アーバーリアルティ社は2024年第三四半期の結果を報告し、株ごとに0.43ドルの配当を宣言しました
企業のハイライト：
•希薄化後の1株当たり一株当たりのGAAP当期純利益は0.31ドルで、配当可能利益は0.43ドルです1
•普通株式に対する株当たり$0.43の現金配当を宣言
•2023年、会社の債務対資本比率が4：1から3：1に改善し、2024年第3四半期にはピーク時の25%を削減しました。2
•約6億ドルの現金と流動性3
•「11億ドルの代行ローン発生；約330.1億ドルのサービスポートフォリオで、前四半期から2%増の2Q24年比で10%増加」
•25850万ドルの構造化ローンの発生、52130万ドルの精算、および約115.7億ドルのポートフォリオ
•2024年10月、9.00%の優先債/シニア債を2027年満期の10000万ドルを発行しました
ユニオンデール、NY、2024年11月1日‐‐Arbor Realty Trust、Inc.（NYSE：abr）は、2024年9月30日終了の第3四半期の財務成績を発表しました。当期純利益は、四半期に$5820万、または希薄化後の1株当たり$0.31となり、2023年9月30日終了の四半期に$7790万、または希薄化後の1株当たり$0.41と比較しています。四半期の配当可能利益は、$8820万、または希薄化後の1株当たり$0.43であり、2023年9月30日終了の四半期の$11220万、または希薄化後の1株当たり$0.55と比較しています。
アーバーリアルティ社は2024年第三四半期の結果を報告し、株ごとに0.43ドルの配当を宣言しました | |||||
2024年11月1日 | ページ2 | ||||
代理店ビジネス
ローン原点プラットフォーム
| 千の代理店ローン出来高 | |||||||||||
| 四半期報告書（2023年） | |||||||||||
| 2024年9月30日 | 2024年6月30日 | ||||||||||
| ファニーメイ | $ | 616,211 | $ | 742,724 | |||||||
| フレディ・マック | 378,809 | 346,821 | |||||||||
| プライベートラベル | 74,162 | 34,714 | |||||||||
| FHA | 27,457 | — | |||||||||
| SFR-固定金利 | — | 24,996 | |||||||||
| 総融資残高 | $ | 1,096,639 | $ | 1,149,255 | |||||||
| 総貸出営業高 | $ | 1,118,977 | $ | 1,135,287 | |||||||
| 全貸付金額 | $ | 1,056,490 | $ | 1,099,713 | |||||||
2024年9月30日までの四半期、エージェンシービジネスの売上高は7740万ドルで、2024年第2四半期の7680万ドルと比較しています。売上高に対する獲得額、手数料ベースのサービスを含む純利益は、四半期で1860万ドルで、マージンは1.67%です。これは2024年第2四半期の1740万ドルと1.54%と比較されます。住宅ローンサービス権からの収益は、四半期で1320万ドルで、ローンのコミットメントの割合として1.25%を反映しています。これは2024年第2四半期の1450万ドルと1.32%と比較されます。
2024年9月30日時点で、売却用保有ローン残高は326億1000万ドルで、これらのローンに関連する融資は319億4000万ドルでした。
有料サービスポートフォリオ
会社の手数料ベースのサービスポートフォリオは2024年9月30日時点で3億3010万ドルです。四卩のサービス売上高は3100万ドルで、サービス売上高は4840万ドル、住宅ローンサービス権の償却額を差し引いた净額が1730万ドルです。
アーバーリアルティ社は2024年第三四半期の結果を報告し、株ごとに0.43ドルの配当を宣言しました | |||||
2024年11月1日 | ページ3 | ||||
| 千ドル単位の有料サービスポートフォリオ | |||||||||||||||||||||||||||||||||||
| 2024年9月30日 | 2024年6月30日 | ||||||||||||||||||||||||||||||||||
| 未決済原則残高 | ウェイト平均手数料（ベーシスポイント） | ウェイト平均寿命（年） | 未決済原則残高 | ウェイト平均手数料（ベーシスポイント） | 平均寿命（年） | ||||||||||||||||||||||||||||||
| ファニーメイ | $ | 22,526,022 | 46.6 | 6.6 | $ | 22,114,193 | 46.7 | 7.0 | |||||||||||||||||||||||||||
| フレディ・マック | 5,820,026 | 21.9 | 7.1 | 5,587,178 | 22.7 | 7.4 | |||||||||||||||||||||||||||||
| プライベートラベル | 2,619,485 | 18.7 | 5.8 | 2,547,308 | 18.9 | 6.0 | |||||||||||||||||||||||||||||
| FHA | 1,390,766 | 14.2 | 18.9 | 1,369,507 | 14.4 | 18.9 | |||||||||||||||||||||||||||||
| ブリッジ | 380,379 | 10.9 | 3.0 | 380,547 | 10.9 | 3.4 | |||||||||||||||||||||||||||||
| SFR固定金利 | 275,081 | 20.1 | 4.6 | 279,962 | 20.1 | 4.9 | |||||||||||||||||||||||||||||
| 総計 | $ | 33,011,759 | 38.0 | 7.1 | $ | 32,278,695 | 38.4 | 7.5 | |||||||||||||||||||||||||||
