Logo
Full page image
## Legal Disclosures
This presentation and the information contained herein (together, this 'Presentation') are for the benefit of the stockholders of Arbor Realty Trust, Inc. (together with its direct and indirect subsidiaries, 'we,' 'us,' 'our,' 'Arbor,' or the 'Company') . This Presentation is solely for informational purposes and is not all inclusive and may not contain all of the information required in order to evaluate the Company. This Presentation does not constitute or form part of, and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or acquire securities of the Company, nor shall there be any sale of securities in any state or other jurisdiction to any person or entity to which it is unlawful to make such offer, solicitation or sale in such state or jurisdiction.
## Forward-Looking Statements
This Presentation includes 'forward -looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to, among other things, the operating performance of our investments and financing needs. We use words such as 'anticipate,' 'expect,' 'believe,' 'intend,' 'should,' 'could,' 'will,' 'may,' 'target' and similar expressions to identify forward-looking statements, although not all forwardlooking statements include these words. Forward-looking statements are based on certain assumptions, discuss future expectations, describe future plans and strategies, contain projections of results of operations or of financial condition or state other forward-looking information. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. These forward-looking statements involve risks, uncertainties and other factors that may cause our actual results in future periods to differ materially from forecasted results. Factors that could have a material adverse effect on our results of operations, financial condition and future prospects include, but are not limited to, changes in economic, macroeconomic and geopolitical conditions generally, and the real estate market specifically; adverse changes in our status with government-sponsored enterprises affecting our ability to originate loans through such programs; changes in interest rates; the quality and size of the investment pipeline and the rate at which we can invest our cash; impairments in the value of the collateral underlying our loans and investments; inflation; changes in federal and state laws and regulations, including changes in tax laws; the availability and cost of capital for future investments; competition; and other risks and uncertainties described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and other periodic reports we file with the U.S. Securities and Exchange Commission from time to time. Undue reliance should not be placed on the forward-looking statements in this Presentation, which are based on information available to us on, and which speak only as of, the date hereof. The Company undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date they were made, unless required by applicable law.
## Non-GAAP Financial Measures
This Presentation includes certain financial information that is not required by, or presented in accordance with U.S. generally accepted accounting principles ('GAAP'), including Distributable Earnings. These non-GAAP financial measures are provided to enhance the user's overall understanding of the Company's current financial performance and its prospects for the future. These non-GAAP financial measures are used by management to assess the Company's performance, allocate resources and plan for future periods. These non-GAAP financial measures should only be considered as supplemental to results prepared in accordance with GAAP, and not considered as a substitute or replacement for, or superior to, GAAP results. These non-GAAP measures may differ from the non-GAAP measures reported by other companies. Refer to the slide 'Historical Reconciliation of Distributable Earnings to GAAP Net Income' for a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure.
