GAAP net income of $0.20 and distributable earnings1 of $0.35, per diluted common share
Declares cash dividend on common stock of $0.30 per share
Recognized a significant cash gain of $48.0 million from an equity investment
Generated ~$360 million of liquidity through continued improvements to the right side of our balance sheet:
Closed a $1.05 billion collateralized securitization vehicle
Issued $500.0 million of 7.875% senior unsecured notes due 2030 to repay $287.5 million of convertible senior notes
In October, unwound CLO 16 with $482.1 million of outstanding notes
Servicing portfolio of ~$35.17 billion, a 4% increase from last quarter, on agency loan originations of $1.98 billion, our strongest quarter since 4Q20
Structured loan portfolio of ~$11.71 billion, originations of $956.7 million and runoff of $734.2 million
UNIONDALE, N.Y., Oct. 31, 2025 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE:ABR), today announced financial results for the third quarter ended September 30, 2025. Arbor reported net income for the quarter of $38.5 million, or $0.20 per diluted common share, compared to net income of $58.2 million, or $0.31 per diluted common share for the quarter ended September 30, 2024. Distributable earnings for the quarter was $72.9 million, or $0.35 per diluted common share, compared to $88.2 million, or $0.43 per diluted common share for the quarter ended September 30, 2024.
Agency Business
Loan Origination Platform
Agency Loan Volume (in thousands)
Quarter Ended
September 30, 2025
June 30, 2025
Freddie Mac
$
1,103,120
$
150,339
Fannie Mae
872,753
683,206
SFR-Fixed Rate
7,242
23,552
Total Originations
$
1,983,115
$
857,097
Total Loan Sales
$
2,026,815
$
807,020
Total Loan Commitments
$
2,003,538
$
852,766
For the quarter ended September 30, 2025, the Agency Business generated revenues of $81.1 million, compared to $64.5 million for the second quarter of 2025. Gain on sales, including fee-based services, net was $23.3 million for the quarter, reflecting a margin of 1.15%, compared to $13.7 million and 1.69% for the second quarter of 2025. Income from mortgage servicing rights was $15.5 million for the quarter, reflecting a rate of 0.78% as a percentage of loan commitments, compared to $10.9 million and 1.28% for the second quarter of 2025.
At September 30, 2025, loans held-for-sale was $319.2 million, with financing associated with these loans totaling $294.2 million.
Fee-Based Servicing Portfolio
The Company's fee-based servicing portfolio totaled $35.17 billion at September 30, 2025. Servicing revenue, net was $29.7 million for the quarter and consisted of servicing revenue of $47.5 million, net of amortization of mortgage servicing rights totaling $17.8 million.
Fee-Based Servicing Portfolio ($ in thousands)
September 30, 2025
June 30, 2025
UPB
Wtd. Avg.Fee (bps)
Wtd. Avg.Life (years)
UPB
Wtd. Avg.Fee (bps)
Wtd. Avg.Life (years)
Fannie Mae
$
23,468,256
45.3
5.7
$
22,999,772
45.8
5.9
Freddie Mac
7,090,516
19.1
6.2
6,100,091
21.3
6.5
Private Label
2,561,736
18.7
4.8
2,599,971
18.7
5.0
FHA
1,492,536
14.0
19.1
1,497,551
14.0
19.9
SFR-Fixed Rate
279,650
20.0
4.1
287,065
20.0
4.2
Bridge
277,935
10.4
2.3
278,116
10.4
2.6
Total
$
35,170,629
36.2
6.3
$
33,762,566
37.4
6.5
Loans sold under the Fannie Mae program contain an obligation to partially guarantee the performance of the loan ("loss-sharing obligations") and includes $35.4 million for the fair value of the guarantee obligation undertaken at September 30, 2025. The Company recorded a $7.8 million net provision for loss sharing associated with CECL for the third quarter of 2025. At September 30, 2025, the Company's total CECL allowance for loss-sharing obligations was $60.4 million, representing 0.26% of the Fannie Mae servicing portfolio.
