Arbor Realty Trust Inc (ABR-PE) Q1 2026 Earnings Report

Key QQ1 2026 metrics and commentary (USD unless noted)
- Revenue: $25.74 million; Gross profit: -$21.94 million; EBITDA: $193.14 million; Operating income: $8.06 million; Net income: $12.92 million; EPS: $0.0665; Diluted EPS: $0.0610; Weighted average shares: 194.19 million (non-diluted), 211.74 million (diluted)
- YoY / QoQ revenue: -82.2% / -91.8%; Gross profit: -117.5% / -107.7%; Operating income: -89.8% / -96.5%; Net income: -68.3% / -48.2%; EPS: -58.4% / -10.7%
- Distributable earnings: $37.4 million for Q1, or $0.18 per share, excluding $23 million of one-time realized losses
- Dividend: Board reset to $0.17 per share; expected to be covered by earnings for remainder of 2026 with potential for growth in late 2026 and 2027
- Balance sheet / liquidity: cash and cash equivalents $407.1 million; total assets $14.692 billion; total stockholders’ equity $2.980 billion; preferred stock $0.634 billion; CECL reserve ~ $131 million on loans; REO impairment reserves ~$21.5 million in 1Q06; REO target $250–$300 million by year-end 2026; nonperforming assets (delinquencies + REO) ~$1.0 billion at 3/31/26
- Core asset yields / funding: core investments ~$12.0 billion; all-in debt cost ~6.4%; average cost of funds ~6.52%; spot net interest spreads flat ~0.63%; MSR portfolio supports roughly $129 million gross annual servicing income; balanced across GSE agency origination and balance sheet lending
- Production and pipeline: agency and balance sheet lending pipelines – Q1 agency volume to $795 million (incl. $88 million CMBS brokerage); Q2 production underway with ~ $350 million closed through May 2026; construction lending closed $113 million in Q1 with ~$250 million expected in Q2; SFR origination ~$125 million in Q1 with a potential material uptick as housing legislation clarifications emerge; target production range for 2026 remains $750 million to $1 billion
- Guidance signals: expect Q2 earnings around $0.15–$0.17 per share (adjusted for a ~$0.02 drag), Q3 around $0.17, potential growth in Q4, and meaningful upside in 2027 as delinquent assets convert to performing loans.
- Market stance: improving sentiment on SFR/build-to-rent post-legislation clarifications; rates higher-for-longer path acknowledged; emphasis on reducing non-interest income drag and accelerating legacy asset resolution with guarantees and capital support for underlying properties.