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Arbor Realty Trust (NYSE: ABR) swings to Q2 loss, trims dividend

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Arbor Realty Trust reported a GAAP net loss attributable to common stockholders of $37.3 million, or $(0.20) per diluted share, for the quarter ended June 30, 2026, versus net income of $24.0 million, or $0.12 per share, a year earlier. Distributable earnings were $21.7 million, or $0.10 per diluted share, compared with $52.1 million, or $0.25 per share, in the prior-year quarter. Results reflected a $38.2 million CECL loan-loss provision, a $12.9 million provision for loss-sharing obligations, $13.6 million of real estate owned impairments and nineteen non-performing loans totaling $428.8 million of unpaid principal balance.

The fee-based servicing portfolio totaled $36.70 billion and the structured loan portfolio had $12.11 billion of unpaid principal balance at quarter end. The board declared a quarterly common dividend of $0.17 per share, compared with $0.30 in the prior-year quarter. Arbor undertook significant capital actions, including redeeming in full a $787.0 million legacy CLO, issuing $375.0 million of 6.25% convertible senior notes due 2029, redeeming $270.0 million of 4.50% senior notes due 2026 and repurchasing $114.3 million of common stock at $5.42 per share plus an additional $20.8 million at $5.85 per share.

Positive

  • Redeemed $270.0 million of 4.50% senior notes due 2026 and a $787.0 million legacy CLO, which the company states reduced financing costs and generated about $132.3 million of additional liquidity.
  • Completed an upsized $375.0 million offering of 6.25% convertible senior notes due 2029, using proceeds to redeem maturing notes and repurchase common stock.
  • Repurchased $114.3 million of common stock at $5.42 per share and an additional $20.8 million at $5.85 per share, providing meaningful capital return to shareholders.

Negative

  • Recorded a GAAP net loss attributable to common stockholders of $37.3 million versus $24.0 million of net income in the prior-year quarter.
  • Distributable earnings per diluted share declined to $0.10 from $0.25 a year earlier.
  • Quarterly common dividend was cut to $0.17 per share from $0.30 in the prior-year quarter.
  • Credit costs were elevated, including a $38.2 million CECL loan-loss provision, a $12.9 million loss-sharing provision and $13.6 million of impairments on real estate owned.
  • Nineteen non-performing loans totaled $428.8 million of UPB, with loan-loss reserves of $31.1 million and additional non-accrual loans of $94.9 million less than 60 days past due.

Filing Explained

The completed July transactions reduced common shares, but the convertible notes leave future dilution unquantified.

The filing states that the July 2026 convertible-note offering and related stock repurchases were completed, with proceeds funding $270.0 million of debt redemption and $114.3 million of common-stock repurchases.

The repurchases reduce the common share count, while the convertible senior notes could result in additional shares if converted; the filing does not quantify that potential issuance.

The reported 188,981,757 common shares issued and outstanding at June 30, 2026 therefore predates those July transactions. The filing provides no conversion price, conversion rate, or maximum share amount, so potential dilution cannot be sized from this disclosure.

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.
GAAP net (loss) income to common $(37.3) million Quarter ended June 30, 2026 versus $24.0 million income in Q2 2025
Distributable earnings per diluted share $0.10 Quarter ended June 30, 2026; $0.25 in prior-year quarter
Dividend per common share $0.17 Quarterly dividend for Q2 2026; $0.30 in Q2 2025
Fee-based servicing portfolio UPB $36.70 billion Outstanding servicing portfolio at June 30, 2026
Structured loan portfolio UPB $12.11 billion Loan and investment portfolio unpaid principal balance at June 30, 2026
Total CECL allowance for loan losses $163.4 million Allowance for loan losses balance at June 30, 2026
Non-performing loans UPB $428.8 million Nineteen non-performing loans at June 30, 2026 before $31.1 million reserves
Convertible senior notes offering $375.0 million at 6.25% Convertible senior notes due 2029 issued in July 2026
distributable earnings financial
"Distributable earnings for the quarter was $21.7 million"
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.
CECL financial
"recorded a $38.2 million net provision for loan losses associated with CECL"
An accounting standard that requires banks and other lenders to estimate and record expected credit losses for loans and similar financial assets up front, based on historical experience, current conditions and reasonable forecasts. It matters to investors because it changes how much a firm must set aside as a loss reserve, which directly affects reported profits, capital levels and perceived financial strength—think of it as stocking a reserve for future bad loans before the rain starts.
mortgage servicing rights financial
"Income from mortgage servicing rights was $12.1 million"
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 $428.8 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.
convertible senior notes financial
"completed an upsized $375.0 million offering of 6.25% convertible senior notes due 2029"
Convertible senior notes are a type of loan that a company issues to investors, which can be turned into company shares later on. They are called "senior" because they are paid back before other debts if the company runs into trouble. This allows investors to earn interest like a loan but also have the chance to own part of the company if its value rises.
loss-sharing obligations financial
"obligation to partially guarantee the performance of the loan (“loss-sharing obligations”)"
Agreements in which two or more parties commit to split financial losses from a specific asset, loan pool, or business activity according to pre-set rules. Like co‑insurance on a car, these clauses define who pays what and when, and they matter to investors because they change potential future cash outflows, legal exposure, and the effective value of the related assets on a company’s books.
Net (loss) income attributable to common stockholders $(37.3) million, or $(0.20) per diluted share compared to $24.0 million, or $0.12 per diluted share, for the quarter ended June 30, 2025
Distributable earnings $21.7 million, or $0.10 per diluted common share compared to $52.1 million, or $0.25 per diluted common share, for the quarter ended June 30, 2025
Dividend per common share $0.17 compared to $0.30 for the quarter ended June 30, 2025

