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Arbor Realty Trust Reports Fourth Quarter and Full Year 2023 Results and Declares Dividend of $0.43 per Share

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Arbor Realty Trust, Inc. (ABR) reported strong financial results for Q4 2023 with GAAP net income of $0.48 per diluted common share and distributable earnings of $0.51. The company declared a cash dividend of $0.43 per share. They have a robust liquidity position with ~$1 billion in cash and $600 million in CLO vehicles. Full-year highlights include a 5% increase in net income and a 7.5% dividend raise. The total stockholder return was 28%.
Positive
  • Strong financial performance in Q4 2023 with GAAP net income of $91.7 million and distributable earnings of $104.1 million.
  • Declared cash dividend of $0.43 per share for Q4 2023 and raised dividend twice in 2023.
  • Robust liquidity position with around $1 billion in cash and liquidity and $600 million in CLO vehicles.
  • Agency loan originations of $1.44 billion and servicing portfolio of ~$30.98 billion.
  • Full-year highlights include a 5% increase in net income and a 7.5% dividend raise.
  • Best-in-class total stockholder return of 28% for the year.
  • Structured loan originations of $266.2 million and a portfolio of ~$12.62 billion.
  • Agency servicing portfolio growth of 11% and structured portfolio reduction of 13%.
  • Total loan and investment portfolio's unpaid principal balance of $12.62 billion with a weighted average current interest pay rate of 8.42%.
  • Total allowance for loan losses was $195.7 million with sixteen non-performing loans at December 31, 2023.
  • Balance of debt financing the loan and investment portfolio was $11.57 billion with a weighted average interest rate of 7.45%.
  • Quarterly cash dividend of $0.43 per share declared for Q4 2023.
Negative
  • None.

The reported GAAP net income and distributable earnings reflect Arbor Realty Trust's financial health and operational efficiency. An increase in GAAP net income for both the quarter and the full year suggests a positive trend in profitability. However, the distributable earnings, which are often a more accurate reflection of cash flow available to shareholders, show a decrease in the fourth quarter compared to the previous year, which may concern investors. The dividend raise indicates management's confidence in the company's earning potential and financial stability. The liquidity position, with approximately $1 billion in cash and liquidity, provides the company with strategic flexibility to navigate market conditions or invest in growth opportunities.

Arbor's agency loan originations demonstrate the company's active role in the housing finance market, particularly through Fannie Mae and Freddie Mac. The growth in the servicing portfolio enhances recurring revenue streams, contributing to financial stability. The structured loan portfolio shows a significant runoff, which could indicate either loan repayments or sales, potentially impacting future interest income. The provision for loan losses aligns with the Current Expected Credit Loss (CECL) accounting standard, which requires companies to forecast credit losses and may affect net income. Furthermore, the increase in the weighted average cost of borrowings due to rising SOFR rates could squeeze interest margins if loan yields don't rise accordingly.

Arbor Realty Trust's performance in the multifamily and structured financing markets is a barometer for the broader real estate lending industry. The reported increase in agency servicing portfolio growth by 11% indicates a robust demand for multifamily housing finance, which aligns with broader market trends of housing shortages and urbanization. The structured portfolio reduction, however, suggests a strategic shift or a response to market conditions such as increased competition or risk aversion in certain loan segments.

Investors may view the company's best-in-class total stockholder return of 28% as an indicator of strong management and market positioning. This exceptional return outpaces many competitors and could attract investor interest in the stock. However, the decrease in distributable earnings for the fourth quarter could raise questions about the sustainability of returns, especially if this trend continues.

The company's financial results should be contextualized within the broader economic environment. The increase in GAAP net income amidst a backdrop of economic uncertainty may signal strong sector-specific dynamics or effective cost management. The weighted average cost of 1.74% over SOFR for CLO vehicles is relatively low, reflecting a favorable borrowing environment, which may shift if interest rates continue to rise. The increase in the average cost of borrowings is consistent with the current trend of monetary policy tightening by the Federal Reserve. This could lead to increased financing costs for the company, potentially affecting future profitability.

Additionally, the provisioning for loan losses and the fair value of loss-sharing obligations under the Fannie Mae program are indicative of prudent risk management but also reflect the inherent risks in real estate lending. The economic outlook, including potential changes in interest rates and real estate market conditions, will be pivotal for Arbor's strategy and performance going forward.

