Arbor Realty Trust swings to $85.4M Q3 net loss
The immediate common-dividend suspension reflects Arbor's focus on capital preservation, upcoming debt maturities and resolution of legacy assets.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Arbor Realty Trust reported a third-quarter 2026 net loss attributable to common stockholders of $85.4 million, or $0.51 per diluted share, versus net income of $38.5 million, or $0.20 per diluted share, in third quarter 2025. Non-GAAP distributable loss was $6.9 million, or $0.04 per diluted share, compared with distributable earnings of $72.9 million, or $0.35 per diluted share. The quarter included a $53.0 million CECL-related loan-loss provision and $34.1 million of real-estate-owned impairments. Non-performing loans had $647.6 million of UPB before $41.9 million of related reserves across 32 loans at September 30, 2026, versus $428.8 million before $31.1 million in reserves across 19 loans at June 30, 2026.
The board suspended the quarterly common dividend effective immediately, citing capital preservation, upcoming debt maturities and resolution of legacy assets. Arbor completed an $825.0 million collateralized securitization, generating approximately $50 million of additional liquidity, and a $375.0 million offering of 6.25% convertible senior notes due 2029. It used the note proceeds to redeem $270.0 million of 4.50% senior notes and repurchase common stock in two transactions.
0 points · 0 major2 major · 3 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- None.
Negative
- Major pointCommon-stockholder results moved from $38.5 million income to $85.4 million loss.
- Major pointQuarterly common dividend suspended effective immediately.
- Moderate pointNon-performing loan UPB before reserves reached $647.6 million, versus $428.8 million.
Insights
Analyzing...
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, or exhibit attachments filed with this report.
Key Figures
Net loss attributable to common stockholders: $85.4 million loss
Diluted loss per common share: $0.51 loss per share
Distributable result: $6.9 million loss
+4 more
7 metrics
Net loss attributable to common stockholders
$85.4 million loss
Quarter ended September 30, 2026; compared with $38.5 million net income in third quarter 2025
Diluted loss per common share
$0.51 loss per share
Quarter ended September 30, 2026; compared with $0.20 earnings per share in third quarter 2025
Distributable result
$6.9 million loss
Third quarter 2026; compared with $72.9 million distributable earnings in third quarter 2025
Net provision for loan losses associated with CECL
$53.0 million
Third quarter 2026
Non-performing loan UPB
$647.6 million
Across 32 loans, before $41.9 million of related reserves, at September 30, 2026
Collateralized securitization
$825.0 million
Completed in third quarter 2026
Additional liquidity from securitization
Approximately $50 million
Generated by the completed collateralized securitization
Key Terms
Distributable earnings, CECL, UPB, Prepaid forward stock repurchase transaction, +1 more
5 terms
Distributable earnings financial
"distributable earnings of $72.9 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
"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.
UPB financial
"unpaid principal balance ("UPB")"
Unpaid principal balance (UPB) is the remaining portion of a loan’s original amount that the borrower still owes, similar to the current balance showing how much is left on a mortgage. Investors care about UPB because it helps size future cash flows, assess the amount of collateral still backing a loan, and gauge credit and prepayment risk—much like knowing how much of a house loan remains to judge future payments and potential losses.
Prepaid forward stock repurchase transaction financial
"pursuant to a prepaid forward stock repurchase transaction"
Asset replenishment period financial
"two and a half year asset replenishment period"
Earnings Snapshot
Net loss attributable to common stockholders: $85.4 million loss
Third quarter 2026
Net loss attributable to common stockholders
$85.4 million loss
Compared with $38.5 million net income in third quarter 2025
Diluted loss per common share
$0.51 loss per share
Compared with $0.20 earnings per share in third quarter 2025
Distributable result
$6.9 million loss
Compared with $72.9 million distributable earnings in third quarter 2025
Diluted distributable result per share
$0.04 loss per share
Compared with $0.35 distributable earnings per share in third quarter 2025
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were ABR's third-quarter 2026 results?
