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

Published

Company Highlights:

  • GAAP net income of $0.31 per diluted common share
  • Distributable earnings¹ of $0.47, or $0.48 per diluted common share, excluding a $1.6 million realized loss on a non-performing loan that was previously reserved for
  • Declares cash dividend on common stock of $0.43 per share representing a 91% payout ratio
  • Strong liquidity position with ~$800 million in cash and liquidity and ~$600 million of restricted cash in CLO vehicles with a cost of debt below the current market²
  • Agency loan originations of $846.3 million; a servicing portfolio of ~$31.38 billion, up 9% from 1Q23
  • Structured loan originations of $255.9 million, runoff of $640.0 million and a portfolio of ~$12.25 billion
  • Repurchased $11.4 million of common stock in April 2024 at an average price of $12.19 per share, reflecting an ~4% discount to book value

UNIONDALE, N.Y., May 03, 2024 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE: ABR), today announced financial results for the first quarter ended March 31, 2024. Arbor reported net income for the quarter of $57.9 million, or $0.31 per diluted common share, compared to net income of $84.3 million, or $0.46 per diluted common share for the quarter ended March 31, 2023. Distributable earnings for the quarter was $96.7 million, or $0.47 per diluted common share, compared to $122.2 million, or $0.62 per diluted common share for the quarter ended March 31, 2023.

Agency Business

Loan Origination Platform

  Agency Loan Volume (in thousands)
  Quarter Ended
  March 31, 2024 December 31, 2023
Fannie Mae $458,429  $1,177,203 
Freddie Mac  370,102   98,370 
FHA     26,493 
Private Label  15,410   140,606 
SFR-Fixed Rate  2,318    
Total Originations $846,259  $1,442,672 
     
Total Loan Sales $1,085,374  $1,270,356 
     
Total Loan Commitments $934,243  $1,362,379 
         

For the quarter ended March 31, 2024, the Agency Business generated revenues of $66.6 million, compared to $96.3 million for the fourth quarter of 2023. Gain on sales, including fee-based services, net was $16.7 million for the quarter, reflecting a margin of 1.54%, compared to $16.7 million and 1.32% for the fourth quarter of 2023. Income from mortgage servicing rights was $10.2 million for the quarter, reflecting a rate of 1.32% as a percentage of loan commitments (excluding $160.2 million of loan commitments not serviced for a fee), compared to $21.1 million and 1.55% for the fourth quarter of 2023.

At March 31, 2024, loans held-for-sale was $322.9 million, with financing associated with these loans totaling $312.0 million.

Fee-Based Servicing Portfolio

The Company’s fee-based servicing portfolio totaled $31.38 billion at March 31, 2024. Servicing revenue, net was $31.5 million for the quarter and consisted of servicing revenue of $48.2 million, net of amortization of mortgage servicing rights totaling $16.6 million.

  Fee-Based Servicing Portfolio ($ in thousands)
  March 31, 2024 December 31, 2023
  UPB Wtd. Avg. Fee (bps) Wtd. Avg. Life (years) UPB Wtd. Avg. Fee (bps) Wtd. Avg. Life (years)
Fannie Mae $21,548,221  47.1 7.2 $21,264,578  47.4 7.4
Freddie Mac  5,301,291  23.4 7.7  5,181,933  24.0 8.5
Private Label  2,524,013  18.9 6.3  2,510,449  19.5 6.7
FHA  1,365,329  14.4 19.0  1,359,624  14.4 19.2
Bridge  380,712  10.9 3.6  379,425  10.9 3.2
SFR-Fixed Rate  265,429  20.1 5.0  287,446  20.1 5.1
Total $31,384,995  38.8 7.7 $30,983,455  39.1 8.0
                 

Loans sold under the Fannie Mae program contain an obligation to partially guarantee the performance of the loan (“loss-sharing obligations”) and includes $34.7 million for the fair value of the guarantee obligation undertaken at March 31, 2024. The Company recorded a $0.3 million net provision for loss sharing associated with CECL for the first quarter of 2024. At March 31, 2024, the Company’s total CECL allowance for loss-sharing obligations was $38.1 million, representing 0.18% of the Fannie Mae servicing portfolio.

Structured Business

Portfolio and Investment Activity

  Structured Portfolio Activity ($ in thousands)
  Quarter Ended
  March 31, 2024 December 31, 2023
  UPB % UPB %
Bridge:        
Multifamily $39,235  15% $38,700  14%
SFR  171,490  67%  198,629  75%
   210,725  82%  237,329  89%
      .  
Mezzanine/Preferred Equity  45,129  18%  28,829  11%
Total Originations $255,854  100% $266,158  100%
         
Number of Loans Originated  59     58   
         
SFR Commitments $411,617    $466,703   
         
Loan Runoff $640,018    $817,394   

  Structured Portfolio ($ in thousands)
  March 31, 2024 December 31, 2023
  UPB % UPB %
Bridge:        
Multifamily $10,254,756  84% $10,789,936  86%
SFR  1,445,028  12%  1,316,803  10%
Other  166,505  1%  166,505  1%
   11,866,289  97%  12,273,244  97%
         
Mezzanine/Preferred Equity  377,845  3%  334,198  3%
SFR Permanent  5,728  

In This Story

ABR