Company: ABR-PF
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001253986-25-000022
Chunk: 195

Company: ARBOR REALTY TRUST INC
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 8
Chunk 195
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 was sold to Fannie Mae during the quarter. Operating results from this investment were de minimus this period.Arbor Residential Investor LLC ("ARI"). We invested $9.6 million for a 50% interest in ARI, with our former manager, Arbor Commercial Mortgage, LLC (“ACM”), holding the remaining 50%. ARI was formed to hold a 50% interest in Wakefield Investment Holdings LLC (“Wakefield”), an entity that was formed with a third party to hold a controlling interest (initially 65%) in a residential mortgage banking business. During the nine months ended September 30, 2025, we recorded a loss of $1.7 million and during the three and nine months ended September 30, 2024, we recorded a loss of $1.0 million and $0.1 million, respectively, to income from equity 

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

affiliates in our consolidated statements of income. Additionally, during the three and nine months ended September 30, 2025, we received distributions of $16.4 million and $22.5 million, respectively, and during the nine months ended September 30, 2024, we received distributions of $7.7 million, which were classified as returns of capital.In April 2025, Wakefield entered into an agreement to sell its interest in the residential mortgage banking business for $117.3 million. Based on the terms of this agreement, $22.0 million was allocated to us, which is equivalent to the carrying value of our investment, and therefore we did not record a gain or loss on the transaction. The transaction closed once the entire sales price was paid, which was due in installments as follows: $15.0 million on or before April 1, 2025; $15.0 million on or before April 30, 2025; and the remaining $87.3 million on or before December 15, 2025. The first two installments were made in April, for which we received $5.6 million as our allocable share, and the final installment was made on July 31, 2025, for which we received $16.4 million as our allocable share. Lexford Portfolio. During the three and nine months ended September 30, 2025, we received distributions from this investment