ABR reported a GAAP net loss attributable to common stockholders of $85.4 million, or $0.51 per diluted share, compared with net income of $38.5 million, or $0.20 per diluted share, in third quarter 2025. Non-GAAP distributable loss was $6.9 million, or $0.04 per diluted share, versus distributable earnings of $72.9 million, or $0.35 per diluted share.
Why did ABR suspend its common dividend?
The board suspended the quarterly common dividend effective immediately to preserve capital and maintain financial flexibility to address upcoming debt maturities and support resolution of legacy assets. Arbor said it will continue to evaluate its dividend policy based on market conditions, performance, capital needs and REIT distribution requirements.
How much liquidity did ABR's securitization generate?
Arbor completed an $825.0 million collateralized securitization that generated approximately $50 million of additional liquidity. Investment-grade-rated notes totaling $730.1 million were issued, and Arbor retained $112.4 million of subordinate interests, including $17.5 million of investment-grade notes.
How did ABR use the proceeds from its convertible notes offering?
Arbor used proceeds from its $375.0 million offering of 6.25% convertible senior notes due 2029 to redeem $270.0 million of 4.50% senior notes and repurchase common stock. The repurchases included $11.6 million for approximately 2.1 million shares alongside the offering and $114.3 million for approximately 18.9 million shares through a prepaid forward stock repurchase transaction.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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): October 30, 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 October 30, 2026, Arbor Realty Trust, Inc. issued a press release announcing its financial results for the quarter ended September 30, 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 October 30, 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: October 30, 2026 | By: | /s/ Paul Elenio | ||||||
| Name: | Paul Elenio | |||||||
| Title: | Chief Financial Officer | |||||||
Arbor Realty Trust Reports Third Quarter 2026 Results
Company Highlights:
•GAAP net loss of $(85.4) million, or $(0.51) per diluted common share
•Distributable loss1 of $(0.04) per diluted common share, or distributable earnings of $0.08 excluding $21.7 million of net realized losses from the resolution of certain legacy assets
•Suspends quarterly cash dividend on common stock during this challenging environment to preserve capital and maintain financial flexibility
•Closed an $825.0 million collateralized securitization vehicle with enhanced leverage, generating ~$50 million of additional liquidity
•Servicing portfolio of ~$36.80 billion, agency loan originations of $907.0 million
•Structured loan portfolio of ~$12.00 billion, originations of $459.2 million and runoff of $574.0 million
Uniondale, NY, October 30, 2026 -- Arbor Realty Trust, Inc. (NYSE: ABR), today announced financial results for the third quarter ended September 30, 2026. Arbor reported a net loss for the quarter of $(85.4) million, or $(0.51) per diluted common share, compared to net income of $38.5 million, or $0.20 per diluted common share for the quarter ended September 30, 2025. Distributable loss for the quarter was $(6.9) million, or $(0.04) per diluted common share, compared to distributable earnings of $72.9 million, or $0.35 per diluted common share for the quarter ended September 30, 2025.
Arbor Realty Trust Reports Third Quarter 2026 Results | |||||
October 30, 2026 | Page 2 | ||||
Agency Business
Loan Origination Platform
| Agency Loan Volume ($ in thousands) | |||||||||||
| Quarter Ended | |||||||||||
| September 30, 2026 | June 30, 2026 | ||||||||||
| Fannie Mae | $ | 574,805 | $ | 619,130 | |||||||
| Freddie Mac | 185,679 | 428,278 | |||||||||
| FHA | 129,456 | 8,083 | |||||||||
| SFR-Fixed Rate | 17,039 | 21,272 | |||||||||
| Total Originations | $ | 906,979 | $ | 1,076,763 | |||||||
| Total Loan Sales | $ | 978,152 | $ | 1,143,438 | |||||||
| Total Loan Commitments | $ | 819,243 | $ | 1,211,900 | |||||||
For the quarter ended September 30, 2026, the Agency Business generated revenues of $57.5 million, compared to $64.5 million for the second quarter of 2026. Gain on sales, including fee-based services, net was $10.9 million for the quarter, reflecting a margin of 1.12%, compared to $15.2 million and 1.33% for the second quarter of 2026. Income from mortgage servicing rights was $11.1 million for the quarter, reflecting a rate of 1.35% as a percentage of loan commitments, compared to $12.1 million and 1.00% for the second quarter of 2026.
