001-32136 |
20-0057959 | ||||
(COMMISSION FILE NUMBER) | (IRS EMPLOYER ID. NUMBER) |
333 Earle Ovington Boulevard, Suite 900 |
11553 |
||||
Uniondale, New York |
(ZIP CODE) | ||||
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading symbols | Name of each exchange on which registered | ||||||||||||
Common Stock, par value $0.01 per share | ABR | New York Stock Exchange | ||||||||||||
Preferred Stock, 6.375% Series D Cumulative Redeemable, par value $0.01 per share | ABR-PD | New York Stock Exchange | ||||||||||||
Preferred Stock, 6.25% Series E Cumulative Redeemable, par value $0.01 per share | ABR-PE | New York Stock Exchange | ||||||||||||
Preferred Stock, 6.25% Series F Fixed-to-Floating Rate Cumulative Redeemable, par value $0.01 per share | ABR-PF | New York Stock Exchange |
Exhibit Number | Exhibit | |||||||
104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. |
ARBOR REALTY TRUST, INC. | ||||||||
By: | /s/ Paul Elenio | |||||||
Name: | Paul Elenio | |||||||
Title: | Chief Financial Officer | |||||||
Date: February 16, 2024 |
Arbor Realty Trust Reports Fourth Quarter and Full Year 2023 Results and Declares Dividend of $0.43 per Share | |||||
February 16, 2024 | Page 2 |
Agency Loan Volume (in thousands) | |||||||||||||||||||||||
Quarter Ended | Year Ended | ||||||||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | ||||||||||||||||||||
Fannie Mae | $ | 1,177,203 | $ | 721,398 | $ | 3,773,532 | $ | 2,919,566 | |||||||||||||||
Freddie Mac | 98,370 | 339,241 | 756,827 | 1,353,001 | |||||||||||||||||||
Private Label | 140,606 | 67,965 | 299,934 | 217,542 | |||||||||||||||||||
FHA | 26,493 | 19,215 | 257,199 | 188,394 | |||||||||||||||||||
SFR - Fixed Rate | — | 2,030 | 19,328 | 89,683 | |||||||||||||||||||
Total Originations | $ | 1,442,672 | $ | 1,149,849 | $ | 5,106,820 | $ | 4,768,186 | |||||||||||||||
Total Loan Sales | $ | 1,270,356 | $ | 1,275,420 | $ | 4,889,199 | $ | 5,438,623 | |||||||||||||||
Total Loan Commitments | $ | 1,362,379 | $ | 1,211,347 | $ | 5,207,148 | $ | 5,146,718 |
Arbor Realty Trust Reports Fourth Quarter and Full Year 2023 Results and Declares Dividend of $0.43 per Share | |||||
February 16, 2024 | Page 3 |
Fee-Based Servicing Portfolio ($ in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||
UPB | Wtd. Avg. Fee (bps) | Wtd. Avg. Life (years) | UPB | Wtd. Avg. Fee (bps) | Wtd. Avg. Life (years) | UPB | Wtd. Avg. Fee (bps) | Wtd. Avg. Life (years) | |||||||||||||||||||||||||||||||||||||||||||||
Fannie Mae | $ | 21,264,578 | 47.4 | 7.4 | $ | 20,463,620 | 48.3 | 7.7 | $ | 19,038,124 | 50.2 | 8.0 | |||||||||||||||||||||||||||||||||||||||||
Freddie Mac | 5,181,933 | 24.0 | 8.5 | 5,184,888 | 24.2 | 8.5 | 5,153,207 | 25.0 | 9.0 | ||||||||||||||||||||||||||||||||||||||||||||
Private Label | 2,510,449 | 19.5 | 6.7 | 2,371,475 | 19.2 | 7.3 | 2,074,859 | 18.5 | 7.6 | ||||||||||||||||||||||||||||||||||||||||||||
FHA | 1,359,624 | 14.4 | 19.2 | 1,322,832 | 14.5 | 19.9 | 1,155,893 | 14.9 | 19.5 | ||||||||||||||||||||||||||||||||||||||||||||
