Economic Environment and Market Conditions - The commercial real estate markets have faced prolonged dislocation due to inflation and high interest rates, adversely affecting real estate values and increasing delinquencies and defaults [98]. - Economic downturns could lead to increased loan loss reserves, impairments, and difficulties in estimating these reserves, impacting overall operations [100]. - Changes in interest rates significantly influence financial performance, with a rising interest rate environment potentially increasing delinquencies and defaults [132]. - The current high interest rate environment may lead to a decline in GSE originations, potentially negatively impacting financial results [293]. - The company is currently facing significant disruptions in market segments due to inflation, high interest rates, and geopolitical uncertainty, affecting capital markets and liquidity [291]. Agency Business Operations and Financial Performance - A significant portion of the Agency Business's revenue is derived from loan servicing fees, and any decline in the servicing portfolio's value could materially affect results [104]. - The Agency Business has pledged $91.5 million in restricted liquidity as collateral against future losses under $22.73 billion of loans outstanding that are subject to risk-sharing obligations [147]. - The Agency Business's allowance for loss-sharing balance was $83.2 million, which may not be sufficient to cover future loss sharing obligations [147]. - A significant portion of the Agency Business's revenue is derived from loan servicing fees, which are expected to continue representing a major part of revenues [155]. - The Agency Business originates a significant portion of its loans for sale through GSE and HUD programs, which are subject to termination risks [145]. - The Agency Business may face adverse effects if investment banks discontinue their relationship, impacting loan sales through Private Label and CMBS conduit markets [146]. - The Agency Business is required to replenish reserves if they are depleted due to underperformance, which could adversely impact operating results [142]. - A rise in delinquencies could have a material adverse effect on the Agency Business's cash flows and net carrying value of MSRs on the balance sheet [149]. - The company is required to advance payments for delinquent loans under Fannie Mae and HUD programs, which could adversely impact liquidity and operational results [159]. - The Agency Business portfolio saw loan originations of $4,470,773 thousand in 2024, with loan sales totaling $4,609,686 thousand [297]. Financing and Liquidity Risks - The company relies on a letter of credit from a lender to satisfy liquidity requirements with Fannie Mae, and failure to renew this could reduce cash flow [103]. - The company may face challenges in obtaining financing on favorable terms due to prolonged disruptions in financial markets, which could adversely affect profitability [123]. - The company has a credit facility with a $37.5 million sublimit for principal and interest advances related to potential delinquent loans, but future financing availability is uncertain [161]. - The company finances its Structured Business loans through various means, including CLOs and credit facilities, but access to these funding sources can be affected by market conditions [163]. - The company may face liquidity constraints if CLO reinvestment periods expire without available capacity in existing CLOs or new issuances [175]. - The liquidity position is closely monitored, with existing sources of funds deemed adequate to meet liquidity needs despite adverse economic conditions [328][330]. Regulatory and Compliance Risks - The company is subject to regulatory risks, including potential changes in laws and regulations that could materially affect financial results [110]. - The company is required to maintain its status as a REIT to avoid substantial corporate tax liabilities, which depend on compliance with various asset, income, and distribution requirements [213]. - If the company fails to qualify as a REIT, it could face a significant tax liability, reducing cash available for distribution to stockholders [219]. - Legislative changes could adversely affect the company's tax treatment and market price of common stock, impacting overall financial performance [226]. - Changes in laws and regulations affecting GSEs could materially impact the company's financial results and operations [188]. Cybersecurity and Technological Risks - Cybersecurity threats pose significant risks to operations, potentially leading to reputational damage and financial losses [113]. - Cybersecurity incidents are increasing in frequency and severity, posing risks to the company's information systems and potentially impacting its operations [204]. - The company is incorporating AI technologies into its systems, which may pose risks related to management, competition, and compliance with evolving regulations [250][254]. Financial Performance Metrics - Net income attributable to common stockholders fell to $223,272 thousand in 2024, a decrease of 32% compared to $330,065 thousand in 2023 [308]. - Interest income decreased to $1,167,872 thousand in 2024, down 12% from $1,331,219 thousand in 2023 [308]. - The total interest-earning assets decreased to $12.60 billion in 2024 from $14.44 billion in 2023, resulting in a net interest income of $331.1 million, down from $398.8 million [310][312]. - Employee compensation and benefits rose to $181,694 thousand in 2024, an increase of 14% from $159,788 thousand in 2023 [308]. - The total other expenses increased to $333,899 thousand in 2024, up 6% from $315,829 thousand in 2023 [308].

