Arbor Realty Trust (NYSE: ABR) posts weaker Q1 2026 results and trims payout
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Arbor Realty Trust, Inc. reported sharply weaker first-quarter 2026 results while declaring a quarterly common dividend of $0.17 per share. GAAP net income attributable to common stockholders fell to $0.6 million, or $0.00 per diluted share, from $30.4 million, or $0.16 per share, a year earlier. Distributable earnings dropped to $14.4 million, or $0.07 per diluted share, compared with $57.3 million, or $0.28 per share, for the first quarter of 2025. The company cited higher expenses, including a $12.5 million impairment on real estate owned and higher loss provisions.
Arbor’s fee-based servicing portfolio remained sizable at $36.31 billion unpaid principal balance, with servicing revenue, net of amortization, of $25.7 million in the quarter. The structured loan and investment portfolio had $12.00 billion of unpaid principal balance at a 7.03% weighted average interest rate including fees, while debt financing this portfolio totaled $10.71 billion at a 6.40% weighted average cost including fees. The company also completed a $762.6 million collateralized securitization and continued to manage credit quality with 19 non-performing loans totaling $481.5 million unpaid principal balance and a $131.2 million allowance for loan losses.
Positive
- None.
Negative
- Earnings deterioration and dividend pressure: Net income attributable to common stockholders dropped from $30.4 million to $0.6 million year over year, distributable earnings fell from $57.3 million to $14.4 million, and dividends declared per common share declined from $0.43 to $0.30.
Insights
Quarter shows steep earnings decline driven by credit costs and impairments.
Arbor Realty Trust posted a large year-over-year drop in profitability. Net income attributable to common stockholders fell to $0.6 million from $30.4 million, and distributable earnings declined to $14.4 million from $57.3 million, pressuring dividend coverage.
Results reflect heavier credit and real estate charges: a $12.5 million impairment on real estate owned, a $5.8 million provision for credit losses, and a $4.5 million provision for loss sharing. These items offset solid fee income from the $36.31 billion servicing portfolio and interest spread on the $12.00 billion loan book.
On the balance sheet, the loan portfolio’s allowance for loan losses stood at $131.2 million, and non-performing loans decreased to $481.5 million unpaid principal balance as of March 31, 2026. The company also executed a $762.6 million collateralized securitization, issuing $674.0 million of investment grade notes, which supports liquidity but adds structural complexity.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net income attributable to common stockholders: $0.6 million
Distributable earnings: $14.4 million
Dividend per common share: $0.17
+5 more
8 metrics
Net income attributable to common stockholders
$0.6 million
Quarter ended March 31, 2026 vs $30.4 million in 2025
Distributable earnings
$14.4 million
Quarter ended March 31, 2026 vs $57.3 million in 2025
Dividend per common share
$0.17
Quarter ended March 31, 2026, payable June 5, 2026
Servicing portfolio UPB
$36.31 billion
Fee-based servicing portfolio at March 31, 2026
Loan and investment portfolio UPB
$12.00 billion
UPB excluding loan loss reserves at March 31, 2026
Weighted average loan rate including fees
7.03%
Loan and investment portfolio at March 31, 2026
Allowance for loan losses
$131.2 million
Total allowance at March 31, 2026
Collateralized securitization size
$762.6 million
Completed in Q1 2026 with $674.0 million notes issued
Key Terms
distributable earnings, mortgage servicing rights, non-performing loans, CECL allowance, +2 more
6 terms
distributable earnings financial
"Distributable earnings for the quarter was $14.4 million, or $0.07 per diluted common share"
Distributable earnings are the portion of a company’s reported profits that management determines is safe to pay out to shareholders after accounting for cash needs, required reserves, and non-cash bookkeeping items. Think of it like the money left in your household budget after paying bills and putting aside savings — it shows what can realistically be handed out as dividends or distributions and helps investors judge how sustainable and reliable future payouts may be.
