Arbor Realty Trust Reports First Quarter 2026 Results and Declares Dividend of $0.17 per Share
Rhea-AI Summary
Arbor Realty Trust (NYSE: ABR) reported Q1 2026 GAAP net income of $0.6 million ($0.00 diluted) and distributable earnings of $14.4 million ($0.07 diluted), excluding $22.9 million of net realized losses from legacy assets. The board declared a quarterly cash dividend of $0.17 per share payable June 5, 2026. Key balances: fee-based servicing portfolio ~$36.31 billion, structured portfolio UPB ~$12.00 billion, agency originations $707.6 million, structured originations $767.6 million. Completed a $762.6 million collateralized securitization, generating ~$35 million of liquidity.
Positive
- Quarterly dividend declared of $0.17 per share
- Fee-based servicing portfolio of $36.31 billion
- Closed $762.6 million collateralized securitization, adding ~$35M liquidity
- Purchased $30.7 million of common stock at $7.46 average
Negative
- GAAP net income fell to $0.6M from $30.4M year-ago
- Distributable earnings declined to $14.4M from $57.3M year-ago
- Recorded $12.5M impairment on real estate owned
- Provision for credit losses and loss-sharing provisions increased (CECL)
News Market Reaction – ABR
In the May 8 session, ABR declined 11.75%, reflecting a significant negative market reaction. Argus tracked a trough of -9.5% from its starting point during tracking. Our momentum scanner triggered 25 alerts that day, indicating elevated trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Dividends,earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Feb 27 | Q4 2025 earnings | Positive | +9.2% | Profitable Q4 2025 results with full-year distributable earnings and $0.30 dividend. |
| Oct 31 | Q3 2025 earnings | Positive | -12.6% | Q3 earnings, liquidity actions and $0.30 dividend followed by sharp share price drop. |
| Aug 01 | Q2 2025 earnings | Neutral | +0.4% | Q2 results with lower EPS year over year but stable $0.30 dividend. |
| May 02 | Q1 2025 earnings | Negative | -3.1% | Q1 2025 EPS decline versus 2024 and credit provisions despite maintained dividend. |
| Feb 21 | Q4 2024 earnings | Positive | -13.3% | Strong Q4 2024 and full-year results with $0.43 dividend but steep price selloff. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings-and-dividend releases have produced mixed reactions: several sizable selloffs on otherwise solid reports, but also one strong rally. The average move on these tagged events has been negative, suggesting investors often focus on risks (credit quality, leverage, dividend sustainability) even when earnings headlines appear constructive.
Over the past year, ABR’s recurring dividends,earnings releases have combined steady agency and structured lending activity with a consistent common dividend. Q4 2024 and multiple 2025 quarters showed positive GAAP and distributable earnings with a $0.30–$0.43 dividend, yet several of those reports saw double‑digit price declines. The new Q1 2026 update contrasts with prior periods by showing sharply lower GAAP net income and a reduced $0.17 dividend, which fits the already cautious trading profile and past volatility around results.
