- Arbor Realty Trust Q1 Earnings Call Highlights
May 9, 2026 · marketbeat.com
Arbor Realty Trust NYSE: ABR executives said the company is making progress reducing troubled assets but warned that higher long-term rates are extending the timeline for resolutions and weighing on earnings.
- Arbor Realty Trust, Inc. Q1 2026 Earnings Call Summary
May 8, 2026
Arbor Realty Trust, Inc. Q1 2026 Earnings Call Summary - Moby
Strategic Focus and Performance Attribution
Management believes the company has reached the bottom of the cycle and has successfully ring-fenced the majority of nonperforming and subperforming loans. The recent 50 basis point increase in 5-year and 10-year rates has extended the anticipated timetable for resolving legacy assets and reduced sector liquidity. Nonperforming assets, including delinquent loans and REO, were reduced by approximately $100 million (9%) during the quarter through $200 million in resolutions. A 'pay-and-accrue' modification strategy is being used for $3 billion of the legacy portfolio to reset rates to market spreads and capture back interest while improving lender terms. The agency business experienced a seasonally slow start, further impacted by rate volatility, though margins remained healthy due to a shift toward smaller Fannie Mae deals. Single-family rental (SFR) originations were temporarily frozen due to legislative uncertainty regarding build-to-rent provisions, but momentum has returned as prohibitions are expected to be removed. Management is focused on resolving delinquencies and reducing non-interest-earning assets to increase their income run rate and reduce the drag on earnings.
Operational Outlook and Guidance Assumptions
The quarterly dividend was reset to $0.17 per share to align with distributable earnings expectations for the remainder of 2026, with growth potential cited for 2027. Management expects the second and third quarters of 2026 to represent the low watermark for earnings, with the second quarter estimated at $0.15 per share due to approximately $0.02 of temporary financing inefficiencies, while the dividend has been reset to $0.17 per share. The company aims to reduce REO assets to between $200 million and $300 million by the end of 2026, despite expecting to take back an additional $100 million in assets over the next few quarters. Realized losses are projected to range between $15 million and $25 million per quarter for the balance of the year as the company accelerates asset dispositions. Construction lending is targeted to reach between $750 million and $1 billion in production for 2026, supported by a growing pipeline of experienced developers.
Risk Factors and Structural Adjustments
A $0.02 per share earnings drag is expected in Q2 due to interest overlaps from a CLO ramp feature and the timing of repo line draws to pay off unsecured notes. Management recorded $12 million in OREO impairments and $9 million in specific reserves this quarter to reflect current price discovery from engaged brokers. Geographic concentration in Texas, Florida, and Atlanta has faced headwinds from eviction delays and fraud, though management reports these dynamics are now stabilizing. The company is intentionally shifting toward larger loan sizes and higher-quality sponsors in the bridge lending space to ensure more intensive management oversight per asset.
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Q&A Session Highlights
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Impact of rising rates on new delinquencies and credit outlook
Management adjusted the dividend proactively because they believe the current rate environment will slow the pace of resolutions and limit sector liquidity. They are anticipating continued reserves through the end of the year to reflect this more difficult environment.
Strategy for REO asset disposal and capital expenditure
The company is shifting toward accelerated disposals at current marks rather than long-term stabilization for the bulk of the REO portfolio. While some assets receive CapEx to improve marketability, management is leaning toward quicker resolutions to reduce the earnings drag.
High leverage financing for REO sales to third parties
Management confirmed they may provide high-leverage bridge loans (e.g., 98% LTV) to facilitate REO sales, but only with significant capital commitments and personal guarantees from known sponsors. This structure is intended to create a seamless transition while protecting the recovery value of the asset.
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- Arbor Realty Trust (ABR) Q1 Earnings: How Key Metrics Compare to Wall Street Estimates
May 8, 2026
Arbor Realty Trust (ABR) reported $235.05 million in revenue for the quarter ended March 2026, representing a year-over-year decline of 2.3%. EPS of $0.07 for the same period compares to $0.28 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $234 million, representing a surprise of +0.45%. The company delivered an EPS surprise of -57.13%, with the consensus EPS estimate being $0.16.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Arbor Realty Trust performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net interest income: $59.85 million versus $52.62 million estimated by three analysts on average. Interest income: $235.05 million versus $234 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -2.4% change. Other revenue- Gain on sales, including fee-based services, net: $12.51 million versus $10.31 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -2.2% change. Other revenue- Property operating income: $8.06 million versus the three-analyst average estimate of $6.2 million. The reported number represents a year-over-year change of +83.7%. Other revenue- Servicing revenue, net: $25.74 million compared to the $26.94 million average estimate based on three analysts. The reported number represents a change of +0.5% year over year. Total Other Revenue: $57.55 million compared to the $53.35 million average estimate based on three analysts. Other revenue- Mortgage servicing rights: $9.66 million versus the three-analyst average estimate of $8.7 million. The reported number represents a year-over-year change of +18.8%. Net Earnings Per Share (Diluted): $0.00 versus the three-analyst average estimate of $0.04.
View all Key Company Metrics for Arbor Realty Trust here>>>
Shares of Arbor Realty Trust have returned +8.5% over the past month versus the Zacks S&P 500 composite's +11% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Story Continues
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- Arbor Realty Trust (ABR) Q1 Earnings Miss Estimates
May 8, 2026
Arbor Realty Trust (ABR) came out with quarterly earnings of $0.07 per share, missing the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -57.13%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.21 per share when it actually produced earnings of $0.19, delivering a surprise of -9.52%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Arbor Realty Trust, which belongs to the Zacks REIT and Equity Trust industry, posted revenues of $235.05 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.45%. This compares to year-ago revenues of $240.69 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Arbor Realty Trust shares have added about 5.3% since the beginning of the year versus the S&P 500's gain of 7.2%.
