ABR · Arbor Realty Trust, Inc.

Arbor Realty Trust's first quarter 2026 results reflect a significant decline in GAAP net income to $0.6 million from $30.4 million in the prior year quarter, primarily due to $22.9 million of net realized losses from the resolution of certain legacy assets and a $12.5 million impairment on real estate owned properties. Net interest income fell to $59.8 million from $75.4 million, driven by higher interest expense ($175.2 million vs. $165.3 million) despite stable interest income. Total other revenue decreased slightly to $57.5 million, with gains on sales and fee-based services remaining flat at $12.5 million, while servicing revenue net was $25.7 million. However, total other expenses surged to $106.6 million from $80.4 million, largely due to increased property operating expenses ($12.0 million vs. $3.5 million) and the impairment charge. The company's distributable earnings, a non-GAAP measure, were $14.4 million, or $0.07 per diluted share, down from $57.3 million, or $0.28 per share, in Q1 2025. Excluding the $22.9 million net realized losses, distributable earnings were $0.18 per diluted share. The structured loan portfolio contracted to $12.00 billion from $12.11 billion, with originations of $767.6 million and runoff of $861.0 million. The company closed a $762.6 million collateralized securitization, generating approximately $35 million of additional liquidity. Arbor also repurchased $30.7 million of stock at an average price of $7.46 per share, representing 66% of book value. The board declared a quarterly cash dividend of $0.17 per share, payable June 5, 2026. The results underscore ongoing challenges in the real estate credit environment, with elevated provisions for credit losses and loss sharing, but the company continues to manage its portfolio through modifications and selective asset sales.