Arbor Realty Trust Reports Second Quarter 2014 Results and Declares Common and Preferred Stock Dividends

Arbor Realty Trust Reports Second Quarter 2014 Results and Declares Common and
Preferred Stock Dividends

Second Quarter Highlights:

  *FFO of $13.7 million, or $0.27 per diluted common share^1
  *Net income attributable to common stockholders of $11.5 million, or $0.23
    per diluted common share
  *Declares a cash dividend of $0.13 per share of common stock
  *Declares cash dividends of $0.515625 per share of Series A, $0.484375 per
    share of Series B and $0.53125 per share of Series C preferred stock
  *Adjusted book value per common share of $9.21, GAAP book value per common
    share of $7.67^1 
  *Closed a third collateralized loan obligation totaling $375 million
  *Issued $58.6 million of 7.375% senior unsecured notes
  *Recorded a $7.9 million gain from the sale of an equity investment
  *Recorded $4.8 million in cash recoveries of previously recorded reserves
  *Recorded $4.0 million in loan loss reserves

Recent Developments:

  *Recognized a $58.1 million gain in July related to the 450 West 33rd
    Street transaction resulting in proforma GAAP book value per common share
    of $8.82 as of June 30, 2014^1
  *Purchased 1.0 million outstanding warrants for $2.6 million in July

UNIONDALE, N.Y., Aug. 1, 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 second quarter ended
June 30, 2014. Arbor reported net income attributable to common stockholders
for the quarter of $11.5 million, or $0.23 per diluted common share, compared
to $3.0 million, or $0.07 per diluted common share for the quarter ended June
30, 2013. Net income attributable to common stockholders for the six months
ended June 30, 2014 was $17.3 million, or $0.35 per diluted common share,
compared to $9.6 million, or $0.25 per diluted common share for the six months
ended June 30, 2013. Funds from operations ("FFO") for the quarter ended June
30, 2014 was $13.7 million, or $0.27 per diluted common share, compared to
$4.8 million, or $0.11 per diluted common share for the quarter ended June 30,
2013. FFO for the six months ended June 30, 2014 was $21.7 million, or $0.43
per diluted common share, compared to $13.1 million, or $0.34 per diluted
common share for the six months ended June 30, 2013.^1

Portfolio Activity

Loan and investment portfolio activity during the second quarter of 2014
consisted of:

  oOriginated 21 new loans totaling $170.3 million, of which 16 were bridge
    loans for $154.0 million.
  oPayoffs and pay downs on 26 loans totaling $245.9 million.
  oExtended 10 loans totaling $109.6 million.

At June 30, 2014, the loan and investment portfolio's unpaid principal
balance, excluding loan loss reserves, was approximately $1.64 billion, with a
weighted average current interest pay rate of 5.25%. Including certain fees
earned and costs associated with the loan and investment portfolio, the
weighted average current interest pay rate was 5.93% at June 30, 2014.

As of June 30, 2014, 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
second quarter of 2014, excluding loan loss reserves, was $1.64 billion and
the average yield on these assets for the quarter was 6.22%, compared to $1.62
billion and 6.23% for the first quarter of 2014.

The Company recorded $4.0 million in loan loss reserves related to three loans
with a carrying value of $153.7 million before loan loss reserves. The Company
also recorded $4.8 million of net recoveries of previously recorded loan loss
reserves during the quarter. At June 30, 2014, the Company's total loan loss
reserves were $115.1 million relating to 14 loans with an aggregate carrying
value before loan loss reserves of $237.6 million.

The Company had two non-performing loans with a carrying value of $6.3
million, net of related loan loss reserves of $34.0 million as of June 30,
2014, as compared to four loans with a carrying value of $10.2 million, net of
related loan loss reserves of $39.6 million as of March 31, 2014.

Financing Activity

The balance of debt that finances the Company's loan and investment portfolio
at June 30, 2014 was approximately $1.22 billion with a weighted average
interest rate including fees of 3.75%, as compared to approximately $1.21
billion and a rate of 3.52% at March 31, 2014. The average balance of debt
that finances the Company's loan and investment portfolio for the second
quarter of 2014 was approximately $1.21 billion, as compared to approximately
$1.17 billion for the first quarter of 2014. The average cost of borrowings
for the second quarter was 3.73%, compared to 3.68% for the first quarter of
2014.