What's Next for Arbor Realty Trust?
While Arbor Realty Trust has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Arbor Realty Trust was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.19 on $235.98 million in revenues for the coming quarter and $0.83 on $948.74 million in revenues for the current fiscal year.
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Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust is currently in the bottom 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the broader Zacks Finance sector, Sharplink Inc (SBET), has yet to report results for the quarter ended March 2026. The results are expected to be released on May 11.
This company is expected to post quarterly earnings of $0.02 per share in its upcoming report, which represents a year-over-year change of +101.2%. The consensus EPS estimate for the quarter has been revised 20% higher over the last 30 days to the current level.
Sharplink Inc's revenues are expected to be $14.35 million, up 1839.2% from the year-ago quarter.
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- Arbor Realty Trust, Inc. (ABR) Q1 2026 Earnings Call Transcript
May 8, 2026 · seekingalpha.com
Arbor Realty Trust, Inc. (ABR) Q1 2026 Earnings Call Transcript
- Arbor Realty Trust declares $0.17 dividend
May 8, 2026
* Arbor Realty Trust (ABR [https://seekingalpha.com/symbol/ABR]) declares $0.17/share quarterly dividend [https://seekingalpha.com/pr/20507689-arbor-realty-trust-reports-first-quarter-2026-results-and-declares-dividend-of-0_17-per-share].
* Forward yield [https://seekingalpha.com/symbol/ABR/dividends/yield?source=news_bullet] 8.32%
* Payable June 5; for shareholders of record May 22; ex-div May 22.
* See ABR Dividend Scorecard, Yield Chart, & Dividend Growth. [https://seekingalpha.com/symbol/ABR/dividends?source=news_bullet]
MORE ON ARBOR REALTY TRUST
* Arbor Realty Trust Not Quite A Buy Yet, But Loan Growth Is Robust [https://seekingalpha.com/article/4890910-arbor-realty-trust-not-quite-a-buy-yet-but-loan-growth-is-robust]
* Arbor Series F Preferreds: The Overlooked Reset Trade [https://seekingalpha.com/article/4882434-arbor-series-f-preferreds-the-overlooked-reset-trade]
* Arbor Realty: Market Pricing Temporary Pain As Permanent Damage [https://seekingalpha.com/article/4881574-arbor-realty-market-pricing-temporary-pain-as-permanent-damage]
* Arbor Realty Trust Q1 2026 Earnings Preview [https://seekingalpha.com/news/4588594-arbor-realty-trust-q1-2026-earnings-preview]
* Most and least shorted small-cap financial stocks at April's end [https://seekingalpha.com/news/4584195-most-and-least-shorted-small-cap-financial-stocks-at-april-end]
- Arbor Realty Trust DEPS of $0.18 beats by $0.07, net interest income of $59.85M beats by $6.23M
May 8, 2026
* Arbor Realty Trust press release [https://seekingalpha.com/pr/20507689-arbor-realty-trust-reports-first-quarter-2026-results-and-declares-dividend-of-0_17-per-share] (ABR [https://seekingalpha.com/symbol/ABR]): Q1 DEPS of $0.18 beats by $0.07.
* Net interest income of $59.85M (-20.7% Y/Y) beats by $6.23M.
MORE ON ARBOR REALTY TRUST
* Arbor Realty Trust Not Quite A Buy Yet, But Loan Growth Is Robust [https://seekingalpha.com/article/4890910-arbor-realty-trust-not-quite-a-buy-yet-but-loan-growth-is-robust]
* Arbor Series F Preferreds: The Overlooked Reset Trade [https://seekingalpha.com/article/4882434-arbor-series-f-preferreds-the-overlooked-reset-trade]
* Arbor Realty: Market Pricing Temporary Pain As Permanent Damage [https://seekingalpha.com/article/4881574-arbor-realty-market-pricing-temporary-pain-as-permanent-damage]
* Arbor Realty Trust Q1 2026 Earnings Preview [https://seekingalpha.com/news/4588594-arbor-realty-trust-q1-2026-earnings-preview]
* Most and least shorted small-cap financial stocks at April's end [https://seekingalpha.com/news/4584195-most-and-least-shorted-small-cap-financial-stocks-at-april-end]
- Arbor Realty Trust (NYSE:ABR) Surprises With Q1 CY2026 Sales
May 8, 2026
Real estate investment trust Arbor Realty Trust (NYSE:ABR) reported Q1 CY2026 results beating Wall Street’s revenue expectations , but sales fell by 12.5% year on year to $117.4 million. Its GAAP loss of $0 per share was significantly below analysts’ consensus estimates.
Is now the time to buy Arbor Realty Trust? Find out in our full research report.
Arbor Realty Trust (ABR) Q1 CY2026 Highlights:
Net Interest Income: $59.85 million vs analyst estimates of $53.62 million (8.1% year-on-year decline, 11.6% beat) Revenue: $117.4 million vs analyst estimates of $113.4 million (12.5% year-on-year decline, 3.5% beat) EPS (GAAP): $0 vs analyst estimates of $0.04 (significant miss) Market Capitalization: $1.57 billion
Company Overview
With roots dating back to 2003 and a focus on the stability of multifamily housing, Arbor Realty Trust (NYSE:ABR) is a specialized lender that provides financing solutions for multifamily and commercial real estate while also originating and servicing government-backed mortgage loans.