Icon
## Arbor is a Leading Commercial Mortgage REIT with a Differentiated Business Model
## Business
- ◼ Arbor Realty Trust is an internally-managed mortgage REIT with a premium operating platform and unique business model, consisting of two primary business platforms:
- ◼ Structured Loan Origination and Investment
- ◼ Agency Loan Origination and Servicing
- ◼ Complementary operating platforms with diversified, countercyclical and recurring income streams
- ◼ Balance sheet loans provide strong risk-adjusted returns
- ◼ Balance sheet runoff naturally feeds GSE/Agency pipeline
- -Historically, ~50% of balance sheet runoff is recaptured into Agency production
- -Agency business is capital-light with high barriers to entry, resulting in sizeable earnings and cash flows
- ◼ Servicing business generates significant prepayment protected annual revenue with 6-year weighted average remaining life
- ◼ Prudent leverage and balance sheet strategy
- ◼ Successfully delevered the Company 17% on a debt / equity basis to 3.4x 1 since 2023
- ◼ Best-in-class, highly aligned senior management team with significant ownership (~11%)
## Platform
Multiple revenue opportunities across borrower's life cycle
Flow chart
Icon
Customer-Centric Approach: Commitment to nurture long-term relationships, leading to multiple successful loan engagements over the years
Icon
- Proven Track Record: Impressive number of repeat borrowers and sponsors, who consistently demonstrate strong operational capabilities and reliable loan repayment
Icon
Consistent Excellence: Symbiotic businesses outperforms through the cycle
Icon
## Arbor has a 40+ Year Track Record of Excellence in the Multifamily Lending Sector
ACMreceives
Table
## Over 30 years, ABR has transformed into a full-service multifamily loan originator that can support all aspects of commercial development
Icon
SmallBalance LoanLender
Logo
Dus?MultifamilyLender 19thYearinaRow
Icon
Small LoanLender, 8thYearinaRow
Logo
Logo
Icon
## We Believe Arbor is the Only Multifamily Mortgage Lender to Survive the Great Financial Crisis
Flow chart
## Commentary
'We will continue to aggressively manage our legacy issues and credit facilities and focus heavily on liquidity, capital retention and reducing our short term borrowings during this significant down turn'
-Ivan Kaufman, CEO & Chairman (November 2008)
'We believe that this is an environment where there'll be a huge differentiation and perhaps a lot of the weaker companies will disappear … we just have to stick to building our business and utilizing these opportunities'
-Ivan Kaufman, CEO & Chairman (February 2008)
Prudent Capital Management: Arbor aggressively managed struggling credit facilities
Capital Retention: Arbor prioritized capital retention and reducing shortterm borrowing to focus on liquidity during an uncertain economic period
Capital Restructuring: Arbor significantly restructured its capital structure by retiring a significant amount of debt at deep discounts
Portfolio Management: Arbor took early steps to manage the loan portfolio effectively by restructuring and monetizing loans and recording appropriate reserves
Arbor's successful navigation of the GFC demonstrated the strength of its underwriting capabilities and resilient business model
Icon
Icon
Icon
Icon
Icon
## Best-in-Class, Highly Aligned Management Team
Icon
Internalized, highly aligned management team with significant ownership
Icon
Industry-leading expertise with deep-rooted relationships across commercial real estate space
Photograph
Ivan Kaufman
Steven Katz
Photograph
Kevin Wachter
Photograph
- ◼ President and Chairman of Arbor Realty Trust