In April 2014, Arbor completed its third collateralized loan obligation
("CLO") totaling approximately $375.0 million of real estate related assets
and cash. An aggregate of $281.3 million of investment grade-rated debt was
issued, and Arbor retained an equity interest in the portfolio with a notional
amount of $93.8 million. The notes have an initial weighted average spread of
239 basis points over one-month LIBOR. Including fees and transaction costs,
the initial weighted average note rate was 3.07%. The facility has a two and a
half year replenishment period that allows the principal proceeds from
repayments of the collateral assets to be reinvested in qualifying replacement
assets, subject to certain conditions. The $375.0 million of collateral
includes $67.7 million of additional capacity to finance future loans for a
period of up to 120 days from the closing date of the CLO.

In May 2014, the Company issued $58.6 million aggregate principal amount of
7.375% senior unsecured notes in an underwritten public offering (NYSE:ABRN),
generating net proceeds of approximately $56.4 million after deducting the
underwriting discount and other offering expenses. The notes are due in 2021
and can be redeemed by the Company after May 15, 2017. Including certain fees
and costs, the weighted average note rate was 7.91% at June 30, 2014.

The Company amended a $50 million financing facility increasing the committed
amount to $75 million, extended the maturity for one year and reduced the
spread over LIBOR from 250 basis points to 225 basis points. Additionally, the
Company amended another financing facility increasing the committed amount
from $45 million to $60 million.

The Company repaid in full a $33 million warehouse credit facility as part of
the issuance of the Company's third CLO. In addition, the Company repaid in
full a $20 million unsecured revolving line of credit primarily from proceeds
received from the issuance of the Company's senior unsecured notes.

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'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. The
Company believes that it was in compliance with all financial covenants and
restrictions as of June 30, 2014 and as of the most recent determination dates
in July 2014.

The chart below is a summary of the Company's CDO/CLO compliance tests as of
the most recent determination dates in July 2014:

                                                              
Cash Flow Triggers         CDO I    CDO II  CDO III CLO I   CLO II  CLO III
                                                              
Overcollateralization ^(1)                                     
                                                              
Current                    171.01% 153.44% 109.20% 142.96% 146.89% 133.33%
                                                              
Limit                      145.00%  127.30% 105.60% 137.86% 144.25% 132.33%
                                                              
Pass / Fail                Pass     Pass    Pass    Pass    Pass    Pass
                                                              
                                                              
Interest Coverage ^(2)                                         
                                                              
Current                    553.88%  387.06% 498.96% 206.81% 279.82% 274.30%
                                                              
Limit                      160.00%  147.30% 105.60% 120.00% 120.00% 120.00%
                                                              
Pass / Fail                Pass     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 by the Company.

Equity Investments

In May 2014, the Company sold its 12.5% interest in a joint venture that owns
and operates a commercial property with a carrying value of approximately $0.1
million and received $7.9 million in cash.As a result, the Company recorded a
gain from this transaction of approximately $7.9 million in gain on sale of
equity interest.

As previously disclosed, the Company will recognize a $58.1 million net gain
related to its investment in the 450 West 33^rd Street property in its third
quarter 2014 consolidated financial statements.In 2007, the Company received
net proceeds of approximately $58.1 million from the closing of this
transaction and recorded a corresponding net deferred gain as a result of
guarantying a portion of the property's indebtedness. In July 2014, the
existing debt on the property was refinanced and the Company's portion of the
guarantee terminated, resulting in the recognition of the deferred gain for
GAAP 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 quarter
ended June 30, 2014. The dividend is payable on September 2, 2014 to common
shareholders of record on August 15, 2014. The ex-dividend date is August 13,
2014.

Preferred Dividends

The Company announced today that its Board of Directors has declared cash
dividends on the Company's Series A, Series B and Series C cumulative
redeemable preferred stock reflecting accrued dividends from June 1, 2014
through August 31, 2014. The dividends are payable on September 2, 2014 to
shareholders of record on August 15, 2014. The Company will pay total
dividends of $0.515625, $0.484375 and $0.53125 per share on the Series A,
Series B and Series C preferred stock, respectively.

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 at 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) 280-4957 for domestic callers and (857) 244-7314 for
international callers. Please use participant passcode 12621739.

After the live webcast, the call will remain available on the Company's
website, www.arborrealtytrust.com, through August 31, 2014. In addition, a
telephonic replay of the call will be available until August 8, 2014. The
replay dial-in numbers are (888) 286-8010 for domestic callers and (617)
801-6888 for international callers. Please use passcode 14799841.

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 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. For
more information about Arbor Realty Trust, Inc., please visit
www.arborrealtytrust.com.