Sales Growth
Net interest income and and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities. Arbor Realty Trust’s demand was weak over the last five years as its revenue fell at a 1.1% annual rate. This wasn’t a great result and is a sign of poor business quality.Arbor Realty Trust Quarterly Revenue
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Arbor Realty Trust’s recent performance shows its demand remained suppressed as its revenue has declined by 16% annually over the last two years.Arbor Realty Trust Year-On-Year Revenue Growth
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Arbor Realty Trust’s revenue fell by 12.5% year on year to $117.4 million but beat Wall Street’s estimates by 3.5%.
Net interest income made up 54.5% of the company’s total revenue during the last five years, meaning Arbor Realty Trust’s growth drivers strike a balance between lending and non-lending activities.Arbor Realty Trust Quarterly Net Interest Income as % of Revenue
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
Net interest income commands greater market attention due to its reliability and consistency, whereas non-interest income is often seen as lower-quality revenue that lacks the same dependable characteristics.
Story Continues
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Key Takeaways from Arbor Realty Trust’s Q1 Results
We were impressed by how significantly Arbor Realty Trust blew past analysts’ net interest income expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. On the other hand, its EPS missed. Overall, this print had some key positives. Investors were likely hoping for more, and shares traded down 2.9% to $7.94 immediately after reporting.
So should you invest in Arbor Realty Trust right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free.
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- Arbor Realty Trust Reports First Quarter 2026 Results and Declares Dividend of $0.17 per Share
May 8, 2026
Arbor Realty Trust
Company Highlights:
GAAP net income of $0.6 million, or $0.00 per diluted common share Distributable earnings1 of $0.07, or $0.18 per diluted common share, excluding $22.9 million of net realized losses from the resolution of certain legacy assets Declares cash dividend on common stock of $0.17 per share Servicing portfolio of ~$36.31 billion, agency loan originations of $707.6 million Structured loan portfolio of ~$12.00 billion, originations of $767.6 million and runoff of $861.0 million Closed a $762.6 million collateralized securitization vehicle with enhanced leverage, generating ~$35 million of additional liquidity Purchased $30.7 million of stock at an average price of $7.46 per share, or 66% of book value
UNIONDALE, N.Y., May 08, 2026 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE: ABR), today announced financial results for the first quarter ended March 31, 2026. Arbor reported net income for the quarter of $0.6 million, or $0.00 per diluted common share, compared to net income of $30.4 million, or $0.16 per diluted common share for the quarter ended March 31, 2025. Distributable earnings for the quarter was $14.4 million, or $0.07 per diluted common share, compared to $57.3 million, or $0.28 per diluted common share for the quarter ended March 31, 2025.
Agency Business
Loan Origination Platform
Agency Loan Volume (in thousands) Quarter Ended March 31, 2026 December 31, 2025 Fannie Mae $ 570,815 $ 1,068,889 Freddie Mac 91,255 493,294 FHA 45,507 62,104 SFR-Fixed Rate — 3,857 Total Originations $ 707,577 $ 1,628,144 Total Loan Sales $ 670,972 $ 1,539,801 Total Loan Commitments $ 733,860 $ 1,602,180
For the quarter ended March 31, 2026, the Agency Business generated revenues of $57.9 million, compared to $81.0 million for the fourth quarter of 2025. Gain on sales, including fee-based services, net was $12.5 million for the quarter, reflecting a margin of 1.86%, compared to $20.9 million and 1.36% for the fourth quarter of 2025. Income from mortgage servicing rights was $9.7 million for the quarter, reflecting a rate of 1.32% as a percentage of loan commitments, compared to $19.9 million and 1.24% for the fourth quarter of 2025.
At March 31, 2026, loans held-for-sale was $443.2 million, with financing associated with these loans totaling $424.9 million.
Fee-Based Servicing Portfolio
The Company’s fee-based servicing portfolio totaled $36.31 billion at March 31, 2026. Servicing revenue, net was $25.7 million for the quarter and consisted of servicing revenue of $44.0 million, net of amortization of mortgage servicing rights totaling $18.3 million.
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Fee-Based Servicing Portfolio ($ in thousands) March 31, 2026 December 31, 2025 UPB Wtd. Avg. Fee (bps) Wtd. Avg. Life (years) UPB Wtd. Avg. Fee (bps) Wtd. Avg. Life (years) Fannie Mae $ 24,261,724 44.4 5.4 $ 24,085,960 44.7 5.5 Freddie Mac 7,368,979 18.2 5.7 7,455,088 18.3 5.9 Private Label 2,554,209 18.7 4.3 2,558,048 18.7 4.5 FHA 1,584,644 13.8 19.0 1,549,483 13.9 19.1 Bridge 277,523 10.4 2.0 277,738 10.4 2.2 SFR-Fixed Rate 264,008 20.0 3.8 277,490 20.0 4.0 Total $ 36,311,087 35.5 5.9 $ 36,203,807 35.6 6.1
Loans sold under the Fannie Mae program contain an obligation to partially guarantee the performance of the loan (“loss-sharing obligations”) and includes $36.1 million for the fair value of the guarantee obligation undertaken at March 31, 2026. The Company recorded a $4.1 million net provision for loss sharing associated with CECL for the first quarter of 2026. At March 31, 2026, the Company’s total CECL allowance for loss-sharing obligations was $70.7 million, representing 0.29% of the Fannie Mae servicing portfolio.
