Company Highlights:
Arbor Realty Trust, Inc. (NYSE: ABR), today announced financial
results for the second quarter ended June 30, 2018. Arbor
reported net income for the quarter of $17.2 million, or $0.25 per
diluted common share, compared to $11.9 million, or $0.21 per
diluted common share for the quarter ended June 30, 2017.
Adjusted funds from operations (“AFFO”) for the quarter was
$26.4 million, or $0.29 per diluted common share, compared to $17.6
million, or $0.22 per diluted common share for the quarter ended
June 30, 2017.
1
Agency Business
Loan Origination
Platform
Agency Loan Volume (in thousands) |
|
|
Quarter Ended |
|
|
|
June 30, 2018 |
|
March 31, 2018 |
|
Originations: |
|
|
|
|
|
Fannie Mae |
|
$ |
606,287 |
|
$ |
662,921 |
|
Freddie Mac |
|
|
434,789 |
|
|
308,151 |
|
FHA |
|
|
- |
|
|
60,738 |
|
CMBS/Conduit |
|
|
- |
|
|
16,233 |
|
Total Originations |
|
$ |
1,041,076 |
|
$ |
1,048,043 |
|
|
|
|
|
|
|
Total Loan Sales |
|
$ |
1,018,283 |
|
$ |
1,062,437 |
|
|
|
|
|
|
|
Total Loan
Commitments |
|
$ |
1,079,478 |
|
$ |
1,043,715 |
|
|
For the quarter ended June 30, 2018, the Agency Business
generated revenues of $49.0 million, compared to $54.4 million for
the first quarter of 2018. Gain on sales, including fee-based
services, net was $15.6 million for the quarter, reflecting a
margin of 1.53% on loan sales, compared to $18.2 million and 1.71%
for the first quarter of 2018. Income from mortgage servicing
rights was $17.9 million for the quarter, reflecting a rate of
1.66% as a percentage of loan commitments, compared to $19.6
million and 1.88% for the first quarter of 2018.
At June 30, 2018, loans held-for-sale was $311.5 million which
was primarily comprised of unpaid principal balances totaling
$308.1 million, with financing associated with these loans totaling
$307.7 million.
Fee-Based Servicing
Portfolio
Our fee-based servicing portfolio totaled $17.11
billion at June 30, 2018, an increase of 3% from March 31, 2018,
primarily a result of $1.04 billion of new loan originations, net
of $620.8 million in portfolio runoff during the quarter. Servicing
revenue, net was $10.9 million for the quarter and consists of
servicing revenue of $22.8 million, net of amortization of mortgage
servicing rights totaling $11.9 million.
|
|
Fee-Based Servicing Portfolio ($ in thousands) |
|
|
As of June 30, 2018 |
|
As of March 31, 2018 |
|
|
UPB |
Wtd. Avg. Fee |
Wtd. Avg. Life (in years) |
|
UPB |
Wtd. Avg. Fee |
Wtd. Avg. Life (in years) |
Fannie
Mae |
$ |
12,794,277 |
0.530 |
% |
7.3 |
|
$ |
12,700,635 |
0.535 |
% |
7.2 |
Freddie
Mac |
|
3,730,980 |
0.308 |
% |
11.0 |
|
|
3,397,535 |
0.304 |
% |
10.7 |
FHA |
|
|
585,017 |
0.159 |
% |
20.1 |
|
|
591,836 |
0.162 |
% |
20.0 |
Total |
|
$ |
17,110,274 |
0.469 |
% |
8.6 |
|
$ |
16,690,006 |
0.475 |
% |
8.4 |
|
Loans sold under the Fannie Mae program contain
an obligation to partially guarantee the performance of the loan
(“loss-sharing obligations”). At June 30, 2018, the Company’s
allowance for loss-sharing obligations was $31.4 million which
consists of general loss sharing guaranty obligations of $30.4
million, representing 0.24% of the Fannie Mae servicing portfolio,
and $1.0 million of loss-sharing obligations on specifically
identified loans with losses determined to be probable and
estimable.