At September 30, 2026, loans held-for-sale was $236.8 million, with financing associated with these loans totaling $222.8 million.
Fee-Based Servicing Portfolio
The Company’s fee-based servicing portfolio totaled $36.80 billion at September 30, 2026. Servicing revenue, net was $25.7 million for the quarter and consisted of servicing revenue of $44.1 million, net of amortization of mortgage servicing rights totaling $18.4 million.
Arbor Realty Trust Reports Third Quarter 2026 Results | |||||
October 30, 2026 | Page 3 | ||||
| Fee-Based Servicing Portfolio ($ in thousands) | |||||||||||||||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | ||||||||||||||||||||||||||||||||||
| UPB | Wtd. Avg. Fee (bps) | Wtd. Avg. Life (years) | UPB | Wtd. Avg. Fee (bps) | Wtd. Avg. Life (years) | ||||||||||||||||||||||||||||||
| Fannie Mae | $ | 24,545,520 | 43.6 | 5.0 | $ | 24,419,734 | 43.9 | 5.2 | |||||||||||||||||||||||||||
| Freddie Mac | 7,664,059 | 17.4 | 5.5 | 7,672,121 | 17.6 | 5.7 | |||||||||||||||||||||||||||||
| Private Label | 2,461,505 | 18.7 | 3.8 | 2,477,077 | 18.7 | 4.1 | |||||||||||||||||||||||||||||
| FHA | 1,641,273 | 13.8 | 18.9 | 1,585,871 | 13.8 | 18.9 | |||||||||||||||||||||||||||||
| SFR-Fixed Rate | 255,087 | 20.0 | 3.9 | 272,226 | 20.0 | 3.8 | |||||||||||||||||||||||||||||
| Bridge | 235,888 | 10.0 | 1.7 | 277,333 | 10.4 | 1.7 | |||||||||||||||||||||||||||||
| Total | $ | 36,803,332 | 34.7 | 5.6 | $ | 36,704,362 | 35.0 | 5.8 | |||||||||||||||||||||||||||
Loans sold under the Fannie Mae program contain an obligation to partially guarantee the performance of the loan (“loss-sharing obligations”) and includes $36.9 million for the fair value of the guarantee obligation undertaken at September 30, 2026. The Company recorded a $12.4 million net provision for loss sharing associated with CECL for the third quarter of 2026. At September 30, 2026, the Company’s total CECL allowance for loss-sharing obligations was $87.3 million, representing 0.36% of the Fannie Mae servicing portfolio.
Arbor Realty Trust Reports Third Quarter 2026 Results | |||||
October 30, 2026 | Page 4 | ||||
Structured Business
Portfolio and Investment Activity
| Structured Portfolio Activity ($ in thousands) | |||||||||||||||||||||||
| Quarter Ended | |||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | ||||||||||||||||||||||
| UPB | % | UPB | % | ||||||||||||||||||||
| Bridge: | |||||||||||||||||||||||
| SFR | $ | 367,114 | 80 | % | $ | 490,617 | 71 | % | |||||||||||||||
| Multifamily | 14,000 | 3 | % | 159,550 | 23 | % | |||||||||||||||||
| 381,114 | 83 | % | 650,167 | 94 | % | ||||||||||||||||||
| Construction - Multifamily | 43,318 | 9 | % | 38,810 | 6 | % | |||||||||||||||||
| Mezzanine/Preferred Equity | 34,793 | 8 | % | — | — | % | |||||||||||||||||
| Total Originations | $ | 459,225 | 100 | % | $ | 688,977 | 100 | % | |||||||||||||||
| Number of Loans Originated | 12 | 14 | |||||||||||||||||||||
| Commitments: | |||||||||||||||||||||||
| SFR | $ | 91,912 | $ | 48,785 | |||||||||||||||||||
| Construction - Multifamily | 104,500 | — | |||||||||||||||||||||
| Total Commitments | $ | 196,412 | $ | 48,785 | |||||||||||||||||||
| Loan Runoff | $ | 573,989 | $ | 539,745 | |||||||||||||||||||
| Structured Portfolio ($ in thousands) | |||||||||||||||||||||||
| September 30, 2026 | June 30, 2026 | ||||||||||||||||||||||
| UPB | % | UPB | % | ||||||||||||||||||||
| Bridge: | |||||||||||||||||||||||
| Multifamily | $ | 7,682,346 | 64 | % | $ | 7,895,187 | 65 | % | |||||||||||||||
| SFR | 3,463,471 | 29 | % | 3,376,845 | 28 | % | |||||||||||||||||
| Other | 46,519 | <1% | 46,519 | <1% | |||||||||||||||||||
