Arbor Realty Trust Reports Fourth Quarter and Full Year 2013 Results and Declares Common Stock Dividend

Arbor Realty Trust Reports Fourth Quarter and Full Year 2013 Results and
Declares Common Stock Dividend

Fourth Quarter Highlights:

  *Declares a common dividend of $0.13 per share
  *FFO of $6.3 million, or $0.13 per diluted common share^1
  *Net income attributable to common stockholders of $3.4 million, or $0.07
    per diluted common share
  *Originated 19 new loans totaling $163.5 million
  *Adjusted book value per common share of $9.22, GAAP book value per common
    share of $7.53^1
  *Obtained an additional $33 million of warehouse financing
  *Recorded $2.0 million in loan loss reserves and impairments
  *Recorded $0.8 million in cash recoveries of previously recorded reserves

Full Year Highlights:

  *Declared common dividends of $0.51 per share relating to the full year
    2013
  *FFO of $25.0 million, or $0.58 per diluted common share^1
  *Net income attributable to common stockholders of $16.7 million, or $0.39
    per diluted common share
  *Raised $197.0 million of capital through three common stock offerings and
    two preferred stock offerings
  *Originated 67 new loans totaling $591.5 million
  *Closed a second collateralized loan obligation totaling $260 million
  *Improved funding sources by closing three new warehouse facilities
    totaling $123 million and increasing the capacity of existing facilities
    by $30 million, with reduced pricing on these existing facilities
  *Generated gains of $4.9 million from the retirement of CDO debt
  *Recorded $7.5 million in loan loss reserves and impairments
  *Recorded $2.2 million in cash recoveries of previously recorded reserves

UNIONDALE, N.Y., Feb. 14, 2014 (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 fourth quarter and
year ended December 31, 2013. Arbor reported net income attributable to common
stockholders for the quarter of $3.4 million, or $0.07 per diluted common
share, compared to a net loss attributable to common stockholders of $0.3
million, or $0.01 per diluted common share for the quarter ended December 31,
2012. Net income attributable to common stockholders for the year ended
December 31, 2013 was $16.7 million, or $0.39 per diluted common share,
compared to $21.5 million, or $0.79 per diluted common share for the year
ended December 31, 2012. Funds from operations ("FFO") for the quarter ended
December 31, 2013 was $6.3 million, or $0.13 per diluted common share,
compared to $0.9 million, or $0.03 per diluted common share for the quarter
ended December 31, 2012. ^ FFO for the year ended December 31, 2013 was $25.0
million, or $0.58 per diluted common share, compared to $23.5 million, or
$0.87 per diluted common share for the year ended December 31, 2012.^1

Portfolio Activity

Loan and investment portfolio activity during the fourth quarter of 2013
consisted of:

  oOriginated 19 new loans totaling $163.5 million, of which 14 new bridge
    loans comprised $149.6 million.
  oPayoffs and pay downs on 22 loans totaling $179.9 million, of which $2.0
    million was charged off against loan loss reserves related to one loan.
  oModified and/or extended seven loans totaling $44.3 million.

At December 31, 2013, the loan and investment portfolio's unpaid principal
balance, excluding loan loss reserves, was approximately $1.7 billion, with a
weighted average current interest pay rate of 5.21%. Including certain fees
earned and costs associated with the loan and investment portfolio, the
weighted average current interest rate was 5.69% at December 31, 2013.

As of December 31, 2013, Arbor's loan portfolio consisted of 30% fixed-rate
and 70% variable-rate loans.

The average balance of the Company's loan and investment portfolio during the
fourth quarter of 2013, excluding loan loss reserves, was $1.8 billion and the
average yield on these assets for the quarter was 5.86%, compared to $1.8
billion and 5.62% for the third quarter of 2013.

During the fourth quarter of 2013, the Company recorded a $1.0 million loan
loss reserve related to a loan with a carrying value of approximately $1.0
million, after loan loss reserves. The Company also recorded $0.8 million of
net recoveries of previously recorded loan loss reserves related to four of
the Company's assets. In addition, the Company charged off $2.0 million of a
previously recorded loan loss reserve related to one loan during the quarter.
At December 31, 2013, the Company's total loan loss reserves were
approximately $122.3 million relating to 15 loans with an aggregate carrying
value before loan loss reserves of approximately $207.5 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 $10.7 million, net of related loan loss reserves of $39.6
million as of December 31, 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.