Structured Business
Portfolio and Investment
Activity
- 32 new loan originations totaling $606.9 million, of which 31
were bridge loans for $590.9 million
- Payoffs and pay downs on 22 loans totaling $238.0 million
- Significant portfolio growth of 13% from 1Q18
At June 30, 2018, the loan and investment
portfolio’s unpaid principal balance, excluding loan loss reserves,
was $3.14 billion, with a weighted average current interest pay
rate of 6.76%, compared to $2.78 billion and 6.57% at March 31,
2018. Including certain fees earned and costs associated with
the loan and investment portfolio, the weighted average current
interest pay rate was 7.40% at June 30, 2018, compared to 7.28% at
March 31, 2018.
The average balance of the Company’s loan and
investment portfolio during the second quarter of 2018, excluding
loan loss reserves, was $2.91 billion with a weighted average yield
on these assets of 7.40%, compared to $2.68 billion and 7.08% for
the first quarter of 2018. The increase in average yield was
primarily due to an increase in LIBOR.
At June 30, 2018, the Company’s total loan loss
reserves were $58.7 million on four loans with an aggregate
carrying value before loan loss reserves of $129.7 million. The
Company also had two non-performing loans with a carrying value of
$2.5 million, net of related loan loss reserves of $1.7
million.
In July 2018, we received approximately $11
million from the settlement of a litigation related to a prior
investment, which we expect to record as a gain in the third
quarter of 2018.
Financing
Activity
The Company completed its tenth collateralized
securitization vehicle (“CLO X”) totaling $560.0 million of real
estate related assets and cash. Investment grade-rated notes
totaling $441.0 million were issued, and the Company retained
subordinate interests in the issuing vehicle of $119.0 million. The
facility has a four-year asset replenishment period and an initial
weighted average interest rate of 1.45% over LIBOR, excluding fees
and transaction costs.
The Company completed the unwind of CLO V,
redeeming $267.8 million of outstanding notes which were repaid
with proceeds received from the refinancing of CLO V’s outstanding
assets within the Company’s existing financing facilities including
CLO X. As a result of this transaction, the Company recognized an
expense of $1.3 million from the acceleration of deferred fees.
The balance of debt that finances the Company’s
loan and investment portfolio at June 30, 2018 was $2.81 billion
with a weighted average interest rate including fees of 4.93% as
compared to $2.45 billion and a rate of 5.09% at March 31, 2018.
The average balance of debt that finances the Company’s loan and
investment portfolio for the second quarter of 2018 was $2.54
billion, as compared to $2.30 billion for the first quarter of
2018. The average cost of borrowings for the second quarter was
5.46%, compared to 5.33% for the first quarter of 2018. The
increase in average costs was primarily due to an increase in LIBOR
as well as the acceleration of fees related to the early repayment
of debt.
The Company is subject to various financial
covenants and restrictions under the terms of its collateralized
securitization vehicles and financing facilities. The Company
believes it was in compliance with all financial covenants and
restrictions as of June 30, 2018 and as of the most recent
collateralized securitization vehicle determination dates in July
2018.
Capital
Markets
The Company issued 6.1 million shares of common
stock receiving net proceeds of $52.9 million and used the net
proceeds to make investments and for general corporate
purposes.
The Company reopened its 5.625% convertible
senior notes due May 2023 and issued an additional $25.0
million for a total outstanding principal amount
of $125.0 million, including the initial $100.0 million from
March 2018. The proceeds received by the Company were used to fund
the redemption of the Company’s outstanding 7.375% senior notes due
in 2021, to make investments in our business and for general
corporate purposes.
In July 2018, the Company issued $245.0 million
in aggregate principal amount of 5.25% convertible senior notes due
2021 (the “Notes”) through two private placements, including $15.0
million of the initial purchaser’s over-allotment option. The
initial purchasers of the Notes have the option to purchase up to
an additional $19.5 million of Notes solely to cover
over-allotments. The Company received proceeds totaling $237.2
million, net of the underwriter’s discount and fees from these
offerings. The Company used the net proceeds to exchange $99.8
million in aggregate principal amount of its 6.50% convertible
senior notes due 2019 and $127.6 million in aggregate principal
amount of its 5.375% convertible senior notes due 2020 for a
combination of $219.8 million in cash and 6.8 million shares of the
Company’s common stock to settle such exchanges. The remaining net
proceeds were used for general corporate purposes.