AI-generated analysis. How Rhea-AI works. Not financial advice.

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FAQ

How did Arbor Realty Trust (ABR) perform financially in Q2 2026?
Arbor Realty Trust reported a GAAP net loss attributable to common stockholders of $37.3 million, or $(0.20) per diluted share. Distributable earnings were $21.7 million, or $0.10 per diluted share, compared with $52.1 million, or $0.25, in Q2 2025.

What dividend did Arbor Realty Trust (ABR) declare for Q2 2026?
The board declared a quarterly cash dividend of $0.17 per common share for Q2 2026. It is payable on August 28, 2026 to stockholders of record on August 14, 2026, down from $0.30 in the prior-year quarter.

How did ABR's distributable earnings change year over year in Q2 2026?
Distributable earnings fell to $21.7 million, or $0.10 per diluted share, in Q2 2026. This compares with $52.1 million, or $0.25 per diluted share, for the quarter ended June 30, 2025, reflecting higher provisions and impairments.

What are Arbor Realty Trust's (ABR) servicing and structured loan portfolio sizes?
At June 30, 2026, the fee-based servicing portfolio totaled $36.70 billion of unpaid principal balance. The structured loan and investment portfolio had $12.11 billion of unpaid principal balance, excluding loan loss reserves, with a weighted average interest rate of 6.50%.

What credit quality metrics did Arbor Realty Trust (ABR) report for Q2 2026?
Arbor reported nineteen non-performing loans with $428.8 million of UPB and loan-loss reserves of $31.1 million. It also recorded a $38.2 million CECL loan-loss provision, a $12.9 million loss-sharing provision and $13.6 million of REO impairments.

What major financing and capital actions did Arbor Realty Trust (ABR) take in 2026?
The company redeemed a $787.0 million legacy CLO, issued $375.0 million of 6.25% convertible senior notes due 2029, used proceeds to redeem $270.0 million of 4.50% senior notes due 2026 and repurchased $135.1 million of common stock at discounts to book value.
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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): July 31, 2026
Arbor Realty Trust, Inc.
(Exact name of registrant as specified in its charter)
Maryland
001-32136
20-0057959
(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)
333 Earle Ovington Boulevard, Suite 900, Uniondale, NY
11553
(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:
oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
oPre-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 classTrading symbolsName of each exchange on which registered
Common Stock, par value $0.01 per shareABRNew York Stock Exchange
Preferred Stock, 6.375% Series D Cumulative Redeemable, par value $0.01 per shareABR-PDNew York Stock Exchange
Preferred Stock, 6.25% Series E Cumulative Redeemable, par value $0.01 per shareABR-PENew York Stock Exchange
Preferred Stock, 6.25% Series F Fixed-to-Floating Rate Cumulative Redeemable, par value $0.01 per shareABR-PFNew York Stock Exchange