During the fourth quarter of 2013, the Company recorded an impairment loss of
$1.0 million on a real estate owned asset with a carrying value before
impairment of approximately $4.4 million.

During the fourth quarter of 2013, the Company sold several residential
mortgage-backed securities ("RMBS") with an aggregate carrying value of $51.9
million for $52.4 million. The RMBS were accounted for as derivatives net of
financings totaling $44.4 million. In addition, RMBS pay downs during the
fourth quarter totaled $13.9 million, of which $5.6 million related to RMBS
accounted for as derivatives.

During the first quarter of 2014, the Company sold the majority of its RMBS
with an aggregate carrying value of $81.2 million for approximately $81.9
million, of which $48.5 million related to RMBS accounted for as derivatives.

Financing Activity

The balance of debt that finances the Company's loan and investment portfolio
at December 31, 2013 was approximately $1.2 billion with a weighted average
interest rate of 3.34%, as compared to approximately $1.3 billion and a rate
of 3.14% at September 30, 2013. The average balance of debt that finances the
Company's loan and investment portfolio for the fourth quarter of 2013 was
approximately $1.3 billion, as compared to approximately $1.4 billion for the
third quarter of 2013. The average cost of borrowings for the fourth quarter
was 3.28%, compared to 3.10% for the third quarter of 2013.

In December 2013, the Company closed a $33.0 million warehouse facility with a
financial institution to finance a first mortgage loan on a multifamily
property. The facility has an interest rate of 225 basis points over LIBOR
which increases to 250 basis points over LIBOR in February 2014, requires a
total commitment fee of 45 basis points and contains certain financial
covenants and restrictions. The facility has a two year term maturing in
November 2015, with a one year extension option to 2016. At December 31, 2013,
the outstanding balance of this facility was $33.0 million.

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 December 31, 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 January 2014, 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, or (v) 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 January 2014:

Cash Flow Triggers       CDO I ^(3)   CDO II ^   CDO III   CLO I     CLO II
                                      (3)        ^(3)
                                                                
Overcollateralization                                            
^(1)
                                                                
Current                  167.15%     137.87%    107.80%   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                  547.23%      430.96%    779.18%   289.34%   325.74%
                                                                
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.


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 fourth
quarter ended December 31, 2013. The dividend is payable on February 28, 2014
to common shareholders of record on February 25, 2014. The ex-dividend date is
February 21, 2014.

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 February 28, 2014. The dividend is
payable on February 28, 2014 to preferred shareholders of record on February
15, 2014.

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 February 28, 2014. The dividend is
payable on February 28, 2014 to preferred shareholders of record on February
15, 2014.

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 March 14, 2014. In addition, a
telephonic replay of the call will be available until February 21, 2014. 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, 2013 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 10 and 11 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               Year Ended
                      December 31,                December 31,
                      2013          2012          2013          2012
                      (Unaudited)   (Unaudited)                
                                                             
Interest income       $25,970,712 $20,859,047 $99,031,623 $79,998,762
Interest expense      10,444,109   9,824,542    42,065,151   40,866,832
Net interest income   15,526,603   11,034,505   56,966,472   39,131,930
                                                             
Other revenue:                                               
Property operating     4,908,456    5,036,017    27,829,358   28,021,646
income
Other income, net     557,363      544,235      2,290,714    1,280,289
Total other revenue   5,465,819    5,580,252    30,120,072   29,301,935
                                                             
Other expenses:                                              
Employee compensation  2,994,693    3,005,535    12,042,332   10,173,572
and benefits
Selling and            2,144,160    2,160,153    10,603,247   7,882,914
administrative
Property operating     5,459,791    5,984,327    24,568,369   25,958,586
expenses
Depreciation and       1,769,051    1,461,254    6,668,381    5,327,493
amortization
Impairment loss on     1,000,000    --           1,000,000    --
real estate owned
Provision for loan
losses (net of         215,544      2,362,205    4,287,652    22,946,396
recoveries)
Management fee -       2,500,000    2,500,000    10,900,000   10,000,000
related party
Total other expenses  16,083,239   17,473,474   70,069,981   82,288,961
                                                             
