Arbor Realty Trust · NYSE:ABR
Arbor Realty Trust — Investor Presentation (May 2018)
20 slides from Arbor Realty Trust's investor presentation, May 2018
Slide 1: Arbor Realty Trust Investor Presentation
ARBOR REALTY TRUST INVESTOR PRESENTATION May 2018
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Certain items in this presentation 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 subj
Slide 3: Overview of Our Franchise – Business Platforms
OVERVIEW OF OUR FRANCHISE – BUSINESS PLATFORMS Senior management team with 30+ years of successful operating capability in the financial services industry that is fully aligned with over 30% ownership Balance Sheet Loan Origination & Structured GSE (Agency) Loan Origination and Servicing Platform In
Slide 4: Significant Growth Drivers
SIGNIFICANT GROWTH DRIVERS Significant earnings growth generating an annual dividend run rate of $1.00 per share, reflecting a 67% increase over the past two years (six increases over that time) Strong origination platform with record originations in 2017 of $4.5 billion from the agency business
Slide 5: Substantial Value Play
SUBSTANTIAL VALUE PLAY ABR’s stock is extremely undervalued based on a number of factors: • Dividend yield should be better than our pre-acquisition yield and more in line with our peers (currently trading at a yield of 10.8%1) • Pre-acquisition ~9%...................................................
Slide 6: Key Performance Indicators
KEY PERFORMANCE INDICATORS Significant growth in earnings & dividends Market Cap and Equity Growth $ in millions $798 $782 Increased stability & diversity of earnings Larger, more efficient company $475 Greater access to capital $375 Combination Current Core AFFO Dividend Run Rate Stock Price Stockh
Slide 7: Diversification & Duration of Income Sources
DIVERSIFICATION & DURATION OF INCOME SOURCES 2015 Income Sources 2017 Income Sources Residential Net interest Structured investment income on transactions 7% loan and equity portfolio kickers 28% 13% 7-year 2 –25 – year 5 year Over half of duration duration duration REO operations which is 8-year St
Slide 8: Leading Nationwide Origination and Servicing Platform
LEADING NATIONWIDE ORIGINATION AND SERVICING PLATFORM Total Originations – GSE (Agency) Business ($ in millions) Overview of Origination Platform Operating since 1995, with originations of nearly $29 Fannie Mae Freddie Mac Conduit FHA billion since inception $17.3 billion in aggregate originatio
Slide 9: Leading Nationwide Origination and Servicing Platform
LEADING NATIONWIDE ORIGINATION AND SERVICING PLATFORM Servicing Platform – Servicing Portfolio Growth ($ in millions) Overview of Servicing Platform ~$16.7 billion servicing portfolio at March 31, 2018 Fannie Mae Freddie Mac FHA 21% four-year annual growth rate 20% growth in 2017 $16,690 $16,2
Slide 10: Balance Sheet Loan Portfolio Composition
BALANCE SHEET LOAN PORTFOLIO COMPOSITION Composition by Loan Type and Asset Type ($ in millions) As of 3/31/18 As of 3/31/18 Other Preferred Mezzanine $93 Hotel Self Storage Equity $85 Office $91 $302 $189 7% 3% 3% $108 11% 3% 4% Land 5% Bridge $133 Multifamily $2,502 $2,049 90% 74% Portfolio Totali
Slide 11: Capital Structure
CAPITAL STRUCTURE Capital Structure ($ in millions) 1 $3,240 CLO V 268 Extensive experience with CRE CLOs Match-funded with locked-in spreads CLO VI 250 Non-recourse, 76% advance rate with long replenishment features $1.4 Target range of 65% to 75% of total financing (excluding TruPS) billio
Slide 12: Financial Performance
FINANCIAL PERFORMANCE (Amounts in 000s except per share amounts) Year Ended December 31, 3 Months Ended 2015 2016 2017 March 31, 2018 Net interest income $59,185 $53,505 $67,189 $20,615 Servicing revenue - 30,759 92,244 26,222 Gain on sale, including fee based services, net - 24,594 72,799 18,193 RE
Slide 13: Appendix
APPENDIX V uy ARBOR
Slide 14: Arbor's Background and History
ARBOR’S BACKGROUND AND HISTORY Arbor National Mortgage (a residential ACM receives Freddie Mac Seller/ 2004 mortgage company) is founded by Ivan Arbor Realty Trust (NYSE: ABR) goes Servicer designation and becomes one 1983 Kaufman. The company ultimately public completing a $135 million IPO of three
Slide 15: Ivan Kaufman
IVAN KAUFMAN Ivan Kaufman has extensive experience operating a diverse array of real estate finance companies that span four decades and numerous real estate cycles. He is currently the Founder, Chairman, President and CEO of Arbor Realty Trust (NYSE: ABR), a leading multifamily and commercial real
Slide 16: Paul Elenio
PAUL ELENIO As Chief Financial Officer, Mr. Elenio is responsible for overseeing all aspects of Arbor’s financial operations. This includes financial reporting, tax planning, budgeting and the appropriate utilization of Arbor’s capital. He is also in charge of Investor Relations for Arbor. Mr. Eleni
Slide 17: Gene Kilgore
GENE KILGORE Gene Kilgore joined Arbor in October 2004 and is responsible for overseeing the development, marketing and implementation of Arbor’s securitization platform. He has a unique and strategic expertise and brings a wealth of professional experience from his work in the structured finance an
Slide 18: Fred Weber
FRED WEBER With more than 25 years of experience, Mr. Weber has earned a distinguished reputation for professional excellence and leadership in the mortgage banking and commercial real estate industries. He has extensive real estate finance and acquisition experience as well as substantial expertise
Slide 19: John G. Caulfield
JOHN G. CAULFIELD John Caulfield is Arbor’s Chief Operating Officer, Agency Lending. Mr. Caulfield has extensive experience in the mortgage financing industry and a tenured track record of more than three decades with Arbor and its family of companies. As Arbor’s COO, he has helped develop a unique
Slide 20: arbor.com 800.ARBOR.10
@®) arbor.com @) 800.ARBOR.10 ivy ARBOR ARBOR REALTY TRUST, INC.
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