unaudited)
($ in thousands—except share and per share data)

 

 

Quarter Ended June 30,

 

Six Months Ended June 30,

 

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

Interest income

$

240,303

 

 

$

297,188

 

 

$

480,997

 

 

$

618,480

 

Interest expense

 

171,578

 

 

 

209,227

 

 

 

336,829

 

 

 

426,903

 

Net interest income

 

68,725

 

 

 

87,961

 

 

 

144,168

 

 

 

191,577

 

Other revenue:

 

 

 

 

 

 

 

Gain on sales, including fee-based services, net

 

13,658

 

 

 

17,448

 

 

 

26,439

 

 

 

34,114

 

Mortgage servicing rights

 

10,930

 

 

 

14,534

 

 

 

19,061

 

 

 

24,733

 

Servicing revenue, net

 

27,437

 

 

 

29,910

 

 

 

53,040

 

 

 

61,436

 

Property operating income

 

5,452

 

 

 

1,444

 

 

 

9,839

 

 

 

3,014

 

Gain (loss) on derivative instruments, net

 

219

 

 

 

(275

)

 

 

3,619

 

 

 

(5,533

)

Other income, net

 

3,989

 

 

 

2,081

 

 

 

8,407

 

 

 

4,414

 

Total other revenue

 

61,685

 

 

 

65,142

 

 

 

120,405

 

 

 

122,178

 

Other expenses:

 

 

 

 

 

 

 

Employee compensation and benefits

 

41,181

 

 

 

42,836

 

 

 

87,217

 

 

 

90,529

 

Selling and administrative

 

14,859

 

 

 

12,823

 

 

 

31,171

 

 

 

26,756

 

Property operating expenses

 

6,802

 

 

 

1,584

 

 

 

10,276

 

 

 

3,262

 

Depreciation and amortization

 

5,848

 

 

 

2,423

 

 

 

9,592

 

 

 

4,994

 

Provision for loss sharing (net of recoveries)

 

4,215

 

 

 

4,333

 

 

 

6,002

 

 

 

4,607

 

Provision for credit losses (net of recoveries)

 

19,004

 

 

 

29,564

 

 

 

28,079

 

 

 

48,682

 

Total other expenses

 

91,909

 

 

 

93,563

 

 

 

172,337

 

 

 

178,830

 

Income before extinguishment of debt, (loss) gain on real estate, income from equity affiliates and income taxes

 

38,501

 

 

 

59,540

 

 

 

92,236

 

 

 

134,925

 

Loss on extinguishment of debt

 

 

 

 

(412

)

 

 

(2,319

)

 

 

(412

)

(Loss) gain on real estate

 

(1,448

)

 

 

3,813

 

 

 

(4,258

)

 

 

3,813

 

Income from equity affiliates

 

2,654

 

 

 

2,793

 

 

 

1,020

 

 

 

4,211

 

Provision for income taxes

 

(3,398

)

 

 

(3,901

)

 

 

(6,989

)

 

 

(7,493

)

Net income

 

36,309

 

 

 

61,833

 

 

 

79,690

 

 

 

135,044

 

Preferred stock dividends

 

10,342

 

 

 

10,342

 

 

 

20,684

 

 

 

20,684

 

Net income attributable to noncontrolling interest

 

2,015

 

 

 

4,094

 

 

 

4,617

 

 

 

9,090

 

Net income attributable to common stockholders

$

23,952

 

 

$

47,397

 

 

$

54,389

 

 

$

105,270

 

 

 

 

 

 

 

 

 

Basic earnings per common share

$

0.12

 

 

$

0.25

 

 

$

0.28

 

 

$

0.56

 

Diluted earnings per common share

$

0.12

 

 

$

0.25

 

 

$

0.28

 

 

$

0.56

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic

 

192,236,206

 

 

 

188,655,801

 

 

 

191,154,501

 

 

 

188,683,095

 

Diluted

 

209,003,002

 

 

 

205,487,711

 

 

 

207,938,574

 

 

 

205,499,619

 

 

 

 

 

 

 

 

 

Dividends declared per common share

$

0.30

 

 

$

0.43

 

 

