Arbor Realty Trust Reports Second Quarter 2025 Results and Declares Dividend of $0.30 per Share
Company Highlights:
GAAP net income of $0.12 per diluted common share
Distributable earnings1 of $0.25, or $0.30 per diluted common share, excluding $10.5 million of realized losses from the sale of two real estate owned properties
Declares cash dividend on common stock of $0.30 per share
Significant improvements to the right side of our balance sheet:
Closed our first build-to-rent collateralized securitization vehicle totaling $801.9 million with improved terms over our warehouse lines
In July 2025, issued $500.0 million of 7.875% senior unsecured notes due 2030 to repay $287.5 million of convertible senior notes and add ~$200 million of liquidity
Servicing portfolio of ~$33.76 billion, agency loan originations of $857.1 million
Structured loan portfolio of ~$11.61 billion, originations of $716.5 million and runoff of $519.7 million
Foreclosed on six loans totaling $188.2 million and sold four real estate owned properties totaling $114.5 million
UNIONDALE, N.Y., Aug. 01, 2025 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE:ABR), today announced financial results for the second quarter ended June 30, 2025. Arbor reported net income for the quarter of $24.0 million, or $0.12 per diluted common share, compared to net income of $47.4 million, or $0.25 per diluted common share for the quarter ended June 30, 2024. Distributable earnings for the quarter was $52.1 million, or $0.25 per diluted common share, compared to $91.6 million, or $0.45 per diluted common share for the quarter ended June 30, 2024.
Agency Business
Loan Origination Platform
Agency Loan Volume (in thousands)
Quarter Ended
June 30, 2025
March 31, 2025
Fannie Mae
$
683,206
$
357,811
Freddie Mac
150,339
178,020
Private Label
—
44,925
FHA
—
16,041
SFR-Fixed Rate
23,552
9,111
Total Originations
$
857,097
$
605,908
Total Loan Sales
$
807,020
$
730,854
Total Loan Commitments
$
852,766
$
645,401
For the quarter ended June 30, 2025, the Agency Business generated revenues of $64.5 million, compared to $62.9 million for the first quarter of 2025. Gain on sales, including fee-based services, net was $13.7 million for the quarter, reflecting a margin of 1.69%, compared to $12.8 million and 1.75% for the first quarter of 2025. Income from mortgage servicing rights was $10.9 million for the quarter, reflecting a rate of 1.28% as a percentage of loan commitments, compared to $8.1 million and 1.26% for the first quarter of 2025.
At June 30, 2025, loans held-for-sale was $361.4 million, with financing associated with these loans totaling $329.5 million.
Fee-Based Servicing Portfolio
The Company's fee-based servicing portfolio totaled $33.76 billion at June 30, 2025. Servicing revenue, net was $27.4 million for the quarter and consisted of servicing revenue of $45.2 million, net of amortization of mortgage servicing rights totaling $17.8 million.
Fee-Based Servicing Portfolio ($ in thousands)
June 30, 2025
March 31, 2025
UPB
Wtd. Avg. Fee (bps)
Wtd. Avg. Life (years)
UPB
Wtd. Avg. Fee (bps)
Wtd. Avg. Life (years)
Fannie Mae
$
22,999,772
45.8
5.9
$
22,683,885
46.2
6.2
Freddie Mac
6,100,091
21.3
6.5
6,123,074
21.4
6.6
Private Label
2,599,971
18.7
5.0
2,603,122
18.7
5.3
FHA
1,497,551
14.0
19.9
1,519,675
14.0
19.0
SFR-Fixed Rate
287,065
20.0
4.2
276,839
20.1
4.1
Bridge
278,116
10.4
2.6
278,293
10.4
2.8
Total
$
33,762,566
37.4
6.5
$
33,484,888
37.5
6.7
Loans sold under the Fannie Mae program contain an obligation to partially guarantee the performance of the loan ("loss-sharing obligations") and includes $35.0 million for the fair value of the guarantee obligation undertaken at June 30, 2025. The Company recorded a $4.0 million net provision for loss sharing associated with CECL for the second quarter of 2025. At June 30, 2025, the Company's total CECL allowance for loss-sharing obligations was $54.8 million, representing 0.24% of the Fannie Mae servicing portfolio.
Structured Business
Portfolio and Investment Activity
Structured Portfolio Activity ($ in thousands)
Quarter Ended
June 30, 2025
March 31, 2025
UPB
%
UPB
%
Bridge:
Multifamily
$
103,300
14
%
$
367,750
49
%
SFR
530,986
74
%
356,294
48
%
634,286
88
%
724,044
97
%
.
Mezzanine/Preferred Equity
6,999
1
%
4,440
1
%
Construction - Multifamily
75,259
11
%
18,637
2
%
Total Originations
$
716,544
100
%
$
747,121
100
%
Number of Loans Originated
19
20
Commitments:
SFR
$
232,384
$
162,400
Construction - Multifamily
173,000
92,000
Total Commitments
$
405,384
$
254,400
Loan Runoff
$
519,709
$
421,941
Structured Portfolio ($ in thousands)
June 30, 2025
March 31, 2025
UPB
%
UPB
%
Bridge:
Multifamily
$
8,404,597
72
%
$
8,637,773
75
%
SFR
2,531,841
22
%
2,247,817
20
%
Other
169,025
2
%
171,952
1
%
11,105,463
96
%
11,057,542
96
%
Mezzanine/Preferred Equity
400,634
3
%
405,770
4
%
Construction - Multifamily
100,070
1
%
23,005
<1
%
SFR Permanent
3,068
<1
%
3,076
<1
%
Total Portfolio
$
11,609,235
100
%
$
11,489,393
100
%
At June 30, 2025, the loan and investment portfolio's unpaid principal balance ("UPB"), excluding loan loss reserves, was $11.61 billion, with a weighted average interest rate of 7.03%, compared to $11.49 billion and 6.94% at March 31, 2025. Including certain fees earned and costs associated with the loan and investment portfolio, the weighted average interest rate was 7.86% at June 30, 2025, compared to 7.85% at March 31, 2025.