| 11,192,336 | 94 | % | 11,318,551 | 94 | % | ||||||||||||||||||
| Mezzanine/Preferred Equity | 527,888 | 4 | % | 502,998 | 4 | % | |||||||||||||||||
| Construction - Multifamily | 279,494 | 2 | % | 285,482 | 2 | % | |||||||||||||||||
| Total Portfolio | $ | 11,999,718 | 100 | % | $ | 12,107,031 | 100 | % | |||||||||||||||
Arbor Realty Trust Reports Third Quarter 2026 Results | |||||
October 30, 2026 | Page 5 | ||||
At September 30, 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 6.54%, compared to $12.11 billion and 6.50% at June 30, 2026. Including certain fees earned and costs associated with the loan and investment portfolio, the weighted average interest rate was 6.97% at September 30, 2026, compared to 6.95% at June 30, 2026.
The average balance of the Company’s loan and investment portfolio during the third quarter of 2026, excluding loan loss reserves, was $12.11 billion with a weighted average yield of 6.84%, compared to $12.08 billion and 7.21% for the second quarter of 2026. The decrease in the weighted average yield was primarily due to additional delinquencies and rate modifications in the third quarter of 2026.
During the third quarter of 2026, the Company recorded a $53.0 million net provision for loan losses associated with CECL. At September 30, 2026, the Company’s total allowance for loan losses was $210.1 million. The Company had thirty-two non-performing loans with a UPB of $647.6 million, before related loan loss reserves of $41.9 million, compared to nineteen non-performing loans with a UPB of $428.8 million, before loan loss reserves of $31.1 million at June 30, 2026. In addition, the Company recorded $34.1 million of impairments on six real estate owned properties.
In addition, at September 30, 2026, the Company had two non-accrual loans with a UPB of $95.9 million that were less than 60 days past due, compared to three non-accrual loans with a UPB of $94.9 million at June 30, 2026.
During the third quarter of 2026, the Company modified 6 loans to borrowers experiencing financial difficulty with a total UPB of $192.1 million, the majority of which had borrowers investing additional capital to recapitalize their deals.
The Company foreclosed on one loan with a UPB of $13.2 million and sold five existing REO properties for $39.0 million.
Financing Activity
The balance of debt that finances the Company’s loan and investment portfolio at September 30, 2026 was $10.75 billion with a weighted average interest rate including fees of 6.69%, as compared to $10.48 billion and a rate of 6.38% at June 30, 2026.
The average balance of debt that finances the Company’s loan and investment portfolio for the third quarter of 2026 was $10.70 billion, as compared to $10.51 billion for the second quarter of 2026. The average cost of borrowings for the third quarter of 2026 was 6.66%, compared to 6.56% for the second quarter of 2026. The increase in average cost was primarily due to the convertible senior unsecured notes offering, as well as an increase in the average SOFR rate in the third quarter of 2026.
The Company completed an $825.0 million collateralized securitization secured initially by a portfolio of real estate related assets and cash. Investment grade-rated notes totaling $730.1 million were issued, and the Company retained subordinate interests in the issuing vehicle of $112.4 million, including $17.5 million of the investment grade notes. The facility has a two and a half year asset replenishment period and an initial weighted average interest rate of the notes issued to third parties of 1.70% plus term SOFR, excluding fees and transaction costs.