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 July 31, 2026, Arbor Realty Trust, Inc. issued a press release announcing its earnings for the quarter ended June 30, 2026, a copy of which is attached hereto as Exhibit 99.1.
Item 9.01    Financial Statements and Exhibits.
(d) Exhibits
Exhibit NumberDescription
99.1
Press Release, dated July 31, 2026
104Cover 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: July 31, 2026
By:/s/ Paul Elenio
Name:Paul Elenio
Title:Chief Financial Officer


arbormulti-brandxlogox3cxc.jpg

Arbor Realty Trust Reports Second Quarter 2026 Results and Declares Dividend of $0.17 per Share

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, or 49% of book value in July 2026
◦Redeem $270 million of senior notes in July 2026
•Repurchased an additional $20.8 million of stock at $5.85 per share, or 53% 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, NY, July 31, 2026 -- 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 $(37.3) million, or $(0.20) per diluted common share, compared to net income of $24.0 million, or $0.12 per diluted common share for the quarter ended June 30, 2025. Distributable earnings for the quarter was $21.7 million, or $0.10 per diluted common share, compared to $52.1 million, or $0.25 per diluted common share for the quarter ended June 30, 2025.




Arbor Realty Trust Reports Second Quarter 2026 Results and Declares Dividend of $0.17 per Share
July 31, 2026
Page 2
Agency Business
Loan Origination Platform
 Agency Loan Volume (in thousands)
 Quarter Ended
 June 30, 2026March 31, 2026
Fannie Mae$619,130 $570,815 
Freddie Mac428,278 91,255 
SFR-Fixed Rate21,272 — 
FHA8,083 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 $64.5 million, compared to $57.9 million for the first quarter of 2026. Gain on sales, including fee-based services, net was $15.2 million for the quarter, reflecting a margin of 1.33%, compared to $12.5 million and 1.86% for the first quarter of 2026. Income from mortgage servicing rights was $12.1 million for the quarter, reflecting a rate of 1.00% as a percentage of loan commitments, compared to $9.7 million and 1.32% for the first quarter of 2026.
At June 30, 2026, loans held-for-sale was $375.8 million, with financing associated with these loans totaling $359.3 million.
Fee-Based Servicing Portfolio
The Company’s fee-based servicing portfolio totaled $36.70 billion at June 30, 2026. Servicing revenue, net was $23.9 million for the quarter and consisted of servicing revenue of $42.1 million, net of amortization of mortgage servicing rights totaling $18.2 million.

Arbor Realty Trust Reports Second Quarter 2026 Results and Declares Dividend of $0.17 per Share
July 31, 2026
Page 3
 Fee-Based Servicing Portfolio ($ in thousands)
 June 30, 2026March 31, 2026
 UPBWtd. Avg. Fee (bps)Wtd. Avg. Life (years)UPBWtd. Avg. Fee (bps)Wtd. Avg. Life (years)
Fannie Mae$24,419,734 43.95.2$24,261,724 44.45.4
Freddie Mac7,672,121 17.65.77,368,979 18.25.7
Private Label2,477,077 18.74.12,554,209 18.74.3
FHA1,585,871 13.818.91,584,644 13.819.0
Bridge277,333 10.41.7277,523 10.42.0
SFR-Fixed Rate272,226 20.03.8264,008 20.03.8
Total$36,704,362 35.05.8$36,311,087 35.55.9
Loans sold under the Fannie Mae program contain an obligation to partially guarantee the performance of the loan (“loss-sharing obligations”) and includes $36.6 million for the fair value of the guarantee obligation undertaken at June 30, 2026. The Company recorded a $12.9 million net provision for loss sharing associated with CECL for the second quarter of 2026. At June 30, 2026, the Company’s total CECL allowance for loss-sharing obligations was $82.3 million, representing 0.34% of the Fannie Mae servicing portfolio.

Arbor Realty Trust Reports Second Quarter 2026 Results and Declares Dividend of $0.17 per Share
July 31, 2026
Page 4
Structured Business
Portfolio and Investment Activity
 Structured Portfolio Activity ($ in thousands)
 Quarter Ended
 June 30, 2026March 31, 2026
 UPB% UPB%
Bridge:  
SFR$490,617 71%$321,122 42%
Multifamily159,550 23%405,600 53%
650,167 94%726,722 95%
 
Construction - Multifamily38,810 6%40,870 5%
Total Originations$688,977 100%$767,592 100%
   
Number of Loans Originated14 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, 2026March 31, 2026
UPB% UPB%
Bridge:  
Multifamily$7,895,187 65%$7,897,122 66%
SFR3,376,845 28%3,265,802 27%
Other46,519 <1%46,519 <1%
11,318,551 94%11,209,443 94%
  
