Arbor Realty Trust Reports Third Quarter 2024 Results and Declares Dividend of $0.43 per Share
Arbor Realty Trust (NYSE: ABR) reported Q3 2024 financial results with net income of $58.2 million ($0.31 per share), down from $77.9 million ($0.41 per share) in Q3 2023. The company declared a quarterly dividend of $0.43 per share. Agency loan originations reached $1.10 billion with a servicing portfolio of $33.01 billion, up 2% from Q2 and 10% year-over-year. The structured loan portfolio stood at $11.57 billion. The company successfully reduced its debt-to-equity ratio from 4:1 to 3:1 and maintained cash and liquidity of approximately $600 million.
Arbor Realty Trust (NYSE: ABR) ha riportato i risultati finanziari del terzo trimestre 2024, con un utile netto di 58,2 milioni di dollari (0,31 dollari per azione), in diminuzione rispetto ai 77,9 milioni di dollari (0,41 dollari per azione) del terzo trimestre 2023. L'azienda ha dichiarato un dividendo trimestrale di 0,43 dollari per azione. Le originazioni di prestiti agenziali hanno raggiunto 1,10 miliardi di dollari con un portafoglio di servizio di 33,01 miliardi di dollari, in aumento del 2% rispetto al secondo trimestre e del 10% rispetto all'anno precedente. Il portafoglio di prestiti strutturati si è attestato a 11,57 miliardi di dollari. L'azienda ha ridotto con successo il proprio rapporto debito/patrimonio dal 4:1 al 3:1 e ha mantenuto liquidità e disponibilità di circa 600 milioni di dollari.
Arbor Realty Trust (NYSE: ABR) reportó los resultados financieros del tercer trimestre de 2024, con un ingreso neto de 58,2 millones de dólares (0,31 dólares por acción), una disminución desde los 77,9 millones de dólares (0,41 dólares por acción) del tercer trimestre de 2023. La empresa declaró un dividendo trimestral de 0,43 dólares por acción. Las originaciones de préstamos de agencias alcanzaron 1,10 mil millones de dólares con un portafolio de servicios de 33,01 mil millones de dólares, un aumento del 2% en comparación con el segundo trimestre y del 10% año tras año. El portafolio de préstamos estructurados se situó en 11,57 mil millones de dólares. La empresa redujo con éxito su ratio de deuda a capital de 4:1 a 3:1 y mantuvo efectivo y liquidez de aproximadamente 600 millones de dólares.
Arbor Realty Trust (NYSE: ABR)는 2024년 3분기 재무 결과를 보고했으며, 순이익은 5820만 달러(주당 0.31달러)로, 2023년 3분기 7790만 달러(주당 0.41달러)에서 감소했습니다. 이 회사는 주당 0.43달러의 분기 배당금을 선언했습니다. 기관 대출 원천화는 11억 달러에 달하며, 서비스 포트폴리오는 330억 1000만 달러로, 2분기 대비 2%, 전년 대비 10% 증가했습니다. 구조화 대출 포트폴리오는 115억 7000만 달러로 집계되었습니다. 이 회사는 부채-자본 비율을 4:1에서 3:1로 성공적으로 줄였으며, 약 6억 달러의 현금과 유동성을 유지했습니다.
Arbor Realty Trust (NYSE: ABR) a publié les résultats financiers du troisième trimestre 2024, avec un revenu net de 58,2 millions de dollars (0,31 dollar par action), en baisse par rapport à 77,9 millions de dollars (0,41 dollar par action) au troisième trimestre 2023. L'entreprise a déclaré un dividende trimestriel de 0,43 dollar par action. Les origines de prêts d'agence ont atteint 1,10 milliard de dollars avec un portefeuille de services de 33,01 milliards de dollars, en hausse de 2 % par rapport au deuxième trimestre et de 10 % d'une année sur l'autre. Le portefeuille de prêts structurés s'élevait à 11,57 milliards de dollars. L'entreprise a réussi à réduire son ratio d'endettement de 4:1 à 3:1 et a maintenu des liquidités d'environ 600 millions de dollars.