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 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 INCOME - (Unaudited)
                                                 
                      Quarter Ended               Six Months Ended
                      June 30,                    June 30,
                      2014          2013          2014          2013

                                                             
                                                             
Interest income       $25,492,429 $24,329,116 $50,404,284 $47,317,938
Interest expense      11,222,597   10,333,073   21,813,975   20,975,317
Net interest income   14,269,832   13,996,043   28,590,309   26,342,621
                                                             
Other revenue:                                               
Property operating     9,001,383    8,231,822    18,259,471   17,127,256
income
Other income, net     150,187      605,317      1,008,583    1,984,775
Total other revenue   9,151,570    8,837,139    19,268,054   19,112,031
                                                             
Other expenses:                                              
Employee compensation  3,552,548    2,968,678    6,938,497    6,052,317
and benefits
Selling and            3,194,845    2,969,733    5,177,064    5,159,016
administrative
Property operating     7,423,080    7,161,334    14,420,203   14,031,493
expenses
Depreciation and       2,158,353    1,827,595    3,970,036    3,459,726
amortization
Impairment loss on     --           --           250,000      --
real estate owned
Provision for loan
losses (net of         (870,187)    821,722      (735,843)    3,321,877
recoveries)
Management fee -       2,500,000    2,800,000    4,950,000    5,600,000
related party
Total other expenses  17,958,639   18,549,062   34,969,957   37,624,429
                                                             
Income before gain on
extinguishment of
debt, gain on sale of  5,462,763    4,284,120    12,888,406   7,830,223
equity interestand
income (loss) from
equity affiliates
Gain on extinguishment --           --           --           3,763,000
of debt
Gain on sale of equity 7,851,266    --           7,851,266    --
interest
Income (loss) from     40,493       (81,804)     80,541       (163,689)
equity affiliates
                                                             
Net income            13,354,522   4,202,316    20,820,213   11,429,534
                                                             
                                                             
Preferred stock        1,888,465    1,152,617    3,479,395    1,685,945
dividends
Net income
attributable to        --           53,833       --           107,484
noncontrolling
interest
                                                             
Net income
attributable to Arbor  $11,466,057 $2,995,866  $17,340,818 $9,636,105
Realty Trust, Inc.
common stockholders
                                                             
Basic earnings per     $0.23       $0.07       $0.35       $0.25
common share
                                                             
Diluted earnings per   $0.23       $0.07       $0.35       $0.25
common share
                                                             
Dividends declared per $0.13       $0.12       $0.26       $0.24
common share
                                                             
Weighted average
number of shares of                                           
common stock
outstanding:
                                                             
Basic                 50,267,462   43,113,898   49,804,457   38,468,718
                                                             
Diluted               50,701,742   43,555,495   50,229,899   38,921,834

                                                            
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
                                                            
                                            June 30,         December 31,
                                            2014             2013
                                            (Unaudited)      
Assets:                                                      
Cash and cash equivalents                    $47,813,740    $60,389,552
Restricted cash                             156,795,469     54,962,316
Loans and investments, net                   1,502,586,691   1,523,699,653
Available-for-sale securities, at fair value 2,805,471       37,315,652
Investments in equity affiliates             4,588,107       4,680,306
Real estate owned, net                       120,830,942     111,718,177
Real estate held-for-sale, net               --              11,477,676
Due from related party                       358,110         98,058
Prepaid management fee - related party       19,047,949      19,047,949
Other assets                                 48,146,390      54,083,143
Total assets                                $1,902,972,869 $1,877,472,482
                                                            
Liabilities and Equity:                                      
Credit facilities and repurchase agreements  $22,204,000    $159,125,023
Collateralized debt obligations              433,297,191     639,622,981
Collateralized loan obligations              545,750,000     264,500,000
Senior unsecured notes                       58,637,625      --
Junior subordinated notes to subsidiary      159,557,894     159,291,427
trust issuing preferred securities
Notes payable                                2,498,542       2,500,000
Mortgage note payable – real estate owned    53,538,637      42,745,650
Mortgage note payable – real estate          --              11,005,354
held-for-sale
Due to related party                         1,666,667       2,794,087
Due to borrowers                             16,979,900      20,326,030
Deferred revenue                             77,123,133      77,123,133
Other liabilities                            55,127,961      60,842,515
Total liabilities                           1,426,381,550   1,439,876,200
                                                            
