Arbor Realty Trust Reports Fourth Quarter and Full Year 2024 Results and Declares Dividend of $0.43 per Share
Arbor Realty Trust (NYSE: ABR) reported Q4 2024 financial results with GAAP net income of $0.32 per diluted share and distributable earnings of $0.40 per diluted share. The company declared a quarterly cash dividend of $0.43 per share.
Key Q4 highlights include agency loan originations of $1.38 billion and a servicing portfolio of $33.47 billion. Structured loan originations reached $684.3 million with runoff of $900.6 million. The company issued $100 million of 9.00% senior notes due 2027.
For full-year 2024, ABR achieved GAAP net income of $1.18 and distributable earnings of $1.74 per diluted share. The agency servicing portfolio grew 8% from loan originations of $4.47 billion. The company successfully reduced its debt-to-equity ratio from 4:1 to 2.8:1, representing a 30% deleveraging.
Arbor Realty Trust (NYSE: ABR) ha riportato i risultati finanziari del quarto trimestre 2024 con un reddito netto GAAP di $0.32 per azione diluita e guadagni distribuibili di $0.40 per azione diluita. L'azienda ha dichiarato un dividendo in contante trimestrale di $0.43 per azione.
I punti salienti del quarto trimestre includono origini di prestiti agenziali di $1.38 miliardi e un portafoglio di servizi di $33.47 miliardi. Le origini di prestiti strutturati hanno raggiunto $684.3 milioni con una riduzione di $900.6 milioni. L'azienda ha emesso $100 milioni di note senior al 9.00% in scadenza nel 2027.
Per l'intero anno 2024, ABR ha raggiunto un reddito netto GAAP di $1.18 e guadagni distribuibili di $1.74 per azione diluita. Il portafoglio di servizi agenziali è cresciuto dell'8% grazie alle origini di prestiti di $4.47 miliardi. L'azienda ha ridotto con successo il proprio rapporto debito/capitale da 4:1 a 2.8:1, rappresentando una riduzione del 30% del leverage.
Arbor Realty Trust (NYSE: ABR) reportó los resultados financieros del cuarto trimestre de 2024 con un ingreso neto GAAP de $0.32 por acción diluida y ganancias distribuibles de $0.40 por acción diluida. La empresa declaró un dividendo en efectivo trimestral de $0.43 por acción.
Los aspectos destacados del cuarto trimestre incluyen orígenes de préstamos de agencia de $1.38 mil millones y un portafolio de servicios de $33.47 mil millones. Los orígenes de préstamos estructurados alcanzaron los $684.3 millones con una reducción de $900.6 millones. La empresa emitió $100 millones de notas senior al 9.00% con vencimiento en 2027.
Para el año completo 2024, ABR logró un ingreso neto GAAP de $1.18 y ganancias distribuibles de $1.74 por acción diluida. El portafolio de servicios de agencia creció un 8% a partir de orígenes de préstamos de $4.47 mil millones. La empresa redujo con éxito su relación deuda-capital de 4:1 a 2.8:1, lo que representa una reducción del 30% en el apalancamiento.
아버 리얼티 트러스트 (NYSE: ABR)는 2024년 4분기 재무 결과를 발표했으며, 희석 주당 GAAP 순이익은 $0.32와 희석 주당 배당 가능 수익은 $0.40입니다. 이 회사는 주당 $0.43의 분기 현금 배당금을 선언했습니다.
4분기의 주요 하이라이트로는 에이전시 대출 원천징수 $1.38억 달러와 서비스 포트폴리오 $33.47억 달러가 있습니다. 구조화된 대출 원천징수는 $684.3백만 달러에 달하며, $900.6백만 달러가 감소했습니다. 이 회사는 2027년 만기 9.00%의 선순위 채권 $1억 달러를 발행했습니다.
2024년 전체 연도에 대해 ABR은 GAAP 순이익 $1.18 및 희석 주당 배당 가능 수익 $1.74를 달성했습니다. 에이전시 서비스 포트폴리오는 $4.47억 달러의 대출 원천징수로 8% 성장했습니다. 이 회사는 부채-자본 비율을 4:1에서 2.8:1로 성공적으로 줄여 30%의 레버리지 감소를 나타냈습니다.