Key Terms
gaap financial
distributable earnings financial
mortgage servicing rights financial
collateralized securitization financial
term sofr financial
non-performing loans financial
cecl financial
securitized debt financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Company Highlights:
- GAAP net income of
$0.6 million , or$0.00 per diluted common share - Distributable earnings1 of
$0.07 , or$0.18 per diluted common share, excluding$22.9 million of net realized losses from the resolution of certain legacy assets - Declares cash dividend on common stock of
$0.17 per share - Servicing portfolio of ~
$36.31 billion , agency loan originations of$707.6 million - Structured loan portfolio of ~
$12.00 billion , originations of$767.6 million and runoff of$861.0 million - Closed a
$762.6 million collateralized securitization vehicle with enhanced leverage, generating ~$35 million of additional liquidity - Purchased
$30.7 million of stock at an average price of$7.46 per share, or66% of book value
UNIONDALE, N.Y., May 08, 2026 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE: ABR), today announced financial results for the first quarter ended March 31, 2026. Arbor reported net income for the quarter of
Agency Business
Loan Origination Platform
| Agency Loan Volume (in thousands) | |||||
| Quarter Ended | |||||
| March 31, 2026 | December 31, 2025 | ||||
| Fannie Mae | $ | 570,815 | $ | 1,068,889 | |
| Freddie Mac | 91,255 | 493,294 | |||
| FHA | 45,507 | 62,104 | |||
| SFR-Fixed Rate | — | 3,857 | |||
| Total Originations | $ | 707,577 | $ | 1,628,144 | |
| Total Loan Sales | $ | 670,972 | $ | 1,539,801 | |
| Total Loan Commitments | $ | 733,860 | $ | 1,602,180 | |
For the quarter ended March 31, 2026, the Agency Business generated revenues of
At March 31, 2026, loans held-for-sale was
Fee-Based Servicing Portfolio
The Company’s fee-based servicing portfolio totaled
| Fee-Based Servicing Portfolio ($ in thousands) | |||||||||||||
| March 31, 2026 | December 31, 2025 | ||||||||||||
| UPB | Wtd. Avg. Fee (bps) | Wtd. Avg. Life (years) | UPB | Wtd. Avg. Fee (bps) | Wtd. Avg. Life (years) | ||||||||
| Fannie Mae | $ | 24,261,724 | 44.4 | 5.4 | $ | 24,085,960 | 44.7 | 5.5 | |||||
| Freddie Mac | 7,368,979 | 18.2 | 5.7 | 7,455,088 | 18.3 | 5.9 | |||||||
| Private Label | 2,554,209 | 18.7 | 4.3 | 2,558,048 | 18.7 | 4.5 | |||||||
| FHA | 1,584,644 | 13.8 | 19.0 | 1,549,483 | 13.9 | 19.1 | |||||||
| Bridge | 277,523 | 10.4 | 2.0 | 277,738 | 10.4 | 2.2 | |||||||
| SFR-Fixed Rate | 264,008 | 20.0 | 3.8 | 277,490 | 20.0 | 4.0 | |||||||
| Total | $ | 36,311,087 | 35.5 | 5.9 | $ | 36,203,807 | 35.6 | 6.1 | |||||
Loans sold under the Fannie Mae program contain an obligation to partially guarantee the performance of the loan (“loss-sharing obligations”) and includes
Structured Business
Portfolio and Investment Activity
| Structured Portfolio Activity ($ in thousands) | |||||||||||
| Quarter Ended | |||||||||||
| March 31, 2026 | December 31, 2025 | ||||||||||
| UPB | % | UPB | % | ||||||||
| Bridge: | |||||||||||
| Multifamily | $ | 405,600 | 53 | % | $ | 336,945 | 30 | % | |||
| SFR | 321,122 | 42 | % | 668,059 | 61 | % | |||||
| 726,722 | 95 | % | 1,005,004 | 91 | % | ||||||
| Construction - Multifamily | 40,870 | 5 | % | 61,206 | 6 | % | |||||
| Mezzanine/Preferred Equity | — | — | % | 36,922 | 3 | % | |||||
| Total Originations | $ | 767,592 | 100 | % | $ | 1,103,132 | 100 | % | |||
| Number of Loans Originated | 6 | 29 | |||||||||
| Commitments: | |||||||||||
| Construction - Multifamily | $ | 113,070 | $ | 62,000 | |||||||
| SFR | 53,000 | 245,750 | |||||||||
| Total Commitments | $ | 166,070 | $ | 307,750 | |||||||
| Loan Runoff | $ | 861,033 | $ | 537,519 | |||||||
| Structured Portfolio ($ in thousands) | |||||||||||
| March 31, 2026 | December 31, 2025 | ||||||||||
| UPB | % | UPB | % | ||||||||
| Bridge: | |||||||||||
| Multifamily | $ | 7,897,122 | 66 | % | $ | 8,143,114 | 67 | % | |||
| SFR | 3,265,802 | 27 | % | 3,184,910 | 26 | % | |||||
| Other | 46,519 | <1 | % | 43,734 | <1 | % | |||||
| 11,209,443 | 94 | % | 11,371,758 | 94 | % | ||||||
| Mezzanine/Preferred Equity | 497,961 | 4 | % | 492,330 | 4 | % | |||||
| Construction - Multifamily | 289,889 | 2 | % | 249,019 | 2 | % | |||||
| Total Portfolio | $ | 11,997,293 | 100 | % | $ | 12,113,107 | 100 | % | |||
At March 31, 2026, the loan and investment portfolio’s unpaid principal balance ("UPB"), excluding loan loss reserves, was
The average balance of the Company’s loan and investment portfolio during the first quarter of 2026, excluding loan loss reserves, was
During the first quarter of 2026, the Company recorded a
At March 31, 2026, the Company had no loans that were less than 60 days past due classified as non-accrual, compared to three loans with a total UPB of
During the first quarter of 2026, the Company modified 13 loans to borrowers experiencing financial difficulty with a total UPB of
The Company foreclosed on three loans with a UPB totaling
Financing Activity
The balance of debt that finances the Company’s loan and investment portfolio at March 31, 2026 was
The average balance of debt that finances the Company’s loan and investment portfolio for the first quarter of 2026 was
The Company completed a
Dividend
The Company announced today that its Board of Directors has declared a quarterly cash dividend of
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) 267-6316 for domestic callers and (203) 518-9783 for international callers. Please use participant passcode ABRQ126 when prompted by the operator.
