Arbor Realty Trust Reports Third Quarter 2026 Results

Company Highlights: GAAP net loss of $(85.4) million, or $(0.51) per diluted common share Distributable loss 1 of $(0.04) per diluted common share, or distributable earnings of $0.08 excluding $21.7 million of net realized losses from the resolution of certain legacy assets Suspends quarterly cash dividend on common stock during this challenging environment to preserve capital and maintain financial flexibility Closed an $825.0 million collateralized securitization vehicle with enhanced leverage, generating ~$50 million of additional liquidity Servicing portfolio of ~$36.80 billion, agency loan originations of $907.0 million Structured loan portfolio of ~$12.00 billion, originations of $459.2 million and runoff of $574.0 million UNIONDALE, N.Y., Oct. 30, 2026 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE: ABR), today announced financial results for the third quarter ended September 30, 2026. Arbor reported a net loss for the quarter of $(85.4) million, or $(0.51) per diluted common share, compared to net income of $38.5 million, or $0.20 per diluted common share for the quarter ended September 30, 2025. Distributable loss for the quarter was $(6.9) million, or $(0.04) per diluted common share, compared to distributable earnings of $72.9 million, or $0.35 per diluted common share for the quarter ended September 30, 2025. Agency Business Loan Origination Platform Agency Loan Volume ($ in thousands) Quarter Ended September 30, 2026 June 30, 2026 Fannie Mae $ 574,805 $ 619,130 Freddie Mac 185,679 428,278 FHA 129,456 8,083 SFR-Fixed Rate 17,039 21,272 Total Originations $ 906,979 $ 1,076,763 Total Loan Sales $ 978,152 $ 1,143,438 Total Loan Commitments $ 819,243 $ 1,211,900 For the quarter ended September 30, 2026, the Agency Business generated revenues of $57.5 million, compared to $64.5 million for the second quarter of 2026. Gain on sales, including fee-based services, net was $10.9 million for the quarter, reflecting a margin of 1.12%, compared to $15.2 million and 1.33% for the second quarter of 2026. Income from mortgage servicing rights was $11.1 million for the quarter, reflecting a rate of 1.35% as a percentage of loan commitments, compared to $12.1 million and 1.00% for the second quarter of 2026. At September 30, 2026, loans held-for-sale was $236.8 million, with financing associated with these loans totaling $222.8 million. Fee-Based Servicing Portfolio The Company’s fee-based servicing portfolio totaled $36.80 billion at September 30, 2026. Servicing revenue, net was $25.7 million for the quarter and consisted of servicing revenue of $44.1 million, net of amortization of mortgage servicing rights totaling $18.4 million. Fee-Based Servicing Portfolio ($ in thousands) September 30, 2026 June 30, 2026 UPB Wtd. Avg. Fee (bps) Wtd. Avg. Life (years) UPB Wtd. Avg. Fee (bps) Wtd. Avg. Life (years) Fannie Mae $ 24,545,520 43.6 5.0 $ 24,419,734 43.9 5.2 Freddie Mac 7,664,059 17.4 5.5 7,672,121 17.6 5.7 Private Label 2,461,505 18.7 3.8 2,477,077 18.7 4.1 FHA 1,641,273 13.8 18.9 1,585,871 13.8 18.9 SFR-Fixed Rate 255,087 20.0 3.9 272,226 20.0 3.8 Bridge 235,888 10.0 1.7 277,333 10.4 1.7 Total $ 36,803,332 34.7 5.6 $ 36,704,362 35.0 5.8 Loans sold under the Fannie Mae program contain an obligation to partially guarantee the performance of the loan (“loss-sharing obligations”) and includes $36.9 million for the fair value of the guarantee obligation undertaken at September 30, 2026. The Company recorded a $12.4 million net provision for loss sharing associated with CECL for the third quarter of 2026. At September 30, 2026, the Company’s total CECL allowance for loss-sharing obligations was $87.3 million, representing 0.36% of the Fannie Mae servicing portfolio. Structured Business Portfolio and Investment Activity Structured Portfolio Activity ($ in thousands) Quarter Ended September 30, 2026 June 30, 2026 UPB % UPB % Bridge: SFR $ 367,114 80 % $ 490,617 71 % Multifamily 14,000 3 % 159,550 23 % 381,114 83 % 650,167 94 % Construction - Multifamily 43,318 9 % 38,810 6 % Mezzanine/Preferred Equity 34,793 8 % — — % Total Originations $ 459,225 100 % $ 688,977 100 % Number of Loans Originated 12 14 Commitments: SFR $ 91,912 $ 48,785 Construction - Multifamily 104,500 — Total Commitments $ 196,412 $ 48,785 Loan Runoff $ 573,989 $ 539,745 Structured Portfolio ($ in thousands) September 30, 2026 June 30, 2026 UPB % UPB % Bridge: Multifamily $ 7,682,346 64 % $ 7,895,187 65 % SFR 3,463,471 29 % 3,376,845 28 % Other 46,519 <1% 46,519 <1% 11,192,336 94 % 11,318,551 94 % Mezzanine/Preferred Equity 527,888 4 % 502,998 4 % Construction - Multifamily 279,494 2 % 285,482 2 % Total Portfolio $ 11,999,718 100 % $ 12,107,031 100 % At September 30, 2026, the loan and investment portfolio’s unpaid principal balance ("UPB"), excluding loan loss reserves, was $12.00 billion, with a weighted average interest rate of 6.54%, compared to $12.11 billion and 6.50% at June 30, 2026. Including certain fees earned and costs associated with the loan and investment portfolio, the weighted average interest rate was 6.97% at September 30, 2026, compared to 6.95% at June 30, 2026. The average balance of the Company’s loan and investment portfolio during the third quarter of 2026, excluding loan loss reserves, was $12.11 billion with a weighted average yield of 6.84%, compared to $12.08 billion and 7.21% for the second quarter of 2026. The decrease in the weighted average yield was primarily due to additional delinquencies and rate modifications in the third quarter of 2026. During the third quarter of 2026, the Company recorded a $53.0 million net provision for loan losses associated with CECL. At September 30, 2026, the Company’s total allowance for loan losses was $210.1 million. The Company had thirty-two non-performing loans with a UPB of $647.6 million, before related loan loss reserves of $41.9 million, compared to nineteen non-performing loans with a UPB of $428.8 million, before loan loss reserves of $31.1 million at June 30, 2026. In addition, the Company recorded $34.1 million of impairments on six real estate owned properties. In addition, at September 30, 2026, the Company had two non-accrual loans with a UPB of $95.9 million that were less than 60 days past due, compared to three non-accrual loans with a UPB of $94.9 million at June 30, 2026. During the third quarter of 2026, the Company modified 6 loans to borrowers experiencing financial difficulty with a total UPB of $192.1 million, the majority of which had borrowers investing additional capital to recapitalize their deals. The Company foreclosed on one loan with a UPB of $13.2 million and sold five existing REO properties for $39.0 million. Financing Activity The balance of debt that finances the Company’s loan and investment portfolio at September 30, 2026 was $10.75 billion with a weighted average interest rate including fees of 6.69%, as compared to $10.48 billion and a rate of 6.38% at June 30, 2026. The average balance of debt that finances the Company’s loan and investment portfolio for the third quarter of 2026 was $10.70 billion, as compared to $10.51 billion for the second quarter of 2026. The average cost of borrowings for the third quarter of 2026 was 6.66%, compared to 6.56% for the second quarter of 2026. The increase in average cost was primarily due to the convertible senior unsecured notes offering, as well as an increase in the average SOFR rate in the third quarter of 2026. The Company completed an $825.0 million collateralized securitization secured initially by a portfolio of real estate related assets and cash. Investment grade-rated notes totaling $730.1 million were issued, and the Company retained subordinate interests in the issuing vehicle of $112.4 million, including $17.5 million of the investment grade notes. The facility has a two and a half year asset replenishment period and an initial weighted average interest rate of the notes issued to third parties of 1.70% plus term SOFR, excluding fees and transaction costs. The Company completed an upsized $375.0 million offering of 6.25% convertible senior notes due 2029. The Company used the offering proceeds to redeem its $270.0 million of 4.50% senior notes and to repurchase common stock through two separate transactions: $11.6 million to repurchase ~2.1 million shares concurrently with the offering and $114.3 million to repurchase ~18.9 million shares pursuant to a prepaid forward stock repurchase transaction. Dividend The Company announced today that its Board of Directors has elected to suspend its quarterly common stock dividend, effective immediately. The decision reflects the Company's continued focus on preserving capital and maintaining financial flexibility to address upcoming debt maturities and support the resolution of legacy assets. The Company will continue to evaluate its dividend policy based upon market conditions and the Company's performance, capital needs, and REIT distribution requirements with a continued focus on preserving book value and maximizing long-term shareholder value. 