Arbor Realty Trust, Inc. (NYSE:ABR), today announced financial
results for the third quarter ended September 30, 2020. Arbor
reported net income for the quarter of $82.0 million, or $0.72 per
diluted common share, compared to net income of $34.0 million, or
$0.35 per diluted common share for the quarter ended September 30,
2019. Core earnings for the quarter was $67.1 million, or $0.50 per
diluted common share, compared to $43.1 million, or $0.37 per
diluted common share for the quarter ended September 30,
2019.
1
“These outstanding third quarter results reflect
the successful execution of our business strategy and the versatile
operating platform we have developed. Arbor continues to be very
well positioned to succeed in the current economic climate. Our
business model gives us diversified opportunities for growth and
has allowed us to outperform in the commercial mortgage REIT
space,” said Ivan Kaufman, founder, chairman and CEO of Arbor
Realty Trust.
“Our continued momentum and excellent results
have once again allowed us to increase our dividend to 32 cents a
share – our second consecutive quarterly dividend increase. It is a
true testament to the value of our franchise and the many diverse
income streams we have created that we are able to succeed in any
market cycle.”
Agency
Business
Loan Origination
Platform
Agency Loan Volume (in thousands) |
|
|
Quarter Ended |
|
|
September 30,2020 |
|
June 30,2020 |
Originations: |
|
|
|
Fannie Mae |
$ |
1,117,679 |
|
|
$ |
1,140,181 |
|
Freddie Mac |
|
252,014 |
|
|
|
135,720 |
|
FHA |
|
|
100,345 |
|
|
|
75,533 |
|
Private Label |
|
5,840 |
|
|
|
49,122 |
|
Total Originations |
$ |
1,475,878 |
|
|
$ |
1,400,556 |
|
|
|
|
|
|
Total Loan Sales |
$ |
1,219,462 |
|
|
$ |
1,992,889 |
|
|
|
|
|
|
Total Loan Commitments |
|
$ |
1,528,551 |
|
|
$ |
1,206,723 |
|
For the quarter ended September 30, 2020, the
Agency Business generated revenues (excluding gains and losses on
derivative instruments) of $81.8 million, compared to $81.1 million
for the second quarter of 2020. Gain on sales, including fee-based
services, net was $19.9 million for the quarter, reflecting a
margin of 1.63% on loan sales, compared to $26.4 million and 1.32%
for the second quarter of 2020. Income from mortgage servicing
rights was $42.4 million for the quarter, reflecting a rate of
2.77% as a percentage of loan commitments, compared to $32.4
million and 2.69% for the second quarter of 2020.
At September 30, 2020,
loans held-for-sale was $631.1 million which was primarily
comprised of unpaid principal balances totaling $617.9 million,
with financing associated with these loans totaling $567.6
million.
Fee-Based
Servicing Portfolio
Our fee-based servicing
portfolio totaled $22.56 billion at September 30, 2020, an increase
of 4.5% from June 30, 2020, primarily the result of $1.48 billion
of new agency loan originations, net of $490.4 million in portfolio
runoff during the quarter. Servicing revenue, net was $13.3 million
for the quarter and consisted of servicing revenue of $25.7
million, net of amortization of mortgage servicing rights totaling
$12.4 million.
|
|
Fee-Based Servicing Portfolio ($ in thousands) |
|
|
As of September 30, 2020 |
|
As of June 30, 2020 |
|
|
UPB |
Wtd. Avg.Fee |
Wtd. Avg. Life(in years) |
|
UPB |
Wtd. Avg.Fee |
Wtd. Avg. Life(in years) |
Fannie Mae |
|
$ |
16,462,041 |
|
0.516 |
% |
8.4 |
|
$ |
15,672,931 |
|
0.505 |
% |
8.2 |
Freddie Mac |
|
|
4,687,197 |
|
0.288 |
% |
10.4 |
|
|
4,560,382 |
|
0.295 |
% |
10.6 |
FHA |
|
|
685,263 |
|
0.171 |
% |
20.4 |
|
|
621,487 |
|
0.154 |
% |
19.6 |
Private Label |
|
|
727,063 |
|
0.200 |
% |
9.4 |
|
|
727,132 |
|
0.200 |
% |
9.5 |
Total |
|
$ |
22,561,564 |
|
0.448 |
% |
9.2 |
|
$ |
21,581,932 |
|
0.441 |
% |
9.1 |
Loans sold under the
Fannie Mae program contain an obligation to partially guarantee the
performance of the loan (“loss-sharing obligations”), and includes
$33.2 million for the fair value of the guarantee obligation
undertaken at September 30, 2020. The Company recorded a $2.5
million reversal of provision for loss sharing associated with
current expected credit losses, or “CECL,” for the third quarter of
2020. At September 30, 2020, the Company’s total CECL allowance for
loss-sharing obligations was $38.0 million, representing 0.23% of
the Fannie Mae servicing portfolio.
