Arbor Realty Trust (ABR) outlines multifamily portfolio, cash flows and NPL resolution plan
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Arbor Realty Trust, Inc. furnished an investor presentation highlighting its multifamily-focused mortgage REIT platform and portfolio performance. The company operates two main businesses: a $12.0B structured loan portfolio and a $36.3B agency servicing portfolio as of March 31, 2026, generating diversified, largely recurring revenue.
The presentation emphasizes Arbor’s annuity-like cash flows, including roughly $129M in annual prepayment-protected servicing revenue and about $66M in annual earnings from approximately $2.0B of cash and escrow balances. Management reports a 16% book value increase over six years, a 9.2% average ROE for 2025 and 1Q26, and a long record in multifamily lending.
Arbor also details non-performing assets, which represented about 8.0% of the total portfolio at March 31, 2026, and are estimated to be reducing annual earnings by $75M–$95M. The company outlines an aggressive 2026 resolution plan for roughly $480M of delinquencies and $520M of REO assets, aiming to substantially reduce this drag by year end.
Positive
- None.
Negative
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Insights
Arbor outlines strong recurring cash flows alongside a detailed plan to work through elevated non-performing loans.
Arbor Realty Trust presents a multifamily-focused platform with two engines: a $12.0B structured loan book and a $36.3B agency servicing portfolio as of March 31, 2026. These support diversified income, including about $129M in annual servicing revenue and roughly $66M from cash and escrow balances.
The company reports a 9.2% average ROE for 2025 and 1Q26, a 16% book value increase over six years, and long-term agency relationships. At the same time, non-performing assets equaled about 8.0% of the portfolio and are described as depressing annual earnings by $75M–$95M, or roughly $0.35–$0.45 per share.
Management lays out an aggressive resolution plan for approximately $480M of delinquencies and $520M of REO during 2026, targeting substantial reductions by year end. Actual impact will depend on execution of loan workouts, asset sales, and market conditions affecting recoveries and reinvestment opportunities.
8-K Event Classification
2 items: 7.01, 9.01
2 items
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Structured loan portfolio: $12.0B
Agency servicing portfolio: $36.3B
Annual servicing revenue: $129M
+5 more
8 metrics
Structured loan portfolio
$12.0B
Balance sheet structured loans as of March 31, 2026
Agency servicing portfolio
$36.3B
Multifamily servicing portfolio as of March 31, 2026
Annual servicing revenue
$129M
Prepayment-protected servicing fees on $36.3B portfolio
Cash and escrow balances
$2.0B
Balances earning about $66M annually as of April 1, 2026
Non-performing assets share
8.0%
Combined non-performing assets as percentage of portfolio in 1Q26
NPA earnings drag
$75M–$95M
Estimated annual reduction in earnings from non-performing assets in 2026
Distributable earnings 2025
$246.2M
Distributable earnings attributable to common stockholders and OP unitholders in 2025
Average ROE
9.2%
Average distributable earnings ROE on common equity in 2025 and 1Q26
Key Terms
mortgage REIT, Distributable Earnings, mortgage servicing rights, collateralized loan obligations (CLOs), +2 more
6 terms
mortgage REIT financial
"Arbor Realty Trust is an internally-managed mortgage REIT with a premium operating platform"
A mortgage REIT is a company that pools money from investors to buy mortgages or mortgage-backed securities and funds those purchases by borrowing or issuing shares; it earns profit from the difference between what it collects on loans and what it pays to borrow. Think of it like a specialized lending business that pays out most of its earnings as dividends, so investors get regular income but also face higher sensitivity to interest rates, credit problems, and changes in the housing market.
Distributable Earnings financial
"This Presentation includes certain financial information... including Distributable Earnings"
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
"Long-term assets: Capitalized mortgage servicing rights (“MSRs”)"
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.
collateralized loan obligations (CLOs) financial
"Arbor is one of the first commercial REITs to access securitization market... through collateralized loan obligations (CLOs)"
Collateralized loan obligations (CLOs) are investment vehicles that pool many corporate loans and divide the resulting cash flows into different slices that are sold to investors. They matter to investors because each slice offers a different mix of risk and return—some provide steadier, lower yields while others aim for higher income with greater default risk—so changes in borrower health, interest rates, or credit markets can materially affect returns.
allowance for credit losses financial
"Allowance for credit losses - Structured Business"
Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.
Real Estate Owned (REO) financial
"Throughout the remainder of 2026, Arbor is projected to take back ~$100M of non-performing loans as REO assets"
Real estate owned (REO) are properties a lender or bank has taken possession of after a borrower defaulted and the home did not sell at foreclosure auction. Investors care because REO appears as inventory on a lender’s balance sheet and can signal loan losses, potential recoverable value, or fire-sale opportunities—like a retailer stuck with returned goods that must be repaired, marketed, or written down, affecting profits and cash flow.