Income (loss) from
continuing operations
before gain
onextinguishment of   4,909,183    (858,717)    17,016,563   (13,855,096)
debt, income (loss)
from equity
affiliatesand benefit
from income taxes
Gain on extinguishment --           --           4,930,772    30,459,023
of debt
Income (loss) from     40,937       2,347        (204,475)    (697,856)
equity affiliates
                                                             
Income before benefit  4,950,120    (856,370)    21,742,860   15,906,071
from income taxes
                                                             
Benefit from income    --           275,000      --           801,558
taxes
                                                             
Income (loss) from     4,950,120    (581,370)    21,742,860   16,707,629
continuing operations
                                                             
Gain on sale of real   --           466,310      --           3,953,455
estate held-for-sale
(Loss) income from
operations of real     (172,644)    (98,210)     (444,123)    1,055,371
estate held-for-sale
(Loss) income from
discontinued           (172,644)    368,100      (444,123)    5,008,826
operations
                                                             
Net income (loss)     4,777,476    (213,270)    21,298,737   21,716,455
                                                             
Preferred stock        1,410,305    --           4,506,583    --
dividends
Net income
attributable to        --           53,969       124,199      215,567
noncontrolling
interest
                                                             
Net income (loss)
attributable to Arbor
Realty Trust,          $3,367,171  $(267,239)  $16,667,955 $21,500,888
Inc.common
stockholders
                                                             
Basic earnings (loss)                                         
per common share:
Income (loss) from
continuing operations,
net ofnoncontrolling  $0.07       $(0.02)     $0.40       $0.61
interest and preferred
stock dividends
Income (loss) from
discontinued           --          0.01         (0.01)       0.19
operations
Net income (loss)
attributable to Arbor  $0.07       $(0.01)     $0.39       $0.80
Realty Trust, Inc.
common stockholders
                                                             
Diluted earnings
(loss) per common                                             
share:
Income (loss) from
continuing operations,
net ofnoncontrolling  $0.07       $(0.02)     $0.40       $0.61
interest and preferred
stock dividends
Income (loss) from
discontinued           --          0.01         (0.01)       0.18
operations
Net income (loss)
attributable to Arbor
Realty Trust,          $0.07       $(0.01)     $0.39       $0.79
Inc.common
stockholders
                                                             
Dividends declared per $0.13       $0.11       $0.50       $0.285
common share
                                                             
Weighted average
number of shares of                                           
common stock
outstanding:
                                                             
Basic                 49,136,308   30,868,790   42,399,872   26,956,938
                                                             
Diluted               49,537,029   30,868,790   42,835,144   27,211,287



ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
                                                            
CONSOLIDATED BALANCE SHEETS
                                                            
                                            December 31,     December 31,
                                            2013             2012
                                                            
Assets:                                                      
Cash and cash equivalents                    $60,389,552    $29,188,889
Restricted cash                             54,962,316      42,535,514
Loans and investments, net                   1,523,699,653   1,325,667,053
Available-for-sale securities, at fair value 37,315,652      3,552,736
Securities held-to-maturity, net             --              42,986,980
Investments in equity affiliates             4,680,306       59,581,242
Real estate owned, net                       111,718,177     124,148,199
Real estate held-for-sale, net               11,477,676      --
Due from related party                       98,058          24,094
Prepaid management fee - related party       19,047,949      19,047,949
Other assets                                 54,083,143      55,148,624
Total assets                                 $1,877,472,482 $1,701,881,280
                                                            
Liabilities and Equity:                                      
Repurchase agreements and credit facilities  $159,125,023   $130,661,619
Collateralized debt obligations              639,622,981     812,452,845
Collateralized loan obligations              264,500,000     87,500,000
Junior subordinated notes to subsidiary      159,291,427     158,767,145
trust issuing preferred securities
Notes payable                                2,500,000       51,457,708
Mortgage note 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                         2,794,087       3,084,627
Due to borrowers                             20,326,030      23,056,640
Deferred revenue                             77,123,133      77,123,133
Other liabilities                            60,842,515      72,765,437
Total liabilities                            1,439,876,200   1,470,620,158
                                                            