ファニーメイ・プログラムの下で売却されたローンには、ローンの業績を一部保証する義務（「損失分担義務」）が含まれており、2024年9月30日時点で引き受けられた保証義務の公正価値は3480万ドルです。同社は2024年第3四半期にCECLに関連する損失分担に対する320万ドルの純設備を計上しました。2024年9月30日時点で、同社の損失分担義務に対する総CECL引当金は4580万ドルであり、ファニーメイのサービスポートフォリオの0.20%を表しています。
アーバーリアルティ社は2024年第三四半期の結果を報告し、株ごとに0.43ドルの配当を宣言しました | |||||
2024年11月1日 | ページ4 | ||||
構造化されたビジネス
ポートフォリオおよび投資活動
| 構造化ポートフォリオ活動（千ドル単位） | |||||||||||||||||||||||
| 四半期報告期間終了 | |||||||||||||||||||||||
| 2024年9月30日 | 2024年6月30日 | ||||||||||||||||||||||
| 未決済原則残高 | % | 未決済原則残高 | % | ||||||||||||||||||||
| ブリッジ： | |||||||||||||||||||||||
| マルチファミリー | $ | 14,500 | 6 | % | $ | 19,650 | 9 | % | |||||||||||||||
| SFR | 239,064 | 92 | % | 185,500 | 82 | % | |||||||||||||||||
| 土地 | — | — | % | 10,350 | 4 | % | |||||||||||||||||
| 253,564 | 98 | % | 215,500 | 95 | % | ||||||||||||||||||
| . | |||||||||||||||||||||||
| メザニン/優先株 | 4,900 | 2 | % | 11,684 | 5 | % | |||||||||||||||||
| 総融資残高 | $ | 258,464 | 100 | % | $ | 227,184 | 100 | % | |||||||||||||||
| 発生ローン数 | 38 | 45 | |||||||||||||||||||||
| コミットメント： | |||||||||||||||||||||||
| SFR | $ | 374,070 | $ | 277,260 | |||||||||||||||||||
| 建設 - マルチファミリー | 47,000 | — | |||||||||||||||||||||
| 総契約額 | $ | 421,070 | $ | 277,260 | |||||||||||||||||||
| 融資の完済 | $ | 521,341 | $ | 629,641 | |||||||||||||||||||
| 構造化ポートフォリオ（千ドル単位） | |||||||||||||||||||||||
| 2024年9月30日 | 2024年6月30日 | ||||||||||||||||||||||
| 未決済原則残高 | % | 未決済原則残高 | % | ||||||||||||||||||||
| ブリッジ： | |||||||||||||||||||||||
| マルチファミリー | $ | 9,208,954 | 80 | % | $ | 9,679,128 | 82 | % | |||||||||||||||
| SFR | 1,783,475 | 15 | % | 1,622,269 | 14 | % | |||||||||||||||||
| 他 | 176,855 | 2 | % | 176,855 | 1 | % | |||||||||||||||||
| 11,169,284 | 97 | % | 11,478,252 | 97 | % | ||||||||||||||||||
| Mezzanine/Preferred Equity | 393,168 | 3 | % | 389,981 | 3 | % | |||||||||||||||||
| SFR Permanent | 3,086 | <1% | 4,975 | <1% | |||||||||||||||||||
| Total Portfolio | $ | 11,565,538 | 100 | % | $ | 11,873,208 | 100 | % | |||||||||||||||
アーバーリアルティ社は2024年第三四半期の結果を報告し、株ごとに0.43ドルの配当を宣言しました | |||||
2024年11月1日 | ページ5 | ||||
2024年9月30日時点におけるローンおよび投資ポートフォリオの未払元本残高（「UPB」）、債務貸借引当金を除く、は115.7億ドルで、加重平均利子率は7.25%で、2024年6月30日時点の118.7億ドルと7.79%と比較しています。特定の手数料およびローンおよび投資ポートフォリオに関連する費用を含めると、2024年9月30日時点における加重平均利子率は8.16%で、2024年6月30日時点の8.60%と比較しています。この金利の低下は、2024年第3四半期にSOFRレートが減少したことに主に起因しています。
2024年第3四半期の会社の貸出および投資ポートフォリオの平均残高は、貸出損失準備金を除いて118億ドルで、加重平均利回りは9.04%でした。これに対し、2024年第2四半期は121.5億ドルで8.99%でした。
2024年第3四半期に、企業はCECLに関連する貸倒引当金として1480万ドルの純額引当金を計上しました。2024年9月30日時点で、企業の貸倒引当金合計額は2億4360万ドルでした。2024年6月30日時点の関連ローンロスリザーブを除いた62540万ドルのUPbを持つ26件の不良債権があり、中で3700万ドルのローンロスリザーブがありました。これは、関連ローンロスリザーブが2810万ドルの24件のUPbが67620万ドルのローンと比較されます。