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 7.01 Regulations FD Disclosure.
On May 8, 2026 , Arbor Realty Trust, Inc. posted on its website an investor presentation (the “Investor Presentation”). A copy of the Investor Presentation is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference into this Item 7.01.
The information in this Item 7.01 (including Exhibit 99.1) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
| Exhibit Number | Exhibit | |||||||
99.1 | Investor Presentation of Arbor Realty Trust, Inc., dated May 2026 (furnished herewith). | |||||||
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are 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. | ||||||||
| By: | /s/ Paul Elenio | |||||||
| Name: | Paul Elenio | |||||||
| Title: | Chief Financial Officer | |||||||
Date: | ||||||||
May 2026 Investor Presentation 1
2 Legal Disclosures This presentation and the information contained herein (together, this “Presentation”) are for the benefit of the stockholders of Arbor Realty Trust, Inc. (together with its direct and indirect subsidiaries, “we,” “us,” “our,” “Arbor,” or the “Company”). This Presentation is solely for informational purposes and is not all inclusive and may not contain all of the information required in order to evaluate the Company. This Presentation does not constitute or form part of, and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company, nor shall there be any sale of securities in any state or other jurisdiction to any person or entity to which it is unlawful to make such offer, solicitation or sale in such state or jurisdiction. Forward-Looking Statements This Presentation includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to, among other things, the operating performance of our investments and financing needs. We use words such as “anticipate,” “expect,” “believe,” “intend,” “should,” “could,” “will,” “may,” “target” and similar expressions to identify forward-looking statements, although not all forward- looking statements include these words. Forward-looking statements are based on certain assumptions, discuss future expectations, describe future plans and strategies, contain projections of results of operations or of financial condition or state other forward-looking information. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. These forward-looking statements involve risks, uncertainties and other factors that may cause our actual results in future periods to differ materially from forecasted results. Factors that could have a material adverse effect on our results of operations, financial condition and future prospects include, but are not limited to, changes in economic, macroeconomic and geopolitical conditions generally, and the real estate market specifically; adverse changes in our status with government-sponsored enterprises affecting our ability to originate loans through such programs; changes in interest rates; the quality and size of the investment pipeline and the rate at which we can invest our cash; impairments in the value of the collateral underlying our loans and investments; inflation; changes in federal and state laws and regulations, including changes in tax laws; the availability and cost of capital for future investments; competition; and other risks and uncertainties described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and other periodic reports we file with the U.S. Securities and Exchange Commission from time to time. Undue reliance should not be placed on the forward-looking statements in this Presentation, which are based on information available to us on, and which speak only as of, the date hereof. The Company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, unless required by applicable law. Non-GAAP Financial Measures This Presentation includes certain financial information that is not required by, or presented in accordance with U.S. generally accepted accounting principles (“GAAP”), including Distributable Earnings. These non-GAAP financial measures are provided to enhance the user’s overall understanding of the Company’s current financial performance and its prospects for the future. These non-GAAP financial measures are used by management to assess the Company’s performance, allocate resources and plan for future periods. These non-GAAP financial measures should only be considered as supplemental to results prepared in accordance with GAAP, and not considered as a substitute or replacement for, or superior to, GAAP results. These non-GAAP measures may differ from the non-GAAP measures reported by other companies. Refer to the slide “Historical Reconciliation of Distributable Earnings to GAAP Net Income” for a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure.
