Arbor Realty Trust, Inc. (NYSE: ABR), today announced financial
results for the second quarter ended June 30, 2019. Arbor
reported net income for the quarter of $28.9 million, or $0.31 per
diluted common share, compared to $17.2 million, or $0.25 per
diluted common share for the quarter ended June 30, 2018. Adjusted
funds from operations (“AFFO”) for the quarter was $37.9 million,
or $0.33 per diluted common share, compared to $26.4 million, or
$0.29 per diluted common share for the quarter ended June 30,
2018.
1
Agency
Business
Loan
Origination Platform
Agency Loan Volume (in thousands) |
|
|
Quarter Ended |
|
|
June 30, 2019 |
|
March 31, 2019 |
Fannie Mae |
$ |
937,977 |
|
$ |
546,886 |
Freddie Mac |
|
234,851 |
|
|
192,492 |
FHA |
|
|
43,558 |
|
|
1,110 |
CMBS/Conduit |
|
71,900 |
|
|
105,425 |
Total
Originations |
$ |
1,288,286 |
|
$ |
845,913 |
|
|
|
|
|
Total Loan
Sales |
$ |
923,046 |
|
$ |
1,101,766 |
|
|
|
|
|
Total Loan
Commitments |
$ |
1,302,128 |
|
$ |
846,963 |
|
For the quarter ended
June 30, 2019, the Agency Business generated revenues of $52.7
million, compared to $47.2 million for the first quarter of 2019.
Gain on sales, including fee-based services, net was $14.2 million
for the quarter, reflecting a margin of 1.54% on loan sales,
compared to $16.4 million and 1.49% for the first quarter of 2019.
Income from mortgage servicing rights was $18.7 million for the
quarter, reflecting a rate of 1.44% as a percentage of loan
commitments, compared to $14.2 million and 1.68% for the first
quarter of 2019.
At June 30, 2019,
loans held-for-sale was $601.8 million which was primarily
comprised of unpaid principal balances totaling $597.3 million,
with financing associated with these loans totaling $597.2
million.
Fee-Based
Servicing Portfolio
Our fee-based
servicing portfolio totaled $19.46 billion at June 30, 2019, an
increase of 3% from March 31, 2019, primarily a result of $1.29
billion of new loan originations, net of $635.6 million in
portfolio runoff during the quarter. Servicing revenue, net was
$12.6 million for the quarter and consisted of servicing revenue of
$24.9 million, net of amortization of mortgage servicing rights
totaling $12.3 million.
|
|
Fee-Based Servicing Portfolio ($ in thousands) |
|
|
As of June 30, 2019 |
|
As of March 31, 2019 |
|
|
UPB |
Wtd. Avg.Fee |
Wtd. Avg.Life (in years) |
|
UPB |
Wtd. Avg.Fee |
Wtd. Avg.Life (in years) |
Fannie Mae |
|
$ |
14,122,916 |
0.495 |
% |
7.8 |
|
$ |
13,719,351 |
0.507 |
% |
7.6 |
Freddie Mac |
|
|
4,657,097 |
0.301 |
% |
10.9 |
|
|
4,515,829 |
0.303 |
% |
10.8 |
FHA |
|
|
684,527 |
0.153 |
% |
19.1 |
|
|
648,583 |
0.155 |
% |
19.6 |
Total |
|
$ |
19,464,540 |
0.436 |
% |
9.0 |
|
$ |
18,883,763 |
0.446 |
% |
8.7 |
Loans sold under the
Fannie Mae program contain an obligation to partially guarantee the
performance of the loan (“loss-sharing obligations”). At June 30,
2019, the Company’s allowance for loss-sharing obligations was
$34.4 million, representing 0.24% of the Fannie Mae servicing
portfolio.