Dividends
The Company announced today that its Board of
Directors has declared a quarterly cash dividend of $0.25 per share
of common stock for the quarter ended June 30, 2018. The dividend
is payable on August 31, 2018 to common stockholders of record on
August 15, 2018. The ex-dividend date is August 14, 2018.
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 June 1, 2018 through August 31,
2018. The dividends are payable on August 31, 2018 to preferred
stockholders of record on August 15, 2018. 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 of the conference call will
be available at www.arbor.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 7116809.
After the live webcast, the call will remain
available on the Company's website through August 31, 2018.
In addition, a telephonic replay of the call will be
available until August 10, 2018. The replay dial-in numbers are
(855) 859-2056 for domestic callers and (404) 537-3406 for
international callers. Please use passcode 7116809.
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 Uniondale, New York, Arbor manages a
multibillion-dollar servicing portfolio, specializing in Fannie
Mae, Freddie Mac, and other government-sponsored enterprises, as
well as 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
flexibility, and dedicated 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, 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, 2017 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 12 of this release.
Contacts:Arbor Realty
Trust, Inc.Paul Elenio, Chief Financial Officer
516-506-4422 pelenio@arbor.com |
Investors:The Ruth
GroupLee Roth646-536-7012lroth@theruthgroup.com |
Media:Bonnie Habyan,
EVP of Marketing516-506-4615bhabyan@arbor.com |
|
ARBOR REALTY TRUST,
INC. AND SUBSIDIARIES |
|
CONSOLIDATED STATEMENTS OF INCOME -
(UNAUDITED) |
|
($ in thousands—except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Six Months Ended |
|
|
|
|
June 30, |
|
June 30, |
|
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
$ |
59,295 |
|
|
$ |
34,468 |
|
|
$ |
110,908 |
|
|
$ |
67,993 |
|
|
Interest
expense |
|
|
37,884 |
|
|
|
20,411 |
|
|
|
71,271 |
|
|
|
39,848 |
|
|
|
Net interest
income |
|
|
21,411 |
|
|
|
14,057 |
|
|
|
39,637 |
|
|
|
28,145 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other revenue: |
|
|
|
|
|
|
|
|
|
Gain on
sales, including fee-based services, net |
|
|
15,622 |
|
|
|
18,830 |
|
|
|
33,815 |
|
|
|
38,001 |
|
|
Mortgage
servicing rights |
|
|
17,936 |
|
|
|
17,254 |
|
|
|
37,571 |
|
|
|
37,284 |
|
|
Servicing
revenue, net |
|
|
10,871 |
|
|
|
6,609 |
|
|
|
20,418 |
|
|
|
11,403 |
|
|
Property
operating income |
|
|
2,964 |
|
|
|
2,863 |
|
|
|
5,874 |
|
|
|
6,086 |
|
|
Other
income, net |
|
|
(470 |
) |
|
|
(821 |
) |
|
|
2,408 |
|
|
|
(1,707 |
) |
|
|
Total other
revenue |
|
|
46,923 |
|
|
|
44,735 |
|
|
|
100,086 |
|
|
|
91,067 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expenses: |
|
|
|
|
|
