Arbor Realty Trust Reports Third Quarter 2013 Results and Declares Common Stock Dividend

Arbor Realty Trust Reports Third Quarter 2013 Results and Declares Common
Stock Dividend

Third Quarter Highlights:

  - Declares a common dividend of $0.13 per share
  - FFO of $5.6 million, or $0.13 per diluted common share^1
  - Net income attributable to common stockholders of $3.7 million, or $0.08
  per diluted common share
  - Raised $40.9 million of capital in a common stock offering
  - Originated 17 new loans totaling $147.9 million
  - Adjusted book value per common share of $9.26, GAAP book value per common
  share of $7.51^1
  - Generated gains of $1.2 million from the retirement of CDO debt
  - Recorded $1.5 million in loan loss reserves
  - Recorded $0.7 million in cash recoveries of previously recorded reserves

UNIONDALE, N.Y., Nov. 8, 2013 (GLOBE NEWSWIRE) -- 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 third quarter ended
September 30, 2013. Arbor reported net income attributable to common
stockholders for the quarter of $3.7 million, or $0.08 per diluted common
share, compared to $2.1 million, or $0.07 per diluted common share for the
quarter ended September 30, 2012. Net income attributable to common
stockholders for the nine months ended September 30, 2013 was $13.3 million,
or $0.33 per diluted common share, compared to $21.8 million, or $0.84 per
diluted common share for the nine months ended September 30, 2012. Funds from
operations ("FFO") for the quarter ended September 30, 2013 was $5.6 million,
or $0.13 per diluted common share, compared to $3.7 million, or $0.13 per
diluted common share for the quarter ended September 30, 2012. ^ FFO for the
nine months ended September 30, 2013 was $18.7 million, or $0.46 per diluted
common share, compared to $22.7 million, or $0.87 per diluted common share for
the nine months ended September 30, 2012.^1

Portfolio Activity

The Company's loan and investment portfolio, excluding loan loss reserves, at
September 30, 2013 remained relatively unchanged compared to June 30, 2013 at
approximately $1.8 billion. The average balance of the Company's loan and
investment portfolio during the third quarter of 2013, excluding loan loss
reserves, was $1.8 billion and the average yield on these assets for the
quarter was 5.62%, compared to $1.8 billion and 5.47% for the second quarter
of 2013.

During the third quarter of 2013, Arbor originated 13 bridge loans totaling
approximately $125.1 million, three preferred equity investments totaling
$19.8 million and one mezzanine loan for $3.0 million. In addition, 15 loans
paid off with an unpaid principal balance of $110.3 million during the
quarter, of which $4.3 million was charged off against loan loss reserves
related to two of these loans. Furthermore, two loans had paydowns totaling
$25.9 million.

During the third quarter of 2013, two loans scheduled to repay during the
quarter totaling $21.0 million were modified and extended. Additionally, eight
loans totaling approximately $119.3 million were extended during the quarter.

During the third quarter of 2013, the residential mortgage-backed securities
portfolio had total paydowns of approximately $14.6 million of which $8.9
million were from residential mortgage-backed securities accounted for as
derivatives. In addition, five residential mortgage-backed securities with an
aggregate carrying value of $8.7 million were sold for approximately $8.7
million during the quarter. These five residential mortgage-backed securities
were accounted for as derivatives net of financings of $8.0 million in other
assets on the Consolidated Balance Sheets.

At September 30, 2013, the loan and investment portfolio's unpaid principal
balance, excluding loan loss reserves, was approximately $1.8 billion, with a
weighted average current interest pay rate of 5.19%. Including certain fees
earned and costs associated with the loan and investment portfolio, the
weighted average current interest rate was 5.59% at September 30, 2013. At the
same date, advances on financing facilities pertaining to the loan and
investment portfolio totaled approximately $1.3 billion, with a weighted
average interest rate of 3.14%.

As of September 30, 2013, Arbor's loan portfolio consisted of 30% fixed-rate
and 70% variable-rate loans.

During the third quarter of 2013, the Company recorded a $1.5 million loan
loss reserve related to one loan with a carrying value of approximately $3.4
million, after loan loss reserves. The Company recorded $0.7 million of net
recoveries of previously recorded loan loss reserves related to four of the
Company's assets during the third quarter of 2013. These recoveries were
recorded in provision for loan losses on the Consolidated Statement of
Operations. In addition, the Company charged off $4.3 million of previously
recorded loan loss reserves related to two loans during the quarter. At
September 30, 2013, the Company's total loan loss reserves were approximately
$143.0 million relating to 18 loans with an aggregate carrying value before
loan loss reserves of approximately $239.3 million. The Company recognizes
income on impaired loans on a cash basis to the extent it is received.