Arbor Realty Trust (NYSE: ABR) berichtete über die Finanzergebnisse des dritten Quartals 2024 mit einem Nettoeinkommen von 58,2 Millionen Dollar (0,31 Dollar pro Aktie), ein Rückgang von 77,9 Millionen Dollar (0,41 Dollar pro Aktie) im dritten Quartal 2023. Das Unternehmen erklärte eine vierteljährliche Dividende von 0,43 Dollar pro Aktie. Die Originierungen von Agenturdarlehen beliefen sich auf 1,10 Milliarden Dollar bei einem Serviceportfolio von 33,01 Milliarden Dollar, was einem Anstieg von 2 % im Vergleich zum zweiten Quartal und 10 % im Jahresvergleich entspricht. Das strukturierte Darlehensportfolio betrug 11,57 Milliarden Dollar. Das Unternehmen reduzierte erfolgreich seine Verschuldungsquote von 4:1 auf 3:1 und hielt eine Liquidität von etwa 600 Millionen Dollar.
- Successfully reduced debt-to-equity ratio by 25% from 4:1 to 3:1
- Agency servicing portfolio grew 10% year-over-year to $33.01 billion
- Strong liquidity position with ~$600 million in cash
- Maintained stable dividend at $0.43 per share
- Net income decreased to $0.31 per share from $0.41 year-over-year
- Distributable earnings declined to $0.43 from $0.55 per share year-over-year
- Non-performing loans increased to 26 loans with UPB of $625.4 million from 24 loans in Q2
- Recorded $14.8 million net provision for loan losses
Insights
Arbor Realty Trust's Q3 2024 results show mixed performance with some concerning trends. Net income decreased to
Notable concerns include twenty-six non-performing loans totaling
The maintained dividend of
The loan modification activity is particularly noteworthy, with 24 loans totaling
The reduction in the structured portfolio to
Company Highlights:
- GAAP net income of
$0.31 and distributable earnings of$0.43 , per diluted common share1 - Declares cash dividend on common stock of
$0.43 per share - Successfully delevered the Company
25% from a peak debt to equity ratio of 4:1 in 2023, to 3:1 at 3Q242 - Cash and liquidity of ~
$600 million 3 - Agency loan originations of
$1.10 billion ; a servicing portfolio of ~$33.01 billion , up2% from 2Q24 and10% from a year ago - Structured loan originations of
$258.5 million , runoff of$521.3 million and a portfolio of ~$11.57 billion - In October 2024, issued
$100.0 million of9.00% senior notes due 2027
UNIONDALE, N.Y., Nov. 01, 2024 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE: ABR), today announced financial results for the third quarter ended September 30, 2024. Arbor reported net income for the quarter of
Agency Business
Loan Origination Platform
| Agency Loan Volume (in thousands) | |||||||
| Quarter Ended | |||||||
| September 30, 2024 | June 30, 2024 | ||||||
| Fannie Mae | $ | 616,211 | $ | 742,724 | |||
| Freddie Mac | 378,809 | 346,821 | |||||
| Private Label | 74,162 | 34,714 | |||||
| FHA | 27,457 | — | |||||
| SFR-Fixed Rate | — | 24,996 | |||||
| Total Originations | $ | 1,096,639 | $ | 1,149,255 | |||
| Total Loan Sales | $ | 1,118,977 | $ | 1,135,287 | |||
| Total Loan Commitments | $ | 1,056,490 | $ | 1,099,713 | |||
For the quarter ended September 30, 2024, the Agency Business generated revenues of
At September 30, 2024, loans held-for-sale was
Fee-Based Servicing Portfolio
The Company’s fee-based servicing portfolio totaled
