GAAP net income of $0.07 per diluted common share
Distributable earnings1 of $0.19, or $0.22 per diluted common share, excluding $5.1 million of net realized losses from the resolution of certain legacy assets previously reserved for
Declares cash dividend on common stock of $0.30 per share
Agency loan originations of $1.63 billion
Structured loan originations of $1.10 billion, our strongest quarter in over three years
Issued $400.0 million of 8.50% senior unsecured notes due 2028
Unwound CLO 16 with $482.1 million of outstanding notes generating ~$90 million of liquidity
Foreclosed on six loans totaling $139.0 million and sold three real estate owned properties totaling $77.6 million
Repurchased $20.0 million of stock at an average price of $7.40 per share, or 64% of book value, between December 2025 and February 2026
Full Year Highlights:
GAAP net income of $0.56 per diluted common share
Distributable earnings1 of $1.07, or $1.17 per diluted common share, excluding $22.6 million of net realized losses from the resolution of certain legacy assets previously reserved for
Agency servicing portfolio of ~$36.20 billion on growth of 8% from loan originations of $5.07 billion
Structured portfolio of $12.11 billion on growth of 7% from loan originations of $3.52 billion
Recognized significant cash gains totaling $56.0 million from an equity investment
Continued success from our industry-leading securitization platform:
Closed our first build-to-rent collateralized securitization vehicle totaling $801.9 million with improved terms over our warehouse lines
Closed a $1.05 billion collateralized securitization vehicle with initial pricing of 1.82% over SOFR and leverage of 89%
Generated significant liquidity through improvements to the right side of our balance sheet:
Issued $900.0 million of senior unsecured notes to repay $557.5 million of unsecured debt and add ~$340 million of liquidity
Unwound three CLO vehicles, financing assets with a new $1.15 billion repurchase facility and existing lines, enhancing leverage, reducing pricing and generating ~$170 million of liquidity
UNIONDALE, N.Y., Feb. 27, 2026 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE:ABR), today announced financial results for the fourth quarter ended December 31, 2025. Arbor reported net income for the quarter of $14.6 million, or $0.07 per diluted common share, compared to net income of $59.8 million, or $0.32 per diluted common share for the quarter ended December 31, 2024. Net income for the year was $107.4 million, or $0.56 per diluted common share, compared to $223.3 million, or $1.18 per diluted common share for the year ended December 31, 2024. Distributable earnings for the quarter was $41.2 million, or $0.19 per diluted common share, compared to $81.6 million, or $0.40 per diluted common share for the quarter ended December 31, 2024. Distributable earnings for the year was $223.6 million, or $1.07 per diluted common share, compared to $358.0 million, or $1.74 per diluted common share for the year ended December 31, 2024.1
Agency Business
Loan Origination Platform
Agency Loan Volume (in thousands)
Quarter Ended
Year Ended
December 31, 2025
September 30, 2025
December 31, 2025
December 31, 2024
Fannie Mae
$
1,068,889
$
872,753
$
2,982,659
$
2,374,040
Freddie Mac
493,294
1,103,120
1,924,773
1,770,976
FHA
62,104
—
78,145
146,507
SFR - Fixed Rate
3,857
7,242
43,762
27,314
Private Label
—
—
44,925
151,936
Total Originations
$
1,628,144
$
1,983,115
$
5,074,264
$
4,470,773
Total Loan Sales
$
1,539,801
$
2,026,815
$
5,104,490
$
4,609,686
Total Loan Commitments
$
1,602,180
$
2,003,538
$
5,103,885
$
4,443,972
For the quarter ended December 31, 2025, the Agency Business generated revenues of $81.0 million, compared to $81.1 million for the third quarter of 2025. Gain on sales, including fee-based services, net on the Agency business was $20.9 million for the quarter, reflecting a margin of 1.36%, compared to $23.3 million and 1.15% for the third quarter of 2025. Income from mortgage servicing rights was $19.9 million for the quarter, reflecting a rate of 1.24% as a percentage of loan commitments, compared to $15.5 million and 0.78% for the third quarter of 2025.
At December 31, 2025, loans held-for-sale was $409.1 million, with financing associated with these loans totaling $390.4 million.
Fee-Based Servicing Portfolio
The Company's fee-based servicing portfolio totaled $36.20 billion at December 31, 2025. Servicing revenue, net was $26.9 million for the quarter and consisted of servicing revenue of $45.1 million, net of amortization of mortgage servicing rights totaling $18.2 million.