Structured Business
Portfolio and Investment Activity
Structured Portfolio Activity ($ in thousands) Quarter Ended March 31, 2026 December 31, 2025 UPB % UPB % Bridge: Multifamily $ 405,600 53 % $ 336,945 30 % SFR 321,122 42 % 668,059 61 % 726,722 95 % 1,005,004 91 % Construction - Multifamily 40,870 5 % 61,206 6 % Mezzanine/Preferred Equity — — % 36,922 3 % Total Originations $ 767,592 100 % $ 1,103,132 100 % Number of Loans Originated 6 29 Commitments: Construction - Multifamily $ 113,070 $ 62,000 SFR 53,000 245,750 Total Commitments $ 166,070 $ 307,750 Loan Runoff $ 861,033 $ 537,519
Structured Portfolio ($ in thousands) March 31, 2026 December 31, 2025 UPB % UPB % Bridge: Multifamily $ 7,897,122 66 % $ 8,143,114 67 % SFR 3,265,802 27 % 3,184,910 26 % Other 46,519 <1 % 43,734 <1 % 11,209,443 94 % 11,371,758 94 % Mezzanine/Preferred Equity 497,961 4 % 492,330 4 % Construction - Multifamily 289,889 2 % 249,019 2 % Total Portfolio $ 11,997,293 100 % $ 12,113,107 100 %
At March 31, 2026, the loan and investment portfolio’s unpaid principal balance ("UPB"), excluding loan loss reserves, was $12.00 billion, with a weighted average interest rate of 6.49%, compared to $12.11 billion and 6.49% at December 31, 2025. Including certain fees earned and costs associated with the loan and investment portfolio, the weighted average interest rate was 7.03% at March 31, 2026, compared to 7.08% at December 31, 2025.
The average balance of the Company’s loan and investment portfolio during the first quarter of 2026, excluding loan loss reserves, was $12.04 billion with a weighted average yield of 7.50%, compared to $11.84 billion and 7.38% for the fourth quarter of 2025. The increase in the weighted average yield was primarily due to a net decline in loan delinquencies in the first quarter of 2026, partially offset by a decrease in the average SOFR rate in the first quarter of 2026.
During the first quarter of 2026, the Company recorded a $3.6 million net provision for loan losses associated with CECL. At March 31, 2026, the Company’s total allowance for loan losses was $131.2 million. The Company had nineteen non-performing loans with a UPB of $481.5 million, before related loan loss reserves of $16.1 million, compared to twenty-six non-performing loans with a UPB of $569.1 million, before loan loss reserves of $10.2 million at December 31, 2025. In addition, the Company recorded $12.5 million of impairments on six real estate owned properties.
At March 31, 2026, the Company had no loans that were less than 60 days past due classified as non-accrual, compared to three loans with a total UPB of $48.3 million at December 31, 2025.
During the first quarter of 2026, the Company modified 13 loans to borrowers experiencing financial difficulty with a total UPB of $478.8 million, the majority of which had borrowers investing additional capital to recapitalize their deals. In addition, of the total modified loans for the first quarter, $115.4 million were non-performing at December 31, 2025, and are now current in accordance with their modified terms.
The Company foreclosed on three loans with a UPB totaling $58.9 million, selling one of these foreclosed properties and one existing REO property for $33.0 million.
Financing Activity
The balance of debt that finances the Company’s loan and investment portfolio at March 31, 2026 was $10.71 billion with a weighted average interest rate including fees of 6.40%, as compared to $10.46 billion and a rate of 6.45% at December 31, 2025.
The average balance of debt that finances the Company’s loan and investment portfolio for the first quarter of 2026 was $10.38 billion, as compared to $10.09 billion for the fourth quarter of 2025. The average cost of borrowings for the first quarter of 2026 was 6.67%, compared to 6.81% for the fourth quarter of 2025. The decrease in average cost was primarily due to a decrease in the average SOFR rate in the first quarter of 2026, partially offset by the issuance of $400 million of senior unsecured notes in December 2025.
The Company completed a $762.6 million collateralized securitization secured initially by a portfolio of real estate related assets and cash. Investment grade-rated notes totaling $674.0 million were issued, and the Company retained subordinate interests in the issuing vehicle of $88.6 million. The facility has a two and a half year asset replenishment period and an initial weighted average interest rate of 1.73% over term SOFR, excluding fees and transaction costs.
Dividend
The Company announced today that its Board of Directors has declared a quarterly cash dividend of $0.17 per share of common stock for the quarter ended March 31, 2026. The dividend is payable on June 5, 2026 to common stockholders of record on May 22, 2026.
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) 267-6316 for domestic callers and (203) 518-9783 for international callers. Please use participant passcode ABRQ126 when prompted by the operator.