Bridge | 379,425 | 10.9 | 3.2 | 305,950 | 11.2 | 3.6 | 301,182 | 12.5 | 1.7 | ||||||||||||||||||||||||||||||||||||||||||||
SFR-Fixed Rate | 287,446 | 20.1 | 5.1 | 287,942 | 20.1 | 5.8 | 274,764 | 19.8 | 6.0 | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 30,983,455 | 39.1 | 8.0 | $ | 29,936,707 | 39.7 | 8.3 | $ | 27,998,029 | 41.1 | 8.6 |
Arbor Realty Trust Reports Fourth Quarter and Full Year 2023 Results and Declares Dividend of $0.43 per Share | |||||
February 16, 2024 | Page 4 |
Structured Portfolio Activity ($ in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Quarter Ended | Year Ended | ||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||
UPB | % | UPB | % | UPB | % | UPB | % | ||||||||||||||||||||||||||||||||||||||||
Bridge: | |||||||||||||||||||||||||||||||||||||||||||||||
Multifamily | $ | 38,700 | 14 | % | $ | 92,000 | 38 | % | $ | 415,330 | 42 | % | $ | 5,468,222 | 89 | % | |||||||||||||||||||||||||||||||
SFR | 198,629 | 75 | % | 140,379 | 59 | % | 524,060 | 54 | % | 613,819 | 10 | % | |||||||||||||||||||||||||||||||||||
237,329 | 89 | % | 232,379 | 97 | % | 939,390 | 96 | % | 6,082,041 | 99 | % | ||||||||||||||||||||||||||||||||||||
Mezzanine/Preferred Equity | 28,829 | 11 | % | 7,779 | 3 | % | 43,953 | 4 | % | 69,606 | 1 | % | |||||||||||||||||||||||||||||||||||
Total Originations | $ | 266,158 | 100 | % | $ | 240,158 | 100 | % | $ | 983,343 | 100 | % | $ | 6,151,647 | 100 | % | |||||||||||||||||||||||||||||||
Number of Loans Originated | 58 | 42 | 150 | 318 | |||||||||||||||||||||||||||||||||||||||||||
SFR Commitments | $ | 466,703 | $ | 429,452 | $ | 1,150,687 | $ | 1,086,833 | |||||||||||||||||||||||||||||||||||||||
Runoff | $ | 817,394 | $ | 664,792 | $ | 3,354,055 | $ | 3,818,554 |
Structured Portfolio ($ in thousands) | |||||||||||||||||||||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||
UPB | % | UPB | % | UPB | % | ||||||||||||||||||||||||||||||
Bridge: | |||||||||||||||||||||||||||||||||||
Multifamily | $ | 10,789,936 | 86 | % | $ | 11,421,819 | 87 | % | $ | 12,830,999 | 89 | % | |||||||||||||||||||||||
SFR | 1,316,803 | 10 | % | 1,163,648 | 9 | % | 927,373 | 6 | % | ||||||||||||||||||||||||||
Other | 166,505 | 1 | % | 205,505 | 2 | % | 337,682 | 2 | % | ||||||||||||||||||||||||||
12,273,244 | 97 | % | 12,790,972 | 98 | % | 14,096,054 | 97 | % | |||||||||||||||||||||||||||
Mezzanine/Preferred Equity | 334,198 | 3 | % | 321,729 | 2 | % | 324,224 | 2 | % | ||||||||||||||||||||||||||
SFR Permanent | 7,564 | <1% | 9,694 | <1% | 35,854 | <1% | |||||||||||||||||||||||||||||
Total Portfolio | $ | 12,615,006 | 100 | % | $ | 13,122,395 | 100 | % | $ | 14,456,132 | 100 | % |
Arbor Realty Trust Reports Fourth Quarter and Full Year 2023 Results and Declares Dividend of $0.43 per Share | |||||
February 16, 2024 | Page 5 |
Arbor Realty Trust Reports Fourth Quarter and Full Year 2023 Results and Declares Dividend of $0.43 per Share | |||||
February 16, 2024 | Page 6 |
Contact: |
Arbor Realty Trust, Inc.