さらに、2024年9月30日時点で、当社は過去60日未満の未払残高（UPb）が総額31920万ドル（関連ローン損失備え前100万ドル）の10件のローンを持っており、2024年6月30日時点の総額36790万ドルの14件のローンと比較しています。これらのローンに対する利息収入は、現金が受領される範囲でのみ記録されています。
2024年第3四半期に、当社は総UPbが11.5億ドルの24件のローンを修正しました。このうち18件のローンは、71070万ドルのUPb合計を持ち、3.25%から4.85%のSOFRに基づく金利を含み、1件のローンは7.00%の固定金利でした。ローン修正条件では、借り手が一時的な金利の緩和を得るために追加の資本を投資し、私たちが支払いと発生の特典を通じて提供しました。2024年9月30日時点で、これらの修正されたローンの加重平均支払い金利は5.91%、加重平均発生金利は2.50%でした。これらのうち8750万ドル相当のローンの一部は、60日以内の遅延があり、6月30日時点で15180万ドルが不良となっていましたが、修正された条件に従って現在は現在の状態です。
Financing Activity
The balance of debt that finances the Company’s loan and investment portfolio at September 30, 2024 was $9.97 billion with a weighted average interest rate including fees of 7.18%, as compared to $10.26 billion and a rate of 7.53% at June 30, 2024.
The average balance of debt that finances the Company’s loan and investment portfolio for the third quarter of 2024 was $10.09 billion, as compared to $10.81 billion for the second quarter of 2024. The average cost of borrowings for the third quarter of 2024 was 7.58%, compared to 7.54% for the second quarter of 2024.
In October 2024, the Company issued $100.0 million of its 9.00% senior unsecured notes due October 2027 through a private offering. The Company expects that the net proceeds of this offering will be used to pay down debt and for general corporate purposes.
Arbor Realty Trust Reports Third Quarter 2024 Results and Declares Dividend of $0.43 per Share | |||||
November 1, 2024 | Page 6 | ||||
Dividend
The Company announced today that its Board of Directors has declared a quarterly cash dividend of $0.43 per share of common stock for the quarter ended September 30, 2024. The dividend is payable on November 27, 2024 to common stockholders of record on November 15, 2024.
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) 579-2543 for domestic callers and (785) 424-1699 for international callers. Please use participant passcode ABRQ324 when prompted by the operator.
A telephonic replay of the call will be available until November 8, 2024. The replay dial-in numbers are (800) 839-5493 for domestic callers and (402) 220-2552 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, 2023 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.
Arbor Realty Trust Reports Third Quarter 2024 Results and Declares Dividend of $0.43 per Share | |||||
November 1, 2024 | Page 7 | ||||
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 page of this release.
2.Debt to equity ratio reflects junior subordinated notes as equity.
3.Amounts reflect approximate balances as of October 30, 2024.
