ea79061bb6be6ce0-p7-t1: Arbor has Two Distinct Yet Complementary Business Lines
As printed (page 7)
Extraction output (red = defect, gold = unverified, green = added label)
| Structured Business | Agency Business | |
|---|---|---|
| Description | ▪ Originate real estate loans and hold on balance sheet<br>▪ Invests in the multifamily, Single-Family Rental, and commercial real estate markets | ▪ Originate, sell, and service real estate loans for GSEs<br>▪ Short-term assets: Loans held-for-sale1<br>▪ Long-term assets: Capitalized mortgage servicing rights ("MSRs")2 |
| Highlights | ▪ Best-in-class balance sheet loan origination business<br>▪ Strong risk-adjusted returns<br>▪ Proprietary Single-Family Rental platform<br>▪ Weighted average of ~21 months to maturity3 | ▪ Capital-light business<br>▪ High barriers to entry<br>▪ Visibility on prepayment protected annual servicing fee revenue of ~$129M4<br>▪ Weighted average life of portfolio of ~6 years |
| Portfolio ($B) | $12.0B Structured loan portfolio: APC $0.3, Multifamily bridge loans $7.9, SFR bridge loans $3.3, Mezzanine and Preferred Equity loans $0.5 | $36.3B GSE servicing portfolio: Fannie Mae $24.3, Freddie Mac $7.4, Private Label $2.5, Other $2.1 |
| Income streams | Interest income on loans | % of LTM Agency Net Revenue5<br>▪ Servicing fees4 43%<br>▪ Gain on sale of loans1,6 24%<br>▪ Interest earned on escrows 17%<br>▪ Interest income on loans held-for-sale1 16% |
| Assets ($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% |
Flagged decisions
- (1,1) unverified '▪ Originate real estate loans and hold on balance sheet<br>▪ Invests in the multifamily, Single-Family Rental, and commercial real estate markets': The image shows printed bullet points in the Structured Business Description cell: '▪ Originate real estate loans and hold on balance sheet' and '▪ Invests in the multifamily, Single-Family Rental, and commercial real estate markets'.
- (1,2) unverified '▪ Originate, sell, and service real estate loans for GSEs<br>▪ Short-term assets: Loans held-for-sale1<br>▪ Long-term assets: Capitalized mortgage servicing rights ("MSRs")2': The image shows printed bullet points in the Agency Business Description cell: '▪ Originate, sell, and service real estate loans for GSEs', '▪ Short-term assets: Loans held-for-sale¹', and '▪ Long-term assets: Capitalized mortgage servicing rights ("MSRs")²'.
- (2,1) unverified '▪ Best-in-class balance sheet loan origination business<br>▪ Strong risk-adjusted returns<br>▪ Proprietary Single-Family Rental platform<br>▪ Weighted average of ~21 months to maturity3': The image shows printed bullet points in the Structured Business Highlights cell: '▪ Best-in-class balance sheet loan origination business', '▪ Strong risk-adjusted returns', '▪ Proprietary Single-Family Rental platform', and '▪ Weighted average of ~21 months to maturity³'.
- (2,2) unverified '▪ Capital-light business<br>▪ High barriers to entry<br>▪ Visibility on prepayment protected annual servicing fee revenue of ~$129M4<br>▪ Weighted average life of portfolio of ~6 years': The image shows printed bullet points in the Agency Business Highlights cell: '▪ Capital-light business', '▪ High barriers to entry', '▪ Visibility on prepayment protected annual servicing fee revenue of ~$129M⁴', and '▪ Weighted average life of portfolio of ~6 years'.
- (3,1) unverified '$12.0B Structured loan portfolio: APC $0.3, Multifamily bridge loans $7.9, SFR bridge loans $3.3, Mezzanine and Preferred Equity loans $0.5': The image shows a pie chart labeled '$12.0B Structured loan portfolio' with breakdown text: 'APC $0.3', 'Multifamily bridge loans $7.9', 'SFR bridge loans $3.3', and 'Mezzanine and Preferred Equity loans $0.5'.
- (3,2) unverified '$36.3B GSE servicing portfolio: Fannie Mae $24.3, Freddie Mac $7.4, Private Label $2.5, Other $2.1': The image shows a pie chart labeled '$36.3B GSE servicing portfolio' with breakdown text: 'Fannie Mae $24.3', 'Freddie Mac $7.4', 'Private Label $2.5', and 'Other $2.1'.
- (4,2) unverified '% of LTM Agency Net Revenue5<br>▪ Servicing fees4 43%<br>▪ Gain on sale of loans1,6 24%<br>▪ Interest earned on escrows 17%<br>▪ Interest income on loans held-for-sale1 16%': The image shows printed text in the Agency Business Income streams cell: '% of LTM Agency Net Revenue⁵' as a header, followed by bullet points '▪ Servicing fees⁴ 43%', '▪ Gain on sale of loans¹,⁶ 24%', '▪ Interest earned on escrows 17%', and '▪ Interest income on loans held-for-sale¹ 16%'.
