Arbor Realty Suspends Dividend After $85 Million Third-Quarter Loss

Arbor Realty Trust suspended its quarterly common stock dividend on Friday, Oct. 30, after a third-quarter net loss of $85.4 million, or $0.51 a share, the multifamily lender said in results filed with the SEC before the market opened. A year earlier it earned $38.5 million, or $0.20 a share.

The decision reflects a "focus on preserving capital and maintaining financial flexibility to address upcoming debt maturities and support the resolution of legacy assets," the release says. Arbor (NYSE: ABR) declared $0.17 a share for each of the past two quarters and $0.30 a share a year earlier.

Why did Arbor Realty suspend its dividend?

To keep cash as bad loans pile up. Arbor's distributable loss, the measure it uses to set the dividend, was $6.9 million, or $0.04 a share, against earnings of $72.9 million, or $0.35, a year earlier. Excluding $21.7 million of net realized losses on legacy assets, it earned $0.08 a share, less than half the last payout.

Measure	Q3 2026	Q2 2026
Nonperforming loans	32 loans, $647.6 million	19 loans, $428.8 million
Weighted average yield on loan portfolio	6.84%	7.21%
Average cost of borrowings	6.66%	6.56%
Loan portfolio (unpaid principal)	$12.00 billion	$12.11 billion

Source: Arbor Realty Trust earnings release, Oct. 30, 2026.

Arbor said the drop in yield came "primarily" from more delinquencies and rate modifications. It modified six loans with $192.1 million of principal for borrowers in financial difficulty, most of whom put in more capital. It set aside a $53.0 million net provision for loan losses and took $34.1 million of impairments on six foreclosed properties, foreclosed on one $13.2 million loan and sold five properties for $39.0 million. The loan loss allowance reached $210.1 million, from $146.0 million at the end of 2025.

Bridge loans on multifamily property make up $7.68 billion, or 64%, of the book; single-family rental bridge loans are another 29%. In its 10-Q, Arbor says long-term Treasury yields "have increased significantly," pushing down property values and slowing sales, "particularly in the multifamily sector," and stretching the time needed to resolve bad loans.

How is Arbor funding itself?

With more expensive and more structured debt. Debt financing the loan book was $10.75 billion at a weighted average rate of 6.69%, including fees, up from 6.38% on June 30. For current SOFR and prime levels, see hard money and private lending rates today.

In the quarter Arbor closed an $825.0 million securitization priced at term SOFR plus 1.70%, which it said added about $50 million of liquidity. It also sold $375.0 million of 6.25% convertible notes due 2029, using the proceeds to redeem $270.0 million of 4.50% notes and to repurchase about 21 million shares, including 18.9 million through a prepaid forward agreement.

The 10-Q says 53% of its $11.01 billion of structured debt has no mark-to-market provisions. The other $5.22 billion sits in bank credit and repurchase facilities, and $2.24 billion of that can face margin calls tied to changes in interest spreads. Arbor says it expects to extend or renew its facilities but "cannot provide assurance" the terms will be as favorable. Our warehouse line of credit guide explains how these facilities and margin calls work.

New lending slowed. Structured originations were $459.2 million, below $574.0 million of runoff, and agency originations fell to $907.0 million from $1.08 billion in the second quarter.

Arbor's move follows Blackstone Mortgage Trust's dividend cut on Oct. 29.