Fourth Quarter Highlights:

  • GAAP net income of $0.48 per diluted common share
  • Distributable earnings1 of $0.51, or $0.54 per diluted common share excluding a $7.0 million realized loss on an office property that was previously reserved for
  • Declares cash dividend on common stock of $0.43 per share representing an annualized dividend of $1.72 per share
  • Strong liquidity position with ~$1 billion in cash and liquidity and ~$600 million of restricted cash in replenishable CLO vehicles with a weighted average cost of 1.74% over SOFR2
  • Agency loan originations of $1.44 billion and a servicing portfolio of ~$30.98 billion, up 3.5%
  • Structured loan originations of $266.2 million, runoff of $817.4 million, and a portfolio of ~$12.62 billion

Full Year Highlights:

  • GAAP net income of $1.75 per diluted common share representing an increase of 5% over last year, and distributable earnings of $2.25 per diluted common share1
  • Raised dividend twice during 2023 to an annual run rate of $1.72 per share, representing a 7.5% increase over the prior year
  • Best-in-class total stockholder return of 28%
  • Agency servicing portfolio growth of 11% from loan originations of $5.11 billion, a 7% increase over the prior year
  • Structured portfolio reduction of 13% with $3.02 billion of multifamily loan runoff, $1.69 billion of which was recaptured into new agency loan originations

UNIONDALE, N.Y., Feb. 16, 2024 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE: ABR), today announced financial results for the fourth quarter ended December 31, 2023. Arbor reported net income for the quarter of $91.7 million, or $0.48 per diluted common share, compared to net income of $88.2 million, or $0.49 per diluted common share for the quarter ended December 31, 2022. Net income for the year was $330.1 million, or $1.75 per diluted common share, compared to $284.8 million, or $1.67 per diluted common share for the year ended December 31, 2022. Distributable earnings for the quarter was $104.1 million, or $0.51 per diluted common share, compared to $114.0 million, or $0.60 per diluted common share for the quarter ended December 31, 2022. Distributable earnings for the year was $452.5 million, or $2.25 per diluted common share, compared to $405.7 million, or $2.23 per diluted common share for the year ended December 31, 2022. 1

Agency Business

Loan Origination Platform

 Agency Loan Volume (in thousands)
 Quarter Ended Year Ended
 December 31, 2023 September 30, 2023 December 31, 2023 December 31, 2022
Fannie Mae$1,177,203  $721,398  $3,773,532  $2,919,566 
Freddie Mac 98,370   339,241   756,827   1,353,001 
Private Label 140,606   67,965   299,934   217,542 
FHA 26,493   19,215   257,199   188,394 
SFR - Fixed Rate    2,030   19,328   89,683 
Total Originations$1,442,672  $1,149,849  $5,106,820  $4,768,186 
        
Total Loan Sales$1,270,356  $1,275,420  $4,889,199  $5,438,623 
        
Total Loan Commitments$1,362,379  $1,211,347  $5,207,148  $5,146,718 
 

For the quarter ended December 31, 2023, the Agency Business generated revenues of $96.3 million, compared to $80.8 million for the third quarter of 2023. Gain on sales, including fee-based services, net on the GSE/Agency business (excluding private label and SFR) was $15.4 million for the quarter, reflecting a margin of 1.36%, compared to $17.7 million and 1.48% for the third quarter of 2023. Income from mortgage servicing rights was $21.1 million for the quarter, reflecting a rate of 1.55% as a percentage of loan commitments, compared to $14.1 million and 1.16% for the third quarter of 2023.

At December 31, 2023, loans held-for-sale was $551.7 million, with financing associated with these loans totaling $413.3 million.

Fee-Based Servicing Portfolio

The Company’s fee-based servicing portfolio totaled $30.98 billion at December 31, 2023. Servicing revenue, net was $33.1 million for the quarter and consisted of servicing revenue of $49.2 million, net of amortization of mortgage servicing rights totaling $16.2 million.