Contact: | Arbor Realty Trust, Inc. Paul Elenio, Chief Financial Officer 516-506-4422 pelenio@arbor.com | ||||
Arbor Realty Trust Reports Third Quarter 2024 Results and Declares Dividend of $0.43 per Share | |||||
November 1, 2024 | Page 8 | ||||
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Consolidated Statements of Income - (Unaudited)
($ in thousands—except share and per share data)
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Interest income | $ | 286,522 | $ | 336,474 | $ | 905,002 | $ | 1,000,159 | |||||||||||||||
| Interest expense | 197,710 | 229,180 | 624,613 | 675,749 | |||||||||||||||||||
| Net interest income | 88,812 | 107,294 | 280,389 | 324,410 | |||||||||||||||||||
| Other revenue: | |||||||||||||||||||||||
| Gain on sales, including fee-based services, net | 18,638 | 18,619 | 52,752 | 55,795 | |||||||||||||||||||
| Mortgage servicing rights | 13,195 | 14,109 | 37,928 | 48,769 | |||||||||||||||||||
| Servicing revenue, net | 31,142 | 35,463 | 92,577 | 97,376 | |||||||||||||||||||
| Property operating income | 1,507 | 1,450 | 4,521 | 4,261 | |||||||||||||||||||
| Gain (loss) on derivative instruments, net | 822 | (421) | (4,711) | (3,582) | |||||||||||||||||||
| Other income, net | 2,537 | 173 | 6,955 | 5,099 | |||||||||||||||||||
| Total other revenue | 67,841 | 69,393 | 190,022 | 207,718 | |||||||||||||||||||
| Other expenses: | |||||||||||||||||||||||
| Employee compensation and benefits | 44,881 | 39,810 | 135,411 | 123,518 | |||||||||||||||||||
| Selling and administrative | 13,141 | 12,367 | 39,897 | 38,574 | |||||||||||||||||||
| Property operating expenses | 1,686 | 1,479 | 4,948 | 4,227 | |||||||||||||||||||
| Depreciation and amortization | 1,944 | 2,286 | 6,937 | 7,297 | |||||||||||||||||||
| Provision for loss sharing (net of recoveries) | 3,180 | 1,679 | 7,787 | 12,528 | |||||||||||||||||||
| Provision for credit losses (net of recoveries) | 16,220 | 18,652 | 64,903 | 55,047 | |||||||||||||||||||
| Total other expenses | 81,052 | 76,273 | 259,883 | 241,191 | |||||||||||||||||||
| Income before extinguishment of debt, sale of real estate, income from equity affiliates and income taxes | 75,601 | 100,414 | 210,528 | 290,937 | |||||||||||||||||||
| Loss on extinguishment of debt | — | (314) | (412) | (1,561) | |||||||||||||||||||
| Gain on sale of real estate | — | — | 3,813 | — | |||||||||||||||||||
| Income from equity affiliates | 3,177 | 809 | 7,388 | 20,694 | |||||||||||||||||||
| Provision for income taxes | (5,233) | (5,854) | (12,726) | (19,436) | |||||||||||||||||||
| Net income | 73,545 | 95,055 | 208,591 | 290,634 | |||||||||||||||||||
| Preferred stock dividends | 10,342 | 10,342 | 31,027 | 31,027 | |||||||||||||||||||
| Net income attributable to noncontrolling interest | 5,028 | 6,789 | 14,119 | 21,200 | |||||||||||||||||||
| Net income attributable to common stockholders | $ | 58,175 | $ | 77,924 | $ | 163,445 | $ | 238,407 | |||||||||||||||
| Basic earnings per common share | $ | 0.31 | $ | 0.42 | $ | 0.87 | $ | 1.30 | |||||||||||||||
| Diluted earnings per common share | $ | 0.31 | $ | 0.41 | $ | 0.86 | $ | 1.28 | |||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||
| Basic | 188,513,832 | 187,023,395 | 188,626,263 | 183,340,149 | |||||||||||||||||||
| Diluted | 205,347,309 | 221,328,818 | 205,448,479 | 217,457,399 | |||||||||||||||||||
| Dividends declared per common share | $ | 0.43 | $ | 0.43 | $ | 1.29 | $ | 1.25 | |||||||||||||||