Structured
Business
Portfolio and
Investment Activity
- Significant income generated by our
residential mortgage banking joint venture
- Originated 13 loans totaling $291.8
million, and consisted primarily of multifamily bridge loans
totaling $235.1 million
- Payoffs and pay downs on 15 loans
totaling $206.0 million
- Portfolio growth of $124.7 million,
or 2.5%
The Company recorded pretax income of $32.3
million from its significant joint venture investment in a
residential mortgage banking business as a result of the continued
historically low interest rate environment. Pretax income from this
investment for the nine months ended September 30, 2020 totaled
$56.1 million.
At September 30, 2020,
the loan and investment portfolio’s unpaid principal balance,
excluding loan loss reserves, was $5.10 billion, with a weighted
average current interest pay rate of 5.39%, compared to $4.97
billion and 5.57% at June 30, 2020. Including certain fees earned
and costs associated with the loan and investment portfolio, the
weighted average current interest pay rate was 5.93% at September
30, 2020, compared to 6.10% at June 30, 2020.
The average balance of
the Company’s loan and investment portfolio during the third
quarter of 2020, excluding loan loss reserves, was $4.98 billion
with a weighted average yield of 5.98%, compared to $4.81 billion
and 6.16% for the second quarter of 2020. The decrease in average
yield was primarily due to several factors including an increase in
non-performing and modified loans, lower accelerated fees on loan
payoffs and lower rates on originations when compared to runoff in
the third quarter as compared to the second quarter.
During the third quarter of 2020, the Company
recorded a reversal of its provision for loan losses of $6.1
million as a result of its loan review process associated with
CECL. At September 30, 2020, the Company’s total allowance for loan
losses was $146.7 million. The Company had eight non-performing
loans with a carrying value of $62.9 million, before related loan
loss reserves of $9.1 million, compared to six loans with a
carrying value of $60.5 million, before related loan loss reserves
of $16.6 million as of June 30, 2020.
Financing
Activity
The balance of debt
that finances the Company’s loan and investment portfolio at
September 30, 2020 was $4.52 billion with a weighted average
interest rate including fees of 3.09% as compared to $4.54 billion
and a rate of 3.14% at June 30, 2020. The average balance of debt
that finances the Company’s loan and investment portfolio for the
third quarter of 2020 was $4.59 billion, as compared to $4.53
billion for the second quarter of 2020. The average cost of
borrowings for the third quarter of 2020 was 3.06%, compared to
3.26% for the second quarter of 2020. The decrease in average costs
was primarily due to a decrease in LIBOR.
The Company is subject to various financial
covenants and restrictions under the terms of its collateralized
securitization vehicles, financing facilities and unsecured debt.
The Company believes it was in compliance with all financial
covenants and restrictions as of September 30, 2020 and as of the
most recent collateralized securitization vehicle determination
dates in October 2020.
Dividends
The Company announced
today that its Board of Directors has declared a quarterly cash
dividend of $0.32 per share of common stock for the quarter ended
September 30, 2020, representing an increase of 6.7% year-to-date.
The dividend is payable on November 30, 2020 to common stockholders
of record on November 16, 2020. The ex-dividend date is November
13, 2020.
The Company also
announced today that its 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 September 1, 2020 through November 30, 2020. The dividends are
payable on November 30, 2020 to preferred stockholders of record on
November 15, 2020. 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. Eastern Time. A live webcast
and replay of the conference call will be available at
http://www.arbor.com in the investor relations section of the
Company’s website. Those without web access should access the call
telephonically at least ten minutes prior to the conference call.
