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

Company Highlights: GAAP net income of $0.12 per diluted common shareDistributable earnings1 of $0.25, or $0.30 per diluted common share, excluding $10.5 million of realized losses from the sale of two real estate owned propertiesDeclares cash dividend on common stock of $0.30 per shareSignificant improvements to the right side of our balance sheet: Closed our first build-to-rent collateralized securitization vehicle totaling $801.9 million with improved terms over our warehouse linesIn July 2025, issued $500.0 million of 7.875% senior unsecured notes due 2030 to repay $287.5 million of convertible senior notes and add ~$200 million of liquidity Servicing portfolio of ~$33.76 billion, agency loan originations of $857.1 millionStructured loan portfolio of ~$11.61 billion, originations of $716.5 million and runoff of $519.7 millionForeclosed on six loans totaling $188.2 million and sold four real estate owned properties totaling $114.5 million UNIONDALE, N.Y., Aug. 01, 2025 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE: ABR), today announced financial results for the second quarter ended June 30, 2025. Arbor reported net income for the quarter of $24.0 million, or $0.12 per diluted common share, compared to net income of $47.4 million, or $0.25 per diluted common share for the quarter ended June 30, 2024. Distributable earnings for the quarter was $52.1 million, or $0.25 per diluted common share, compared to $91.6 million, or $0.45 per diluted common share for the quarter ended June 30, 2024. Agency Business Loan Origination Platform Agency Loan Volume (in thousands) Quarter Ended June 30, 2025 March 31, 2025Fannie Mae$683,206 $357,811Freddie Mac 150,339 178,020Private Label — 44,925FHA — 16,041SFR-Fixed Rate 23,552 9,111Total Originations$857,097 $605,908 Total Loan Sales$807,020 $730,854 Total Loan Commitments$852,766 $645,401 For the quarter ended June 30, 2025, the Agency Business generated revenues of $64.5 million, compared to $62.9 million for the first quarter of 2025. Gain on sales, including fee-based services, net was $13.7 million for the quarter, reflecting a margin of 1.69%, compared to $12.8 million and 1.75% for the first quarter of 2025. Income from mortgage servicing rights was $10.9 million for the quarter, reflecting a rate of 1.28% as a percentage of loan commitments, compared to $8.1 million and 1.26% for the first quarter of 2025. At June 30, 2025, loans held-for-sale was $361.4 million, with financing associated with these loans totaling $329.5 million. Fee-Based Servicing Portfolio The Company’s fee-based servicing portfolio totaled $33.76 billion at June 30, 2025. Servicing revenue, net was $27.4 million for the quarter and consisted of servicing revenue of $45.2 million, net of amortization of mortgage servicing rights totaling $17.8 million. Fee-Based Servicing Portfolio ($ in thousands) June 30, 2025 March 31, 2025 UPB Wtd. Avg. Fee (bps) Wtd. Avg. Life (years) UPB Wtd. Avg. Fee (bps) Wtd. Avg. Life (years)Fannie Mae$22,999,772 45.8 5.9 $22,683,885 46.2 6.2Freddie Mac 6,100,091 21.3 6.5 6,123,074 21.4 6.6Private Label 2,599,971 18.7 5.0 2,603,122 18.7 5.3FHA 1,497,551 14.0 19.9 1,519,675 14.0 19.0SFR-Fixed Rate 287,065 20.0 4.2 276,839 20.1 4.1Bridge 278,116 10.4 2.6 278,293 10.4 2.8Total$33,762,566 37.4 6.5 $33,484,888 37.5 6.7 Loans sold under the Fannie Mae program contain an obligation to partially guarantee the performance of the loan (“loss-sharing obligations”) and includes $35.0 million for the fair value of the guarantee obligation undertaken at June 30, 2025. The Company recorded a $4.0 million net provision for loss sharing associated with CECL for the second quarter of 2025. At June 30, 2025, the Company’s total CECL allowance for loss-sharing obligations was $54.8 million, representing 0.24% of the Fannie Mae servicing portfolio. Structured Business Portfolio and Investment Activity Structured Portfolio Activity ($ in thousands) Quarter Ended June 30, 2025 March 31, 2025 UPB % UPB % Bridge: Multifamily$103,300 14% $367,750 49%SFR 530,986 74% 356,294 48% 634,286 88% 724,044 97% . Mezzanine/Preferred Equity 6,999 1% 4,440 