mortgage servicing rights financial
"Income from mortgage servicing rights was $9.7 million for the quarter"
Mortgage servicing rights are the contractual right to collect mortgage payments, manage escrow accounts, handle customer service and delinquency actions on a pool of home loans, in exchange for a portion of the loan’s payments. They matter to investors because their value behaves like a revenue stream that can rise or fall with interest rates and borrower behavior — similar to owning a toll bridge where income depends on traffic volume and maintenance costs — and thus affect a lender’s earnings and risk profile.
non-performing loans financial
"The Company had nineteen non-performing loans with a UPB of $481.5 million"
Loans on a bank’s books where the borrower has stopped making scheduled payments for a prolonged period (commonly about 90 days), so the lender no longer expects full repayment on time. Think of them as overdue IOUs that may never be paid back; a rising level of such loans weakens a lender’s earnings and balance sheet, signals greater credit risk in the economy, and can hurt investors through lower dividends, loan losses, or declines in the lender’s stock value.
CECL allowance financial
"the Company’s total CECL allowance for loss-sharing obligations was $70.7 million"
CECL allowance is the amount a lender sets aside on its balance sheet to cover expected future loan losses under a forward‑looking accounting rule. It represents an estimate of credit losses over the life of loans rather than losses that have already happened. For investors, a larger CECL allowance can reduce reported profits and capital but signals prudence against rising default risk — like keeping an emergency fund in anticipation of bad weather.
collateralized securitization financial
"The Company completed a $762.6 million collateralized securitization secured initially by a portfolio of real estate related assets"
Collateralized securitization is the process of pooling financial assets (like loans, leases or receivables) and packaging them into tradable securities that are backed by those assets as collateral. Investors buy slices of that package and receive payments from the underlying cash flows; it matters because it changes the risk, credit quality and liquidity of the investment—similar to turning many small IOUs into a single product that can be split into higher- or lower-risk pieces.
servicing portfolio financial
"The Company’s fee-based servicing portfolio totaled $36.31 billion at March 31, 2026"
Earnings Snapshot
Interest income: $235,047,000
Q1 2026
Interest income
$235,047,000
Net income attributable to common stockholders
$629,000
Distributable earnings
$14,448,000
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 8, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
Registrant’s telephone number, including area code: (516 ) 506-4200
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading symbols | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02 Results of Operations and Financial Condition.
On May 8, 2026, Arbor Realty Trust, Inc. issued a press release announcing its earnings for the quarter ended March 31, 2026, a copy of which is attached hereto as Exhibit 99.1.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit Number | Description | |||||||
99.1 | Press Release, dated May 8, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ARBOR REALTY TRUST, INC. | ||||||||
Date: May 8, 2026 | By: | /s/ Paul Elenio | ||||||
| Name: | Paul Elenio | |||||||
| Title: | Chief Financial Officer | |||||||
Arbor Realty Trust Reports First Quarter 2026 Results and Declares Dividend of $0.17 per Share
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, or 66% of book value
Uniondale, NY, May 8, 2026 -- 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 $0.6 million, or $0.00 per diluted common share, compared to net income of $30.4 million, or $0.16 per diluted common share for the quarter ended March 31, 2025. Distributable earnings for the quarter was $14.4 million, or $0.07 per diluted common share, compared to $57.3 million, or $0.28 per diluted common share for the quarter ended March 31, 2025.
Arbor Realty Trust Reports First Quarter 2026 Results and Declares Dividend of $0.17 per Share | |||||
May 8, 2026 | Page 2 | ||||
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 $57.9 million, compared to $81.0 million for the fourth quarter of 2025. Gain on sales, including fee-based services, net was $12.5 million for the quarter, reflecting a margin of 1.86%, compared to $20.9 million and 1.36% for the fourth quarter of 2025. Income from mortgage servicing rights was $9.7 million for the quarter, reflecting a rate of 1.32% as a percentage of loan commitments, compared to $19.9 million and 1.24% for the fourth quarter of 2025.
At March 31, 2026, loans held-for-sale was $443.2 million, with financing associated with these loans totaling $424.9 million.