A telephonic replay of the call will be available until May 15, 2026. The replay dial-in numbers are (800) 938-1603 for domestic callers and (402) 220-1549 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, 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.
| Contact: | Arbor Realty Trust, Inc. Investor Relations 516-506-4200 InvestorRelations@arbor.com |
| ARBOR REALTY TRUST, INC. AND SUBSIDIARIES Consolidated Statements of Income - (Unaudited) ($ in thousands—except share and per share data) | |||||||
| Quarter Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Interest income | $ | 235,047 | $ | 240,693 | |||
| Interest expense | 175,202 | 165,251 | |||||
| Net interest income | 59,845 | 75,442 | |||||
| Other revenue: | |||||||
| Gain on sales, including fee-based services, net | 12,505 | 12,781 | |||||
| Mortgage servicing rights | 9,660 | 8,131 | |||||
| Servicing revenue, net | 25,740 | 25,603 | |||||
| Property operating income | 8,060 | 4,387 | |||||
| (Loss) gain on derivative instruments, net | (493 | ) | 3,400 | ||||
| Other income, net | 2,074 | 4,419 | |||||
| Total other revenue | 57,546 | 58,721 | |||||
| Other expenses: | |||||||
| Employee compensation and benefits | 47,684 | 46,036 | |||||
| Selling and administrative | 16,953 | 16,312 | |||||
| Property operating expenses | 11,964 | 3,474 | |||||
| Depreciation and amortization | 7,104 | 3,744 | |||||
| Impairment loss on real estate owned | 12,500 | — | |||||
| Provision for loss sharing, net | 4,537 | 1,786 | |||||
| Provision for credit losses, net | 5,816 | 9,075 | |||||
| Total other expenses | 106,558 | 80,427 | |||||
| Income before extinguishment of debt, loss on real estate, income (loss) from equity affiliates and income taxes | 10,833 | 53,736 | |||||
| Loss on extinguishment of debt | — | (2,319 | ) | ||||
| Loss on real estate | (2,136 | ) | (2,810 | ) | |||
| Income (loss) from equity affiliates | 4,411 | (1,634 | ) | ||||
| Provision for income taxes | (2,085 | ) | (3,591 | ) | |||
| Net income | 11,023 | 43,382 | |||||
| Preferred stock dividends | 10,342 | 10,342 | |||||
| Net income attributable to noncontrolling interest | 52 | 2,602 | |||||
| Net income attributable to common stockholders | $ | 629 | $ | 30,438 | |||
| Basic earnings per common share | $ | 0.00 | $ | 0.16 | |||
| Diluted earnings per common share | $ | 0.00 | $ | 0.16 | |||
| Weighted average shares outstanding: | |||||||
| Basic | 194,194,906 | 190,060,776 | |||||
| Diluted | 211,735,731 | 206,862,320 | |||||
| Dividends declared per common share | $ | 0.30 | $ | 0.43 | |||
| ARBOR REALTY TRUST, INC. AND SUBSIDIARIES Consolidated Balance Sheets ($ in thousands—except share and per share data) | |||||||
| March 31, 2026 | |||||||
| (Unaudited) | December 31, 2025 | ||||||
| Assets: | |||||||
| Cash and cash equivalents | $ | 407,126 | $ | 482,875 | |||
| Restricted cash | 393,529 | 67,347 | |||||
| Loans and investments, net (allowance for credit losses of | 11,835,381 | 11,934,248 | |||||
| Loans held-for-sale, net | 443,218 | 409,081 | |||||
| Capitalized mortgage servicing rights, net | 331,929 | 340,842 | |||||
| Securities held-to-maturity, net (allowance for credit losses of | 155,469 | 156,087 | |||||
| Investments in equity affiliates | 56,747 | 57,966 | |||||