Arbor Realty Trust (NYSE: ABR) a annoncé les résultats financiers du quatrième trimestre 2024, avec un revenu net GAAP de $0.32 par action diluée et des bénéfices distribuables de $0.40 par action diluée. L'entreprise a déclaré un dividende en espèces trimestriel de $0.43 par action.
Les points forts du quatrième trimestre comprennent des origines de prêts d'agence de $1.38 milliard et un portefeuille de services de $33.47 milliards. Les origines de prêts structurés ont atteint $684.3 millions avec un déclin de $900.6 millions. L'entreprise a émis $100 millions de notes senior à 9,00% arrivant à échéance en 2027.
Pour l'année complète 2024, ABR a réalisé un revenu net GAAP de $1.18 et des bénéfices distribuables de $1.74 par action diluée. Le portefeuille de services d'agence a augmenté de 8% grâce à des origines de prêts de $4.47 milliards. L'entreprise a réussi à réduire son ratio d'endettement par rapport aux capitaux propres de 4:1 à 2.8:1, représentant une désendettement de 30%.
Arbor Realty Trust (NYSE: ABR) hat die finanziellen Ergebnisse für das vierte Quartal 2024 veröffentlicht, mit einem GAAP-Nettoeinkommen von $0.32 pro verwässerter Aktie und distributierbaren Erträgen von $0.40 pro verwässerter Aktie. Das Unternehmen hat eine vierteljährliche Bar-Dividende von $0.43 pro Aktie erklärt.
Wichtige Highlights des vierten Quartals umfassen Agentur-Darlehensherkünfte von $1.38 Milliarden und ein Dienstleistungsportfolio von $33.47 Milliarden. Die strukturierten Darlehensherkünfte erreichten $684.3 Millionen mit einem Rückgang von $900.6 Millionen. Das Unternehmen hat $100 Millionen an 9,00% Senior Notes mit Fälligkeit 2027 ausgegeben.
Für das Gesamtjahr 2024 erzielte ABR ein GAAP-Nettoeinkommen von $1.18 und distributierbare Erträge von $1.74 pro verwässerter Aktie. Das Agentur-Service-Portfolio wuchs um 8% aus Darlehensherkünften von $4.47 Milliarden. Das Unternehmen hat sein Verhältnis von Schulden zu Eigenkapital erfolgreich von 4:1 auf 2,8:1 gesenkt, was eine Entschuldung von 30% darstellt.
- Declared quarterly dividend of $0.43 per share
- Agency servicing portfolio grew 8% YoY
- Successfully reduced debt-to-equity ratio by 30% to 2.8:1
- Agency loan originations reached $1.38 billion in Q4
- Q4 net income decreased to $0.32 per share from $0.48 YoY
- Full-year net income declined to $1.18 per share from $1.75 YoY
- Structured portfolio reduced by 10% with $2.48 billion loan runoff
- 26 non-performing loans with UPB of $651.8 million
Insights
The Q4 2024 results reveal a complex picture for Arbor Realty Trust, with several key developments requiring careful analysis. The most significant aspect is the company's successful deleveraging initiative, reducing its debt-to-equity ratio from 4:1 to 2.8:1, representing a
The dividend coverage metrics warrant attention. While maintaining the
Portfolio dynamics show a strategic shift in risk management:
- The structured portfolio decreased by
10% through$2.48 billion in multifamily loan runoff $1.58 billion was recaptured into agency loans, indicating a migration toward lower-risk, government-backed lending- The servicing portfolio grew to
$33.47 billion, providing stable, recurring fee income
Credit quality metrics remain a concern with:
- Twenty-six non-performing loans totaling
$651.8 million UPB - Total loan loss reserves of
$239.0 million - Fifteen loans modified in Q4, with
$466.6 million UPB, mostly involving additional capital investments from borrowers