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 June                    
30, 2014 and December 31, 2013;
7.75% Series B cumulative redeemable                        
preferred stock, $31,500,000 aggregate
liquidation preference; 1,260,000 issued                    
and outstanding at June 30, 2014 and
December 31, 2013; 8.50% Series C                           
cumulative redeemable preferred stock,
$22,500,000 aggregate liquidation
preference; 900,000 issued and outstanding                   
at
June 30, 2014, no shares issued and         89,295,905      67,654,655
outstanding at December 31, 2013
Common stock, $0.01 par value: 500,000,000                   
shares authorized; 53,128,075
shares issued, 50,477,308 shares                            
outstanding at June 30, 2014 and
51,787,075 shares issued, 49,136,308 shares 531,280         517,870
outstanding at December 31, 2013
Additional paid-in capital                   631,889,669     623,993,245
Treasury stock, at cost - 2,650,767 shares   (17,100,916)    (17,100,916)
at June 30, 2014 and December 31, 2013
Accumulated deficit                          (207,803,092)   (212,231,319)
Accumulated other comprehensive loss         (20,221,527)    (25,237,253)
Total stockholders' equity                  476,591,319     437,596,282
Total liabilities and equity                 $1,902,972,869 $1,877,472,482

                                                              
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
                                                              
Supplemental Schedule of Non-GAAP Financial Measures--
Adjusted and GAAP Book Value per Common Share (Actual and Pro Forma)
(Unaudited)
                                                              Pro Forma
                                                June 30, 2014  June 30, 2014
                                                              
                                                              
GAAP Arbor Realty Trust, Inc. Stockholders'     $476,591,319 $534,666,503
Equity
Subtract: 8.25% Series A, 7.75% Series B and
8.50% Series C cumulative redeemable preferred   (89,295,905)  (89,295,905)
stock
                                                              
GAAP Arbor Realty Trust, Inc. Common            387,295,414   445,370,598
Stockholders' Equity
                                                              
                                                              
Add: 450 West 33rd Street transaction -         77,123,133    --
deferred revenue
Unrealized loss on derivative instruments      19,551,436    19,551,436
                                                              
Subtract: 450 West 33rd Street transaction -    (19,047,949)  --
prepaid management fee
                                                              
Adjusted Arbor Realty Trust, Inc. Common        $464,922,034 $464,922,034
Stockholders' Equity
                                                              
                                                              
Adjusted book value per common share           $9.21        $9.21
                                                              
GAAP book value per common share               $7.67        $8.82
                                                              
Common shares outstanding                      50,477,308    50,477,308
                                                              

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 common share for the affected period to currently
reflect the 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. The table also presents pro forma GAAP book value
per common share based on June 30, 2014 financial information adjusted for the
recognition of the $58.1 million net deferred gain from the 450 West 33rd
Street transaction which occurred in the third quarter of 2014.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 common share and adjusted book value per common share
calculations do not take into account any dilution from the 1,000,000 warrants
issued to Wachovia as part of the 2009 debt restructuring. These warrants were
purchased in the third quarter of 2014 for $2.6 million.

                                                             
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
                                                             
Supplemental Schedule of Non-GAAP Financial Measures (Continued) --
Funds from Operations
(Unaudited)
                                                             
                       Quarter Ended              Six Months Ended
                       June 30,                   June 30,
                       2014          2013         2014          2013
                                                             
                                                             
Net income attributable
to Arbor Realty Trust,  $11,466,057 $2,995,866 $17,340,818 $9,636,105
Inc. common
stockholders
                                                             
Add:                                                          
Impairment loss on     --          --         250,000      --
real estate owned
Depreciation - real    2,158,353    1,827,595   3,970,036    3,459,726
estate owned
Depreciation -
investment in equity    69,370       22,599      138,740      45,198
affiliate
                                                             
Funds from operations   $13,693,780 $4,846,060 $21,699,594 $13,141,029
("FFO")
                                                             
Diluted FFO per common $0.27       $0.11      $0.43       $0.34
share
                                                             
Diluted weighted
average shares          50,701,742   43,555,495  50,229,899   38,921,834
outstanding
                                                             

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 REITs. The National Association of Real Estate
Investment Trusts, or NAREIT, defines FFO as net income (loss) attributable to
common stockholders (computed in accordance with 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 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
        
         Media:
         Bonnie Habyan, EVP of Marketing
         516-506-4615
         bhabyan@arbor.com
        
         Investors:
         Joseph Green
         The Ruth Group
         646-536-7013
         jgreen@theruthgroup.com
 
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