| Fee-Based Servicing Portfolio ($ in thousands) | |||||||||||
| September 30, 2024 | June 30, 2024 | ||||||||||
| UPB | Wtd. Avg. Fee (bps) | Wtd. Avg. Life (years) | UPB | Wtd. Avg. Fee (bps) | Wtd. Avg. Life (years) | ||||||
| Fannie Mae | 46.6 | 6.6 | 46.7 | 7.0 | |||||||
| Freddie Mac | 5,820,026 | 21.9 | 7.1 | 5,587,178 | 22.7 | 7.4 | |||||
| Private Label | 2,619,485 | 18.7 | 5.8 | 2,547,308 | 18.9 | 6.0 | |||||
| FHA | 1,390,766 | 14.2 | 18.9 | 1,369,507 | 14.4 | 18.9 | |||||
| Bridge | 380,379 | 10.9 | 3.0 | 380,547 | 10.9 | 3.4 | |||||
| SFR-Fixed Rate | 275,081 | 20.1 | 4.6 | 279,962 | 20.1 | 4.9 | |||||
| Total | 38.0 | 7.1 | 38.4 | 7.5 | |||||||
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 | |||||||||||||||
| September 30, 2024 | June 30, 2024 | ||||||||||||||
| UPB | % | UPB | % | ||||||||||||
| Bridge: | |||||||||||||||
| Multifamily | $ | 14,500 | 6 | % | $ | 19,650 | 9 | % | |||||||
| SFR | 239,064 | 92 | % | 185,500 | 82 | % | |||||||||
| Land | — | — | % | 10,350 | 4 | % | |||||||||
| 253,564 | 98 | % | 215,500 | 95 | % | ||||||||||
| . | |||||||||||||||
| Mezzanine/Preferred Equity | 4,900 | 2 | % | 11,684 | 5 | % | |||||||||
| Total Originations | $ | 258,464 | 100 | % | $ | 227,184 | 100 | % | |||||||
| Number of Loans Originated | 38 | 45 | |||||||||||||
| Commitments: | |||||||||||||||
| SFR | $ | 374,070 | $ | 277,260 | |||||||||||
| Construction - Multifamily | 47,000 | — | |||||||||||||
| Total Commitments | $ | 421,070 | $ | 277,260 | |||||||||||
| Loan Runoff | $ | 521,341 | $ | 629,641 | |||||||||||
| Structured Portfolio ($ in thousands) | |||||||||||||||
| September 30, 2024 | June 30, 2024 | ||||||||||||||
| UPB | % | UPB | % | ||||||||||||
| Bridge: | |||||||||||||||
| Multifamily | $ | 9,208,954 | 80 | % | $ | 9,679,128 | 82 | % | |||||||
| SFR | 1,783,475 | 15 | % | 1,622,269 | 14 | % | |||||||||
| Other | 176,855 | 2 | % | 176,855 | 1 | % | |||||||||
| 11,169,284 | 97 | % | 11,478,252 | 97 | % | ||||||||||
| Mezzanine/Preferred Equity | 393,168 | 3 | % | 389,981 | 3 | % | |||||||||
| SFR Permanent | 3,086 | <1 | % | 4,975 | <1 | % | |||||||||
| Total Portfolio | $ | 11,565,538 | 100 | % | $ | 11,873,208 | 100 | % | |||||||
At September 30, 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 third quarter of 2024, excluding loan loss reserves, was
During the third quarter of 2024, the Company recorded a
In addition, at September 30, 2024, the Company had ten loans with a total UPB of
During the third quarter of 2024, the Company modified twenty-four loans with a total UPB of
Financing Activity
The balance of debt that finances the Company’s loan and investment portfolio at September 30, 2024 was
The average balance of debt that finances the Company’s loan and investment portfolio for the third quarter of 2024 was
In October 2024, 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) 424-1699 for international callers. Please use participant passcode ABRQ324 when prompted by the operator.
A telephonic replay of the call will be available until November 8, 2024. The replay dial-in numbers are (800) 839-5493 for domestic callers and (402) 220-2552 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, 2023 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.
