Company: ABR-PF
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001253986-25-000014
Chunk: 263

Company: ARBOR REALTY TRUST INC
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 8
Chunk 263
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 must distribute annually at least 90% of our REIT-taxable income. These distribution requirements limit our ability to retain earnings and thereby replenish or increase capital for operations. However, we believe that our capital resources and access to financing will provide us with financial flexibility and market responsiveness at levels sufficient to meet current and anticipated capital and liquidity requirements.

Cash Flows. Cash flows provided by operating activities totaled $210.6 million during the six months ended June 30, 2025 and consisted primarily of net income (adjusted for the increase in CECL reserves of $34.1 million) of $113.8 million and net cash inflows of $70.6 million from loan sales exceeding loan originations in our Agency Business.

Cash flows used in investing activities totaled $522.1 million during the six months ended June 30, 2025. Loan and investment activity (originations and payoffs/paydowns) comprise the majority of our investing activities. Loan originations from our Structured Business totaling $1.48 billion, net of payoffs and paydowns of $962.0 million, resulted in net cash outflows of $522.4 million.

Cash flows used in financing activities totaled $2.0 million during the six months ended June 30, 2025 and consisted primarily of $1.11 billion of net securitized debt activity (payoffs and paydowns exceeded proceeds) and $172.4 million of distributions to our stockholders and OP Unit holders, partially offset by net cash inflows of $1.16 billion from debt facility activities (financed loan originations were greater than facility paydowns) and net cash inflows of $109.7 million from mortgage notes payable activities (proceeds exceeded payoffs and paydowns).

Agency Business Requirements. The Agency Business is subject to supervision by certain regulatory agencies. Among other things, these agencies require us to meet certain minimum net worth, operational liquidity and restricted liquidity collateral requirements, purchase and loss obligations and compliance with reporting requirements. Our adjusted net worth and operational liquidity exceeded the agencies’ requirements at June 30, 2025. Our restricted liquidity and purchase and loss obligations were satisfied with letters of credit totaling $75.0 million and cash. See Note 14 for details about our performance regarding these requirements.

We also enter into contractual commitments with borrowers providing rate lock commitments while simultaneously entering into forward sale commitments with investors. These commitments are outstanding for short periods of time (generally less than 60 days) and are