- ◼ 40+ years of executive leadership experience in commercial real estate
- ◼ Founded Arbor in 1983 and has been CEO and President of Arbor Commercial Mortgage LLC since 1993
- ◼ EVP, Chief Investment Officer, Residential Financing
- ◼ 20+ years of experience in mortgage trading, securitization, banking and servicing
- ◼ 10+ year tenure with Arbor
- ◼ EVP, Asset Finance and Treasury
- ◼ 20 years of capital markets and loan origination experience at institutional debt funds and mortgage REITs
Photograph
Paul Elenio
Photograph
Danny van der Reis
Photograph
Gene Kilgore
Icon
Deep bench of talented employees
Icon
Best-in-class underwriting and origination capabilities
- ◼ Chief Financial Officer
- ◼ 30+ years of experience in commercial real estate in operational and financial capacity
- ◼ Over 30-year tenure with Arbor
- ◼ EVP, Servicing and Asset Management
- ◼ 25+ years of commercial real estate experience
- ◼ Significant experience in special servicing
- ◼ EVP, Structured Securitization
- ◼ Significant experience in structured finance and real estate industries
- ◼ 20+ year tenure with Arbor
Photograph
Yoni Goodman
Jeff Lee
Photograph
David Friedman
Photograph
- ◼ EVP, Chief Operating Officer
- ◼ 20+ years of experience in real estate finance, multifamily loan production, and capital markets
- ◼ EVP, Head of Agency Lending
- ◼ 30+ years of multifamily real estate finance experience
- ◼ Leads Arbor's agency lending platforms, including Fannie Mae, Freddie Mac, and FHA
- ◼ EVP, Chief Credit Officer and Non-Agency & Head of Arbor Private Construction
- ◼ 20+ years of experience in commercial real estate lending
- ◼ Previous experience at Greystone, TD Bank, BofA and PNC Bank
Icon
## Arbor has Two Distinct Yet Complementary Business Lines
Pie chart
Pie chart
Arbor has Two Distinct Yet Complementary Business Lines
| | Structured Business | Agency Business |
|------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Description | Originate real estate loans and hold on balance sheet
Invests in the multifamily, Single-Family Rental, and commercial real estate markets | Originate, sell, and service real estate loans for GSEs
Short-term assets: Loans held-for-sale1
Long-term assets: Capitalized mortgage servicing rights ("MSRs")2 |
| Highlights | Best-in-class balance sheet loan origination business
Strong risk-adjusted returns
Proprietary Single-Family Rental platform
Weighted average of ~21 months to maturity3 | Capital-light business
High barriers to entry
Visibility on prepayment protected annual servicing fee revenue of ~$129M4
Weighted average life of portfolio of ~6 years |
| Portfolio ($B) | Mezzanine and Preferred Equity loans $0.5
SFR bridge loans $3.3
Multifamily bridge loans $7.9
Structured loan portfolio $12.0B | Fannie Mae $24.3
Freddie Mac $7.4
Private Label $2.5
APC $0.3
GSE servicing $2.5
Other $2.1
Total $36.3B |
| Income streams | Interest income on loans | Servicing fees4 43%
Gain on sale of loans1,6 24%
Interest earned on escrows 17%
Interest income on loans held-for-sale1 16%
% of LTM Agency Net Revenue5 |
| Assets ($M) | 13,262 | 1,431 |
| Liabilities ($M) | 11,117 | 596 |
| Book value of equity ($M) | 1,511 | 834 |
| LTM earnings before taxes & preferred dividends ($M) | 61 | 82 |
| % of total | 43% | 57% |
arbor-realty-trust-investor-presentation-p7-t1
71b8b123
Represents loans originated and sold under the GSE and HUD programs, which are generally transferred or sold within 60 days of loan origination, as well as Private Label loans, which are either sold instantaneously
1) Represents loans originated and sold under the GSE and HUD programs, which are generally transferred or sold within 60 days o f loan origination, as well as Private Label loans, which are either sold instantaneously or pooled and securitized, or sold, within 180 days of loan origination