$

0.73

 

 

$

0.86

 


 

ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
($ in thousands—except share and per share data)

 

 

June 30, 2025

 

 

 

(Unaudited)

 

December 31, 2024

Assets:

 

 

 

Cash and cash equivalents

$

255,742

 

 

$

503,803

Restricted cash

 

90,944

 

 

 

156,376

Loans and investments, net (allowance for credit losses of $243,278 and $238,967)

 

11,333,023

 

 

 

11,033,997

Loans held-for-sale, net

 

361,447

 

 

 

435,759

Capitalized mortgage servicing rights, net

 

348,326

 

 

 

368,678

Securities held-to-maturity, net (allowance for credit losses of $13,659 and $10,846)

 

156,920

 

 

 

157,154

Investments in equity affiliates

 

71,796

 

 

 

76,312

Real estate owned, net

 

365,186

 

 

 

176,543

Due from related party

 

16,773

 

 

 

12,792

Goodwill and other intangible assets

 

87,336

 

 

 

88,119

Other assets

 

475,546

 

 

 

481,448

Total assets

$

13,563,039

 

 

$

13,490,981

 

 

 

 

Liabilities and Equity:

 

 

 

Credit and repurchase facilities

$

4,721,622

 

 

$

3,559,490

Securitized debt

 

3,510,865

 

 

 

4,622,489

Senior unsecured notes

 

1,238,174

 

 

 

1,236,147

Convertible senior unsecured notes

 

287,258

 

 

 

285,853

Junior subordinated notes to subsidiary trust issuing preferred securities

 

145,085

 

 

 

144,686

Mortgage notes payable — real estate owned

 

184,618

 

 

 

74,897

Due to related party

 

3,396

 

 

 

4,474

Due to borrowers

 

36,780

 

 

 

47,627

Allowance for loss-sharing obligations

 

89,757

 

 

 

83,150

Other liabilities

 

251,621

 

 

 

280,198

Total liabilities

 

10,469,176

 

 

 

10,339,011

 

 

 

 

Equity:

 

 

 

Arbor Realty Trust, Inc. stockholders' equity:

 

 

 

Preferred stock, cumulative, redeemable, $0.01 par value: 100,000,000 shares authorized, shares issued and outstanding by period:

 

633,682

 

 

 

633,684

Special voting preferred shares - 16,173,761 and 16,293,589 shares

 

 

 

6.375% Series D - 9,200,000 shares

 

 

 

6.25% Series E - 5,750,000 shares

 

 

 

6.25% Series F - 11,342,000 shares

 

 

 

Common stock, $0.01 par value: 500,000,000 shares authorized - 192,301,414 and 189,259,435 shares issued and outstanding

 

1,922

 

 

 

1,893

Additional paid-in capital

 

2,411,661

 

 

 

2,375,469

(Accumulated deficit) retained earnings

 

(72,521

)

 

 

13,039

Total Arbor Realty Trust, Inc. stockholders' equity

 

2,974,744

 

 

 

3,024,085

Noncontrolling interest

 

119,119

 

 

 

127,885

Total equity

 

3,093,863

 

 

 

3,151,970

Total liabilities and equity

$

13,563,039

 

 

$

13,490,981


 

ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Statement of Income Segment Information - (Unaudited)
(in thousands)

 

 

Quarter Ended June 30, 2025

 

Structured
Business

 

Agency
Business

 

Other (1)

 

Consolidated

Interest income

$

229,980

 

 

$

10,323

 

 

$

 

 

$

240,303

 

Interest expense

 

165,858

 

 

 

5,720

 

 

 

 

 

 

171,578

 

Net interest income

 

64,122

 

 

 

4,603

 

 

 

 

 

 

68,725

 

Other revenue:

 

 

 

 

 

 

 

Gain on sales, including fee-based services, net

 

 

 

 

13,658

 

 

 

 

 

 

13,658

 

Mortgage servicing rights

 

 

 

 

10,930

 

 

 

 

 

 

10,930

 

Servicing revenue

 

 

 

 

45,204

 

 

 

 

 

 

45,204

 

Amortization of MSRs

 

 

 

 

(17,767

)