Structured
Business
Portfolio and Investment
Activity
- Originated 47 loans totaling $1.01 billion, of which 37 were
bridge loans for $942.7 million
- Payoffs and pay downs on 43 loans totaling $503.1 million
At June 30, 2019, the
loan and investment portfolio’s unpaid principal balance, excluding
loan loss reserves, was $3.93 billion, with a weighted average
current interest pay rate of 6.64%, compared to $3.41 billion and
7.05% at March 31, 2019. Including certain fees earned and
costs associated with the loan and investment portfolio, the
weighted average current interest pay rate was 7.34% at June 30,
2019, compared to 7.71% at March 31, 2019.
The average balance of
the Company’s loan and investment portfolio during the second
quarter of 2019, excluding loan loss reserves, was $3.62 billion
with a weighted average yield of 8.24%, compared to $3.34 billion
and 7.84% for the first quarter of 2019. The increase in average
yield was primarily due to higher fees on loan payoffs in the
second quarter as compared to the first quarter, largely the result
of default interest received.
At June 30, 2019, the Company’s total loan loss
reserves were $71.1 million on five loans with an aggregate
carrying value before loan loss reserves of $131.3 million. The
Company also had two non-performing loans with a carrying value of
$2.5 million, net of related loan loss reserves of $1.7
million.
Financing
Activity
The Company completed its eleventh
collateralized securitization vehicle (“CLO XI”) totaling $650.0
million of real estate related assets and cash. Investment
grade-rated notes totaling $533.0 million were issued, and the
Company retained subordinate interests in the issuing vehicle of
$117.0 million. The facility has a three-year asset replenishment
period and an initial weighted average interest rate of 1.44% over
LIBOR, excluding fees and transaction costs.
The Company completed
the unwind of CLO VI, redeeming $250.3 million of outstanding notes
repaid with proceeds received from the refinancing of CLO VI’s
outstanding assets primarily within CLO XI, which has an interest
rate 104 basis points lower than CLO VI. As a result of this
transaction, the Company recognized an expense of $1.2 million from
the acceleration of deferred fees.
The balance of debt
that finances the Company’s loan and investment portfolio at June
30, 2019 was $3.62 billion with a weighted average interest rate
including fees of 4.96% as compared to $3.13 billion and a rate of
5.22% at March 31, 2019. The average balance of debt that finances
the Company’s loan and investment portfolio for the second quarter
of 2019 was $3.35 billion, as compared to $2.96 billion for the
first quarter of 2019. The average cost of borrowings for the
second quarter was 5.35%, compared to 5.24% for the first quarter
of 2019. The increase in average costs was primarily due to the
acceleration of fees related to the early repayment of debt.
The Company is subject to various financial
covenants and restrictions under the terms of its collateralized
securitization vehicles and financing facilities. The Company
believes it was in compliance with all financial covenants and
restrictions as of June 30, 2019 and as of the most recent
collateralized securitization vehicle determination dates in July
2019.
Capital
Markets
The Company issued 9.2
million shares of our common stock receiving net proceeds of $115.6
million. The proceeds were primarily used to make investments and
for general corporate purposes.
Dividends
The Company announced
today that its Board of Directors has declared a quarterly cash
dividend of $0.29 per share of common stock for the quarter ended
June 30, 2019, representing an increase of 4% over the prior
quarter dividend of $0.28 per share and 16% from a year ago. The
dividend is payable on September 3, 2019 to common stockholders of
record on August 15, 2019. The ex-dividend date is August 14,
2019.
The Company also
announced today that its Board of Directors has declared cash
dividends on the Company's Series A, Series B and Series C
cumulative redeemable preferred stock reflecting accrued dividends
from June 1, 2019 through August 31, 2019. The dividends are
payable on September 3, 2019 to preferred stockholders of record on
August 15, 2019. The Company will pay total dividends of $0.515625,
$0.484375 and $0.53125 per share on the Series A, Series B and
Series C preferred stock, respectively.
Earnings
Conference Call
The Company will host
a conference call today at 10:00 a.m. Eastern Time. A live webcast
of the conference call will be available at www.arbor.com in the
investor relations area of the website. Those without web access
should access the call telephonically at least ten minutes prior to
the conference call. The dial-in numbers are (866) 516-5034 for
domestic callers and (678) 509-7613 for international callers.