Paul Elenio, Chief Financial Officer
516-506-4422
pelenio@arbor.com
|
Arbor Realty Trust Reports Fourth Quarter and Full Year 2023 Results and Declares Dividend of $0.43 per Share | |||||
February 16, 2024 | Page 7 |
Quarter Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||||||||
Interest income | $ | 331,060 | $ | 320,597 | $ | 1,331,219 | $ | 948,401 | |||||||||||||||
Interest expense | 227,479 | 207,538 | 903,228 | 557,617 | |||||||||||||||||||
Net interest income | 103,581 | 113,059 | 427,991 | 390,784 | |||||||||||||||||||
Other revenue: | |||||||||||||||||||||||
Gain on sales, including fee-based services, net | 16,727 | 23,290 | 72,522 | 55,816 | |||||||||||||||||||
Mortgage servicing rights | 21,144 | 17,059 | 69,912 | 69,346 | |||||||||||||||||||
Servicing revenue, net | 33,073 | 27,679 | 130,449 | 92,192 | |||||||||||||||||||
Property operating income | 1,447 | 846 | 5,708 | 1,877 | |||||||||||||||||||
Gain on derivative instruments, net | 10,345 | 16,526 | 6,763 | 26,609 | |||||||||||||||||||
Other income (loss), net | 2,571 | (1,500) | 7,667 | (17,563) | |||||||||||||||||||
Total other revenue | 85,307 | 83,900 | 293,021 | 228,277 | |||||||||||||||||||
Other expenses: | |||||||||||||||||||||||
Employee compensation and benefits | 36,270 | 42,089 | 159,788 | 161,825 | |||||||||||||||||||
Selling and administrative | 12,686 | 13,030 | 51,260 | 53,990 | |||||||||||||||||||
Property operating expenses | 1,670 | 694 | 5,897 | 2,136 | |||||||||||||||||||
Depreciation and amortization | 2,446 | 2,640 | 9,743 | 8,732 | |||||||||||||||||||
Provision for loss sharing (net of recoveries) | 3,168 | 4,061 | 15,695 | 1,862 | |||||||||||||||||||
Provision for credit losses (net of recoveries) | 18,399 | 11,469 | 73,446 | 21,169 | |||||||||||||||||||
Litigation settlement | — | 7,350 | — | 7,350 | |||||||||||||||||||
Total other expenses | 74,639 | 81,333 | 315,829 | 257,064 | |||||||||||||||||||
Income before extinguishment of debt, income from equity affiliates, and income taxes | 114,249 | 115,626 | 405,183 | 361,997 | |||||||||||||||||||
Loss on extinguishment of debt | — | (320) | (1,561) | (4,933) | |||||||||||||||||||
Income (loss) from equity affiliates | 3,586 | (4,260) | 24,281 | 14,247 | |||||||||||||||||||
Provision for income taxes | (7,911) | (4,318) | (27,347) | (17,484) | |||||||||||||||||||
Net income | 109,924 | 106,728 | 400,556 | 353,827 | |||||||||||||||||||
Preferred stock dividends | 10,342 | 10,342 | 41,369 | 40,954 | |||||||||||||||||||
Net income attributable to noncontrolling interest | 7,923 | 8,234 | 29,122 | 28,044 | |||||||||||||||||||
Net income attributable to common stockholders | $ | 91,659 | $ | 88,152 | $ | 330,065 | $ | 284,829 | |||||||||||||||
Basic earnings per common share | $ | 0.49 | $ | 0.51 | $ | 1.79 | $ | 1.72 | |||||||||||||||
Diluted earnings per common share | $ | 0.48 | $ | 0.49 | $ | 1.75 | $ | 1.67 | |||||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||||||
Basic | 188,503,682 | 174,444,084 | 184,641,642 | 165,355,167 | |||||||||||||||||||
Diluted | 222,861,214 | 209,743,771 | 218,843,613 | 199,112,630 | |||||||||||||||||||
Dividends declared per common share | $ | 0.43 | $ | 0.40 | $ | 1.68 | $ | 1.54 |
Arbor Realty Trust Reports Fourth Quarter and Full Year 2023 Results and Declares Dividend of $0.43 per Share | |||||
February 16, 2024 | Page 8 |
December 31, 2023 | December 31, 2022 | ||||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | 928,974 | $ | 534,357 | |||||||
Restricted cash | 608,233 | 713,808 | |||||||||
Loans and investments, net (allowance for credit losses of $195,664 and $132,559) |
12,377,806 | 14,254,674 | |||||||||
Loans held-for-sale, net | 551,707 | 354,070 | |||||||||