3 Arbor is a Leading Commercial Mortgage REIT with a Differentiated Business Model Arbor Realty Trust is an internally-managed mortgage REIT with a premium operating platform and unique business model, consisting of two primary business platforms: Structured Loan Origination and Investment Agency Loan Origination and Servicing Complementary operating platforms with diversified, counter- cyclical and recurring income streams Balance sheet loans provide strong risk-adjusted returns Balance sheet runoff naturally feeds GSE/Agency pipeline – Historically, ~50% of balance sheet runoff is recaptured into Agency production – Agency business is capital-light with high barriers to entry, resulting in sizeable earnings and cash flows Servicing business generates significant prepayment protected annual revenue with 6-year weighted average remaining life Prudent leverage and balance sheet strategy Successfully delevered the Company 17% on a debt / equity basis to 3.4x1 since 2023 Best-in-class, highly aligned senior management team with significant ownership (~11%) Business Source: Company filings (As of March 31, 2026) 1) Trust preferred securities “TruPS” included as equity Platform • Customer-Centric Approach: Commitment to nurture long-term relationships, leading to multiple successful loan engagements over the years • Proven Track Record: Impressive number of repeat borrowers and sponsors, who consistently demonstrate strong operational capabilities and reliable loan repayment • Consistent Excellence: Symbiotic businesses outperforms through the cycle Bridge and mezzanine loans Construction loans GSE loan origination GSE loan servicing Multiple revenue opportunities across borrower’s life cycle
4 Arbor has a 40+ Year Track Record of Excellence in the Multifamily Lending Sector Arbor National Mortgage founded by Ivan Kaufman. The company ultimately grows to greater than 1,200 employees in 8 states 1983 1992 Arbor National Mortgage goes public under the name Arbor National Holdings Arbor Commercial Mortgage (ACM) established as the commercial real estate finance subsidiary of Arbor National Holdings 1993 Arbor Realty Trust (NYSE: ABR) goes public completing a $135M IPO 2004 ACM obtains Fannie Mae DUS Seller/Servicer license, one of 25 granted in the country 1996 Arbor is one of the first commercial REITs to access securitization market post-2008 recession through collateralized loan obligations (CLOs) 2012 ACM receives Freddie Mac Seller/Servicer designation and becomes one of three nationwide lenders to offer the Freddie Mac Small Balance Loan (SBL) product 2014 Arbor completes the acquisition of ACM’s agency lending platform, integrating both the structured and agency business 2017 Arbor begins development of its Single-Family Rental “SFR” platform 2018 Arbor wins the #1 DUS Multifamily Lender Excellence in Operations award, the #1 Top Lender of Workforce Housing Rent Preservation, and is a top 10 DUS Multifamily Lender for the 18th year in a row 2024 Arbor launches Arbor Private Construction, a new construction financing product that complements the full suite of GSE financing options for construction- ready multifamily projects 2023 Over 30 years, ABR has transformed into a full-service multifamily loan originator that can support all aspects of commercial development 1995 Arbor National Holdings is sold to Bank of America; Ivan Kaufman retains ACM We believe Arbor is the only commercial mortgage REIT to successfully manage its securitization vehicles during the recession without any defaults or losses to its investors 2008 Source: Company website, Company filings (As of March 31, 2026)
5 2008 We Believe Arbor is the Only Multifamily Mortgage Lender to Survive the Great Financial Crisis 2009 2010 2012 Despite the Great Financial Crisis, Arbor announces record earnings and a significant increase to overall capital structure liquidity Arbor pays down approximately $189M in warehouse and term debt outstanding, and successfully restructures all outstanding Trust Preferred Securities Arbor retires all short-term recourse debt, refinances and modifies a significant amount of the underlying portfolio, monetizes non-performing and unencumbered assets, and increases liquidity by utilizing non- recourse CDO vehicles As a result of transforming its balance sheet proactively and prioritizing liquidity, Arbor is one of the first commercial mortgage REITs to access the securitization market post Great Financial Crisis “We will continue to aggressively manage our legacy issues and credit facilities and focus heavily on liquidity, capital retention and reducing our short term borrowings during this significant down turn” – Ivan Kaufman, CEO & Chairman (November 2008) “We believe that this is an environment where there’ll