2) Based on the discounted expected net cash flows associated with the servicing of the loan
3) Inclusive of extension options
4) Weighted average servicing fee of 35.5bps on $36.3B portfolio
5) Excludes impact of MSRs net of amortization, derivative instruments, and other income
6) Includes commitment fees, broker fees, loan assumption fees, loan origination fees
Icon
## Arbor's Adaptable Originations Platform Drives Industry -Leading Performance
Pie chart
Pie chart
Pie chart
1
## Average Duration
- ◼ GSE/Agency -Predominately five to ten-year fixed-rate loans; includes long-dated prepayment protected servicing income creating a significant annual annuity
- ◼ Balance Sheet -Three to five years on average; feeds pipeline of future GSE/Agency originations
- ◼ Single-Family Rental -One to three years on average; offers us three turns on our capital through construction, bridge and permanent loans
- ◼ Construction (APC) -Multifamily product, one to three years on average; offers us three turns on our capital through construction, bridge and permanent agency loans
Icon
Pie chart
## Arbor has the Leading Nationwide Agencies Origination and Servicing Platform
## Total Agency Originations ($B)
Bar chart
- ~$71.2B of Agency originations since inception in 1995
- Highly scalable and difficult to replicate platform
- Average loan size of $10M - $15M
- Industry leading performance with long track record of low historical losses
- Top 10 Fannie Mae lender for 19 years in a row; #9 in 2025
- ~$36.3B servicing portfolio, 100% focused on multifamily
- Generates significant prepayment protected revenue stream of ~$129M annually with 6 year weighted average remaining life
- ~$2.0B cash/escrow balances (earns ~$66M annually)
- ~$466M estimated fair market value of MSR with a carrying value of ~$332M
Bar chart
Icon
## Annuity Based Business Model Drives Diversified Income Streams
## Significant Long-Dated, Predictable Annual Cash Flow 1
| Based on: | 4/1/25 | 4/1/26 |
|--------------|----------|----------|
| Asset Bal. | $11.5B | $12.0B |
| 3 Asset Rate | 7.85% | 7.03% |
| Debt Bal. | $9.5B | $10.7B |
| 3 Debt Rate | 6.82% | 6.40% |
Bar chart
Bar chart
| Based on: | 4/1/25 | 4/1/26 |
|---------------------|----------|----------|
| Servicing Portfolio | $33.5B | $36.3B |
| Servicing Rate | 0.375% | 0.355% |
Source: Company filings (As of March 31, 2026)
- 1) Annualized based on March 31, 2025 and 2026 portfolio and debt balances, which may not be indicative of actual results
2) Structured business only; does not include interest income from Agency loans held-for-sale
3) Asset and debt rates reflect 'all in' amounts, which include certain fees and costs
| Based on: | 4/1/25 | 4/1/26 |
|---------------------|----------|----------|
| Cash/Escrow Balance | $1.6B | $2.0B |
| Earnings Rate | 4.02% | 3.30% |
Bar chart
Bar chart
Other Diversified Platform Income Sources – Gain on Sale, Equity Investments (2024, 2025, 1Q26)
| Based on: | 2024 | 2025 | 1Q26 |
|--------------------|--------|--------|--------|
| Gain on Sale | $75M | $71M | $13M |
| Equity Investments | $6M | $51M | $4M |
arbor-realty-trust-investor-presentation-p10-t4
7a208ebf
Icon
## Arbor Has a Consistent Track Record of Book Value Appreciation and Outperformance
Line chart
Icon
## Key Investment Highlights
Flow chart
Icon
## Recent Accomplishments Demonstrate Arbor's Focus on Operational Excellence
Operational Excellence
| Category | Details |
|----------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Resilience under challenging conditions | ✓ Originated $5.1B of Agency loans in FY 2025, including $3.6B in the second half of the year |
| | ✓ FY 2025 total represents a 13% increase over $4.5B originated in FY 2024 |
| | ✓ Servicing portfolio increased 9% since 1/1/25 to $36.3B as of 3/31/26 |