Fee-Based Servicing Portfolio
The Company’s fee-based servicing portfolio totaled $36.31 billion at March 31, 2026. Servicing revenue, net was $25.7 million for the quarter and consisted of servicing revenue of $44.0 million, net of amortization of mortgage servicing rights totaling $18.3 million.
Arbor Realty Trust Reports First Quarter 2026 Results and Declares Dividend of $0.17 per Share | |||||
May 8, 2026 | Page 3 | ||||
| Fee-Based Servicing Portfolio ($ 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 $36.1 million for the fair value of the guarantee obligation undertaken at March 31, 2026. The Company recorded a $4.1 million net provision for loss sharing associated with CECL for the first quarter of 2026. At March 31, 2026, the Company’s total CECL allowance for loss-sharing obligations was $70.7 million, representing 0.29% of the Fannie Mae servicing portfolio.
Arbor Realty Trust Reports First Quarter 2026 Results and Declares Dividend of $0.17 per Share | |||||
May 8, 2026 | Page 4 | ||||
Structured Business
Portfolio and Investment Activity
| Structured Portfolio Activity ($ 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 | % | |||||||||||||||
Arbor Realty Trust Reports First Quarter 2026 Results and Declares Dividend of $0.17 per Share | |||||
May 8, 2026 | Page 5 | ||||
At March 31, 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 6.49%, compared to $12.11 billion and 6.49% at December 31, 2025. Including certain fees earned and costs associated with the loan and investment portfolio, the weighted average interest rate was 7.03% at March 31, 2026, compared to 7.08% at December 31, 2025.
The average balance of the Company’s loan and investment portfolio during the first quarter of 2026, excluding loan loss reserves, was $12.04 billion with a weighted average yield of 7.50%, compared to $11.84 billion and 7.38% for the fourth quarter of 2025. The increase in the weighted average yield was primarily due to a net decline in loan delinquencies in the first quarter of 2026, partially offset by a decrease in the average SOFR rate in the first quarter of 2026.
During the first quarter of 2026, the Company recorded a $3.6 million net provision for loan losses associated with CECL. At March 31, 2026, the Company’s total allowance for loan losses was $131.2 million. The Company had nineteen non-performing loans with a UPB of $481.5 million, before related loan loss reserves of $16.1 million, compared to twenty-six non-performing loans with a UPB of $569.1 million, before loan loss reserves of $10.2 million at December 31, 2025. In addition, the Company recorded $12.5 million of impairments on six real estate owned properties.
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 $48.3 million at December 31, 2025.
During the first quarter of 2026, the Company modified 13 loans to borrowers experiencing financial difficulty with a total UPB of $478.8 million, the majority of which had borrowers investing additional capital to recapitalize their deals. In addition, of the total modified loans for the first quarter, $115.4 million were non-performing at December 31, 2025, and are now current in accordance with their modified terms.
The Company foreclosed on three loans with a UPB totaling $58.9 million, selling one of these foreclosed properties and one existing REO property for $33.0 million.
Financing Activity
The balance of debt that finances the Company’s loan and investment portfolio at March 31, 2026 was $10.71 billion with a weighted average interest rate including fees of 6.40%, as compared to $10.46 billion and a rate of 6.45% at December 31, 2025.
The average balance of debt that finances the Company’s loan and investment portfolio for the first quarter of 2026 was $10.38 billion, as compared to $10.09 billion for the fourth quarter of 2025. The average cost of borrowings for the first quarter of 2026 was 6.67%, compared to 6.81% for the fourth quarter of 2025. The decrease in average cost was primarily due to a decrease in the average SOFR rate in the first quarter of 2026, partially offset by the issuance of $400 million of senior unsecured notes in December 2025.
The Company completed a $762.6 million collateralized securitization secured initially by a portfolio of real estate related assets and cash. Investment grade-rated notes totaling $674.0 million were issued, and the Company retained subordinate interests in the issuing vehicle of $88.6 million. The facility has
Arbor Realty Trust Reports First Quarter 2026 Results and Declares Dividend of $0.17 per Share | |||||
May 8, 2026 | Page 6 | ||||
a two and a half year asset replenishment period and an initial weighted average interest rate of 1.73% over term SOFR, excluding fees and transaction costs.
