- AFFO generated during Q2 2025 was approximately $16 million.
- Core FFO per diluted share for Q2 2025 was $0.36 versus $0.37 in Q2 2024, with a $0.01 decrease due to higher net interest expense from refinancing activity.
- No final debt maturities until 2028 and $450 million available under revolving credit line.
- Portfolio trading at roughly $200 per square foot valuation with an implied yield on cost after CapEx of more than 10%.
- Repurchased approximately $68 million of 9.25% bonds, recognizing a $7.5 million loss on early extinguishment of debt but expected to save $7.5 million in total interest over 3 years.
- Sale of three nonstrategic projects and downtime from lease expirations offset growth from higher economic occupancy and rental rate growth.
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- Distributable earnings (DE) were $0.24 per share, negatively impacted by $0.10 per share in credit losses on fair value loans, higher than Q1 by $0.06 per share.
- Economic book value declined modestly by 1% to $13.69 per share, while GAAP book value was $13.12 per share, also down about 1%.
- Excluding credit losses, DE would have been $0.35 per share, nearly covering the common dividend of $0.36 per share.
- G&A expenses declined to $29.9 million from $33.5 million in Q1, including $1.2 million in severance and transition costs related to expense reduction initiatives.
- MFA Financial reported GAAP earnings of $33.2 million or $0.22 per share in Q2 2025, driven by growth in net interest income to $61.3 million and modest net mark-to-market gains.
- MFA paid a common dividend of $0.36 per share for the quarter and delivered a total economic return of 1.5% for Q2 and 3.4% year-to-date.
- Adjusted EBITDA rose significantly to $147 million from $79 million in Q2 2024.
- Baseline EBITDA increased 12% year-over-year to $117 million in Q2 2025, with trailing 12-month baseline EBITDA at $425 million.
- GAAP EPS for Q2 2025 was a loss of $0.05 per share, improved from a loss of $0.43 per share in Q2 2024.
- Investment management fees grew 39% in Q2 to a record $36 million, with fee-bearing capital reaching $9.2 billion.
- Q2 asset sales generated $55 million in gains, contributing to $275 million cash proceeds year-to-date from noncore asset sales.
- Capital allocated to legacy investments reduced by 17% since March 31, 2025.
- Core segment's earnings available for distribution (EAD) was $25 million or $0.18 per share, with a 14.5% annualized ROE, compared to $28 million or $0.20 per share in Q1.
- CoreVest Mortgage Banking achieved $6 million segment net income and a 34% annualized EAD ROE.
- GAAP book value per share declined to $7.49 at June 30, 2025, from $8.39 at March 31, 2025.
- Legacy investments recorded a $104 million loss, driven by negative fair value adjustments and accelerated asset sales.
- Mortgage banking platforms delivered combined returns exceeding 20% and gain on sale margins above target for the fourth consecutive quarter.
- Mortgage banking revenue increased 88% year-over-year.
- Redwood reported a GAAP net loss of $100.2 million or $0.76 per share for Q2 2025, primarily due to accelerated wind down of legacy portfolio and associated fair value changes.
- Sequoia Mortgage Banking generated $22 million segment net income with a 19% annualized ROE; Aspire loan volumes tripled sequentially to $330 million.
- Book value per share grew 2%, tangible book value per share improved 4%.
- Diluted earnings per share of $0.83 for Q3 2025, improved compared to the linked quarter.
- Excluding accretion income, net interest margin expanded 5 basis points, marking the fifth straight quarter of core margin expansion.
- Net interest income increased nearly $4 million with net interest margin expanding by 1 basis point.
- Noninterest expenses declined 1%, improving efficiency ratio to 57.1% from 59.3%.
- Provision for credit losses declined over 50%, driven by net charge-offs, loan growth, and economic forecast adjustments.
- Quarterly net charge-off rate decreased by 2 basis points to 41 basis points annualized.
- Tangible equity to tangible assets ratio improved 27 basis points to 8.5%.
- AFFO was $18.4 million or $0.18 per diluted share.
- FFO attributable to common shareholders was $19 million or $0.19 per diluted share.
- Liquidity remained strong at $172.2 million including revolving credit availability.
- Net debt to total adjusted EBITDA stood at 7.7x, and stabilized portfolio debt to adjusted EBITDA was 5.2x.
- Normalized FFO for Q2 2025 was $0.25 per diluted share, in line with guidance.
- Office occupancy remained high at 96.3%, retail occupancy at 94.2%, and multifamily occupancy dipped slightly to 94%.
- Same-store NOI increased 1.4% on a GAAP basis and 0.3% on a cash basis.
- Agency originations were $857 million in Q2 with strong margins of 1.69%, and loan sales totaled $807 million; mortgage servicing rights income was $10.9 million.
- Balance sheet lending portfolio grew to $11.6 billion with an all-in yield of 7.86%, while total debt on core assets was $9.6 billion with an all-in cost of 6.88%.
- In Q2 2025, Arbor Realty Trust produced distributable earnings of $62.5 million or $0.30 per share excluding $10.5 million of onetime realized losses from REO asset sales, translating into a 10% ROE.
- Leverage was reduced by 25% to a ratio of 3:1 from a peak of 4:1 nearly three years ago, aided by new unsecured rated debt issuance.
- Loan loss reserves increased by $16 million in Q2, including $6.5 million specific reserves and $9.5 million general CECL reserves due to changes in real estate value outlooks.
- Net interest income dropped from $75 million in Q1 to $69 million in Q2 due to increased delinquencies, less back interest collected, and reversals related to foreclosures.
- Net interest spreads declined to 1.08% from 1.26% last quarter, impacted by back interest collection variability and new nonperforming loans.
- Total delinquencies decreased to $529 million at June 30 from $654 million at March 31, with 60+ day delinquencies at $472 million and less than 60 days at $57 million.
- Book value per common share declined by about $0.25 to $7.99, partially offset by accretive share buybacks estimated to add $0.15 per share.
- CECL reserve declined by $25 million to $155 million, driven by $36 million of write-offs partially offset by an $11 million provision increase.
- Distributable loss for the quarter was $45.3 million or negative $0.94 per basic common share, including $36.1 million of write-offs related to nonaccrual loan resolutions.
- Provision for credit losses was $11 million or negative $0.23 per basic common share due to a less favorable macroeconomic forecast in the CECL model.
- Reported a GAAP net loss attributable to common stockholders of $17 million or negative $0.35 per basic common share in Q2 2025.
- Total leverage decreased slightly to 2.1x, with unrestricted cash of about $85 million at quarter end.
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