 Fee-Based Servicing Portfolio ($ in thousands)
 December 31, 2023 September 30, 2023 December 31, 2022
 UPB Wtd. Avg.
Fee (bps)
 Wtd. Avg.
Life (years)
 UPB Wtd. Avg.
Fee (bps)
 Wtd. Avg.
Life (years)
 UPB Wtd. Avg.
Fee (bps)
 Wtd. Avg.
Life (years)
Fannie Mae$21,264,578 47.4 7.4 $20,463,620 48.3 7.7 $19,038,124 50.2 8.0
Freddie Mac 5,181,933 24.0 8.5  5,184,888 24.2 8.5  5,153,207 25.0 9.0
Private Label 2,510,449 19.5 6.7  2,371,475 19.2 7.3  2,074,859 18.5 7.6
FHA 1,359,624 14.4 19.2  1,322,832 14.5 19.9  1,155,893 14.9 19.5
Bridge 379,425 10.9 3.2  305,950 11.2 3.6  301,182 12.5 1.7
SFR-Fixed Rate 287,446 20.1 5.1  287,942 20.1 5.8  274,764 19.8 6.0
Total$30,983,455 39.1 8.0 $29,936,707 39.7 8.3 $27,998,029 41.1 8.6
 

Loans sold under the Fannie Mae program contain an obligation to partially guarantee the performance of the loan (“loss-sharing obligations”) and includes $34.6 million for the fair value of the guarantee obligation undertaken at December 31, 2023. The Company recorded a $3.1 million net provision for loss sharing associated with CECL for the fourth quarter of 2023. At December 31, 2023, the Company’s total CECL allowance for loss-sharing obligations was $37.0 million, representing 0.17% of the Fannie Mae servicing portfolio.

Structured Business

Portfolio and Investment Activity

 Structured Portfolio Activity ($ in thousands)
 Quarter Ended Year Ended
 December 31, 2023 September 30, 2023 December 31, 2023 December 31, 2022
 UPB % UPB % UPB % UPB %
Bridge:               
Multifamily$38,700   14% $92,000   38% $415,330   42% $5,468,222   89%
SFR 198,629   75%  140,379   59%  524,060   54%  613,819   10%
  237,329   89%  232,379   97%  939,390   96%  6,082,041   99%
                
Mezzanine/Preferred Equity 28,829   11%  7,779   3%  43,953   4%  69,606   1%
Total Originations$266,158   100% $240,158   100% $983,343   100% $6,151,647   100%
                
Number of Loans Originated 58     42     150     318   
                
SFR Commitments$466,703    $429,452    $1,150,687    $1,086,833   
                
Runoff$817,394    $664,792    $3,354,055    $3,818,554   


 Structured Portfolio ($ in thousands)
 December 31, 2023 September 30, 2023 December 31, 2022
 UPB % UPB % UPB %
Bridge:           
Multifamily$10,789,936   86% $11,421,819   87% $12,830,999   89%
SFR 1,316,803   10%  1,163,648   9%  927,373   6%
Other 166,505   1%  205,505   2%  337,682   2%
  12,273,244   97%  12,790,972   98%  14,096,054   97%
            
Mezzanine/Preferred Equity 334,198   3%  321,729   2%  324,224   2%
SFR Permanent 7,564   <1%  9,694   <1%  35,854   <1%
Total Portfolio$12,615,006   100% $13,122,395   100% $14,456,132   100%
 

At December 31, 2023, the loan and investment portfolio’s unpaid principal balance, excluding loan loss reserves, was $12.62 billion, with a weighted average current interest pay rate of 8.42%, compared to $13.12 billion and 8.80% at September 30, 2023. Including certain fees earned and costs associated with the loan and investment portfolio, the weighted average current interest pay rate was 8.98% at December 31, 2023, compared to 9.12% at September 30, 2023. The decrease in pay rate was primarily due to an increase in non-performing loans in the fourth quarter of 2023.

The average balance of the Company’s loan and investment portfolio during the fourth quarter of 2023, excluding loan loss reserves, was $12.96 billion with a weighted average yield of 9.31%, compared to $13.40 billion and 9.28% for the third quarter of 2023.

During the fourth quarter of 2023, the Company recorded a $17.3 million provision for loan losses associated with CECL, which was net of $4.8 million of loan loss recoveries. At December 31, 2023, the Company’s total allowance for loan losses was $195.7 million. The Company had sixteen non-performing loans with a carrying value of $262.7 million, before related loan loss reserves of $27.1 million, compared to twelve loans with a carrying value of $150.5 million, before loan loss reserves of $12.6 million at September 30, 2023.

