Group 1 - The capital markets are experiencing changes that have led to a more cautious outlook among real estate investors due to economic trends, geopolitical tensions, and shifts in monetary policy [1] - Despite the challenges, there is optimism among investors as the Federal Reserve has initiated actions that may positively impact the market [1] - Investors are focused on identifying growth stories in stocks that are reasonably priced and possess strong economic moats, emphasizing the importance of high-quality analysis [1] Group 2 - The analysis includes a deep dive into valuations, key business drivers, risk/reward assessments, and various future scenarios to inform investment decisions [1]

Arbor Realty Trust, Inc. (NYSE:ABR) Q3 2024 Results Conference Call November 1, 2024 10:00 AM ET Company Participants Paul Elenio - Chief Financial Officer Ivan Kaufman - President and Chief Executive Officer Conference Call Participants Steve Delaney - Citizens JMP Stephen Laws - Raymond James Rick Shane - JPMorgan Jade Rahmani - KBW Crispin Love - Piper Sandler Operator Good morning, ladies and gentlemen, and welcome to the Third Quarter 2024 Arbor Realty Trust Earnings Conference Call. At this time, all ...

Arbor Realty Trust (ABR) reported $286.52 million in revenue for the quarter ended September 2024, representing a year-over-year decline of 14.8%. EPS of $0.43 for the same period compares to $0.55 a year ago.The reported revenue represents a surprise of +3.34% over the Zacks Consensus Estimate of $277.28 million. With the consensus EPS estimate being $0.42, the EPS surprise was +2.38%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to ...

Arbor Realty Trust (ABR) came out with quarterly earnings of $0.43 per share, beating the Zacks Consensus Estimate of $0.42 per share. This compares to earnings of $0.55 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.38%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.44 per share when it actually produced earnings of $0.45, delivering a surprise of 2.27%.Over the last four q ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-32136 Arbor Realty Trust, Inc. (Exact name of registrant as specified in its charter) Maryland 20-0057959 (State or other jurisdiction of incorporatio ...