The dial-in numbers are (877) 876-9176 for domestic callers and
(785) 424-1670 for international callers. Please use participant
passcode ABRQ320 when prompted by the operator.
A telephonic replay of
the call will be available until November 6, 2020. The replay
dial-in numbers are (800) 839-5679 for domestic callers and (402)
220-2566 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, seniors
housing, healthcare 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 Fannie Mae
DUS® lender and Freddie Mac Optigo Seller/Servicer. Arbor’s product
platform also includes CMBS, bridge, mezzanine and preferred equity
lending. 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, in particular, due to the uncertainties
created by the COVID-19 pandemic, 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, 2019 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.
A supplemental schedule of non-GAAP financial measures and the
comparable GAAP financial measure can be found on page 11 of this
release.
Contacts:Arbor Realty Trust, Inc.Paul Elenio, Chief Financial
Officer 516-506-4422 pelenio@arbor.com |
Investors:The Ruth GroupDaniel Kontoh-Boateng/James
Salierno646-536-7019/7028dboateng@theruthgroup.com jsalierno@theruthgroup.com |
Media:Bonnie HabyanChief Marketing
Officer516-506-4615bhabyan@arbor.com |
|
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Income - (Unaudited) |
($ in thousands—except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter EndedSeptember 30, |
|
Nine Months EndedSeptember 30, |
|
|
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
81,701 |
|
|
$ |
80,509 |
|
|
$ |
253,307 |
|
|
$ |
233,957 |
|
Interest expense |
|
|
37,888 |
|
|
|
48,064 |
|
|
|
129,172 |
|
|
|
138,213 |
|
|
Net interest income |
|
|
43,813 |
|
|
|
32,445 |
|
|
|
124,135 |
|
|
|
95,744 |
|
|
|
|
|
|
|
|
|
|
|
Other revenue: |
|
|
|
|
|
|
|
|
Gain on sales, including fee-based services, net |
|
|
19,895 |
|
|
|
21,298 |
|
|
|
60,566 |
|
|
|
51,897 |
|
Mortgage servicing rights |
|
|
42,357 |
|
|
|
29,911 |
|
|
|
96,708 |
|
|
|
62,852 |
|
Servicing revenue, net |
|
|
13,348 |
|
|
|
13,790 |
|
|
|
40,156 |
|
|
|
39,954 |
|
Property operating income |
|
|
1,033 |
|
|
|
2,237 |
|
|
|
3,976 |
|
|
|
8,187 |
|
Loss on derivative instruments, net |
|
|
(753 |
) |
|
|
(5,003 |
) |
|
|
(58,852 |
) |
|
|
(6,726 |
) |
Other income, net |
|
|
1,050 |
|
|
|
325 |
|
|
|
3,404 |
|
|
|
1,314 |
|
|
Total other revenue |
|
|
76,930 |
|
|
|
62,558 |
|
|
|
145,958 |
|
|
|
157,478 |
|
|
|
|
|
|
|
|
|
|
|
Other expenses: |
|
|
|
|
|
|
|
|
Employee compensation and benefits |
|
|
32,962 |
|
|
|
32,861 |
|
|
|
101,652 |
|
|
|
93,647 |
|
Selling and administrative |
|
|
9,356 |
|
|
|
10,882 |
|
|
|
29,013 |
|
|
|
31,122 |
|
Property operating expenses |
|
|
1,300 |
|
|
|
2,563 |
|
|
|
4,778 |
|
|
|
7,649 |
|
Depreciation and amortization |
|
|
1,922 |
|
|
|
1,841 |
|
|
|
5,830 |
|
|
|
5,663 |
|
Impairment loss on real estate owned |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,000 |
|
Provision for loss sharing (net of recoveries) |
|
|
(2,227 |
) |
|
|
735 |
|
|
|
21,706 |
|
|
|
1,557 |
|
Provision for credit losses (net of recoveries) |
|
|
(7,586 |
) |
|
|
- |
|
|
|
59,510 |
|
|
|
- |
|
|
