Arbor Realty Q2 net income nearly halves as yields drop

Arbor Realty Trust

01/08/2025 13:41

Overview

Arbor Realty Q2 net income falls to $24 mln from $47.4 mln yr ago

Distributable earnings drop to $52.1 mln from $91.6 mln yr ago

Co issued $500 mln senior unsecured notes to repay debt, add liquidity

Result Drivers

LOWER YIELDS - Loan and investment portfolio, excluding reserves, was $11.53 bln, with a weighted average yield of 7.95%, down from $11.39 bln and 8.15% in Q1 due to non-performing and foreclosed on loans

SECURITIZATION VEHICLE - Closed first build-to-rent collateralized securitization vehicle totaling $801.9 mln, improving terms over warehouse lines

DEBT MANAGEMENT - Issued $500 mln of senior unsecured notes to repay convertible senior notes and add ~$200 mln of liquidity

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 EPS
$0.12
Q2 Net Income
$36.31 mln
Q2 Net Interest Income
$68.72 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the specialized reits peer group is "buy."

Wall Street's median 12-month price target for Arbor Realty Trust Inc is $11.00, about 1.5% below its July 31 closing price of $11.16

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nGNX5NKQxn

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)