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

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 [phone] for domestic callers and [phone] 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 [phone] for domestic callers and [phone] 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 [e-mail]

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.