The company's interest margin dynamics show adaptation to the market environment. The weighted average portfolio yield decreased to
Fourth Quarter Highlights:
- GAAP net income of
$0.32 and distributable earnings of$0.40 , per diluted common share1 - Declares cash dividend on common stock of
$0.43 per share - Agency loan originations of
$1.38 billion and a servicing portfolio of ~$33.47 billion - Structured loan originations of
$684.3 million , runoff of$900.6 million , and a portfolio of ~$11.30 billion - Issued
$100.0 million of9.00% senior notes due 2027
Full Year Highlights:
- GAAP net income of
$1.18 and distributable earnings of$1.74 per diluted common share1 - Agency servicing portfolio growth of
8% from loan originations of$4.47 billion - Successfully delevered the Company
30% from a peak debt to equity ratio of 4:1 in 2023, to 2.8:1 at December 31, 20242 - Structured portfolio reduction of
10% with$2.48 billion of multifamily loan runoff,$1.58 billion of which was recaptured into new agency loan originations - Redeemed
$200.0 million of our senior notes
UNIONDALE, N.Y., Feb. 21, 2025 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE: ABR), today announced financial results for the fourth quarter ended December 31, 2024. Arbor reported net income for the quarter of
Agency Business
Loan Origination Platform
| Agency Loan Volume (in thousands) | |||||||||||
| Quarter Ended | Year Ended | ||||||||||
| December 31, 2024 | September 30, 2024 | December 31, 2024 | December 31, 2023 | ||||||||
| Fannie Mae | $ | 556,676 | $ | 616,211 | $ | 2,374,040 | $ | 3,773,532 | |||
| Freddie Mac | 675,244 | 378,809 | 1,770,976 | 756,827 | |||||||
| Private Label | 27,650 | 74,162 | 151,936 | 299,934 | |||||||
| FHA | 119,050 | 27,457 | 146,507 | 257,199 | |||||||
| SFR - Fixed Rate | — | — | 27,314 | 19,328 | |||||||
| Total Originations | $ | 1,378,620 | $ | 1,096,639 | $ | 4,470,773 | $ | 5,106,820 | |||
| Total Loan Sales | $ | 1,270,048 | $ | 1,118,977 | $ | 4,609,686 | $ | 4,889,199 | |||
| Total Loan Commitments | $ | 1,353,527 | $ | 1,056,490 | $ | 4,443,972 | $ | 5,207,148 | |||
For the quarter ended December 31, 2024, the Agency Business generated revenues of
At December 31, 2024, loans held-for-sale was
Fee-Based Servicing Portfolio
The Company’s fee-based servicing portfolio totaled
| Fee-Based Servicing Portfolio ($ in thousands) | ||||||||||||||||||||
| December 31, 2024 | September 30, 2024 | December 31, 2023 | ||||||||||||||||||
| UPB | Wtd. Avg. Fee (bps) | Wtd. Avg. Life (years) | UPB | Wtd. Avg. Fee (bps) | Wtd. Avg. Life (years) | UPB | Wtd. Avg. Fee (bps) | Wtd. Avg. Life (years) | ||||||||||||
| Fannie Mae | $ | 22,730,056 | 46.4 | 6.4 | $ | 22,526,022 | 46.6 | 6.6 | $ | 21,264,578 | 47.4 | 7.4 | ||||||||
| Freddie Mac | 6,077,020 | 21.5 | 6.8 | 5,820,026 | 21.9 | 7.1 | 5,181,933 | 24.0 | 8.5 | |||||||||||
| Private Label | 2,605,980 | 18.7 | 5.5 | 2,619,485 | 18.7 | 5.8 | 2,510,449 | 19.5 | 6.7 | |||||||||||
| FHA | 1,506,948 | 14.1 | 19.2 | 1,390,766 | 14.2 | 18.9 | 1,359,624 | 14.4 | 19.2 | |||||||||||
| Bridge | 278,494 | 10.4 | 3.0 | 380,379 | 10.9 | 3.0 | 379,425 | 10.9 | 3.2 | |||||||||||
| SFR-Fixed Rate | 271,859 | 20.1 | 4.4 | 275,081 | 20.1 | 4.6 | 287,446 | 20.1 | 5.1 | |||||||||||
| Total | $ | 33,470,357 | 37.8 | 6.9 | $ | 33,011,759 | 38.0 | 7.1 | $ | 30,983,455 | 39.1 | 8.0 | ||||||||
Loans sold under the Fannie Mae program contain an obligation to partially guarantee the performance of the loan (“loss-sharing obligations”) and includes