Total other expenses |
|
|
35,727 |
|
|
|
48,882 |
|
|
|
222,489 |
|
|
|
140,638 |
|
|
|
|
|
|
|
|
|
|
|
Income before extinguishment of debt, sale of real estate, equity
affiliates, and income taxes |
|
|
|
|
|
|
|
|
|
|
85,016 |
|
|
|
46,121 |
|
|
|
47,604 |
|
|
|
112,584 |
|
|
|
|
|
|
|
|
|
|
|
Loss on extinguishment of debt |
|
|
- |
|
|
|
- |
|
|
|
(3,546 |
) |
|
|
(128 |
) |
Loss on sale of real estate |
|
|
(1,868 |
) |
|
|
- |
|
|
|
(1,868 |
) |
|
|
- |
|
Income from equity affiliates |
|
|
32,358 |
|
|
|
3,718 |
|
|
|
56,758 |
|
|
|
9,133 |
|
Provision for income taxes |
|
|
(17,785 |
) |
|
|
(6,623 |
) |
|
|
(15,493 |
) |
|
|
(10,963 |
) |
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
97,721 |
|
|
|
43,216 |
|
|
|
83,455 |
|
|
|
110,626 |
|
|
|
|
|
|
|
|
|
|
|
Preferred stock dividends |
|
|
1,888 |
|
|
|
1,888 |
|
|
|
5,665 |
|
|
|
5,665 |
|
Net income attributable to noncontrolling interest |
|
|
13,836 |
|
|
|
7,363 |
|
|
|
11,012 |
|
|
|
19,429 |
|
Net income attributable to common stockholders |
|
$ |
81,997 |
|
|
$ |
33,965 |
|
|
$ |
66,778 |
|
|
$ |
85,532 |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
|
$ |
0.72 |
|
|
$ |
0.36 |
|
|
$ |
0.60 |
|
|
$ |
0.95 |
|
Diluted earnings per common share |
|
$ |
0.72 |
|
|
$ |
0.35 |
|
|
$ |
0.59 |
|
|
$ |
0.93 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
|
113,766,446 |
|
|
|
94,486,839 |
|
|
|
111,775,436 |
|
|
|
89,899,074 |
|
|
Diluted |
|
|
133,997,087 |
|
|
|
117,468,044 |
|
|
|
132,401,315 |
|
|
|
113,033,968 |
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share |
|
$ |
0.31 |
|
|
$ |
0.29 |
|
|
$ |
0.91 |
|
|
$ |
0.84 |
|
|
|
|
|
|
|
|
|
|
|
|
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES |
|
|
|
|
|
Consolidated Balance Sheets |
($ in thousands—except share and per share data) |
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
(Unaudited) |
|
|
Assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
192,204 |
|
|
$ |
299,687 |
|
Restricted cash |
|
|
110,263 |
|
|
|
210,875 |
|
Loans and investments, net (allowance for credit losses: $146,745
and $71,069, respectively) |
|
|
4,910,872 |
|
|
|
4,189,960 |
|
Loans held-for-sale, net |
|
|
631,138 |
|
|
|
861,360 |
|
Capitalized mortgage servicing rights, net |
|
|
335,235 |
|
|
|
286,420 |
|
Securities held-to-maturity, net (allowance for credit losses:
$1,628 and $0, respectively) |
|
|
118,260 |
|
|
|
88,699 |
|
Investments in equity affiliates |
|
|
82,322 |
|
|
|
41,800 |
|
Real estate owned, net |
|
|
2,894 |
|
|
|
13,220 |
|
Due from related party |
|
|
23,814 |
|
|
|
10,651 |
|
Goodwill and other intangible assets |
|
|
106,716 |
|
|
|
110,700 |
|
Other assets |
|
|
175,500 |
|
|
|
125,788 |
|
Total assets |
|
$ |
6,689,218 |
|
|
$ |
6,239,160 |
|
|
|
|
|
|
Liabilities and Equity: |
|
|
|
|
Credit facilities and repurchase agreements |
|
$ |
1,449,940 |
|
|
$ |
1,678,288 |
|
Collateralized loan obligations |
|
|
2,516,032 |
|
|
|
2,130,121 |
|
Debt fund |
|
|
- |
|
|
|
68,629 |
|
Senior unsecured notes |
|
|
662,289 |
|
|
|
319,799 |
|
Convertible senior unsecured notes, net |
|
|
266,706 |
|
|
|
284,152 |
|
Junior subordinated notes to subsidiary trust issuing preferred
securities |
|
|
141,470 |
|
|
|
140,949 |
|