1%Construction - Multifamily 75,259 11% 18,637 2%Total Originations$716,544 100% $747,121 100% Number of Loans Originated 19 20 Commitments: SFR$232,384 $162,400 Construction - Multifamily 173,000 92,000 Total Commitments$405,384 $254,400 Loan Runoff$519,709 $421,941 Structured Portfolio ($ in thousands) June 30, 2025 March 31, 2025 UPB % UPB % Bridge: Multifamily$8,404,597 72% $8,637,773 75%SFR 2,531,841 22% 2,247,817 20%Other 169,025 2% 171,952 1% 11,105,463 96% 11,057,542 96% Mezzanine/Preferred Equity 400,634 3% 405,770 4%Construction - Multifamily 100,070 1% 23,005 <1%SFR Permanent 3,068 <1% 3,076 <1%Total Portfolio$11,609,235 100% $11,489,393 100% At June 30, 2025, the loan and investment portfolio’s unpaid principal balance ("UPB"), excluding loan loss reserves, was $11.61 billion, with a weighted average interest rate of 7.03%, compared to $11.49 billion and 6.94% at March 31, 2025. Including certain fees earned and costs associated with the loan and investment portfolio, the weighted average interest rate was 7.86% at June 30, 2025, compared to 7.85% at March 31, 2025. The average balance of the Company’s loan and investment portfolio during the second quarter of 2025, excluding loan loss reserves, was $11.53 billion with a weighted average yield of 7.95%, compared to $11.39 billion and 8.15% for the first quarter of 2025. The decrease in yield was primarily due to non-performing and foreclosed on loans in the second quarter of 2025. During the second quarter of 2025, the Company recorded a $16.1 million net provision for loan losses associated with CECL. At June 30, 2025, the Company’s total allowance for loan losses was $243.3 million. The Company had nineteen non-performing loans with a UPB of $471.8 million, before related loan loss reserves of $36.4 million, compared to twenty-three loans with a UPB of $511.1 million, before loan loss reserves of $35.3 million at March 31, 2025. In addition, at June 30, 2025, the Company had three loans with a total UPB of $56.9 million that were less than 60 days past due classified as non-accrual, compared to five loans with a total UPB of $142.8 million (before related loan loss reserves of $7.3 million) at March 31, 2025. Interest income on these loans is only being recorded to the extent cash is received. During the second quarter of 2025, the Company modified eight loans to borrowers experiencing financial difficulty with a total UPB of $251.9 million, primarily all of which had borrowers investing additional capital to recapitalize their deals. Six of these loans with a total UPB of $144.9 million, contained interest rates based on pricing over SOFR ranging from 3.25% to 4.50% and were modified to provide temporary rate relief through a pay and accrual feature. At June 30, 2025, these modified loans had a weighted average pay rate of 5.50% and a weighted average accrual rate of 2.78%. In addition, of the total modified loans for the second quarter, $47.7 million were less than 60 days past due and $11.2 million were non-performing at March 31, 2025, and are now current in accordance with their modified terms. Financing Activity The balance of debt that finances the Company’s loan and investment portfolio at June 30, 2025 was $9.61 billion with a weighted average interest rate including fees of 6.88%, as compared to $9.49 billion and a rate of 6.82% at March 31, 2025. The average balance of debt that finances the Company’s loan and investment portfolio for the second quarter of 2025 was $9.52 billion, as compared to $9.42 billion for the first quarter of 2025. The average cost of borrowings for the second quarter of 2025 was 6.99%, compared to 6.96% for the first quarter of 2025. In May 2025, the Company completed its first build-to-rent collateralized securitization vehicle totaling $801.9 million, of which $682.6 million consisted of investment grade notes, with the Company retaining subordinate interests in the vehicle of $119.3 million and $41.0 million of the investment grade notes. The vehicle included $50 million in ramp-up capacity for acquiring additional loans within 180 days of closing, a two-year replenishment period and a $200 million senior revolving note