- Amounts reflect approximate balances as of October 30, 2024.
| Contact: | Arbor Realty Trust, Inc. Paul Elenio, Chief Financial Officer 516-506-4422 pelenio@arbor.com |
| ARBOR REALTY TRUST, INC. AND SUBSIDIARIES Consolidated Statements of Income - (Unaudited) ($ in thousands—except share and per share data) | |||||||||||||||
| Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Interest income | $ | 286,522 | $ | 336,474 | $ | 905,002 | $ | 1,000,159 | |||||||
| Interest expense | 197,710 | 229,180 | 624,613 | 675,749 | |||||||||||
| Net interest income | 88,812 | 107,294 | 280,389 | 324,410 | |||||||||||
| Other revenue: | |||||||||||||||
| Gain on sales, including fee-based services, net | 18,638 | 18,619 | 52,752 | 55,795 | |||||||||||
| Mortgage servicing rights | 13,195 | 14,109 | 37,928 | 48,769 | |||||||||||
| Servicing revenue, net | 31,142 | 35,463 | 92,577 | 97,376 | |||||||||||
| Property operating income | 1,507 | 1,450 | 4,521 | 4,261 | |||||||||||
| Gain (loss) on derivative instruments, net | 822 | (421 | ) | (4,711 | ) | (3,582 | ) | ||||||||
| Other income, net | 2,537 | 173 | 6,955 | 5,099 | |||||||||||
| Total other revenue | 67,841 | 69,393 | 190,022 | 207,718 | |||||||||||
| Other expenses: | |||||||||||||||
| Employee compensation and benefits | 44,881 | 39,810 | 135,411 | 123,518 | |||||||||||
| Selling and administrative | 13,141 | 12,367 | 39,897 | 38,574 | |||||||||||
| Property operating expenses | 1,686 | 1,479 | 4,948 | 4,227 | |||||||||||
| Depreciation and amortization | 1,944 | 2,286 | 6,937 | 7,297 | |||||||||||
| Provision for loss sharing (net of recoveries) | 3,180 | 1,679 | 7,787 | 12,528 | |||||||||||
| Provision for credit losses (net of recoveries) | 16,220 | 18,652 | 64,903 | 55,047 | |||||||||||
| Total other expenses | 81,052 | 76,273 | 259,883 | 241,191 | |||||||||||
| Income before extinguishment of debt, sale of real estate, income from equity affiliates and income taxes | 75,601 | 100,414 | 210,528 | 290,937 | |||||||||||
| Loss on extinguishment of debt | — | (314 | ) | (412 | ) | (1,561 | ) | ||||||||
| Gain on sale of real estate | — | — | 3,813 | — | |||||||||||
| Income from equity affiliates | 3,177 | 809 | 7,388 | 20,694 | |||||||||||
| Provision for income taxes | (5,233 | ) | (5,854 | ) | (12,726 | ) | (19,436 | ) | |||||||
| Net income | 73,545 | 95,055 | 208,591 | 290,634 | |||||||||||
| Preferred stock dividends | 10,342 | 10,342 | 31,027 | 31,027 | |||||||||||
| Net income attributable to noncontrolling interest | 5,028 | 6,789 | 14,119 | 21,200 | |||||||||||
| Net income attributable to common stockholders | $ | 58,175 | $ | 77,924 | $ | 163,445 | $ | 238,407 | |||||||
| Basic earnings per common share | $ | 0.31 | $ | 0.42 | $ | 0.87 | $ | 1.30 | |||||||
| Diluted earnings per common share | $ | 0.31 | $ | 0.41 | $ | 0.86 | $ | 1.28 | |||||||
| Weighted average shares outstanding: | |||||||||||||||
| Basic | 188,513,832 | 187,023,395 | 188,626,263 | 183,340,149 | |||||||||||
| Diluted | 205,347,309 | 221,328,818 | 205,448,479 | 217,457,399 | |||||||||||
| Dividends declared per common share | $ | 0.43 | $ | 0.43 | $ | 1.29 | $ | 1.25 | |||||||
| ARBOR REALTY TRUST, INC. AND SUBSIDIARIES Consolidated Balance Sheets ($ in thousands—except share and per share data) | |||||||
| September 30, 2024 (Unaudited) | December 31, 2023 | ||||||
| Assets: | |||||||
| Cash and cash equivalents | $ | 687,540 | $ | 928,974 | |||
| Restricted cash | 179,906 | 608,233 | |||||