 

 

 

 

 

(17,767

)

Property operating income

 

5,452

 

 

 

 

 

 

 

 

 

5,452

 

Gain on derivative instruments, net

 

 

 

 

219

 

 

 

 

 

 

219

 

Other income, net

 

2,105

 

 

 

1,884

 

 

 

 

 

 

3,989

 

Total other revenue

 

7,557

 

 

 

54,128

 

 

 

 

 

 

61,685

 

Other expenses:

 

 

 

 

 

 

 

Employee compensation and benefits

 

16,018

 

 

 

25,163

 

 

 

 

 

 

41,181

 

Selling and administrative

 

7,590

 

 

 

7,269

 

 

 

 

 

 

14,859

 

Property operating expenses

 

6,802

 

 

 

 

 

 

 

 

 

6,802

 

Depreciation and amortization

 

5,456

 

 

 

392

 

 

 

 

 

 

5,848

 

Provision for loss sharing

 

 

 

 

4,215

 

 

 

 

 

 

4,215

 

Provision for credit losses (net of recoveries)

 

16,112

 

 

 

2,892

 

 

 

 

 

 

19,004

 

Total other expenses

 

51,978

 

 

 

39,931

 

 

 

 

 

 

91,909

 

Income before loss on real estate, income from equity affiliates and income taxes

 

19,701

 

 

 

18,800

 

 

 

 

 

 

38,501

 

Loss on real estate

 

(1,448

)

 

 

 

 

 

 

 

 

(1,448

)

Income from equity affiliates

 

2,654

 

 

 

 

 

 

 

 

 

2,654

 

Provision for income taxes

 

(1,277

)

 

 

(2,121

)

 

 

 

 

 

(3,398

)

Net income

 

19,630

 

 

 

16,679

 

 

 

 

 

 

36,309

 

Preferred stock dividends

 

10,342

 

 

 

 

 

 

 

 

 

10,342

 

Net income attributable to noncontrolling interest

 

 

 

 

 

 

 

2,015

 

 

 

2,015

 

Net income attributable to common stockholders

$

9,288

 

 

$

16,679

 

 

$

(2,015

)

 

$

23,952

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)  Includes income allocated to the noncontrolling interest holders not allocated to the two reportable segments.

 

ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Balance Sheet Segment Information - (Unaudited)
(in thousands)

 

 

June 30, 2025

 

Structured Business

 

Agency Business

 

Consolidated

Assets:

 

 

 

 

 

Cash and cash equivalents

$

65,771

 

$

189,971

 

$

255,742

Restricted cash

 

63,713

 

 

27,231

 

 

90,944

Loans and investments, net

 

11,333,023

 

 

 

 

11,333,023

Loans held-for-sale, net

 

 

 

361,447

 

 

361,447

Capitalized mortgage servicing rights, net

 

 

 

348,326

 

 

348,326

Securities held-to-maturity, net

 

 

 

156,920

 

 

156,920

Investments in equity affiliates

 

71,796

 

 

 

 

71,796

Real estate owned, net

 

365,186

 

 

 

 

365,186

Goodwill and other intangible assets

 

12,500

 

 

74,836

 

 

87,336

Other assets and due from related party

 

411,439

 

 

80,880

 

 

492,319

Total assets

$

12,323,428

 

$

1,239,611

 

$

13,563,039

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

Debt obligations

$

9,758,138

 

$

329,484

 

$

10,087,622

Allowance for loss-sharing obligations

 

 

 

89,757

 

 

89,757

Other liabilities and due to related parties

 

219,877

 

 

71,920

 

 

291,797

Total liabilities

$

9,978,015

 

$

491,161

 

$

10,469,176


 

ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Reconciliation of Distributable Earnings to GAAP Net Income - (Unaudited)
($ in thousands—except share and per share data)

 

 

Quarter Ended June 30,

 

Six Months Ended June 30,

 

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

Net income attributable to common stockholders

$

23,952

 

 

$

47,397

 

 

$

54,389

 

 

$

105,270

 

Adjustments:

 

 

 

 

 

 

 

Net income attributable to noncontrolling interest

 

2,015

 

 

 