Capitalized mortgage servicing rights, net | 391,254 | 401,471 | |||||||||
Securities held-to-maturity, net (allowance for credit losses of $6,256 and $3,153) |
155,279 | 156,547 | |||||||||
Investments in equity affiliates | 79,303 | 79,130 | |||||||||
Due from related party | 64,421 | 77,419 | |||||||||
Goodwill and other intangible assets | 91,378 | 96,069 | |||||||||
Other assets | 490,281 | 371,440 | |||||||||
Total assets | $ | 15,738,636 | $ | 17,038,985 | |||||||
Liabilities and Equity: | |||||||||||
Credit and repurchase facilities | $ | 3,237,827 | $ | 3,841,814 | |||||||
Securitized debt | 6,935,010 | 7,849,270 | |||||||||
Senior unsecured notes | 1,333,968 | 1,385,994 | |||||||||
Convertible senior unsecured notes | 283,118 | 280,356 | |||||||||
Junior subordinated notes to subsidiary trust issuing preferred securities | 143,896 | 143,128 | |||||||||
Due to related party | 13,799 | 12,350 | |||||||||
Due to borrowers | 121,707 | 61,237 | |||||||||
Allowance for loss-sharing obligations | 71,634 | 57,168 | |||||||||
Other liabilities | 343,072 | 335,789 | |||||||||
Total liabilities | 12,484,031 | 13,967,106 | |||||||||
Equity: | |||||||||||
Arbor Realty Trust, Inc. stockholders' equity: | |||||||||||
Preferred stock, cumulative, redeemable, $0.01 par value: 100,000,000 shares authorized, shares issued and outstanding by period: | 633,684 | 633,684 | |||||||||
Special voting preferred shares - 16,293,589 shares |
|||||||||||
6.375% Series D - 9,200,000 shares |
|||||||||||
6.25% Series E - 5,750,000 shares |
|||||||||||
6.25% Series F - 11,342,000 shares |
|||||||||||
Common stock, $0.01 par value: 500,000,000 shares authorized - 188,505,264 and 178,230,522 shares issued and outstanding |
1,885 | 1,782 | |||||||||
Additional paid-in capital | 2,367,188 | 2,204,481 | |||||||||
Retained earnings | 115,216 | 97,049 | |||||||||
Total Arbor Realty Trust, Inc. stockholders’ equity | 3,117,973 | 2,936,996 | |||||||||
Noncontrolling interest | 136,632 | 134,883 | |||||||||
Total equity | 3,254,605 | 3,071,879 | |||||||||
Total liabilities and equity | $ | 15,738,636 | $ | 17,038,985 |
Arbor Realty Trust Reports Fourth Quarter and Full Year 2023 Results and Declares Dividend of $0.43 per Share | |||||
February 16, 2024 | Page 9 |
Quarter Ended December 31, 2023 |
|||||||||||||||||||||||
Structured Business |
Agency Business |
Other(1) |
Consolidated | ||||||||||||||||||||
Interest income | $ | 317,132 | $ | 13,928 | $ | - | $ | 331,060 | |||||||||||||||
Interest expense | 221,747 | 5,732 | - | 227,479 | |||||||||||||||||||
Net interest income | 95,385 | 8,196 | - | 103,581 | |||||||||||||||||||
Other revenue: | |||||||||||||||||||||||
Gain on sales, including fee-based services, net | - | 16,727 | - | 16,727 | |||||||||||||||||||
Mortgage servicing rights | - | 21,144 | - | 21,144 | |||||||||||||||||||
Servicing revenue | - | 49,246 | - | 49,246 | |||||||||||||||||||
Amortization of MSRs | - | (16,173) | - | (16,173) | |||||||||||||||||||
Property operating income | 1,447 | - | - | 1,447 | |||||||||||||||||||
Gain on derivative instruments, net | - | 10,345 | - | 10,345 | |||||||||||||||||||
Other income | 1,448 | 1,123 | - | 2,571 | |||||||||||||||||||
Total other revenue | 2,895 | 82,412 | - | 85,307 | |||||||||||||||||||
Other expenses: | |||||||||||||||||||||||
Employee compensation and benefits | 11,516 | 24,754 | - | 36,270 | |||||||||||||||||||
Selling and administrative | 5,399 | 7,287 | - | 12,686 | |||||||||||||||||||
Property operating expenses | 1,670 | - | - | 1,670 | |||||||||||||||||||
Depreciation and amortization | 1,273 | 1,173 | - | 2,446 | |||||||||||||||||||
Provision for loss sharing (net of recoveries) | - | 3,168 | - | 3,168 | |||||||||||||||||||
