Arbor Realty Trust Reports Second Quarter 2008 Results

Second Quarter Highlights: 
- Net income of $11.7 million, or $0.56 per diluted common share 
- Monetized a portion of equity interest in Prime, receiving $33 million in 
cash, and generated approximately $250 million in cash from equity kickers in 
14 of 17 quarters since becoming a public company 
- Declared quarterly dividend of $0.62 per share 
- Recorded $2.0 million in loan loss reserves 
UNIONDALE, N.Y., Aug. 8 /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 financial results for the quarter ended June
30, 2008. Arbor reported net income for the quarter of $11.7 million, or $0.56
per diluted common share, compared to net income for the quarter ended June
30, 2007 of $31.7 million, or $1.75 per diluted common share. Excluding $0.4
million of net loss from Alpine Meadows, net income for the quarter ended June
30, 2008 was $12.1 million, or $0.58 per diluted common share. Excluding $19.7
million of net income from the 450 West 33rd Street, Toy building, and Prime
transactions, net income for the quarter ended June 30, 2007 was $12.0
million, or $0.67 per diluted common share.(1) 
Net income for the six months ended June 30, 2008 was $24.4 million, or
$1.18 per diluted common share, compared to net income for the six months
ended June 30, 2007 of $48.4 million, or $2.74 per diluted share. Excluding
$0.4 million of net loss from Alpine Meadows for the six months ended June 30,
2008 and $25.8 million of net income from the 450 West 33rd Street, Toy
building, Prime and On the Avenue transactions for the six months ended June
30, 2007, net income for the six months ended June 30, 2008 was $24.8 million,
or $1.19 per diluted common share, compared to net income for the six months
ended June 30, 2007 of $22.7 million, or $1.29 per diluted common share.(1) 
In the second quarter of 2008, the Company monetized a portion of its
equity interest in Prime Outlets ("Prime") and received approximately $33
million in cash. Under the terms of the agreement, the Company will transfer
16.67% of its 24.17% interest in Prime, at a value of approximately $37.0
million, in exchange for preferred and common operating partnership units of
Lightstone Value Plus REIT L.P. Additionally, Arbor borrowed approximately $33
million from Lightstone Value Plus Real Estate Investment Trust, Inc., which
is initially secured by its 16.67% interest in Prime, has an eight year term
and bears interest at a fixed rate of 4.00%, with payment deferred until the
closing of the transaction. Upon the closing of this transaction, which is
expected to occur on or before June 26, 2009, the Company will exchange its
16.67% interest for the preferred and common operating partnership units,
which will then collateralize the $33 million loan. The preferred units will
pay a preferred return of 4.63% and after five years, the preferred units may
be redeemed at par by Lightstone Value Plus REIT L.P. for cash and the loan
would become due upon such redemption. The Company owns its 16.67% interest
through a consolidated entity, which has a 25% interest in Prime, with a third
party member owning the remaining 8.33%. In the second quarter of 2008, the
Company recorded approximately $33 million of cash, $49.5 million of debt
related to the proceeds received from the loan secured by the entity's 25%
interest in Prime which was recorded in notes payable, a $16.5 million
receivable from the third party member which was recorded in other assets and
a deferred expense related to the incentive management fee of approximately
$7.3 million. The transaction provides for a tax deferral for an estimated
period of five years, subject to certain carve out provisions. In addition,
Arbor retained a 7.5% ownership interest in Prime. 
Additionally during the quarter, the Company recorded a $0.6 million loss
from its $13.2 million equity investment in the Alpine Meadows unconsolidated
joint venture. This amount reflects Arbor's portion of the joint venture's
losses, including depreciation expense, and was recorded in loss from equity
affiliates and as a reduction to the Company's investment in equity affiliates
on the balance sheet. 


    1. See attached supplemental schedule of non-GAAP financial measures on
       page 8 & 9.


The net balance in the loan and investment portfolio was $2.5 billion at
June 30, 2008, compared to $2.6 billion at March 31, 2008. The average balance
of the loan and investment portfolio during the second quarter of 2008 was
$2.6 billion and the average yield on these assets for the quarter was 7.91%,
compared to $2.6 billion and 8.35% for the first quarter of 2008. 