be a huge differentiation and perhaps a lot of the weaker companies will disappear … we just have to stick to building our business and utilizing these opportunities” – Ivan Kaufman, CEO & Chairman (February 2008) Capital Retention: Arbor prioritized capital retention and reducing short- term borrowing to focus on liquidity during an uncertain economic period Portfolio Management: Arbor took early steps to manage the loan portfolio effectively by restructuring and monetizing loans and recording appropriate reserves Timeline Commentary Arbor's successful navigation of the GFC demonstrated the strength of its underwriting capabilities and resilient business model Peer group pre-GFC Peer group post-GFC Capital Restructuring: Arbor significantly restructured its capital structure by retiring a significant amount of debt at deep discounts Prudent Capital Management: Arbor aggressively managed struggling credit facilities
6 Internalized, highly aligned management team with significant ownership Industry-leading expertise with deep-rooted relationships across commercial real estate space Deep bench of talented employees Best-in-class underwriting and origination capabilities ✓ ✓ ✓ ✓ Best-in-Class, Highly Aligned Management Team EVP, Chief Operating Officer 20+ years of experience in real estate finance, multifamily loan production, and capital markets President and Chairman of Arbor Realty Trust 40+ years of executive leadership experience in commercial real estate Founded Arbor in 1983 and has been CEO and President of Arbor Commercial Mortgage LLC since 1993 EVP, Structured Securitization Significant experience in structured finance and real estate industries 20+ year tenure with Arbor EVP, Head of Agency Lending 30+ years of multifamily real estate finance experience Leads Arbor’s agency lending platforms, including Fannie Mae, Freddie Mac, and FHA EVP, Chief Investment Officer, Residential Financing 20+ years of experience in mortgage trading, securitization, banking and servicing 10+ year tenure with Arbor EVP, Servicing and Asset Management 25+ years of commercial real estate experience Significant experience in special servicing EVP, Asset Finance and Treasury 20 years of capital markets and loan origination experience at institutional debt funds and mortgage REITs Ivan Kaufman Paul Elenio Yoni Goodman Steven Katz Danny van der Reis Jeff Lee Kevin Wachter Gene Kilgore David Friedman EVP, Chief Credit Officer and Non-Agency & Head of Arbor Private Construction 20+ years of experience in commercial real estate lending Previous experience at Greystone, TD Bank, BofA and PNC Bank Chief Financial Officer 30+ years of experience in commercial real estate in operational and financial capacity Over 30-year tenure with Arbor
7 Arbor has Two Distinct Yet Complementary Business Lines Description Originate real estate loans and hold on balance sheet Invests in the multifamily, Single-Family Rental, and commercial real estate markets Originate, sell, and service real estate loans for GSEs Short-term assets: Loans held-for-sale1 Long-term assets: Capitalized mortgage servicing rights (“MSRs”)2 Highlights Best-in-class balance sheet loan origination business Strong risk-adjusted returns Proprietary Single-Family Rental platform Weighted average of ~21 months to maturity3 Capital-light business High barriers to entry Visibility on prepayment protected annual servicing fee revenue of ~$129M4 Weighted average life of portfolio of ~6 years Portfolio ($B) Income streams Interest income on loans Assets ($M) $13,262 $1,431 Liabilities ($M) 11,117 596 Book value of equity ($M) 1,511 834 LTM earnings before taxes & preferred dividends ($M) 61 82 % of total 43% 57% Structured Business Agency Business Multifamily bridge loans $7.9 SFR bridge loans $3.3 Mezzanine and Preferred Equity loans $0.5 APC $0.3 $12.0B Structured loan portfolio Freddie Mac $7.4 Private Label $2.5 Other $2.1 Fannie Mae $24.3 $36.3B GSE servicing portfolio Source: Company filings (As of March 31, 2026, unless otherwise noted) 1) Represents loans originated and sold under the GSE and HUD programs, which are generally transferred or sold within 60 days of loan origination, as well as Private Label loans, which are either sold instantaneously or pooled and securitized, or sold, within 180 days of loan origination 2) Based on the discounted expected net cash flows associated with the servicing of the loan 3) Inclusive of extension options 4) Weighted average servicing fee of 35.5bps on $36.3B portfolio 5) Excludes impact of MSRs net of amortization, derivative instruments, and other income 6) Includes commitment fees, broker fees, loan assumption fees, loan origination fees % of LTM Agency Net Revenue5 Servicing fees4 Gain on sale of loans1,6 Interest earned on escrows Interest income on loans held-for-sale1 43% 24% 17% 16%
