For the quarter ended March 2025, Arbor Realty Trust (ABR) reported revenue of $240.69 million, down 25.1% over the same period last year. EPS came in at $0.28, compared to $0.47 in the year-ago quarter.The reported revenue represents a surprise of -1.45% over the Zacks Consensus Estimate of $244.25 million. With the consensus EPS estimate being $0.35, the EPS surprise was -20.00%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to det ...

Arbor Realty Trust (ABR) came out with quarterly earnings of $0.28 per share, missing the Zacks Consensus Estimate of $0.35 per share. This compares to earnings of $0.47 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -20%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.42 per share when it actually produced earnings of $0.40, delivering a surprise of -4.76%.Over the last four q ...

Financial Data and Key Metrics Changes - The company reported distributable earnings of $57.3 million or $0.28 per share, and $0.31 per share excluding one-time realized losses from the sale of two REO assets [19] - The return on equity (ROE) for the first quarter was approximately 10% [19] - The company anticipates a quarterly distributable earnings guidance of $0.30 to $0.35 for 2025 [19] Business Line Data and Key Metrics Changes - The balance sheet lending platform originated $370 million in new bridge loans during the first quarter, with a full-year guidance of $1.5 billion to $2 billion [12][13] - The agency business had a slow first quarter, producing $6 million in originations and $731 million in loan sales, maintaining strong margins of 1.75% [25] - The investment portfolio grew to $11.5 billion at March 31, with an all-in yield of 7.85% [26] Market Data and Key Metrics Changes - The company experienced a reduction in delinquencies, down 20% to $654 million at March 31 compared to $819 million at December 31 [22] - The average yield on core investments decreased to 8.15% from 8.52% due to a reduction in the average SOFR rate [26] - The overall net interest spread in core assets decreased to 1.26% from 1.44% [28] Company Strategy and Development Direction - The company is focused on resolving REO assets and delinquencies, viewing 2025 as a transitional year to set up for growth in 2026 [18] - The company plans to leverage efficiencies in the securitization market to drive higher returns on capital [6][18] - The strategy includes repositioning underperforming assets to improve occupancy and net operating income (NOI) [11] Management's Comments on Operating Environment and Future Outlook - Management noted significant uncertainty and volatility in the interest rate environment, impacting the ability to predict future performance [8] - The company expects continued challenges in the short term due to the drag on earnings from REO assets and delinquencies [12] - If interest rates decrease, it could positively impact the company's ability to convert non-interest earning assets into income-producing investments [11] Other Important Information - The company has successfully modified $38 million of loans and brought $39 million of loans back to full performance [10] - The company took back $197 million of REO assets in the first quarter, with expectations to increase REO assets to between $400 million and $500 million [52] - The company has managed to deleverage its business by 30%, reducing the leverage ratio to 2.8:1 [29] Q&A Session Summary Question: Outlook for the Bridge Loan Portfolio - Management expects net growth in the bridge loan portfolio in 2025, targeting $1.5 billion to $2 billion in new business [32][34] Question: Reasons for Poor Performance in Previous Vintages - Management attributed poor performance to a combination of market corrections, economic factors, and inexperienced management in the multifamily sector [40][42] Question: Liquidity and NPLs Expectations - The company currently has $325 million in cash and liquidity, with expectations for NPLs to decrease as they work through the REO assets [48][54] Question: Non-Cash Income and Interest - The company reported $15.3 million of non-cash interest during the quarter, which is a moving number based on loan modifications [65][66] Question: Interest Rate Environment - Management discussed the impact of interest rates on business performance, noting that lower rates could enhance earnings potential [72][74]

