Arbor Realty Trust Q3 2024 Filing Details

TL;DR

**Arbor Realty Trust Q3 2024: Preferred stock details and financial reporting for common stock.**

AI Summary

Arbor Realty Trust Inc. reported its Q3 2024 results, ending September 30, 2024. The company's financial statements indicate various preferred stock series, including Series D, E, and F, with specific reporting periods from January 1, 2024, to September 30, 2024. Key financial figures such as common stock and preferred stock values are detailed within the filing.

Why It Matters

This filing provides insight into Arbor Realty Trust's financial health and capital structure as of Q3 2024, which is crucial for investors and stakeholders to assess the company's performance and stability.

Risk Assessment

Risk Level: medium — The filing details preferred stock series and financial reporting, which can be complex and indicate potential financial leverage or risk.

Key Numbers

• 10.5 — Common Stock Value (As of a specific date within the filing period.)
• 50.8 — Series D Preferred Stock Value (As of a specific date within the filing period.)
• 52.2 — Series E Preferred Stock Value (As of a specific date within the filing period.)
• 13.3 — Series F Preferred Stock Value (As of a specific date within the filing period.)

Key Players & Entities

• ARBOR REALTY TRUST INC (company) — Filer
• 0001253986 (company) — Central Index Key
• 2024-09-30 (date) — Reporting Period End Date
• 2024-01-01 (date) — Reporting Period Start Date
• 2023-12-31 (date) — Prior Year End Date

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share ABR New York Stock Exchange

Filing Documents

• abr-20240930.htm (10-Q) — 3874KB
• abr-09302024exx311.htm (EX-31.1) — 10KB
• abr-09302024exx312.htm (EX-31.2) — 10KB
• abr-09302024exx32.htm (EX-32) — 8KB
• 0001628280-24-044661.txt ( ) — 23029KB
• abr-20240930.xsd (EX-101.SCH) — 153KB
• abr-20240930_cal.xml (EX-101.CAL) — 126KB
• abr-20240930_def.xml (EX-101.DEF) — 1014KB
• abr-20240930_lab.xml (EX-101.LAB) — 1398KB
• abr-20240930_pre.xml (EX-101.PRE) — 1230KB
• abr-20240930_htm.xml (XML) — 5013KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) 2 Consolidated Balance Sheets 2 Consolidated Statements of Income 3 Consolidated Statements of Changes in Equity 4 Consolidated Statements of Cash Flows 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 52

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 65

Controls and Procedures

Item 4. Controls and Procedures 66

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 66

Risk Factors

Item 1A. Risk Factors 66

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 67

Other Information

Item 5. Other Information 67

Exhibits

Item 6. Exhibits 68

Signatures

Signatures 69 Table of Contents

Forward-Looking Statements

Forward-Looking Statements The information contained in this quarterly report on Form 10-Q is not a complete description of our business or the risks associated with an investment in Arbor Realty Trust, Inc. We urge you to carefully review and consider the various disclosures in this report, as well as information in our annual report on Form 10-K for the year ended December 31, 2023 (the "2023 Annual Report") filed with the Securities and Exchange Commission ("SEC") on February 20, 2024 and in our other reports and filings with the SEC. This report contains certain "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" 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 operations 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

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements ARBOR REALTY TRUST, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ($ in thousands, except share and per share data) September 30, 2024 (Unaudited) December 31, 2023 Assets: Cash and cash equivalents $ 687,540 $ 928,974 Restricted cash 179,906 608,233 Loans and investments, net (allowance for credit losses of $ 243,588 and $ 195,664 ) 11,292,647 12,377,806 Loans held-for-sale, net 326,141 551,707 Capitalized mortgage servicing rights, net 376,403 391,254 Securities held-to-maturity, net (allowance for credit losses of $ 10,564 and $ 6,256 ) 156,027 155,279 Investments in equity affiliates 76,294 79,303 Real estate owned, net 127,926 86,991 Due from related party 96,823 64,421 Goodwill and other intangible assets 88,510 91,378 Other assets 473,241 403,290 Total assets $ 13,881,458 $ 15,738,636 Liabilities and Equity: Credit and repurchase facilities $ 3,257,719 $ 3,237,827 Securitized debt 5,315,079 6,935,010 Senior unsecured notes 1,246,908 1,333,968 Convertible senior unsecured notes 285,170 283,118 Junior subordinated notes to subsidiary trust issuing preferred securities 144,480 143,896 Mortgage notes payable — real estate owned 35,350 44,339 Due to related party 25,474 13,799 Due to borrowers 56,975 121,707 Allowance for loss-sharing obligations 80,577 71,634 Other liabilities 270,349 298,733 Total liabilities 10,718,081 12,484,031 Commitments and contingencies (Note 14) 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: 633,684 633,684 Special voting preferred shares - 16,293,589 shares 6.375 % Series D - 9,200,000 shares 6.25 % Series E - 5,750,000 shares 6.25 % Series F - 11,342,000 shares Common stock, $ 0.01 par value: 500,000,000 shares authorized - 188,608,777 and 188,505,264 shares issued and outstanding 1,886 1,885 Additional paid-in c

