Arbor Realty Trust Suspends Common Dividend After Third-Quarter Loss

The Tip Desk · November 10, 2026 · 4 min read

The REIT reported $57.5 million in Agency Business revenues and an $85.4 million GAAP net loss, or $0.51 a share, in the third quarter and halted its $0.17 quarterly cash dividend.

Arbor Realty Trust (ABR), a nationwide real estate investment trust and direct lender, reported Agency Business revenues of $57.5 million and a GAAP net loss of $85.4 million, or $0.51 a diluted common share, for the quarter ended September 30, 2026, compared with net income of $38.5 million, or $0.20 a share, a year earlier.

Distributable loss was $6.9 million, or $0.04 a diluted share, versus distributable earnings of $72.9 million, or $0.35 a share, in the year-ago quarter. Excluding $21.7 million of net realized losses from the resolution of certain legacy assets, distributable earnings were $0.08 a share.

The board suspended the quarterly common-stock dividend, effective immediately, after declaring $0.17 a share in the two prior quarters. The company said the decision reflects a focus on preserving capital and maintaining financial flexibility to address upcoming debt maturities and support the resolution of legacy assets.

Credit in the structured book deteriorated. The company recorded a $53.0 million net provision for loan losses associated with CECL. The allowance for loan losses was $210.1 million at September 30. Non-performing loans rose to 32 with unpaid principal balance of $647.6 million, before related reserves of $41.9 million, from 19 loans with UPB of $428.8 million, before reserves of $31.1 million, at June 30. The company also recorded $34.1 million of impairments on six real estate owned properties.

The average structured portfolio balance was $12.11 billion with a weighted average yield of 6.84%, versus $12.08 billion and 7.21% in the second quarter. The company attributed the yield decline primarily to additional delinquencies and rate modifications.

Structured originations were $459.2 million across 12 loans, versus $689.0 million across 14 loans in the second quarter. Runoff was $574.0 million. Portfolio UPB, excluding loan loss reserves, was $12.00 billion at September 30, with a weighted average interest rate of 6.54%.

Debt financing the loan and investment portfolio was $10.75 billion at a weighted average rate including fees of 6.69%, versus $10.48 billion and 6.38% at June 30. Average cost of borrowings was 6.66% versus 6.56% in the second quarter. The company said the increase in average cost was primarily due to a convertible senior unsecured notes offering and a higher average SOFR rate.

The company closed an $825.0 million collateralized securitization secured initially by real estate related assets and cash, generating about $50 million of additional liquidity. Investment-grade notes totaling $730.1 million were issued; the company retained interests of $112.4 million, including $17.5 million of investment-grade notes. The facility has a two-and-a-half-year asset replenishment period and an initial weighted average rate of 1.70% plus term SOFR, excluding fees and transaction costs.

Arbor completed an upsized $375.0 million offering of 6.25% convertible senior notes due 2029. Proceeds were used to redeem $270.0 million of 4.50% senior notes and to repurchase common stock: $11.6 million for about 2.1 million shares concurrently with the offering and $114.3 million for about 18.9 million shares via a prepaid forward.

Agency total originations fell to $907.0 million from $1.08 billion in the second quarter, after rising to $1.08 billion from $707.6 million in the first quarter. Freddie Mac originations dropped to $185.7 million from $428.3 million; FHA rose to $129.5 million from $8.1 million. Agency Business revenues declined to $57.5 million from $64.5 million.

Gain on sales, including fee-based services, net was $10.9 million with a 1.12% margin, down from $15.2 million and 1.33% in the second quarter. Income from mortgage servicing rights was $11.1 million, or 1.35% of loan commitments.

The fee-based servicing portfolio totaled $36.80 billion at September 30. Servicing revenue, net was $25.7 million. The company recorded a $12.4 million net provision for loss sharing associated with CECL. The CECL allowance for loss-sharing obligations was $87.3 million, or 0.36% of the Fannie Mae servicing portfolio.