$ABR

ARBOR REALTY TRUST INC

CIK:0001253986|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Interest income	$ 230,858	$ 240,303	$ 465,905	$ 480,997
Interest expense	177,761	171,578	352,963	336,829
Net interest income	53,097	68,725	112,942	144,168
Other revenue:
Gain on sales, including fee-based services, net	15,176	13,658	27,681	26,439
Mortgage servicing rights	12,110	10,930	21,770	19,061
Servicing revenue, net	23,879	27,437	49,619	53,040
Property operating income	8,313	5,452	16,373	9,839
Gain on derivative instruments, net	1,041	219	548	3,619
Other income, net	2,260	3,989	4,336	8,407
Total other revenue	62,779	61,685	120,327	120,405
Other expenses:
Employee compensation and benefits	45,096	41,181	92,779	87,217
Selling and administrative	15,868	14,859	32,821	31,171
Property operating expenses	12,670	6,802	24,635	10,276
Depreciation and amortization	5,929	5,848	13,033	9,592
Impairment loss on real estate owned	13,650	0	26,150	0
Provision for loss sharing, net	13,472	4,215	18,009	6,002
Provision for credit losses, net	38,163	19,004	43,979	28,079
Total other expenses	144,848	91,909	251,406	172,337
(Loss) income before extinguishment of debt, gain (loss) on real estate, income from equity affiliates and income taxes	(28,972)	38,501	(18,137)	92,236
Loss on extinguishment of debt	0	0	0	(2,319)
Gain (loss) on real estate	64	(1,448)	(2,073)	(4,258)
Income from equity affiliates	1,893	2,654	6,304	1,020
Provision for income taxes	(3,150)	(3,398)	(5,235)	(6,989)
Net (loss) income	(30,165)	36,309	(19,141)	79,690
Preferred stock dividends	10,342	10,342	20,684	20,684
Net (loss) income attributable to noncontrolling interest	(3,165)	2,015	(3,112)	4,617
Net (loss) income attributable to common stockholders	$ (37,342)	$ 23,952	$ (36,713)	$ 54,389
Earnings per common share
Basic (loss) earnings per common share (in dollars per share)	$ (0.20)	$ 0.12	$ (0.19)	$ 0.28
Diluted (loss) earnings per common share (in dollars per share)	$ (0.20)	$ 0.12	$ (0.19)	$ 0.28
Weighted average shares outstanding:
Basic (in shares)	190,806,800	192,236,206	192,491,494	191,154,501
Diluted (in shares)	190,806,800	209,003,002	192,491,494	207,938,574
Dividends declared per common share (in dollars per share)	$ 0.17	$ 0.30	$ 0.47	$ 0.73