Financing Activity

The balance of debt that finances the Company’s loan and investment portfolio at December 31, 2023 was $11.57 billion with a weighted average interest rate including fees of 7.45% as compared to $11.86 billion and a rate of 7.41% at September 30, 2023.

The average balance of debt that finances the Company’s loan and investment portfolio for the fourth quarter of 2023 was $11.77 billion, as compared to $12.00 billion for the third quarter of 2023. The average cost of borrowings for the fourth quarter of 2023 was 7.48%, compared to 7.37% for the third quarter of 2023. The increase in average cost was primarily due to an increase in the SOFR rate in the fourth quarter of 2023.

Dividend

The Company announced today that its Board of Directors has declared a quarterly cash dividend of $0.43 per share of common stock for the quarter ended December 31, 2023. The dividend is payable on March 15, 2024 to common stockholders of record on March 4, 2024. The ex-dividend date is March 1, 2024.

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) 245-3047 for domestic callers and (203) 518-9765 for international callers. Please use participant passcode ABRQ423 when prompted by the operator.

A telephonic replay of the call will be available until February 23, 2024. The replay dial-in numbers are (800) 934-8221 for domestic callers and (402) 220-6990 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, 2023 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

  1. 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 page of this release.
  2. Amounts reflect approximate balances as of February 14, 2024.
Contact:Arbor Realty Trust, Inc.
Paul Elenio, Chief Financial Officer
516-506-4422
pelenio@arbor.com



ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Consolidated Statements of Income
($ in thousands—except share and per share data)
 
 Quarter Ended December 31, Year Ended December 31,
  2023   2022   2023   2022 
 (Unaudited) (Unaudited)    
Interest income$331,060  $320,597  $1,331,219  $948,401 
Interest expense 227,479   207,538   903,228   557,617 
Net interest income 103,581   113,059   427,991   390,784 
        
Other revenue:       
Gain on sales, including fee-based services, net 16,727   23,290   72,522   55,816 
Mortgage servicing rights 21,144   17,059   69,912   69,346 
Servicing revenue, net 33,073   27,679   130,449   92,192 
Property operating income 1,447   846   5,708   1,877 
Gain on derivative instruments, net 10,345   16,526   6,763   26,609 
Other income (loss), net 2,571   (1,500)  7,667   (17,563)
Total other revenue 85,307   83,900   293,021   228,277 
        
Other expenses:       
Employee compensation and benefits 36,270   42,089   159,788   161,825 
Selling and administrative 12,686   13,030   51,260   53,990 
Property operating expenses 1,670   694   5,897   2,136 
Depreciation and amortization 2,446   2,640   9,743   8,732 
Provision for loss sharing (net of recoveries) 3,168   4,061   15,695   1,862 
Provision for credit losses (net of recoveries) 18,399   11,469   73,446   21,169 
Litigation settlement    7,350      7,350 
Total other expenses 74,639   81,333   315,829   257,064 
        
Income before extinguishment of debt, income from equity affiliates, and income taxes 114,249   115,626   405,183   361,997 
Loss on extinguishment of debt    (320)  (1,561)  (4,933)
Income (loss) from equity affiliates 3,586   (4,260)  24,281   14,247 
Provision for income taxes (7,911)  (4,318)  (27,347)  (17,484)
        
Net income 109,924   106,728   400,556   353,827 
        
Preferred stock dividends 10,342   10,342   41,369   40,954 
Net income attributable to noncontrolling interest 7,923   8,234   29,122   28,044 
Net income attributable to common stockholders$91,659  $88,152  $330,065  $284,829 
        
Basic earnings per common share$0.49  $0.51  $1.79  $1.72 
Diluted earnings per common share$0.48  $0.49  $1.75  $1.67 
        
Weighted average shares outstanding:       
Basic 188,503,682   174,444,084   184,641,642   165,355,167 
Diluted 222,861,214   209,743,771   218,843,613   199,112,630 
        
Dividends declared per common share$0.43  $0.40  $1.68  $1.54 



ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
($ in thousands—except share and per share data)
 