Equity:                                                      
Arbor Realty Trust, Inc. stockholders'                       
equity:
Preferred stock, $0.01 par value:
100,000,000 shares authorized; 8.25% Series
Acumulative redeemable preferred stock,
$38,787,500 aggregate
liquidationpreference; 1,551,500 issued and
outstanding at December 31, 2013, no
sharesissued and outstanding at December    67,654,655      --
31, 2012; 7.75% Series B
cumulativeredeemable preferred stock,
$31,500,000 aggregate liquidation
preference;1,260,000 issued and outstanding
at December 31, 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 December    517,870         339,000
31, 2013 and33,899,992 shares issued,
31,249,225 shares outstanding at December
31, 2012
Additional paid-in capital                   623,993,245     493,211,222
Treasury stock, at cost - 2,650,767 shares   (17,100,916)    (17,100,916)
at December 31, 2013 and December 31, 2012
Accumulated deficit                          (212,231,319)   (207,558,257)
Accumulated other comprehensive loss         (25,237,253)    (39,561,700)
Total Arbor Realty Trust, Inc. stockholders' 437,596,282     229,329,349
equity
Noncontrolling interest in consolidated      --              1,931,773
entity
Total equity                                 437,596,282     231,261,122
Total liabilities and equity                 $1,877,472,482 $1,701,881,280



ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
                                                    
Supplemental Schedule of Non-GAAP Financial Measures -
Adjusted and GAAP Book Value per Share
(Unaudited)
                                                    
                                                    December 31,
                                                     2013

                                                    
                                                    
GAAP Arbor Realty Trust, Inc. Stockholders' Equity  $437,596,282
Subtract: 8.25% Series A and 7.75% Series            (67,654,655)
Bcumulative redeemable preferred stock
                                                    
GAAP Arbor Realty Trust, Inc. Common Stockholders'   $369,941,627
Equity
                                                    
                                                    
Add: 450 West 33rd Street transaction - deferred     77,123,133
revenue
Unrealized loss on derivative instruments           24,794,051
                                                    
Subtract: 450 West 33rd Street transaction - prepaid (19,047,949)
management fee
                                                    
Adjusted Arbor Realty Trust, Inc. Common             $452,810,862
Stockholders' Equity
                                                    
                                                    
Adjusted book value per common share                $9.22
                                                    
GAAP book value per common share                    $7.53
                                                    
Common shares outstanding                           49,136,308
                                                    
Given the magnitude and the deferral structure of the 450 West 33rd Street
transaction combined with the significance of the unrealized gain and/or loss
position of our qualifying 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 removal of the temporary nature of
unrealized gains or losses as a component of equity from qualifying interest
rate swaps on our financial position.Over time, as these qualifying interest
rate swaps reach their maturity, the fair value of these swaps will return to
their original par value.Management considers this non-GAAP financial measure
to be an effective indicator, for both management and investors, of Arbor's
financial condition. 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) -
Funds from Operations
(Unaudited)
                                                             
                       Quarter Ended              Year Ended
                       December 31,               December 31,
                       2013          2012         2013          2012
                                                             
                                                             
Net income (loss)
attributable to Arbor
Realty Trust, Inc.      $3,367,171  $(267,239) $16,667,955 $21,500,888
common stockholders,
GAAP basis
                                                             
Subtract:                                                     
Gain on sale of real    --          (466,310)   --          (3,953,455)
estate-held-for-sale
Add:                                                          
Impairment loss on real 1,000,000    --         1,000,000    --
estate owned
Depreciation - real
estate owned and        1,922,205    1,612,605   7,250,601    5,904,089
held-for-sale (1)
Depreciation -
investment in equity    22,599       9,589       90,396       90,396
affiliate
                                                             
Funds from operations   $6,311,975  $888,645   $25,008,952 $23,541,918
("FFO")
                                                             
Diluted FFO per common  $0.13       $0.03      $0.58       $0.87
share
                                                             
Diluted weighted
average shares          49,537,029   30,868,790  42,835,144   27,211,287
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 to common 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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