[Third Quarter 2024 Financial Highlights](index=1&type=section&id=Third%20Quarter%202024%20Financial%20Highlights) The company achieved significant deleveraging and maintained strong liquidity while reporting key financial metrics for Q3 2024 Q3 2024 Key Financial Metrics | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | GAAP Net Income per Diluted Share | $0.31 | $0.41 | | Distributable Earnings per Diluted Share | $0.43 | $0.55 | | Declared Dividend per Common Share | $0.43 | $0.43 | - Successfully deleveraged the company, reducing the debt-to-equity ratio from a peak of **4:1 in 2023 to 3:1 in Q3 2024**[1](index=1&type=chunk) - Maintained strong liquidity with approximately **$600 million in cash and liquidity**[1](index=1&type=chunk) - The fee-based servicing portfolio grew to **~$33.01 billion**, up 10% year-over-year, while the structured loan portfolio stood at **~$11.57 billion**[1](index=1&type=chunk) - In October 2024, the company issued **$100.0 million of 9.00% senior notes due 2027**[1](index=1&type=chunk) [Business Segment Performance](index=2&type=section&id=Business%20Segment%20Performance) The company's performance is driven by its Agency and Structured businesses, each contributing distinct revenue streams and portfolio management activities [Agency Business](index=2&type=section&id=Agency%20Business) The Agency Business generated **$77.4 million** in revenue in Q3 2024, with loan originations of **$1.10 billion**, and its fee-based servicing portfolio continued to expand, reaching **$33.01 billion**, an increase of 2.3% from the previous quarter [Loan Origination Platform](index=2&type=section&id=Loan%20Origination%20Platform) The loan origination platform demonstrated varied performance across loan types in Q3 2024, with a slight decrease in total originations compared to Q2 2024 Agency Loan Origination Volume (in millions) | Loan Type | Q3 2024 | Q2 2024 | | :--- | :--- | :--- | | Fannie Mae | $616.21 | $742.72 | | Freddie Mac | $378.81 | $346.82 | | Private Label | $74.16 | $34.71 | | FHA | $27.46 | — | | **Total Originations** | **$1,100.00** | **$1,150.00** | - Gain on sales, including fee-based services, was **$18.6 million** for the quarter, with a margin of **1.67%**, up from **$17.4 million** and a **1.54%** margin in Q2 2024[2](index=2&type=chunk) [Fee-Based Servicing Portfolio](index=2&type=section&id=Fee-Based%20Servicing%20Portfolio) The fee-based servicing portfolio continued its growth trajectory in Q3 2024, contributing significant net servicing revenue while managing loss-sharing obligations - The fee-based servicing portfolio grew to **$33.01 billion** at September 30, 2024, up from **$32.28 billion** at June 30, 2024, with net servicing revenue for the quarter at **$31.1 million**[4](index=4&type=chunk)[5](index=5&type=chunk) - The total CECL allowance for loss-sharing obligations related to the Fannie Mae portfolio was **$45.8 million**, representing **0.20%** of the portfolio, after a **$3.2 million** net provision in Q3 2024[5](index=5&type=chunk) [Structured Business](index=5&type=section&id=Structured%20Business) The Structured Business portfolio decreased to **$11.57 billion** due to loan runoff exceeding new originations, with active credit risk management through loan modifications and a **$14.8 million** net provision for loan losses, while non-performing loans stood at **$625.4 million** [Portfolio and Investment Activity](index=5&type=section&id=Portfolio%20and%20Investment%20Activity) The Structured Business portfolio experienced a net decrease in Q3 2024 as loan runoff outpaced new originations, with bridge loans to multifamily properties remaining the largest component Structured Portfolio Activity (in millions) | Activity | Q3 2024 | Q2 2024 | | :--- | :--- | :--- | | Total Originations | $258.46 | $227.18 | | Loan Runoff | $521.34 | $629.64 | - The total structured portfolio UPB was **$11.57 billion** at September 30, 2024, a decrease from **$11.87 billion** at June 30, 2024, with bridge loans to multifamily properties constituting the largest portion at **80%** of the portfolio[8](index=8&type=chunk)[9](index=9&type=chunk) [Portfolio Health and Loan Modifications](index=7&type=section&id=Portfolio%20Health%20and%20Loan%20Modifications) The company actively managed its structured portfolio's health in Q3 2024 through loan modifications, despite a slight increase in non-performing loans, maintaining a substantial allowance for loan losses - The company had **26 non-performing loans** with a UPB of **$625.4 million**, compared to **24 loans** with a UPB of **$676.2 million** in the prior quarter, with the total allowance for loan losses at **$243.6 million**[11](index=11&type=chunk) - During Q3 2024, **24 loans** with a total UPB of **$1.15 billion** were modified, where borrowers invested additional capital in exchange for temporary rate relief, featuring a weighted average pay rate of **5.91%** and an accrual rate of **2.50%**[13](index=13&type=chunk) [Financing Activity](index=7&type=section&id=Financing%20Activity) The company reduced its debt financing the loan portfolio in Q3 2024 and issued new senior unsecured notes in October 2024 to support debt repayment and general corporate purposes - The balance of debt financing the loan portfolio was reduced to **$9.97 billion** at a weighted average interest rate of **7.18%**, down from **$10.26 billion** at a rate of **7.53%** in Q2 2024[14](index=14&type=chunk) - In October 2024, the company issued **$100.0 million of 9.00% senior unsecured notes due 2027**, with proceeds intended for debt repayment and general corporate purposes[16](index=16&type=chunk) [Dividend and Corporate Information](index=8&type=section&id=Dividend%20and%20Corporate%20Information) This section outlines the company's dividend declaration for Q3 2024 and details regarding its earnings conference call [Dividend Declaration](index=8&type=section&id=Dividend%20Declaration) The Board of Directors declared a quarterly cash dividend of **$0.43 per share** of common stock for the third quarter of 2024, consistent with the prior quarter and the same quarter in the previous year - A quarterly cash dividend of **$0.43 per common share** was declared, payable on November 27, 2024, to stockholders of record on November 15, 2024[17](index=17&type=chunk) [Earnings Conference Call](index=8&type=section&id=Earnings%20Conference%20Call) The company scheduled its Q3 2024 earnings conference call for 10:00 a.m. Eastern Time on November 1, 2024, providing details for live and replay access via webcast and telephone - The earnings conference call was held on November 1, 2024, at 10:00 a.m. ET, with a webcast replay available on the company's website[18](index=18&type=chunk) [Consolidated Financial Statements](index=9&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated financial performance and position, including income statements, balance sheets, and segment-specific financial data [Consolidated Statements of Income](index=9&type=section&id=Consolidated%20Statements%20of%20Income) For Q3 2024, the company reported net income attributable to common stockholders of **$58.2 million** (**$0.31 per diluted share**), a decrease from **$77.9 million** (**$0.41 per diluted share**) in Q3 2023, primarily due to lower net interest income and slightly higher total other expenses Q3 2024 vs. Q3 2023 Income Statement Highlights (in millions) | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Net Interest Income | $88.81 | $107.29 | | Total Other Revenue | $67.84 | $69.39 | | Provision for Credit Losses | $16.22 | $18.65 | | Total Other Expenses | $81.05 | $76.27 | | Net Income Attributable to Common Stockholders | $58.18 | $77.92 | | Diluted Earnings per Common Share | $0.31 | $0.41 | [Consolidated Balance Sheets](index=12&type=section&id=Consolidated%20Balance%20Sheets) As of September 30, 2024, total assets were **$13.88 billion** and total liabilities were **$10.72 billion**, representing a significant reduction from year-end 2023 figures of **$15.74 billion** in assets and **$12.48 billion** in liabilities, reflecting the company's deleveraging strategy Balance Sheet Highlights (in billions) | Metric | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Assets | $13.88 | $15.74 | | Loans and investments, net | $11.29 | $12.38 | | Total Liabilities | $10.72 | $12.48 | | Total Equity | $3.16 | $3.25 | [Segment Information](index=14&type=section&id=Segment%20Information) The Structured Business segment is the primary driver of the company's financial results, contributing **$48.3 million** in net income and holding **$12.37 billion** in assets in Q3 2024, while the Agency Business contributed **$25.3 million** in net income and held **$1.51 billion** in assets Q3 2024 Net Income by Segment (in millions) | Segment | Net Income | Net Income Attributable to Common Stockholders | | :--- | :--- | :--- | | Structured Business | $48.27 | $37.93 | | Agency Business | $25.27 | $25.27 | Assets by Segment as of Sep 30, 2024 (in billions) | Segment | Total Assets | Debt Obligations | | :--- | :--- | :--- | | Structured Business | $12.37 | $9.97 | | Agency Business | $1.51 | $0.32 | [Reconciliation of Non-GAAP Measures](index=16&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section provides a reconciliation of non-GAAP financial measures, specifically distributable earnings, to their most directly comparable GAAP counterparts [Reconciliation of Distributable Earnings to GAAP Net Income](index=16&type=section&id=Reconciliation%20of%20Distributable%20Earnings%20to%20GAAP%20Net%20Income) The company reported distributable earnings of **$88.2 million**, or **$0.43 per diluted share**, for Q3 2024, a non-GAAP measure used by management to evaluate operating performance and dividend capacity, adjusting GAAP net income for items like non-cash provisions for credit losses, amortization, and certain derivative gains/losses Q3 2024 Reconciliation of GAAP Net Income to Distributable Earnings (in millions) | Line Item | Amount | | :--- | :--- | | **Net income attributable to common stockholders** | **$58.18** | | Adjustments: | | | Provision for credit losses, net | $17.08 | | Income from mortgage servicing rights | ($13.20) | | Amortization and write-offs of MSRs | $18.79 | | Depreciation and amortization | $2.56 | | Other Adjustments | $4.76 | | **Distributable earnings** | **$88.18** | - Distributable earnings is a key metric for management in determining the quarterly dividend, as it is considered a useful indicator of the company's ability to generate cash for distributions over time[30](index=30&type=chunk)

