Company: ABR-PF
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001253986-25-000014
Chunk: 134

Company: ARBOR REALTY TRUST INC
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 1
Chunk 134
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 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.

54

Significant Developments During the Second Quarter of 2025

Financing and Capital Markets Activity

•Closed our first build-to-rent collateralized securitization vehicle totaling $801.9 million, of which $682.6 million consisted of investment grade notes. We retained $41.0 million of the investment grade notes, along with the below investment grade notes totaling $119.3 million.

Structured Business Activity

•Balance sheet portfolio of $11.61 billion (up 1%), as loan originations of $716.5 million outpaced loan runoff totaling $519.7 million; 

•We modified 8 loans with a total UPB of $251.9 million. Six of these loans with a total UPB of $144.9 million were modified to provide temporary rate relief through a pay and accrual feature (see Note 3 for details);

•We foreclosed on 6 loans with a total UPB of $188.2 million, 3 of which we took back the underlying collateral as REO assets totaling $72.3 million and 3 were sold totaling $115.9 million. In addition, we sold an existing $7.1 million REO asset; and

•In April 2025, Wakefield entered into an agreement to sell its interest in a residential mortgage banking business (an equity investment we refer to as ARI), as described in Note 8.

Agency Business Activity. Servicing portfolio of $33.76 billion (up $277.7 million); Agency originations of $857.1 million, including $88.5 million of new Agency loans that were recaptured from our structured Business runoff. 

Subsequent Event. In July 2025, we issued $500.0 million aggregate principal amount of 7.875% senior unsecured notes due in 2030 through a private offering. The proceeds are being used to repay the remaining outstanding 7.50% convertible notes due August 2025 and to add ~$200 million of liquidity.

Current Market Conditions, Risks and Recent Trends

During 2024, the Federal Reserve lowered the federal funds rate three times totaling a 100-basis point reduction, which marked the first rate