8 GSE/Agency – Predominately five to ten-year fixed-rate loans; includes long-dated prepayment protected servicing income creating a significant annual annuity Balance Sheet – Three to five years on average; feeds pipeline of future GSE/Agency originations Single-Family Rental – One to three years on average; offers us three turns on our capital through construction, bridge and permanent loans Construction (APC) – Multifamily product, one to three years on average; offers us three turns on our capital through construction, bridge and permanent agency loans Arbor’s Adaptable Originations Platform Drives Industry- Leading Performance Source: Company filings 1) SFR totals include committed amounts that may not be fully funded Average Duration 2022 ~$11.4B 2024 ~$6.8B 2023 ~$6.8B 2025 ~$8.4B 14% 1% 59% 2% 18% 6% 1 7% 2% 64% 1% 26% 6% 1% 74% 1% 18% 48% 2% 39% 1% 10%
9 Agency Servicing Portfolio ($B) ~$36.3B servicing portfolio, 100% focused on multifamily Generates significant prepayment protected revenue stream of ~$129M annually with 6 year weighted average remaining life ~$2.0B cash/escrow balances (earns ~$66M annually) ~$466M estimated fair market value of MSR with a carrying value of ~$332M Arbor has the Leading Nationwide Agencies Origination and Servicing Platform Total Agency Originations ($B) Source: Company filings (As of March 31, 2026) 14.8 18.3 19.1 19.0 21.3 22.7 24.1 24.3 $20.1 $24.6 $27.0 $28.0 $31.0 $33.5 $36.2 $36.3 2019 2020 2021 2022 2023 2024 2025 1Q26 Fannie Mae Freddie Mac FHA Private Label SFR Bridge ~$71.2B of Agency originations since inception in 1995 Highly scalable and difficult to replicate platform Average loan size of $10M - $15M Industry leading performance with long track record of low historical losses Top 10 Fannie Mae lender for 19 years in a row; #9 in 2025 3.3 5.0 3.4 2.9 3.8 2.4 3.0 0.6 0.7 1.0 1.0 1.4 0.8 1.8 1.9 1.5 $4.8 $6.7 $6.4 $4.8 $5.1 $4.5 $5.1 $0.7 2019 2020 2021 2022 2023 2024 2025 1Q26 Fannie Mae Freddie Mac FHA Conduit Private Label SFR
10 Annuity Based Business Model Drives Diversified Income Streams Source: Company filings (As of March 31, 2026) 1) Annualized based on March 31, 2025 and 2026 portfolio and debt balances, which may not be indicative of actual results 2) Structured business only; does not include interest income from Agency loans held-for-sale 3) Asset and debt rates reflect “all in” amounts, which include certain fees and costs 2 3 3 Significant Long-Dated, Predictable Annual Cash Flow1 Other Diversified Platform Income Sources Based on: 4/1/25 4/1/26 Cash/Escrow Balance $1.6B $2.0B Earnings Rate 4.02% 3.30% Based on: 4/1/25 4/1/26 Servicing Portfolio $33.5B $36.3B Servicing Rate 0.375% 0.355% Based on: 4/1/25 4/1/26 Asset Bal. $11.5B $12.0B Asset Rate 7.85% 7.03% Debt Bal. $9.5B $10.7B Debt Rate 6.82% 6.40% Based on: 2024 2025 1Q26 Gain on Sale $75M $71M $13M Equity Investments $6M $51M $4M $126M $129M 4/1/2025 4/1/2026 Servicing Revenue $255M $158M 1/1/2025 1/1/2026 Net Interest Income 2 $66M $66M 4/1/2025 4/1/2026 Cash/Escrow Earnings2 $81M $122M $17M Gain on Sale Equity Investments
11 Arbor Has a Consistent Track Record of Book Value Appreciation and Outperformance Source: Company filings Sector peers include ACRE, ARI, BXMT, GPMT, KREF, LADR, RC, STWD and TRTX 16% (32%) (40%) (20%) 0% 20% 40% 4Q19 4Q20 4Q21 4Q22 4Q23 4Q24 4Q25 A ABR BVPS Peer Avg BVPS Arbor has operated with best-in-class performance metrics and significantly outperformed peers in book value appreciation
12 Key Investment Highlights Arbor benefits from strong momentum on key priorities Focused on the resilient multifamily lending market Adaptable originations platform enables pursuit of most attractive lending opportunities Leading nationwide agencies origination and servicing platform Annuity-based business model drives diversified income streams Highly diversified capital structure and liquidity profile
13 Recent Accomplishments Demonstrate Arbor’s Focus on Operational Excellence Continued monetization of legacy investments Recognized $56M in cash gains from Lexford in FY 2025, an additional $6M in 1Q26, and over $110M of income from this investment life-to-date Continued success with right side of balance sheet Entered into a new $763M CLO (CLO 21) with 88% leverage, creating $35M of liquidity Entered into a new $1.1B CLO (CLO 20) with record 89% leverage, creating $85M of liquidity Unwound three legacy CLO vehicles, refinancing assets with a new $1.15B repurchase facility and existing lines, enhancing leverage, reducing pricing and generating ~$170M of liquidity Completed first BTR CLO securitization in the industry, for ~$800M of assets, terms and pricing improvement over existing warehouse lines