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 (833) 419-0865 for domestic callers and (785) 838-9333 for international callers. Please use participant passcode ABRQ326 when prompted by the operator. A telephonic replay of the call will be available until November 6, 2026. The replay dial-in numbers are (800) 839-2435 for domestic callers and (402) 220-7212 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, 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, 2025 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 SUBSIDIARIES Consolidated Statements of Operations - (Unaudited) ($ in thousands—except share and per share data) Quarter Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Interest income $ 221,921 $ 223,001 $ 687,826 $ 703,997 Interest expense 184,249 184,735 537,212 521,564 Net interest income 37,672 38,266 150,614 182,433 Other revenue: Gain on sales, including fee-based services, net 10,925 23,340 38,607 49,779 Mortgage servicing rights 11,078 15,538 32,849 34,598 Servicing revenue, net 25,741 29,652 75,360 82,692 Property operating income 7,873 4,189 24,246 14,028 Gain (loss) on derivative instruments, net 279 (2,206 ) 827 1,413 Other income, net 525 3,650 4,858 12,059 Total other revenue 56,421 74,163 176,747 194,569 Other expenses: Employee compensation and benefits 42,524 44,169 135,304 131,386 Selling and administrative 15,384 13,698 48,205 44,868 Property operating expenses 11,804 7,296 36,438 17,572 Depreciation and amortization 5,868 5,355 18,901 14,947 Impairment loss on real estate owned 34,050 — 60,200 — Provision for loss sharing, net 12,625 8,256 30,634 14,258 Provision for credit losses, net 55,506 19,694 99,485 47,773 Total other expenses 177,761 98,468 429,167 270,804 (Loss) income before extinguishment of debt, gain (loss) on real estate, (loss) income from equity affiliates and income taxes (83,668 ) 13,961 (101,806 ) 106,198 Loss on extinguishment of debt — — — (2,319 ) Gain (loss) on real estate 1,574 (555 ) (498 ) (4,813 ) (Loss) income from equity affiliates (1,494 ) 46,204 4,810 47,224 Benefit from (provision for) income taxes 1,181 (7,594 ) (4,054 ) (14,583 ) Net (loss) income (82,407 ) 52,016 (101,548 ) 131,707 Preferred stock dividends 10,342 10,342 31,027 31,027 Net (loss) income attributable to noncontrolling interest (7,395 ) 3,211 (10,507 ) 7,828 Net (loss) income attributable to common stockholders $ (85,354 ) $ 38,463 $ (122,068 ) $ 92,852 Basic (loss) earnings per common share $ (0.51 ) $ 0.20 $ (0.66 ) $ 0.48 Diluted (loss) earnings per common share $ (0.51 ) $ 0.20 $ (0.66 ) $ 0.48 Weighted average shares outstanding: Basic 168,916,898 193,748,462 184,546,941 192,028,656 Diluted 168,916,898 210,517,762 184,546,941 208,807,751 Dividends declared per common share $ 0.17 $ 0.30 $ 0.64 $ 1.03 ARBOR REALTY TRUST, INC. AND SUBSIDIARIES Consolidated Balance Sheets ($ in thousands—except share and per share data) September 30, 2026 (Unaudited) December 31, 2025 Assets: Cash and cash equivalents $ 439,689 $ 482,875 Restricted cash 250,877 67,347 Loans and investments, net (allowance for credit losses of $210,104 and $145,971) 11,764,328 11,934,248 Loans held-for-sale, net 236,824 409,081 Capitalized mortgage servicing rights, net 315,014 340,842 Securities held-to-maturity, net (allowance for credit losses of $15,834 and $17,013) 156,211 156,087 Investments in equity affiliates 72,060 57,966 Real estate owned, net 491,170 498,938 Goodwill and other intangible assets 85,678 86,553 Other assets 425,157 460,966 Total assets $ 14,237,008 $ 14,494,903 Liabilities and Equity: Credit and repurchase facilities $ 5,176,866 $ 5,149,651 Securitized debt 3,630,292 3,468,258 Senior unsecured notes 1,589,460 2,029,078 Convertible senior unsecured notes 365,478 — Junior subordinated notes to subsidiary trust issuing preferred securities 146,112 145,497 Notes payable - real estate owned 254,977 222,965 Due to borrowers 26,328 33,451 Allowance for loss-sharing obligations 124,145 97,579 Other liabilities 281,757 281,271 Total liabilities 11,595,415 11,427,750 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: 633,683 633,683 Special voting preferred shares - 16,165,771 and 16,169,858 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 - 186,436,159 and 195,491,855 shares issued and outstanding 1,864 1,955 Additional paid-in capital 2,297,464 2,454,312 Accumulated deficit (384,340 ) (136,597 ) Total Arbor Realty Trust, Inc. stockholders' equity 2,548,671 2,953,353 Noncontrolling interest 