| Real estate owned, net | 520,766 | 498,938 | |||||
| Due from related party | 35,251 | 6,534 | |||||
| Goodwill and other intangible assets | 86,161 | 86,553 | |||||
| Other assets | 426,908 | 454,432 | |||||
| Total assets | $ | 14,692,485 | $ | 14,494,903 | |||
| Liabilities and Equity: | |||||||
| Credit and repurchase facilities | $ | 4,967,952 | $ | 5,149,651 | |||
| Securitized debt | 3,931,468 | 3,468,258 | |||||
| Senior unsecured notes | 2,030,947 | 2,029,078 | |||||
| Junior subordinated notes to subsidiary trust issuing preferred securities | 145,707 | 145,497 | |||||
| Notes payable - real estate owned | 253,189 | 222,965 | |||||
| Due to related party | 1,758 | 501 | |||||
| Due to borrowers | 29,992 | 33,451 | |||||
| Allowance for loss-sharing obligations | 106,773 | 97,579 | |||||
| Other liabilities | 245,649 | 280,770 | |||||
| Total liabilities | 11,713,435 | 11,427,750 | |||||
| Equity: | |||||||
| Arbor Realty Trust, Inc. stockholders' equity: | |||||||
| Preferred stock, cumulative, redeemable, | 633,683 | 633,683 | |||||
| Special voting preferred shares - 16,170,218 and 16,169,858 shares | |||||||
| Common stock, | 1,924 | 1,955 | |||||
| Additional paid-in capital | 2,428,500 | 2,454,312 | |||||
| Accumulated deficit | (194,058 | ) | (136,597 | ) | |||
| Total Arbor Realty Trust, Inc. stockholders' equity | 2,870,049 | 2,953,353 | |||||
| Noncontrolling interest | 109,001 | 113,800 | |||||
| Total equity | 2,979,050 | 3,067,153 | |||||
| Total liabilities and equity | $ | 14,692,485 | $ | 14,494,903 | |||
| ARBOR REALTY TRUST, INC. AND SUBSIDIARIES Statement of Income Segment Information - (Unaudited) (in thousands) | |||||||||||||||
| Quarter Ended March 31, 2026 | |||||||||||||||
| Structured Business | Agency Business | Other(1) | Consolidated | ||||||||||||
| Interest income | $ | 224,394 | $ | 10,653 | $ | — | $ | 235,047 | |||||||
| Interest expense | 170,814 | 4,388 | — | 175,202 | |||||||||||
| Net interest income | 53,580 | 6,265 | — | 59,845 | |||||||||||
| Other revenue: | |||||||||||||||
| Gain on sales, including fee-based services, net | — | 12,505 | — | 12,505 | |||||||||||
| Mortgage servicing rights | — | 9,660 | — | 9,660 | |||||||||||
| Servicing revenue | — | 44,033 | — | 44,033 | |||||||||||
| Amortization of MSRs | — | (18,293 | ) | — | (18,293 | ) | |||||||||
| Property operating income | 8,060 | — | — | 8,060 | |||||||||||
| Loss on derivative instruments, net | — | (493 | ) | — | (493 | ) | |||||||||
| Other income (loss), net | 2,223 | (149 | ) | — | 2,074 | ||||||||||
| Total other revenue | 10,283 | 47,263 | — | 57,546 | |||||||||||
| Other expenses: | |||||||||||||||
| Employee compensation and benefits | 18,862 | 28,822 | — | 47,684 | |||||||||||
| Selling and administrative | 9,150 | 7,803 | — | 16,953 | |||||||||||
| Property operating expenses | 11,964 | — | — | 11,964 | |||||||||||
| Depreciation and amortization | 6,713 | 391 | — | 7,104 | |||||||||||
| Impairment loss on real estate owned | 12,500 | — | — | 12,500 | |||||||||||
| Provision for loss sharing, net | — | 4,537 | — | 4,537 | |||||||||||
| Provision for credit losses, net | 3,644 | 2,172 | — | 5,816 | |||||||||||
| Total other expenses | 62,833 | 43,725 | — | 106,558 | |||||||||||