4,094

 

 

 

4,617

 

 

 

9,090

 

Income from mortgage servicing rights

 

(10,930

)

 

 

(14,534

)

 

 

(19,061

)

 

 

(24,733

)

Deferred tax benefit

 

(1,603

)

 

 

(2,944

)

 

 

(1,741

)

 

 

(6,896

)

Amortization and write-offs of MSRs

 

19,825

 

 

 

19,518

 

 

 

40,689

 

 

 

37,936

 

Depreciation and amortization

 

6,582

 

 

 

3,044

 

 

 

11,149

 

 

 

6,239

 

Loss on extinguishment of debt

 

 

 

 

412

 

 

 

2,319

 

 

 

412

 

Provision for credit losses, net

 

8,435

 

 

 

31,457

 

 

 

9,192

 

 

 

46,260

 

(Gain) loss on derivative instruments, net

 

(674

)

 

 

371

 

 

 

(5,371

)

 

 

5,894

 

Loss on real estate

 

1,857

 

 

 

 

 

 

4,667

 

 

 

 

Stock-based compensation

 

2,610

 

 

 

2,750

 

 

 

8,545

 

 

 

8,772

 

Distributable earnings (1)

$

52,069

 

 

$

91,565

 

 

$

109,394

 

 

$

188,244

 

 

 

 

 

 

 

 

 

Diluted distributable earnings per share (1)

$

0.25

 

 

$

0.45

 

 

$

0.53

 

 

$

0.92

 

 

 

 

 

 

 

 

 

Diluted weighted average shares outstanding (1) (2)

 

209,003,002

 

 

 

205,487,711

 

 

 

207,938,574

 

 

 

205,499,619

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)  Amounts are attributable to common stockholders and OP Unit holders. The OP Units are redeemable for cash, or at the Company's option for shares of the Company's common stock on a one-for-one basis.

(2)  The diluted weighted average shares outstanding exclude the potential shares issuable upon conversion and settlement of the Company's convertible senior notes principal balance.

The Company is presenting distributable earnings because management believes it is an important supplemental measure of the Company's operating performance and is useful to investors, analysts and other parties in the evaluation of REITs and their ability to provide dividends to stockholders. Dividends are one of the principal reasons investors invest in REITs. To maintain REIT status, REITs are required to distribute at least 90% of their REIT-taxable income. The Company considers distributable earnings in determining its quarterly dividend and believes that, over time, distributable earnings is a useful indicator of the Company's dividends per share.

The Company defines distributable earnings as net income (loss) attributable to common stockholders computed in accordance with GAAP, adjusted for accounting items such as depreciation and amortization (adjusted for unconsolidated joint ventures), non-cash stock-based compensation expense, income from MSRs, amortization and write-offs of MSRs, gains/losses on derivative instruments primarily associated with Private Label loans not yet sold and securitized, changes in fair value of GSE-related derivatives that temporarily flow through earnings, deferred tax provision (benefit), CECL provisions for credit losses (adjusted for realized losses as described below) and gains/losses on the receipt of real estate from the settlement of loans (prior to the sale of the real estate). The Company also adds back one-time charges such as acquisition costs and one-time gains/losses on the early extinguishment of debt and redemption of preferred stock.

The Company reduces distributable earnings for realized losses in the period management determines that a loan is deemed nonrecoverable in whole or in part. Loans are deemed nonrecoverable upon the earlier of: (1) when the loan receivable is settled (i.e., when the loan is repaid, or in the case of foreclosure, when the underlying asset is sold); or (2) when management determines that it is nearly certain that all amounts due will not be collected. The realized loss amount is equal to the difference between the cash received, or expected to be received, and the book value of the asset.

Distributable earnings is not intended to be an indication of the Company's cash flows from operating activities (determined in accordance with GAAP) or a measure of its liquidity, nor is it entirely indicative of funding the Company's cash needs, including its ability to make cash distributions. The Company's calculation of distributable earnings may be different from the calculations used by other companies and, therefore, comparability may be limited.


Oorspronkelijke tekst
Deze vertaling beoordelen
Je feedback wordt gebruikt om Google Translate te verbeteren