resulting in improved returns and profitability Completed debut $500M high-yield bond offering and Ba2 / BB public ratings from Moody’s and Fitch Issued additional follow-on offering of $400M high-yield bonds Resilience under challenging conditions Originated $5.1B of Agency loans in FY 2025, including $3.6B in the second half of the year FY 2025 total represents a 13% increase over $4.5B originated in FY 2024 Servicing portfolio increased 9% since 1/1/25 to $36.3B as of 3/31/26 ~$3.5B of Structured originations in FY 2025; ~$770M in 1Q26 Structured loan portfolio increased 6% since 1/1/25 to $12.0B as of 3/31/26 Source: Company filings 1) Reflects ending book value per share on 3/31/26 2) Assumes no reinvestment of the common dividend. Reflects ending stock price on 3/31/26 Strong performance metrics 9.2% average ROE in FY 2025 and 1Q26 16% increase in book value (over last 6 years)1 18% 6-year total shareholder return2
14 Source: Company filings (As of March 31, 2026) 1) No other individual state represented 4% or more of the total Arbor’s Loan Portfolio is Focused on the Highly Stable, Liquid and Resilient Multifamily Market LOAN TYPE ASSET CLASS GEOGRAPHICAL LOCATION ✓ Primary focus on stable multifamily senior loans Generates strong leveraged returns Geographically diversified Balance sheet business drives GSE/Agency pipeline ✓ ✓ ✓ PORTFOLIO OVERVIEW Bridge, 93% Mezz, 3% Pref Eq, 2% APC, 2% Multifamily, 72% Single-Family Rental, 27% Other, 1% TX, 23% FL, 17% NY, 10% AZ, 8% GA, 7% Other, 35% 1 Total Portfolio $12.0B As of: 3/31/2026 Average loan size $22.0M W/A loan-to-value 77% Allowance for credit losses (CECL) 1% W/A mos. to maturity 15.7 W/A mos. to maturity w/ext. option 20.8
15 Arbor is Singularly Focused on Accelerating the Resolution of Non-Performing Assets Source: Company filings (As of March 31, 2026) 1) Includes $84.3M of reserves related to REO assets Non-Performing Assets - 2025-2026 ($ in 000s) UPB # UPB # UPB # UPB # Beginning Balance 653,911$ 28 528,700$ 22 749,250$ 33 617,448$ 29 Additions 89,634 4 435,103 18 270,710 9 197,775 5 Transfer to REO (110,502) (5) (122,475) (2) (88,168) (4) (58,925) (3) Modified/Payoffs (104,343) (5) (92,078) (5) (314,344) (9) (274,848) (12) Ending Balance 528,700$ 22 749,250$ 33 617,448$ 29 481,450$ 19 Carrying Value # Carrying Value # Carrying Value # Carrying Value # Beginning Balance 302,158$ 13 365,186$ 15 471,347$ 16 498,938$ 19 Transfer to REO 67,977 3 107,556 2 72,868 4 59,017 3 Sold (7,000) (1) (10,063) (1) (28,814) (1) (34,768) (1) Impairment - - (20,500) (12,500) Other (CapEx / Depreciation) 2,051 8,668 4,037 10,079 Ending Balance 365,186$ 15 471,347$ 16 498,938$ 19 520,766$ 1 21 UPB # UPB # UPB # UPB # Beginning Balance 956,069$ 41 893,886$ 37 1,220,597$ 49 1,116,386$ 48 Activity (62,183) (4) 326,711 12 (104,211) (1) (114,170) (8) Ending Balance 893,886$ 37 1,220,597$ 49 1,116,386$ 48 1,002,216$ 40 % of Total Portfolio 7.5% 10.0% 8.9% 8.0% REO Rollforward 2Q25 3Q25 4Q25 1Q26 2Q25 3Q25 4Q25 1Q26 Combined Non-Performing Assets Delinquency Rollforward 2Q25 3Q25 4Q25 1Q26 Continue to make meaningful progress each quarter by resolving more non-interest earning assets versus new defaults. In 1Q26, non-performing assets are down 10% as Arbor accelerates the resolution process
16 Arbor has Clear Visibility to Resolution on Non-Performing Assets Source: Company filings (As of March 31, 2026) 1) Assumes no new delinquencies Aggressive resolution strategy will go a long way towards improving Arbor’s run rate of net interest income as these non-performing assets are dragging earnings down by $75M - $95M annually, or ~$0.35 - $0.45 per share Projected Resolution for $480M of Delinquencies → $200M - $300M is expected to be resolved from 2Q26 – 3Q26 → Potential to rectify another ~$100M in 4Q26 → Throughout the remainder of 2026, Arbor is projected to take back ~$100M of non- performing loans as REO assets, as well as work through any remaining delinquencies → This aggressive resolution pace will resolve nearly all of these delinquencies by year end Projected Resolution for $520M of REO Assets → ~$50M - $75M of delinquent loans (noted above) taken back as REO in 2Q26 → Additionally, from 3Q26 – 4Q26, Arbor is projected to take back between $25M - $50M of non-performing loans (noted above) as REO assets → We expect to resolve between $300M - $400M of these assets during the year, which will bring the REO balance down to $250M - $300M by the end of 2026 1