At June 30, 2008, the balance of debt financing on the loan and investment
portfolio was $2.2 billion, mainly unchanged from March 31, 2008. The average
balance of debt financing on the loan and investment portfolio during the
second quarter of 2008 was $2.2 billion and the average cost of these
borrowings was 5.06%, compared to $2.2 billion and 5.64% for the first quarter
of 2008. 
For the second quarter of 2008, Arbor's manager, Arbor Commercial
Mortgage, LLC, earned $8.5 million of incentive compensation, of which $1.2
million was recorded as management fee expense and $7.3 million was recorded
as deferred management fee related to the Prime transaction. Arbor Commercial
Mortgage, LLC intends to exercise its option to receive 50% of the incentive
compensation in shares of Arbor Realty Trust's common stock. 
Financing Activity 
As of June 30, 2008, Arbor's financing facilities for its loan and
investment portfolio totaled approximately $2.5 billion and borrowings
outstanding under such facilities were $2.2 billion. 
During the second quarter, the Company entered into an uncommitted master
repurchase agreement with a financial institution for the purpose of financing
the purchase of CRE CDO bond securities. The facility has a two-year term from
the effective date of the agreement and bears interest at pricing over LIBOR. 
In July 2008, a $60 million working capital facility was extended for one
year to June 2009 and was amended to a $45 million facility. In addition, the
amendment includes required paydowns of $3 million quarterly beginning October
1, 2008 and bears interest at a rate of approximately 500 basis points over
Libor. At June 30, 2008, the facility had an aggregate outstanding balance of
approximately $48 million. 
Portfolio Activity 
During the quarter, Arbor originated two new bridge loans totaling $6
million and purchased seven CRE CDO bonds at a discounted price of
approximately $58 million with a face amount of approximately $83 million. 
During the quarter, 11 loans paid off on properties that were either sold
or refinanced outside of Arbor with an outstanding balance of $152 million.
Three loans were either refinanced or modified with Arbor totaling $86
million, of which one loan totaling $15 million was scheduled to repay during
the quarter and another loan totaling approximately $64 million had a $1.0
million loan loss reserve recorded in the first quarter of 2008. 
In addition, three loans totaling approximately $95 million were extended
during the quarter in accordance with the extension options of the
corresponding loan agreements. 
At June 30, 2008, the loan and investment portfolio unpaid principal
balance was $2.5 billion, with a weighted average current interest pay rate of
7.07%. At the same date, advances on financing facilities pertaining to the
loan and investment portfolio totaled $2.2 billion, with a weighted average
interest rate of 4.85% excluding financing and interest rate swap costs. 
As of June 30, 2008, Arbor's loan portfolio consisted of 33% fixed-rate
and 67% variable rate loans. 
As previously disclosed, the Company had a $5.0 million mezzanine loan for
which a $1.5 million provision for loan loss was established during the first
quarter of 2008. In April 2008, the Company foreclosed on the property, which
was subject to a $41.4 million first mortgage. As of June 30, 2008, the
Company recorded this investment on its balance sheet as real estate owned at
fair value which included the $1.5 million provision previously established,
recorded the $41.4 million first lien in mortgage notes payable and recorded a
net loss for the quarter of approximately $19,000 in selling and
administrative expenses. 
In addition, as previously disclosed, the Company had a $13.8 million
bridge loan, which the Company established a $1.5 million provision for loan
loss during the fourth quarter of 2007. In May 2008, the Company received $0.3
million from the borrower plus a $0.3 million note from the borrower, reducing
the carrying amount to $11.7 million. In May 2008, the property was sold for
approximately $11.8 million and the Company provided the purchaser with a
$12.8 million loan and investment, of which approximately $11.3 million was
funded as of June 30, 2008. The Company also received a 25% equity
participation interest in the property. As a result of this transaction, the
Company recorded a loss of approximately $1.7 million, of which $1.5 million
was charged-off against the allowance for loan losses and approximately $0.2
million was recorded in selling and administrative expenses in the second
quarter of 2008 related to additional expenses incurred. 
During the second quarter, the Company recorded a $2.0 million loan loss
reserve related to a loan with an outstanding principal balance of
approximately $9.9 million. The loan loss reserve was the result of the
Company's regular quarterly risk rating review process, which is based on
several factors including current market conditions, real estate values and
the operating status of each property. As previously mentioned, the Company
had a $1.5 million provision for loan loss on a $5.0 million mezzanine loan
that was reclassified to real estate owned during the second quarter of 2008.