 December 31, 2023 December 31, 2022
Assets:   
Cash and cash equivalents$928,974  $534,357 
Restricted cash 608,233   713,808 
Loans and investments, net (allowance for credit losses of $195,664 and $132,559) 12,377,806   14,254,674 
Loans held-for-sale, net 551,707   354,070 
Capitalized mortgage servicing rights, net 391,254   401,471 
Securities held-to-maturity, net (allowance for credit losses of $6,256 and $3,153) 155,279   156,547 
Investments in equity affiliates 79,303   79,130 
Due from related party 64,421   77,419 
Goodwill and other intangible assets 91,378   96,069 
Other assets 490,281   371,440 
Total assets$15,738,636  $17,038,985 
    
Liabilities and Equity:   
Credit and repurchase facilities$3,237,827  $3,841,814 
Securitized debt 6,935,010   7,849,270 
Senior unsecured notes 1,333,968   1,385,994 
Convertible senior unsecured notes 283,118   280,356 
Junior subordinated notes to subsidiary trust issuing preferred securities 143,896   143,128 
Due to related party 13,799   12,350 
Due to borrowers 121,707   61,237 
Allowance for loss-sharing obligations 71,634   57,168 
Other liabilities 343,072   335,789 
Total liabilities 12,484,031   13,967,106 
    
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: 633,684   633,684 
Special voting preferred shares - 16,293,589 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 - 188,505,264 and 178,230,522 shares issued and outstanding 1,885   1,782 
Additional paid-in capital 2,367,188   2,204,481 
Retained earnings 115,216   97,049 
Total Arbor Realty Trust, Inc. stockholders’ equity 3,117,973   2,936,996 
    
Noncontrolling interest 136,632   134,883 
Total equity 3,254,605   3,071,879 
    
Total liabilities and equity$15,738,636  $17,038,985 



ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Statement of Income Segment Information - (Unaudited)
(in thousands)
 
 Quarter Ended December 31, 2023
 Structured
Business
 Agency
Business
 Other(1) Consolidated
Interest income$317,132  $13,928  $-  $331,060 
Interest expense 221,747   5,732   -   227,479 
Net interest income 95,385   8,196   -   103,581 
        
Other revenue:       
Gain on sales, including fee-based services, net -   16,727   -   16,727 
Mortgage servicing rights -   21,144   -   21,144 
Servicing revenue -   49,246   -   49,246 
Amortization of MSRs -   (16,173)  -   (16,173)
Property operating income 1,447   -   -   1,447 
Gain on derivative instruments, net -   10,345   -   10,345 
Other income 1,448   1,123   -   2,571 
Total other revenue 2,895   82,412   -   85,307 
        
Other expenses:       
Employee compensation and benefits 11,516   24,754   -   36,270 
Selling and administrative 5,399   7,287   -   12,686 
Property operating expenses 1,670   -   -   1,670 
Depreciation and amortization 1,273   1,173   -   2,446 
Provision for loss sharing (net of recoveries) -   3,168   -   3,168 
Provision for credit losses (net of recoveries) 18,086   313   -   18,399 
Total other expenses 37,944   36,695   -   74,639 
        
Income before income from equity affiliates and income taxes 60,336   53,913   -   114,249 
        
Income from equity affiliates 3,586   -   -   3,586 
Benefit from (provision for) income taxes 497   (8,408)  -   (7,911)
        
Net income 64,419   45,505   -   109,924 
        
Preferred stock dividends 10,342   -   -   10,342 
Net income attributable to noncontrolling interest -   -   7,923   7,923 
Net income attributable to common stockholders$54,077  $45,505  $(7,923) $91,659 

(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)
  
 December 31, 2023
 Structured
Business
 Agency
Business
 Consolidated
Assets:     
Cash and cash equivalents$619,487  $309,487  $928,974 
Restricted cash 595,342   12,891   608,233 
Loans and investments, net 12,377,806   -   12,377,806 
Loans held-for-sale, net -   551,707   551,707 
Capitalized mortgage servicing rights, net -   391,254   391,254 
Securities held-to-maturity, net -   155,279   155,279 
Investments in equity affiliates 79,303   -   79,303 
Goodwill and other intangible assets 12,500   78,878   91,378 
Other assets and due from related party 453,073   101,629   554,702 
Total assets$14,137,511  $1,601,125  $15,738,636 
      
Liabilities:     
Debt obligations$11,520,492  $413,327  $11,933,819 
Allowance for loss-sharing obligations -   71,634   71,634 
Other liabilities and due to related party 369,588   108,990   478,578 
Total liabilities$11,890,080  $593,951  $12,484,031 