Structured Business
Portfolio and Investment Activity
| Structured Portfolio Activity ($ in thousands) | |||||||||||||||||||||||
| Quarter Ended | Year Ended | ||||||||||||||||||||||
| December 31, 2024 | September 30, 2024 | December 31, 2024 | December 31, 2023 | ||||||||||||||||||||
| UPB | % | UPB | % | UPB | % | UPB | % | ||||||||||||||||
| Bridge: | |||||||||||||||||||||||
| Multifamily | $ | 371,250 | 54 | % | $ | 14,500 | 6 | % | $ | 444,635 | 31 | % | $ | 415,330 | 42 | % | |||||||
| SFR | 273,087 | 40 | % | 239,064 | 92 | % | 869,141 | 61 | % | 524,060 | 54 | % | |||||||||||
| Land | — | — | — | — | 10,350 | 1 | % | — | — | ||||||||||||||
| 644,337 | 94 | % | 253,564 | 98 | % | 1,324,126 | 93 | % | 939,390 | 96 | % | ||||||||||||
| Mezzanine / Preferred Equity | 35,592 | 5 | % | 4,900 | 2 | % | 97,305 | 7 | % | 43,953 | 4 | % | |||||||||||
| Construction - Multifamily | 4,368 | 1 | % | — | — | 4,368 | — | — | — | ||||||||||||||
| Total Originations | $ | 684,297 | 100 | % | $ | 258,464 | 100 | % | $ | 1,425,799 | 100 | % | $ | 983,343 | 100 | % | |||||||
| Number of Loans Originated | 28 | 38 | 170 | 150 | |||||||||||||||||||
| Commitments: | |||||||||||||||||||||||
| SFR | $ | 375,894 | $ | 374,070 | $ | 1,438,841 | $ | 1,150,687 | |||||||||||||||
| Construction - Multifamily | 54,000 | 47,000 | 101,000 | — | |||||||||||||||||||
| Total Commitments | $ | 429,894 | $ | 421,070 | $ | 1,539,841 | $ | 1,150,687 | |||||||||||||||
| Loan Runoff | $ | 900,583 | $ | 521,341 | $ | 2,691,583 | $ | 3,354,055 | |||||||||||||||
| Structured Portfolio ($ in thousands) | |||||||||||||||||
| December 31, 2024 | September 30, 2024 | December 31, 2023 | |||||||||||||||
| UPB | % | UPB | % | UPB | % | ||||||||||||
| Bridge: | |||||||||||||||||
| Multifamily | $ | 8,725,429 | 76 | % | $ | 9,208,954 | 80 | % | $ | 10,789,936 | 86 | % | |||||
| SFR | 1,993,890 | 18 | % | 1,783,475 | 15 | % | 1,316,803 | 10 | % | ||||||||
| Other | 173,787 | 2 | % | 176,855 | 2 | % | 166,505 | 1 | % | ||||||||
| 10,893,106 | 96 | % | 11,169,284 | 97 | % | 12,273,244 | 97 | % | |||||||||
| Mezzanine/Preferred Equity | 404,401 | 3 | % | 393,168 | 3 | % | 334,198 | 3 | % | ||||||||
| Construction - Multifamily | 4,367 | <1 | % | — | — | — | — | ||||||||||
| SFR Permanent | 3,082 | <1 | % | 3,086 | <1 | % | 7,564 | <1 | % | ||||||||
| Total Portfolio | $ | 11,304,956 | 100 | % | $ | 11,565,538 | 100 | % | $ | 12,615,006 | 100 | % | |||||
At December 31, 2024, the loan and investment portfolio’s unpaid principal balance ("UPB"), excluding loan loss reserves, was
The average balance of the Company’s loan and investment portfolio during the fourth quarter of 2024, excluding loan loss reserves, was
During the fourth quarter of 2024, the Company recorded a
In addition, at December 31, 2024, the Company had nine loans with a total UPB of
During the fourth quarter of 2024, the Company modified fifteen loans with a total UPB of
Financing Activity
The balance of debt that finances the Company’s loan and investment portfolio at December 31, 2024 was
The average balance of debt that finances the Company’s loan and investment portfolio for the fourth quarter of 2024 was
The Company issued
Dividend
The Company announced today that its Board of Directors has declared a quarterly cash dividend of
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) 579-2543 for domestic callers and (785) 424-1789 for international callers. Please use participant passcode ABRQ424 when prompted by the operator.
