Arbor Realty Trust Reports Fourth Quarter and Full Year 2016 Results and Increases Quarterly Dividend to $0.17 per Share

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| Source: Arbor Realty Trust

Fourth Quarter Company Highlights:

  • Net income of $20.5 million, or $0.40 per diluted common share
  • AFFO of $15.1 million, or $0.21 per diluted common share1
  • Declares a cash dividend on common stock of $0.17 per share, a 6% increase over prior quarter

Agency Business

  • Segment income of $26.9 million
  • Loan originations of $1.3 billion
  • Servicing portfolio of $13.6 billion at December 31, 2016, up 8% from 3Q16

Structured Business

  • Segment income of $3.0 million
  • Issued $86 million of convertible senior notes due 2019
  • Loan originations of $193 million
  • Earned $1.8 million of income from equity investments

Full Year Highlights:

  • Completed the acquisition of Arbor Commercial Mortgage’s agency platform including a Top 10 DUS® Lender with a significant servicing portfolio
  • Net income of $42.8 million, or $0.83 per diluted common share
  • AFFO of $49.0 million, or $0.79 per diluted common share1
  • Total return to shareholders of 13% for 2016
  • Raised forward annualized common dividend rate to $0.68 per share, a 13% increase from prior year
  • Structured portfolio growth of 17% on new originations of $848 million
  • Earned $14.9 million of income from equity investments and structured transactions
  • Continued focus on improving funding sources by adding a sixth collateralized securitization vehicle totaling $325 million, issuing $86 million of convertible senior notes and increasing warehouse facility capacity
  • Strong liquidity position with $150 million of cash on hand to fund new investment opportunities

UNIONDALE, N.Y., March 03, 2017 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE:ABR), today announced financial results for the fourth quarter and year ended December 31, 2016.  Arbor reported net income for the quarter of $20.5 million, or $0.40 per diluted common share, compared to $5.0 million, or $0.10 per diluted common share for the quarter ended December 31, 2015. Net income for the year was $42.8 million, or $0.83 per diluted common share, compared to $45.9 million, or $0.90 per diluted common share for the year ended December 31, 2015.  Adjusted funds from operations (“AFFO”) for the quarter was $15.1 million, or $0.21 per diluted common share, compared to $8.6 million, or $0.17 per diluted common share for the quarter ended December 31, 2015. AFFO for the year was $49.0 million, or $0.79 per diluted common share, compared to $58.3 million, or $1.14 per diluted common share for the year ended December 31, 2015.1

Agency Business

Loan Origination Platform

Loan originations for the fourth quarter ended December 31, 2016 totaled $1.3 billion, as compared to $850.4 million for the third quarter of 2016, and consisted of:

  • $1.0 billion of Fannie Mae loans
  • $299.3 million of Freddie Mac loans

Loan originations for the period from the date of the Agency Business acquisition (July 14, 2016) through December 31, 2016 totaled $2.1 billion and consisted of:

  • $1.7 billion of Fannie Mae loans
  • $456.4 million of Freddie Mac loans
  • $24.6 million of FHA loans

Loan sales for the fourth quarter of 2016 totaled $940.6 million, as compared to $551.8 million for the third quarter of 2016, excluding $418.2 million of sales on loans that were acquired on July 14, 2016 as part of the acquisition.

At December 31, 2016, loans held-for-sale was $673.4 million which was primarily comprised of unpaid principal balances totaling $662.3 million, with financing associated with these loans totaling $660.1 million.

For the quarter ended December 31, 2016, the Agency Business generated revenues of $51.1 million. Gain on sales, including fee-based services, net was $14.9 million, reflecting a margin of 1.58% on fourth quarter loan sales of $940.6 million. Income from mortgage servicing rights was $29.0 million for the quarter, reflecting a rate of 2.05% as a percentage of fourth quarter loan commitments of $1.4 billion.   

Servicing Portfolio

The servicing portfolio totaled $13.6 billion at December 31, 2016, an increase of 8% from September 30, 2016, primarily as a result of $1.3 billion of new loan originations during the quarter. Servicing revenue, net was $3.2 million for the quarter, and consists of servicing revenue of $17.3 million net of amortization of mortgage servicing rights totaling $14.1 million.