The average balance of the Company's loan and investment portfolio during the second quarter of 2025, excluding loan loss reserves, was $11.53 billion with a weighted average yield of 7.95%, compared to $11.39 billion and 8.15% for the first quarter of 2025. The decrease in yield was primarily due to non-performing and foreclosed on loans in the second quarter of 2025.
During the second quarter of 2025, the Company recorded a $16.1 million net provision for loan losses associated with CECL. At June 30, 2025, the Company's total allowance for loan losses was $243.3 million. The Company had nineteen non-performing loans with a UPB of $471.8 million, before related loan loss reserves of $36.4 million, compared to twenty-three loans with a UPB of $511.1 million, before loan loss reserves of $35.3 million at March 31, 2025.
In addition, at June 30, 2025, the Company had three loans with a total UPB of $56.9 million that were less than 60 days past due classified as non-accrual, compared to five loans with a total UPB of $142.8 million (before related loan loss reserves of $7.3 million) at March 31, 2025. Interest income on these loans is only being recorded to the extent cash is received.
During the second quarter of 2025, the Company modified eight loans to borrowers experiencing financial difficulty with a total UPB of $251.9 million, primarily all of which had borrowers investing additional capital to recapitalize their deals. Six of these loans with a total UPB of $144.9 million, contained interest rates based on pricing over SOFR ranging from 3.25% to 4.50% and were modified to provide temporary rate relief through a pay and accrual feature. At June 30, 2025, these modified loans had a weighted average pay rate of 5.50% and a weighted average accrual rate of 2.78%. In addition, of the total modified loans for the second quarter, $47.7 million were less than 60 days past due and $11.2 million were non-performing at March 31, 2025, and are now current in accordance with their modified terms.
Financing Activity
The balance of debt that finances the Company's loan and investment portfolio at June 30, 2025 was $9.61 billion with a weighted average interest rate including fees of 6.88%, as compared to $9.49 billion and a rate of 6.82% at March 31, 2025.
The average balance of debt that finances the Company's loan and investment portfolio for the second quarter of 2025 was $9.52 billion, as compared to $9.42 billion for the first quarter of 2025. The average cost of borrowings for the second quarter of 2025 was 6.99%, compared to 6.96% for the first quarter of 2025.
In May 2025, the Company completed its first build-to-rent collateralized securitization vehicle totaling $801.9 million, of which $682.6 million consisted of investment grade notes, with the Company retaining subordinate interests in the vehicle of $119.3 million and $41.0 million of the investment grade notes. The vehicle included $50 million in ramp-up capacity for acquiring additional loans within 180 days of closing, a two-year replenishment period and a $200 million senior revolving note to support construction advances and future reinvestment during the replenishment period. The investment grade-rated notes placed with investors had an initial weighted average spread of 2.48% over SOFR, excluding fees and transaction costs.
In July 2025, the Company issued $500.0 million of its 7.875% senior unsecured notes due July 2030 through a private offering. The Company is using the net proceeds of this offering to pay down debt and for general corporate purposes.
Dividend
The Company announced today that its Board of Directors has declared a quarterly cash dividend of $0.30 per share of common stock for the quarter ended June 30, 2025. The dividend is payable on August 29, 2025 to common stockholders of record on August 15, 2025.
Earnings Conference Call
The Company will host a conference call today at 10:00 a.m. Eastern Time. A live webcast and replay of the conference call will be available at www.arbor.com in the investor relations section of the Company's website, or you can access the call telephonically at least ten minutes prior to the conference call. The dial-in numbers are (800) 343-4136 for domestic callers and (203) 518-9843 for international callers. Please use participant passcode ABRQ225 when prompted by the operator.
A telephonic replay of the call will be available until August 8, 2025. The replay dial-in numbers are (800) 839-8531 for domestic callers and (402) 220-6074 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, 2024 and its other reports filed with the SEC. Such forward-looking statements speak only as of the date of this press release. Arbor expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Arbor's expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.
Notes
During the quarterly earnings conference call, the Company may discuss non-GAAP financial measures as defined by SEC Regulation G. In addition, the Company has used non-GAAP financial measures in this press release. A supplemental schedule of non-GAAP financial measures and the comparable GAAP financial measure can be found on the last two pages of this release.
Contact:
Arbor Realty Trust, Inc.Investor
ARBOR REALTY TRUST, INC. AND SUBSIDIARIESConsolidated Statements of Income - (Unaudited)($ in thousands—except share and per share data)
Quarter Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Interest income
$
240,303
$
297,188
$
480,997
$
618,480
Interest expense
171,578
209,227
336,829
426,903
Net interest income
68,725
87,961
144,168
191,577
Other revenue:
Gain on sales, including fee-based services, net
13,658
17,448
26,439
34,114
Mortgage servicing rights
10,930
14,534
19,061
24,733
Servicing revenue, net
27,437
29,910
53,040
61,436
Property operating income
5,452