Due to related party |
|
|
802 |
|
|
|
13,100 |
|
Due to borrowers |
|
|
76,304 |
|
|
|
79,148 |
|
Allowance for loss-sharing obligations |
|
|
71,160 |
|
|
|
34,648 |
|
Other liabilities |
|
|
181,279 |
|
|
|
134,299 |
|
Total liabilities |
|
|
5,365,982 |
|
|
|
4,883,133 |
|
|
|
|
|
|
Equity: |
|
|
|
|
Arbor Realty Trust, Inc. stockholders' equity: |
|
|
|
|
Preferred stock, cumulative, redeemable, $0.01 par value:
100,000,000 shares authorized; special voting preferred
shares; 17,632,371 and 20,369,265 shares issued
and outstanding, respectively; 8.25% Series A, $38,788
aggregate liquidation preference; 1,551,500 shares issued and
outstanding; 7.75% Series B, $31,500 aggregate liquidation
preference; 1,260,000 shares issued and outstanding; 8.50% Series
C, $22,500 aggregate liquidation preference; 900,000 shares
issued and outstanding |
|
|
89,472 |
|
|
|
89,501 |
|
Common stock, $0.01 par value: 500,000,000 shares authorized;
115,930,351 and 109,706,214 shares issued and outstanding,
respectively |
|
|
1,159 |
|
|
|
1,097 |
|
Additional paid-in capital |
|
|
1,222,945 |
|
|
|
1,154,932 |
|
Accumulated deficit |
|
|
(120,539 |
) |
|
|
(60,920 |
) |
Total Arbor Realty
Trust, Inc. stockholders’ equity |
|
|
1,193,037 |
|
|
|
1,184,610 |
|
|
|
|
|
|
Noncontrolling interest |
|
|
130,199 |
|
|
|
171,417 |
|
Total equity |
|
|
1,323,236 |
|
|
|
1,356,027 |
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
6,689,218 |
|
|
$ |
6,239,160 |
|
|
|
|
|
|
|
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
Statement of Income Segment Information - (Unaudited) |
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended September 30, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
StructuredBusiness |
|
AgencyBusiness |
|
Other /Eliminations (1) |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
75,471 |
|
|
$ |
6,230 |
|
|
$ |
- |
|
|
$ |
81,701 |
|
Interest expense |
|
|
35,252 |
|
|
|
2,636 |
|
|
|
- |
|
|
|
37,888 |
|
|
Net interest income |
|
|
40,219 |
|
|
|
3,594 |
|
|
|
- |
|
|
|
43,813 |
|
|
|
|
|
|
|
|
|
|
|
Other revenue: |
|
|
|
|
|
|
|
|
Gain on sales, including fee-based services, net |
|
|
- |
|
|
|
19,895 |
|
|
|
- |
|
|
|
19,895 |
|
Mortgage servicing rights |
|
|
- |
|
|
|
42,357 |
|
|
|
- |
|
|
|
42,357 |
|
Servicing revenue |
|
|
- |
|
|
|
25,764 |
|
|
|
- |
|
|
|
25,764 |
|
Amortization of MSRs |
|
|
- |
|
|
|
(12,416 |
) |
|
|
- |
|
|
|
(12,416 |
) |
Servicing revenue, net |
|
|
- |
|
|
|
13,348 |
|
|
|
- |
|
|
|
13,348 |
|
Property operating income |
|
|
1,033 |
|
|
|
- |
|
|
|
- |
|
|
|
1,033 |
|
Gain (loss) on derivative instruments, net |
|
|
118 |
|
|
|
(871 |
) |
|
|
- |
|
|
|
(753 |
) |
Other income, net |
|
|
1,052 |
|
|
|
- |
|
|
|
- |
|
|
|
1,052 |
|
|
Total other revenue |
|
|
2,203 |
|
|
|
74,729 |
|
|
|
- |
|
|
|
76,932 |
|
|
|
|
|
|
|
|
|
|
|
Other expenses: |
|
|
|
|
|
|
|
|
Employee compensation and benefits |
|
|
8,874 |
|
|
|
24,089 |
|
|
|
- |
|
|
|
32,963 |
|
Selling and administrative |
|
|
4,665 |
|
|
|
4,691 |
|
|
|
- |
|
|
|
9,356 |
|
Property operating expenses |
|
|
1,300 |
|
|
|
- |
|
|
|
- |
|
|
|
1,300 |
|
Depreciation and amortization |
|
|
598 |
|
|
|
1,324 |
|
|
|
- |
|
|
|
1,922 |
|
Provision for loss sharing (net of recoveries) |
|