Please use participant passcode 6947538.
After the live
webcast, the call will remain available on the Company's website
through August 31, 2019. In addition, a telephonic replay of
the call will be available until August 9, 2019. The replay dial-in
numbers are (855) 859-2056 for domestic callers and (404) 537-3406
for international callers. Please use passcode 6947538.
About Arbor
Realty Trust, Inc.
Arbor Realty Trust, Inc. (NYSE:ABR) is a
nationwide real estate investment trust and direct lender,
providing loan origination and servicing for multifamily, seniors
housing, healthcare and other diverse commercial real estate
assets. Headquartered in New York, Arbor manages a
multibillion-dollar servicing portfolio, specializing in
government-sponsored enterprise products. Arbor is a Fannie Mae
DUS® lender and Freddie Mac Optigo Seller/Servicer. Arbor’s product
platform also includes CMBS, bridge, mezzanine and preferred equity
lending. Rated by Standard and Poor’s and Fitch Ratings, Arbor is
committed to building on its reputation for service, quality and
customized solutions with an unparalleled dedication to providing
our clients excellence over the entire life of a loan.
Safe Harbor
Statement
Certain items in this
press release may constitute forward-looking statements within the
meaning of the “safe harbor” provisions of the Private Securities
Litigation Reform Act of 1995. These statements are based on
management’s current expectations and beliefs and are subject to a
number of trends and uncertainties that could cause actual results
to differ materially from those described in the forward-looking
statements. Arbor can give no assurance that its expectations will
be attained. Factors that could cause actual results to
differ materially from Arbor’s expectations include, but are not
limited to, continued ability to source new investments, changes in
interest rates and/or credit spreads, changes in the real estate
markets, and other risks detailed in Arbor’s Annual Report on Form
10-K for the year ended December 31, 2018 and its other reports
filed with the SEC. Such forward-looking statements speak only as
of the date of this press release. Arbor expressly disclaims any
obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein to
reflect any change in Arbor’s expectations with regard thereto or
change in events, conditions, or circumstances on which any such
statement is based.
1. Non-GAAP
Financial Measures
During the quarterly
earnings conference call, the Company may discuss non-GAAP
financial measures as defined by SEC Regulation G. In addition, the
Company has used non-GAAP financial measures in this press release.
A supplemental schedule of non-GAAP financial measures and the
comparable GAAP financial measure can be found on page 11 of this
release.
Contacts: |
|
Arbor Realty Trust, Inc.Paul Elenio, Chief Financial Officer
516-506-4422pelenio@arbor.com |
Investors:The Ruth GroupJanhavi
Mohite646-536-7026jmohite@theruthgroup.com |
Media:Bonnie Habyan, Chief Marketing