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 million3 Agency loan originations of $1.10 billion; a servicing portfolio of ~$33.01 billion, up 2% from 2Q24 and 10% from a year ago Structured loan originations of $258.5 million, runoff of $521.3 million and a p ...

UNIONDALE, N.Y., Oct. 25, 2024 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE: ABR), today announced that it is scheduled to release third quarter 2024 financial results before the market opens on Friday, November 1, 2024. The Company will host a conference call to review the results at 10:00 a.m. Eastern Time on November 1, 2024. 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 ...

JamesBrey/E+ via Getty Images Mortgage REITs or mREITs have generally been weak investments with a history of book value erosion. Most of the erosion has been caused by shocks to the financial system or unfavorable macro conditions. As such, we generally stay away from common shares of mREITs finding the preferreds more opportunistic. The macro environment is shifting, however, in ways that make the future of mREITs look significantly brighter. We believe the majority of mREITs will have strong 3Q24 reports ...

Arbor Realty Trust (ABR) is slated to report third-quarter 2024 results on Oct. 25. The company is likely to have registered year-over-year declines in interest income and earnings. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. In the last reported quarter, this New York-headquartered real estate investment trust (REIT), which primarily focuses on originating and servicing loans for multi-family, single-family and other commercial real estate assets, posted distributable earnings ...