|
- |
|
|
|
(2,227 |
) |
|
|
- |
|
|
|
(2,227 |
) |
Provision for credit losses (net of recoveries) |
|
|
(6,065 |
) |
|
|
(1,521 |
) |
|
|
- |
|
|
|
(7,586 |
) |
|
Total other expenses |
|
|
9,372 |
|
|
|
26,356 |
|
|
|
- |
|
|
|
35,728 |
|
|
|
|
|
|
|
|
|
|
|
Income before sale of real estate, equity affiliates, and income
taxes |
|
|
33,050 |
|
|
|
51,967 |
|
|
|
- |
|
|
|
85,017 |
|
|
|
|
|
|
|
|
|
|
|
Loss on sale of real estate |
|
|
(1,868 |
) |
|
|
- |
|
|
|
- |
|
|
|
(1,868 |
) |
Income from equity affiliates |
|
|
32,358 |
|
|
|
- |
|
|
|
- |
|
|
|
32,358 |
|
Provision for income taxes |
|
|
(6,494 |
) |
|
|
(11,292 |
) |
|
|
- |
|
|
|
(17,786 |
) |
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
57,046 |
|
|
|
40,675 |
|
|
|
- |
|
|
|
97,721 |
|
|
|
|
|
|
|
|
|
|
|
Preferred stock dividends |
|
|
1,888 |
|
|
|
- |
|
|
|
- |
|
|
|
1,888 |
|
Net income attributable to noncontrolling interest |
|
|
- |
|
|
|
- |
|
|
|
13,836 |
|
|
|
13,836 |
|
Net income (loss) attributable to common stockholders |
|
$ |
55,158 |
|
|
$ |
40,675 |
|
|
$ |
(13,836 |
) |
|
$ |
81,997 |
|
|
|
|
|
|
|
|
|
|
|
(1) Includes certain income or expenses not allocated to the two
reportable segments. Amount reflects income attributable to
the noncontrolling interest holders. |
|
|
|
|
|
|
|
|
|
|
|
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES |
|
|
|
|
|
|
Balance Sheet Segment Information - (Unaudited) |
(in thousands) |
|
|
|
|
|
|
|
|
|
September 30, 2020 |
|
|
StructuredBusiness |
|
AgencyBusiness |
|
Consolidated |
Assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
103,655 |
|
|
$ |
88,549 |
|
|
$ |
192,204 |
|
Restricted cash |
|
|
103,412 |
|
|
|
6,851 |
|
|
|
110,263 |
|
Loans and investments, net |
|
|
4,910,872 |
|
|
|
- |
|
|
|
4,910,872 |
|
Loans held-for-sale, net |
|
|
- |
|
|
|
631,138 |
|
|
|
631,138 |
|
Capitalized mortgage servicing rights, net |
|
|
- |
|
|
|
335,235 |
|
|
|
335,235 |
|
Securities held-to-maturity, net |
|
|
20,000 |
|
|
|
98,260 |
|
|
|
118,260 |
|
Investments in equity affiliates |
|
|
82,322 |
|
|
|
- |
|
|
|
82,322 |
|
Goodwill and other intangible assets |
|
|
12,500 |
|
|
|
94,216 |
|
|
|
106,716 |
|
Other assets |
|
|
154,509 |
|
|
|
47,699 |
|
|
|
202,208 |
|
Total assets |
|
$ |
5,387,270 |
|
|
$ |
1,301,948 |
|
|
$ |
6,689,218 |
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
Debt obligations |
|
$ |
4,468,886 |
|
|
$ |
567,551 |
|
|
$ |
5,036,437 |
|
Allowance for loss-sharing obligations |
|
- |
|
|
|
71,160 |
|
|
|
71,160 |
|
Other liabilities |
|
|
194,289 |
|
|
|
64,096 |
|
|
|
258,385 |
|
Total liabilities |
|
$ |
4,663,175 |
|
|
$ |
702,807 |
|
|
$ |
5,365,982 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES |
|
|
|
|
|
|
|
|
Supplemental Schedule of Non-GAAP Financial Measures -
(Unaudited) |
Reconciliation of Core Earnings to GAAP Net Income (Loss) |
($ in thousands—except share and per share data) |
|
|
|
|
|
|
|
|
|
|
Quarter EndedSeptember 30, |
|
Nine Months EndedSeptember 30, |
|
|
2020 |
|
|
|
2019 |
|
|
|
2020 |
|
|
|
2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to common stockholders |
$ |
81,997 |
|
|
$ |
33,965 |
|
|
$ |
66,778 |
|
|
$ |
85,532 |
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