A telephonic replay of the call will be available until May 15, 2026. The replay dial-in numbers are (800) 938-1603 for domestic callers and (402) 220-1549 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, 2025 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
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 March 31, 2026 2025 Interest income $ 235,047 $ 240,693 Interest expense 175,202 165,251 Net interest income 59,845 75,442 Other revenue: Gain on sales, including fee-based services, net 12,505 12,781 Mortgage servicing rights 9,660 8,131 Servicing revenue, net 25,740 25,603 Property operating income 8,060 4,387 (Loss) gain on derivative instruments, net (493 ) 3,400 Other income, net 2,074 4,419 Total other revenue 57,546 58,721 Other expenses: Employee compensation and benefits 47,684 46,036 Selling and administrative 16,953 16,312 Property operating expenses 11,964 3,474 Depreciation and amortization 7,104 3,744 Impairment loss on real estate owned 12,500 — Provision for loss sharing, net 4,537 1,786 Provision for credit losses, net 5,816 9,075 Total other expenses 106,558 80,427 Income before extinguishment of debt, loss on real estate, income (loss) from equity affiliates and income taxes 10,833 53,736 Loss on extinguishment of debt — (2,319 ) Loss on real estate (2,136 ) (2,810 ) Income (loss) from equity affiliates 4,411 (1,634 ) Provision for income taxes (2,085 ) (3,591 ) Net income 11,023 43,382 Preferred stock dividends 10,342 10,342 Net income attributable to noncontrolling interest 52 2,602 Net income attributable to common stockholders $ 629 $ 30,438 Basic earnings per common share $ 0.00 $ 0.16 Diluted earnings per common share $ 0.00 $ 0.16 Weighted average shares outstanding: Basic 194,194,906 190,060,776 Diluted 211,735,731 206,862,320 Dividends declared per common share $ 0.30 $ 0.43
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
($ in thousands—except share and per share data) March 31, 2026 (Unaudited) December 31, 2025 Assets: Cash and cash equivalents $ 407,126 $ 482,875 Restricted cash 393,529 67,347 Loans and investments, net (allowance for credit losses of $131,223 and $145,971) 11,835,381 11,934,248 Loans held-for-sale, net 443,218 409,081 Capitalized mortgage servicing rights, net 331,929 340,842 Securities held-to-maturity, net (allowance for credit losses of $15,125 and $17,013) 155,469 156,087 Investments in equity affiliates 56,747 57,966 Real estate owned, net 520,766 498,938 Due from related party 35,251 6,534 Goodwill and other intangible assets 86,161 86,553 Other assets 426,908 454,432 Total assets $ 14,692,485 $ 14,494,903 Liabilities and Equity: Credit and repurchase facilities $ 4,967,952 $ 5,149,651 Securitized debt 3,931,468 3,468,258 Senior unsecured notes 2,030,947 2,029,078 Junior subordinated notes to subsidiary trust issuing preferred securities 145,707 145,497 Notes payable - real estate owned 253,189 222,965 Due to related party 1,758 501 Due to borrowers 29,992 33,451 Allowance for loss-sharing obligations 106,773 97,579 Other liabilities 245,649 280,770 Total liabilities 11,713,435 11,427,750 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: 633,683 633,683 Special voting preferred shares - 16,170,218 and 16,169,858 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 - 192,370,465 and 195,491,855 shares issued and outstanding 1,924 1,955 Additional paid-in capital 2,428,500 2,454,312 Accumulated deficit (194,058 ) (136,597 ) Total Arbor Realty Trust, Inc. stockholders' equity 2,870,049 2,953,353 Noncontrolling interest 109,001 113,800 Total equity 2,979,050 3,067,153 Total liabilities and equity $ 14,692,485 $ 14,494,903
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Statement of Income Segment Information - (Unaudited)
(in thousands) Quarter Ended March 31, 2026 Structured
Business Agency
Business Other(1) Consolidated Interest income $ 224,394 $ 10,653 $ — $ 235,047 Interest expense 170,814 4,388 — 175,202 Net interest income 53,580 6,265 — 59,845 Other revenue: Gain on sales, including fee-based services, net — 12,505 — 12,505 Mortgage servicing rights — 9,660 — 9,660 Servicing revenue — 44,033 — 44,033 Amortization of MSRs — (18,293 ) — (18,293 ) Property operating income 8,060 — — 8,060 Loss on derivative instruments, net — (493 ) — (493 ) Other income (loss), net 2,223 (149 ) — 2,074 Total other revenue 10,283 47,263 — 57,546 Other expenses: Employee compensation and benefits 18,862 28,822 — 47,684 Selling and administrative 9,150 7,803 — 16,953 Property operating expenses 11,964 — — 11,964 Depreciation and amortization 6,713 391 — 7,104 Impairment loss on real estate owned 12,500 — — 12,500 Provision for loss sharing, net — 4,537 — 4,537 Provision for credit losses, net 3,644 2,172 — 5,816 Total other expenses 62,833 43,725 — 106,558 Income before loss on real estate, income from equity affiliates and income taxes 1,030 9,803 — 10,833 Loss on real estate (2,136 ) — — (2,136 ) Income from equity affiliates 4,411 — — 4,411 Benefit from (provision for) income taxes 83 (2,168 ) — (2,085 ) Net income 3,388 7,635 — 11,023 Preferred stock dividends 10,342 — — 10,342 Net income attributable to noncontrolling interest — — 52 52 Net (loss) income attributable to common stockholders $ (6,954 ) $ 7,635 $ (52 ) $ 629
(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) March 31, 2026 Structured Business Agency Business Consolidated Assets: Cash and cash equivalents $ 89,285 $ 317,841 $ 407,126 Restricted cash 359,569 33,960 393,529 Loans and investments, net 11,835,381 — 11,835,381 Loans held-for-sale, net — 443,218 443,218 Capitalized mortgage servicing rights, net — 331,929 331,929 Securities held-to-maturity, net — 155,469 155,469 Investments in equity affiliates 56,747 — 56,747 Real estate owned, net 520,766 — 520,766 Goodwill and other intangible assets 12,500 73,661 86,161 Other assets and due from related party 387,609 74,550 462,159 Total assets $ 13,261,857 $ 1,430,628 $ 14,692,485 Liabilities: Debt obligations $ 10,904,398 $ 424,865 $ 11,329,263 Allowance for loss-sharing obligations — 106,773 106,773 Other liabilities and due to related parties 212,622 64,777 277,399 Total liabilities $ 11,117,020 $ 596,415 $ 11,713,435
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 March 31, 2026 2025 Net income attributable to common stockholders $ 629 $ 30,438 Adjustments: Net income attributable to noncontrolling interest 52 2,602 Income from mortgage servicing rights (9,660 ) (8,131 ) Deferred tax benefit (2,580 ) (137 ) Amortization and write-offs of MSRs 19,340 20,864 Depreciation and amortization 7,814 4,568 Loss on extinguishment of debt — 2,319 Provision for credit losses, net (20,878 ) 756 Loss (gain) on derivative instruments, net 1,298 (4,697 ) Loss on real estate 12,529 2,810 Stock-based compensation 5,904 5,935 Distributable earnings (1) $ 14,448 $ 57,327 Diluted distributable earnings per share (1) $ 0.07 $ 0.28 Diluted weighted average shares outstanding (1) (2) 211,735,731 206,862,320
(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) For the quarter ended March 31, 2025, 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.