to support construction advances and future reinvestment during the replenishment period. The investment grade-rated notes placed with investors had an initial weighted average spread of 2.48% over SOFR, excluding fees and transaction costs. In July 2025, the Company issued $500.0 million of its 7.875% senior unsecured notes due July 2030 through a private offering. The Company is using the net proceeds of this offering to pay down debt and for general corporate purposes. Dividend The Company announced today that its Board of Directors has declared a quarterly cash dividend of $0.30 per share of common stock for the quarter ended June 30, 2025. The dividend is payable on August 29, 2025 to common stockholders of record on August 15, 2025. Earnings Conference Call The Company will host a conference call today at 10:00 a.m. Eastern Time. A live webcast and replay of the conference call will be available at www.arbor.com in the investor relations section of the Company’s website, or you can access the call telephonically at least ten minutes prior to the conference call. The dial-in numbers are (800) 343-4136 for domestic callers and (203) 518-9843 for international callers. Please use participant passcode ABRQ225 when prompted by the operator. A telephonic replay of the call will be available until August 8, 2025. The replay dial-in numbers are (800) 839-8531 for domestic callers and (402) 220-6074 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 two pages of this release. ARBOR REALTY TRUST, INC. AND SUBSIDIARIESConsolidated Statements of Income - (Unaudited)($ in thousands—except share and per share data) Quarter Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Interest income$240,303 $297,188 $480,997 $618,480 Interest expense 171,578 209,227 336,829 426,903 Net interest income 68,725 87,961 144,168 191,577 Other revenue: Gain on sales, including fee-based services, net 13,658 17,448 26,439 34,114 Mortgage servicing rights 10,930 14,534 19,061 24,733 Servicing revenue, net 27,437 29,910 53,040 61,436 Property operating income 5,452 1,444 9,839 3,014 Gain (loss) on derivative instruments, net 219 (275) 3,619 (5,533)Other income, net 3,989 2,081 8,407 4,414 Total other revenue 61,685 65,142 120,405 122,178 Other expenses: Employee compensation and benefits 41,181 42,836 87,217 90,529 Selling and administrative 14,859 12,823 31,171 26,756 Property operating expenses 6,802 1,584 10,276 3,262 Depreciation and amortization 5,848 2,423 9,592 4,994 Provision for loss sharing (net of recoveries) 4,215 4,333 6,002 4,607 Provision for credit losses (net of recoveries) 19,004 29,564 28,079 48,682 Total other expenses 91,909 93,563 172,337 178,830 Income before extinguishment of debt, (loss) gain on real estate, income from equity affiliates and income taxes 38,501 59,540 92,236 134,925 Loss on extinguishment of debt — (412) (2,319) (412)(Loss) gain on real estate (1,448) 3,813 (4,258) 3,813 Income from equity affiliates 2,654 2,793 1,020 4,211 Provision for income taxes (3,398) (3,901) (6,989) (7,493)Net income 36,309 61,833 79,690 135,044 Preferred stock dividends 10,342 10,342 20,684 20,684 Net income attributable to noncontrolling interest 2,015 4,094 4,617 9,090 Net income attributable to common stockholders$23,952 $47,397 $54,389 $105,270 Basic earnings per common share$0.12 $0.25 $0.28 $0.56 Diluted earnings per common share$0.12 $0.25 $0.28 $0.56 Weighted average shares outstanding: Basic 192,236,206 188,655,801 191,154,501 188,683,095 Diluted 209,003,002 205,487,711 207,938,574 205,499,619 Dividends declared per common share$0.30 $0.43 $0.73 $0.86 ARBOR REALTY TRUST, INC. AND SUBSIDIARIESConsolidated Balance Sheets($ in thousands—except share and per share data) June 30, 2025 (Unaudited) December 31, 2024Assets: Cash and cash equivalents$255,742 $503,803Restricted cash 90,944 156,376Loans and investments, net (allowance for credit losses of $243,278 and $238,967) 11,333,023 11,033,997Loans held-for-sale, net 361,447 435,759Capitalized mortgage servicing rights, net 348,326 368,678Securities held-to-maturity, net (allowance for credit losses of $13,659 and $10,846) 156,920 157,154Investments in equity affiliates 71,796 