  Servicing Portfolio ($ in 000s)
  As of December 31, 2016 As of September 30, 2016
  UPBWtd. Avg.
Fee
Wtd. Avg.
Life (in years)
 UPBWtd. Avg.
Fee
Wtd. Avg.
Life (in years)
Fannie Mae $  11,181,1520.53%6.6 $  10,520,1070.53%6.4
Freddie Mac    1,953,2450.22%10.5    1,660,9410.23%10.3
FHA    420,6890.18%19.2    420,9620.18%19.3
Total $  13,555,0860.48%7.6 $  12,602,0100.48%7.3
         

Loans sold under the Fannie Mae program contain an obligation to partially guarantee the performance of the loan (“loss-sharing obligations”). At December 31, 2016, the Company’s allowance for loss-sharing obligations was $32.4 million which consists of general loss sharing guaranty obligations of $26.3 million, representing 0.23% of the Fannie Mae servicing portfolio, and $6.1 million of loss-sharing obligations on specifically identified loans with losses determined to be probable and estimable.

Structured Business

Portfolio and Investment Activity

Fourth quarter of 2016:

  • 16 new loan originations totaling $192.7 million, of which 14 were bridge loans for $149.7 million
  • Payoffs and pay downs on 14 loans totaling $135.0 million

Year ended December 31, 2016:

  • 70 new loan originations totaling $847.7 million, of which 64 were bridge loans for $779.9 million
  • Payoffs and pay downs on 54 loans totaling $553.4 million

At December 31, 2016, the loan and investment portfolio’s unpaid principal balance, excluding loan loss reserves, was $1.80 billion, with a weighted average current interest pay rate of 5.71%, compared to $1.76 billion and 5.47% at September 30, 2016.  Including certain fees earned and costs associated with the loan and investment portfolio, the weighted average current interest pay rate was 6.39% at December 31, 2016, compared to 6.14% at September 30, 2016.

The average balance of the Company’s loan and investment portfolio during the fourth quarter of 2016, excluding loan loss reserves, was $1.79 billion and the weighted average yield on these assets for the quarter was 6.38%, compared to $1.73 billion and 6.15% for the third quarter of 2016. The increase in average yield was primarily due to an increase in income from the acceleration of fees on early loan payoffs in the fourth quarter as compared to the third quarter, as well as an increase in one-month LIBOR.

At December 31, 2016, the Company’s total loan loss reserves were $83.7 million on eight loans with an aggregate carrying value before loan loss reserves of $187.4 million. The Company also had three non-performing loans with a carrying value of $22.9 million that were fully reserved.

The Company recorded $1.8 million of income from equity affiliates primarily consisting of $1.1 million of income from its joint venture investment in a residential mortgage banking business and $0.7 million of income from a distribution received from another one of its joint venture equity investments.

Financing Activity

The Company completed the unwind of one of its collateralized loan obligation vehicles (“CLO III”). CLO III’s $281.3 million of outstanding notes were redeemed and repaid with proceeds received from the refinancing of CLO III’s remaining assets within the Company’s existing financing facilities, as well as cash held by CLO III. As a result of this transaction, the Company recognized an expense of $1.0 million from the acceleration of deferred fees.

The balance of debt that finances the Company’s loan and investment portfolio at December 31, 2016 was $1.35 billion with a weighted average interest rate including fees of 4.45%, as compared to $1.42 billion and a rate of 4.09% at September 30, 2016. The average balance of debt that finances the Company’s loan and investment portfolio for the fourth quarter of 2016 was $1.44 billion, as compared to $1.37 billion for the third quarter of 2016. The average cost of borrowings for the fourth quarter was 4.82%, compared to 4.19% for the third quarter of 2016. The increase in average cost was primarily due to the acceleration of fees related to the unwind of CLO III, the issuance of the convertible senior notes as well as an increase in one-month LIBOR.

The Company is subject to various financial covenants and restrictions under the terms of its CLO vehicles and financing facilities, including financings assumed as part of the Agency Business acquisition. The Company believes it was in compliance with all financial covenants and restrictions as of December 31, 2016 and as of the most recent CLO determination dates in February 2017.

In February 2017, the Company purchased, at a discount, $20.9 million of its junior subordinated notes, with a carrying value of $19.9 million, resulting in the recognition of an estimated gain on extinguishment of debt of $7.2 million in the first quarter of 2017.

Capital Markets

The Company issued $86.3 million of 6.50% Convertible Senior Notes due 2019 (the “Notes”), including the underwriter’s $11.3 million over-allotment option. The conversion rate was initially equal to 119.3033 shares of common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of $8.38 per share of common stock, representing an approximate 10% conversion premium based on the closing price of the Company’s common stock of $7.62 per share on September 29, 2016. In January 2017, the Company reopened the Notes and issued an additional $13.8 million for a total outstanding principal amount of $100.0 million. The Company received proceeds totaling $96.3 million, net of the underwriters’ discount and fees, from these offerings which is intended to be used to make investments in our business and for general corporate purposes.

