Arbor Realty Trust Reports Second Quarter 2026 Results and Declares Dividend of $0.17 per Share
Rhea-AI Summary
Arbor Realty Trust (NYSE: ABR) reported a second quarter 2026 GAAP net loss of $(37.3) million, or $(0.20) per diluted common share, versus net income of $24.0 million, or $0.12, a year earlier. Distributable earnings were $21.7 million, or $0.10 per diluted share, down from $52.1 million, or $0.25, in second quarter 2025.
The Board declared a quarterly cash dividend of $0.17 per common share, payable August 28, 2026 to holders of record on August 14, 2026. Arbor generated roughly $500 million of additional liquidity through a legacy CLO redemption that created about $132.3 million of liquidity and an upsized $375 million 6.25% convertible senior notes due 2029 offering, using proceeds to redeem $270 million of 4.50% senior notes due 2026 and to repurchase common stock.
The company repurchased $114.3 million of common stock at $5.42 per share and an additional $20.8 million at $5.85 per share. The fee-based servicing portfolio was about $36.70 billion, while the structured loan portfolio UPB was about $12.11 billion, with originations of $689.0 million and runoff of $539.7 million.
Positive
- Convertible notes raise $375 million at 6.25% due 2029
- Approximately $500 million of additional liquidity generated from recent capital markets and CLO actions
- $114.3 million common stock repurchased at 49% of book value in July 2026
- Servicing portfolio $36.70 billion with servicing revenue, net of $23.9 million in Q2 2026
- Structured loan portfolio UPB $12.11 billion with Q2 2026 originations of $689.0 million
- Agency revenues $64.5 million in Q2 2026, up from $57.9 million in Q1 2026
Negative
- GAAP net loss $(37.3) million in Q2 2026 vs $24.0 million income in Q2 2025
- Distributable earnings $0.10 per share in Q2 2026 vs $0.25 in Q2 2025
- $38.2 million Q2 2026 provision for loan losses and $13.6 million REO impairments
- $13.5 million net provision for loss sharing in Q2 2026; CECL loss-sharing allowance $82.3 million
- Dividend per share $0.17 for Q2 2026 vs $0.30 for Q2 2025
- Nineteen non-performing loans with $428.8 million UPB and three additional non-accrual loans totaling $94.9 million at June 30, 2026
Market Reaction – ABR
Following this news, ABR has declined 1.04%, reflecting a mild negative market reaction. Argus tracked a trough of -3.1% from its starting point during tracking. Our momentum scanner has triggered 2 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $4.74.
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Key Figures
Previous Dividends,earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 08 | Q1 2026 earnings | Negative | -11.8% | Reported low distributable earnings and declared a $0.17 quarterly dividend. |
| Feb 27 | Q4 2025 earnings | Positive | +9.2% | Reported positive GAAP earnings and declared a $0.30 quarterly dividend. |
| Oct 31 | Q3 2025 earnings | Positive | -12.6% | Reported earnings and dividend while announcing liquidity-producing balance-sheet actions. |
| Aug 01 | Q2 2025 earnings | Positive | +0.4% | Reported positive GAAP earnings, originations, and a quarterly dividend. |
| May 02 | Q1 2025 earnings | Negative | -3.1% | Reported lower GAAP earnings alongside loan modifications and a quarterly dividend. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings and dividend releases produced mixed reactions, with a historical average 24-hour move of -3.57%.