Loan Originations and Portfolio Performance - Loan originations totaled $605.9 million, while the fee-based servicing portfolio increased slightly to $33.48 billion[290]. - The structured loan and investment portfolio balance increased to $11.49 billion from $11.30 billion, driven by loan originations exceeding loan runoff by $325.2 million[301]. - The company originated loans totaling $747.1 million in Q1 2025, with a weighted average interest rate of 8.64%[303]. - The company experienced a decrease in loan originations and an increase in loan delinquencies due to the prolonged high interest rate environment[296]. - Delinquent loans totaled $582.5 million as of March 31, 2025, compared to $524.5 million at December 31, 2024[309]. Financial Performance - Net income attributable to common stockholders for Q1 2025 was $30.4 million, down $27.4 million (47%) from $57.9 million in Q1 2024[312]. - Interest income for Q1 2025 was $240.7 million, a decrease of $80.6 million (25%) compared to Q1 2024[312]. - Distributable earnings for Q1 2025 were $57.3 million, a decrease of 40.7% from $96.7 million in Q1 2024[359]. - The decrease in gain on sales, including fee-based services, was primarily due to a 33% decrease in loan sales volume, amounting to $354.5 million[318]. - The decrease in income from mortgage servicing rights (MSRs) was primarily due to a 31% decrease in loan commitment volume, totaling $288.8 million[319]. Interest Rates and Economic Conditions - The Federal Reserve lowered the federal funds rate three times in 2024, totaling a reduction of 100 basis points, which may continue to impact net interest income[291]. - The current high interest rate environment may lead to decreased origination volumes and increased delinquencies, potentially affecting future financial performance[350]. - The weighted average current interest pay rate for the portfolio was 6.94%, with a weighted average funding cost of 6.47%[302]. Asset Management and Debt - The company modified 21 loans with a total unpaid principal balance (UPB) of $949.8 million, with 19 borrowers investing additional capital for temporary rate relief[294]. - Credit and repurchase facilities increased by $1.22 billion, primarily due to refinancing loans from the unwind of two CLOs with a new $1.15 billion repurchase facility[304]. - Securitized debt decreased by $1.34 billion, mainly due to the unwind of CLO 14 and CLO 19 totaling $1.08 billion and paydowns on remaining securitizations of $260.1 million[304]. - Total structured debt outstanding was $9.49 billion as of March 31, 2025, with 52% or $4.98 billion not containing mark-to-market provisions[334]. Cash Flow and Liquidity - Cash flows provided by operating activities totaled $150.5 million for the three months ended March 31, 2025, driven by net cash inflows from loan sales[337]. - Cash flows used in investing activities amounted to $314.8 million, primarily due to loan originations of $733.1 million[338]. - Cash flows used in financing activities totaled $146.5 million, including $1.34 billion in payoffs on securitizations[339]. - The company had approximately $315 million in cash and liquidity as of April 29, 2025, alongside a $33.48 billion agency servicing portfolio generating $126 million annually[335]. Regulatory and Market Environment - The FHFA set 2025 Caps for Fannie Mae and Freddie Mac at $73 billion each, totaling $146 billion, an increase from 2024 Caps[300]. - The ongoing adverse economic conditions have created liquidity constraints, impacting the ability to execute investments on attractive terms[330]. - The company is subject to REIT distribution requirements, mandating at least 90% of REIT-taxable income to be distributed annually, impacting its ability to retain earnings[336].

Arbor Realty Trust Reports First Quarter 2025 Results and Declares Dividend of $0.30 per Share Company Highlights: Uniondale, NY, May 2, 2025 -- Arbor Realty Trust, Inc. (NYSE: ABR), today announced financial results for the first quarter ended March 31, 2025. Arbor reported net income for the quarter of $30.4 million, or $0.16 per diluted common share, compared to net income of $57.9 million, or $0.31 per diluted common share for the quarter ended March 31, 2024. Distributable earnings for the quarter was ...

Company Highlights: GAAP net income of $0.16 per diluted common shareDistributable earnings1 of $0.28, or $0.31 per diluted common share, excluding $7.1 million of realized losses from the sale of two real estate owned properties that were previously reservedDeclares cash dividend on common stock of $0.30 per shareClosed on a new $1.15 billion repurchase facility to unwind in full two CLO vehicles; enhancing leverage, reducing pricing and generated ~$80 million of additional liquidityServicing portfolio of ...

UNIONDALE, N.Y., April 25, 2025 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE: ABR), today announced that it is scheduled to release first quarter 2025 financial results before the market opens on Friday, May 2, 2025. The Company will host a conference call to review the results at 10:00 a.m. Eastern Time on May 2, 2025. 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. Those without web access should access t ...

Core Viewpoint - Arbor Realty Trust (NYSE: ABR) has undergone multiple rating changes, initially rated as a Buy in fall 2023, downgraded to Hold, and then upgraded back to Buy in September 2023 [1] Group 1 - The analysis of Arbor Realty Trust is based on value investing principles, an owner's mindset, and a long-term investment horizon [1] - The author does not write sell articles, as they are considered short theses, and does not recommend shorting [1] - The author has a background as a former advisory representative at Fidelity and currently conducts independent investing [1]

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Group 1 - The article discusses the perspective of a conservative individual investor who leans towards value investing while also exploring new strategies [1] - The investor has experience teaching financial management, focusing on financial statement and project financial analysis [1] - The investor has been recognized as a contributor in various financial categories on Seeking Alpha, including REITs and mutual funds [1] Group 2 - The analyst has disclosed a beneficial long position in ABR shares, indicating a personal investment strategy [2] - The article emphasizes that the opinions expressed are solely those of the author and not influenced by any business relationships [2] - Seeking Alpha clarifies that past performance does not guarantee future results and that the views may not represent the platform as a whole [3]