Dividends

The Company announced today that its Board of Directors has declared a quarterly cash dividend of $0.17 per share of common stock for the quarter ended December 31, 2016, representing an increase of 6% over the prior quarter dividend of $0.16 per share. The dividend is payable on March 21, 2017 to common stockholders of record on March 15, 2017. The ex-dividend date is March 13, 2017.

As previously announced, the Board of Directors has declared cash dividends on the Company's Series A, Series B and Series C cumulative redeemable preferred stock reflecting accrued dividends from December 1, 2016 through February 28, 2017. The dividends are payable on February 28, 2017 to preferred stockholders of record on February 15, 2017. The Company will pay total dividends of $0.515625, $0.484375 and $0.53125 per share on the Series A, Series B and Series C preferred stock, respectively.

Earnings Conference Call

The Company will host a conference call today at 10:00 a.m. ET. A live webcast of the conference call will be available at www.arborrealtytrust.com in the investor relations area of the website. Those without web access should access the call telephonically at least ten minutes prior to the conference call. The dial-in numbers are (866) 516-5034 for domestic callers and (678) 509-7613 for international callers. Please use participant passcode 70644208.

After the live webcast, the call will remain available on the Company's website, www.arborrealtytrust.com, through March 31, 2017.  In addition, a telephonic replay of the call will be available until March 10, 2017. The replay dial-in numbers are (855) 859-2056 for domestic callers and (404) 537-3406 for international callers. Please use passcode 70644208.

About Arbor Realty Trust, Inc.

Arbor Realty Trust, Inc. (NYSE:ABR) is a real estate investment trust and national direct lender specializing in loan origination and servicing for multifamily, seniors housing, healthcare and other diverse commercial real estate assets. Arbor is a Top 10 Fannie Mae DUS® Multifamily Lender by volume and a Top Fannie Mae Small Loan lender, a Freddie Mac Program Plus® Seller/Servicer and the Top Freddie Mac Small Balance Loan Lender, a Fannie Mae and Freddie Mac Seniors Housing Lender, an FHA Multifamily Accelerated Processing (MAP)/LEAN Lender, a HUD-approved LIHTC Lender as well as a CMBS, bridge, mezzanine and preferred equity lender, consistently building on its reputation for service, quality and flexibility. With a current servicing portfolio of approximately $13.6 billion, Arbor is a primary commercial loan servicer and special servicer rated by Standard & Poor’s with an Above Average rating. Arbor is also on the Standard & Poor’s Select Servicer List and is a primary commercial loan servicer and loan level special servicer rated by Fitch Ratings. Arbor is externally managed and advised by Arbor Commercial Mortgage, LLC.

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, continued ability to source new investments, changes in interest rates and/or credit spreads, changes in the real estate markets, and other risks detailed in Arbor’s Annual Report on Form 10-K for the year ended December 31, 2016 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.

1. Non-GAAP Financial Measures

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. Supplemental schedules of each non-GAAP financial measure and the comparable GAAP financial measure can be found on page 12 of this release.

 ARBOR REALTY TRUST, INC. AND SUBSIDIARIES  
       
 CONSOLIDATED STATEMENTS OF INCOME  
           
           
   Quarter Ended Year Ended 
   December 31, December 31, 
    2016   2015  2016   2015  
     
   (Unaudited) (Unaudited)     
Interest income $  32,748,431  $  27,192,853 $  116,172,621  $  106,768,542  
Other interest income, net  -   -    2,539,274     7,884,344  
Interest expense    20,664,442     12,314,640    63,622,771     49,720,132  
 Net interest income    12,083,989     14,878,213    55,089,124     64,932,754  
           
Other revenue:         
Gain on sales, including fee-based services,  net    14,900,268   -    24,594,090   -  
Mortgage servicing rights    28,972,693   -    44,940,760   -  
Servicing revenue, net    3,168,315   -    9,054,199   -  
Property operating income    2,162,248     4,811,224    14,881,275     27,666,252  
Other income, net    377,040     105,911    1,041,017     270,360  
 Total other revenue    49,580,564     4,917,135    94,511,341     27,936,612  
           
