Arbor Realty Trust Reports Fourth Quarter and Full Year 2025 Results and Declares Dividend of $0.30 per Share

Fourth Quarter Highlights:

GAAP net income of $0.07 per diluted common share

Distributable earnings1 of $0.19, or $0.22 per diluted common share, excluding $5.1 million of net realized losses from the resolution of certain legacy assets previously reserved for

Declares cash dividend on common stock of $0.30 per share

Agency loan originations of $1.63 billion

Structured loan originations of $1.10 billion, our strongest quarter in over three years

Issued $400.0 million of 8.50% senior unsecured notes due 2028

Unwound CLO 16 with $482.1 million of outstanding notes generating ~$90 million of liquidity

Foreclosed on six loans totaling $139.0 million and sold three real estate owned properties totaling $77.6 million

Repurchased $20.0 million of stock at an average price of $7.40 per share, or 64% of book value, between December 2025 and February 2026

GAAP net income of $0.56 per diluted common share

Distributable earnings1 of $1.07, or $1.17 per diluted common share, excluding $22.6 million of net realized losses from the resolution of certain legacy assets previously reserved for

Agency servicing portfolio of ~$36.20 billion on growth of 8% from loan originations of $5.07 billion

Structured portfolio of $12.11 billion on growth of 7% from loan originations of $3.52 billion

Recognized significant cash gains totaling $56.0 million from an equity investment

Continued success from our industry-leading securitization platform:

Closed our first build-to-rent collateralized securitization vehicle totaling $801.9 million with improved terms over our warehouse lines

Closed a $1.05 billion collateralized securitization vehicle with initial pricing of 1.82% over SOFR and leverage of 89%

Generated significant liquidity through improvements to the right side of our balance sheet:

Issued $900.0 million of senior unsecured notes to repay $557.5 million of unsecured debt and add ~$340 million of liquidity

Unwound three CLO vehicles, financing assets with a new $1.15 billion repurchase facility and existing lines, enhancing leverage, reducing pricing and generating ~$170 million of liquidity

UNIONDALE, N.Y., Feb. 27, 2026 (GLOBE NEWSWIRE) — Arbor Realty Trust, Inc. (NYSE: ABR), today announced financial results for the fourth quarter ended December 31, 2025. Arbor reported net income for the quarter of $14.6 million, or $0.07 per diluted common share, compared to net income of $59.8 million, or $0.32 per diluted common share for the quarter ended December 31, 2024. Net income for the year was $107.4 million, or $0.56 per diluted common share, compared to $223.3 million, or $1.18 per diluted common share for the year ended December 31, 2024. Distributable earnings for the quarter was $41.2 million, or $0.19 per diluted common share, compared to $81.6 million, or $0.40 per diluted common share for the quarter ended December 31, 2024. Distributable earnings for the year was $223.6 million, or $1.07 per diluted common share, compared to $358.0 million, or $1.74 per diluted common share for the year ended December 31, 2024.1

Agency Loan Volume (in thousands)

For the quarter ended December 31, 2025, the Agency Business generated revenues of $81.0 million, compared to $81.1 million for the third quarter of 2025. Gain on sales, including fee-based services, net on the Agency business was $20.9 million for the quarter, reflecting a margin of 1.36%, compared to $23.3 million and 1.15% for the third quarter of 2025. Income from mortgage servicing rights was $19.9 million for the quarter, reflecting a rate of 1.24% as a percentage of loan commitments, compared to $15.5 million and 0.78% for the third quarter of 2025.

At December 31, 2025, loans held-for-sale was $409.1 million, with financing associated with these loans totaling $390.4 million.

Fee-Based Servicing Portfolio

The Company’s fee-based servicing portfolio totaled $36.20 billion at December 31, 2025. Servicing revenue, net was $26.9 million for the quarter and consisted of servicing revenue of $45.1 million, net of amortization of mortgage servicing rights totaling $18.2 million.

Fee-Based Servicing Portfolio ($ in thousands)

Loans sold under the Fannie Mae program contain an obligation to partially guarantee the performance of the loan (“loss-sharing obligations”) and includes $35.7 million for the fair value of the guarantee obligation undertaken at December 31, 2025. The Company recorded a $9.7 million net provision for loss sharing associated with CECL for the fourth quarter of 2025. At December 31, 2025, the Company’s total CECL allowance for loss-sharing obligations was $61.9 million, representing 0.26% of the Fannie Mae servicing portfolio.

Portfolio and Investment Activity

Structured Portfolio Activity ($ in thousands)

Construction – Multifamily

Mezzanine / Preferred Equity

Number of Loans Originated

Construction – Multifamily

Structured Portfolio ($ in thousands)

Mezzanine/Preferred Equity

Construction – Multifamily

At December 31, 2025, the loan and investment portfolio’s unpaid principal balance (“UPB”), excluding loan loss reserves, was $12.11 billion, with a weighted average current interest pay rate of 6.49%, compared to $11.71 billion and 6.64% at September 30, 2025. Including certain fees earned and costs associated with the loan and investment portfolio, the weighted average current interest pay rate was 7.08% at December 31, 2025, compared to 7.27% at September 30, 2025. The decrease in pay rate was largely due to an decrease in the SOFR rate in the fourth quarter of 2025.