17 Arbor Maintains a High-Quality Loan Portfolio With Active Risk Management to Mitigate Potential Loan Losses Source: Company filings (As of March 31, 2026) 1) Net of reversals 2) Includes impact of adopting current expected credit loss (“CECL”) on January 1, 2020 of $17.3M 3) Includes $68.9M related to a land development legacy asset from 2006 (Homewood) 4) Includes $84.3M of reserves related to REO assets 5.7% Experienced Team with Strong Track Record of Managing Through Cycles Structured Aggressive approach to portfolio management and, when necessary, taking over assets to stabilize projects Partner with strong sponsors with track record of success and maintain disciplined origination principles For REO, resolution through disposition or invest strategically in asset’s rehabilitation to improve NOI & occupancy Current delinquencies represent just 1.7% of FY 2020 unpaid balance and 2021 – 2026 new originations of $28.1B Structured Agency Agency business credit risk is limited by nature of loan sales and servicing model Arbor participates in a loss-share program with Fannie Mae The Company has a clear history of navigating this potential guarantee with limited losses Marginal Fannie Mae delinquencies of 2.75% with $43M of specific reserves against ~$695M of assets ($M) FY'17 FY'18 FY'19 FY'20 2 FY'21 FY'22 FY'23 FY'24 FY'25 1Q26 1Q26 w/REO Beginning Balance 83.7$ 62.8$ 71.1$ 88.4$ 148.3$ 113.2$ 132.6$ 195.7$ 239.0$ 146.0$ Provision for loan losses 1 (0.4) 11.5 - 59.9 (24.3) 19.4 68.8 55.5 35.3 3.4 Net charge-offs (20.5) (3.2) - - (10.8) - (5.7) (12.2) (128.3) 3 (18.2) Ending balance 62.8$ 71.1$ 71.1$ 148.3$ 113.2$ 132.6$ 195.7$ 239.0$ 146.0$ 131.2$ 215.5$ 4 Total portfolio UPB $2.7B $3.3B $4.3B $5.5B $12.2B $14.5B $12.6B $11.3B $12.1B $12.0B $12.5B Ending balance % of total UPB 2.4% 2.2% 1.7% 2.7% 0.9% 0.9% 1.6% 2.1% 1.2% 1.1% 1.7% Allowance for Credit Losses - Structured Business
18 2,345 154 657 2,050 3,373 1,180 567 3,386 13,712 Highly Diversified Capital Structure Source: Company-provided information 1) Amounts are as of March 31, 2026 2) Excludes Agency debt due to its short-term nature Trust preferred (TruPS) Warehouse & repo Perpetual preferred equity Senior unsecured notes Common equity Collateralized loan obligations BTR securitization CLO repurchase facility 1 Total Enterprise Value = Diversity of funding options provides Arbor with financial flexibility and enables the Company to adapt to changing market conditions and mitigate risk Extensive experience with CRE CLOs 2 outstanding legacy nonrecourse CLOs totaling ~$1.8B; 2.05% over SOFR; 70% leverage CLO 20; 1 $1.1B nonrecourse; 1.82% over SOFR; 89% leverage; 2.5-year replenishment CLO 21; $762M nonrecourse; 1.73% over SOFR; 88% leverage; 2.5-year replenishment Match-funded with locked-in spreads Wtd. average advance rate of 79% 16 separate warehouse and repo facilities ($6.4B committed) 2 6.70% wtd. average coupon rate, no significant covenants; matures in 2026-2030 ~30 year unsecured with no significant covenants – equity-like $427M, 6.25% rate; $230M, 6.375% rate CLO-like $1.2B repurchase facility used to unwind 2 CLO vehicles in full 1.85% over SOFR; 80% leverage; 88% non-recourse BTR CLO, improved terms over our warehouse lines 80% leverage, 2-year replacement ~$8.5B secured indebtedness of which ~80% is non-recourse and ~58% is non-mark-to-market, non-recourse, long-dated securitized/CLO-like debt with average pricing of ~2.05% (w/o fees) over SOFR
19 Unencumbered Asset Pool is Comprised of High-Quality Assets $3.2B total unencumbered asset pool made up of high-quality assets 1.6x unencumbered assets-to-unsecured debt Averaging ~2.1x over last 8 quarters, significantly above the covenant requirement ~$775M cushion vs. 1.2x CLOs remain overcollateralized and are comfortably in compliance with existing overcollateralization and interest coverage covenants 58% of secured debt is nonrecourse and non- mark-to-market Pro forma unrestricted cash 12.6% CLO equity 34.2% Total unencumbered securities 6.0% Other assets 13.0% Investments in equity affiliates 1.8% 1st mortgage loans 12.6% Mezzanine & preferred 11.9% Net MSRs 7.9% Key Unencumbered Asset Pool HighlightsUnencumbered Asset Pool Composition $3.2B Total Unencumbered Assets Significant unencumbered asset coverage of unsecured debt from high-quality asset pool Source: Company provided information. Amounts as of March 31, 2026 1) Other assets are comprised primarily of interest and exit fees receivable, operating lease ROU and fixed assets, deferred compensation assets, and other receivables 1