76,312Real estate owned, net 365,186 176,543Due from related party 16,773 12,792Goodwill and other intangible assets 87,336 88,119Other assets 475,546 481,448Total assets$13,563,039 $13,490,981 Liabilities and Equity: Credit and repurchase facilities$4,721,622 $3,559,490Securitized debt 3,510,865 4,622,489Senior unsecured notes 1,238,174 1,236,147Convertible senior unsecured notes 287,258 285,853Junior subordinated notes to subsidiary trust issuing preferred securities 145,085 144,686Mortgage notes payable — real estate owned 184,618 74,897Due to related party 3,396 4,474Due to borrowers 36,780 47,627Allowance for loss-sharing obligations 89,757 83,150Other liabilities 251,621 280,198Total liabilities 10,469,176 10,339,011 Equity: Arbor Realty Trust, Inc. stockholders' equity: Preferred stock, cumulative, redeemable, $0.01 par value: 100,000,000 shares authorized, shares issued and outstanding by period: 633,682 633,684Special voting preferred shares - 16,173,761 and 16,293,589 shares 6.375% Series D - 9,200,000 shares 6.25% Series E - 5,750,000 shares 6.25% Series F - 11,342,000 shares Common stock, $0.01 par value: 500,000,000 shares authorized - 192,301,414 and 189,259,435 shares issued and outstanding 1,922 1,893Additional paid-in capital 2,411,661 2,375,469(Accumulated deficit) retained earnings (72,521) 13,039Total Arbor Realty Trust, Inc. stockholders' equity 2,974,744 3,024,085Noncontrolling interest 119,119 127,885Total equity 3,093,863 3,151,970Total liabilities and equity$13,563,039 $13,490,981 ARBOR REALTY TRUST, INC. AND SUBSIDIARIESStatement of Income Segment Information - (Unaudited)(in thousands) Quarter Ended June 30, 2025 StructuredBusiness AgencyBusiness Other (1) ConsolidatedInterest income$229,980 $10,323 $— $240,303 Interest expense 165,858 5,720 — 171,578 Net interest income 64,122 4,603 — 68,725 Other revenue: Gain on sales, including fee-based services, net — 13,658 — 13,658 Mortgage servicing rights — 10,930 — 10,930 Servicing revenue — 45,204 — 45,204 Amortization of MSRs — (17,767) — (17,767)Property operating income 5,452 — — 5,452 Gain on derivative instruments, net — 219 — 219 Other income, net 2,105 1,884 — 3,989 Total other revenue 7,557 54,128 — 61,685 Other expenses: Employee compensation and benefits 16,018 25,163 — 41,181 Selling and administrative 7,590 7,269 — 14,859 Property operating expenses 6,802 — — 6,802 Depreciation and amortization 5,456 392 — 5,848 Provision for loss sharing — 4,215 — 4,215 Provision for credit losses (net of recoveries) 16,112 2,892 — 19,004 Total other expenses 51,978 39,931 — 91,909 Income before loss on real estate, income from equity affiliates and income taxes 19,701 18,800 — 38,501 Loss on real estate (1,448) — — (1,448)Income from equity affiliates 2,654 — — 2,654 Provision for income taxes (1,277) (2,121) — (3,398)Net income 19,630 16,679 — 36,309 Preferred stock dividends 10,342 — — 10,342 Net income attributable to noncontrolling interest — — 2,015 2,015 Net income attributable to common stockholders$9,288 $16,679 $(2,015) $23,952 (1) Includes income allocated to the noncontrolling interest holders not allocated to the two reportable segments. ARBOR REALTY TRUST, INC. AND SUBSIDIARIESBalance Sheet Segment Information - (Unaudited)(in thousands) June 30, 2025 Structured Business Agency Business ConsolidatedAssets: Cash and cash equivalents$65,771 $189,971 $255,742Restricted cash 63,713 27,231 90,944Loans and investments, net 11,333,023 — 11,333,023Loans held-for-sale, net — 361,447 361,447Capitalized mortgage servicing rights, net — 348,326 348,326Securities held-to-maturity, net — 156,920 156,920Investments in equity affiliates 71,796 — 71,796Real estate owned, net 365,186 — 365,186Goodwill and other intangible assets 12,500 74,836 87,336Other assets and due from related party 411,439 80,880 492,319Total assets$12,323,428 $1,239,611 $13,563,039 Liabilities: Debt obligations$9,758,138 $329,484 $10,087,622Allowance for loss-sharing obligations — 89,757 89,757Other liabilities and due to related parties 219,877 71,920 291,797Total liabilities$9,978,015 $491,161 $10,469,176 ARBOR REALTY TRUST, INC. AND SUBSIDIARIESReconciliation of Distributable