|
|
|
|
Employee
compensation and benefits |
|
|
26,815 |
|
|
|
21,825 |
|
|
|
56,309 |
|
|
|
41,666 |
|
|
Selling and
administrative |
|
|
8,873 |
|
|
|
7,835 |
|
|
|
17,789 |
|
|
|
15,529 |
|
|
Property
operating expenses |
|
|
2,856 |
|
|
|
2,622 |
|
|
|
5,652 |
|
|
|
5,260 |
|
|
Depreciation and amortization |
|
|
1,845 |
|
|
|
1,816 |
|
|
|
3,691 |
|
|
|
3,713 |
|
|
Impairment
loss on real estate owned |
|
|
2,000 |
|
|
|
1,500 |
|
|
|
2,000 |
|
|
|
2,700 |
|
|
Provision
for loss sharing (net of recoveries) |
|
|
348 |
|
|
|
532 |
|
|
|
821 |
|
|
|
2,212 |
|
|
Provision
for loan losses (net of recoveries) |
|
|
(2,127 |
) |
|
|
(1,760 |
) |
|
|
(1,802 |
) |
|
|
(2,456 |
) |
|
Management
fee - related party |
|
|
- |
|
|
|
2,673 |
|
|
|
- |
|
|
|
6,673 |
|
|
|
Total
other expenses |
|
|
40,610 |
|
|
|
37,043 |
|
|
|
84,460 |
|
|
|
75,297 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before gain on extinguishment of debt, income (loss) from
equity affiliates and income taxes |
|
|
27,724 |
|
|
|
21,749 |
|
|
|
55,263 |
|
|
|
43,915 |
|
|
Gain on
extinguishment of debt |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
7,116 |
|
|
Income
(loss) from equity affiliates |
|
|
1,387 |
|
|
|
(3 |
) |
|
|
2,132 |
|
|
|
760 |
|
|
(Provision
for) benefit from income taxes |
|
|
(4,499 |
) |
|
|
(3,435 |
) |
|
|
4,285 |
|
|
|
(9,536 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
|
24,612 |
|
|
|
18,311 |
|
|
|
61,680 |
|
|
|
42,255 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock dividends |
|
|
1,888 |
|
|
|
1,888 |
|
|
|
3,777 |
|
|
|
3,777 |
|
|
Net income
attributable to noncontrolling interest |
|
|
5,557 |
|
|
|
4,494 |
|
|
|
14,547 |
|
|
|
10,935 |
|
|
Net income
attributable to common stockholders |
|
|
17,167 |
|
|
$ |
11,929 |
|
|
$ |
43,356 |
|
|
$ |
27,543 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per common share |
|
$ |
0.26 |
|
|
$ |
0.21 |
|
|
$ |
0.68 |
|
|
$ |
0.51 |
|
|
Diluted
earnings per common share |
|
$ |
0.25 |
|
|
$ |
0.21 |
|
|
$ |
0.66 |
|
|
$ |
0.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
65,683,057 |
|
|
|
56,652,334 |
|
|
|
63,773,306 |
|
|
|
54,071,085 |
|
|
|
Diluted |
|
|
90,055,170 |
|
|
|
79,064,503 |
|
|
|
87,420,543 |
|
|
|
76,365,118 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
declared per common share |
|
$ |
0.25 |
|
|
$ |
0.18 |
|
|
$ |
0.46 |
|
|
$ |
0.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
ARBOR REALTY TRUST,
INC. AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
($ in thousands—except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
(Unaudited) |
|
|
Assets: |
|
|
|
|
Cash and
cash equivalents |
|
$ |
106,968 |
|
|
$ |
104,374 |
|
Restricted
cash |
|
|
173,686 |
|
|
|
139,398 |
|
Loans and investments, net |
|
|
3,064,798 |
|
|
|
2,579,127 |
|
Loans held-for-sale, net |
|
|
311,487 |
|
|
|
297,443 |
|
Capitalized
mortgage servicing rights, net |
|
|
257,021 |
|
|
|
252,608 |
|
Securities