Arbor Realty Trust Reports Third Quarter 2026 Results | |||||
October 30, 2026 | Page 6 | ||||
The Company completed an upsized $375.0 million offering of 6.25% convertible senior notes due 2029. The Company used the offering proceeds to redeem its $270.0 million of 4.50% senior notes and to repurchase common stock through two separate transactions: $11.6 million to repurchase ~2.1 million shares concurrently with the offering and $114.3 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 elected to suspend its quarterly common stock dividend, effective immediately. The decision reflects the Company's continued focus on preserving capital and maintaining financial flexibility to address upcoming debt maturities and support the resolution of legacy assets. The Company will continue to evaluate its dividend policy based upon market conditions and the Company's performance, capital needs, and REIT distribution requirements with a continued focus on preserving book value and maximizing long-term shareholder value.
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 ABRQ326 when prompted by the operator.
A telephonic replay of the call will be available until November 6, 2026. The replay dial-in numbers are (800) 839-2435 for domestic callers and (402) 220-7212 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
Arbor Realty Trust Reports Third Quarter 2026 Results | |||||
October 30, 2026 | Page 7 | ||||
could cause actual results to differ materially from Arbor’s expectations include, but are not limited to, changes in economic conditions generally, and the real estate markets specifically, continued ability to source new investments, changes in interest rates and/or credit spreads, and other risks detailed in Arbor’s Annual Report on Form 10-K for the year ended December 31, 2025 and its other reports filed with the SEC. Such forward-looking statements speak only as of the date of this press release. Arbor expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Arbor’s expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.
Notes
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 Third Quarter 2026 Results | |||||
October 30, 2026 | Page 8 | ||||
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Consolidated Statements of Operations - (Unaudited)
($ in thousands—except share and per share data)
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Interest income | $ | 221,921 | $ | 223,001 | $ | 687,826 | $ | 703,997 | |||||||||||||||
| Interest expense | 184,249 | 184,735 | 537,212 | 521,564 | |||||||||||||||||||
| Net interest income | 37,672 | 38,266 | 150,614 | 182,433 | |||||||||||||||||||
| Other revenue: | |||||||||||||||||||||||
| Gain on sales, including fee-based services, net | 10,925 | 23,340 | 38,607 | 49,779 | |||||||||||||||||||
| Mortgage servicing rights | 11,078 | 15,538 | 32,849 | 34,598 | |||||||||||||||||||
| Servicing revenue, net | 25,741 | 29,652 | 75,360 | 82,692 | |||||||||||||||||||
| Property operating income | 7,873 | 4,189 | 24,246 | 14,028 | |||||||||||||||||||
| Gain (loss) on derivative instruments, net | 279 | (2,206) | 827 | 1,413 | |||||||||||||||||||
| Other income, net | 525 | 3,650 | 4,858 | 12,059 | |||||||||||||||||||
| Total other revenue | 56,421 | 74,163 | 176,747 | 194,569 | |||||||||||||||||||
| Other expenses: | |||||||||||||||||||||||
| Employee compensation and benefits | 42,524 | 44,169 | 135,304 | 131,386 | |||||||||||||||||||
| Selling and administrative | 15,384 | 13,698 | 48,205 | 44,868 | |||||||||||||||||||
| Property operating expenses | 11,804 | 7,296 | 36,438 | 17,572 | |||||||||||||||||||