A telephonic replay of the call will be available until February 28, 2025. The replay dial-in numbers are (800) 839-0866 for domestic callers and (402) 220-0662 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
- 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 page of this release.
- Debt to equity ratio reflects junior subordinated notes as equity.
| Contact: | Arbor Realty Trust, Inc. Investor Relations 516-506-4200 InvestorRelations@arbor.com |
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Consolidated Statements of Income
($ in thousands—except share and per share data)
| Quarter Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||
| Interest income | $ | 262,871 | $ | 331,060 | $ | 1,167,872 | $ | 1,331,219 | |||||||
| Interest expense | 180,002 | 227,479 | 804,615 | 903,228 | |||||||||||
| Net interest income | 82,869 | 103,581 | 363,257 | 427,991 | |||||||||||
| Other revenue: | |||||||||||||||
| Gain on sales, including fee-based services, net | 22,180 | 16,727 | 74,932 | 72,522 | |||||||||||
| Mortgage servicing rights | 13,344 | 21,144 | 51,272 | 69,912 | |||||||||||
| Servicing revenue, net | 33,319 | 33,073 | 125,896 | 130,449 | |||||||||||
| Property operating income | 2,705 | 1,447 | 7,226 | 5,708 | |||||||||||
| (Loss) gain on derivative instruments, net | (3,833 | ) | 10,345 | (8,543 | ) | 6,763 | |||||||||
| Other income, net | 1,129 | 2,571 | 8,083 | 7,667 | |||||||||||
| Total other revenue | 68,844 | 85,307 | 258,866 | 293,021 | |||||||||||
| Other expenses: | |||||||||||||||
| Employee compensation and benefits | 46,283 | 36,270 | 181,694 | 159,788 | |||||||||||
| Selling and administrative | 15,034 | 12,686 | 54,931 | 51,260 | |||||||||||
| Property operating expenses | 2,446 | 1,670 | 7,394 | 5,897 | |||||||||||
| Depreciation and amortization | 2,617 | 2,446 | 9,555 | 9,743 | |||||||||||
| Provision for loss sharing (net of recoveries) | 3,996 | 3,168 | 11,782 | 15,695 | |||||||||||
| Provision for credit losses (net of recoveries) | 3,641 | 18,399 | 68,543 | 73,446 | |||||||||||
| Total other expenses | 74,017 | 74,639 | 333,899 | 315,829 | |||||||||||
| Income before extinguishment of debt, gain on real estate, (loss) income from equity affiliates, and income taxes | 77,696 | 114,249 | 288,224 | 405,183 | |||||||||||
| Loss on extinguishment of debt | — | — | (412 | ) | (1,561 | ) | |||||||||
| Gain on real estate | — | — | 3,813 | — | |||||||||||
| (Loss) income from equity affiliates | (1,616 | ) | 3,586 | 5,772 | 24,281 | ||||||||||
| Provision for income taxes | (752 | ) | (7,911 | ) | (13,478 | ) | (27,347 | ) | |||||||
| Net income | 75,328 | 109,924 | 283,919 | 400,556 | |||||||||||
| Preferred stock dividends | 10,342 | 10,342 | 41,369 | 41,369 | |||||||||||
| Net income attributable to noncontrolling interest | 5,160 | 7,923 | 19,278 | 29,122 | |||||||||||
| Net income attributable to common stockholders | $ | 59,826 | $ | 91,659 | $ | 223,272 | $ | 330,065 | |||||||
| Basic earnings per common share | $ | 0.32 | $ | 0.49 | $ | 1.18 | $ | 1.79 | |||||||
| Diluted earnings per common share | $ | 0.32 | $ | 0.48 | $ | 1.18 | $ | 1.75 | |||||||
| Weighted average shares outstanding: | |||||||||||||||
| Basic | 188,924,182 | 188,503,682 | 188,701,149 | 184,641,642 | |||||||||||
| Diluted | 205,759,307 | 222,861,214 | 205,526,610 | 218,843,613 | |||||||||||
| Dividends declared per common share | $ | 0.43 | $ | 0.43 | $ | 1.72 | $ | 1.68 | |||||||
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
($ in thousands—except share and per share data)