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- Arbor Realty Trust Reports First Quarter 2026 Results and Declares Dividend of $0.17 per Share
May 8, 2026
Company Highlights:
GAAP net income of $0.6 million, or $0.00 per diluted common shareDistributable earnings1 of $0.07, or $0.18 per diluted common share, excluding $22.9 million of net realized losses from the resolution of certain legacy assetsDeclares cash dividend on common stock of $0.17 per shareServicing portfolio of ~$36.31 billion, agency loan originations of $707.6 millionStructured loan portfolio of ~$12.00 billion, originations of $767.6 million and runoff of $861.0 millionClosed a $762.6 million collateralized securitization vehicle with enhanced leverage, generating ~$35 million of additional liquidityPurchased $30.7 million of stock at an average price of $7.46 per share, or 66% of book value
UNIONDALE, N.Y., May 08, 2026 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE: ABR), today announced financial results for the first quarter ended March 31, 2026. Arbor reported net income for the quarter of $0.6 million, or $0.00 per diluted common share, compared to net income of $30.4 million, or $0.16 per diluted common share for the quarter ended March 31, 2025. Distributable earnings for the quarter was $14.4 million, or $0.07 per diluted common share, compared to $57.3 million, or $0.28 per diluted common share for the quarter ended March 31, 2025.
Agency Business
Loan Origination Platform
Agency Loan Volume (in thousands) Quarter Ended March 31, 2026 December 31, 2025Fannie Mae$570,815 $1,068,889Freddie Mac 91,255 493,294FHA 45,507 62,104SFR-Fixed Rate — 3,857Total Originations$707,577 $1,628,144 Total Loan Sales$670,972 $1,539,801 Total Loan Commitments$733,860 $1,602,180
For the quarter ended March 31, 2026, the Agency Business generated revenues of $57.9 million, compared to $81.0 million for the fourth quarter of 2025. Gain on sales, including fee-based services, net was $12.5 million for the quarter, reflecting a margin of 1.86%, compared to $20.9 million and 1.36% for the fourth quarter of 2025. Income from mortgage servicing rights was $9.7 million for the quarter, reflecting a rate of 1.32% as a percentage of loan commitments, compared to $19.9 million and 1.24% for the fourth quarter of 2025.
At March 31, 2026, loans held-for-sale was $443.2 million, with financing associated with these loans totaling $424.9 million.
Fee-Based Servicing Portfolio
The Company’s fee-based servicing portfolio totaled $36.31 billion at March 31, 2026. Servicing revenue, net was $25.7 million for the quarter and consisted of servicing revenue of $44.0 million, net of amortization of mortgage servicing rights totaling $18.3 million.
Fee-Based Servicing Portfolio ($ in thousands) March 31, 2026 December 31, 2025 UPB Wtd. Avg. Fee (bps) Wtd. Avg. Life (years) UPB Wtd. Avg. Fee (bps) Wtd. Avg. Life (years)Fannie Mae$24,261,724 44.4 5.4 $24,085,960 44.7 5.5Freddie Mac 7,368,979 18.2 5.7 7,455,088 18.3 5.9Private Label 2,554,209 18.7 4.3 2,558,048 18.7 4.5FHA 1,584,644 13.8 19.0 1,549,483 13.9 19.1Bridge 277,523 10.4 2.0 277,738 10.4 2.2SFR-Fixed Rate 264,008 20.0 3.8 277,490 20.0 4.0Total$36,311,087 35.5 5.9 $36,203,807 35.6 6.1
Loans sold under the Fannie Mae program contain an obligation to partially guarantee the performance of the loan (“loss-sharing obligations”) and includes $36.1 million for the fair value of the guarantee obligation undertaken at March 31, 2026. The Company recorded a $4.1 million net provision for loss sharing associated with CECL for the first quarter of 2026. At March 31, 2026, the Company’s total CECL allowance for loss-sharing obligations was $70.7 million, representing 0.29% of the Fannie Mae servicing portfolio.