| Depreciation and amortization | 5,868 | 5,355 | 18,901 | 14,947 | |||||||||||||||||||
| Impairment loss on real estate owned | 34,050 | — | 60,200 | — | |||||||||||||||||||
| Provision for loss sharing, net | 12,625 | 8,256 | 30,634 | 14,258 | |||||||||||||||||||
| Provision for credit losses, net | 55,506 | 19,694 | 99,485 | 47,773 | |||||||||||||||||||
| Total other expenses | 177,761 | 98,468 | 429,167 | 270,804 | |||||||||||||||||||
| (Loss) income before extinguishment of debt, gain (loss) on real estate, (loss) income from equity affiliates and income taxes | (83,668) | 13,961 | (101,806) | 106,198 | |||||||||||||||||||
| Loss on extinguishment of debt | — | — | — | (2,319) | |||||||||||||||||||
| Gain (loss) on real estate | 1,574 | (555) | (498) | (4,813) | |||||||||||||||||||
| (Loss) income from equity affiliates | (1,494) | 46,204 | 4,810 | 47,224 | |||||||||||||||||||
| Benefit from (provision for) income taxes | 1,181 | (7,594) | (4,054) | (14,583) | |||||||||||||||||||
| Net (loss) income | (82,407) | 52,016 | (101,548) | 131,707 | |||||||||||||||||||
| Preferred stock dividends | 10,342 | 10,342 | 31,027 | 31,027 | |||||||||||||||||||
| Net (loss) income attributable to noncontrolling interest | (7,395) | 3,211 | (10,507) | 7,828 | |||||||||||||||||||
| Net (loss) income attributable to common stockholders | $ | (85,354) | $ | 38,463 | $ | (122,068) | $ | 92,852 | |||||||||||||||
| Basic (loss) earnings per common share | $ | (0.51) | $ | 0.20 | $ | (0.66) | $ | 0.48 | |||||||||||||||
| Diluted (loss) earnings per common share | $ | (0.51) | $ | 0.20 | $ | (0.66) | $ | 0.48 | |||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||
| Basic | 168,916,898 | 193,748,462 | 184,546,941 | 192,028,656 | |||||||||||||||||||
| Diluted | 168,916,898 | 210,517,762 | 184,546,941 | 208,807,751 | |||||||||||||||||||
| Dividends declared per common share | $ | 0.17 | $ | 0.30 | $ | 0.64 | $ | 1.03 | |||||||||||||||
Arbor Realty Trust Reports Third Quarter 2026 Results | |||||
October 30, 2026 | Page 9 | ||||
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
($ in thousands—except share and per share data)
| September 30, 2026 | |||||||||||
| (Unaudited) | December 31, 2025 | ||||||||||
| Assets: | |||||||||||
| Cash and cash equivalents | $ | 439,689 | $ | 482,875 | |||||||
| Restricted cash | 250,877 | 67,347 | |||||||||
Loans and investments, net (allowance for credit losses of $210,104 and $145,971) | 11,764,328 | 11,934,248 | |||||||||
| Loans held-for-sale, net | 236,824 | 409,081 | |||||||||
| Capitalized mortgage servicing rights, net | 315,014 | 340,842 | |||||||||
Securities held-to-maturity, net (allowance for credit losses of $15,834 and $17,013) | 156,211 | 156,087 | |||||||||
| Investments in equity affiliates | 72,060 | 57,966 | |||||||||
| Real estate owned, net | 491,170 | 498,938 | |||||||||
| Goodwill and other intangible assets | 85,678 | 86,553 | |||||||||
| Other assets | 425,157 | 460,966 | |||||||||
| Total assets | $ | 14,237,008 | $ | 14,494,903 | |||||||
| Liabilities and Equity: | |||||||||||
| Credit and repurchase facilities | $ | 5,176,866 | $ | 5,149,651 | |||||||
| Securitized debt | 3,630,292 | 3,468,258 | |||||||||
| Senior unsecured notes | 1,589,460 | 2,029,078 | |||||||||
| Convertible senior unsecured notes | 365,478 | — | |||||||||
| Junior subordinated notes to subsidiary trust issuing preferred securities | 146,112 | 145,497 | |||||||||
| Notes payable - real estate owned | 254,977 | 222,965 | |||||||||
| Due to borrowers | 26,328 | 33,451 | |||||||||
