Arbor Realty Trust (ABR) investor relations material

Executive summary

• Q3 GAAP net loss attributable to common stockholders was $85.4M, or $0.51/share, versus net income of $38.5M, or $0.20/share, a year earlier.

• Q3 distributable loss was $6.9M, or $0.04/share; excluding $21.7M of realized legacy-asset losses, distributable earnings were $0.08/share.

• Credit costs and REO impairments weighed on results; the quarterly common dividend was suspended to preserve capital and financial flexibility.

• Non-performing assets reached $1.235B, or 9.9% of the $12.0B portfolio, at quarter-end.

Financial highlights

• Q3 net interest income was $37.7M versus $38.3M YoY; total other revenue fell 24% to $56.4M, while total other expenses rose 81% to $177.8M.

• Q3 included a $55.5M credit-loss provision, including $53.0M associated with CECL, and $34.1M of REO impairment.

• 9M net loss attributable to common stockholders was $122.1M, or $0.66/share, versus net income of $92.9M, or $0.48/share, in 9M 2025.

• 9M distributable earnings were $83.5M, or $0.41/share; adjusted distributable earnings were $29.3M, or $0.15/share.

• Book value per share was $10.92 at September 30, reflecting increased reserves and impairments.

Outlook and guidance

• Capital priorities include preserving liquidity, addressing upcoming debt maturities and resolving legacy assets; dividend policy will be reassessed based on market conditions, capital needs and REIT distribution requirements.

• Four planned liquidity actions are expected to add $300M ahead of the March 2027 maturity; pro forma liquidity is $700M before and $425M after the $275M maturity.

• Legacy assets are targeted for resolution at $400M-$500M per quarter; the legacy book is expected to fall to ~$2.7B by year-end and ~$1B by end-2027.

• Management expects earnings to bottom over the next two quarters; realized losses of $20M-$30M per quarter may continue for four to six quarters as assets are resolved.