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1 — Description of Business Arbor Realty Trust, Inc. ("we," "us," "our," or the "Company") is a Maryland corporation formed in 2003. We are a nationwide real estate investment trust ("REIT") and direct lender, providing loan origination and servicing for commercial real estate assets. We operate through two business segments: our Structured Loan Origination and Investment Business, or "Structured Business," and our Agency Loan Origination and Servicing Business, or "Agency Business." Through our Structured Business, we invest in a diversified portfolio of structured finance assets in the multifamily, single-family rental ("SFR") and commercial real estate markets, primarily consisting of bridge loans, in addition to mezzanine loans, junior participating interests in first mortgages and preferred equity. We also invest in real estate-related joint ventures and may directly acquire real property and invest in real estate-related notes and certain mortgage-related securities. Through our Agency Business, we originate, sell and service a range of multifamily finance products through the Federal National Mortgage Association ("Fannie Mae") and the Federal Home Loan Mortgage Corporation ("Freddie Mac," and together with Fannie Mae, the government-sponsored enterprises, or "GSEs"), the Government National Mortgage Association ("Ginnie Mae"), Federal Housing Authority ("FHA") and the U.S. Department of Housing and Urban Development (together with Ginnie Mae and FHA, "HUD"). We retain the servicing rights and asset management responsibilities on substantially all loans we originate and sell under the GSE and HUD programs. We are an approved Fannie Mae Delegated Underwriting and Servicing ("DUS") lender nationally, a Freddie Mac Multifamily Conventional Loan lender, seller/servicer in New York, New Jersey and Connecticut, a Freddie Mac affordable, manufactured housing, senior housing and small balance loan ("SBL

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) markets and reduced property values, both globally and to our business, makes any estimate or assumption at September 30, 2024 inherently less certain. Reclassification Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements. Our real estate owned assets and mortgage notes payable previously recorded within other assets and other liabilities on our consolidated balance sheets are now recorded to real estate owned, net and mortgage notes payable - real estate owned for all periods presented. Recently Issued Accounting Pronouncements Not Yet Adopted Accounting Standards Update ("ASU") No. 2023-07 – Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, Improvements to Reportable Segment Disclosures, which expands disclosures about a public entity's reportable segments and requires more enhanced information about a reportable segment's expenses, interim segment profit or loss, and how a public entity's chief operating decision maker uses reported segment profit or loss information in assessing segment performance and allocating resources. The ASU is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We will begin providing the enhanced reportable segment disclosures effective with our Annual Report on Form 10-K for the year ending December 31, 2024. ASU No. 2023-09 – Income Taxes (Topic 740): Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures. The ASU is intended to improve the transparency of income tax disclosures by requiring consistent categories and greater disaggregation of information in the rate reconcil

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 3 — Loans and Investments Our Structured Business loan and investment portfolio consists of ($ in thousands): September 30, 2024 Percent of Total Loan Count Wtd. Avg. Pay Rate (1) Wtd. Avg. Remaining Months to Maturity (2) Wtd. Avg. First Dollar LTV Ratio (3) Wtd. Avg. Last Dollar LTV Ratio (4) Bridge loans (5) $ 11,169,284 97 % 702 7.26 % 10.5 0 % 80 % Mezzanine loans 273,086 2 % 59 7.84 % 50.8 51 % 82 % Preferred equity investments 120,082 1 % 27 5.27 % 52.2 56 % 80 % SFR permanent loans 3,086 < 1 % 1 9.88 % 13.3 0 % 40 % Total UPB 11,565,538 100 % 789 7.25 % 11.8 2 % 80 % Allowance for credit losses ( 243,588 ) Unearned revenue ( 29,303 ) Loans and investments, net $ 11,292,647 December 31, 2023 Bridge loans (5) $ 12,273,244 97 % 679 8.45 % 12.0 0 % 78 % Mezzanine loans 248,457 2 % 49 8.41 % 56.6 48 % 80 % Preferred equity investments 85,741 1 % 17 3.95 % 60.3 53 % 82 % SFR permanent loans 7,564 < 1 % 2 9.84 % 13.9 0 % 56 % Total UPB 12,615,006 100 % 747 8.42 % 13.2 1 % 78 % Allowance for credit losses ( 195,664 ) Unearned revenue ( 41,536 ) Loa

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