Arbor Realty Trust Reports Third Quarter 2024 Results and Declares Dividend of $0.43 per Share | |||||
November 1, 2024 | Page 9 | ||||
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
($ 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 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 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 | |||||||||
| 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 capital | 2,363,259 | 2,367,188 | |||||||||
| Retained earnings | 34,816 | 115,216 | |||||||||
| Total Arbor Realty Trust, Inc. stockholders' equity | 3,033,645 | 3,117,973 | |||||||||
| Noncontrolling interest | 129,732 | 136,632 | |||||||||
| Total equity | 3,163,377 | 3,254,605 | |||||||||
| Total liabilities and equity | $ | 13,881,458 | $ | 15,738,636 | |||||||
Arbor Realty Trust Reports Third Quarter 2024 Results and Declares Dividend of $0.43 per Share | |||||
November 1, 2024 | Page 10 | ||||
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Statement of Income Segment Information - (Unaudited)
(in thousands)
Quarter Ended September 30, 2024 | |||||||||||||||||||||||
| Structured Business | Agency Business | Other (1) | Consolidated | ||||||||||||||||||||
| Interest income | $ | 274,102 | $ | 12,420 | $ | — | $ | 286,522 | |||||||||||||||
| Interest expense | 192,945 | 4,765 | — | 197,710 | |||||||||||||||||||
| Net interest income | 81,157 | 7,655 | — | 88,812 | |||||||||||||||||||
| Other revenue: | |||||||||||||||||||||||
| Gain on sales, including fee-based services, net | — | 18,638 | — | 18,638 | |||||||||||||||||||
| Mortgage servicing rights | — | 13,195 | — | 13,195 | |||||||||||||||||||
| Servicing revenue | — | 48,441 | — | 48,441 | |||||||||||||||||||
| Amortization of MSRs | — | (17,299) | — | (17,299) | |||||||||||||||||||
| Property operating income | 1,507 | — | — | 1,507 | |||||||||||||||||||
| Gain on derivative instruments, net | — | 822 | — | 822 | |||||||||||||||||||
| Other income, net | 1,364 | 1,173 | — | 2,537 | |||||||||||||||||||
| Total other revenue | 2,871 | 64,970 | — | 67,841 | |||||||||||||||||||
| Other expenses: | |||||||||||||||||||||||
| Employee compensation and benefits | 16,772 | 28,109 | — | 44,881 | |||||||||||||||||||
| Selling and administrative | 6,345 | 6,796 | — | 13,141 | |||||||||||||||||||
| Property operating expenses | 1,686 | — | — | 1,686 | |||||||||||||||||||
| Depreciation and amortization | 1,422 | 522 | — | 1,944 | |||||||||||||||||||
| Provision for loss sharing (net of recoveries) | — | 3,180 | — | 3,180 | |||||||||||||||||||
| Provision for credit losses (net of recoveries) | 14,788 | 1,432 | — | 16,220 | |||||||||||||||||||
| Total other expenses | 41,013 | 40,039 | — | 81,052 | |||||||||||||||||||
| Income before income from equity affiliates and income taxes | 43,015 | 32,586 | — | 75,601 | |||||||||||||||||||
| Income from equity affiliates | 3,177 | — | — | 3,177 | |||||||||||||||||||
| Benefit from (provision for) income taxes | 2,080 | (7,313) | — | (5,233) | |||||||||||||||||||
| Net income | 48,272 | 25,273 | — | 73,545 | |||||||||||||||||||
| Preferred stock dividends | 10,342 | — | — | 10,342 | |||||||||||||||||||
| Net income attributable to noncontrolling interest | — | — | 5,028 | 5,028 | |||||||||||||||||||
| Net income attributable to common stockholders | $ | 37,930 | $ | 25,273 | $ | (5,028) | $ | 58,175 | |||||||||||||||
(1)Includes income allocated to the noncontrolling interest holders not allocated to the two reportable segments.