held to maturity, net |
|
|
50,342 |
|
|
|
27,837 |
|
Investments
in equity affiliates |
|
|
24,144 |
|
|
|
23,653 |
|
Real estate
owned, net |
|
|
14,650 |
|
|
|
16,787 |
|
Due from
related party |
|
|
10,162 |
|
|
|
688 |
|
Goodwill
and other intangible assets |
|
|
118,965 |
|
|
|
121,766 |
|
Other
assets |
|
|
72,097 |
|
|
|
62,264 |
|
Total assets |
|
$ |
4,204,320 |
|
|
$ |
3,625,945 |
|
|
|
|
|
|
|
|
|
Liabilities and Equity: |
|
|
|
|
Credit
facilities and repurchase agreements |
|
|
910,504 |
|
|
|
528,573 |
|
Collateralized loan obligations |
|
|
1,590,644 |
|
|
|
1,418,422 |
|
Debt fund |
|
|
68,270 |
|
|
|
68,084 |
|
Senior
unsecured notes |
|
|
122,343 |
|
|
|
95,280 |
|
Convertible
senior unsecured notes, net |
|
|
235,431 |
|
|
|
231,287 |
|
Junior
subordinated notes to subsidiary trust issuing preferred
securities |
|
|
139,909 |
|
|
|
139,590 |
|
Related
party financing |
|
|
- |
|
|
|
50,000 |
|
Due to
related party |
|
|
335 |
|
|
|
- |
|
Due to
borrowers |
|
|
78,159 |
|
|
|
99,829 |
|
Allowance
for loss-sharing obligations |
|
|
31,402 |
|
|
|
30,511 |
|
Other
liabilities |
|
|
83,811 |
|
|
|
99,813 |
|
Total liabilities |
|
|
3,260,808 |
|
|
|
2,761,389 |
|
|
|
|
|
|
|
|
|
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;
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 |
|
|
|
89,508 |
|
|
|
Common
stock, $0.01 par value: 500,000,000 shares authorized;
68,570,617 |
|
|
|
|
|
|
and 61,723,387 shares
issued and outstanding, respectively |
|
|
686 |
|
|
|
617 |
|
|
|
Additional
paid-in capital |
|
|
766,933 |
|
|
|
707,450 |
|
|
|
Accumulated
deficit |
|
|
(87,128 |
) |
|
|
(101,926 |
) |
|
|
Accumulated
other comprehensive income |
|
|
- |
|
|
|
176 |
|
Total Arbor
Realty Trust, Inc. stockholders’ equity |
|
|
769,999 |
|
|
|
695,825 |
|
|
|
|
|
|
|
|
|
Noncontrolling interest |
|
|
173,513 |
|
|
|
168,731 |
|
Total
equity |
|
|
943,512 |
|
|
|
864,556 |
|
|
|
|
|
|
|
|
|
Total
liabilities and equity |
|
$ |
4,204,320 |
|
|
$ |
3,625,945 |
|
|
|
|
|
|
|
|
|
ARBOR REALTY TRUST,
INC. AND SUBSIDIARIES |
STATEMENT OF INCOME SEGMENT INFORMATION -
(Unaudited) |
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended June 30, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Structured Business |
|
Agency Business |
|
Other / Eliminations (1) |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
$ |
54,177 |
|
|
$ |
5,118 |
|
|
$ |
- |
|
|
$ |
59,295 |
|
Interest
expense |
|
|
34,612 |
|
|
|
3,272 |
|
|
|
- |
|
|
|
37,884 |
|
|
Net interest
income |
|
|
19,565 |
|
|
|
1,846 |
|
|
|
- |
|
|
|
21,411 |
|
|
|
|
|
|
|
|
|
|
|
Other revenue: |
|
|
|
|
|
|
|
|
Gain on
sales, including fee-based services, net |
|
|
- |
|
|
|
15,622 |
|
|
|
- |
|
|
|
15,622 |
|
Mortgage
servicing rights |
|
|
- |
|
|
|
17,936 |
|
|
|
- |
|
|
|
17,936 |
|
Servicing
revenue |
|
|
- |
|
|
|
22,808 |
|
|
|
- |
|
|
|
22,808 |
|
Amortization of MSRs |
|
|
- |
|
|
|
(11,937 |
) |
|
|
- |
|
|
|
(11,937 |
) |
Property