| Loans and investments, net (allowance credit losses of | 11,292,647 | 12,377,806 | |||||
| Loans held-for-sale, net | 326,141 | 551,707 | |||||
| Capitalized mortgage servicing rights, net | 376,403 | 391,254 | |||||
| Securities held-to-maturity, net (allowance credit losses of | 156,027 | 155,279 | |||||
| Investments in equity affiliates | 76,294 | 79,303 | |||||
| Real estate owned, net | 127,926 | 86,991 | |||||
| Due from related party | 96,823 | 64,421 | |||||
| Goodwill and other intangible assets | 88,510 | 91,378 | |||||
| Other assets | 473,241 | 403,290 | |||||
| Total assets | $ | 13,881,458 | $ | 15,738,636 | |||
| Liabilities and Equity: | |||||||
| Credit and repurchase facilities | $ | 3,257,719 | $ | 3,237,827 | |||
| Securitized debt | 5,315,079 | 6,935,010 | |||||
| Senior unsecured notes | 1,246,908 | 1,333,968 | |||||
| Convertible senior unsecured notes | 285,170 | 283,118 | |||||
| Junior subordinated notes to subsidiary trust issuing preferred securities | 144,480 | 143,896 | |||||
| Mortgage notes payable — real estate owned | 35,350 | 44,339 | |||||
| Due to related party | 25,474 | 13,799 | |||||
| Due to borrowers | 56,975 | 121,707 | |||||
| Allowance for loss-sharing obligations | 80,577 | 71,634 | |||||
| Other liabilities | 270,349 | 298,733 | |||||
| Total liabilities | 10,718,081 | 12,484,031 | |||||
| Equity: | |||||||
| Arbor Realty Trust, Inc. stockholders' equity: | |||||||
| Preferred stock, cumulative, redeemable, | 633,684 | 633,684 | |||||
| Special voting preferred shares - 16,293,589 shares | |||||||
| Common stock, | 1,886 | 1,885 | |||||
| Additional paid-in capital | 2,363,259 | 2,367,188 | |||||
| Retained earnings | 34,816 | 115,216 | |||||
| Total Arbor Realty Trust, Inc. stockholders' equity | 3,033,645 | 3,117,973 | |||||
| Noncontrolling interest | 129,732 | 136,632 | |||||
| Total equity | 3,163,377 | 3,254,605 | |||||
| Total liabilities and equity | $ | 13,881,458 | $ | 15,738,636 | |||
| ARBOR REALTY TRUST, INC. AND SUBSIDIARIES Statement of Income Segment Information - (Unaudited) (in thousands) | |||||||||||||||
| Quarter Ended September 30, 2024 | |||||||||||||||
| Structured Business | Agency Business | Other(1) | Consolidated | ||||||||||||
| Interest income | $ | 274,102 | $ | 12,420 | $ | — | $ | 286,522 | |||||||
| Interest expense | 192,945 | 4,765 | — | 197,710 | |||||||||||
| Net interest income | 81,157 | 7,655 | — | 88,812 | |||||||||||
| Other revenue: | |||||||||||||||
| Gain on sales, including fee-based services, net | — | 18,638 | — | 18,638 | |||||||||||
| Mortgage servicing rights | — | 13,195 | — | 13,195 | |||||||||||
| Servicing revenue | — | 48,441 | — | 48,441 | |||||||||||
| Amortization of MSRs | — | (17,299 | ) | — | (17,299 | ) | |||||||||
| Property operating income | 1,507 | — | — | 1,507 | |||||||||||
| Gain on derivative instruments, net | — | 822 | — | 822 | |||||||||||
| Other income, net | 1,364 | 1,173 | — | 2,537 | |||||||||||
| Total other revenue | 2,871 | 64,970 | — | 67,841 | |||||||||||
| Other expenses: | |||||||||||||||
| Employee compensation and benefits | 16,772 | 28,109 | — | 44,881 | |||||||||||
| Selling and administrative | 6,345 | 6,796 | — | 13,141 | |||||||||||
| Property operating expenses | 1,686 | — | — | 1,686 | |||||||||||
| Depreciation and amortization | 1,422 | 522 | — | 1,944 | |||||||||||
| Provision for loss sharing (net of recoveries) | — | 3,180 | — | 3,180 | |||||||||||
| Provision for credit losses (net of recoveries) | 14,788 | 1,432 | — | 16,220 | |||||||||||