Earnings to GAAP Net Income - (Unaudited)($ in thousands—except share and per share data) Quarter Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income attributable to common stockholders$23,952 $47,397 $54,389 $105,270 Adjustments: Net income attributable to noncontrolling interest 2,015 4,094 4,617 9,090 Income from mortgage servicing rights (10,930) (14,534) (19,061) (24,733)Deferred tax benefit (1,603) (2,944) (1,741) (6,896)Amortization and write-offs of MSRs 19,825 19,518 40,689 37,936 Depreciation and amortization 6,582 3,044 11,149 6,239 Loss on extinguishment of debt — 412 2,319 412 Provision for credit losses, net 8,435 31,457 9,192 46,260 (Gain) loss on derivative instruments, net (674) 371 (5,371) 5,894 Loss on real estate 1,857 — 4,667 — Stock-based compensation 2,610 2,750 8,545 8,772 Distributable earnings (1)$52,069 $91,565 $109,394 $188,244 Diluted distributable earnings per share (1)$0.25 $0.45 $0.53 $0.92 Diluted weighted average shares outstanding (1) (2) 209,003,002 205,487,711 207,938,574 205,499,619 (1) Amounts are attributable to common stockholders and OP Unit holders. The OP Units are redeemable for cash, or at the Company's option for shares of the Company's common stock on a one-for-one basis. (2) The diluted weighted average shares outstanding exclude the potential shares issuable upon conversion and settlement of the Company's convertible senior notes principal balance. The Company is presenting distributable earnings because management believes it is an important supplemental measure of the Company's operating performance and is useful to investors, analysts and other parties in the evaluation of REITs and their ability to provide dividends to stockholders. Dividends are one of the principal reasons investors invest in REITs. To maintain REIT status, REITs are required to distribute at least 90% of their REIT-taxable income. The Company considers distributable earnings in determining its quarterly dividend and believes that, over time, distributable earnings is a useful indicator of the Company's dividends per share. The Company defines distributable earnings as net income (loss) attributable to common stockholders computed in accordance with GAAP, adjusted for accounting items such as depreciation and amortization (adjusted for unconsolidated joint ventures), non-cash stock-based compensation expense, income from MSRs, amortization and write-offs of MSRs, gains/losses on derivative instruments primarily associated with Private Label loans not yet sold and securitized, changes in fair value of GSE-related derivatives that temporarily flow through earnings, deferred tax provision (benefit), CECL provisions for credit losses (adjusted for realized losses as described below) and gains/losses on the receipt of real estate from the settlement of loans (prior to the sale of the real estate). The Company also adds back one-time charges such as acquisition costs and one-time gains/losses on the early extinguishment of debt and redemption of preferred stock. The Company reduces distributable earnings for realized losses in the period management determines that a loan is deemed nonrecoverable in whole or in part. Loans are deemed nonrecoverable upon the earlier of: (1) when the loan receivable is settled (i.e., when the loan is repaid, or in the case of foreclosure, when the underlying asset is sold); or (2) when management determines that it is nearly certain that all amounts due will not be collected. The realized loss amount is equal to the difference between the cash received, or expected to be received, and the book value of the asset. Distributable earnings is not intended to be an indication of the Company's cash flows from operating activities (determined in accordance with GAAP) or a measure of its liquidity, nor is it entirely indicative of funding the Company's cash needs, including its ability to make cash distributions. The Company's calculation of distributable earnings may be different from the calculations used by other companies and, therefore, comparability may be limited.

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

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