| | ✓ ~$3.5B of Structured originations in FY 2025; ~$770M in 1Q26 |
| | ✓ Structured loan portfolio increased 6% since 1/1/25 to $12.0B as of 3/31/26 |
| Strong performance metrics | ✓ 9.2% average ROE in FY 2025 and 1Q26 |
| | ✓ 16% increase in book value (over last 6 years)1 |
| | ✓ 18% 6-year total shareholder return2 |
| Continued success with right side of balance sheet | ✓ Entered into a new $763M CLO (CLO 21) with 88% leverage, creating $35M of liquidity |
| | ✓ Entered into a new $1.1B CLO (CLO 20) with record 89% leverage, creating $85M of liquidity |
| | ✓ Unwound three legacy CLO vehicles, refinancing assets with a new $1.15B repurchase facility and existing lines, enhancing leverage, reducing pricing and generating ~$170M of liquidity |
| | ✓ Completed first BTR CLO securitization in the industry, for ~$800M of assets, terms and pricing improvement over existing warehouse lines resulting in improved returns and profitability |
| | ✓ Completed debut $500M high-yield bond offering and Ba2 / BB public ratings from Moody's and Fitch |
| | ✓ Issued additional follow-on offering of $400M high-yield bonds |
| Continued monetization of legacy investments | ✓ Recognized $56M in cash gains from Lexford in FY 2025, an additional $6M in 1Q26, and over $110M of income from this investment life-to-date |
arbor-realty-trust-investor-presentation-p13-t1
466b0500
- Originated $5.1B of Agency loans in FY 2025, including $3.6B in the second half of the year
- FY 2025 total represents a 13% increase over $4.5B originated in FY 2024
- Servicing portfolio increased 9% since 1/1/25 to $36.3B as of 3/31/26
- ~$3.5B of Structured originations in FY 2025; ~$770M in 1Q26
- Structured loan portfolio increased 6% since 1/1/25 to $12.0B as of 3/31/26
- 9.2% average ROE in FY 2025 and 1Q26
- 16% increase in book value (over last 6 years) 1
- 18% 6-year total shareholder return 2
- Entered into a new $763M CLO (CLO 21) with 88% leverage, creating $35M of liquidity
- Entered into a new $1.1B CLO (CLO 20) with record 89% leverage, creating $85M of liquidity
- Unwound three legacy CLO vehicles, refinancing assets with a new $1.15B repurchase facility and existing lines, enhancing leverage, reducing pricing and generating ~$170M of liquidity
- Completed first BTR CLO securitization in the industry, for ~$800M of assets, terms and pricing improvement over existing warehouse lines resulting in improved returns and profitability
- Completed debut $500M highyield bond offering and Ba2 / BB public ratings from Moody's and Fitch
- Issued additional follow-on offering of $400M high-yield bonds
- Recognized $56M in cash gains from Lexford in FY 2025, an additional $6M in 1Q26, and over $110M of income from this investment life-to-date
- 1) Reflects ending book value per share on 3/31/26
- 2) Assumes no reinvestment of the common dividend. Reflects ending stock price on 3/31/26
Source: Company filings
Icon
## Arbor's Loan Portfolio is Focused on the Highly Stable, Liquid and Resilient Multifamily Market
Icon
Icon
Icon
Icon
Primary focus on stable multifamily senior loans
Generates strong leveraged returns
Geographically diversified
Balance sheet business drives GSE/Agency pipeline
PORTFOLIO OVERVIEW
| Metric | Value |
|------------------------------------|-----------|
| Total Portfolio | $12.0B |
| As of: | 3/31/2026 |
| Average loan size | $22.0M |
| W/A loan-to-value | 77% |
| Allowance for credit losses (CECL) | 1% |
| W/A mos. to maturity | 15.7 |
| W/A mos. to maturity w/ext. option | 20.8 |
arbor-realty-trust-investor-presentation-p14-t1
1c6b08b4
Pie chart
Icon
## Arbor is Singularly Focused on Accelerating the Resolution of Non-Performing Assets
Continue to make meaningful progress each quarter by resolving more non-interest earning assets versus new defaults. In 1Q26, non-performing assets are down 10% as Arbor accelerates the resolution process