Key Terms
distributable earnings financial
cecl financial
loss-sharing obligations financial
convertible senior notes financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Company Highlights:
- GAAP net loss of
$(37.3) million , or$(0.20) per diluted common share - Distributable earnings1 of
$0.10 per diluted common share, or$0.15 excluding$9.6 million of net realized losses from the resolution of certain legacy assets - Generated ~
$500 million of additional liquidity through two recent capital markets transactions with a portion of the proceeds used to:- Repurchase
$114.3 million of common stock at$5.42 per share, or49% of book value in July 2026 - Redeem
$270 million of senior notes in July 2026
- Repurchase
- Repurchased an additional
$20.8 million of stock at$5.85 per share, or53% of book value - Declares cash dividend on common stock of
$0.17 per share - Servicing portfolio of ~
$36.70 billion , agency loan originations of$1.08 billion - Structured loan portfolio of ~
$12.11 billion , originations of$689.0 million and runoff of$539.7 million
UNIONDALE, N.Y., July 31, 2026 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE: ABR), today announced financial results for the second quarter ended June 30, 2026. Arbor reported a net loss for the quarter of
Agency Business
Loan Origination Platform
| Agency Loan Volume (in thousands) | |||||
| Quarter Ended | |||||
| June 30, 2026 | March 31, 2026 | ||||
| Fannie Mae | $ | 619,130 | $ | 570,815 | |
| Freddie Mac | 428,278 | 91,255 | |||
| SFR-Fixed Rate | 21,272 | — | |||
| FHA | 8,083 | 45,507 | |||
| Total Originations | $ | 1,076,763 | $ | 707,577 | |
| Total Loan Sales | $ | 1,143,438 | $ | 670,972 | |
| Total Loan Commitments | $ | 1,211,900 | $ | 733,860 | |
For the quarter ended June 30, 2026, the Agency Business generated revenues of
At June 30, 2026, loans held-for-sale was
Fee-Based Servicing Portfolio
The Company’s fee-based servicing portfolio totaled
| Fee-Based Servicing Portfolio ($ in thousands) | |||||||||||||
| June 30, 2026 | March 31, 2026 | ||||||||||||
| UPB | Wtd. Avg. Fee (bps) | Wtd. Avg. Life (years) | UPB | Wtd. Avg. Fee (bps) | Wtd. Avg. Life (years) | ||||||||
| Fannie Mae | $ | 24,419,734 | 43.9 | 5.2 | $ | 24,261,724 | 44.4 | 5.4 | |||||
| Freddie Mac | 7,672,121 | 17.6 | 5.7 | 7,368,979 | 18.2 | 5.7 | |||||||
| Private Label | 2,477,077 | 18.7 | 4.1 | 2,554,209 | 18.7 | 4.3 | |||||||
| FHA | 1,585,871 | 13.8 | 18.9 | 1,584,644 | 13.8 | 19.0 | |||||||
| Bridge | 277,333 | 10.4 | 1.7 | 277,523 | 10.4 | 2.0 | |||||||
| SFR-Fixed Rate | 272,226 | 20.0 | 3.8 | 264,008 | 20.0 | 3.8 | |||||||
| Total | $ | 36,704,362 | 35.0 | 5.8 | $ | 36,311,087 | 35.5 | 5.9 | |||||
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 | |||||||||||
| June 30, 2026 | March 31, 2026 | ||||||||||
| UPB | % | UPB | % | ||||||||
| Bridge: | |||||||||||
| SFR | $ | 490,617 | 71 | % | $ | 321,122 | 42 | % | |||
| Multifamily | 159,550 | 23 | % | 405,600 | 53 | % | |||||
| 650,167 | 94 | % | 726,722 | 95 | % | ||||||
| Construction - Multifamily | 38,810 | 6 | % | 40,870 | 5 | % | |||||
| Total Originations | $ | 688,977 | 100 | % | $ | 767,592 | 100 | % | |||
| Number of Loans Originated | 14 | 6 | |||||||||
| Commitments: | |||||||||||
| SFR | $ | 48,785 | $ | 53,000 | |||||||
| Construction - Multifamily | — | 113,070 | |||||||||
| Total Commitments | $ | 48,785 | $ | 166,070 | |||||||
| Loan Runoff | $ | 539,745 | $ | 861,033 | |||||||
| Structured Portfolio ($ in thousands) | |||||||||||
| June 30, 2026 | March 31, 2026 | ||||||||||
| UPB | % | UPB | % | ||||||||
| Bridge: | |||||||||||
| Multifamily | $ | 7,895,187 | 65 | % | $ | 7,897,122 | 66 | % | |||
| SFR | 3,376,845 | 28 | % | 3,265,802 | 27 | % | |||||
| Other | 46,519 | <1 | % | 46,519 | <1 | % | |||||
| 11,318,551 | 94 | % | 11,209,443 | 94 | % | ||||||
| Mezzanine/Preferred Equity | 502,998 | 4 | % | 497,961 | 4 | % | |||||
| Construction - Multifamily | 285,482 | 2 | % | 289,889 | 2 | % | |||||
| Total Portfolio | $ | 12,107,031 | 100 | % | $ | 11,997,293 | 100 | % | |||
At June 30, 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 second quarter of 2026, excluding loan loss reserves, was
During the second quarter of 2026, the Company recorded a
In addition, at June 30, 2026, the Company had three non-accrual loans with a UPB of
During the second quarter of 2026, the Company modified 7 loans to borrowers experiencing financial difficulty with a total UPB of
The Company foreclosed on five loans with a UPB totaling
Financing Activity
The balance of debt that finances the Company’s loan and investment portfolio at June 30, 2026 was
The average balance of debt that finances the Company’s loan and investment portfolio for the second quarter of 2026 was
The Company redeemed in full and at par a legacy CLO with
In July 2026, the Company completed an upsized
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 (833) 419-0865 for domestic callers and (785) 838-9333 for international callers. Please use participant passcode ABRQ226 when prompted by the operator.