Mezzanine/Preferred Equity502,998 4%497,961 4%
Construction - Multifamily285,482 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 $12.11 billion, with a weighted average interest rate of 6.50%, compared to

Arbor Realty Trust Reports Second Quarter 2026 Results and Declares Dividend of $0.17 per Share
July 31, 2026
Page 5
$12.00 billion and 6.49% at March 31, 2026. Including certain fees earned and costs associated with the loan and investment portfolio, the weighted average interest rate was 6.95% at June 30, 2026, compared to 7.03% at March 31, 2026.
The average balance of the Company’s loan and investment portfolio during the second quarter of 2026, excluding loan loss reserves, was $12.08 billion with a weighted average yield of 7.21%, compared to $12.04 billion and 7.50% for the first quarter of 2026. The decrease in the weighted average yield was primarily due to less default and back interest collected in the second quarter of 2026, as well as from additional delinquencies and rate modifications in the second quarter of 2026.
During the second quarter of 2026, the Company recorded a $38.2 million net provision for loan losses associated with CECL. At June 30, 2026, the Company’s total allowance for loan losses was $163.4 million. The Company had nineteen non-performing loans with a UPB of $428.8 million, before related loan loss reserves of $31.1 million, compared to nineteen non-performing loans with a UPB of $481.5 million, before loan loss reserves of $16.1 million at March 31, 2026. In addition, the Company recorded $13.6 million of impairments on two real estate owned properties.
In addition, at June 30, 2026, the Company had three non-accrual loans with a UPB of $94.9 million that were less than 60 days past due, compared to none at March 31, 2026.
During the second quarter of 2026, the Company modified 7 loans to borrowers experiencing financial difficulty with a total UPB of $386.9 million, the majority of which had borrowers investing additional capital to recapitalize their deals.
The Company foreclosed on five loans with a UPB totaling $121.4 million, selling two of these foreclosed properties and three existing REO properties for $79.8 million.
Financing Activity
The balance of debt that finances the Company’s loan and investment portfolio at June 30, 2026 was $10.48 billion with a weighted average interest rate including fees of 6.38%, as compared to $10.71 billion and a rate of 6.40% at March 31, 2026.
The average balance of debt that finances the Company’s loan and investment portfolio for the second quarter of 2026 was $10.51 billion, as compared to $10.38 billion for the first quarter of 2026. The average cost of borrowings for the second quarter of 2026 was 6.56%, compared to 6.67% for the first quarter of 2026. The decrease in average cost was primarily due to reduced pricing associated with CLO activity, as well as a decrease in the average SOFR rate in the second quarter of 2026.
The Company redeemed in full and at par a legacy CLO with $787.0 million of outstanding notes, financing the underlying assets through existing repurchase facilities with significantly improved terms. The transaction enhanced leverage, reduced financing costs and generated approximately $132.3 million of additional liquidity.
In July 2026, the Company completed an upsized $375.0 million offering of 6.25% convertible senior notes due 2029. The Company is using the offering proceeds to redeem its $270.0 million of 4.50% senior notes due 2026 and to repurchase common stock through two separate transactions: $11.6

Arbor Realty Trust Reports Second Quarter 2026 Results and Declares Dividend of $0.17 per Share
July 31, 2026
Page 6
million to repurchase ~2.1 million shares concurrently with the pricing of the offering and $102.7 million to repurchase ~18.9 million shares pursuant to a prepaid forward stock repurchase transaction.
Dividend
The Company announced today that its Board of Directors has declared a quarterly cash dividend of $0.17 per share of common stock for the quarter ended June 30, 2026. The dividend is payable on August 28, 2026 to common stockholders of record on August 14, 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 (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

Arbor Realty Trust Reports Second Quarter 2026 Results and Declares Dividend of $0.17 per Share
July 31, 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 Second Quarter 2026 Results and Declares Dividend of $0.17 per Share
July 31, 2026
Page 8
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Consolidated Statements of Operations - (Unaudited)
($ in thousands—except share and per share data)
 