| December 31, 2024 | December 31, 2023 | ||||
| Assets: | |||||
| Cash and cash equivalents | $ | 503,803 | $ | 928,974 | |
| Restricted cash | 156,376 | 608,233 | |||
| Loans and investments, net (allowance for credit losses of | 11,033,997 | 12,377,806 | |||
| Loans held-for-sale, net | 435,759 | 551,707 | |||
| Capitalized mortgage servicing rights, net | 368,678 | 391,254 | |||
| Securities held-to-maturity, net (allowance for credit losses of | 157,154 | 155,279 | |||
| Investments in equity affiliates | 76,312 | 79,303 | |||
| Real estate owned, net | 176,543 | 86,991 | |||
| Due from related party | 12,792 | 64,421 | |||
| Goodwill and other intangible assets | 88,119 | 91,378 | |||
| Other assets | 481,448 | 403,290 | |||
| Total assets | $ | 13,490,981 | $ | 15,738,636 | |
| Liabilities and Equity: | |||||
| Credit and repurchase facilities | $ | 3,559,490 | $ | 3,237,827 | |
| Securitized debt | 4,622,489 | 6,935,010 | |||
| Senior unsecured notes | 1,236,147 | 1,333,968 | |||
| Convertible senior unsecured notes | 285,853 | 283,118 | |||
| Junior subordinated notes to subsidiary trust issuing preferred securities | 144,686 | 143,896 | |||
| Mortgage notes payable - real estate owned | 74,897 | 44,339 | |||
| Due to related party | 4,474 | 13,799 | |||
| Due to borrowers | 47,627 | 121,707 | |||
| Allowance for loss-sharing obligations | 83,150 | 71,634 | |||
| Other liabilities | 280,198 | 298,733 | |||
| Total liabilities | 10,339,011 | 12,484,031 | |||
| Equity: | |||||
| Arbor Realty Trust, Inc. stockholders' equity: | |||||
| Preferred stock, cumulative, redeemable, | 633,684 | 633,684 | |||
| Special voting preferred - 16,293,589 shares | |||||
| Common stock, | 1,893 | 1,885 | |||
| Additional paid-in capital | 2,375,469 | 2,367,188 | |||
| Retained earnings | 13,039 | 115,216 | |||
| Total Arbor Realty Trust, Inc. stockholders’ equity | 3,024,085 | 3,117,973 | |||
| Noncontrolling interest | 127,885 | 136,632 | |||
| Total equity | 3,151,970 | 3,254,605 | |||
| Total liabilities and equity | $ | 13,490,981 | $ | 15,738,636 | |
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Statement of Income Segment Information - (Unaudited)
(in thousands)
| Quarter Ended December 31, 2024 | |||||||||||||||
| Structured Business | Agency Business | Other(1) | Consolidated | ||||||||||||
| Interest income | $ | 248,696 | $ | 14,175 | $ | — | $ | 262,871 | |||||||
| Interest expense | 173,061 | 6,941 | — | 180,002 | |||||||||||
| Net interest income | 75,635 | 7,234 | — | 82,869 | |||||||||||
| Other revenue: | |||||||||||||||
| Gain on sales, including fee-based services, net | — | 22,180 | — | 22,180 | |||||||||||
| Mortgage servicing rights | — | 13,344 | — | 13,344 | |||||||||||
| Servicing revenue | — | 50,924 | — | 50,924 | |||||||||||
| Amortization of MSRs | — | (17,605 | ) | — | (17,605 | ) | |||||||||
| Property operating income | 2,705 | — | — | 2,705 | |||||||||||
| Loss on derivative instruments, net | — | (3,833 | ) | — | (3,833 | ) | |||||||||
| Other income (loss), net | 1,617 | (488 | ) | — | 1,129 | ||||||||||
| Total other revenue | 4,322 | 64,522 | — | 68,844 | |||||||||||
| Other expenses: | |||||||||||||||
| Employee compensation and benefits | 16,064 | 30,219 | — | 46,283 | |||||||||||
| Selling and administrative | 7,953 | 7,081 | — | 15,034 | |||||||||||
| Property operating expenses | 2,446 | — | — | 2,446 | |||||||||||
| Depreciation and amortization | 2,226 | 391 | — | 2,617 | |||||||||||
| Provision for loss sharing (net of recoveries) | — | 3,996 | — | 3,996 | |||||||||||
