Key Highlights

  • Distributable Earnings were USD 14.8 million, or USD 0.08 per share, excluding USD 21.7 million of realized losses.
  • GAAP net loss to common stockholders was USD 85.4 million, or USD 0.51 per share, versus income of USD 0.20.
  • The board suspended the quarterly common dividend, preserving about USD 31 million a quarter, or USD 125 million annually.
  • Cash was about USD 400 million, with a plan to reach about USD 700 million by first-quarter end.

Results Hit by Higher Rates

Arbor Realty Trust, Inc. (NYSE:ABR) produced third-quarter 2026 distributable earnings of USD 14.8 million, or USD 0.08 per share, excluding realized losses of USD 21.7 million from resolving delinquent and real estate owned Assets that were previously reserved, within the USD 20 million to USD 30 million range guided last quarter. GAAP net loss attributable to common stockholders was USD 85.4 million, or USD 0.51 per share, against income of USD 38.5 million, or USD 0.20. Nine-month results were a loss of USD 122.1 million, or USD 0.66 per share.

Management said a sharp rise in interest rates accelerated delinquencies, slowed resolutions and reduced agency origination volumes, which affected gain on sale.

Drivers of the Quarter

About USD 450 million of new delinquencies reversed about USD 4 million of accrued interest and cut interest income by about USD 6 million, for a USD 10 million impact, partly offset by about USD 2 million from resolving roughly USD 250 million of prior delinquencies. The company incurred about USD 7 million of extra interest expense from its convertible Debt offering and added Leverage to build liquidity.

It recorded USD 34 million of additional Impairment on its real estate owned book and USD 27 million of specific reserves, for USD 61 million in total, up about USD 25 million from the second quarter, plus USD 27 million of general CECL reserves, up USD 11 million. Management said similar reserve and impairment levels are possible over the next few quarters.

Dividend Suspension and Liquidity

The board suspended the quarterly common Dividend effective immediately. Management said its objectives are to preserve capital, hold the Liquidity needed to repay upcoming maturities and operate the platform to resolve legacy issues and preserve book value. With about USD 400 million of cash and an organic plan to create another USD 300 million over four to five months through payoffs, Loan sales, real estate dispositions and financing efficiencies, the company anticipates cash near USD 700 million by the end of the first quarter, allowing repayment of USD 275 million of unsecured debt maturing in March while retaining USD 425 million of liquidity.

Dividends declared were USD 0.17 per share versus USD 0.30. The company has issued over USD 3 billion of new CLOs and completed over USD 12 billion of Capital markets transactions in 36 months. In single-family rental it originated USD 250 million in the quarter and about USD 700 million year to date.

Liquidity Milestones Ahead

Management anticipates earnings bottoming over the next two quarters and then building as delinquencies resolve, with realized losses of USD 20 million to USD 30 million per quarter continuing for four to six quarters. Items to watch include delinquency trends, resolution pace, reserve levels and progress on liquidity.