Quarter Ended June 30,
Six Months Ended June 30,
 2026202520262025
Interest income$230,858 $240,303 $465,905 $480,997 
Interest expense177,761 171,578 352,963 336,829 
Net interest income53,097 68,725 112,942 144,168 
Other revenue:  
Gain on sales, including fee-based services, net15,176 13,658 27,681 26,439 
Mortgage servicing rights12,110 10,930 21,770 19,061 
Servicing revenue, net23,879 27,437 49,619 53,040 
Property operating income8,313 5,452 16,373 9,839 
Gain on derivative instruments, net1,041 219 548 3,619 
Other income, net2,260 3,989 4,336 8,407 
Total other revenue62,779 61,685 120,327 120,405 
Other expenses:  
Employee compensation and benefits45,096 41,181 92,779 87,217 
Selling and administrative15,868 14,859 32,821 31,171 
Property operating expenses12,670 6,802 24,635 10,276 
Depreciation and amortization5,929 5,848 13,033 9,592 
Impairment loss on real estate owned13,650 — 26,150 — 
Provision for loss sharing, net13,472 4,215 18,009 6,002 
Provision for credit losses, net38,163 19,004 43,979 28,079 
Total other expenses144,848 91,909 251,406 172,337 
(Loss) income before extinguishment of debt, gain (loss) on real estate, income from equity affiliates and income taxes(28,972)38,501 (18,137)92,236 
Loss on extinguishment of debt— — — (2,319)
Gain (loss) on real estate64 (1,448)(2,073)(4,258)
Income from equity affiliates1,893 2,654 6,304 1,020 
Provision for income taxes(3,150)(3,398)(5,235)(6,989)
Net (loss) income(30,165)36,309 (19,141)79,690 
Preferred stock dividends10,342 10,342 20,684 20,684 
Net (loss) income attributable to noncontrolling interest(3,165)2,015 (3,112)4,617 
Net (loss) income attributable to common stockholders$(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:  
Basic190,806,800192,236,206192,491,494191,154,501
Diluted190,806,800209,003,002192,491,494207,938,574
Dividends declared per common share$0.17 $0.30 $0.47 $0.73 

Arbor Realty Trust Reports Second Quarter 2026 Results and Declares Dividend of $0.17 per Share
July 31, 2026
Page 9
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
($ 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 $163,431 and $145,971)
11,915,216 11,934,248 
Loans held-for-sale, net375,797 409,081 
Capitalized mortgage servicing rights, net323,887 340,842 
Securities held-to-maturity, net (allowance for credit losses of $14,343 and $17,013)
157,137 156,087 
Investments in equity affiliates82,762 57,966 
Real estate owned, net545,946 498,938 
Goodwill and other intangible assets85,770 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 debt2,972,246 3,468,258 
Senior unsecured notes1,857,769 2,029,078 
Junior subordinated notes to subsidiary trust issuing preferred securities145,907 145,497 
Notes payable - real estate owned270,410 222,965 
Due to borrowers27,562 33,451 
Allowance for loss-sharing obligations118,898 97,579 
Other liabilities266,752 281,271 
Total liabilities11,471,802 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 - 188,981,757 and 195,491,855 shares issued and outstanding
1,890 1,955 
Additional paid-in capital2,409,539 2,454,312 
Accumulated deficit(267,177)(136,597)
Total Arbor Realty Trust, Inc. stockholders' equity2,777,935 2,953,353 
Noncontrolling interest103,088 113,800 
Total equity2,881,023 3,067,153 
Total liabilities and equity $14,352,825 $14,494,903 