The Company had five non-performing loans with a carrying value of
approximately $16.1 million, net of related loan loss reserves of $28.6
million as of September 30, 2013. Income recognition on non-performing loans
has been suspended and will resume if and when the loans become contractually
current and performance has recommenced.

Financing Activity

The balance of debt that finances the Company's loan and investment portfolio
at September 30, 2013 remained relatively unchanged compared to June 30, 2013
at approximately $1.3 billion. The average balance of debt that finances the
Company's loan and investment portfolio for the third quarter of 2013 was
approximately $1.4 billion, as compared to approximately $1.3 billion for the
second quarter of 2013. The average cost of borrowings for the third quarter
was 3.10%, compared to 3.15% for the second quarter of 2013.

The Company is subject to various financial covenants and restrictions under
the terms of the Company's CDO/CLO vehicles, credit facilities, and repurchase
agreements. The Company believes that it was in compliance with all financial
covenants and restrictions as of September 30, 2013.

The Company's CDO/CLO vehicles contain interest coverage and asset over
collateralization covenants that must be met as of the waterfall distribution
date in order for the Company to receive such payments. If the Company fails
these covenants in any of its CDOs or CLOs, all cash flows from the applicable
vehicle would be diverted to repay principal and interest on the outstanding
bonds and the Company would not receive any residual payments until that
vehicle regained compliance with such covenants. As of the most recent
determination dates in October 2013, the Company was in compliance with all
CDO/CLO covenants. In the event of a breach of the covenants that could not be
cured in the near-term, the Company would be required to fund its non CDO/CLO
expenses, including management fees and employee costs, distributions required
to maintain REIT status, debt costs, and other expenses with (i) cash on hand,
(ii) income from any CDO/CLO not in breach of a covenant test, (iii) income
from real property and loan assets, (iv) sale of assets, (v) or accessing the
equity or debt capital markets, if available.

The chart below is a summary of the Company's CDO/CLO compliance tests as of
the most recent determination dates in October 2013:

Cash Flow Triggers       CDO I ^(3)   CDO II ^   CDO III   CLO I     CLO II
                                      (3)        ^(3)
                                                                
Overcollateralization                                            
^(1)
                                                                
Current                  166.88%      133.77%    106.64%   142.96%   146.89%
                                                                
Limit                    145.00%      127.30%    105.60%   137.86%   144.25%
                                                                
Pass / Fail              Pass         Pass       Pass      Pass      Pass
                                                                
                                                                
Interest Coverage ^(2)                                           
                                                                
Current                  501.11%      473.84%    566.70%   224.40%   287.19%
                                                                
Limit                    160.00%      147.30%    105.60%   120.00%   120.00%
                                                                
Pass / Fail              Pass         Pass       Pass      Pass      Pass
                                                                
                                                                
(1) The overcollateralization ratio divides the total principal balance of all
collateral in the CDO/CLO by the total principal balance of the bonds
associated with the applicable ratio.To the extent an asset is considered a
defaulted security, the asset's principal balance for purposes of the
overcollateralization test is the lesser of the asset's market value or the
principal balance of the defaulted asset multiplied by the asset's recovery
rate which is determined by the rating agencies.
                                                                
(2) The interest coverageratio divides interest income by interest expense
for the classes senior to those retained bythe Company.
                                                                
(3) CDO I, CDO II, and CDO III have reached the end of their replenishment
periods. As such, investor capital is repaid quarterly from proceeds received
from loan repayments held as collateral in accordance with the terms of the
respective CDO.

Equity Offering

In September 2013, Arbor issued 6.0 million shares of common stock in a public
offering receiving net proceeds of approximately $40.9 million. The Company
intends to use the net proceeds from the offering to make investments, to
repurchase or pay liabilities and for general corporate purposes.

Common Dividend

The Company announced today that its Board of Directors has declared a
quarterly cash dividend of $0.13 per share of common stock for the third
quarter ended September 30, 2013. The dividend is payable on December 2, 2013
to common shareholders of record on November 20, 2013. The ex-dividend date is
November 18, 2013.

Preferred Dividends

As previously announced, the Board of Directors declared a cash dividend of
$0.515625 per share of 8.25% Series A cumulative redeemable preferred stock
reflecting accrued dividends through November 30, 2013. The dividend is
payable on December 2, 2013 to preferred shareholders of record on November
15, 2013.