At June 30, 2008, the Company's total loan loss reserves were $3.5 million
relating to three loans with an aggregate outstanding principal balance of
approximately $75.2 million. 
As of June 30, 2008, two loans with an outstanding principal balance of
approximately $80.1 million were classified as non-performing. Income
recognition has been suspended and will resume when the loans become
contractually current and performance has recommenced. As previously
disclosed, this amount included a $70.4 million bridge loan on a land
development project in New York City which, effective April 1, 2008, income
recognition had been suspended. During the second quarter of 2008, the Company
received approximately $0.6 million, equal to approximately one month's
interest on the loan. In July 2008, the Company elected to begin the
foreclosure process on the entity that owns the property. The principal amount
of this loan is not deemed to be impaired at this time and no loan loss
reserve has been recorded to date. In addition, as of June 30, 2008, one of
the three loans reserved for, with an outstanding principal balance of
approximately $9.9 million, had been classified as non-performing. 
Operating Partnership Units Redemption 
In June 2008, the Company's external manager, Arbor Commercial Mortgage
("ACM"), exercised its right to redeem its approximate 3.8 million operating
partnership units ("OP units") in the Company's operating partnership for
shares of the Company's common stock on a one-for-one basis. 
Consequently, this resulted in the elimination of the accounting for
minority interest as it relates to ACM's operating partnership ownership
interest in the Company. In addition, the special voting preferred shares
paired with each OP unit, pursuant to a pairing agreement, were redeemed
simultaneously and cancelled by the Company. 
Dividend 
As previously announced, the Board of Directors declared a dividend of
$0.62 per share for the quarter ended June 30, 2008, to be paid on August 26,
2008 to shareholders of record on August 15, 2008. 
Equity Participation Interests 
Attached as an exhibit to this press release is a schedule of certain data
pertaining to the Company's investments with equity participation interests.
As previously disclosed, the Company has entered into an agreement to transfer
16.67% of its 24.17% interest in Prime for preferred and common operating
partnership units in another REIT. Upon the closing of this transaction, which
is expected to occur prior to the third quarter of 2009, the Company expects
to recognize approximately $26 million of net income. In addition during the
second quarter, as previously disclosed, the Company refinanced a loan for
$12.8 million and received a 25% equity participation interest in the
property, and recorded a $0.6 million loss from its equity interest in the
Alpine Meadows investment. 
Earnings Conference Call 
Management will host a conference call today at 10:00 a.m. EDT. A live
webcast of the conference call will be available online at
www.arborrealtytrust.com. Web participants are encouraged to go to Arbor's Web
site at least 15 minutes prior to the start of the call to register, download
and install any necessary audio software. Listening to the webcast requires
speakers and RealPlayer(TM) software, downloadable without charge at
www.real.com. Those without Web access should access the call telephonically
at least ten minutes prior to the conference call. The dial-in numbers are
(866) 202-0886 for domestic callers and (617) 213-8841 for international
callers. The participant passcode for both is 21706816. 
After the live webcast, the call will remain available on Arbor's Web
site, www.arborrealtytrust.com through September 5, 2008. In addition, a
telephonic replay of the call will be available until August 15, 2008. The
replay dial-in number is (888) 286-8010 for domestic callers and
(617) 801-6888 for international callers. Please use passcode: 46256143. 
About Arbor Realty Trust, Inc. 
Arbor Realty Trust, Inc. is a real estate investment trust, which invests
in a diversified portfolio of multi-family 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 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, 2007 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. 


