Company: ABR-PF
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001253986-25-000014
Chunk: 102

Company: ARBOR REALTY TRUST INC
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 102
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 impairment loss. These valuations require significant judgments, which include assumptions regarding capitalization and discount rates, revenue growth rates, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan and other factors.Loans held-for-sale are generally expected to be transferred or sold within 60 days to 180 days of loan origination and are reported at lower of cost or market. We consider a loan classified as held-for-sale impaired if, based on current information, it is probable that we will sell the loan below par, or not be able to collect all principal and interest in accordance with the contractual terms of the loan agreement. These loans are valued using pricing models that incorporate observable inputs from current market assumptions or a hypothetical securitization model utilizing observable market data from recent securitization spreads and observable pricing of loans with similar characteristics.The tables above and below include all impaired loans, regardless of the period in which the impairment was recognized.

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Table of ContentsARBOR REALTY TRUST, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Quantitative information about Level 3 fair value measurements at June 30, 2025 is as follows ($ in thousands):Fair ValueValuation TechniquesSignificant Unobservable Inputs Financial assets:Impaired loans:Weighted AverageMinimum / MaximumMultifamily$390,517 Discounted cash flowsCapitalization rate6.07 %5.50 % - 7.00 %Land49,999 Discounted cash flowsDiscount rate21.50 %21.50 %Revenue growth rate3.00 %3.00 %Retail11,775 Sales comparativePrice per acre$165$165Derivative financial instruments:Rate lock commitments$382 Discounted cash flowsW/A discount rate13.32 %13.32 %The derivative financial instruments using Level 3 inputs are outstanding for short periods of time (generally less than 60 days). A roll-forward of Level 3 derivative instruments is as follows (in thousands): Fair Value Measurements Using Significant Unobservable InputsThree Months Ended June 30,Six Months Ended June 30,2025202420252024Derivative assets and liabilities, netBeginning balance$309 $1,071 $— $428 Settlements(10,856)(14,006)(18,678)(23,442)Realized gains recorded in earnings10,547 12,935 18,678 23,014 Unrealized