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Exhibit 99.1
Arbor Realty Trust Reports Fourth Quarter and Full Year 2022 Results and Declares Dividend of $0.40 per Share
Fourth Quarter Highlights:
• | Diversified, annuity-based operating platform with a multifamily focus that generates strong distributable earnings and dividends in all cycles |
• | GAAP net income of $0.49 per diluted common share |
• | Distributable earnings of $0.60 per diluted common share1, well in excess of our current dividend, representing a 67% payout ratio |
• | Declares cash dividend on common stock of $0.40 per share |
• | Strong liquidity position with ~$685 million in cash and liquidity and ~$420 million of restricted cash in replenishable CLO vehicles with a weighted average cost of 1.67% over benchmark rates2 |
• | Structured loan originations of $500.5 million and a portfolio of $14.46 billion |
• | Agency loan originations of $1.55 billion and a servicing portfolio of ~$28.00 billion |
• | Completed our first Freddie Mac Q Series securitization totaling ~$315 million |
Full Year Highlights:
• | GAAP net income of $1.67 per diluted common share; distributable earnings of $2.23 per diluted common share1, representing an 11% increase over last year |
• | Raised dividend 3 times in 2022 to an annual run rate of $1.60 per share, representing an 8% increase over the prior year |
• | Best-in-class return on equity of 18% |
• | Structured portfolio growth of 19% from loan originations of $6.15 billion |
• | Agency servicing portfolio growth of 4% from loan originations of $4.77 billion |
• | Continued success from our industry-leading securitization platform closing 4 new securitizations totaling $3.91 billion |
• | Raised ~$486 million of accretive growth capital through several common and preferred equity offerings |
• | Issued ~$438 million of debt offerings primarily to repay existing debt |
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Arbor Realty Trust Inc's Definitive Proxy Statement (Form DEF 14A) filed after their 2023 10-K Annual Report includes:
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We have the potential to recover up to $2.8 million depending on the future performance of the loan; Within our equity investments, we received cash distributions totaling $37.4 million, including $23.8 million (recognized as a return of capital) from our residential mortgage venture and $11.1 million (recognized as income) from our Lexford venture.
The increase in interest expense was mainly due to a $344.2 million increase from our Structured Business, primarily due to an increase in the average balance of our interest-bearing liabilities, due to the significant growth in our loan portfolio and the issuance of additional unsecured debt, along with an increase in the average cost of our interest-bearing liabilities, mainly from increases in benchmark index rates.
Although vaccine availability and usage have continued to increase, which has led to less negative short-term effects, such as travel bans, quarantines, layoffs and shutdowns, the ongoing longer-term macroeconomic effects on inflation, interest rates, capital markets, labor shortages, property values and global supply chains continue to negatively impact many industries, including the U.S. commercial real estate market.
Although vaccine availability and usage have continued to increase, which has led to less negative short-term effects, such as travel bans, quarantines, layoffs and shutdowns, the ongoing longer-term macroeconomic effects on inflation, interest rates, capital markets, labor shortages, property values and global supply chains continue to negatively impact many industries, including the U.S. commercial real estate market.
Preferred Stock Dividends The increase in preferred stock dividends was due to the issuances of our Series D, E and F preferred stock, which included a significantly larger number of shares than our Series A, B and C preferred stock that were redeemed in the second quarter of 2021.
Therefore, a decline in our...Read more
The increase in selling and...Read more
The decrease in the sales...Read more
The decrease in income from...Read more
Investments in equity affiliates decreased...Read more
The Federal Reserve has raised...Read more
The Federal Reserve has raised...Read more
The increase in servicing revenue,...Read more
Tightening liquidity conditions in equity...Read more
We raised our quarterly common...Read more
Effective portfolio management is essential...Read more
The FHFA has stated that...Read more
Revenue recognized from the origination...Read more
Agency Business Revenue The decrease...Read more
Our originations with the GSEs...Read more
These gains and fees are...Read more
Further, the FHFA has changed...Read more
Therefore, increases in interest income...Read more
Therefore, increases in interest income...Read more
Periods of volatility and dislocation...Read more
When interest rates rise, the...Read more
Our primary sources of funds...Read more
Liabilities - Comparison of balances...Read more
Loan originations from our Structured...Read more
In addition, we are generally...Read more
(2) Beginning in the first...Read more
Loan originations and sales totaled...Read more
Activity from our Agency Business...Read more
Cash flows provided by financing...Read more
Although we have not been...Read more
While we expect to extend...Read more
Grew our structured loan and...Read more
Net Interest Income The increase...Read more
Conversely, such rising interest rates...Read more
Gain on Sale of Real...Read more
We also add back one-time...Read more
Excluding the effect of a...Read more
The ongoing effects of COVID-19...Read more
The following table provides additional...Read more
Although we have not been...Read more
The decrease in other income,...Read more
Financial Statements, Disclosures and Schedules
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Arbor Realty Trust Inc provided additional information to their SEC Filing as exhibits
Ticker: ABR
CIK: 1253986
Form Type: 10-K Annual Report
Accession Number: 0001104659-23-023097
Submitted to the SEC: Fri Feb 17 2023 9:16:51 AM EST
Accepted by the SEC: Fri Feb 17 2023
Period: Saturday, December 31, 2022
Industry: Real Estate Investment Trusts