A telephonic replay of the call will be available until August 7, 2026. The replay dial-in numbers are (800) 925-9416 for domestic callers and (402) 220-5387 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 Operations - (Unaudited) ($ in thousands—except share and per share data) | |||||||||||||||
| Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Interest income | $ | 230,858 | $ | 240,303 | $ | 465,905 | $ | 480,997 | |||||||
| Interest expense | 177,761 | 171,578 | 352,963 | 336,829 | |||||||||||
| Net interest income | 53,097 | 68,725 | 112,942 | 144,168 | |||||||||||
| Other revenue: | |||||||||||||||
| Gain on sales, including fee-based services, net | 15,176 | 13,658 | 27,681 | 26,439 | |||||||||||
| Mortgage servicing rights | 12,110 | 10,930 | 21,770 | 19,061 | |||||||||||
| Servicing revenue, net | 23,879 | 27,437 | 49,619 | 53,040 | |||||||||||
| Property operating income | 8,313 | 5,452 | 16,373 | 9,839 | |||||||||||
| Gain on derivative instruments, net | 1,041 | 219 | 548 | 3,619 | |||||||||||
| Other income, net | 2,260 | 3,989 | 4,336 | 8,407 | |||||||||||
| Total other revenue | 62,779 | 61,685 | 120,327 | 120,405 | |||||||||||
| Other expenses: | |||||||||||||||
| Employee compensation and benefits | 45,096 | 41,181 | 92,779 | 87,217 | |||||||||||
| Selling and administrative | 15,868 | 14,859 | 32,821 | 31,171 | |||||||||||
| Property operating expenses | 12,670 | 6,802 | 24,635 | 10,276 | |||||||||||
| Depreciation and amortization | 5,929 | 5,848 | 13,033 | 9,592 | |||||||||||
| Impairment loss on real estate owned | 13,650 | — | 26,150 | — | |||||||||||
| Provision for loss sharing, net | 13,472 | 4,215 | 18,009 | 6,002 | |||||||||||
| Provision for credit losses, net | 38,163 | 19,004 | 43,979 | 28,079 | |||||||||||
| Total other expenses | 144,848 | 91,909 | 251,406 | 172,337 | |||||||||||
| (Loss) income before extinguishment of debt, gain (loss) on real estate, income from equity affiliates and income taxes | (28,972 | ) | 38,501 | (18,137 | ) | 92,236 | |||||||||
| Loss on extinguishment of debt | — | — | — | (2,319 | ) | ||||||||||
| Gain (loss) on real estate | 64 | (1,448 | ) | (2,073 | ) | (4,258 | ) | ||||||||
| Income from equity affiliates | 1,893 | 2,654 | 6,304 | 1,020 | |||||||||||
| Provision for income taxes | (3,150 | ) | (3,398 | ) | (5,235 | ) | (6,989 | ) | |||||||
| Net (loss) income | (30,165 | ) | 36,309 | (19,141 | ) | 79,690 | |||||||||
| Preferred stock dividends | 10,342 | 10,342 | 20,684 | 20,684 | |||||||||||
| Net (loss) income attributable to noncontrolling interest | (3,165 | ) | 2,015 | (3,112 | ) | 4,617 | |||||||||
| Net (loss) income attributable to common stockholders | $ | (37,342 | ) | $ | 23,952 | $ | (36,713 | ) | $ | 54,389 | |||||
| Basic (loss) earnings per common share | $ | (0.20 | ) | $ | 0.12 | $ | (0.19 | ) | $ | 0.28 | |||||
| Diluted (loss) earnings per common share | $ | (0.20 | ) | $ | 0.12 | $ | (0.19 | ) | $ | 0.28 | |||||
| Weighted average shares outstanding: | |||||||||||||||
| Basic | 190,806,800 | 192,236,206 | 192,491,494 | 191,154,501 | |||||||||||
| Diluted | 190,806,800 | 209,003,002 | 192,491,494 | 207,938,574 | |||||||||||
| Dividends declared per common share | $ | 0.17 | $ | 0.30 | $ | 0.47 | $ | 0.73 | |||||||
| ARBOR REALTY TRUST, INC. AND SUBSIDIARIES Consolidated Balance Sheets ($ in thousands—except share and per share data) | |||||||
| June 30, 2026 | |||||||
| (Unaudited) | December 31, 2025 | ||||||
| Assets: | |||||||
| Cash and cash equivalents | $ | 287,525 | $ | 482,875 | |||