As previously announced, the Board of Directors also declared a cash dividend
of $0.484375 per share of 7.75% Series B cumulative redeemable preferred stock
reflecting accrued dividends through November 30, 2013. The dividend is
payable on December 2, 2013 to preferred shareholders of record on November
15, 2013.

Earnings Conference Call

Management will host a conference call today at 10:00 a.m. ET. A live webcast
of the conference call will be available online at
http://www.arborrealtytrust.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 (877)
415-3184 for domestic callers and (857) 244-7327 for international callers.
Please use participant passcode 15903527.

After the live webcast, the call will remain available on the Company's
Website, www.arborrealtytrust.com, through December 8, 2013. In addition, a
telephonic replay of the call will be available until November 15, 2013. The
replay dial-in number is (888) 286-8010 for domestic callers and (617)
801-6888 for international callers. Please use passcode 60256320.

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 14 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, 2012 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.

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 each non-GAAP financial measure and the comparable
GAAP financial measure can be found on page 9 and 10 of this release.

1. See attached supplemental schedule of non-GAAP financial measures.

ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
                                                 
CONSOLIDATED STATEMENTS OF OPERATIONS
                                                 
                                                 
                      Quarter Ended               Nine Months Ended
                      September 30,               September 30,
                      2013          2012          2013          2012
                      (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
                                                             
Interest income       $25,742,973 $20,030,595 $73,060,911 $59,139,715
Interest expense      10,645,725   9,510,083    31,621,042   31,042,290
Net interest income   15,097,248   10,520,512   41,439,869   28,097,425
                                                             
Other revenue:                                               
Property operating     6,939,947    7,142,993    22,920,902   22,985,629
income
Other (loss) income,   (251,424)    334,415      1,733,351    736,054
net
Total other revenue   6,688,523    7,477,408    24,654,253   23,721,683
                                                             
Other expenses:                                              
Employee compensation  2,995,322    2,301,442    9,047,639    7,168,037
and benefits
Selling and            3,300,071    1,870,759    8,459,087    5,722,761
administrative
Property operating     6,134,739    6,490,903    19,108,578   19,974,259
expenses
Depreciation and       1,720,014    1,427,521    4,899,330    3,866,239
amortization
Provision for loan
losses (net of         750,231      4,849,330    4,072,108    20,584,191
recoveries)
Management fee -       2,800,000    2,500,000    8,400,000    7,500,000
related party
Total other expenses  17,700,377   19,439,955   53,986,742   64,815,487
                                                             
Income (loss) from
continuing operations
before gain on
extinguishment of      4,085,394    (1,442,035)  12,107,380   (12,996,379)
debt, loss from equity
affiliatesand
(provision) benefit
for income taxes
Gain on extinguishment 1,167,772    4,144,688    4,930,772    30,459,023
of debt
Loss from equity       (81,723)     (225,493)    (245,412)    (700,203)
affiliates
                                                             
Income before
(provision) benefit    5,171,443    2,477,160    16,792,740   16,762,441
for income taxes
                                                             
(Provision) benefit    --           (275,000)    --           526,558
for income taxes
                                                             
Income from continuing 5,171,443    2,202,160    16,792,740   17,288,999
operations
                                                             
Gain on sale of real   --           --           --           3,487,145
estate held-for-sale
(Loss) income from
operations of real     (79,716)     (87,855)     (271,479)    1,153,581
estate held-for-sale
(Loss) income from
discontinued           (79,716)     (87,855)     (271,479)    4,640,726
operations
                                                             
Net income            5,091,727    2,114,305    16,521,261   21,929,725
                                                             
Preferred stock        1,410,333    --           3,096,278    --
dividends
Net income
attributable to        16,715       53,976       124,199      161,598
noncontrolling
interest
                                                             
Net income
attributable to Arbor
Realty Trust,          $3,664,679  $2,060,329  $13,300,784 $21,768,127
Inc.common
stockholders
                                                             
Basic earnings per                                            
common share:
Income from continuing
operations, net of
noncontrolling         $0.08       $0.07       $0.34       $0.67
interest and preferred
stock dividends
(Loss) income from
discontinued           --          --          (0.01)       0.18
operations
Net income
attributable to Arbor  $0.08       $0.07       $0.33       $0.85
Realty Trust, Inc.
common stockholders
                                                             