20 Over the Last 5 Years Arbor has Generated Strong Financial Results Source: Company filings (As of March 31, 2026) 1) Distributable Earnings is a non-GAAP measure that excludes certain one-time items, as well as certain non-cash items. These adjustments are reflected on the appropriate line items shown on this page 2) $1.07 including realized losses totaling $22.6M in 2025; $0.07 including realized losses totaling $22.9M in 1Q26 Solid earnings base driven by thriving multifamily focused GSE/Agency platform as well as a well-positioned balance sheet business with entrenched low-cost CLOs that allow for outsized levered returns Quarter Ended 1Q26 Net interest income $ 254,082 $ 390,784 $ 427,991 $ 363,258 $ 238,172 $ 59,845 Servicing revenue 166,170 196,570 208,278 202,819 190,729 45,079 Gain on sale, incl. fee based services, net 123,037 72,904 72,522 74,932 70,670 12,505 Net operating income (loss) on REOs 34,610 (259) (189) (168) (6,633) (3,904) Income from equity affiliates - 14,247 24,281 5,772 50,880 4,411 Other income 7,448 (2,359) 4,867 7,254 10,537 2,225 Total net revenues 585,347 671,887 737,750 653,867 554,355 120,161 Total operating expenses 237,155 227,282 223,404 239,689 237,096 63,031 Realized loan reserves / (recoveries) 12,575 (2,045) 20,499 14,790 29,707 9,425 Preferred stock dividends 21,888 40,954 41,368 41,368 41,368 10,342 Distributable earnings1 $ 313,729 $ 405,696 $ 452,479 $ 358,020 $ 246,184 $ 37,363 Distributable earnings ROE on common equity 18.5% 18.2% 17.8% 14.0% 9.9% 6.3% Distributable earnings per common share $2.01 $2.23 $2.25 $1.74 $1.17 2 $0.18 2 Dividend per common share $1.48 $1.57 $1.71 $1.72 $1.20 $0.17 Distributable EPS in excess of dividends $0.53 $0.66 $0.54 $0.02 ($0.03) $0.01 Dividend payout ratio 74% 70% 76% 99% 103% 94% 2025 Year Ended 20242023 (Amounts in 000s, except per share amounts) 2021 2022
21 Historical Reconciliation of Distributable Earnings to GAAP Net Income Source: Company filings (As of December 31, 2025) 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) $1.07 including realized losses totaling $22.6M in 2025; $0.07 including realized losses totaling $22.9M in 1Q26 Quarter Ended 1Q26 Net income attributable to common stockholders $ 317,412 $ 284,829 $ 330,065 $ 223,272 $ 107,427 $ 629 Adjustments: Net income attributable to noncontrolling interest 38,507 28,044 29,122 19,278 9,033 52 Income from mortgage servicing rights (130,230) (69,346) (69,912) (51,272) (54,532) (9,660) Deferred tax provision (benefit) 10,892 (1,741) (7,349) (11,613) 3,773 (2,580) Amortization and write-offs of MSRs 91,356 104,378 77,829 76,922 81,112 19,340 Depreciation and amortization 10,900 11,069 16,425 12,040 26,217 7,814 Loss on extinguishment of debt 3,374 4,933 1,561 412 2,919 – Provision for credit losses, net (39,856) 25,077 68,642 65,537 32,487 (70) Loss (gain) on derivative instruments, net 432 3,480 (8,844) 9,212 (3,379) 1,298 (Gain) loss on real estate (2,466) – – – 27,338 14,636 Loss on redemption of preferred stock 3,479 – – – – – Stock-based compensation 9,929 14,973 14,940 14,232 13,789 5,904 Distributable earnings1 $ 313,729 $ 405,696 $ 452,479 $ 358,020 $ 246,184 $ 37,363 Distributable earnings per common share2 $2.01 $2.23 $2.25 $1.74 $1.17 $0.18 20242023 (Amounts in 000s, except per share amounts) 2021 2025 Year Ended 2022
FAQ
What are Arbor Realty Trust (ABR) main business lines in this presentation?
Arbor highlights two primary businesses: a $12.0B structured loan portfolio focused on multifamily and single-family rental lending, and a $36.3B agency origination and servicing platform as of March 31, 2026, which generates fee-based and servicing income.
How large is Arbor Realty Trust (ABR) agency servicing portfolio?
Arbor reports an agency servicing portfolio of $36.3 billion as of March 31, 2026. The loans are 100% multifamily and carry a weighted average remaining life of about six years, supporting roughly $129 million of annual prepayment-protected servicing revenue.
What recurring cash flows does Arbor Realty Trust (ABR) emphasize?
Arbor emphasizes three key recurring streams: about $129M in annual servicing revenue, around $66M in annual earnings on roughly $2.0B of cash and escrow balances, and net interest income from its $12.0B structured loan portfolio, all measured around March 31, 2026.
How is Arbor Realty Trust (ABR) addressing non-performing assets?
Arbor reports non-performing assets of about 8.0% of the portfolio, which it estimates reduce annual earnings by $75M–$95M. It outlines an aggressive 2026 plan to resolve roughly $480M of delinquencies and $520M of REO assets through workouts, take-backs, and dispositions.
What recent performance metrics does Arbor Realty Trust (ABR) disclose?
The presentation cites a 9.2% average ROE for 2025 and 1Q26, a 16% book value increase over six years, and a 6-year total shareholder return of 18%. Distributable earnings per share exceeded common dividends in most recent full years shown.
How has Arbor Realty Trust (ABR) grown its agency originations and servicing?
Arbor states it has originated roughly $71.2B of agency loans since 1995. Annual agency originations were $5.1B in 2025, up 13% from 2024, while the servicing portfolio increased 9% from January 1, 2025 to $36.3B by March 31, 2026.