    Contacts:                                 Investors:
    Arbor Realty Trust, Inc.                  Stephanie Carrington
    Paul Elenio, Chief Financial Officer      The Ruth Group
    516-506-4422                              646-536-7017
    pelenio@arbor.com                         scarrington@theruthgroup.com
    Media:
    Bonnie Habyan, SVP of Marketing
    516-506-4615
    bhabyan@arbor.com
                  ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
                  CONSOLIDATED INCOME STATEMENTS (Unaudited)
                                  Quarter Ended             Six Months Ended
                                     June 30,                   June 30,
                                2008         2007          2008          2007
     Revenue:
     Interest income     $51,869,164  $74,800,274  $107,285,494  $141,260,927
     Other income             28,629       17,186        49,322        23,356
         Total revenue    51,897,793   74,817,460   107,334,816   141,284,283
     Expenses:
     Interest expense     27,857,322   38,527,983    59,161,421    70,640,502
     Employee
      compensation
      and benefits         2,686,002    2,753,662     4,663,345     4,484,017
     Selling and
      administrative       2,793,161    1,593,494     4,331,227     2,814,866
     Provision for loan
      losses               2,000,000            -     5,000,000             -
     Management fee -
      related party        2,153,838   10,645,065     4,733,272    15,518,747
         Total expenses   37,490,323   53,520,204    77,889,265    93,458,132
     Income before
      (loss) income from
      equity affiliates,
      minority interest
      and provision for
      income taxes        14,407,470   21,297,256    29,445,551    47,826,151
     (Loss) income from
      equity affiliates     (562,000)  26,025,788      (562,000)   26,025,788
     Income before
      minority interest
      and provision for
      income taxes        13,845,470   47,323,044    28,883,551    73,851,939
     Income allocated to
      minority interest    2,117,464    6,638,020     4,450,754    10,318,334
     Income before
      provision for
      income taxes        11,728,006   40,685,024    24,432,797    63,533,605
     Provision for
      income taxes               -      9,000,000           -      15,085,000
     Net income          $11,728,006  $31,685,024   $24,432,797   $48,448,605
     Basic earnings per
      common share             $0.56        $1.76         $1.18         $2.75
     Diluted earnings
      per common share         $0.56        $1.75         $1.18         $2.74
     Dividends declared
      per common share         $0.62        $0.62         $1.24         $1.22
     Weighted average
      number of shares
      of common stock
      outstanding:
         Basic            20,906,383   17,993,924    20,739,081    17,590,860
         Diluted          24,721,660   21,873,322    24,562,520    21,453,969
                  ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
             SUPPLEMENTAL SCHEDULE OF NON-GAAP FINANCIAL MEASURES
                                 (Unaudited)
                                  Quarter Ended             Six Months Ended
                                      June 30,                   June 30,
                                 2008         2007          2008         2007
    Total revenue, GAAP
     basis                $51,897,793  $74,817,460  $107,334,816 $141,284,283
    Subtract: Prime
               transaction          -   (4,166,666)            -   (4,166,666)
              On the
               Avenue
               transaction          -            -             -  (15,997,843)
              450 West 33rd
               Street
               transaction          -  (10,425,579)            -  (10,425,579)
    Total revenue, as
     adjusted             $51,897,793  $60,225,215  $107,334,816 $110,694,195
    Net income, GAAP
     basis                $11,728,006  $31,685,024   $24,432,797  $48,448,605
    Subtract: Prime
               transaction          -   (3,783,988)            -   (3,783,988)
              On the
               Avenue
               transaction          -            -             -   (6,099,372)
              Toy
               transaction          -   (9,342,631)            -   (9,342,631)
              450 West 33rd
               Street
               transaction          -   (6,529,699)            -   (6,529,699)
    Add: Alpine Meadows       372,229            -       372,229            -
    Net income, as
     adjusted             $12,100,235  $12,028,706   $24,805,026   $22,692,915
    Diluted earnings
     per common share,
     GAAP basis                 $0.56        $1.75         $1.18         $2.74
    Diluted earnings
     per common share,
     as adjusted                $0.58        $0.67         $1.19         $1.29
    Diluted weighted
     average shares
     outstanding           24,721,660   21,873,322    24,562,520    21,453,969
    a.) Given the magnitude of the Prime, On the Avenue, Toy and 450 West 33rd
    Street transactions and the nature of the Alpine Meadows operation, Arbor
    has elected to report adjusted revenues, net income and earnings per share
    for the affected periods to help ensure the comparability of the reporting
    periods. Management considers these non-GAAP financial measures to be
    effective indicators, for both management and investors, of Arbor's
    financial performance. Arbor's management does not advocate that investors
    consider such non-GAAP financial measures in isolation from, or as a
    substitute for, financial information prepared in accordance with GAAP.