| Income before loss on real estate, income from equity affiliates and income taxes | 1,030 | 9,803 | — | 10,833 | |||||||||||
| Loss on real estate | (2,136 | ) | — | — | (2,136 | ) | |||||||||
| Income from equity affiliates | 4,411 | — | — | 4,411 | |||||||||||
| Benefit from (provision for) income taxes | 83 | (2,168 | ) | — | (2,085 | ) | |||||||||
| Net income | 3,388 | 7,635 | — | 11,023 | |||||||||||
| Preferred stock dividends | 10,342 | — | — | 10,342 | |||||||||||
| Net income attributable to noncontrolling interest | — | — | 52 | 52 | |||||||||||
| Net (loss) income attributable to common stockholders | $ | (6,954 | ) | $ | 7,635 | $ | (52 | ) | $ | 629 | |||||
(1) Includes income 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) | ||||||||
| March 31, 2026 | ||||||||
| Structured Business | Agency Business | Consolidated | ||||||
| Assets: | ||||||||
| Cash and cash equivalents | $ | 89,285 | $ | 317,841 | $ | 407,126 | ||
| Restricted cash | 359,569 | 33,960 | 393,529 | |||||
| Loans and investments, net | 11,835,381 | — | 11,835,381 | |||||
| Loans held-for-sale, net | — | 443,218 | 443,218 | |||||
| Capitalized mortgage servicing rights, net | — | 331,929 | 331,929 | |||||
| Securities held-to-maturity, net | — | 155,469 | 155,469 | |||||
| Investments in equity affiliates | 56,747 | — | 56,747 | |||||
| Real estate owned, net | 520,766 | — | 520,766 | |||||
| Goodwill and other intangible assets | 12,500 | 73,661 | 86,161 | |||||
| Other assets and due from related party | 387,609 | 74,550 | 462,159 | |||||
| Total assets | $ | 13,261,857 | $ | 1,430,628 | $ | 14,692,485 | ||
| Liabilities: | ||||||||
| Debt obligations | $ | 10,904,398 | $ | 424,865 | $ | 11,329,263 | ||
| Allowance for loss-sharing obligations | — | 106,773 | 106,773 | |||||
| Other liabilities and due to related parties | 212,622 | 64,777 | 277,399 | |||||
| Total liabilities | $ | 11,117,020 | $ | 596,415 | $ | 11,713,435 | ||
| ARBOR REALTY TRUST, INC. AND SUBSIDIARIES Reconciliation of Distributable Earnings to GAAP Net Income - (Unaudited) ($ in thousands—except share and per share data) | |||||||
| Quarter Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Net income attributable to common stockholders | $ | 629 | $ | 30,438 | |||
| Adjustments: | |||||||
| Net income attributable to noncontrolling interest | 52 | 2,602 | |||||
| Income from mortgage servicing rights | (9,660 | ) | (8,131 | ) | |||
| Deferred tax benefit | (2,580 | ) | (137 | ) | |||
| Amortization and write-offs of MSRs | 19,340 | 20,864 | |||||
| Depreciation and amortization | 7,814 | 4,568 | |||||
| Loss on extinguishment of debt | — | 2,319 | |||||
| Provision for credit losses, net | (20,878 | ) | 756 | ||||
| Loss (gain) on derivative instruments, net | 1,298 | (4,697 | ) | ||||
| Loss on real estate | 12,529 | 2,810 | |||||
| Stock-based compensation | 5,904 | 5,935 | |||||
| Distributable earnings (1) | $ | 14,448 | $ | 57,327 | |||
| Diluted distributable earnings per share (1) | $ | 0.07 | $ | 0.28 | |||
| Diluted weighted average shares outstanding (1) (2) | 211,735,731 | 206,862,320 | |||||
(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) For the quarter ended March 31, 2025, 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
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.