Core Viewpoint - Arbor Realty Trust (ABR) reported a significant decline in revenue and earnings per share (EPS) for the quarter ended December 2024, indicating challenges in financial performance compared to the previous year [1]. Financial Performance Summary - Revenue for the quarter was $262.87 million, down 20.6% year-over-year, but exceeded the Zacks Consensus Estimate of $259.68 million by 1.23% [1][4]. - EPS was reported at $0.40, a decrease from $0.51 in the same quarter last year, and fell short of the consensus estimate of $0.42 by 4.76% [1][4]. - Interest income was $262.87 million, slightly above the average estimate of $260.98 million, reflecting a year-over-year decline of 20.6% [4]. - Other revenue from gain on sales was $22.18 million, surpassing the average estimate of $18.43 million, with a year-over-year increase of 32.6% [4]. - Mortgage servicing rights revenue was $13.34 million, below the average estimate of $14.87 million, showing a year-over-year decline of 36.9% [4]. - Total other revenue was $68.84 million, slightly above the average estimate of $68.20 million [4]. - Net interest income was reported at $82.87 million, exceeding the average estimate of $79.69 million [4]. - Other income was $1.13 million, significantly lower than the average estimate of $2.18 million, representing a year-over-year decline of 56.1% [4]. - The diluted net EPS was $0.32, slightly above the average estimate of $0.30 [4]. Market Performance - Arbor Realty Trust shares returned +4% over the past month, outperforming the Zacks S&P 500 composite's +2.2% change [3]. - The stock currently holds a Zacks Rank 1 (Strong Buy), suggesting potential for outperformance in the near term [3].

Core Viewpoint - Arbor Realty Trust (ABR) reported quarterly earnings of $0.40 per share, missing the Zacks Consensus Estimate of $0.42 per share, and down from $0.51 per share a year ago, indicating an earnings surprise of -4.76% [1] Financial Performance - The company posted revenues of $262.87 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.23%, but down from $331.06 million year-over-year [2] - Over the last four quarters, Arbor Realty Trust has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance and Outlook - Arbor Realty Trust shares have lost about 0.1% since the beginning of the year, while the S&P 500 has gained 4% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.42 for the coming quarter and $1.72 for the current fiscal year [4][7] Estimate Revisions and Rankings - The estimate revisions trend for Arbor Realty Trust is currently favorable, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] Industry Context - The REIT and Equity Trust industry is currently in the bottom 45% of the Zacks industries, which may impact stock performance [8]