Provision for credit losses (net of recoveries) | 18,086 | 313 | - | 18,399 | |||||||||||||||||||
Total other expenses | 37,944 | 36,695 | - | 74,639 | |||||||||||||||||||
Income before income from equity affiliates and income taxes | 60,336 | 53,913 | - | 114,249 | |||||||||||||||||||
Income from equity affiliates | 3,586 | - | - | 3,586 | |||||||||||||||||||
Benefit from (provision for) income taxes | 497 | (8,408) | - | (7,911) | |||||||||||||||||||
Net income | 64,419 | 45,505 | - | 109,924 | |||||||||||||||||||
Preferred stock dividends | 10,342 | - | - | 10,342 | |||||||||||||||||||
Net income attributable to noncontrolling interest | - | - | 7,923 | 7,923 | |||||||||||||||||||
Net income attributable to common stockholders | $ | 54,077 | $ | 45,505 | $ | (7,923) | $ | 91,659 |
Arbor Realty Trust Reports Fourth Quarter and Full Year 2023 Results and Declares Dividend of $0.43 per Share | |||||
February 16, 2024 | Page 10 |
December 31, 2023 | |||||||||||||||||
Structured Business |
Agency Business |
Consolidated | |||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents | $ | 619,487 | $ | 309,487 | $ | 928,974 | |||||||||||
Restricted cash | 595,342 | 12,891 | 608,233 | ||||||||||||||
Loans and investments, net | 12,377,806 | - | 12,377,806 | ||||||||||||||
Loans held-for-sale, net | - | 551,707 | 551,707 | ||||||||||||||
Capitalized mortgage servicing rights, net | - | 391,254 | 391,254 | ||||||||||||||
Securities held-to-maturity, net | - | 155,279 | 155,279 | ||||||||||||||
Investments in equity affiliates | 79,303 | - | 79,303 | ||||||||||||||
Goodwill and other intangible assets | 12,500 | 78,878 | 91,378 | ||||||||||||||
Other assets and due from related party | 453,073 | 101,629 | 554,702 | ||||||||||||||
Total assets | $ | 14,137,511 | $ | 1,601,125 | $ | 15,738,636 | |||||||||||
Liabilities: | |||||||||||||||||
Debt obligations | $ | 11,520,492 | $ | 413,327 | $ | 11,933,819 | |||||||||||
Allowance for loss-sharing obligations | - | 71,634 | 71,634 | ||||||||||||||
Other liabilities and due to related party | 369,588 | 108,990 | 478,578 | ||||||||||||||
Total liabilities | $ | 11,890,080 | $ | 593,951 | $ | 12,484,031 |
Arbor Realty Trust Reports Fourth Quarter and Full Year 2023 Results and Declares Dividend of $0.43 per Share | |||||
February 16, 2024 | Page 11 |
Quarter Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income attributable to common stockholders | $ | 91,659 | $ | 88,152 | $ | 330,065 | $ | 284,829 | |||||||||||||||
Adjustments: | |||||||||||||||||||||||
Net income attributable to noncontrolling interest | 7,923 | 8,234 | 29,122 | 28,044 | |||||||||||||||||||
Income from mortgage servicing rights | (21,144) | (17,059) | (69,912) | (69,346) | |||||||||||||||||||
Deferred tax (benefit) provision | (719) | 6,092 | (7,349) | (1,741) | |||||||||||||||||||
Amortization and write-offs of MSRs | 19,145 | 22,528 | 77,829 | 104,378 | |||||||||||||||||||
Depreciation and amortization | 4,115 | 3,225 | 16,425 | 11,069 | |||||||||||||||||||
Loss on extinguishment of debt | - | 320 | 1,561 | 4,933 | |||||||||||||||||||
Provision for credit losses, net | 11,206 | 14,823 | 68,642 | 25,077 | |||||||||||||||||||
(Gain) loss on derivative instruments, net | (10,880) | (14,992) | (8,844) | 3,480 | |||||||||||||||||||
Stock-based compensation | 2,799 | 2,643 | 14,940 | 14,973 | |||||||||||||||||||
Distributable earnings (1) | $ | 104,104 | $ | 113,966 | $ | 452,479 | $ | 405,696 | |||||||||||||||
Diluted distributable earnings per share (1) | $ | 0.51 | $ | 0.60 | $ | 2.25 | $ | 2.23 | |||||||||||||||
Diluted weighted average shares outstanding (1) (2) | 205,498,651 | 191,273,691 | 201,549,221 | 182,224,404 |