Enhanced Investments - Financial Portal

Arbor Realty Trust Reports Third Quarter 2024 Results and Declares Dividend of $0.43 per Share

Published: 2024-11-01 12:15:00 ET

Company Highlights:

GAAP net income of $0.31 and distributable earnings of $0.43, per diluted common share1
Declares cash dividend on common stock of $0.43 per share
Successfully delevered the Company 25% from a peak debt to equity ratio of 4:1 in 2023, to 3:1 at 3Q242
Cash and liquidity of ~$600 million3
Agency loan originations of $1.10 billion; a servicing portfolio of ~$33.01 billion, up 2% from 2Q24 and 10% from a year ago
Structured loan originations of $258.5 million, runoff of $521.3 million and a portfolio of ~$11.57 billion
In October 2024, issued $100.0 million of 9.00% senior notes due 2027

UNIONDALE, N.Y., Nov. 01, 2024 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE: ABR), today announced financial results for the third quarter ended September 30, 2024. Arbor reported net income for the quarter of $58.2 million, or $0.31 per diluted common share, compared to net income of $77.9 million, or $0.41 per diluted common share for the quarter ended September 30, 2023. Distributable earnings for the quarter was $88.2 million, or $0.43 per diluted common share, compared to $112.2 million, or $0.55 per diluted common share for the quarter ended September 30, 2023.

Agency Business

Loan Origination Platform

	Agency Loan Volume (in thousands)
	Quarter Ended
	September 30, 2024		June 30, 2024
Fannie Mae	$	616,211	$	742,724
Freddie Mac		378,809		346,821
Private Label		74,162		34,714
FHA		27,457		—
SFR-Fixed Rate		—		24,996
Total Originations	$	1,096,639	$	1,149,255

Total Loan Sales	$	1,118,977	$	1,135,287

Total Loan Commitments	$	1,056,490	$	1,099,713

For the quarter ended September 30, 2024, the Agency Business generated revenues of $77.4 million, compared to $76.8 million for the second quarter of 2024. Gain on sales, including fee-based services, net was $18.6 million for the quarter, reflecting a margin of 1.67%, compared to $17.4 million and 1.54% for the second quarter of 2024. Income from mortgage servicing rights was $13.2 million for the quarter, reflecting a rate of 1.25% as a percentage of loan commitments, compared to $14.5 million and 1.32% for the second quarter of 2024.

At September 30, 2024, loans held-for-sale was $326.1 million, with financing associated with these loans totaling $319.4 million.

Fee-Based Servicing Portfolio

The Company’s fee-based servicing portfolio totaled $33.01 billion at September 30, 2024. Servicing revenue, net was $31.1 million for the quarter and consisted of servicing revenue of $48.4 million, net of amortization of mortgage servicing rights totaling $17.3 million.

	Fee-Based Servicing Portfolio ($ in thousands)
	September 30, 2024			June 30, 2024
	UPB	Wtd. Avg.Fee (bps)	Wtd. Avg.Life (years)	UPB	Wtd. Avg.Fee (bps)	Wtd. Avg.Life (years)
Fannie Mae	$22,526,022	46.6	6.6	$22,114,193	46.7	7.0
Freddie Mac	5,820,026	21.9	7.1	5,587,178	22.7	7.4
Private Label	2,619,485	18.7	5.8	2,547,308	18.9	6.0
FHA	1,390,766	14.2	18.9	1,369,507	14.4	18.9
Bridge	380,379	10.9	3.0	380,547	10.9	3.4
SFR-Fixed Rate	275,081	20.1	4.6	279,962	20.1	4.9
Total	$33,011,759	38.0	7.1	$32,278,695	38.4	7.5

Loans sold under the Fannie Mae program contain an obligation to partially guarantee the performance of the loan (“loss-sharing obligations”) and includes $34.8 million for the fair value of the guarantee obligation undertaken at September 30, 2024. The Company recorded a $3.2 million net provision for loss sharing associated with CECL for the third quarter of 2024. At September 30, 2024, the Company’s total CECL allowance for loss-sharing obligations was $45.8 million, representing 0.20% of the Fannie Mae servicing portfolio.

Structured Business

Portfolio and Investment Activity

	Structured Portfolio Activity ($ in thousands)
	Quarter Ended
	September 30, 2024					June 30, 2024
	UPB		%			UPB		%
Bridge:
Multifamily	$	14,500		6	%	$	19,650		9	%
SFR		239,064		92	%		185,500		82	%
Land		—		—	%		10,350		4	%
		253,564		98	%		215,500		95	%
						.
Mezzanine/Preferred Equity		4,900		2	%		11,684		5	%
Total Originations	$	258,464		100	%	$	227,184		100	%

Number of Loans Originated		38					45

Commitments:
SFR	$	374,070				$	277,260
Construction - Multifamily		47,000					—
Total Commitments	$	421,070				$	277,260

Loan Runoff	$	521,341				$	629,641

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

Important disclosures

Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.

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All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.

	Structured Portfolio ($ in thousands)
	September 30, 2024					June 30, 2024
	UPB		%			UPB		%
Bridge:
Multifamily	$	9,208,954		80	%	$	9,679,128		82	%
SFR		1,783,475		15	%		1,622,269		14	%
Other		176,855		2	%		176,855		1	%
		11,169,284		97	%		11,478,252		97	%

Mezzanine/Preferred Equity		393,168		3	%		389,981		3	%
SFR Permanent		3,086		The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.