Net income attributable to noncontrolling interest |
|
13,836 |
|
|
|
7,363 |
|
|
|
11,012 |
|
|
|
19,429 |
|
Income from mortgage servicing rights |
|
(42,357 |
) |
|
|
(29,911 |
) |
|
|
(96,708 |
) |
|
|
(62,852 |
) |
Deferred tax provision (benefit) |
|
3,853 |
|
|
|
2,223 |
|
|
|
(5,172 |
) |
|
|
(1,026 |
) |
Amortization and write-offs of MSRs |
|
15,456 |
|
|
|
18,904 |
|
|
|
48,739 |
|
|
|
52,558 |
|
Depreciation and amortization |
|
2,867 |
|
|
|
2,789 |
|
|
|
8,731 |
|
|
|
8,504 |
|
Loss on extinguishment of debt |
|
- |
|
|
|
- |
|
|
|
3,546 |
|
|
|
128 |
|
Provision for credit losses, net |
|
(11,137 |
) |
|
|
431 |
|
|
|
79,144 |
|
|
|
1,021 |
|
Loss on derivative instruments, net |
|
753 |
|
|
|
5,003 |
|
|
|
44,113 |
|
|
|
6,726 |
|
Stock-based compensation |
|
1,854 |
|
|
|
2,316 |
|
|
|
7,286 |
|
|
|
7,574 |
|
|
|
|
|
|
|
|
|
Core earnings (1) |
$ |
67,122 |
|
|
$ |
43,083 |
|
|
$ |
167,469 |
|
|
$ |
117,594 |
|
|
|
|
|
|
|
|
|
Diluted core earnings per share (1) |
$ |
0.50 |
|
|
$ |
0.37 |
|
|
$ |
1.26 |
|
|
$ |
1.04 |
|
|
|
|
|
|
|
|
|
Diluted weighted average shares outstanding (1) |
|
133,997,087 |
|
|
|
117,468,044 |
|
|
|
132,401,315 |
|
|
|
113,033,968 |
|
|
|
|
|
|
|
|
|
(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. |
|
Beginning in the first quarter of 2020, the Company is presenting
core earnings as its non-GAAP financial measure in replacement of
adjusted funds from operations ("AFFO"). Core earnings is
comparable to our previous AFFO metric, revised to exclude
provisions for credit losses (including CECL) related to our
structured loan portfolio, securities held-to-maturity and
loss-sharing obligations related to the Fannie Mae program. The
Company is presenting core earnings because management believes it
is important supplemental measure of the Company’s operating
performance and is frequently used by peers, analysts, investors
and other parties in the evaluation of REITs. Prior period amounts
presented above have been conformed to reflect this change. |
|
The Company defines core 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 mortgage servicing rights
("MSRs"), amortization and write-offs of MSRs, gains and losses on
derivative instruments primarily associated with private label
loans that have not yet been sold and securitized, the tax impact
on cumulative gains or losses on derivative instruments associated
with private label loans that were sold during the periods
presented, changes in fair value of GSE-related derivatives that
temporarily flow through earnings, deferred tax (benefit)
provision, CECL provisions for credit losses (excluding
specifically reserved provisions for loss-sharing) and the
amortization of the convertible senior notes conversion option. The
Company also adds back one-time charges such as acquisition costs
and one-time gains or losses on the early extinguishment of
debt. |
|
Core earnings is 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 core earnings may
be different from the calculations used by other companies and,
therefore, comparability may be limited. |
Arbor Realty (NYSE:ABR)
Historical Stock Chart
From Aug 2024 to Sep 2024
Arbor Realty (NYSE:ABR)
Historical Stock Chart
From Sep 2023 to Sep 2024