Financial Performance - Arbor Realty Trust reported Q4 2024 net income of $59.8 million, or $0.32 per diluted common share, down from $91.7 million, or $0.48 per diluted common share in Q4 2023[3]. - Full year net income for 2024 was $223.3 million, or $1.18 per diluted common share, compared to $330.1 million, or $1.75 per diluted common share in 2023[3]. - Distributable earnings for Q4 2024 were $81.6 million, or $0.40 per diluted common share, compared to $104.1 million, or $0.51 per diluted common share in Q4 2023[3]. - Interest income for Q4 2024 was $262.87 million, down from $331.06 million in Q4 2023, while net income attributable to common stockholders was $59.83 million, compared to $91.66 million in the prior year[26]. - The Company reported a net interest income of $82.87 million for Q4 2024, compared to $103.58 million in Q4 2023[26]. - Net income attributable to common stockholders for Q4 2024 was $59.826 million, a decrease of 34.8% compared to $91.659 million in Q4 2023[35]. - Distributable earnings for Q4 2024 were $81.602 million, down from $104.104 million in Q4 2023, with diluted distributable earnings per share at $0.40[35]. Loan and Investment Portfolio - The agency loan originations for Q4 2024 totaled $1.38 billion, with a servicing portfolio of approximately $33.47 billion[4]. - The structured loan originations for Q4 2024 were $684.3 million, with a runoff of $900.6 million[4]. - The average balance of the loan and investment portfolio during Q4 2024 was $11.46 billion, with a weighted average yield of 8.52%[10][11]. - At December 31, 2024, the company had 26 non-performing loans with a UPB of $651.8 million[12]. - Total assets as of December 31, 2024, amounted to $13.491 billion, with loans and investments net totaling $11.034 billion[33]. Debt and Financing - The company successfully reduced its debt-to-equity ratio from 4:1 in 2023 to 2.8:1 by December 31, 2024[4]. - The balance of debt financing the Company's loan and investment portfolio as of December 31, 2024, was $9.54 billion, with a weighted average interest rate of 6.88%, down from $9.97 billion and 7.18% on September 30, 2024[15]. - The average balance of debt for Q4 2024 was $9.67 billion, compared to $10.09 billion in Q3 2024, with a decrease in average cost of borrowings from 7.58% to 7.10%[16]. - The Company issued $100 million of 9.00% senior unsecured notes due October 2027, with net proceeds used to pay down debt and for general corporate purposes[17]. - Total liabilities were $10.34 billion as of December 31, 2024, down from $12.48 billion in 2023[29]. - Total liabilities as of December 31, 2024, were $10.339 billion, with debt obligations comprising $9.924 billion[33]. Provisions and Losses - The company recorded a $3.4 million provision for loan losses in Q4 2024, with a total allowance for loan losses of $239.0 million[12]. - The Company experienced a decrease in provision for credit losses, reporting $68.54 million for the year ended December 31, 2024, compared to $73.45 million in 2023[26]. - The provision for credit losses (net of recoveries) was $3.641 million for Q4 2024[31]. - The company experienced a loss from equity affiliates of $1.616 million in Q4 2024[31]. Dividends - Arbor Realty Trust declared a cash dividend of $0.43 per share[4]. - A quarterly cash dividend of $0.43 per share was declared for the quarter ended December 31, 2024, payable on March 21, 2025[18]. - The company declared a dividend of $0.43 per share for Q4 2024[34].

Financial Performance - Arbor Realty Trust reported a net income of $59.8 million, or $0.32 per diluted common share for Q4 2024, down from $91.7 million, or $0.48 per diluted common share in Q4 2023 [2][28] - For the full year 2024, net income was $223.3 million, or $1.18 per diluted common share, compared to $330.1 million, or $1.75 per diluted common share in 2023 [2][28] - Distributable earnings for Q4 2024 were $81.6 million, or $0.40 per diluted common share, compared to $104.1 million, or $0.51 per diluted common share in Q4 2023 [2][39] - Full year distributable earnings were $358.0 million, or $1.74 per diluted common share, down from $452.5 million, or $2.25 per diluted common share in 2023 [2][39] Agency Business - Total agency loan originations for Q4 2024 were $1.38 billion, with a servicing portfolio of approximately $33.47 billion [5][6] - Agency business generated revenues of $78.7 million in Q4 2024, slightly up from $77.4 million in Q3 2024 [3] - Gain on sales in the agency business was $22.2 million for Q4 2024, reflecting a margin of 1.75%, compared to $18.6 million and 1.67% in Q3 2024 [3] Structured Business - Structured loan originations totaled $684.3 million in Q4 2024, with a runoff of $900.6 million [5][9] - The structured portfolio's unpaid principal balance (UPB) was $11.30 billion at December 31, 2024, with a weighted average current interest pay rate of 6.90% [10][11] - The average balance of the structured loan and investment portfolio during Q4 2024 was $11.46 billion, with a weighted average yield of 8.52% [11] Financing and Debt Management - The balance of debt financing the loan and investment portfolio was $9.54 billion at December 31, 2024, with a weighted average interest rate of 6.88% [16] - The average cost of borrowings for Q4 2024 was 7.10%, down from 7.58% in Q3 2024 [17] - The company issued $100.0 million of 9.00% senior unsecured notes due October 2027, with proceeds used to pay down debt [18] Dividend Declaration - The Board of Directors declared a quarterly cash dividend of $0.43 per share for the quarter ended December 31, 2024, payable on March 21, 2025 [19]

Arbor Realty Trust (ABR) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Over the past month, shares of this real estate investment trust have returned -0.3%, compared to the Zacks S&P 500 composite's +4.7% change. During this period, the Zacks REIT and Equity Trust industry, which Arbor Realty Trust falls in, has gained 9%. The key question now is: What could be the stock's future dir ...