Arbor Realty Trust Reports Third Quarter 2024 Results and Declares Dividend of $0.43 per Share | |||||
November 1, 2024 | Page 11 | ||||
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Balance Sheet Segment Information - (Unaudited)
(in thousands)
| September 30, 2024 | |||||||||||||||||
| Structured Business | Agency Business | Consolidated | |||||||||||||||
| Assets: | |||||||||||||||||
| Cash and cash equivalents | $ | 212,588 | $ | 474,952 | $ | 687,540 | |||||||||||
| Restricted cash | 161,892 | 18,014 | 179,906 | ||||||||||||||
| Loans and investments, net | 11,292,647 | — | 11,292,647 | ||||||||||||||
| Loans held-for-sale, net | — | 326,141 | 326,141 | ||||||||||||||
| Capitalized mortgage servicing rights, net | — | 376,403 | 376,403 | ||||||||||||||
| Securities held-to-maturity, net | — | 156,027 | 156,027 | ||||||||||||||
| Investments in equity affiliates | 76,294 | — | 76,294 | ||||||||||||||
| Real estate owned, net | 127,926 | — | 127,926 | ||||||||||||||
| Goodwill and other intangible assets | 12,500 | 76,010 | 88,510 | ||||||||||||||
| Other assets and due from related party | 484,921 | 85,143 | 570,064 | ||||||||||||||
| Total assets | $ | 12,368,768 | $ | 1,512,690 | $ | 13,881,458 | |||||||||||
| Liabilities: | |||||||||||||||||
| Debt obligations | $ | 9,965,287 | $ | 319,419 | $ | 10,284,706 | |||||||||||
| Allowance for loss-sharing obligations | — | 80,577 | 80,577 | ||||||||||||||
| Other liabilities and due to related parties | 270,830 | 81,968 | 352,798 | ||||||||||||||
| Total liabilities | $ | 10,236,117 | $ | 481,964 | $ | 10,718,081 | |||||||||||
Arbor Realty Trust Reports Third Quarter 2024 Results and Declares Dividend of $0.43 per Share | |||||
November 1, 2024 | Page 12 | ||||
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
Reconciliation of Distributable Earnings to GAAP Net Income - (Unaudited)
($ in thousands—except share and per share data)
Quarter Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Net income attributable to common stockholders | $ | 58,175 | $ | 77,924 | $ | 163,445 | $ | 238,407 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
| Net income attributable to noncontrolling interest | 5,028 | 6,789 | 14,119 | 21,200 | |||||||||||||||||||
| Income from mortgage servicing rights | (13,195) | (14,109) | (37,928) | (48,769) | |||||||||||||||||||
| Deferred tax benefit | (2,026) | (2,433) | (8,922) | (6,630) | |||||||||||||||||||
| Amortization and write-offs of MSRs | 18,792 | 18,757 | 56,728 | 58,684 | |||||||||||||||||||
| Depreciation and amortization | 2,564 | 3,957 | 8,802 | 12,310 | |||||||||||||||||||
| Loss on extinguishment of debt | — | 314 | 412 | 1,561 | |||||||||||||||||||
| Provision for credit losses, net | 17,077 | 16,922 | 63,337 | 57,437 | |||||||||||||||||||
| (Gain) loss on derivative instruments, net | (1,217) | 1,002 | 4,677 | 2,036 | |||||||||||||||||||
| Stock-based compensation | 2,977 | 3,047 | 11,748 | 12,141 | |||||||||||||||||||
| Distributable earnings (1) | $ | 88,175 | $ | 112,170 | $ | 276,418 | $ | 348,377 | |||||||||||||||
| Diluted distributable earnings per share (1) | $ | 0.43 | $ | 0.55 | $ | 1.35 | $ | 1.74 | |||||||||||||||
| Diluted weighted average shares outstanding (1) (2) | 205,347,309 | 204,016,436 | 205,448,479 | 200,185,980 | |||||||||||||||||||
(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)The diluted weighted average shares outstanding exclude the potential shares issuable upon conversion and settlement of the Company's convertible senior notes principal balance.
The Company is presenting distributable earnings because management believes it is an important supplemental measure of the Company's operating performance and is useful to investors, analysts and other parties in the evaluation of REITs and their ability to provide dividends to stockholders. Dividends are one of the principal reasons investors invest in REITs. To maintain REIT status, REITs are required to distribute at least 90% of their REIT-taxable income. The Company considers distributable earnings in determining its quarterly dividend and believes that, over time, distributable earnings is a useful indicator of the Company's dividends per share.
The Company defines distributable earnings as net income (loss) attributable to common stockholders computed in accordance with GAAP, adjusted for accounting items such as depreciation and amortization (adjusted for unconsolidated joint ventures), non-cash stock-based compensation expense, income from MSRs, amortization and write-offs of MSRs, gains/losses on derivative instruments primarily associated with Private Label loans not yet sold and securitized, changes in fair value of GSE-related derivatives that temporarily flow through earnings, deferred tax provision (benefit), CECL provisions for credit losses (adjusted for realized losses as described below) and gains/losses on the receipt of real estate from the settlement of loans (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 settled (i.e., when the loan is repaid, or in the case of foreclosure, when the underlying asset is sold); 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 2024 Results and Declares Dividend of $0.43 per Share | |||||
November 1, 2024 | 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.