Structured Business
Portfolio and Investment Activity
Structured Portfolio Activity ($ in thousands) Quarter Ended March 31, 2026 December 31, 2025 UPB % UPB %Bridge: Multifamily$405,600 53% $336,945 30%SFR 321,122 42% 668,059 61% 726,722 95% 1,005,004 91% Construction - Multifamily 40,870 5% 61,206 6%Mezzanine/Preferred Equity — —% 36,922 3%Total Originations$767,592 100% $1,103,132 100% Number of Loans Originated 6 29 Commitments: Construction - Multifamily$113,070 $62,000 SFR 53,000 245,750 Total Commitments$166,070 $307,750 Loan Runoff$861,033 $537,519
Structured Portfolio ($ in thousands) March 31, 2026 December 31, 2025 UPB % UPB %Bridge: Multifamily$7,897,122 66% $8,143,114 67%SFR 3,265,802 27% 3,184,910 26%Other 46,519 <1% 43,734 <1% 11,209,443 94% 11,371,758 94% Mezzanine/Preferred Equity 497,961 4% 492,330 4%Construction - Multifamily 289,889 2% 249,019 2%Total Portfolio$11,997,293 100% $12,113,107 100%
At March 31, 2026, the loan and investment portfolio’s unpaid principal balance ("UPB"), excluding loan loss reserves, was $12.00 billion, with a weighted average interest rate of 6.49%, compared to $12.11 billion and 6.49% at December 31, 2025. Including certain fees earned and costs associated with the loan and investment portfolio, the weighted average interest rate was 7.03% at March 31, 2026, compared to 7.08% at December 31, 2025.
The average balance of the Company’s loan and investment portfolio during the first quarter of 2026, excluding loan loss reserves, was $12.04 billion with a weighted average yield of 7.50%, compared to $11.84 billion and 7.38% for the fourth quarter of 2025. The increase in the weighted average yield was primarily due to a net decline in loan delinquencies in the first quarter of 2026, partially offset by a decrease in the average SOFR rate in the first quarter of 2026.
During the first quarter of 2026, the Company recorded a $3.6 million net provision for loan losses associated with CECL. At March 31, 2026, the Company’s total allowance for loan losses was $131.2 million. The Company had nineteen non-performing loans with a UPB of $481.5 million, before related loan loss reserves of $16.1 million, compared to twenty-six non-performing loans with a UPB of $569.1 million, before loan loss reserves of $10.2 million at December 31, 2025. In addition, the Company recorded $12.5 million of impairments on six real estate owned properties.
At March 31, 2026, the Company had no loans that were less than 60 days past due classified as non-accrual, compared to three loans with a total UPB of $48.3 million at December 31, 2025.
During the first quarter of 2026, the Company modified 13 loans to borrowers experiencing financial difficulty with a total UPB of $478.8 million, the majority of which had borrowers investing additional capital to recapitalize their deals. In addition, of the total modified loans for the first quarter, $115.4 million were non-performing at December 31, 2025, and are now current in accordance with their modified terms.
The Company foreclosed on three loans with a UPB totaling $58.9 million, selling one of these foreclosed properties and one existing REO property for $33.0 million.
Financing Activity
The balance of debt that finances the Company’s loan and investment portfolio at March 31, 2026 was $10.71 billion with a weighted average interest rate including fees of 6.40%, as compared to $10.46 billion and a rate of 6.45% at December 31, 2025.
The average balance of debt that finances the Company’s loan and investment portfolio for the first quarter of 2026 was $10.38 billion, as compared to $10.09 billion for the fourth quarter of 2025. The average cost of borrowings for the first quarter of 2026 was 6.67%, compared to 6.81% for the fourth quarter of 2025. The decrease in average cost was primarily due to a decrease in the average SOFR rate in the first quarter of 2026, partially offset by the issuance of $400 million of senior unsecured notes in December 2025.
The Company completed a $762.6 million collateralized securitization secured initially by a portfolio of real estate related assets and cash. Investment grade-rated notes totaling $674.0 million were issued, and the Company retained subordinate interests in the issuing vehicle of $88.6 million. The facility has a two and a half year asset replenishment period and an initial weighted average interest rate of 1.73% over term SOFR, excluding fees and transaction costs.
Dividend
The Company announced today that its Board of Directors has declared a quarterly cash dividend of $0.17 per share of common stock for the quarter ended March 31, 2026. The dividend is payable on June 5, 2026 to common stockholders of record on May 22, 2026.
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) 267-6316 for domestic callers and (203) 518-9783 for international callers. Please use participant passcode ABRQ126 when prompted by the operator.