The average balance of the Company’s loan and investment portfolio during the fourth quarter of 2025, excluding loan loss reserves, was $11.84 billion with a weighted average yield of 7.38%, compared to $11.76 billion and 6.95% for the third quarter of 2025. The increase in the weighted average yield was primarily due to an $18 million one-time reversal of accrued interest on previously modified loans, along with additional delinquencies and rate modifications, in the third quarter of 2025, partially offset by a decrease in the SOFR rate in the fourth quarter of 2025.

During the fourth quarter of 2025, the Company recorded a $6.5 million reversal of provision for loan losses associated with CECL. At December 31, 2025, the Company’s total allowance for loan losses was $146.0 million, compared to $246.3 million at September 30, 2025. The decrease in the allowance was primarily due to the resolution of a portfolio of legacy loans with a total UPB of $127.9 million and a previously recorded reserve of $77.9 million, resulting in a $68.9 million charge-off and a $9.0 million provision reversal. In addition, the Company recorded $20.5 million of impairments on real estate owned with a carry value of $158.2 million.

The Company had twenty-six non-performing loans with a UPB of $569.1 million, before related loan loss reserves of $10.2 million, compared to twenty-five loans with a UPB of $566.1 million, before loan loss reserves of $22.9 million at September 30, 2025.

In addition, at December 31, 2025, the Company had three non-accrual loans with a UPB of $48.3 million (before a related loan loss reserves of $10.7 million) that were less than 60 days past due, compared to eight non-accrual loans with a total UPB of $183.1 million (before related loan loss reserves of $15.3 million) at September 30, 2025.

During the fourth quarter of 2025, the Company modified seven loans to borrowers experiencing financial difficulty with a total UPB of $251.1 million, the vast majority of which had borrowers investing additional capital to recapitalize their deals. Five of these loans with a total UPB of $131.2 million contained interest rates based on pricing over SOFR ranging from 3.35% to 4.15% and were modified to provide temporary rate relief through a pay and accrual feature. At December 31, 2025, these modified loans had a weighted average pay rate of 5.52% and a weighted average accrual rate of 1.69%. In addition, of the total modified loans for the fourth quarter, one loan with a UPB of $12.0 million was non-performing at September 30, 2025, and is now current in accordance with its modified terms.

The balance of debt that finances the Company’s loan and investment portfolio at December 31, 2025 was $10.46 billion with a weighted average interest rate including fees of 6.45% as compared to $9.49 billion and a rate of 6.72% at September 30, 2025. The decrease in the weighted average interest rate was primarily due to a decline in the SOFR rate during the fourth quarter of 2025.

The average balance of debt that finances the Company’s loan and investment portfolio for the fourth quarter of 2025 was $10.09 billion, as compared to $9.96 billion for the third quarter of 2025. The average cost of borrowings for the fourth quarter of 2025 was 6.81%, compared to 7.02% for the third quarter of 2025. The decrease in average cost was primarily due to an decrease in the SOFR rate in the fourth quarter of 2025.

The Company issued $400 million of its 8.50% senior unsecured notes due December 2028 through a private offering. The Company is using the net proceeds of this offering to pay down debt and for general corporate purposes.

The Company announced today that its Board of Directors declared a quarterly cash dividend of $0.30 per share of common stock for the quarter ended December 31, 2025. The dividend is payable on March 24, 2026 to common stockholders of record on March 10, 2026.

The Company will host a conference call today at 10:00 a.m. Eastern Time. A live webcast and replay of the conference call will be available at www.arbor.com in the investor relations section of the Company’s website, or you can access the call telephonically at least ten minutes prior to the conference call. The dial-in numbers are (800) 267-6316 for domestic callers and (203) 518-9783 for international callers. Please use participant passcode ABRQ425 when prompted by the operator.

A telephonic replay of the call will be available until March 6, 2026. The replay dial-in numbers are (800) 839-1192 for domestic callers and (402) 220-0402 for international callers.

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, single-family rental (SFR) portfolios, 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 leading Fannie Mae DUS® lender and Freddie Mac Optigo® Seller/Servicer, and an approved FHA Multifamily Accelerated Processing (MAP) lender. Arbor’s product platform also includes bridge, CMBS, mezzanine and preferred equity loans. 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.

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, changes in economic conditions generally, and the real estate markets specifically, continued ability to source new investments, changes in interest rates and/or credit spreads, and other risks detailed in Arbor’s Annual Report on Form 10-K for the year ended December 31, 2025 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.

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 the last two pages of this release.