Non-Performing Assets - 2025-2026 ($ in 000s)
| | Delinquency Rollforward | | | | | | | | | | | | | | |
|------------------------------------------------------|--------------------------------|-----|----------------|-----|----------------|-----|----------------|------|----|----|----|----|----|----|----|
| | 2Q25 | | 3Q25 | | 4Q25 | | 1Q26 | | | | | | | | |
| | UPB | # | UPB | # | UPB | # | UPB | # | | | | | | | |
| Beginning Balance | $ 653,911 | 28 | $ 528,700 | 22 | $ 749,250 | 33 | $ 617,448 | 29 | | | | | | | |
| Additions | 89,634 | 4 | 435,103 | 18 | 270,710 | 9 | 197,775 | 5 | | | | | | | |
| Transfer to REO | (110,502) | (5) | (122,475) | (2) | (88,168) | (4) | (58,925) | (3) | | | | | | | |
| Modified/Payoffs | (104,343) | (5) | (92,078) | (5) | (314,344) | (9) | (274,848) | (12) | | | | | | | |
| Ending Balance | $ 528,700 | 22 | $ 749,250 | 33 | $ 617,448 | 29 | $ 481,450 | 19 | | | | | | | |
| | REO Rollforward | | | | | | | | | | | | | | |
| | 2Q25 | | 3Q25 | | 4Q25 | | 1Q26 | | | | | | | | |
| | Carrying Value | # | Carrying Value | # | Carrying Value | # | Carrying Value | # | | | | | | | |
| Beginning Balance | $ 302,158 | 13 | $ 365,186 | 15 | $ 471,347 | 16 | $ 498,938 | 19 | | | | | | | |
| Transfer to REO | 67,977 | 3 | 107,556 | 2 | 72,868 | 4 | 59,017 | 3 | | | | | | | |
| Sold | (7,000) | (1) | (10,063) | (1) | (28,814) | (1) | (34,768) | (1) | | | | | | | |
| Impairment | - | | - | | (20,500) | | (12,500) | | | | | | | | |
| Other (CapEx / Depreciation) | 2,051 | | 8,668 | | 4,037 | | 10,079 | | | | | | | | |
| Ending Balance | $ 365,186 | 15 | $ 471,347 | 16 | $ 498,938 | 19 | $ 520,766 | 1 21 | | | | | | | |
| | Combined Non-Performing Assets | | | | | | | | | | | | | | |
| | 2Q25 | | 3Q25 | | 4Q25 | | 1Q26 | | | | | | | | |
| | UPB | # | UPB | # | UPB | # | UPB | # | | | | | | | |
| Beginning Balance | $ 956,069 | 41 | $ 893,886 | 37 | $ 1,220,597 | 49 | $ 1,116,386 | 48 | | | | | | | |
| Activity | (62,183) | (4) | 326,711 | 12 | (104,211) | (1) | (114,170) | (8) | | | | | | | |
| Ending Balance | $ 893,886 | 37 | $ 1,220,597 | 49 | $ 1,116,386 | 48 | $ 1,002,216 | 40 | | | | | | | |
| % of Total Portfolio | 7.5% | | 10.0% | | 8.9% | | 8.0% | | | | | | | | |
| Source: Company filings (As of March 31, 2026) | | | | | | | | | | | | | | | |
| 1) Includes $84.3M of reserves related to REO assets | | | | | | | | | | | | | | | |
arbor-realty-trust-investor-presentation-p15-t1
d6650445
Includes $84.3M of reserves related to REO assets
Icon
## Arbor has Clear Visibility to Resolution on Non-Performing Assets
- → $200M - $300M is expected to be resolved from 2Q26 -3Q26
- → Potential to rectify another ~ $100M in 4Q26
- → Throughout the remainder of 2026, Arbor is projected to take back ~ $100M of nonperforming loans as REO assets, as well as work through any remaining delinquencies
- → This aggressive resolution pace will resolve nearly all of these delinquencies by year end
1
- → ~$50M - $75M of delinquent loans (noted above) taken back as REO in 2Q26
- → Additionally, from 3Q26 -4Q26, Arbor is projected to take back between $25M - $50M of non-performing loans (noted above) as REO assets
- → We expect to resolve between $300M - $400M of these assets during the year, which will bring the REO balance down to $250M - $300M by the end of 2026
Projected Resolution for $480M of Delinquencies
Projected Resolution for $520M of REO Assets
Aggressive resolution strategy will go a long way towards improving Arbor's run rate of net interest income as these non-performing assets are dragging earnings down by $75M - $95M annually, or ~$0.35 - $0.45 per share
Icon