Officer516-506-4615bhabyan@arbor.com |
|
|
|
|
ARBOR REALTY TRUST, INC. AND
SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF INCOME - (UNAUDITED) |
($ in thousands—except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Six Months Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
$ |
82,171 |
|
|
$ |
59,295 |
|
|
$ |
153,448 |
|
|
$ |
110,908 |
|
Interest
expense |
|
|
48,284 |
|
|
|
37,884 |
|
|
|
90,149 |
|
|
|
71,271 |
|
|
Net interest income |
|
|
33,887 |
|
|
|
21,411 |
|
|
|
63,299 |
|
|
|
39,637 |
|
|
|
|
|
|
|
|
|
|
|
Other revenue: |
|
|
|
|
|
|
|
|
Gain on sales,
including fee-based services, net |
|
|
14,211 |
|
|
|
15,622 |
|
|
|
30,600 |
|
|
|
33,815 |
|
Mortgage servicing
rights |
|
|
18,709 |
|
|
|
17,936 |
|
|
|
32,941 |
|
|
|
37,571 |
|
Servicing revenue,
net |
|
|
12,612 |
|
|
|
10,871 |
|
|
|
26,164 |
|
|
|
20,418 |
|
Property operating
income |
|
|
3,147 |
|
|
|
2,964 |
|
|
|
5,950 |
|
|
|
5,874 |
|
Other income,
net |
|
|
1,393 |
|
|
|
(470 |
) |
|
|
(734 |
) |
|
|
2,408 |
|
|
Total other revenue |
|
|
50,072 |
|
|
|
46,923 |
|
|
|
94,921 |
|
|
|
100,086 |
|
|
|
|
|
|
|
|
|
|
|
Other
expenses: |
|
|
|
|
|
|
|
|
Employee
compensation and benefits |
|
|
29,022 |
|
|
|
26,815 |
|
|
|
60,786 |
|
|
|
56,309 |
|
Selling and
administrative |
|
|
10,481 |
|
|
|
8,873 |
|
|
|
20,242 |
|
|
|
17,789 |
|
Property operating
expenses |
|
|
2,691 |
|
|
|
2,856 |
|
|
|
5,086 |
|
|
|
5,652 |
|
Depreciation and
amortization |
|
|
1,909 |
|
|
|
1,845 |
|
|
|
3,821 |
|
|
|
3,691 |
|
Impairment loss on
real estate owned |
|
|
1,000 |
|
|
|
2,000 |
|
|
|
1,000 |
|
|
|
2,000 |
|
Provision for loss
sharing (net of recoveries) |
|
|
368 |
|
|
|
348 |
|
|
|
822 |
|
|
|
821 |
|
Provision for loan
losses (net of recoveries) |
|
|
- |
|
|
|
(2,127 |
) |
|
|
- |
|
|
|
(1,802 |
) |
|
Total other expenses |
|
|
45,471 |
|
|
|
40,610 |
|
|
|
91,757 |
|
|
|
84,460 |
|
|
|
|
|
|
|
|
|
|
|
Income before
extinguishment of debt, income from |
|
|
|
|
|
|
|
|
|
equity affiliates and income
taxes |
|
|
38,488 |
|
|
|
27,724 |
|
|
|
66,463 |
|
|
|
55,263 |
|
Loss on
extinguishment of debt |
|
|
- |
|
|
|
- |
|
|
|
(128 |
) |
|
|
- |
|
Income from equity
affiliates |
|
|
3,264 |
|
|
|
1,387 |
|
|
|
5,415 |
|
|
|
2,132 |
|
(Provision for)
benefit from income taxes |
|
|
(4,350 |
) |
|
|
(4,499 |
) |
|
|
(4,341 |
) |
|
|
4,285 |
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
37,402 |
|
|
|
24,612 |
|
|
|
67,409 |
|
|
|
61,680 |
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
dividends |
|
|
1,888 |
|
|
|
1,888 |
|
|
|
3,777 |
|
|
|
3,777 |
|
Net income
attributable to noncontrolling interest |
|
|
6,598 |
|
|
|
5,557 |
|
|
|
12,066 |
|
|
|
14,547 |
|
Net income
attributable to common stockholders |
|
$ |
28,916 |
|
|
$ |
17,167 |
|
|
$ |
51,566 |
|
|
$ |
43,356 |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
common share |
|
$ |
0.32 |
|
|
$ |
0.26 |
|
|
$ |
0.59 |
|
|
$ |
0.68 |
|
Diluted earnings
per common share |
|
$ |
0.31 |
|
|
$ |
0.25 |
|
|
$ |
0.57 |
|
|
$ |