Structured Business
Portfolio and Investment Activity
Structured Portfolio Activity ($ in thousands)
Quarter Ended
September 30, 2025
June 30, 2025
UPB
%
UPB
%
Bridge:
SFR
$
391,768
41
%
$
530,986
74
%
Multifamily
375,950
39
%
103,300
14
%
767,718
80
%
634,286
88
%
Mezzanine/Preferred Equity
101,281
11
%
6,999
1
%
Construction - Multifamily
87,742
9
%
75,259
11
%
Total Originations
$
956,741
100
%
$
716,544
100
%
Number of Loans Originated
30
19
Commitments:
Construction - Multifamily
$
143,500
$
173,000
SFR
25,300
232,384
Total Commitments
$
168,800
$
405,384
Loan Runoff
$
734,209
$
519,709
Structured Portfolio ($ in thousands)
September 30, 2025
June 30, 2025
UPB
%
UPB
%
Bridge:
Multifamily
$
8,109,058
69
%
$
8,404,597
72
%
SFR
2,766,284
24
%
2,531,841
22
%
Other
164,505
1
%
169,025
2
%
11,039,847
94
%
11,105,463
96
%
Mezzanine/Preferred Equity
481,102
4
%
400,634
3
%
Construction - Multifamily
187,813
2
%
100,070
1
%
SFR Permanent
—
—
%
3,068
<1%
Total Portfolio
$
11,708,762
100
%
$
11,609,235
100
%
At September 30, 2025, the loan and investment portfolio's unpaid principal balance ("UPB"), excluding loan loss reserves, was $11.71 billion, with a weighted average interest rate of 6.64%, compared to $11.61 billion and 7.03% at June 30, 2025. Including certain fees earned and costs associated with the loan and investment portfolio, the weighted average interest rate was 7.27% at September 30, 2025, compared to 7.86% at June 30, 2025. The decrease in rate was primarily due to additional delinquent and modified loans along with a decline in SOFR in the third quarter of 2025.
The average balance of the Company's loan and investment portfolio during the third quarter of 2025, excluding loan loss reserves, was $11.76 billion with a weighted average yield of 6.95%, compared to $11.53 billion and 7.95% for the second quarter of 2025. The decline in the weighted average yield was primarily due to an $18 million one-time reversal of accrued interest on previously modified loans, along with additional delinquencies and rate modifications in the third quarter of 2025.
During the third quarter of 2025, the Company recorded a $17.5 million net provision for loan losses associated with CECL, which was net of a $5.5 million loan loss recovery. At September 30, 2025, the Company's total allowance for loan losses was $246.3 million. The Company had twenty-five non-performing loans with a UPB of $566.1 million, before related loan loss reserves of $22.9 million, compared to nineteen non-performing loans with a UPB of $471.8 million, before loan loss reserves of $36.4 million at June 30, 2025.
In addition, at September 30, 2025, the Company had eight loans with a total UPB of $183.1 million (before related loan loss reserves of $15.3 million) that were less than 60 days past due classified as non-accrual, compared to three loans with a total UPB of $56.9 million at June 30, 2025. Interest income on these loans is only being recorded to the extent cash is received.
During the third quarter of 2025, the Company modified 19 loans to borrowers experiencing financial difficulty with a total UPB of $808.6 million, of which 18 loans with a total UPB of $775.2 million, contained interest rates based on pricing over SOFR ranging from 3.10% to 5.00% and were modified to provide temporary rate relief through a pay and accrual feature. At September 30, 2025, these modified loans had a weighted average pay rate of 4.83% and a weighted average accrual rate of 2.87%. In addition, of the total modified loans for the third quarter, $36.2 million were non-performing at June 30, 2025, and are now current in accordance with their modified terms.
During the third quarter of 2025, the Company recognized a $48.0 million cash gain from one of its equity investment assets.
Foreclosed on two loans with a UPB totaling $122.5 million and sold one $10.1 million real estate owned property. Additionally, in October 2025, the Company foreclosed on an additional five loans with a total UPB of $127.4 million.
Financing Activity
The balance of debt that finances the Company's loan and investment portfolio at September 30, 2025 was $9.93 billion with a weighted average interest rate including fees of 6.72%, as compared to $9.61 billion and a rate of 6.88% at June 30, 2025. The decrease in the weighted average interest rate was primarily due to a decline in the SOFR rate during the third quarter of 2025.
The average balance of debt that finances the Company's loan and investment portfolio for the third quarter of 2025 was $9.96 billion, as compared to $9.52 billion for the second quarter of 2025. The average cost of borrowings for the third quarter of 2025 was 7.02%, compared to 6.99% for the second quarter of 2025.
The Company completed a $1.05 billion collateralized securitization secured initially by a portfolio of real estate related assets and cash. Investment grade-rated notes totaling $933.2 million were issued, and the Company retained subordinate interests in the issuing vehicle of $116.8 million. The facility has a two and a half year asset replenishment period and an initial weighted average interest rate of 1.82% over term SOFR, excluding fees and transaction costs.
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 September 30, 2025. The dividend is payable on November 26, 2025 to common stockholders of record on November 14, 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 ABRQ325 when prompted by the operator.
A telephonic replay of the call will be available until November 7, 2025. 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 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 September 30,
Nine Months Ended September 30,
2025
2024
2025
2024
Interest income
$
223,001
$
286,522
$
703,997
$
905,002
Interest expense
184,735
197,710
521,564
624,613
Net interest income
38,266
88,812
182,433
280,389
Other revenue:
Gain on sales, including fee-based services, net
23,340
18,638
49,779
52,752
Mortgage servicing rights
15,538
13,195
34,598
37,928
Servicing revenue, net
29,652
31,142
82,692
92,577
Property operating income
4,189
1,507
14,028
4,521
(Loss) gain on derivative instruments, net
(2,206
