Arbor Realty Trust (ABR) Q1 2026 earnings summary

Executive summary

• Achieved distributable earnings of $0.18 per share in Q1 2026, excluding $23 million in one-time realized losses from delinquent and REO asset resolutions.

• Net income attributable to common stockholders fell to $0.6 million from $30.4 million year-over-year, reflecting a 98% decrease.

• Board reset quarterly dividend to $0.17 per share to align with earnings and preserve capital.

• Progress made in resolving legacy and non-performing loans, with a clear path to further reductions over the next several quarters.

• Operates as an internally managed commercial mortgage REIT with two main business lines: structured loan origination/investment and agency loan origination/servicing.

Financial highlights

• Q1 distributable earnings were $37.4 million or $0.18 per share, excluding one-time losses.

• Distributable earnings per diluted share were $0.07, down from $0.28 year-over-year.

• Total revenues for Q1 2026 were $235.0 million, with net interest income of $59.8 million, down from $75.4 million year-over-year.

• Agency Business servicing portfolio grew to $36.31 billion, with $707.6 million in new loan originations.

• Realized losses of $23 million in Q1, above prior guidance due to accelerated loan resolutions.

Outlook and guidance

• Earnings expected to remain at low levels through Q2 and Q3, with growth anticipated in Q4 and 2027 as non-performing assets are resolved.

• Aggressive resolution of non-performing assets expected to resolve nearly all delinquencies by year-end 2026, improving net interest income by $75M–$95M annually.

• Management expects continued pressure from elevated and volatile interest rates, with potential for further loan delinquencies, modifications, and foreclosures.

• FHFA increased 2026 GSE lending caps, supporting Agency Business origination opportunities.

• Dividend set at $0.17 per share, expected to be covered by earnings for the rest of the year.