0.66 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
|
89,955,923 |
|
|
|
65,683,057 |
|
|
|
87,567,171 |
|
|
|
63,773,306 |
|
|
Diluted |
|
|
113,624,384 |
|
|
|
90,055,170 |
|
|
|
110,779,680 |
|
|
|
87,420,543 |
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per common share |
|
$ |
0.28 |
|
|
$ |
0.25 |
|
|
$ |
0.55 |
|
|
$ |
0.46 |
|
|
|
|
|
|
|
|
|
|
|
|
ARBOR REALTY TRUST, INC. AND
SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
($ in thousands—except share and per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
|
|
|
2019 |
|
|
|
2018 |
|
|
|
|
|
|
(Unaudited) |
|
|
Assets: |
|
|
|
|
Cash and cash
equivalents |
|
$ |
198,917 |
|
|
$ |
160,063 |
|
Restricted
cash |
|
|
316,455 |
|
|
|
180,606 |
|
Loans and investments, net |
|
|
3,836,554 |
|
|
|
3,200,145 |
|
Loans held-for-sale, net |
|
|
601,827 |
|
|
|
481,664 |
|
Capitalized
mortgage servicing rights, net |
|
|
276,648 |
|
|
|
273,770 |
|
Securities held to
maturity, net |
|
|
86,017 |
|
|
|
76,363 |
|
Investments in
equity affiliates |
|
|
31,159 |
|
|
|
21,580 |
|
Real estate owned,
net |
|
|
13,382 |
|
|
|
14,446 |
|
Due from related
party |
|
|
16,986 |
|
|
|
1,287 |
|
Goodwill and other
intangible assets |
|
|
113,364 |
|
|
|
116,165 |
|
Other
assets |
|
|
110,421 |
|
|
|
86,086 |
|
Total
assets |
|
$ |
5,601,730 |
|
|
$ |
4,612,175 |
|
|
|
|
|
|
|
|
|
Liabilities and Equity: |
|
|
|
|
Credit facilities
and repurchase agreements |
|
$ |
1,621,678 |
|
|
$ |
1,135,627 |
|
Collateralized loan obligations |
|
|
1,875,444 |
|
|
|
1,593,548 |
|
Debt fund |
|
|
68,422 |
|
|
|
68,183 |
|
Senior unsecured
notes |
|
|
210,963 |
|
|
|
122,484 |
|
Convertible senior
unsecured notes, net |
|
|
253,729 |
|
|
|
254,768 |
|
Junior
subordinated notes to subsidiary trust issuing preferred
securities |
|
|
140,587 |
|
|
|
140,259 |
|
Due to related
party |
|
|
7,219 |
|
|
|
- |
|
Due to
borrowers |
|
|
92,296 |
|
|
|
78,662 |
|
Allowance for
loss-sharing obligations |
|
|
34,417 |
|
|
|
34,298 |
|
Other
liabilities |
|
|
110,997 |
|
|
|
118,780 |
|
Total
liabilities |
|
|
4,415,752 |
|
|
|
3,546,609 |
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
Arbor Realty
Trust, Inc. stockholders' equity: |
|
|
|
|
|
|
Preferred stock,
cumulative, redeemable, $0.01 par value: 100,000,000 |
|
|
|
|
|
|
|
shares authorized; special
voting preferred shares; 20,484,094 and |
|
|
|
|
|
|
|
20,653,584 shares issued and
outstanding, respectively; 8.25% Series A, |
|
|
|
|
|
|
|
|
|
$38,787,500 aggregate
liquidation preference; 1,551,500 shares issued and |
|
|
|
|
|
|
|
|
|
outstanding; 7.75% Series B,
$31,500,000 aggregate liquidation preference; |
|
|
|
|
|
|
|
|
|
1,260,000 shares issued and
outstanding; 8.50% Series C, $22,500,000 |
|
|
|
|
|
|
|
|
|
aggregate liquidation
preference; 900,000 shares issued and outstanding |
|
|
89,501 |
|
|
|
89,502 |
|
|
|
Common stock,
$0.01 par value: 500,000,000 shares authorized; 94,225,567 |
|
|
|
|
|
|
|
|
|
and 83,987,707 shares issued
and outstanding, respectively |
|
|
942 |
|
|
