- Book value per common share was $11.20, slightly up from $11.19 in the previous quarter.
- Debt-to-equity ratio increased modestly to 2.6x from 2.2x to support loan growth.
- Liquidity at quarter end was $236.4 million, including $165.9 million cash and $66.1 million undrawn credit capacity.
- Loan portfolio grew by 15% in Q2 2025, with a 100% performing loan book and no 5-rated loans, only 2 rated 4.
- Repurchased 1.7 million common shares for $12.5 million, generating $0.08 per share of book value accretion.
- Sold 2 REO properties at a combined GAAP gain of $7 million, reducing REO exposure to about 5% of total assets.
- TRTX reported GAAP net income of $16.9 million or $0.21 per common share and distributable earnings of $0.24 per common share, covering the quarterly dividend of $0.24 per share.
- Weighted average credit spread on new loans was 2.86%.
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- Adjusted net interest income per share rose 10% quarter-over-quarter and 47% year-over-year to $0.44 per share.
- GAAP book value and adjusted book value per share decreased to $9.11 and $10.26 respectively, representing a 2.8% and 1.6% decrease compared to March 31.
- Net interest spread increased to 150 basis points from 132 basis points in the first quarter, driven by a 17 basis point reduction in average financing costs.
- Net loss from real estate increased slightly to $3 million due to higher operating expenses.
- NYMT reported strong second quarter performance with Earnings Available for Distribution (EAD) surpassing the current common dividend by $0.02, reaching $0.22 per share, a 10% increase quarter-over-quarter.
- Realized net losses of approximately $3.8 million were mostly offset by reversals of previously recognized unrealized losses.
- Recorded $24.6 million in net unrealized gains mainly from Agency RMBS and residential loan portfolios, offset by $36.3 million in unrealized losses on derivative instruments.
- Recourse leverage ratio increased to 3.8x from 3.4x, primarily due to financing activity supporting Agency RMBS acquisitions.
- Entered into a new $200 million 5-year revolving credit facility with JPMorgan Chase, Raymond James, RBC, and Synovus, with potential to increase by an additional $200 million.
- Improved credit spread by 15 basis points compared to previous facility, with a maturity date of June 30, 2028.
- Significant reduction in interest rate risk through a new SOFR swap at a fixed rate of 3.489%.
- Asset quality improved with net charge-offs declining and total NPAs to assets ratio at 0.45%, the lowest since September 2024.
- Capital markets revenue rebounded sharply to $24 million, up $14 million from the prior quarter, exceeding guidance.
- Core deposits grew $410 million or 8% annualized year-to-date, supporting strong funding base.
- Efficiency ratio improved to 55.8%, the lowest in four years, reflecting disciplined expense management.
- Loan growth accelerated by $286 million or 17% annualized, net of planned runoff from M2 equipment loans.
- Net interest income increased by $3 million or 18% annualized, driven by net interest margin (NIM) expansion and strong loan growth.
- Record quarterly net income of $37 million and earnings per share of $2.17, representing 26% growth compared to the prior quarter.
- Wealth management revenue grew 8% linked quarter to over $5 million, with year-over-year growth of 15% annualized.
- 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.
- Cash same-property NOI growth in Q2 was 450 basis points, with onetime items contributing 300 basis points on a cash basis.
- Excluding that lease, cash re-leasing spreads would have been approximately positive 1%, a meaningful improvement year-over-year.
- FFO for the quarter was $1.13 per diluted share, including approximately $0.11 per share of onetime items such as a $10.7 million lease termination fee contributing $0.05 per share.
- GAAP re-leasing spreads were negative 11.2% and cash re-leasing spreads negative 15.2%, impacted by a single large lease in San Francisco with a term under 3 years.
- Occupancy ended Q2 at 80.8%, down from 81.4% in Q1, reflecting expected rightsizing and early vacates related to tenant bankruptcies.
- The removal of the 89% leased 4-building campus held for sale negatively impacted occupancy by 20 basis points but lease commencement acceleration maintained occupancy guidance midpoint.
- Cash NOI was lower primarily due to a one-time PENN 1 ground rent true-up payment and free rent associated with backfilling known move-outs.
- Generated $1.5 billion of net proceeds from sales, financings, and the NYU deal, paid down $965 million of debt, and increased cash by $540 million, resulting in cash balances of $1.36 billion and total liquidity of $2.9 billion.
- Lower net interest income from retail preferred repayments and lower NOI from asset sales were offset by lower real estate taxes at THE MART net of tenant reimbursements.
- Net debt-to-EBITDA improved by 1.4 turns to 7.2x from 8.6x, and fixed charge coverage ratio is steadily rising.
- New York office occupancy increased to 86.7% from 84.4% last quarter, mainly due to the full building master lease at 770 Broadway.
- Second quarter comparable FFO was $0.56 per share, beating analyst consensus of $0.53 and essentially flat compared to last year's second quarter.
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