Company: ABR-PF
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001253986-25-000022
Chunk: 252

Company: ARBOR REALTY TRUST INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 8
Chunk 252
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ancing our multifamily balance sheet bridge loan portfolio when it is practical and appropriate to do so. We execute this strategy by underwriting the multifamily bridge loans we originate to a potential future agency financing. We then continue to work with our borrowers on this execution through the life cycle of the multifamily bridge loan.  When effective, this strategy allows us to recapture refinancing opportunities, deleverage our balance sheet, and generate additional income streams through our capital-light Agency Business.

Income earned from our structured transactions. Our structured transactions are primarily comprised of investments in equity affiliates, which represent unconsolidated joint venture investments formed to acquire, develop and/or sell real estate-related assets. Operating results from these investments can be difficult to predict and can vary significantly period-to-period. When interest rates rise, the income from these investments can be significantly and negatively impacted. In addition, we periodically receive distributions from our equity investments. It is difficult to forecast the timing of such payments, which can be substantial in any given quarter. We account for structured transactions within our Structured Business.

Credit quality of our loans and investments, including our servicing portfolio. Effective portfolio management is essential to maximize the performance and value of our loan and investment and servicing portfolios. Maintaining the credit quality of the loans in our portfolios is of critical importance. Loans that do not perform in accordance with their terms may have a negative impact on earnings and liquidity.

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Table of Contents

Significant Developments During the Third Quarter of 2025

Financing and Capital Markets Activity

•Closed a collateralized securitization vehicle (CLO 20) totaling $1.05 billion, of which $933.2 million consisted of investment grade notes and $116.8 million of below investment grade notes were retained by us;

•Issued $500.0 million aggregate principal amount of 7.875% senior unsecured notes due 2030 through a private offering. A portion of the net proceeds were used to repay the remaining outstanding 7.50% convertible senior notes due August 2025; and

•Raised net proceeds of $39.7 million from the issuance of 3,390,207 shares of our common stock at an average price of $11.72 per share.

Structured Business Activity

•Balance sheet portfolio of $11.71 billion, as loan originations of $956.7 million outpaced loan runoff totaling $734.2 million; 

•We modified 19 loans with a total UPB of $808.6 million which were