| Total other expenses | 41,013 | 40,039 | — | 81,052 | |||||||||||
| Income before income from equity affiliates and income taxes | 43,015 | 32,586 | — | 75,601 | |||||||||||
| Income from equity affiliates | 3,177 | — | — | 3,177 | |||||||||||
| Benefit from (provision for) income taxes | 2,080 | (7,313 | ) | — | (5,233 | ) | |||||||||
| Net income | 48,272 | 25,273 | — | 73,545 | |||||||||||
| Preferred stock dividends | 10,342 | — | — | 10,342 | |||||||||||
| Net income attributable to noncontrolling interest | — | — | 5,028 | 5,028 | |||||||||||
| Net income attributable to common stockholders | $ | 37,930 | $ | 25,273 | $ | (5,028 | ) | $ | 58,175 | ||||||
(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) | |||||||||||
| September 30, 2024 | |||||||||||
| Structured Business | Agency Business | Consolidated | |||||||||
| Assets: | |||||||||||
| Cash and cash equivalents | $ | 212,588 | $ | 474,952 | $ | 687,540 | |||||
| Restricted cash | 161,892 | 18,014 | 179,906 | ||||||||
| Loans and investments, net | 11,292,647 | — | 11,292,647 | ||||||||
| Loans held-for-sale, net | — | 326,141 | 326,141 | ||||||||
| Capitalized mortgage servicing rights, net | — | 376,403 | 376,403 | ||||||||
| Securities held-to-maturity, net | — | 156,027 | 156,027 | ||||||||
| Investments in equity affiliates | 76,294 | — | 76,294 | ||||||||
| Real estate owned, net | 127,926 | — | 127,926 | ||||||||
| Goodwill and other intangible assets | 12,500 | 76,010 | 88,510 | ||||||||
| Other assets and due from related party | 484,921 | 85,143 | 570,064 | ||||||||
| Total assets | $ | 12,368,768 | $ | 1,512,690 | $ | 13,881,458 | |||||
| Liabilities: | |||||||||||
| Debt obligations | $ | 9,965,287 | $ | 319,419 | $ | 10,284,706 | |||||
| Allowance for loss-sharing obligations | — | 80,577 | 80,577 | ||||||||
| Other liabilities and due to related parties | 270,830 | 81,968 | 352,798 | ||||||||
| Total liabilities | $ | 10,236,117 | $ | 481,964 | $ | 10,718,081 | |||||
| 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 September 30, | Nine Months Ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net income attributable to common stockholders | $ | 58,175 | $ | 77,924 | $ | 163,445 | $ | 238,407 | |||||||
| Adjustments: | |||||||||||||||
| Net income attributable to noncontrolling interest | 5,028 | 6,789 | 14,119 | 21,200 | |||||||||||
| Income from mortgage servicing rights | (13,195 | ) | (14,109 | ) | (37,928 | ) | (48,769 | ) | |||||||
| Deferred tax benefit | (2,026 | ) | (2,433 | ) | (8,922 | ) | (6,630 | ) | |||||||
| Amortization and write-offs of MSRs | 18,792 | 18,757 | 56,728 | 58,684 | |||||||||||
| Depreciation and amortization | 2,564 | 3,957 | 8,802 | 12,310 | |||||||||||
| Loss on extinguishment of debt | — | 314 | 412 | 1,561 | |||||||||||
| Provision for credit losses, net | 17,077 | 16,922 | 63,337 | 57,437 | |||||||||||
| (Gain) loss on derivative instruments, net | (1,217 | ) | 1,002 | 4,677 | 2,036 | ||||||||||
| Stock-based compensation | 2,977 | 3,047 | 11,748 | 12,141 | |||||||||||
| Distributable earnings (1) | $ | 88,175 | $ | 112,170 | $ | 276,418 | $ | 348,377 | |||||||
| Diluted distributable earnings per share (1) | $ | 0.43 | $ | 0.55 | $ | 1.35 | $ | 1.74 | |||||||
| Diluted weighted average shares outstanding (1) (2) | 205,347,309 | 204,016,436 | 205,448,479 | 200,185,980 | |||||||||||
(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.
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