## Arbor Maintains a High-Quality Loan Portfolio With Active Risk Management to Mitigate Potential Loan Losses
## Experienced Team with Strong Track Record of Managing Through Cycles
## Structured
- Structured ◼ Aggressive approach to portfolio management and, when necessary, taking over assets to stabilize projects
- ◼ Partner with strong sponsors with track record of success and maintain disciplined origination principles
- ◼ For REO, resolution through disposition or invest strategically in asset's rehabilitation to improve NOI & occupancy
- ◼ Current delinquencies represent just 1.7% of FY 2020 unpaid balance and 2021 -2026 new originations of $28.1B
Allowance for Credit Losses - Structured Business ($M)
| ($M) | FY'17 | FY'18 | FY'19 | FY'20 2 | FY'21 | FY'22 | FY'23 | FY'24 | FY'25 | 1Q26 | 1Q26 w/REO |
|-------------------------------|---------|---------|---------|-----------|---------|---------|---------|---------|---------|---------|--------------|
| Beginning Balance | $ 83.7 | $ 62.8 | $ 71.1 | $ 88.4 | $ 148.3 | $ 113.2 | $ 132.6 | $ 195.7 | $ 239.0 | $ 146.0 | |
| Provision for loan losses 1 | (0.4) | 11.5 | - | 59.9 | (24.3) | 19.4 | 68.8 | 55.5 | 35.3 | 3.4 | |
| Net charge-offs 3 | (20.5) | (3.2) | - | - | (10.8) | - | (5.7) | (12.2) | (128.3) | (18.2) | |
| Ending balance | $ 62.8 | $ 71.1 | $ 71.1 | $ 148.3 | $ 113.2 | $ 132.6 | $ 195.7 | $ 239.0 | $ 146.0 | $ 131.2 | $ 215.5 4 |
| Total portfolio UPB | $2.7B | $3.3B | $4.3B | $5.5B | $12.2B | $14.5B | $12.6B | $11.3B | $12.1B | $12.0B | $12.5B |
| Ending balance % of total UPB | 2.4% | 2.2% | 1.7% | 2.7% | 0.9% | 0.9% | 1.6% | 2.1% | 1.2% | 1.1% | 1.7% |
arbor-realty-trust-investor-presentation-p17-t1
1dd7d1cf
## Agency
- ◼ Agency business credit risk is limited by nature of loan sales and servicing model
- ◼ Arbor participates in a loss-share program with Fannie Mae
- ◼ The Company has a clear history of navigating this potential guarantee with limited losses
- ◼ Marginal Fannie Mae delinquencies of 2.75% with $43M of specific reserves against ~$695M of assets
Source: Company filings (As of March 31, 2026)
1) Net of reversals
2) Includes impact of adopting current expected credit loss ('CECL') on January 1, 2020 of $17.3M
3) Includes $68.9M related to a land development legacy asset from 2006 (Homewood)
4) Includes $84.3M of reserves related to REO assets
Icon
## Highly Diversified Capital Structure
Flow chart
Source: Company-provided information
1) Amounts are as of March 31, 2026
2) Excludes Agency debt due to its short-term nature
Icon
## Unencumbered Asset Pool is Comprised of High-Quality Assets
## Unencumbered Asset Pool Composition
Pie chart
Significant unencumbered asset coverage of unsecured debt from high-quality asset pool
## Key Unencumbered Asset Pool Highlights
- ◼ $3.2B total unencumbered asset pool made up of high-quality assets
- ◼ 1.6x unencumbered assets-to-unsecured debt
- ◼ Averaging ~2.1x over last 8 quarters, significantly above the covenant requirement
- ◼ ~$775M cushion vs. 1.2x
- ◼ CLOs remain overcollateralized and are comfortably in compliance with existing overcollateralization and interest coverage covenants
- ◼ 58% of secured debt is nonrecourse and nonmark-to-market
Icon
## Over the Last 5 Years Arbor has Generated Strong Financial Results
Over the Last 5 Years Arbor has Generated Strong Financial Results
| (Amounts in 000s, except per share amounts) | Year Ended 2021 | Year Ended 2022 | Year Ended 2023 | Year Ended 2024 | Year Ended 2025 | Quarter Ended 1Q26 |
|-----------------------------------------------|-------------------|-------------------|-------------------|-------------------|-------------------|----------------------|
| Net interest income | $ 254,082 | $ 390,784 | $ 427,991 | $ 363,258 | $ 238,172 | $ 59,845 |
| Servicing revenue | 166,170 | 196,570 | 208,278 | 202,819 | 190,729 | 45,079 |
| Gain on sale, incl. fee based services, net | 123,037 | 72,904 | 72,522 | 74,932 | 70,670 | 12,505 |