| Allowance for loss-sharing obligations | 124,145 | 97,579 | |||||||||
| Other liabilities | 281,757 | 281,271 | |||||||||
| Total liabilities | 11,595,415 | 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 - 16,165,771 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 - 186,436,159 and 195,491,855 shares issued and outstanding | 1,864 | 1,955 | |||||||||
| Additional paid-in capital | 2,297,464 | 2,454,312 | |||||||||
| Accumulated deficit | (384,340) | (136,597) | |||||||||
| Total Arbor Realty Trust, Inc. stockholders' equity | 2,548,671 | 2,953,353 | |||||||||
| Noncontrolling interest | 92,922 | 113,800 | |||||||||
| Total equity | 2,641,593 | 3,067,153 | |||||||||
| Total liabilities and equity | $ | 14,237,008 | $ | 14,494,903 | |||||||
Arbor Realty Trust Reports Third Quarter 2026 Results | |||||
October 30, 2026 | Page 10 | ||||
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Statement of Operations Segment Information - (Unaudited)
($ in thousands)
Quarter Ended September 30, 2026 | |||||||||||||||||||||||
| Structured Business | Agency Business | Other (1) | Consolidated | ||||||||||||||||||||
| Interest income | $ | 210,708 | $ | 11,213 | $ | — | $ | 221,921 | |||||||||||||||
| Interest expense | 179,718 | 4,531 | — | 184,249 | |||||||||||||||||||
| Net interest income | 30,990 | 6,682 | — | 37,672 | |||||||||||||||||||
| Other revenue: | |||||||||||||||||||||||
| Gain on sales, including fee-based services, net | — | 10,925 | — | 10,925 | |||||||||||||||||||
| Mortgage servicing rights | — | 11,078 | — | 11,078 | |||||||||||||||||||
| Servicing revenue | — | 44,133 | — | 44,133 | |||||||||||||||||||
| Amortization of MSRs | — | (18,392) | — | (18,392) | |||||||||||||||||||
| Property operating income | 7,873 | — | — | 7,873 | |||||||||||||||||||
| Gain on derivative instruments, net | — | 279 | — | 279 | |||||||||||||||||||
| Other income (loss), net | 2,274 | (1,749) | — | 525 | |||||||||||||||||||
| Total other revenue | 10,147 | 46,274 | — | 56,421 | |||||||||||||||||||
| Other expenses: | |||||||||||||||||||||||
| Employee compensation and benefits | 18,637 | 23,887 | — | 42,524 | |||||||||||||||||||
| Selling and administrative | 8,260 | 7,124 | — | 15,384 | |||||||||||||||||||
| Property operating expenses | 11,804 | — | — | 11,804 | |||||||||||||||||||
| Depreciation and amortization | 5,776 | 92 | — | 5,868 | |||||||||||||||||||
| Impairment loss on real estate owned | 34,050 | — | — | 34,050 | |||||||||||||||||||
| Provision for loss sharing, net | — | 12,625 | — | 12,625 | |||||||||||||||||||
| Provision for credit losses, net | 52,982 | 2,524 | — | 55,506 | |||||||||||||||||||
| Total other expenses | 131,509 | 46,252 | — | 177,761 | |||||||||||||||||||
| (Loss) income before gain on real estate, loss from equity affiliates and income taxes | (90,372) | 6,704 | — | (83,668) | |||||||||||||||||||
| Gain on real estate | 1,574 | — | — | 1,574 | |||||||||||||||||||
| Loss from equity affiliates | (1,494) | — | — | (1,494) | |||||||||||||||||||
| Benefit from income taxes | 390 | 791 | — | 1,181 | |||||||||||||||||||
| Net (loss) income | (89,902) | 7,495 | — | (82,407) | |||||||||||||||||||
| Preferred stock dividends | 10,342 | — | — | 10,342 | |||||||||||||||||||
| Net loss attributable to noncontrolling interest | — | — | (7,395) | (7,395) | |||||||||||||||||||
| Net (loss) income attributable to common stockholders | $ | (100,244) | $ | 7,495 | $ | 7,395 | $ | (85,354) | |||||||||||||||
(1)Includes income (loss) allocated to the noncontrolling interest holders not allocated to the two reportable segments.