|
840 |
|
|
|
Additional paid-in
capital |
|
|
998,897 |
|
|
|
879,029 |
|
|
|
Accumulated
deficit |
|
|
(72,321 |
) |
|
|
(74,133 |
) |
Total Arbor Realty
Trust, Inc. stockholders’ equity |
|
|
1,017,019 |
|
|
|
895,238 |
|
|
|
|
|
|
|
|
|
Noncontrolling
interest |
|
|
168,959 |
|
|
|
170,328 |
|
Total equity |
|
|
1,185,978 |
|
|
|
1,065,566 |
|
|
|
|
|
|
|
|
|
Total liabilities
and equity |
|
$ |
5,601,730 |
|
|
$ |
4,612,175 |
|
|
|
|
|
|
|
|
|
|
ARBOR REALTY TRUST, INC. AND
SUBSIDIARIES |
STATEMENT OF INCOME SEGMENT INFORMATION -
(Unaudited) |
(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended June 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
StructuredBusiness |
|
AgencyBusiness |
|
Other /Eliminations (1) |
|
Consolidated |
|
|
|
|
|
|
|
|
|
|
Interest
income |
|
$ |
76,144 |
|
$ |
6,027 |
|
|
$ |
- |
|
|
$ |
82,171 |
|
Interest
expense |
|
|
44,716 |
|
|
3,568 |
|
|
|
- |
|
|
|
48,284 |
|
|
Net interest income |
|
|
31,428 |
|
|
2,459 |
|
|
|
- |
|
|
|
33,887 |
|
|
|
|
|
|
|
|
|
|
|
Other revenue: |
|
|
|
|
|
|
|
|
Gain on sales,
including fee-based services, net |
|
|
- |
|
|
14,211 |
|
|
|
- |
|
|
|
14,211 |
|
Mortgage servicing
rights |
|
|
- |
|
|
18,709 |
|
|
|
- |
|
|
|
18,709 |
|
Servicing
revenue |
|
|
- |
|
|
24,936 |
|
|
|
- |
|
|
|
24,936 |
|
Amortization of
MSRs |
|
|
- |
|
|
(12,324 |
) |
|
|
- |
|
|
|
(12,324 |
) |
Property operating
income |
|
|
3,147 |
|
|
- |
|
|
|
- |
|
|
|
3,147 |
|
Other income,
net |
|
|
290 |
|
|
1,103 |
|
|
|
- |
|
|
|
1,393 |
|
|
Total other revenue |
|
|
3,437 |
|
|
46,635 |
|
|
|
- |
|
|
|
50,072 |
|
|
|
|
|
|
|
|
|
|
|
Other
expenses: |
|
|
|
|
|
|
|
|
Employee
compensation and benefits |
|
|
6,815 |
|
|
22,207 |
|
|
|
- |
|
|
|
29,022 |
|
Selling and
administrative |
|
|
5,328 |
|
|
5,153 |
|
|
|
- |
|
|
|
10,481 |
|
Property operating
expenses |
|
|
2,691 |
|
|
- |
|
|
|
- |
|
|
|
2,691 |
|
Depreciation and
amortization |
|
|
509 |
|
|
1,400 |
|
|
|
- |
|
|
|
1,909 |
|
Impairment loss on
real estate owned |
|
|
1,000 |
|
|
- |
|
|
|
- |
|
|
|
1,000 |
|
Provision for loss
sharing (net of recoveries) |
|
|
- |
|
|
368 |
|
|
|
- |
|
|
|
368 |
|
|
Total other expenses |
|
|
16,343 |
|
|
29,128 |
|
|
|
- |
|
|
|
45,471 |
|
|
|
|
|
|
|
|
|
|
|
Income before
income from equity affiliates and |
|
|
|
|
|
|
|
|
|
income taxes |
|
|
18,522 |
|
|
19,966 |
|
|
|
- |
|
|
|
38,488 |
|
Income from equity
affiliates |
|
|
3,264 |
|
|
- |
|
|
|
- |
|
|
|
3,264 |
|
Provision for
income taxes |
|
|
- |
|
|
(4,350 |
) |
|
|
- |
|
|
|
(4,350 |
) |
|
|
|
|
|
|
|
|
|
|
Net income |
|
|
21,786 |
|
|
15,616 |
|
|
|
- |
|
|
|
37,402 |
|
|
|
|
|
|
|
|
|
|
|
Preferred stock
dividends |
|
|
1,888 |
|
|
- |
|
|
|
- |
|
|
|
1,888 |
|
Net income
attributable to noncontrolling interest |
|
- |
|
|
- |
|
|
|
6,598 |
|
|
|
6,598 |
|
Net income
attributable to common stockholders |
|
$ |
19,898 |
|
$ |
15,616 |
|
|
$ |
(6,598 |
) |
|
$ |
28,916 |
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
certain income or expenses not allocated to the two reportable
