Arbor Realty Trust · NYSE:ABR
Arbor Realty Trust — Q4 2022 Earnings Presentation
16 slides from Arbor Realty Trust's earnings presentation, Feb 17, 2023
Slide 1: Arbor Realty Trust Investor Presentation
ARBOR REALTY TRUST INVESTOR PRESENTATION CONFIDENTIAL February 2023
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, including information about possible, anticipated or assumed future results of our busin
Slide 3: Arbor Realty Trust: Company Overview and Recent Highlights
Arbor Realty Trust Company Overview Recent Highlights n Internally managed multifamily focused REIT with a n Generated distributable earnings of $0.60 per share in premium operating platform creating many diverse 4Q22, which is $0.20 in excess of our current dividend, income streams generating stron
Slide 4: Differentiated Business Platform
Differentiated Business Platform Diverse business model offers several strategic advantages n Unique business model with multiple products that produce many diverse long-dated income streams from a single investment, allowing us to generate strong earnings in all cycles Ø Primarily focused on multif
Slide 5: Highly Diversified Originations Platform
Highly Diversified Originations Platform 2022 Originations 2021 Originations ~$10.9B ~$16.1B $9.7B $6.2B $4.5B $4.8B $1.6B $0.2B 60% 56% 2% 42% 10% 30% GSE/Agency APL Balance Sheet Average Duration: GSE/Agency & APL – Predominately 10-year fixed-rate loans; includes long-dated prepayment protected s
Slide 6: Balance Sheet Loan Portfolio Composition
Balance Sheet Loan Portfolio Composition Primary focus on stable multifamily, senior loans Portfolio Overview Generates strong leveraged returns Total Portfolio $14.5B As of: 12/31/2022 Geographically diversified Average Loan Size $19.5M W/A Loan-to-Value 76% Balance Sheet business drives GSE/Ag
Slide 7: Leading Nationwide Origination and Servicing Platform
Leading Nationwide Origination and Servicing Platform n ~$56B of GSE/Agency originations since inception in 1995 n ~$28B servicing portfolio, 100% focused on multifamily n Highly scalable and difficult to replicate platform n Generates significant prepayment protection income n Focus on small balanc
Slide 8: Annuity Based Business Model Drives Diversified Income Streams
Annuity Based Business Model Drives Diversified Income Streams Significant Our diversified Growth income streams provide ainstrong our baseline Diversified, Long-predictable earnings of high-quality Dated Income Streams 1 1 Other Diversified Platform Significant Long-dated, Predictable Annual Cash F
Slide 9: Consistent Dividend Growth with Leading Payout Ratio
Consistent Dividend Growth with Leading Payout Ratio n Increased our dividend 3 times in 2022 and in 10 of the last 11 quarters n Lowest dividend payout ratio in the industry n 10 straight years of dividend growth, putting us in an elite class of companies $0.60 120% $0.55 $0.50 100% Per Share Amoun
Slide 10: Industry Leading Securitization Platform
Industry Leading Securitization Platform Platform Highlights Ø Extensive in-house securitization experience closing 27 securitizations totaling $16.4 billion in assets Ø History of strong performance and execution demonstrating the strength of our platform Ø Completed our first securitization vehicl
Slide 11: Diversified Platform with Significant Opportunities
Diversified Platform with Significant Opportunities n Best in class balance sheet loan origination business driven by our proprietary relationships and expertise in structured loans Structured n Generated levered returns of over 16% in 4Q22, via our low-cost CLO structures Loan n Balance sheet runof
Slide 12: Highly Diversified Capital Structure
Highly Diversified Capital Structure Capital Structure ($ in M) Total Enterprise Value = $16,373 n Extensive experience with CRE CLOs n 8 outstanding nonrecourse CLOs n Match-funded with locked-in spreads Collateralized 7,649 n Wtd. average advance rate of 81.5%, with 2- to 4-year replacement period
Slide 13: Financial Performance
Financial Performance (Amounts in 000's, except per share amounts) Year Ended 2018 2019 2020 2021 2022 Net interest income 103,171 129,541 170,249 254,082 390,784 Servicing revenue 119,214 125,647 120,365 166,170 196,570 Gain on sale, incl. fee based services, net 70,001 65,652 94,606 123,037 72,904
Slide 14: Appendix
APPENDIX iy ARBOR ARBOR REALTY TRUST, INC.
Slide 15: Leading Asset Management Platform
Leading Asset Management Platform ~60-person asset management function with strong credit history and extensive experience in mitigating risk and modifying and working out assets through all cycles, led by a senior executive team with over 30 years of industry experience • Proactive, hands-on approa
Slide 16: Best-in-Class, Highly Aligned Management Team
Best-in-Class, Highly Aligned Management Team Best-in-class ✓ Internalized, highly aligned management team with ✓ Industry-leading expertise with deep-rooted ✓ Deep bench of talented employees ✓ underwriting and significant ownership relationships across origination capabilities commercial real esta