Arbor Realty Trust, Inc.

Overview

Arbor Realty Trust is a nationwide real estate investment trust (REIT) and direct lender that originates and services loans for commercial real estate. The company operates through two primary segments: a Structured Loan Origination and Investment Business and an Agency Loan Origination and Servicing Business.

Business segments

Structured Loan Origination and Investment Business

• Invests in a diversified portfolio of structured finance assets across multifamily, single-family rental (SFR), and other commercial real estate markets.
• Principal products: bridge loans, mezzanine loans, junior participating interests in first mortgages, and preferred equity.
• Also participates in real estate joint ventures, direct property acquisitions, real estate-related notes, and mortgage-related securities.
• Private Label platform allows securitization of loans or retention of the lowest-risk tranches (APL certificates) while selling other tranches to investors.

Agency Loan Origination and Servicing Business

• Originates, sells, and services multifamily mortgage loans through GSEs (Fannie Mae, Freddie Mac) and HUD, Ginnie Mae, and FHA programs.
• Retains servicing rights and asset management for substantially all loans originated and sold under GSE/HUD programs.
• Approved lender programs: Fannie Mae DUS, Freddie Mac Optigo, Freddie Mac SBL, and HUD MAP/LEAN.
• Also originates and sells Private Label loans under program guidelines, typically retaining servicing rights and potentially pooling/securitizing those loans.

Corporate structure and tax

• Organized to qualify as a REIT for U.S. federal income tax purposes.
• Assets related to the Agency Business are held in taxable REIT subsidiaries (TRSs).
• Most operations are conducted through the operating partnership, Arbor Realty Limited Partnership (ARLP).

Geography and scale (portfolio snapshot)

• Total loan and investment portfolio value: approximately $11.63 billion (2025).
• Large floating-rate loan portfolio: roughly 90% floating, 10% fixed.
• Unconsolidated equity affiliate stakes: $58.0 million.

Key metrics and portfolio details (as of 12/31/2025)

• Total employees: 653

Structured Business portfolio (as of 12/31/2025)

• Portfolio size: 632 loans
• Unpaid principal balance (UPB): $12.113 billion
• Weighted average pay rate: 6.49%
• Weighted average remaining months to maturity: 14.7 months (including extension options; 19.9 months if extensions included)

By asset class:

• Bridge Loans: 524 loans; UPB $11.3717 billion; pay rate 6.39%; average remaining maturity ~12.9 months
  • Multifamily: 224 loans
  • Single-Family Rental: 298 loans
  • Office: 1 loan
  • Retail: 1 loan
• Mezzanine Loans: 65 loans; UPB $290.2 million; pay rate 7.84%; average remaining maturity ~52.3 months
  • Multifamily: 63 loans
  • Other: 2 loans
• Construction: 34 loans (9 multifamily construction); UPB $249.0 million; pay rate 9.13%; average remaining maturity ~24.6 months
• Preferred Equity: 34 investments (32 Multifamily, 2 Other); UPB $202.1 million; pay rate 6.87%; average remaining maturity ~46.0 months

Agency Business portfolio and activity (2025)

• Originations: $5.07 billion
• Sales: $5.10 billion
• Commitment volume: $5.10 billion
• Sales margin (gains and fees as a % of loan sales volume): 138 basis points
• MSR (mortgage servicing rights) rate: 107 basis points

Agency servicing portfolio (by product and geography)

Product details:

• Fannie Mae (DUS): UPB $24.086 billion; ~66% of servicing UPB
  • Average life: ~5.5 years
  • Servicing fee rate: ~44.7 basis points
  • Geographic concentration (state): New York ~13%
• Freddie Mac (Optigo): UPB $7.455 billion; ~21% of servicing UPB
  • Average life: ~5.9 years
  • Servicing fee rate: ~18.3 basis points
  • Geographic concentration: Texas ~10%
• Private Label: UPB $2.558 billion; ~7% of servicing UPB
  • Average life: ~4.5 years
  • Servicing fee rate: ~18.7 basis points
  • Geographic concentration: North Carolina ~8%
• FHA: UPB $1.549 billion; ~4% of servicing UPB
  • Average life: ~19.1 years
  • Servicing fee rate: ~13.9 basis points
  • Geographic concentration: California ~7%
• Bridge loans serviced (sold to investors): UPB $0.278 billion; ~1% of servicing UPB
  • Average life: ~2.2 years
  • Servicing fee rate: ~10.4 basis points
  • Geographic concentration: Florida ~7%
• SFR - Fixed Rate: UPB $0.277 billion; ~1% of servicing UPB
  • Average life: ~4.0 years
  • Servicing fee rate: ~20.0 basis points
  • Geographic concentration: Georgia ~5%

Servicing portfolio total:

• UPB: $36.2037 billion (100% of servicing UPB)
• Weighted average life of loans: ~6.1 years
• Weighted average servicing fee rate: ~35.6 basis points

Geographic concentration (servicing portfolio):

• New York ~13%
• Texas ~10%
• North Carolina ~8%
• California ~7%
• Florida ~7%
• Georgia ~5%
• New Jersey ~5%
• Illinois ~4%
• Other ~41%

Portfolio mix notes

• Structured Portfolio: ~90% floating-rate, ~10% fixed-rate
• Unconsolidated equity investments: $58.0 million

Credit and funding posture

• Structured Business financing sources include CLOs, credit facilities, securitizations, and equity/debt offerings.
• Agency Business originations are financed via warehouse facilities and letters of credit with Fannie Mae, with risk-sharing and collateral requirements.
• The company uses hedging to manage interest rate risk in its floating-rate assets; hedges introduce counterparty and basis risk considerations.

Business model and strategy

• The firm focuses on providing real estate financing across multiple product types, emphasizing rapid execution, credit quality, and borrower relationships.
• Agency Business operations are supported by established relationships with Fannie Mae, Freddie Mac, and HUD and provide a range of loan products with an integrated servicing framework.
• As a REIT, the company distributes a portion of taxable income to stockholders in accordance with REIT qualification requirements; TRSs handle non-exempt income activities related to the Agency Business.