segments. Amount reflects income attributable to the noncontrolling
interest holders. |
|
|
|
|
|
|
|
|
|
|
|
ARBOR REALTY TRUST, INC. AND
SUBSIDIARIES |
BALANCE SHEET SEGMENT INFORMATION - (Unaudited) |
(in thousands) |
|
|
|
|
|
|
|
|
|
June 30, 2019 |
|
|
StructuredBusiness |
|
AgencyBusiness |
|
Consolidated |
Assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
116,282 |
|
$ |
82,635 |
|
$ |
198,917 |
Restricted cash |
|
|
315,195 |
|
|
1,260 |
|
|
316,455 |
Loans and investments, net |
|
|
3,836,554 |
|
|
- |
|
|
3,836,554 |
Loans held-for-sale, net |
|
|
- |
|
|
601,827 |
|
|
601,827 |
Capitalized
mortgage servicing rights, net |
|
- |
|
|
276,648 |
|
|
276,648 |
Securities held to maturity,
net |
|
|
10,000 |
|
|
76,017 |
|
|
86,017 |
Investments in equity
affiliates |
|
|
31,159 |
|
|
- |
|
|
31,159 |
Goodwill and other intangible
assets |
|
|
12,500 |
|
|
100,864 |
|
|
113,364 |
Other assets |
|
|
110,205 |
|
|
30,584 |
|
|
140,789 |
Total assets |
|
$ |
4,431,895 |
|
$ |
1,169,835 |
|
$ |
5,601,730 |
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
Debt obligations |
|
$ |
3,573,659 |
|
$ |
597,164 |
|
$ |
4,170,823 |
Allowance for loss-sharing
obligations |
|
|
- |
|
|
34,417 |
|
|
34,417 |
Other liabilities |
|
|
162,859 |
|
|
47,653 |
|
|
210,512 |
Total liabilities |
|
$ |
3,736,518 |
|
$ |
679,234 |
|
$ |
4,415,752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES |
Supplemental Schedule of Non-GAAP Financial Measures -
(Unaudited) |
Funds from Operations ("FFO") and Adjusted Funds from Operations
("AFFO") |
($ in thousands—except share and per share data) |
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Six Months Ended |
June 30, |
June 30, |
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Net income attributable to
common stockholders |
$ |
28,916 |
|
|
$ |
17,167 |
|
|
$ |
51,566 |
|
|
$ |
43,356 |
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
Net income attributable to noncontrolling interest |
|
6,598 |
|
|
|
5,557 |
|
|
|
12,066 |
|
|
|
14,547 |
|
Impairment loss on real estate owned |
|
1,000 |
|
|
|
2,000 |
|
|
|
1,000 |
|
|
|
2,000 |
|
Depreciation - real estate owned |
|
176 |
|
|
|
178 |
|
|
|
350 |
|
|
|
356 |
|
Depreciation - investments in equity affiliates |
|
128 |
|
|
|
125 |
|
|
|
252 |
|
|
|
250 |
|
|
|
|
|
|
|
|
|
Funds from operations
(1) |
$ |
36,818 |
|
|
$ |
25,027 |
|
|
$ |
65,234 |
|
|
$ |
60,509 |
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
Income from mortgage servicing rights |
|
(18,709 |
) |
|
|
(17,936 |
) |
|
|
(32,941 |
) |
|
|
(37,571 |
) |
Impairment loss on real estate owned |
|
(1,000 |
) |
|
|
(2,000 |
) |
|
|
(1,000 |
) |
|
|
(2,000 |
) |
Deferred tax provision (benefit) |
|
918 |
|
|
|
185 |
|
|
|
(3,250 |
) |
|
|
(13,135 |
) |
Amortization and write-offs of MSRs |
|
16,914 |
|
|
|
17,203 |
|
|
|
33,654 |
|
|
|
33,879 |
|
Depreciation and amortization |
|
2,549 |
|
|
|
2,255 |
|
|
|
5,113 |
|
|
|
4,511 |
|
Net (gain) loss on changes in fair value of derivatives |