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 December 31, Year Ended December 31,
  2023   2022   2023   2022 
Net income attributable to common stockholders$91,659  $88,152  $330,065  $284,829 
        
Adjustments:       
Net income attributable to noncontrolling interest 7,923   8,234   29,122   28,044 
Income from mortgage servicing rights (21,144)  (17,059)  (69,912)  (69,346)
Deferred tax (benefit) provision (719)  6,092   (7,349)  (1,741)
Amortization and write-offs of MSRs 19,145   22,528   77,829   104,378 
Depreciation and amortization 4,115   3,225   16,425   11,069 
Loss on extinguishment of debt -   320   1,561   4,933 
Provision for credit losses, net 11,206   14,823   68,642   25,077 
(Gain) loss on derivative instruments, net (10,880)  (14,992)  (8,844)  3,480 
Stock-based compensation 2,799   2,643   14,940   14,973 
        
Distributable earnings (1)$104,104  $113,966  $452,479  $405,696 
        
Diluted distributable earnings per share (1)$0.51  $0.60  $2.25  $2.23 
        
Diluted weighted average shares outstanding (1) (2) 205,498,651   191,273,691   201,549,221   182,224,404 

(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)  The diluted weighted average shares outstanding were adjusted to exclude the potential shares issuable upon conversion and settlement of the Company's convertible senior notes principal balance. For the quarters ended December 31, 2023 and December 31, 2022, the diluted weighted average shares outstanding excluded 17,362,563 and 18,470,080 of these potentially issuable shares, respectively. For the years ended December 31, 2023 and December 31, 2022, the diluted weighted average shares outstanding excluded 17,294,392 and 16,888,226 of these potentially issuable shares, respectively.

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 (net of any tax impact), 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.

 


FAQ

What was Arbor Realty Trust's (ABR) GAAP net income per diluted common share for Q4 2023?

Arbor Realty Trust reported a GAAP net income of $0.48 per diluted common share for Q4 2023.

What was Arbor Realty Trust's (ABR) distributable earnings per diluted common share for Q4 2023?

Arbor Realty Trust reported distributable earnings of $0.51 per diluted common share for Q4 2023.

What was Arbor Realty Trust's (ABR) cash dividend per share declared for Q4 2023?

Arbor Realty Trust declared a cash dividend of $0.43 per share for Q4 2023.

What was Arbor Realty Trust's (ABR) total stockholder return for the year?

Arbor Realty Trust achieved a total stockholder return of 28% for the year.

What was Arbor Realty Trust's (ABR) total loan and investment portfolio's unpaid principal balance at December 31, 2023?

Arbor Realty Trust's total loan and investment portfolio's unpaid principal balance was $12.62 billion at December 31, 2023.

What was Arbor Realty Trust's (ABR) total allowance for loan losses at December 31, 2023?

Arbor Realty Trust's total allowance for loan losses was $195.7 million at December 31, 2023.

What was Arbor Realty Trust's (ABR) weighted average interest rate for the debt financing the loan and investment portfolio at December 31, 2023?

Arbor Realty Trust had a weighted average interest rate of 7.45% for the debt financing the loan and investment portfolio at December 31, 2023.

Arbor Realty Trust, Inc.

NYSE:ABR

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2.60B
181.43M
2.52%
66.39%
38.68%
Other Financial Vehicles
Finance and Insurance
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United States of America
UNIONDALE

About ABR

about us for over 20 years, uniondale, ny-based arbor realty trust, inc. (nyse: abr) has been helping multifamily and commercial real estate clients achieve their financial goals by focusing on growing long-term relationships and conducting business as not simply another real estate lender, but a partner. we value our clients to such an extent that we’re more comfortable calling them partners, and their relationships with arbor are the foundation of our business. founded by chairman and ceo ivan kaufman, arbor realty trust, inc. is a real estate investment trust and direct lender specializing in loan origination and servicing for multifamily, seniors housing, healthcare and other diverse commercial real estate assets. arbor is a top 10 fannie mae dus® multifamily lender by volume and a top fannie mae small loan lender, a freddie mac program plus® seller/servicer and the top freddie mac small balance loan lender, a fannie mae and freddie mac seniors housing lender, an fha multifamily ac