Other expenses:         
Employee compensation and benefits    15,791,013     3,367,054    38,647,446     17,500,457  
Selling and administrative    7,309,027     1,949,157    17,586,871     9,392,136  
Acquisition costs  -     1,591,512    10,261,902     3,133,681  
Property operating expenses    2,509,202     4,856,517    13,501,025     23,237,834  
Depreciation and amortization    1,892,490     1,299,250    5,021,900     5,436,330  
Impairment loss on real estate owned  -   -    11,200,000   -  
Provision for loss sharing    917,961   -    2,234,823   -  
Provision for loan losses (net of recoveries)    (109,106)    2,113,198    (134,101)    4,466,886  
Management fee - related party    3,725,000     2,825,000    12,600,000     10,900,000  
 Total other expenses    32,035,587     18,001,688    110,919,866     74,067,324  
           
Income before gain on acceleration of deferred income, loss         
 on termination of swaps, gain on sale of real estate, income        
 from equity affiliates and provision for income taxes    29,628,966     1,793,660    38,680,599     18,802,042  
Gain on acceleration of deferred income  -   -  -     19,171,882  
Loss on termination of swaps  -   -  -     (4,629,647) 
Gain on sale of real estate  -     3,799,657    11,630,687     7,784,021  
Income from equity affiliates    1,800,689     1,317,339    12,994,607     12,300,516  
Provision for income taxes    (525,000)  -    (825,000)  -  
           
Net income    30,904,655     6,910,656    62,480,893     53,428,814  
           
Preferred stock dividends    1,888,430     1,888,430    7,553,720     7,553,720  
Net income attributable to noncontrolling interest    8,481,609   -    12,131,041   -  
Net income attributable to common stockholders $  20,534,616  $  5,022,226 $  42,796,132  $  45,875,094  
           
Basic earnings per common share $  0.40  $  0.10 $  0.83  $  0.90  
Diluted earnings per common share $  0.40  $  0.10 $  0.83  $  0.90  
           
           
Weighted average shares outstanding:         
 Basic    51,401,295     50,962,516    51,305,095     50,857,750  
 Diluted    73,268,095     51,274,057    51,730,553     51,007,328  
           
Dividends declared per common share $  0.16  $  0.15 $  0.62  $  0.58  
           

 

 ARBOR REALTY TRUST, INC. AND SUBSIDIARIES  
         
 CONSOLIDATED BALANCE SHEETS  
         
         
     December 31, December 31, 
      2016   2015  
         
Assets:      
Cash and cash equivalents $  138,645,430  $  188,708,687  
Restricted cash    29,314,929     48,301,244  
Loans and investments, net    1,695,732,351     1,450,334,341  
Loans held-for-sale, net    673,367,304   -  
Capitalized mortgage servicing rights, net    227,742,986   -  
Available-for-sale securities, at fair value    5,403,463     2,022,030  
Investments in equity affiliates    33,948,853     30,870,235  
Real estate owned, net    19,491,805     60,845,509  
Real estate held-for-sale, net  -     8,669,203  
Due from related party    1,464,732     8,082,265  
Goodwill and other intangible assets    97,489,884   -  
Other assets     48,184,509     29,558,430  
  Total assets $  2,970,786,246  $  1,827,391,944  
         
Liabilities and Equity:     
Credit facilities and repurchase agreements    906,636,790     136,252,135  
Collateralized loan obligations     728,441,109     758,899,661  
Senior unsecured notes    94,521,566     93,764,994  
Convertible senior unsecured notes, net    80,660,038   -  
Junior subordinated notes to subsidiary trust issuing preferred securities    157,858,555     157,117,130  
Mortgage note payable - real estate owned  -     27,155,000  
Related party financing    50,000,000   -  
Due to related party    6,038,707     3,428,333  
Due to borrowers    81,019,386     34,629,595  
Allowance for loss-sharing obligations    32,407,554   -  
Other liabilities    86,164,613     51,054,321  
  Total liabilities    2,223,748,318     1,262,301,169  
         