| Restricted cash | 138,382 | 67,347 | |||||
| Loans and investments, net (allowance for credit losses of | 11,915,216 | 11,934,248 | |||||
| Loans held-for-sale, net | 375,797 | 409,081 | |||||
| Capitalized mortgage servicing rights, net | 323,887 | 340,842 | |||||
| Securities held-to-maturity, net (allowance for credit losses of | 157,137 | 156,087 | |||||
| Investments in equity affiliates | 82,762 | 57,966 | |||||
| Real estate owned, net | 545,946 | 498,938 | |||||
| Goodwill and other intangible assets | 85,770 | 86,553 | |||||
| Other assets | 440,403 | 460,966 | |||||
| Total assets | $ | 14,352,825 | $ | 14,494,903 | |||
| Liabilities and Equity: | |||||||
| Credit and repurchase facilities | $ | 5,812,258 | $ | 5,149,651 | |||
| Securitized debt | 2,972,246 | 3,468,258 | |||||
| Senior unsecured notes | 1,857,769 | 2,029,078 | |||||
| Junior subordinated notes to subsidiary trust issuing preferred securities | 145,907 | 145,497 | |||||
| Notes payable - real estate owned | 270,410 | 222,965 | |||||
| Due to borrowers | 27,562 | 33,451 | |||||
| Allowance for loss-sharing obligations | 118,898 | 97,579 | |||||
| Other liabilities | 266,752 | 281,271 | |||||
| Total liabilities | 11,471,802 | 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, | 1,890 | 1,955 | |||||
| Additional paid-in capital | 2,409,539 | 2,454,312 | |||||
| Accumulated deficit | (267,177 | ) | (136,597 | ) | |||
| Total Arbor Realty Trust, Inc. stockholders' equity | 2,777,935 | 2,953,353 | |||||
| Noncontrolling interest | 103,088 | 113,800 | |||||
| Total equity | 2,881,023 | 3,067,153 | |||||
| Total liabilities and equity | $ | 14,352,825 | $ | 14,494,903 | |||
| ARBOR REALTY TRUST, INC. AND SUBSIDIARIES Statement of Operations Segment Information - (Unaudited) (in thousands) | |||||||||||||||
| Quarter Ended June 30, 2026 | |||||||||||||||
| Structured Business | Agency Business | Other (1) | Consolidated | ||||||||||||
| Interest income | $ | 219,211 | $ | 11,647 | $ | — | $ | 230,858 | |||||||
| Interest expense | 172,066 | 5,695 | — | 177,761 | |||||||||||
| Net interest income | 47,145 | 5,952 | — | 53,097 | |||||||||||
| Other revenue: | |||||||||||||||
| Gain on sales, including fee-based services, net | — | 15,176 | — | 15,176 | |||||||||||
| Mortgage servicing rights | — | 12,110 | — | 12,110 | |||||||||||
| Servicing revenue | — | 42,126 | — | 42,126 | |||||||||||
| Amortization of MSRs | — | (18,247 | ) | — | (18,247 | ) | |||||||||
| Property operating income | 8,313 | — | — | 8,313 | |||||||||||
| Gain on derivative instruments, net | — | 1,041 | — | 1,041 | |||||||||||
| Other income, net | 1,638 | 622 | — | 2,260 | |||||||||||
| Total other revenue | 9,951 | 52,828 | — | 62,779 | |||||||||||
| Other expenses: | |||||||||||||||
| Employee compensation and benefits | 18,667 | 26,429 | — | 45,096 | |||||||||||
| Selling and administrative | 8,269 | 7,599 | — | 15,868 | |||||||||||
| Property operating expenses | 12,670 | — | — | 12,670 | |||||||||||
| Depreciation and amortization | 5,537 | 392 | — | 5,929 | |||||||||||
| Impairment loss on real estate owned | 13,650 | — | — | 13,650 | |||||||||||
| Provision for loss sharing, net | — | 13,472 | — | 13,472 | |||||||||||
| Provision for credit losses, net | 38,245 | (82 | ) | — | 38,163 | ||||||||||
| Total other expenses | 97,038 | 47,810 | — | 144,848 | |||||||||||
| (Loss) income before gain on real estate, income from equity affiliates and income taxes | (39,942 | ) | 10,970 | — | (28,972 | ) | |||||||||