Dividend
The Company announced today that its Board of Directors has declared a quarterly cash dividend of $0.17 per share of common stock for the quarter ended March 31, 2026. The dividend is payable on June 5, 2026 to common stockholders of record on May 22, 2026.
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
Arbor Realty Trust Reports First Quarter 2026 Results and Declares Dividend of $0.17 per Share | |||||
May 8, 2026 | Page 7 | ||||
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 two pages of this release.
Contact: | Arbor Realty Trust, Inc. Investor Relations 516-506-4200 InvestorRelations@arbor.com | ||||
Arbor Realty Trust Reports First Quarter 2026 Results and Declares Dividend of $0.17 per Share | |||||
May 8, 2026 | Page 8 | ||||
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Consolidated Statements of Income - (Unaudited)
($ 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 Reports First Quarter 2026 Results and Declares Dividend of $0.17 per Share | |||||
May 8, 2026 | Page 9 | ||||
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
($ 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 $131,223 and $145,971) | 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 $15,125 and $17,013) | 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, $0.01 par value: 100,000,000 shares authorized, shares issued and outstanding by period: | 633,683 | 633,683 | |||||||||
Special voting preferred shares - 16,170,218 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 - 192,370,465 and 195,491,855 shares issued and outstanding | 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 Reports First Quarter 2026 Results and Declares Dividend of $0.17 per Share | |||||
May 8, 2026 | Page 10 | ||||
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 Reports First Quarter 2026 Results and Declares Dividend of $0.17 per Share | |||||
May 8, 2026 | Page 11 | ||||
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 Reports First Quarter 2026 Results and Declares Dividend of $0.17 per Share | |||||
May 8, 2026 | Page 12 | ||||
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Reconciliation of Distributable Earnings to GAAP Net Income - (Unaudited)
($ 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 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) 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
Arbor Realty Trust Reports First Quarter 2026 Results and Declares Dividend of $0.17 per Share | |||||
May 8, 2026 | Page 13 | ||||
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
How did Arbor Realty Trust (ABR) perform financially in Q1 2026?
Arbor Realty Trust reported much lower earnings in Q1 2026. Net income attributable to common stockholders was only $0.6 million, or $0.00 per diluted share, compared with $30.4 million and $0.16 per share a year earlier, mainly due to higher provisions and impairments.
What were Arbor Realty Trust’s distributable earnings for Q1 2026?
Distributable earnings for Q1 2026 were $14.4 million, or $0.07 per diluted share. This compares with $57.3 million, or $0.28 per diluted share, in Q1 2025, reflecting weaker profitability after credit provisions and real estate impairment charges.
What dividend did Arbor Realty Trust declare for the quarter ended March 31, 2026?
The board declared a quarterly cash dividend of $0.17 per common share for the quarter ended March 31, 2026. The dividend is payable on June 5, 2026 to stockholders of record as of May 22, 2026, continuing Arbor’s regular cash distributions.
How large is Arbor Realty Trust’s servicing portfolio as of March 31, 2026?
As of March 31, 2026, Arbor’s fee-based servicing portfolio totaled $36.31 billion in unpaid principal balance. Servicing revenue, net of mortgage servicing rights amortization, was $25.7 million for the quarter, supported by government-sponsored enterprise and other multifamily-focused lending programs.
What is the size and yield of Arbor Realty Trust’s loan and investment portfolio?
At March 31, 2026, Arbor’s loan and investment portfolio had $12.00 billion unpaid principal balance, excluding loan loss reserves. Including certain fees and costs, the weighted average interest rate was 7.03%, with an average quarterly yield of 7.50% on a $12.04 billion average balance.
What credit quality indicators did Arbor Realty Trust disclose for Q1 2026?
Arbor reported 19 non-performing loans with $481.5 million unpaid principal balance and a total loan loss allowance of $131.2 million as of March 31, 2026. It also recorded a $5.8 million provision for credit losses and a $4.5 million provision for loss-sharing obligations.