operating income |
|
|
2,964 |
|
|
|
- |
|
|
|
- |
|
|
|
2,964 |
|
Other
income, net |
|
|
117 |
|
|
|
(587 |
) |
|
|
- |
|
|
|
(470 |
) |
|
Total other
revenue |
|
|
3,081 |
|
|
|
43,842 |
|
|
|
- |
|
|
|
46,923 |
|
|
|
|
|
|
|
|
|
|
|
Other expenses: |
|
|
|
|
|
|
|
|
Employee
compensation and benefits |
|
|
6,749 |
|
|
|
20,066 |
|
|
|
- |
|
|
|
26,815 |
|
Selling and
administrative |
|
|
3,497 |
|
|
|
5,376 |
|
|
|
- |
|
|
|
8,873 |
|
Property
operating expenses |
|
|
2,856 |
|
|
|
- |
|
|
|
- |
|
|
|
2,856 |
|
Depreciation and amortization |
|
|
444 |
|
|
|
1,401 |
|
|
|
- |
|
|
|
1,845 |
|
Impairment
loss on real estate owned |
|
|
2,000 |
|
|
|
- |
|
|
|
- |
|
|
|
2,000 |
|
Provision
for loss sharing (net of recoveries) |
|
|
- |
|
|
|
348 |
|
|
|
- |
|
|
|
348 |
|
Provision
for loan losses (net of recoveries) |
|
|
(2,127 |
) |
|
|
- |
|
|
|
- |
|
|
|
(2,127 |
) |
|
Total
other expenses |
|
|
13,419 |
|
|
|
27,191 |
|
|
|
- |
|
|
|
40,610 |
|
|
|
|
|
|
|
|
|
|
|
Income
before income from equity affiliates and |
|
|
|
|
|
|
|
|
|
income taxes |
|
|
9,227 |
|
|
|
18,497 |
|
|
|
- |
|
|
|
27,724 |
|
Income from
equity affiliates |
|
|
1,387 |
|
|
|
- |
|
|
|
- |
|
|
|
1,387 |
|
Benefit
from (provision for) income taxes |
|
|
500 |
|
|
|
(4,999 |
) |
|
|
- |
|
|
|
(4,499 |
) |
|
|
|
|
|
|
|
|
|
|
Net
income |
|
$ |
11,114 |
|
|
$ |
13,498 |
|
|
$ |
- |
|
|
$ |
24,612 |
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock dividends |
|
|
1,888 |
|
|
|
- |
|
|
|
- |
|
|
|
1,888 |
|
Net income
attributable to noncontrolling interest |
|
- |
|
|
|
- |
|
|
|
5,557 |
|
|
|
5,557 |
|
Net income
attributable to common stockholders |
|
$ |
9,226 |
|
|
$ |
13,498 |
|
|
$ |
(5,557 |
) |
|
$ |
17,167 |
|
|
|
|
|
|
|
|
|
|
|
(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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2018 |
|
|
|
|
|
Structured Business |
|
Agency Business |
|
Consolidated |
Assets: |
|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
78,997 |
|
$ |
27,971 |
|
$ |
106,968 |
Restricted
cash |
|
|
172,954 |
|
|
732 |
|
|
173,686 |
Loans and investments, net |
|
|
3,064,798 |
|
|
- |
|
|
3,064,798 |
Loans held-for-sale, net |
|
|
- |
|
|
311,487 |
|
|
311,487 |
Capitalized
mortgage servicing rights, net |
|
- |
|
|
257,021 |
|
|
257,021 |
Securities
held to maturity, net |
|
|
- |
|
|
50,342 |
|
|
50,342 |
Investments
in equity affiliates |
|
|
24,144 |
|
|
- |
|
|
24,144 |
Goodwill
and other intangible assets |
|
|
12,500 |
|
|
106,465 |
|
|
118,965 |
Other
assets |
|
|
79,751 |
|
|
17,158 |
|
|
96,909 |
Total assets |
|
$ |
3,433,144 |
|
$ |
771,176 |
|
$ |
4,204,320 |
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
Debt
obligations |
|
|
2,759,445 |
|
|
307,656 |
|
|
3,067,101 |
Allowance
for loss-sharing obligations |
|
- |
|
|
31,402 |
|
|
31,402 |
Other
liabilities |
|
|
135,944 |
|
|
26,361 |
|
|
162,305 |
Total liabilities |
|
$ |
2,895,389 |
|
$ |
365,419 |
|
$ |