A telephonic replay of the call will be available until May 15, 2026. The replay dial-in numbers are (800) 938-1603 for domestic callers and (402) 220-1549 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, 2025 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
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 March 31, 2026 2025 Interest income$235,047 $240,693 Interest expense 175,202 165,251 Net interest income 59,845 75,442 Other revenue: Gain on sales, including fee-based services, net 12,505 12,781 Mortgage servicing rights 9,660 8,131 Servicing revenue, net 25,740 25,603 Property operating income 8,060 4,387 (Loss) gain on derivative instruments, net (493) 3,400 Other income, net 2,074 4,419 Total other revenue 57,546 58,721 Other expenses: Employee compensation and benefits 47,684 46,036 Selling and administrative 16,953 16,312 Property operating expenses 11,964 3,474 Depreciation and amortization 7,104 3,744 Impairment loss on real estate owned 12,500 — Provision for loss sharing, net 4,537 1,786 Provision for credit losses, net 5,816 9,075 Total other expenses 106,558 80,427 Income before extinguishment of debt, loss on real estate, income (loss) from equity affiliates and income taxes 10,833 53,736 Loss on extinguishment of debt — (2,319)Loss on real estate (2,136) (2,810)Income (loss) from equity affiliates 4,411 (1,634)Provision for income taxes (2,085) (3,591)Net income 11,023 43,382 Preferred stock dividends 10,342 10,342 Net income attributable to noncontrolling interest 52 2,602 Net income attributable to common stockholders$629 $30,438 Basic earnings per common share$0.00 $0.16 Diluted earnings per common share$0.00 $0.16 Weighted average shares outstanding: Basic 194,194,906 190,060,776 Diluted 211,735,731 206,862,320 Dividends declared per common share$0.30 $0.43
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
($ in thousands—except share and per share data) March 31, 2026 (Unaudited) December 31, 2025Assets: Cash and cash equivalents$407,126 $482,875 Restricted cash 393,529 67,347 Loans and investments, net (allowance for credit losses of $131,223 and $145,971) 11,835,381 11,934,248 Loans held-for-sale, net 443,218 409,081 Capitalized mortgage servicing rights, net 331,929 340,842 Securities held-to-maturity, net (allowance for credit losses of $15,125 and $17,013) 155,469 156,087 Investments in equity affiliates 56,747 57,966 Real estate owned, net 520,766 498,938 Due from related party 35,251 6,534 Goodwill and other intangible assets 86,161 86,553 Other assets 426,908 454,432 Total assets$14,692,485 $14,494,903 Liabilities and Equity: Credit and repurchase facilities$4,967,952 $5,149,651 Securitized debt 3,931,468 3,468,258 Senior unsecured notes 2,030,947 2,029,078 Junior subordinated notes to subsidiary trust issuing preferred securities 145,707 145,497 Notes payable - real estate owned 253,189 222,965 Due to related party 1,758 501 Due to borrowers 29,992 33,451 Allowance for loss-sharing obligations 106,773 97,579 Other liabilities 245,649 280,770 Total liabilities 11,713,435 11,427,750 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: 633,683 633,683 Special voting preferred shares - 16,170,218 and 16,169,858 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 - 192,370,465 and 195,491,855 shares issued and outstanding 1,924 1,955 Additional paid-in capital 2,428,500 2,454,312 Accumulated deficit (194,058) (136,597)Total Arbor Realty Trust, Inc. stockholders' equity 2,870,049 2,953,353 Noncontrolling interest 109,001 113,800 Total equity 2,979,050 3,067,153 Total liabilities and equity$14,692,485 $14,494,903
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Statement of Income Segment Information - (Unaudited)
(in thousands) Quarter Ended March 31, 2026 Structured
Business Agency
Business Other(1) ConsolidatedInterest income$224,394 $10,653 $— $235,047 Interest expense 170,814 4,388 — 175,202 Net interest income 53,580 6,265 — 59,845 Other revenue: Gain on sales, including fee-based services, net — 12,505 — 12,505 Mortgage servicing rights — 9,660 — 9,660 Servicing revenue — 44,033 — 44,033 Amortization of MSRs — (18,293) — (18,293)Property operating income 8,060 — — 8,060 Loss on derivative instruments, net — (493) — (493)Other income (loss), net 2,223 (149) — 2,074 Total other revenue 10,283 47,263 — 57,546 Other expenses: Employee compensation and benefits 18,862 28,822 — 47,684 Selling and administrative 9,150 7,803 — 16,953 Property operating expenses 11,964 — — 11,964 Depreciation and amortization 6,713 391 — 7,104 Impairment loss on real estate owned 12,500 — — 12,500 Provision for loss sharing, net — 4,537 — 4,537 Provision for credit losses, net 3,644 2,172 — 5,816 Total other expenses 62,833 43,725 — 106,558 Income before loss on real estate, income from equity affiliates and income taxes 1,030 9,803 — 10,833 Loss on real estate (2,136) — — (2,136)Income from equity affiliates 4,411 — — 4,411 Benefit from (provision for) income taxes 83 (2,168) — (2,085)Net income 3,388 7,635 — 11,023 Preferred stock dividends 10,342 — — 10,342 Net income attributable to noncontrolling interest — — 52 52 Net (loss) income attributable to common stockholders$(6,954) $7,635 $(52) $629
(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) March 31, 2026 Structured Business Agency Business ConsolidatedAssets: Cash and cash equivalents$89,285 $317,841 $407,126Restricted cash 359,569 33,960 393,529Loans and investments, net 11,835,381 — 11,835,381Loans held-for-sale, net — 443,218 443,218Capitalized mortgage servicing rights, net — 331,929 331,929Securities held-to-maturity, net — 155,469 155,469Investments in equity affiliates 56,747 — 56,747Real estate owned, net 520,766 — 520,766Goodwill and other intangible assets 12,500 73,661 86,161Other assets and due from related party 387,609 74,550 462,159Total assets$13,261,857 $1,430,628 $14,692,485 Liabilities: Debt obligations$10,904,398 $424,865 $11,329,263Allowance for loss-sharing obligations — 106,773 106,773Other liabilities and due to related parties 212,622 64,777 277,399Total liabilities$11,117,020 $596,415 $11,713,435
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Reconciliation of Distributable Earnings to GAAP Net Income - (Unaudited)
($ in thousands—except share and per share data) Quarter Ended March 31, 2026 2025 Net income attributable to common stockholders$629 $30,438 Adjustments: Net income attributable to noncontrolling interest 52 2,602 Income from mortgage servicing rights (9,660) (8,131)Deferred tax benefit (2,580) (137)Amortization and write-offs of MSRs 19,340 20,864 Depreciation and amortization 7,814 4,568 Loss on extinguishment of debt — 2,319 Provision for credit losses, net (20,878) 756 Loss (gain) on derivative instruments, net 1,298 (4,697)Loss on real estate 12,529 2,810 Stock-based compensation 5,904 5,935 Distributable earnings (1)$14,448 $57,327 Diluted distributable earnings per share (1)$0.07 $0.28 Diluted weighted average shares outstanding (1) (2) 211,735,731 206,862,320
(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) For the quarter ended March 31, 2025, 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.