|
(1,103 |
) |
|
|
587 |
|
|
|
1,362 |
|
|
|
(2,057 |
) |
Stock-based compensation |
|
1,502 |
|
|
|
1,100 |
|
|
|
5,258 |
|
|
|
3,645 |
|
|
|
|
|
|
|
|
|
Adjusted funds from
operations (1) |
$ |
37,889 |
|
|
$ |
26,421 |
|
|
$ |
73,430 |
|
|
$ |
47,781 |
|
|
|
|
|
|
|
|
|
Diluted FFO per share
(1) |
$ |
0.32 |
|
|
$ |
0.28 |
|
|
$ |
0.59 |
|
|
$ |
0.69 |
|
|
|
|
|
|
|
|
|
Diluted AFFO per share
(1) |
$ |
0.33 |
|
|
$ |
0.29 |
|
|
$ |
0.66 |
|
|
$ |
0.55 |
|
|
|
|
|
|
|
|
|
Diluted weighted average
shares outstanding (1) |
|
113,624,384 |
|
|
|
90,055,170 |
|
|
|
110,779,680 |
|
|
|
87,420,543 |
|
|
|
|
|
|
|
|
|
(1) Amounts are attributable to common stockholders and OP Unit
holders. The OP Units are redeemable for cash, or at the Company's
option for shares of the Company's common stock on a one-for-one
basis. |
|
|
|
|
|
|
|
|
The Company is presenting FFO and AFFO because management believes
they are important supplemental measures of the Company’s operating
performance in that they are frequently used by analysts, investors
and other parties in the evaluation of REITs. The National
Association of Real Estate Investment Trusts, or NAREIT, defines
FFO as net income (loss) attributable to common stockholders
(computed in accordance with GAAP), excluding gains (losses) from
sales of depreciated real properties, plus impairments of
depreciated real properties and real estate related depreciation
and amortization, and after adjustments for unconsolidated
ventures. |
|
The Company defines AFFO as funds from operations adjusted for
accounting items such as non-cash stock-based compensation expense,
income from mortgage servicing rights ("MSRs"), changes in fair
value of certain derivatives that temporarily flow through
earnings, amortization and write-offs of MSRs, deferred taxes and
the amortization of the convertible senior notes conversion option.
The Company also adds back one-time charges such as acquisition
costs and impairment losses on real estate and gains (losses) on
sales of real estate. The Company is generally not in the business
of operating real estate property and has obtained real estate by
foreclosure or through partial or full settlement of mortgage debt
related to the Company's loans to maximize the value of the
collateral and minimize the Company's exposure. Therefore,
the Company deems such impairment and gains (losses) on real estate
as an extension of the asset management of its loans, thus a
recovery of principal or additional loss on the Company's initial
investment. |
|
FFO and AFFO are not intended to be an indication of the Company's
cash flow from operating activities (determined in accordance with
GAAP) or a measure of its liquidity, nor is it entirely indicative
of funding the Company's cash needs, including its ability to make
cash distributions. The Company’s calculation of FFO and AFFO
may be different from the calculations used by other companies and,
therefore, comparability may be limited. |
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