| Net operating income (loss) on REOs | 34,610 | (259) | (189) | (168) | (6,633) | (3,904) |
| Income from equity affiliates | - | 14,247 | 24,281 | 5,772 | 50,880 | 4,411 |
| Other income | 7,448 | (2,359) | 4,867 | 7,254 | 10,537 | 2,225 |
| Total net revenues | 585,347 | 671,887 | 737,750 | 653,867 | 554,355 | 120,161 |
| Total operating expenses | 237,155 | 227,282 | 223,404 | 239,689 | 237,096 | 63,031 |
| Realized loan reserves / (recoveries) | 12,575 | (2,045) | 20,499 | 14,790 | 29,707 | 9,425 |
| Preferred stock dividends | 21,888 | 40,954 | 41,368 | 41,368 | 41,368 | 10,342 |
| Distributable earnings1 | $ 313,729 | $ 405,696 | $ 452,479 | $ 358,020 | $ 246,184 | $ 37,363 |
| Distributable earnings ROE on common equity | 18.5% | 18.2% | 17.8% | 14.0% | 9.9% | 6.3% |
| Distributable earnings per common share | $2.01 | $2.23 | $2.25 | $1.74 | $1.17 2 | $0.18 2 |
| Dividend per common share | $1.48 | $1.57 | $1.71 | $1.72 | $1.20 | $0.17 |
| Distributable EPS in excess of dividends | $0.53 | $0.66 | $0.54 | $0.02 | ($0.03) | $0.01 |
| Dividend payout ratio | 74% | 70% | 76% | 99% | 103% | 94% |
arbor-realty-trust-investor-presentation-p20-t1
1ec75226
Solid earnings base driven by thriving multifamily focused GSE/Agency platform as well as a well-positioned balance sheet business with entrenched low-cost CLOs that allow for outsized levered returns
Source: Company filings (As of March 31, 2026)
- 1) Distributable Earnings is a non-GAAP measure that excludes certain one-time items, as well as certain non-cash items. These adjustments are reflected on the appropriate line items shown on this page
2) $1.07 including realized losses totaling $22.6M in 2025; $0.07 including realized losses totaling $22.9M in 1Q26
Icon
## Historical Reconciliation of Distributable Earnings to GAAP Net Income
Historical Reconciliation of Distributable Earnings to GAAP Net Income (Amounts in 000s, except per share amounts)
| (Amounts in 000s, except per share amounts) | Year Ended 2021 | Year Ended 2022 | Year Ended 2023 | Year Ended 2024 | Year Ended 2025 | Quarter Ended 1Q26 |
|----------------------------------------------------|-------------------|-------------------|-------------------|-------------------|-------------------|----------------------|
| Net income attributable to common stockholders | $ 317,412 | $ 284,829 | $ 330,065 | $ 223,272 | $ 107,427 | $ 629 |
| Adjustments: | | | | | | |
| Net income attributable to noncontrolling interest | 38,507 | 28,044 | 29,122 | 19,278 | 9,033 | 52 |
| Income from mortgage servicing rights | (130,230) | (69,346) | (69,912) | (51,272) | (54,532) | (9,660) |
| Deferred tax provision (benefit) | 10,892 | (1,741) | (7,349) | (11,613) | 3,773 | (2,580) |
| Amortization and write-offs of MSRs | 91,356 | 104,378 | 77,829 | 76,922 | 81,112 | 19,340 |
| Depreciation and amortization | 10,900 | 11,069 | 16,425 | 12,040 | 26,217 | 7,814 |
| Loss on extinguishment of debt | 3,374 | 4,933 | 1,561 | 412 | 2,919 | – |
| Provision for credit losses, net | (39,856) | 25,077 | 68,642 | 65,537 | 32,487 | (70) |
| Loss (gain) on derivative instruments, net | 432 | 3,480 | (8,844) | 9,212 | (3,379) | 1,298 |
| (Gain) loss on real estate | (2,466) | – | – | – | 27,338 | 14,636 |
| Loss on redemption of preferred stock | 3,479 | – | – | – | – | – |
| Stock-based compensation | 9,929 | 14,973 | 14,940 | 14,232 | 13,789 | 5,904 |
| Distributable earnings1 | $ 313,729 | $ 405,696 | $ 452,479 | $ 358,020 | $ 246,184 | $ 37,363 |
| Distributable earnings per common share2 | $2.01 | $2.23 | $2.25 | $1.74 | $1.17 | $0.18 |
arbor-realty-trust-investor-presentation-p21-t1
f992a242
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
$1.07 including realized losses totaling $22.6M in 2025; $0.07 including realized losses totaling $22.9M in 1Q26
Icon