3,260,808 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARBOR REALTY TRUST, INC. AND
SUBSIDIARIES |
|
Supplemental Schedule of Non-GAAP Financial Measures -
(Unaudited) |
|
Funds from Operations ("FFO") and Adjusted Funds from
Operations ("AFFO") |
|
($ in thousands—except share and per share
data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Six Months Ended |
|
June 30, |
June 30, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to common stockholders |
$ |
17,167 |
|
|
$ |
11,929 |
|
|
$ |
43,356 |
|
|
$ |
27,543 |
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interest |
|
5,557 |
|
|
|
4,494 |
|
|
|
14,547 |
|
|
|
10,935 |
|
|
Impairment loss
on real estate owned |
|
2,000 |
|
|
|
1,500 |
|
|
|
2,000 |
|
|
|
2,700 |
|
|
Depreciation -
real estate owned |
|
178 |
|
|
|
169 |
|
|
|
356 |
|
|
|
419 |
|
|
Depreciation -
investments in equity affiliates |
|
125 |
|
|
|
101 |
|
|
|
250 |
|
|
|
203 |
|
|
|
|
|
|
|
|
|
|
|
Funds from
operations (1) |
$ |
25,027 |
|
|
$ |
18,193 |
|
|
$ |
60,509 |
|
|
$ |
41,800 |
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Income from
mortgage servicing rights |
|
(17,936 |
) |
|
|
(17,254 |
) |
|
|
(37,571 |
) |
|
|
(37,284 |
) |
|
Impairment loss
on real estate owned |
|
(2,000 |
) |
|
|
(1,500 |
) |
|
|
(2,000 |
) |
|
|
(2,700 |
) |
|
Deferred tax
provision (benefit) |
|
185 |
|
|
|
(890 |
) |
|
|
(13,135 |
) |
|
|
937 |
|
|
Amortization and
write-offs of MSRs |
|
17,203 |
|
|
|
14,932 |
|
|
|
33,879 |
|
|
|
30,213 |
|
|
Depreciation and
amortization |
|
2,255 |
|
|
|
1,873 |
|
|
|
4,511 |
|
|
|
3,741 |
|
|
Net loss (gain)
on changes in fair value of derivatives |
|
587 |
|
|
|
1,552 |
|
|
|
(2,057 |
) |
|
|
2,549 |
|
|
Stock-based
compensation |
|
1,100 |
|
|
|
682 |
|
|
|
3,645 |
|
|
|
2,986 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted funds from
operations (1) (2) |
$ |
26,421 |
|
|
$ |
17,588 |
|
|
$ |
47,781 |
|
|
$ |
42,242 |
|
|
|
|
|
|
|
|
|
|
|
Diluted FFO per
share (1) |
$ |
0.28 |
|
|
$ |
0.23 |
|
|
$ |
0.69 |
|
|
$ |
0.55 |
|
|
|
|
|
|
|
|
|
|
|
Diluted AFFO per
share (1) (2) |
$ |
0.29 |
|
|
$ |
0.22 |
|
|
$ |
0.55 |
|
|
$ |
0.55 |
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted
average shares outstanding (1) |
|
90,055,170 |
|
|
|
79,064,503 |
|
|
|
87,420,543 |
|
|
|
76,365,118 |
|
|
|
|
|
|
|
|
|
|
|
(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) Excluding the impact of $1.5 million of one-time,
non-cash accelerated costs related to the exchange of our 6.50%
convertible senior notes due 2019, AFFO for the second quarter of
2018 was $28.0 million, or $0.31 per diluted common share. |
|
|
|
|
|
|
|
|
|
|
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, amortization and write-offs of
MSRs, deferred tax (benefit) provision and the amortization of 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 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. |
|
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