| Provision for credit losses (net of recoveries) | 3,359 | 282 | — | 3,641 | |||||||||||
| Total other expenses | 32,048 | 41,969 | — | 74,017 | |||||||||||
| Income before loss from equity affiliates and income taxes | 47,909 | 29,787 | — | 77,696 | |||||||||||
| Loss from equity affiliates | (1,616 | ) | — | — | (1,616 | ) | |||||||||
| Benefit from (provision for) income taxes | 726 | (1,478 | ) | — | (752 | ) | |||||||||
| Net income | 47,019 | 28,309 | — | 75,328 | |||||||||||
| Preferred stock dividends | 10,342 | — | — | 10,342 | |||||||||||
| Net income attributable to noncontrolling interest | — | — | 5,160 | 5,160 | |||||||||||
| Net income attributable to common stockholders | $ | 36,677 | $ | 28,309 | $ | (5,160 | ) | $ | 59,826 | ||||||
(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)
| December 31, 2024 | ||||||||
| Structured Business | Agency Business | Consolidated | ||||||
| Assets: | ||||||||
| Cash and cash equivalents | $ | 58,188 | $ | 445,615 | $ | 503,803 | ||
| Restricted cash | 134,320 | 22,056 | 156,376 | |||||
| Loans and investments, net | 11,033,997 | — | 11,033,997 | |||||
| Loans held-for-sale, net | — | 435,759 | 435,759 | |||||
| Capitalized mortgage servicing rights, net | — | 368,678 | 368,678 | |||||
| Securities held-to-maturity, net | — | 157,154 | 157,154 | |||||
| Investments in equity affiliates | 76,312 | — | 76,312 | |||||
| Real estate owned, net | 176,543 | — | 176,543 | |||||
| Goodwill and other intangible assets | 12,500 | 75,619 | 88,119 | |||||
| Other assets and due from related party | 415,310 | 78,930 | 494,240 | |||||
| Total assets | $ | 11,907,170 | $ | 1,583,811 | $ | 13,490,981 | ||
| Liabilities: | ||||||||
| Debt obligations | $ | 9,500,901 | $ | 422,661 | $ | 9,923,562 | ||
| Allowance for loss-sharing obligations | — | 83,150 | 83,150 | |||||
| Other liabilities and due to related party | 244,948 | 87,351 | 332,299 | |||||
| Total liabilities | $ | 9,745,849 | $ | 593,162 | $ | 10,339,011 | ||
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 December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income attributable to common stockholders | $ | 59,826 | $ | 91,659 | $ | 223,272 | $ | 330,065 | |||||||
| Adjustments: | |||||||||||||||
| Net income attributable to noncontrolling interest | 5,160 | 7,923 | 19,278 | 29,122 | |||||||||||
| Income from mortgage servicing rights | (13,344 | ) | (21,144 | ) | (51,272 | ) | (69,912 | ) | |||||||
| Deferred tax benefit | (2,691 | ) | (719 | ) | (11,613 | ) | (7,349 | ) | |||||||
| Amortization and write-offs of MSRs | 20,194 | 19,145 | 76,922 | 77,829 | |||||||||||
| Depreciation and amortization | 3,238 | 4,115 | 12,040 | 16,425 | |||||||||||
| Loss on extinguishment of debt | — | — | 412 | 1,561 | |||||||||||
| Provision for credit losses, net | 2,199 | 11,206 | 65,537 | 68,642 | |||||||||||
| Loss (gain) on derivative instruments, net | 4,535 | (10,880 | ) | 9,212 | (8,844 | ) | |||||||||
| Stock-based compensation | 2,485 | 2,799 | 14,232 | 14,940 | |||||||||||
| Distributable earnings (1) | $ | 81,602 | $ | 104,104 | $ | 358,020 | $ | 452,479 | |||||||
| Diluted distributable earnings per share (1) | $ | 0.40 | $ | 0.51 | $ | 1.74 | $ | 2.25 | |||||||
| Diluted weighted average shares outstanding (1) (2) | 205,759,307 | 205,498,651 | 205,526,610 | 201,549,221 | |||||||||||
(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
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.
FAQ
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