| Gain on real estate | 64 | — | — | 64 | |||||||||||
| Income from equity affiliates | 1,893 | — | — | 1,893 | |||||||||||
| Provision for income taxes | (626 | ) | (2,524 | ) | — | (3,150 | ) | ||||||||
| Net (loss) income | (38,611 | ) | 8,446 | — | (30,165 | ) | |||||||||
| Preferred stock dividends | 10,342 | — | — | 10,342 | |||||||||||
| Net loss attributable to noncontrolling interest | — | — | (3,165 | ) | (3,165 | ) | |||||||||
| Net (loss) income attributable to common stockholders | $ | (48,953 | ) | $ | 8,446 | $ | 3,165 | $ | (37,342 | ) | |||||
| (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) | ||||||||
| June 30, 2026 | ||||||||
| Structured Business | Agency Business | Consolidated | ||||||
| Assets: | ||||||||
| Cash and cash equivalents | $ | 58,886 | $ | 228,639 | $ | 287,525 | ||
| Restricted cash | 103,077 | 35,305 | 138,382 | |||||
| Loans and investments, net | 11,915,216 | — | 11,915,216 | |||||
| Loans held-for-sale, net | — | 375,797 | 375,797 | |||||
| Capitalized mortgage servicing rights, net | — | 323,887 | 323,887 | |||||
| Securities held-to-maturity, net | — | 157,137 | 157,137 | |||||
| Investments in equity affiliates | 82,762 | — | 82,762 | |||||
| Real estate owned, net | 545,946 | — | 545,946 | |||||
| Goodwill and other intangible assets | 12,500 | 73,270 | 85,770 | |||||
| Other assets | 345,603 | 94,800 | 440,403 | |||||
| Total assets | $ | 13,063,990 | $ | 1,288,835 | $ | 14,352,825 | ||
| Liabilities: | ||||||||
| Debt obligations | $ | 10,699,313 | $ | 359,277 | $ | 11,058,590 | ||
| Allowance for loss-sharing obligations | — | 118,898 | 118,898 | |||||
| Other liabilities | 211,266 | 83,048 | 294,314 | |||||
| Total liabilities | $ | 10,910,579 | $ | 561,223 | $ | 11,471,802 | ||
| ARBOR REALTY TRUST, INC. AND SUBSIDIARIES Reconciliation of Distributable Earnings to GAAP Net (Loss) Income - (Unaudited) ($ in thousands—except share and per share data) | |||||||||||||||
| Quarter Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Net (loss) income attributable to common stockholders | $ | (37,342 | ) | $ | 23,952 | $ | (36,713 | ) | $ | 54,389 | |||||
| Adjustments: | |||||||||||||||
| Net (loss) income attributable to noncontrolling | (3,165 | ) | 2,015 | (3,112 | ) | 4,617 | |||||||||
| Income from mortgage servicing rights | (12,110 | ) | (10,930 | ) | (21,770 | ) | (19,061 | ) | |||||||
| Deferred tax benefit | (2,211 | ) | (1,603 | ) | (4,791 | ) | (1,741 | ) | |||||||
| Amortization and write-offs of MSRs | 21,093 | 19,825 | 40,433 | 40,689 | |||||||||||
| Depreciation and amortization | 6,876 | 6,582 | 14,692 | 11,149 | |||||||||||
| Loss on extinguishment of debt | — | — | — | 2,319 | |||||||||||
| Provision for credit losses, net | 40,532 | 8,435 | 19,654 | 9,192 | |||||||||||
| (Gain) loss on derivative instruments, net | (477 | ) | (674 | ) | 821 | (5,371 | ) | ||||||||
| Loss on real estate | 5,388 | 1,857 | 17,917 | 4,667 | |||||||||||
| Stock-based compensation | 3,125 | 2,610 | 9,029 | 8,545 | |||||||||||
| Distributable earnings (1) | $ | 21,709 | $ | 52,069 | $ | 36,160 | $ | 109,394 | |||||||
| Diluted weighted average shares outstanding (1) (2) | 207,661,095 | 209,003,002 | 209,687,157 | 207,938,574 | |||||||||||
| Diluted distributable earnings per share (1) | $ | 0.10 | $ | 0.25 | $ | 0.17 | $ | 0.53 | |||||||
| (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 and six months ended June 30, 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), 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.