92,922 113,800 Total equity 2,641,593 3,067,153 Total liabilities and equity $ 14,237,008 $ 14,494,903 ARBOR REALTY TRUST, INC. AND SUBSIDIARIES Statement of Operations Segment Information - (Unaudited) ($ in thousands) Quarter Ended September 30, 2026 Structured Business Agency Business Other (1) Consolidated Interest income $ 210,708 $ 11,213 $ — $ 221,921 Interest expense 179,718 4,531 — 184,249 Net interest income 30,990 6,682 — 37,672 Other revenue: Gain on sales, including fee-based services, net — 10,925 — 10,925 Mortgage servicing rights — 11,078 — 11,078 Servicing revenue — 44,133 — 44,133 Amortization of MSRs — (18,392 ) — (18,392 ) Property operating income 7,873 — — 7,873 Gain on derivative instruments, net — 279 — 279 Other income (loss), net 2,274 (1,749 ) — 525 Total other revenue 10,147 46,274 — 56,421 Other expenses: Employee compensation and benefits 18,637 23,887 — 42,524 Selling and administrative 8,260 7,124 — 15,384 Property operating expenses 11,804 — — 11,804 Depreciation and amortization 5,776 92 — 5,868 Impairment loss on real estate owned 34,050 — — 34,050 Provision for loss sharing, net — 12,625 — 12,625 Provision for credit losses, net 52,982 2,524 — 55,506 Total other expenses 131,509 46,252 — 177,761 (Loss) income before gain on real estate, loss from equity affiliates and income taxes (90,372 ) 6,704 — (83,668 ) Gain on real estate 1,574 — — 1,574 Loss from equity affiliates (1,494 ) — — (1,494 ) Benefit from income taxes 390 791 — 1,181 Net (loss) income (89,902 ) 7,495 — (82,407 ) Preferred stock dividends 10,342 — — 10,342 Net loss attributable to noncontrolling interest — — (7,395 ) (7,395 ) Net (loss) income attributable to common stockholders $ (100,244 ) $ 7,495 $ 7,395 $ (85,354 ) (1) Includes income (loss) allocated to the noncontrolling interest holders not allocated to the two reportable segments. ARBOR REALTY TRUST, INC. AND SUBSIDIARIES Balance Sheet Segment Information - (Unaudited) ($ in thousands) September 30, 2026 Structured Business Agency Business Consolidated Assets: Cash and cash equivalents $ 117,113 $ 322,576 $ 439,689 Restricted cash 213,041 37,836 250,877 Loans and investments, net 11,764,328 — 11,764,328 Loans held-for-sale, net — 236,824 236,824 Capitalized mortgage servicing rights, net — 315,014 315,014 Securities held-to-maturity, net — 156,211 156,211 Investments in equity affiliates 72,060 — 72,060 Real estate owned, net 491,170 — 491,170 Goodwill and other intangible assets 12,500 73,178 85,678 Other assets 323,247 101,910 425,157 Total assets $ 12,993,459 $ 1,243,549 $ 14,237,008 Liabilities: Debt obligations $ 10,940,366 $ 222,819 $ 11,163,185 Allowance for loss-sharing obligations — 124,145 124,145 Other liabilities 218,399 89,686 308,085 Total liabilities $ 11,158,765 $ 436,650 $ 11,595,415 ARBOR REALTY TRUST, INC. AND SUBSIDIARIES Reconciliation of Distributable (Loss) Earnings to GAAP Net (Loss) Income - (Unaudited) ($ in thousands—except share and per share data) Quarter Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Net (loss) income attributable to common stockholders $ (85,354 ) $ 38,463 $ (122,068 ) $ 92,852 Adjustments: Net (loss) income attributable to noncontrolling interest (7,395 ) 3,211 (10,507 ) 7,828 Income from mortgage servicing rights (11,078 ) (15,538 ) (32,849 ) (34,598 ) Deferred tax benefit (2,179 ) (1,791 ) (6,970 ) (3,532 ) Amortization and write-offs of MSRs 20,082 18,906 60,515 59,595 Depreciation and amortization 6,813 6,089 21,503 17,240 Loss on extinguishment of debt — — — 2,319 Provision for credit losses, net 46,783 18,381 66,437 27,572 Loss (gain) on derivative instruments, net 1,943 2,110 2,763 (3,261 ) Loss on real estate 20,392 369 38,310 5,035 Stock-based compensation 3,111 2,738 12,140 11,284 Distributable (loss) earnings (1) $ (6,882 ) $ 72,938 $ 29,274 $ 182,334 Diluted weighted average shares outstanding (1) 185,084,602 210,517,762 201,632,871 208,807,751 Diluted distributable (loss) earnings per share (1) $ (0.04 ) $ 0.35 $ 0.15 $ 0.87 (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. 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), gains/losses on the receipt of real estate from the settlement of loans and subsequent impairment losses on real estate owned 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 repaid, or in the case of foreclosure, when the underlying asset is sold at which time any impairments and/or cumulative depreciation expense are realized; 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. Source: Arbor Realty Trust