Equity:      
 Arbor Realty Trust, Inc. stockholders' equity:     
  Preferred stock, cumulative, redeemable, $0.01 par value: 100,000,000 shares     
   authorized; special voting preferred shares; 21,230,769 shares issued and     
   outstanding, no shares issued and outstanding, respectively; 8.25% Series A,   
   $38,787,500 aggregate liquidation preference; 1,551,500 shares issued and     
   outstanding; 7.75% Series B, $31,500,000 aggregate liquidation preference;    
   1,260,000 shares issued and outstanding; 8.50% Series C, $22,500,000      
   aggregate liquidation preference; 900,000 shares issued and outstanding    89,508,213     89,295,905  
  Common stock, $0.01 par value: 500,000,000 shares authorized; 51,401,295     
   and 50,962,516 shares issued and outstanding, respectively    514,013     509,625  
  Additional paid-in capital    621,931,995     616,244,196  
  Accumulated deficit    (125,134,403)    (136,118,001) 
  Accumulated other comprehensive income (loss)    320,917     (4,840,950) 
Total Arbor Realty Trust, Inc. stockholders’ equity    587,140,735     565,090,775  
         
Noncontrolling interest    159,897,193   -  
Total equity    747,037,928     565,090,775  
         
Total liabilities and equity $  2,970,786,246  $  1,827,391,944  
         

 

 ARBOR REALTY TRUST, INC. AND SUBSIDIARIES  
         
 STATEMENT OF INCOME SEGMENT INFORMATION- (Unaudited)  
           
           
   Quarter Ended December 31, 2016 
           
   Structured
Business
 Agency
Business
 Other /
Eliminations (1)
 Consolidated 
           
Interest income $  28,941,224  $  3,807,207  $-  $  32,748,431  
Interest expense    17,496,302     2,206,317     961,823     20,664,442  
 Net interest income    11,444,922     1,600,890     (961,823)    12,083,989  
           
Other revenue:         
Gain on sales, including fee-based services,  net  -     14,900,268   -     14,900,268  
Mortgage servicing rights  -     28,972,693   -     28,972,693  
Servicing revenue  -     17,286,351   -     17,286,351  
Amortization of MSRs  -     (14,118,036)  -     (14,118,036) 
Property operating income    2,162,248   -   -     2,162,248  
Other income, net    126,271     250,769   -     377,040  
 Total other revenue    2,288,519     47,292,045   -     49,580,564  
           
Other expenses:         
Employee compensation and benefits    2,783,307     13,007,706   -     15,791,013  
Selling and administrative    3,157,162     4,151,865   -     7,309,027  
Acquisition costs  -   -   -   -  
Property operating expenses    2,509,202   -   -     2,509,202  
Depreciation and amortization    492,036     1,400,454   -     1,892,490  
Provision for loss sharing  -     917,961   -     917,961  
Provision for loan losses (net of recoveries)    (109,106)  -   -     (109,106) 
Management fee - related party    1,781,745     1,943,255   -     3,725,000  
 Total other expenses    10,614,346     21,421,241   -     32,035,587  
           
Income before income from equity affiliates and provision        
 for income taxes    3,119,095     27,471,694     (961,823)    29,628,966  
Income from equity affiliates    1,800,689   -   -     1,800,689  
Provision for income taxes  -     (525,000)  -     (525,000) 
           
Net income $  4,919,784  $  26,946,694  $  (961,823) $  30,904,655  
           
Preferred stock dividends    1,888,430   -   -     1,888,430  
Net income attributable to noncontrolling interest  -   -     8,481,609     8,481,609  
Net income attributable to common stockholders $  3,031,354  $  26,946,694  $  (9,443,432) $  20,534,616  
           
(1) Includes certain corporate expenses not allocated to the two reportable segments, such as costs associated with the acquisition of the 
 Agency Business as well as income allocated to the noncontrolling interest holder.     
           

 

 ARBOR REALTY TRUST, INC. AND SUBSIDIARIES 
          
 BALANCE SHEET SEGMENT INFORMATION - (Unaudited) 
            
            
            
     December 31, 2016
     Structured
Business
 Agency
Business
 Other /
Eliminations (1)
 Consolidated
Assets:         
Cash and cash equivalents $  103,156,034 $  35,489,396 $- $  138,645,430
Restricted cash    16,230,051    13,084,878  -    29,314,929
Loans and investments, net    1,695,732,351  -  -    1,695,732,351
Loans held-for-sale, net  -    673,367,304  -    673,367,304
Capitalized mortgage servicing rights, net -    227,742,986  -    227,742,986
Investments in equity affiliates    33,948,853  -  -    33,948,853
Goodwill and other intangible assets  -    97,489,884  -    97,489,884
Other assets     63,350,947    11,193,562  -    74,544,509
  Total assets $  1,912,418,236 $  1,058,368,010 $- $  2,970,786,246
            
Liabilities:        
Debt obligations    1,307,973,936    660,144,122    50,000,000    2,018,118,058
Allowance for loss-sharing obligations  -    32,407,554  -    32,407,554
Other liabilities    133,788,359    38,216,483    1,217,864    173,222,706
  Total liabilities $  1,441,762,295 $  730,768,159 $  51,217,864 $  2,223,748,318
            
(1) Includes assets and liabilities not allocated to the two reportable segments, such as financings and acquisition costs
  associated with the acquisition of the Agency Business.      
            

