Arbor Realty Trust reports Q2 distributable earnings of $0.15 per share, targeting $0.15–$0.17 in coming quarters amid asset resolutions.
Arbor Realty Trust posted second-quarter distributable earnings of $31 million, or $0.15 per share, as it navigates non-performing loans and funding restructuring. Management expects earnings to remain in the $0.15–$0.17 range over the next two to three quarters due to ongoing losses from asset resolutions.
The company bolstered liquidity by unwinding a legacy collateralized loan obligation (CLO), completing a $375 million convertible offering, and repurchasing 21 million shares below book value. The buyback lifted pro forma book value per share by 6% to $11.59, while workforce reductions are projected to save $10 million annually. Delinquencies and real estate-owned assets totaled $1.07 billion at quarter-end, with management targeting significant reductions by year-end.
Arbor refinanced loans through bank lines at nearly 40 basis points lower pricing, improving leverage terms. The company aims to resolve most problem assets within the next four to six quarters.