Arbor Realty Trust Reports Third Quarter 2026 Results | |||||
October 30, 2026 | Page 11 | ||||
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Balance Sheet Segment Information - (Unaudited)
($ in thousands)
| September 30, 2026 | |||||||||||||||||
| Structured Business | Agency Business | Consolidated | |||||||||||||||
| Assets: | |||||||||||||||||
| Cash and cash equivalents | $ | 117,113 | $ | 322,576 | $ | 439,689 | |||||||||||
| Restricted cash | 213,041 | 37,836 | 250,877 | ||||||||||||||
| Loans and investments, net | 11,764,328 | — | 11,764,328 | ||||||||||||||
| Loans held-for-sale, net | — | 236,824 | 236,824 | ||||||||||||||
| Capitalized mortgage servicing rights, net | — | 315,014 | 315,014 | ||||||||||||||
| Securities held-to-maturity, net | — | 156,211 | 156,211 | ||||||||||||||
| Investments in equity affiliates | 72,060 | — | 72,060 | ||||||||||||||
| Real estate owned, net | 491,170 | — | 491,170 | ||||||||||||||
| Goodwill and other intangible assets | 12,500 | 73,178 | 85,678 | ||||||||||||||
| Other assets | 323,247 | 101,910 | 425,157 | ||||||||||||||
| Total assets | $ | 12,993,459 | $ | 1,243,549 | $ | 14,237,008 | |||||||||||
| Liabilities: | |||||||||||||||||
| Debt obligations | $ | 10,940,366 | $ | 222,819 | $ | 11,163,185 | |||||||||||
| Allowance for loss-sharing obligations | — | 124,145 | 124,145 | ||||||||||||||
| Other liabilities | 218,399 | 89,686 | 308,085 | ||||||||||||||
| Total liabilities | $ | 11,158,765 | $ | 436,650 | $ | 11,595,415 | |||||||||||
Arbor Realty Trust Reports Third Quarter 2026 Results | |||||
October 30, 2026 | Page 12 | ||||
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Reconciliation of Distributable (Loss) Earnings to GAAP Net (Loss) Income - (Unaudited)
($ in thousands—except share and per share data)
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Net (loss) income attributable to common stockholders | $ | (85,354) | $ | 38,463 | $ | (122,068) | $ | 92,852 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Net (loss) income attributable to noncontrolling interest | (7,395) | 3,211 | (10,507) | 7,828 | |||||||||||||||||||
| Income from mortgage servicing rights | (11,078) | (15,538) | (32,849) | (34,598) | |||||||||||||||||||
| Deferred tax benefit | (2,179) | (1,791) | (6,970) | (3,532) | |||||||||||||||||||
| Amortization and write-offs of MSRs | 20,082 | 18,906 | 60,515 | 59,595 | |||||||||||||||||||
| Depreciation and amortization | 6,813 | 6,089 | 21,503 | 17,240 | |||||||||||||||||||
| Loss on extinguishment of debt | — | — | — | 2,319 | |||||||||||||||||||
| Provision for credit losses, net | 46,783 | 18,381 | 66,437 | 27,572 | |||||||||||||||||||
| Loss (gain) on derivative instruments, net | 1,943 | 2,110 | 2,763 | (3,261) | |||||||||||||||||||
| Loss on real estate | 20,392 | 369 | 38,310 | 5,035 | |||||||||||||||||||
| Stock-based compensation | 3,111 | 2,738 | 12,140 | 11,284 | |||||||||||||||||||
| Distributable (loss) earnings (1) | $ | (6,882) | $ | 72,938 | $ | 29,274 | $ | 182,334 | |||||||||||||||
| Diluted weighted average shares outstanding (1) | 185,084,602 | 210,517,762 | 201,632,871 | 208,807,751 | |||||||||||||||||||
| Diluted distributable (loss) earnings per share (1) | $ | (0.04) | $ | 0.35 | $ | 0.15 | $ | 0.87 | |||||||||||||||
(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.
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 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.
Arbor Realty Trust Reports Third Quarter 2026 Results | |||||
October 30, 2026 | Page 13 | ||||
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.