Fee-Based Servicing Portfolio ($ in thousands)
December 31, 2025
September 30, 2025
December 31, 2024
UPB
Wtd. Avg. Fee (bps)
Wtd. Avg. Life (years)
UPB
Wtd. Avg. Fee (bps)
Wtd. Avg. Life (years)
UPB
Wtd. Avg. Fee (bps)
Wtd. Avg. Life (years)
Fannie Mae
$
24,085,960
44.7
5.5
$
23,468,256
45.3
5.7
$
22,730,056
46.4
6.4
Freddie Mac
7,455,088
18.3
5.9
7,090,516
19.1
6.2
6,077,020
21.5
6.8
Private Label
2,558,048
18.7
4.5
2,561,736
18.7
4.8
2,605,980
18.7
5.5
FHA
1,549,483
13.9
19.1
1,492,536
14.0
19.1
1,506,948
14.1
19.2
Bridge
277,738
10.4
2.2
277,935
10.4
2.3
278,494
10.4
3.0
SFR-Fixed Rate
277,490
20.0
4.0
279,650
20.0
4.1
271,859
20.1
4.4
Total
$
36,203,807
35.6
6.1
$
35,170,629
36.2
6.3
$
33,470,357
37.8
6.9
Loans sold under the Fannie Mae program contain an obligation to partially guarantee the performance of the loan ("loss-sharing obligations") and includes $35.7 million for the fair value of the guarantee obligation undertaken at December 31, 2025. The Company recorded a $9.7 million net provision for loss sharing associated with CECL for the fourth quarter of 2025. At December 31, 2025, the Company's total CECL allowance for loss-sharing obligations was $61.9 million, representing 0.26% of the Fannie Mae servicing portfolio.
Structured Business
Portfolio and Investment Activity
Structured Portfolio Activity ($ in thousands)
Quarter Ended
Year Ended
December 31, 2025
September 30, 2025
December 31, 2025
December 31, 2024
UPB
%
UPB
%
UPB
%
UPB
%
Bridge:
SFR
$
668,059
61
%
$
391,768
41
%
$
1,947,107
55
%
$
869,141
61
%
Multifamily
336,945
30
%
375,950
39
%
1,183,945
34
%
444,635
31
%
Land
—
—
—
—
—
—
10,350
1
%
1,005,004
91
%
767,718
80
%
3,131,052
89
%
1,324,126
93
%
Construction - Multifamily
61,206
6
%
87,742
9
%
242,844
7
%
4,368
—
Mezzanine / Preferred Equity
36,922
3
%
101,281
11
%
149,642
4
%
97,305
7
%
Total Originations
$
1,103,132
100
%
$
956,741
100
%
$
3,523,538
100
%
$
1,425,799
100
%
Number of Loans Originated
29
30
98
170
Commitments:
SFR
$
245,750
$
25,300
$
665,834
$
1,438,841
Construction - Multifamily
62,000
143,500
470,500
101,000
Total Commitments
$
307,750
$
168,800
$
1,136,334
$
1,539,841
Loan Runoff
$
537,519
$
734,209
$
2,213,378
$
2,691,583
Structured Portfolio ($ in thousands)
December 31, 2025
September 30, 2025
December 31, 2024
UPB
%
UPB
%
UPB
%
Bridge:
Multifamily
$
8,143,114
67
%
$
8,109,058
69
%
$
8,725,429
76
%
SFR
3,184,910
26
%
2,766,284
24
%
1,993,890
18
%
Other
43,734
<1%
164,505
1
%
173,787
2
%
11,371,758
94
%
11,039,847
94
%
10,893,106
96
%
Mezzanine/Preferred Equity
492,330
4
%
481,102
4
%
404,401
3
%
Construction - Multifamily
249,019
2
%
187,813
2
%
4,367
<1%
SFR Permanent
—
—
—
—
3,082
<1%
Total Portfolio
$
12,113,107
100
%
$
11,708,762
100
%
$
11,304,956
100
%
At December 31, 2025, the loan and investment portfolio's unpaid principal balance ("UPB"), excluding loan loss reserves, was $12.11 billion, with a weighted average current interest pay rate of 6.49%, compared to $11.71 billion and 6.64% at September 30, 2025. Including certain fees earned and costs associated with the loan and investment portfolio, the weighted average current interest pay rate was 7.08% at December 31, 2025, compared to 7.27% at September 30, 2025. The decrease in pay rate was largely due to an decrease in the SOFR rate in the fourth quarter of 2025.
The average balance of the Company's loan and investment portfolio during the fourth quarter of 2025, excluding loan loss reserves, was $11.84 billion with a weighted average yield of 7.38%, compared to $11.76 billion and 6.95% for the third quarter of 2025. The increase 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, partially offset by a decrease in the SOFR rate in the fourth quarter of 2025.
During the fourth quarter of 2025, the Company recorded a $6.5 million reversal of provision for loan losses associated with CECL. At December 31, 2025, the Company's total allowance for loan losses was $146.0 million, compared to $246.3 million at September 30, 2025. The decrease in the allowance was primarily due to the resolution of a portfolio of legacy loans with a total UPB of $127.9 million and a previously recorded reserve of $77.9 million, resulting in a $68.9 million charge-off and a $9.0 million provision reversal. In addition, the Company recorded $20.5 million of impairments on real estate owned with a carry value of $158.2 million.
The Company had twenty-six non-performing loans with a UPB of $569.1 million, before related loan loss reserves of $10.2 million, compared to twenty-five loans with a UPB of $566.1 million, ...