Diluted earnings per                                          
common share:
Income from continuing
operations, net of
noncontrolling         $0.08       $0.07       $0.34       $0.66
interest and preferred
stock dividends
(Loss) income from
discontinued           --          --          (0.01)       0.18
operations
Net income
attributable to Arbor
Realty Trust,          $0.08       $0.07       $0.33       $0.84
Inc.common
stockholders
                                                             
Dividends declared per $0.13       $0.10       $0.37       $0.175
common share
                                                             
Weighted average
number of sharesof                                           
common stock
outstanding:
                                                             
Basic                 43,397,555   27,749,225   40,129,718   25,643,470
                                                             
Diluted               43,832,271   28,038,044   40,576,633   25,891,083


ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
                                                            
CONSOLIDATED BALANCE SHEETS
                                                            
                                            September 30,    December 31,
                                            2013             2012
                                            (Unaudited)      
Assets:                                                      
Cash and cash equivalents                    $64,658,561    $29,188,889
Restricted cash (includes $111,640,664 and
$41,537,212 from consolidated VIEs,          113,002,790     42,535,514
respectively)
Loans and investments, net (includes
$1,238,973,709 and $1,113,745,356 from       1,546,107,405   1,325,667,053
consolidated VIEs, respectively)
Available-for-sale securities, at fair value
(includes $0 and $1,100,000 from             2,746,682       3,552,736
consolidated VIEs, respectively)
Securities held-to-maturity, net             41,989,100      42,986,980
Investment in equity affiliates              5,690,169       59,581,242
Real estate owned, net (includes $80,787,215
and $80,787,215 from consolidated VIEs,      112,417,656     124,148,199
respectively)
Real estate held-for-sale, net               11,540,649      --
Due from related party(includes $11,970 and 53,329          24,094
$0 from consolidated VIEs, respectively)
Prepaid management fee - related party       19,047,949      19,047,949
Other assets (includes $14,329,327 and
$11,709,103 from consolidated VIEs,          59,305,715      55,148,624
respectively)
Total assets                                 $1,976,560,005 $1,701,881,280
                                                            
Liabilities and Equity:                                      
Repurchase agreements and credit facilities  $158,582,338   $130,661,619
Collateralized debt obligations (includes
$736,434,556 and $812,452,845 from           736,434,556     812,452,845
consolidated VIEs, respectively)
Collateralized loan obligations (includes
$264,500,000 and $87,500,000 from            264,500,000     87,500,000
consolidated VIEs, respectively)
Junior subordinated notes to subsidiary      159,157,643     158,767,145
trust issuing preferred securities
Notes payable                                1,750,000       51,457,708
Mortgage notes payable – real estate owned   42,745,650      53,751,004
Mortgage note payable– real estate          11,005,354       --
held-for-sale
Due to related party                         3,349,516       3,084,627
Due to borrowers (includes $0 and $1,320,943 19,561,570      23,056,640
from consolidated VIEs, respectively)
Deferred revenue                             77,123,133      77,123,133
Other liabilities (includes $16,302,638 and
$22,013,896 from consolidated VIEs,          64,598,525      72,765,437
respectively)
Total liabilities                            1,538,808,285   1,470,620,158
                                                            
Commitments and contingencies                --              --
                                                            
Equity:                                                      
Arbor Realty Trust, Inc. stockholders'                       
equity:
Preferred stock, $0.01 par value:
100,000,000 shares authorized; 8.25% Series
A cumulative redeemable preferred stock,
$38,787,500 aggregate liquidation
preference; 1,551,500 issued and outstanding
at September 30, 2013, no shares issued and  67,654,655      --
outstanding at December 31, 2012; 7.75%
Series B cumulative redeemable preferred
stock, $31,500,000 aggregate liquidation
preference; 1,260,000 issued and outstanding
at September 30, 2013, no shares issued and
outstanding at December 31, 2012
Common stock, $0.01 par value: 500,000,000
shares authorized; 51,787,075 shares issued,
49,136,308 shares outstanding at September   517,870         339,000
30, 2013 and 33,899,992 shares issued,
31,249,225 shares outstanding at December
31, 2012
Additional paid-in capital                   623,825,310     493,211,222
Treasury stock, at cost - 2,650,767 shares   (17,100,916)    (17,100,916)
at September 30, 2013 and December 31, 2012
Accumulated deficit                          (209,207,115)   (207,558,257)
Accumulated other comprehensive loss         (28,902,162)    (39,561,700)
Total Arbor Realty Trust, Inc. stockholders' 436,787,642     229,329,349
equity
Noncontrolling interest in consolidated      964,078         1,931,773
entity
Total equity                                 437,751,720     231,261,122
Total liabilities and equity                 $1,976,560,005 $1,701,881,280


ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
                                                               
SUPPLEMENTAL SCHEDULE OF NON-GAAP FINANCIAL MEASURES
(Unaudited)
                                                               
                                                               September 30,
                                                               2013
                                                               
                                                               
GAAP Arbor Realty Trust, Inc. Stockholders' Equity             $436,787,642
Subtract: 8.25% Series A and 7.75% Series B cumulative          (67,654,655)
redeemable preferred stock
                                                               
GAAP Arbor Realty Trust, Inc. Common Stockholders' Equity      $369,132,987
                                                               
                                                               
Add: 450 West 33rd Street transaction - deferred revenue       77,123,133
Unrealized loss on derivative instruments                      27,776,770
                                                               
Subtract: 450 West 33rd Street transaction - prepaid management (19,047,949)
fee
                                                               
Adjusted Arbor Realty Trust, Inc. Common Stockholders' Equity  $454,984,941
                                                               
                                                               
Adjusted book value per common share                           $9.26
                                                               
GAAP book value per common share                               $7.51
                                                               
Common shares outstanding                                      49,136,308
                                                               
                                                               
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
measures prepared in accordance with GAAP.
                                                               
GAAP book value per share and adjusted book value per share
calculations do not take into account any dilution from the     
potential exercise of the warrants issued to Wachovia as part
of the 2009 debt restructuring.

                                                             
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
                                                             
SUPPLEMENTAL SCHEDULE OF NON-GAAP FINANCIAL MEASURES - Continued
(Unaudited)
                                                             
                       Quarter Ended              Nine Months Ended
                       September 30,              September 30,
                       2013          2012         2013          2012
                                                             
                                                             
Net income attributable
to Arbor Realty Trust,
Inc. common             $3,664,679  $2,060,329 $13,300,784 $21,768,127
stockholders, GAAP
basis
                                                             
Subtract:                                                     
Gain on sale of real    --           --          --           (3,487,145)
estate-held-for-sale
Add:                                                          
Depreciation - real
estate owned and        1,868,670    1,574,512   5,328,396    4,291,484
held-for-sale (1)
Depreciation -
investment in equity    22,599       26,936      67,797       80,807
affiliate
                                                             
Funds from operations   $5,555,948  $3,661,777 $18,696,977 $22,653,273
("FFO")
                                                             
Diluted FFO per common  $0.13       $0.13      $0.46       $0.87
share
                                                             
Diluted weighted
average shares          43,832,271   28,038,044  40,576,633   25,891,083
outstanding
                                                             
                                                             
(1) Includes                                                  
discontinued operations
                                                             
                                                             
Arbor is presenting funds from operations, or FFO, because management believes
it to be an important supplemental measure of the Company's operating
performance in that it is frequently used by analysts, investors and other
parties in the evaluation of real estate investment trusts (REITs).The
revised White Paper on FFO approved by the Board of Governors of the National
Association of Real Estate Investment Trusts, or NAREIT, in April 2002 defines
FFO as net income (loss) attributable tocommon stockholders(computed in
accordance with generally accepted accounting principles (GAAP)), excluding
gains (losses) from sales of depreciated real properties, plus impairments of
depreciated real properties and real estate related depreciation and
amortization, and after adjustments for unconsolidated partnerships and joint
ventures. The Company considers gains and losses on the sales of undepreciated
real estate investments to be a normal part of its recurring operating
activities in accordance with GAAP and should not be excluded when calculating
FFO. Losses from discontinued operations are not excluded when calculating
FFO.

FFO is not intended to be an indication of our cash flow from operating
activities (determined in accordance with GAAP) or a measure of our liquidity,
nor is it entirely indicative of funding our cash needs, including our ability
to make cash distributions.Arbor's calculation of FFO may be different from
the calculation used by other companies and, therefore, comparability may be
limited.

CONTACT: Arbor Realty Trust, Inc.
         Paul Elenio, Chief Financial Officer
         516-506-4422
         pelenio@arbor.com
        
         Investors:
         Stephanie Carrington
         The Ruth Group
         646-536-7017
         scarrington@theruthgroup.com
        
         Media:
         Bonnie Habyan, EVP of Marketing
         516-506-4615
         bhabyan@arbor.com
 
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