UNIONDALE, N.Y., Feb. 12, 2025 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE: ABR), today announced that it is scheduled to release fourth quarter 2024 financial results before the market opens on Friday, February 21, 2025. The Company will host a conference call to review the results at 10:00 a.m. Eastern Time on February 21, 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 sho ...

Group 1 - Arbor Realty Trust (ABR) closed at $13.73, reflecting a +1.7% change from the previous day, outperforming the S&P 500's daily gain of 0.72% [1] - Over the past month, Arbor Realty Trust shares experienced a loss of 1.89%, underperforming compared to the Finance sector's gain of 3.24% and the S&P 500's gain of 1.02% [1] Group 2 - The upcoming earnings release is anticipated, with a forecasted EPS of $0.41, representing a 19.61% decrease from the same quarter last year [2] - Revenue is expected to be $260.98 million, indicating a 21.17% decline from the corresponding quarter of the previous year [2] Group 3 - Recent changes in analyst estimates for Arbor Realty Trust reflect shifting short-term business dynamics, with positive revisions indicating analysts' confidence in the company's performance [3] - The Zacks Rank system, which incorporates estimate changes, suggests a viable rating system for assessing stock performance [4] Group 4 - The Zacks Rank system ranges from 1 (Strong Buy) to 5 (Strong Sell), with Arbor Realty Trust currently holding a Zacks Rank of 4 (Sell) [5] - The Zacks Consensus EPS estimate has decreased by 0.16% in the past month [5] Group 5 - Arbor Realty Trust is trading at a Forward P/E ratio of 8.28, slightly below the industry average of 8.29, indicating a discount relative to its peers [6] - The REIT and Equity Trust industry is part of the Finance sector, currently holding a Zacks Industry Rank of 140, placing it in the bottom 45% of over 250 industries [6] Group 6 - The Zacks Industry Rank is based on the average Zacks Rank of individual companies, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Investment Group Overview - The investing group iREIT®+HOYA Capital is led by Brad and HOYA Capital, covering REITs, BDCs, MLPs, Preferreds, and other income-oriented alternatives [1] - The team of analysts has a combined 100+ years of experience, including a former hedge fund manager, due diligence officer, portfolio manager, PhD, military veteran, and advisor to a former U S President [1] Brad Thomas' Background - Brad Thomas has over 30 years of real estate investing experience and has acquired, developed, or brokered over $1B in commercial real estate transactions [2] - He has been featured in Barron's, Bloomberg, Fox Business, and other media outlets, and is the author of four books, including "REITs For Dummies" [2] Disclosure and Author's Note - The author holds a beneficial long position in shares of ABR, NLCP, and IRET through stock ownership, options, or other derivatives [3] - The article is written and distributed to assist in research and provide a forum for second-level thinking, with no compensation received other than from Seeking Alpha [4]

Company Performance - Arbor Realty Trust (ABR) closed at $13.16, reflecting a +1.39% increase compared to the previous day, outperforming the S&P 500's gain of 0.16% [1] - Over the last month, Arbor Realty Trust's shares have decreased by 10.17%, underperforming the Finance sector's loss of 5.04% and the S&P 500's loss of 2.2% [1] Earnings Forecast - The upcoming earnings release for Arbor Realty Trust is anticipated to show an EPS of $0.41, representing a 19.61% decline compared to the same quarter last year [2] - Revenue is expected to be $260.98 million, indicating a 21.17% decrease from the same quarter last year [2] Analyst Estimates - Recent changes to analyst estimates for Arbor Realty Trust reflect shifting short-term business dynamics, with upward revisions indicating analysts' positive outlook on the company's operations and profit generation [3] Zacks Rank and Valuation - Arbor Realty Trust currently holds a Zacks Rank of 3 (Hold), with a Forward P/E ratio of 7.95, which is a premium compared to the industry's average Forward P/E of 7.8 [5] - The Zacks Consensus EPS estimate has remained stagnant over the past month [5] Industry Overview - The REIT and Equity Trust industry is part of the Finance sector and currently holds a Zacks Industry Rank of 51, placing it in the top 21% of over 250 industries [6] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [6]