Arbor Realty Trust Reports Fourth Quarter and Full Year 2018 Results and Declares Common Stock Dividend
Fourth Quarter Company Highlights:
· GAAP net income of $0.47 per diluted common share; AFFO of $0.29, or $0.39 per share excluding a $10 million non-cash loss reserve on a legacy asset(1)
· Declares a cash dividend on common stock of $0.27 per share, 29% higher than a year ago
· Declared a special dividend of $0.15 per share of common stock
· Raised $100.5 million of capital in a common stock offering
· Segment income of $42.4 million
· Loan originations of $1.62 billion, a 15% increase from 3Q18
· Servicing portfolio of $18.60 billion, up 5% from 3Q18 and 15% for 2018
· Segment income of $4.7 million
· Loan originations of $447.5 million
Full Year Highlights:
· GAAP net income of $1.50 and AFFO of $1.21 per diluted common share(1)
· Record loan originations of $6.78 billion, with $5.12 billion from the agency business, a 15% increase over 2017
· Improved funding sources by adding our tenth and largest collateralized securitization vehicle totaling $560.0 million, increased warehouse facility capacity and reduced pricing, issued $389.5 million of senior debt replacing $336.1 million of higher cost senior debt
· Raised $217.1 million of capital through the issuance of common stock and debt
· Structured portfolio growth of 24% from loan originations of $1.66 billion
· Declared dividends on common stock of $1.13 per share, a 57% increase from 2017
· Significant return to shareholders of 30% for 2018
· Market cap surpasses $1 billion mark
· Recognized a $10 million gain from the settlement of a litigation
Uniondale, NY, February 15, 2019 — Arbor Realty Trust, Inc. (NYSE: ABR), today announced financial results for the fourth quarter and year ended December 31, 2018. Arbor reported net income for the quarter of $37.2 million, or $0.47 per diluted common share, compared to $21.9 million, or $0.35 per diluted common share for the quarter ended December 31, 2017. Net income for the year was $108.3 million, or $1.50 per diluted common share, compared to $65.8 million, or $1.12 per diluted common share for the year ended December 31, 2017. Adjusted funds from operations (“AFFO”) for the quarter was $28.9 million, or $0.29 per diluted common share, compared to $20.7 million, or $0.25 per diluted common share for the quarter ended December 31, 2017. AFFO for the year was $113.1 million, or $1.21 per diluted common share, compared to $83.9 million, or $1.04 per diluted common share for the year ended December 31, 2017.
The Company announced today that its Board of Directors has declared a quarterly cash dividend of $0.27 per share of common stock for the quarter ended December 31, 2018, representing an increase of 29% over the prior year dividend of $0.21 per share. The dividend is payable on March 20, 2019 to common stockholders of record on March 1, 2019. The ex-dividend date is February 28, 2019.
The Company also announced today that its Board of Directors has declared cash dividends on the Company’s Series A, Series B and Series C cumulative redeemable preferred stock reflecting accrued dividends from December 1, 2018 through February 28, 2019. The dividends are payable on February 28, 2019 to preferred stockholders of record on February 15, 2019. The Company will pay total dividends of $0.515625, $0.484375 and $0.53125 per share on the Series A, Series B and Series C preferred stock, respectively.
In addition, the Board of Directors declared a special dividend of $0.15 per common share, which was paid in a combination of 80% common stock and 20% cash in January 2019.
Earnings Conference Call
The Company will host a conference call today at 10:00 a.m. Eastern Time. A live webcast of the conference call will be available at www.arbor.com in the investor relations area of the website. Those without web access should access the call telephonically at least ten minutes prior to the conference call. The dial-in numbers are (866) 516-5034 for domestic callers and (678) 509-7613 for international callers. Please use participant passcode 6283438.
After the live webcast, the call will remain available on the Company’s website through March 31, 2019. In addition, a telephonic replay of the call will be available until February 22, 2019. The replay dial-in numbers are (855) 859-2056 for domestic callers and (404) 537-3406 for international callers. Please use passcode 6283438.
About Arbor Realty Trust, Inc.
Arbor Realty Trust, Inc. (NYSE:ABR) is a nationwide real estate investment trust and direct lender, providing loan origination and servicing for multifamily, seniors housing, healthcare, and other diverse commercial real estate assets. Headquartered in Uniondale, New York, Arbor manages a multibillion-dollar servicing portfolio, specializing in Fannie Mae, Freddie Mac, and other government-sponsored enterprises, as well as CMBS, bridge, mezzanine, and preferred equity lending. Rated by Standard and Poor’s and Fitch Ratings, Arbor is committed to building on its reputation for service, quality, and flexibility, and dedicated to providing our clients excellence over the entire life of a loan.
Safe Harbor Statement
Certain items in this press release may constitute forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Arbor can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from Arbor’s expectations include, but are not limited to, continued ability to source new investments, changes in interest rates and/or credit spreads, changes in the real estate markets, and other risks detailed in Arbor’s Annual Report on Form 10-K for the year ended December 31, 2018 and its other reports filed with the SEC. Such forward-looking statements speak only as of the date of this press release. Arbor expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Arbor’s expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.
1. Non-GAAP Financial Measures
During the quarterly earnings conference call, the Company may discuss non-GAAP financial measures as defined by SEC Regulation G. In addition, the Company has used non-GAAP financial measures in this press release. A supplemental schedule of non-GAAP financial measures and the comparable GAAP financial measure can be found on page 11 of this release.
Arbor Realty Trust, Inc.
Paul Elenio, Chief Financial Officer
The Ruth Group
Bonnie Habyan, EVP of Marketing