                  ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
       SUPPLEMENTAL SCHEDULE OF NON-GAAP FINANCIAL MEASURES - Continued
                                 (Unaudited)
                                                              June 30, 2008
      GAAP Stockholders' Equity                                $469,178,986
      Add: 450 West 33rd Street
            transaction - deferred revenue                       77,123,133
           Unrealized loss on
            derivative instruments                               26,121,426
      Subtract: 450 West 33rd Street transaction -
                 prepaid management fee                         (19,047,949)
      Adjusted Stockholders' Equity                            $553,375,596
      Adjusted book value per share                                  $22.37
      GAAP book value per share                                      $18.97
      Common shares outstanding                                  24,737,696
    b.) Given the magnitude and the deferral structure of the 450 West 33rd
    Street transaction combined with the change in the fair value of
    certain derivative instruments, Arbor has elected to report adjusted
    book value per share for the affected period to currently reflect the
    future impact of the 450 West 33rd Street transaction on the company's
    financial condition as well as the evaluation of Arbor without the
    effects of unrealized losses from certain of the Company's derivative
    instruments. Management considers this non-GAAP financial measure to be
    an effective indicator, for both management and investors, of Arbor's
    financial performance. Arbor's management does not advocate that
    investors consider this non-GAAP financial measure in isolation from,
    or as a substitute for, financial information prepared in accordance
    with GAAP.
                  ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
                         CONSOLIDATED BALANCE SHEETS
                                                 June 30,        December 31,
                                                   2008              2007
                                               (Unaudited)        (Audited)
    Assets:
    Cash and cash equivalents                  $46,195,338       $22,219,541
    Restricted cash                            144,099,637       139,136,105
    Loans and investments, net               2,444,641,847     2,592,093,930
    Available-for-sale securities, at
     fair value                                 10,111,759        15,696,743
    Securities held to maturity, net            58,498,406                 -
    Investment in equity affiliates             28,850,691        29,590,190
    Real estate owned, net                      46,891,971                 -
    Deferred management fee - related party      7,292,448                 -
    Prepaid management fee - related party      19,047,949        19,047,949
    Other assets                                96,439,720        83,709,076
        Total assets                        $2,902,069,766    $2,901,493,534
    Liabilities and Stockholders' Equity:
    Repurchase agreements                     $198,755,637      $244,937,929
    Collateralized debt obligations          1,129,649,000     1,151,009,000
    Junior subordinated notes to
     subsidiary trust issuing preferred
     securities                                276,055,000       276,055,000
    Notes payable                              635,388,432       596,160,338
    Mortgage note payable                       41,440,000                 -
    Due to related party                         7,914,458         2,429,109
    Due to borrowers                             8,392,612        18,265,906
    Deferred revenue                            77,123,133        77,123,133
    Other liabilities                           58,172,508        67,395,776
        Total liabilities                    2,432,890,780     2,433,376,191
    Minority interest                                    -        72,854,258
    Stockholders' equity:
    Preferred stock, $0.01 par value:
     100,000,000 shares authorized; 0
     shares issued and outstanding at
     June 30, 2008 and 3,776,069 shares
     issued and outstanding at
     December 31, 2007                                   -            37,761
    Common stock, $0.01 par value:
     500,000,000 shares authorized;
     25,017,096 shares issued, 24,737,696
     shares outstanding at June 30, 2008
     and 20,798,735 shares issued,
     20,519,335 shares outstanding at
     December 31, 2007                             250,171           207,987
    Additional paid-in capital                 442,592,734       365,376,136
    Treasury stock, at cost - 279,400
     shares                                     (7,023,361)       (7,023,361)
    Retained earnings                           64,362,458        65,665,951
    Accumulated other comprehensive loss       (31,003,016)      (29,001,389)
    Total stockholders' equity                 469,178,986       395,263,085
    Total liabilities and stockholders'
     equity                                 $2,902,069,766    $2,901,493,534
                           Arbor Realty Trust, Inc.