 

         
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES 
         
Supplemental Schedule of Non-GAAP Financial Measures - 
Funds from Operations ("FFO") and Adjusted Funds from Operations ("AFFO") 
 (Unaudited)  
         
 Quarter Ended Year Ended 
December 31,December 31,
  2016   2015   2016   2015  
         
Net income attributable to common stockholders$  20,534,616  $  5,022,226  $  42,796,132  $  45,875,094  
         
Subtract:        
  Gain on sale of real estate  -     (3,799,657)    (11,630,687)    (7,784,021) 
Add:        
  Net income attributable to noncontrolling interest   8,481,609   -     12,131,041   -  
  Impairment loss on real estate owned  -   -     11,200,000   -  
  Depreciation - real estate owned    247,574     1,299,250     2,011,903     5,436,330  
  Depreciation - investments in equity affiliates    93,588     93,588     374,352     374,351  
         
Funds from operations  (1)$  29,357,387  $  2,615,407  $  56,882,741  $  43,901,754  
         
Subtract:        
  Income from mortgage servicing rights    (28,972,693)  -     (44,940,760)  -  
  Impairment loss on real estate owned  -   -     (11,200,000)  -  
  Net gain on changes in fair value of derivatives    (250,769)  -     (499,279)  -  
  Deferred tax benefit    (1,532,084)  -     (1,532,084)  -  
Add:        
  Amortization of MSRs    14,118,036   -     21,704,560   -  
  Depreciation and amortization    1,805,479   -     3,170,560   -  
  Gain on sale of real estate  -     3,799,657     11,630,687     7,784,021  
  Stock-based compensation    573,366     552,102     3,513,540     3,442,683  
  Acquisition costs  -     1,591,512     10,261,902     3,133,681  
         
Adjusted funds from operations  (1)$  15,098,722  $  8,558,678  $  48,991,867  $  58,262,139  
         
 Diluted FFO per share  (1) $  0.40  $  0.05  $  0.92  $  0.86  
         
 Diluted AFFO per share  (1) $  0.21  $  0.17  $  0.79  $  1.14  
         
 Diluted weighted average shares outstanding  (1)    73,268,095     51,274,057     61,649,847     51,007,328  
         
(1) Amounts are attributable to common stockholders and OP Unit holder. 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 FFO and AFFO because management believes they are important supplemental measures of the Company’s
operating performance in that they are frequently used by analysts, investors and other parties in the evaluation of REITs.  The National
Association of Real Estate Investment Trusts, or NAREIT, defines FFO as net income (loss) attributable to common stockholders
(computed in accordance with GAAP), excluding gains (losses) from sales of depreciated real properties, plus impairments of
depreciated real properties and real estate related depreciation and amortization, and after adjustments for unconsolidated ventures. 
 
  
The Company defines AFFO as funds from operations adjusted for accounting items such as non-cash stock-based compensation
expense, income from mortgage servicing rights ("MSRs"), changes in fair value of certain derivatives that temporarily flow through
earnings as well as the amortization of MSRs and the convertible senior notes conversion option. The Company also adds back one-time
charges such as acquisition costs and impairment losses on real estate and gains/losses on sales of real estate. The Company is generally
not in the business of operating real estate owned property and has obtained real estate by foreclosure or through partial or full
settlement of mortgage debt related to the Company's loans to maximize the value of the collateral and minimize the Company's
exposure.  Therefore, the Company deems such impairment and gains/losses on real estate as an extension of the asset management of
its loans, thus a recovery of principal or additional loss on the Company's initial investment.
 
  
FFO and AFFO are not intended to be an indication of the Company's cash flow 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 FFO and AFFO may be different from the calculations used by other companies and,
therefore, comparability may be limited. 
 
         

 

Contacts:
Arbor Realty Trust, Inc.
Paul Elenio, Chief Financial Officer 
516-506-4422
pelenio@arbor.com

Media:
Bonnie Habyan, EVP of Marketing
516-506-4615
bhabyan@arbor.com

Investors:
The Ruth Group
Lee Roth
646-536-7012
lroth@theruthgroup.com