Arbor Realty Trust Reports Second Quarter 2026 Results and Declares Dividend of $0.17 per Share
July 31, 2026
Page 10
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 $— $230,858 
Interest expense172,066 5,695 — 177,761 
Net interest income47,145 5,952 — 53,097 
Other revenue:    
Gain on sales, including fee-based services, net— 15,176 — 15,176 
Mortgage servicing rights— 12,110 — 12,110 
Servicing revenue— 42,126 — 42,126 
Amortization of MSRs— (18,247)— (18,247)
Property operating income8,313 — — 8,313 
Gain on derivative instruments, net— 1,041 — 1,041 
Other income, net1,638 622 — 2,260 
Total other revenue9,951 52,828 — 62,779 
Other expenses:    
Employee compensation and benefits18,667 26,429 — 45,096 
Selling and administrative8,269 7,599 — 15,868 
Property operating expenses12,670 — — 12,670 
Depreciation and amortization5,537 392 — 5,929 
Impairment loss on real estate owned13,650 — — 13,650 
Provision for loss sharing, net— 13,472 — 13,472 
Provision for credit losses, net38,245 (82)— 38,163 
Total other expenses97,038 47,810 — 144,848 
(Loss) income before gain on real estate, income from equity affiliates and income taxes(39,942)10,970 — (28,972)
Gain on real estate64 — — 64 
Income from equity affiliates1,893 — — 1,893 
Provision for income taxes(626)(2,524)— (3,150)
Net (loss) income(38,611)8,446 — (30,165)
Preferred stock dividends10,342 — — 10,342 
Net loss attributable to noncontrolling interest— — (3,165)(3,165)
Net (loss) income attributable to common stockholders$(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 Reports Second Quarter 2026 Results and Declares Dividend of $0.17 per Share
July 31, 2026
Page 11
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Balance Sheet Segment Information - (Unaudited)
(in thousands)
 June 30, 2026
 Structured BusinessAgency BusinessConsolidated
Assets:   
Cash and cash equivalents$58,886 $228,639 $287,525 
Restricted cash103,077 35,305 138,382 
Loans and investments, net11,915,216 — 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 affiliates82,762 — 82,762 
Real estate owned, net545,946 — 545,946 
Goodwill and other intangible assets12,500 73,270 85,770 
Other assets345,603 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 liabilities211,266 83,048 294,314 
Total liabilities$10,910,579 $561,223 $11,471,802 

Arbor Realty Trust Reports Second Quarter 2026 Results and Declares Dividend of $0.17 per Share
July 31, 2026
Page 12
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Reconciliation of Distributable Earnings to GAAP Net (Loss) Income - (Unaudited)
($ in thousands—except share and per share data)
Quarter Ended June 30,
Six Months Ended June 30,
2026202520262025
Net (loss) income attributable to common stockholders$(37,342)$23,952 $(36,713)$54,389 
Adjustments:
Net (loss) income attributable to noncontrolling interest(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 MSRs21,093 19,825 40,433 40,689 
Depreciation and amortization6,876 6,582 14,692 11,149 
Loss on extinguishment of debt— — — 2,319 
Provision for credit losses, net40,532 8,435 19,654 9,192 
(Gain) loss on derivative instruments, net(477)(674)821 (5,371)
Loss on real estate5,388 1,857 17,917 4,667 
Stock-based compensation3,125 2,610 9,029 8,545 
Distributable earnings (1)$21,709 $52,069 $36,160 $109,394 
Diluted weighted average shares outstanding (1) (2)207,661,095209,003,002209,687,157207,938,574
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 90% of their REIT-taxable income. The Company considers distributable earnings in determining its quarterly dividend and believes that, over time, distributable earnings is a useful indicator of the Company's dividends per share.

The Company defines distributable earnings as net income (loss) attributable to common stockholders computed in accordance with GAAP, adjusted for accounting items such as depreciation and amortization (adjusted for unconsolidated joint ventures), non-cash stock-based compensation expense, income from MSRs, amortization and write-offs of MSRs, gains/losses on derivative instruments primarily associated with Private Label loans not yet sold and securitized, changes in fair value of GSE-related derivatives that temporarily flow through earnings, deferred tax provision (benefit), CECL provisions for credit losses (adjusted for realized losses as described below), gains/losses on the receipt of real estate from the settlement of loans and subsequent impairment losses on real estate owned prior to the sale of the real estate. The Company also adds back one-time charges such as acquisition costs and one-time gains/losses on the early extinguishment of debt and redemption of preferred stock.

The Company reduces distributable earnings for realized losses in the period management determines that a loan is deemed nonrecoverable in whole or in part. Loans are deemed nonrecoverable upon the earlier of: (1) when the loan receivable is repaid, or in the case of foreclosure, when the underlying asset is sold at which time any impairments and/or cumulative depreciation expense are realized; or (2) when management determines that it is nearly certain that all amounts due will not

Arbor Realty Trust Reports Second Quarter 2026 Results and Declares Dividend of $0.17 per Share
July 31, 2026
Page 13
be collected. The realized loss amount is equal to the difference between the cash received, or expected to be received, and the book value of the asset.
Distributable earnings is not intended to be an indication of the Company's cash flows from operating activities (determined in accordance with GAAP) or a measure of its liquidity, nor is it entirely indicative of funding the Company's cash needs, including its ability to make cash distributions. The Company's calculation of distributable earnings may be different from the calculations used by other companies and, therefore, comparability may be limited.

Source: View Original Filing on SEC EDGAR

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