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Operating activities:
Net (loss) income	$ (30,165)	$ 36,309	$ (19,141)	$ 79,690
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	5,929	5,848	13,033	9,592
Stock-based compensation			9,089	8,545
Amortization and accretion of interest and fees, net			6,416	6,549
Originations of loans held-for-sale			(1,784,340)	(1,467,283)
Proceeds from sales of loans held-for-sale, net of gain on sale			1,814,410	1,537,874
Payoffs and paydowns of loans held-for-sale			69	6,503
Mortgage servicing rights	(12,110)	(10,930)	(21,770)	(19,061)
Amortization of capitalized mortgage servicing rights	18,247	17,767	36,540	35,525
Write-off of capitalized mortgage servicing rights from payoffs			3,893	5,164
Provision for loss sharing, net	13,472	4,215	18,009	6,002
Provision for credit losses, net	38,163	19,004	43,979	28,079
Charge-offs and advances, net of reimbursements			3,310	605
Deferred tax benefit	(2,211)	(1,603)	(4,791)	(1,741)
Income from equity affiliates	(1,893)	(2,654)	(6,304)	(1,020)
Distributions from operations of equity affiliates			9,104	4,138
Loss on extinguishment of debt	0	0	0	2,319
Impairment loss on real estate owned	13,650	0	26,150	0
Change in fair value of held-for-sale loans			412	(2,788)
Gain on derivative instruments, net			(548)	(3,619)
Loss on real estate	(64)	1,448	2,073	4,258
Changes in operating assets and liabilities			379	(28,734)
Net cash provided by operating activities			149,972	210,597
Investing Activities:
Loans and investments funded, originated and purchased, net			(1,575,738)	(1,484,429)
Payoffs and paydowns of loans and investments			1,491,887	962,014
Deferred fees			11,084	16,002
Contributions to equity affiliates			(28,251)	(6,507)
Distributions from equity affiliates			656	7,905
Payoffs and paydowns of securities held-to-maturity			0	121
Investment in real estate, net			(27,925)	(14,007)
Change in due to borrowers and reserves			(100)	(3,224)
Net cash used in investing activities			(128,387)	(522,125)
Financing activities:
Proceeds from credit and repurchase facilities			5,672,204	4,936,438
Payoffs and paydowns of credit and repurchase facilities			(4,981,763)	(3,774,678)
Proceeds from issuance of securitized debt			818,344	491,416
Payoffs and paydowns of securitized debt			(1,312,080)	(1,599,961)
Payoffs and paydowns of senior unsecured notes			(175,000)	0
Proceeds from notes payable - REO			41,736	177,534
Payoffs and paydowns of notes payable - REO			(24,454)	(67,812)
Proceeds from issuance of common stock			0	30,801
Repurchase of common stock			(51,583)	0
Redemption of operating partnership units			0	(1,577)
Payments of withholding taxes on net settlement of vested stock			(2,344)	(3,125)
Distributions to stockholders and noncontrolling interest			(118,819)	(172,441)
Payment of deferred financing costs			(12,141)	(18,560)
Net cash used in financing activities			(145,900)	(1,965)
Net decrease in cash, cash equivalents and restricted cash			(124,315)	(313,493)
Cash, cash equivalents and restricted cash at beginning of period			550,222	660,179
Cash, cash equivalents and restricted cash at end of period	425,907	346,686	425,907	346,686
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents at beginning of period			482,875	503,803
Restricted cash at beginning of period			67,347	156,376
Cash, cash equivalents and restricted cash at beginning of period			550,222	660,179
Cash and cash equivalents at end of period	287,525	255,742	287,525	255,742
Restricted cash at end of period	138,382	90,944	138,382	90,944
Cash, cash equivalents and restricted cash at end of period	$ 425,907	$ 346,686	425,907	346,686
Supplemental cash flow information:
Cash used to pay interest			341,865	325,903
Cash used to pay taxes			1,704	11,122
Supplemental schedule of non-cash investing and financing activities:
Real estate acquired in settlement of loans and investments, net			169,844	355,954
Settlement of loans and investments, net of real estate			(174,318)	(376,059)
Derecognition of real estate owned			113,806	175,882
Loan funded in conjunction with real estate sold			(107,760)	(183,955)
Distributions accrued on preferred stock			$ 10,342	$ 7,010

CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands

Jun. 30, 2026

Dec. 31, 2025

Assets:

Cash and cash equivalents

$ 287,525

$ 482,875

Restricted cash

138,382

67,347

Loans and investments, net (allowance for credit losses of $163,431 and $145,971)

11,915,216

11,934,248

Loans held-for-sale, net

375,797

409,081

Capitalized mortgage servicing rights, net

323,887

340,842

Securities held-to-maturity, net (allowance for credit losses of $14,343 and $17,013)

157,137

156,087

Investments in equity affiliates

82,762

57,966

Real estate owned, net

545,946

498,938

Goodwill and other intangible assets

85,770

86,553

Other assets

440,403

460,966

Total assets

^[1]

14,352,825

14,494,903

Liabilities:

Credit and repurchase facilities

5,812,258

5,149,651

Securitized debt

2,972,246

3,468,258

Senior unsecured notes

1,857,769

2,029,078

Junior subordinated notes to subsidiary trust issuing preferred securities

145,907

145,497

Notes payable - real estate owned

270,410

222,965

Due to borrowers

27,562

33,451

Allowance for loss-sharing obligations

118,898

97,579

Other liabilities

266,752

281,271

Total liabilities

^[1]

11,471,802

11,427,750

Commitments and contingencies (Note 14)

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

Common stock, $0.01 par value: 500,000,000 shares authorized - 188,981,757 and 195,491,855 shares issued and outstanding

1,890

1,955

Additional paid-in capital

2,409,539

2,454,312

Accumulated deficit

(267,177)

(136,597)

Total Arbor Realty Trust, Inc. stockholders' equity

2,777,935

2,953,353

Noncontrolling interest

103,088

113,800

Total equity

2,881,023

3,067,153

Total liabilities and equity

$ 14,352,825

$ 14,494,903

[1]

Our consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs,") as we are the primary beneficiary of these VIEs. At June 30, 2026 and December 31, 2025, assets of our consolidated VIEs totaled $3,790,046 and $4,662,021, respectively, and the liabilities of our consolidated VIEs totaled $2,978,886 and $3,477,848, respectively. See Note 15 for discussion of our VIEs.