Arbor Realty Trust, Inc.Investor [email protected]

ARBOR REALTY TRUST, INC. AND SUBSIDIARIESConsolidated Statements of Income($ in thousands—except share and per share data)

Quarter Ended December 31,

Gain on sales, including fee-based services, net

(Loss) gain on derivative instruments, net

Employee compensation and benefits

Selling and administrative

Property operating expenses

Depreciation and amortization

Impairment loss on real estate owned

Provision for loss sharing, net

Provision for credit losses, net

Income before extinguishment of debt, (loss) gain on real estate, income (loss) from equity affiliates, and income taxes

Loss on extinguishment of debt

(Loss) gain on real estate

Income (loss) from equity affiliates

Provision for income taxes

Net income attributable to noncontrolling interest

Net income attributable to common stockholders

Basic earnings per common share

Diluted earnings per common share

Weighted average shares outstanding:

Dividends declared per common share

ARBOR REALTY TRUST, INC. AND SUBSIDIARIESConsolidated Balance Sheets($ in thousands—except share and per share data)

Loans and investments, net (allowance for credit losses of $145,971 and $238,967)

Capitalized mortgage servicing rights, net

Securities held-to-maturity, net (allowance for credit losses of $17,013 and $10,846)

Investments in equity affiliates

Goodwill and other intangible assets

Credit and repurchase facilities

Convertible senior unsecured notes

Junior subordinated notes to subsidiary trust issuing preferred securities

Notes payable – real estate owned

Allowance for loss-sharing obligations

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:

Special voting preferred – 16,169,858 and 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 – 195,491,855 and 189,259,435 shares issued and outstanding

Additional paid-in capital

(Accumulated deficit) retained earnings

Total Arbor Realty Trust, Inc. stockholders’ equity

Total liabilities and equity

ARBOR REALTY TRUST, INC. AND SUBSIDIARIESStatement of Income Segment Information – (Unaudited)(in thousands)

Quarter Ended December 31, 2025

Gain on sales, including fee-based services, net

Loss on derivative instruments, net

Employee compensation and benefits

Selling and administrative

Property operating expenses

Depreciation and amortization

Impairment loss on real estate owned

Provision for loss sharing, net

Provision for credit losses, net

Income before extinguishment of debt, loss on real estate, income from equity affiliates and income taxes

Loss on extinguishment of debt

Income from equity affiliates

Benefit from (provision for) income taxes

Net income attributable to noncontrolling interest

Net (loss) income attributable to common stockholders

(1)  Includes income allocated to the noncontrolling interest holders not allocated to the two reportable segments.

ARBOR REALTY TRUST, INC. AND SUBSIDIARIESBalance Sheet Segment Information – (Unaudited)(in thousands)

Loans and investments, net

Capitalized mortgage servicing rights, net

Securities held-to-maturity, net

Investments in equity affiliates

Goodwill and other intangible assets

Other assets and due from related party

Allowance for loss-sharing obligations

Other liabilities and due to related party

ARBOR REALTY TRUST, INC. AND SUBSIDIARIESReconciliation of Distributable Earnings to GAAP Net Income – (Unaudited)($ in thousands—except share and per share data)

Quarter Ended December 31,

Net income attributable to common stockholders

Net income attributable to noncontrolling interest

Income from mortgage servicing rights

Deferred tax provision (benefit)

Amortization and write-offs of MSRs

Depreciation and amortization

Loss on extinguishment of debt

Provision for credit losses, net

(Gain) loss on derivative instruments, net

Distributable earnings (1)

Diluted distributable earnings per share (1)

Diluted weighted average shares outstanding (1) (2)

(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.

(2) The diluted weighted average shares outstanding exclude the potential shares issuable upon conversion and settlement of the Company’s convertible senior notes principal balance.

The Company is presenting distributable earnings because management believes it is an important supplemental measure of the Company’s operating performance and is useful to investors, analysts and other parties in the evaluation of REITs and their ability to provide dividends to stockholders. Dividends are one of the principal reasons investors invest in REITs. To maintain REIT status, REITs are required to distribute at least 90% of their REIT-taxable income. The Company considers distributable earnings in determining its quarterly dividend and believes that, over time, distributable earnings is a useful indicator of the Company’s dividends per share.

The Company defines distributable earnings as net income (loss) attributable to common stockholders computed in accordance with GAAP, adjusted for accounting items such as depreciation and amortization (adjusted for unconsolidated joint ventures), non-cash stock-based compensation expense, income from MSRs, amortization and write-offs of MSRs, gains/losses on derivative instruments primarily associated with Private Label loans not yet sold and securitized, changes in fair value of GSE-related derivatives that temporarily flow through earnings, deferred tax provision (benefit), CECL provisions for credit losses (adjusted for realized losses as described below) and gains/losses on the receipt of real estate from the settlement of loans (prior to the sale of the real estate). The Company also adds back one-time charges such as acquisition costs and one-time gains/losses on the early extinguishment of debt and redemption of preferred stock.

The Company reduces distributable earnings for realized losses in the period management determines that a loan is deemed nonrecoverable in whole or in part. Loans are deemed nonrecoverable upon the earlier of: (1) when the loan receivable is settled (i.e., when the loan is repaid, or in the case of foreclosure, when the underlying asset is sold); or (2) when management determines that it is nearly certain that all amounts due will not be collected. The realized loss amount is equal to the difference between the cash received, or expected to be received, and the book value of the asset.

Distributable earnings is not intended to be an indication of the Company’s cash flows 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 distributable earnings may be different from the calculations used by other companies and, therefore, comparability may be limited.