                    Summary of Equity and Profit Interests
                      (all dollar amounts in thousands)
                                  Unaudited
                                                                     Current
                                     Initial ART                       Cash
                                      Investment   Investment         Equity
    Name                                Amount         Date         Investment
    80 Evergreen                          $384         3Q03             $201
    930 Flushing                         1,126         3Q03              322
    Prime Portfolio                      2,100         4Q03                -
    Prime Portfolio                                                        -
    450 W. 33rd St                       1,500         4Q03            1,137
    823 Park Avenue                          -         3Q04                -
    York Avenue                            540         3Q04                -
    Toy Building                        10,000         2Q05            5,720
    Homewood Mtn Resort                      -         2Q06                -
    Richland Terrace Apartments              -         3Q06                -
    Ashley Court Apartments                  -         3Q06                -
    Nottingham Village                       -         1Q07                -
    Extended Stay Hotel Portfolio      115,000         2Q07          115,000
    Alpine Meadows                      13,220         3Q07           13,220
    St. John's Development                 500         4Q07              500
    Windrush Village Apartments              -         2Q08              445
                                                  Approximate
                                                     Square       Property
    Name                              Profit %      Footage         Type
    80 Evergreen                        12.50%       77,680       Warehouse
    930 Flushing                        12.50%      304,080       Warehouse
    Prime Portfolio                      7.50%    6,700,000     Retail Outlets
    Prime Portfolio                     16.67%(5) 6,700,000     Retail Outlets
    450 W. 33rd St                       0.58%(1) 1,746,734         Office
    823 Park Avenue                     20.00%       52,374       Conversion
    York Avenue                          8.70%       45,200       Conversion
    Toy Building                        10.00%      320,000       Conversion
    Homewood Mtn Resort                 25.60%        1,224 (3)     Land
    Richland Terrace Apartments         25.00%      342,152      Multi Family
    Ashley Court Apartments             25.00%      177,892      Multi Family
    Nottingham Village                  25.00%      285,900      Multi Family
    Extended Stay Hotel Portfolio       16.17%          684 (4)     Hotel
    Alpine Meadows                      39.00%        2,163 (3)     Land
    St. John's Development              50.00%           23 (3)     Land
    Windrush Village Apartments         25.00%      221,726      Multi Family
                                                    Current
                                                 Debt Balance
    Name                            Location      on Property      Comments
    80 Evergreen                  Brooklyn, NY       $5,000    Property
                                                               refinanced June
                                                               2008
    930 Flushing                  Brooklyn, NY       24,789    Property
                                                               refinanced July
                                                               2005
    Prime Portfolio                Multi-state    1,200,700    Properties
                                                               refinanced
    Prime Portfolio                Multi-state            -    All equity
                                                               returned to
                                                               investors
    450 W. 33rd St               New York City      517,000
    823 Park Avenue              New York City        5,169     Condo
                                                                conversion -
                                                                investment
                                                                held in
                                                                Taxable REIT
                                                                Subsidiary
                                                                ("TRS")
    York Avenue                  New York City       32,000     Property
                                                                refinanced Dec
                                                                2005
    Toy Building                 New York City      343,400 (2) Condo
                                                                conversion -
                                                                investment
                                                                held in
                                                                Taxable REIT
                                                                Subsidiary
                                                                ("TRS")
    Homewood Mtn Resort           Homewood, CA      114,157     Profits
                                                                interest held
                                                                in TRS
    Richland Terrace
     Apartments                   Columbia, SC        9,094
    Ashley Court
     Apartments                 Fort Wayne, IN        5,452
    Nottingham Village        Indianapolis, IN        6,626
    Extended Stay Hotel
     Portfolio                      Multistate    7,400,000     Preferred
                                                                return of 12%
                                                                on equity
    Alpine Meadows          Alpine Meadows, CA       30,500     Preferred
                                                                return of 18%
                                                                on equity
    St. John's
     Development              Jacksonville, FL       25,000
    Windrush Village
     Apartments                Tallahassee, FL       12,800
    (1) Represents approximately 29% of the 2% retained interest in the
        property. In addition, Arbor has approximately 29% of a 50% interest
        in the property's air rights.
    (2) Debt balance represents anticipated debt financing required to
        complete condominium conversion project.
    (3) Amount represents approximate acreage of property.
    (4) Amount represents approximately 684 properties in 44 states and Canada
        with approximately 76,000 rooms.
    (5) The Company has agreed to transfer its 16.67% interest for preferred
        and common operating partnership units of another REIT, which is
        expected to occur on or prior to June 26, 2009. The Company currently
        has $33 million in debt related to this transaction that is
        collateralized by the Company's 16.67% interest in Prime.





SOURCE  Arbor Realty Trust, Inc. 
CONTACT:
Paul Elenio, Chief Financial Officer of Arbor Realty Trust, Inc., +1-516-506-4422, pelenio@arbor.com; or Investors, Stephanie Carrington of The Ruth Group, 
+1-646-536-7017, scarrington@theruthgroup.com; or Media, Bonnie Habyan, SVP of 
Marketing, +1-516-506-4615, bhabyan@arbor.com
-0- Aug/08/2008 12:30 GMT
 
 
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