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Arbor Realty Trust reported third-quarter net income of USD 52.01 million, slightly below analysts' expectations of USD 52.48 million, with earnings per share at USD 0.20 versus the forecasted USD 0.23. Revenue totalled USD 2.02 billion, supported by a USD 48 million gain from an equity investment and the firm's strongest agency loan origination activity since late 2020, with USD 1.98 billion in new loans. Net interest income stood at USD 38.26 million, and the company declared a USD 0.30 quarterly dividend. Analysts maintain a 'hold' rating, with a 12-month price target of USD 11.75. Despite the earnings miss, robust loan growth and steady dividends reflect Arbor's underlying financial resilience.
Arbor Realty Trust announced its third-quarter financial performance earlier this week, revealing a net income of USD 52.01 million, marginally below analysts' expectations of USD 52.48 million. Earnings per share stood at USD 0.20, missing the consensus estimate of USD 0.23 based on four analysts' forecasts. The company's total revenue reached USD 2.02 billion for the quarter. Advertisement
A key driver for the quarter was a substantial USD 48 million cash gain recognised from an equity investment. The firm also reported its strongest agency loan origination activity since the fourth quarter of 2020, with total originations amounting to USD 1.98 billion, significantly boosting revenue. Meanwhile, the company noted a decline in its weighted average interest rate due to delinquencies and rate modifications within its structured loan portfolio.
Net interest income for the quarter was reported at USD 38.26 million. The company declared a quarterly cash dividend of USD 0.30 per share.
Analyst sentiment towards Arbor Realty Trust remains mixed, with the average rating on the stock currently classified as 'hold.' The breakdown includes one recommendation each for 'buy' and 'hold,' and two for 'sell' or 'strong sell.' In comparison, the average consensus for its specialised REITs peer group also stands at 'hold.' Wall Street's median 12-month price target for the company's shares is USD 11.75, roughly 1.7% above the recent closing price of USD 11.55. The stock is presently trading at 11 times the next 12 months' earnings, up from a price-to-earnings ratio of 10 recorded three months ago.
Arbor Realty Trust's third-quarter performance reflected resilience in key operational areas despite a slight earnings miss. Strong agency loan originations and a sizeable equity investment gain helped support its overall revenue growth. While net income and EPS came in below expectations, the company's steady dividend payout and positive origination momentum underline its financial stability. Analysts' cautious stance and a modest price target suggest that investors may remain measured until sustained earnings growth is observed in subsequent quarters.
Source - Reuters
5th Jun, 2025
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