Requesting Clarification and Updates on Certain Assets
UNIONDALE, N.Y., Jan. 22 /PRNewswire-FirstCall/ -- Arbor Realty Trust,
Inc. (NYSE: ABR), a real estate investment trust focused on the business of
investing in real estate related bridge and mezzanine loans, preferred and
direct equity investments, mortgage-related securities and other real estate
related assets, today announced that the Company has sent a letter to CBRE
Realty Finance, Inc. (NYSE: CBF) requesting clarification and updates on
certain assets. Below is the letter as transmitted.
January 22, 2008
Mr. Kenneth Witkin
Chief Executive Officer and Director
CBRE Realty Finance, Inc.
185 Asylum Street, 31st Floor
Hartford, CT 06103
It has come to our attention that since your earnings call of November 12,
2007, in which you described the Company's net loss of $50 million, or
$1.64 per share, substantially negatively impacted by two assets
foreclosed during the second quarter of 2007, that certain events have
occurred such as:
* there has been a default on the Drake Hotel loan and principal and
interest is past due (we believe your position is between $40 million
and $45 million) -- you have informed us that the Company has purchased
this loan out of one of its CDOs utilizing substantial liquidity
available to the Company;
* I believe that the Macklowe Equity Office Property loan, a part of which
is in one of your CDOs, is likely to go into default in early February
2008 (we believe your position is between $40 million and $45 million);
* the continued deterioration in the market makes it difficult to believe
that your November 12, 2007 statement that your $77 million "joint
venture assets are performing satisfactorily ... " is correct.
Additionally, we would like to know whether your comments of November 12,
2007 "We have no non-performing loans in our debt portfolio, ... and
overall [I] am personally satisfied with the current performance of our
core portfolio" are true and correct currently or need to be updated to
not omit material facts in light of the current market and circumstances.
Your immediate response is requested due to the potential materiality of
these issues and your prior public statements in the market. If any
statements are incorrect, please inform me immediately. It is important
that the Company update the market as to interim and projected write-downs
which could have a material effect on your Company.
Chief Executive Officer
Arbor Realty Trust, Inc.
About Arbor Realty Trust, Inc.
Arbor Realty Trust, Inc. is a real estate investment trust which invests
in a diversified portfolio of multifamily and commercial real estate related
bridge and mezzanine loans, preferred equity investments, mortgage related
securities and other real estate related assets. Arbor commenced operations
in July 2003 and conducts substantially all of its operations through its
operating partnership, Arbor Realty Limited Partnership and its subsidiaries.
Arbor is externally managed and advised by Arbor Commercial Mortgage, LLC, a
national commercial real estate finance company operating through 11 sales and
origination support offices in the US that specializes in debt and equity
financing for multi-family and commercial real estate.
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, 2006 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.
Arbor Realty Trust, Inc. Stephanie Carrington
Paul Elenio, Chief Financial Officer The Ruth Group
Bonnie Habyan, SVP of Marketing
SOURCE Arbor Realty Trust, Inc.
Paul Elenio, Chief Financial Officer, +1-516-832-7422, firstname.lastname@example.org, or
Bonnie Habyan, SVP of Marketing, +1-516-229-6615, email@example.com, both of
Arbor Realty Trust, Inc.; or Investors, Stephanie Carrington of The Ruth Group,
+1-646-536-7017, firstname.lastname@example.org, for Arbor Realty Trust, Inc.
-0- Jan/22/2008 16:45 GMT
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