Arbor Realty Trust Inc. (ABR, Financial) filed Quarterly Report for the period ended 2011-06-30.
Arbor Realty Trust Inc. has a market cap of $108.2 million; its shares were traded at around $4.25 with a P/E ratio of 1.3 and P/S ratio of 1.1.
During the six months ended June 30, 2011 we entered into a LIBOR Cap with a notional value of approximately $73.3 million that was designated as a cash flow hedge and a LIBOR Cap with a notional value of approximately $6.0 million that was not designated as a cash flow hedge. In addition, the notional value on two basis swaps decreased by approximately $119.0 million pursuant to the contractual terms of the respective swap agreements, the notional value on three interest rate swaps decreased by approximately $53.5 million pursuant to the contractual terms of the respective swap agreements, and two basis swaps matured with a combined notional value of approximately $24.8 million. During the six months ended June 30, 2010 we entered into two new interest rate swaps that qualify as cash flow hedges with a combined notional value of approximately $7.5 million. In addition, the notional value of one interest rate swap decreased by approximately $17.1 million pursuant to the contractual terms of the swap agreement and two interest rate swaps matured with a combined notional value of approximately $12.5 million. Gains and losses on terminated swaps are deferred and recognized in interest expense over the original life of the hedged item. The fair value of our qualifying hedge portfolio has increased by approximately
During the quarter ended June 30, 2011, we originated five loans totaling $43.6 million that had an aggregate weighted average rate of interest of 7.09%, as well as received full satisfaction of one loan for $19.9 million that had a rate of interest of 9.35%. We also received partial repayment on one loan of $3.2 million, entered into a $32.0 million non-recourse junior loan participation, at a discount, on a mezzanine loan with an unpaid principal balance of $50.0 million, receiving proceeds of $28.8 million and recording a non-cash recovery to a previously recorded reserve of $3.2 million, and entered into a $2.0 million non-recourse junior loan participation on a mezzanine loan with an unpaid principal balance of $11.8 million. See Sources of Liquidity Notes Payable below. We also refinanced and/or modified three loans totaling $112.0 million which decreased the aggregate weighted average rate of interest on the modified loans from 2.59% to 2.56%, and 13 loans totaling approximately $162.9 million were extended during the quarter, of which four loans totaling approximately $35.5 million were in accordance with the extension option of the corresponding loan agreement.
Other assets increased $0.6 million, or 1%, to $42.5 million at June 30, 2011 compared to $42.0 million at December 31, 2010. The increase was primarily due to a $2.2 million increase in other assets held by our real estate owned investments and a $0.5 million increase in interest receivable, net of a $1.5 million decrease in deferred financing fees, which includes amortization, a $0.5 million decrease in the fair value of our non-qualifying CDO basis swaps and a $0.1 million decrease due to the effect of LIBOR rates on a portion of our interest rate swaps. See Item 3 Quantitative and Qualitative Disclosures About Market Risk for further information relating to our derivatives.
Notes payable increased $34.0 million, or 66%, to $85.5 million at June 30, 2011 compared to $51.5 million at December 31, 2010 due to entering into a non-recourse junior loan participation of $32.0 million on a $50.0 million mezzanine loan and a non-recourse junior loan participation of $2.0 million on an $11.8 million mezzanine loan in the second quarter of 2011. See Sources of Liquidity Notes Payable below.
Other liabilities decreased $6.0 million, or 7%, to $78.4 million at June 30, 2011 compared to $84.4 million at December 31, 2010. The decrease was primarily due to the use of $4.1 million of deposits on the transfer of a loan to real estate owned, payment of a $1.1 million payable to a lender as a result of a loan modification in 2010, a $5.4 million decrease in accrued interest payable primarily due to the increase in value of our interest rate swaps and the timing of reset dates, net of $2.5 million of effective yield amortization on our junior subordinated notes, a $1.1 million increase in accrued expenses and a $1.0 million increase in various other deposits and deferred fees.
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Arbor Realty Trust Inc. has a market cap of $108.2 million; its shares were traded at around $4.25 with a P/E ratio of 1.3 and P/S ratio of 1.1.
Highlight of Business Operations:
During the first and second quarters of fiscal year 2011 we recorded $1.6 million and $11.4 million, respectively, of new provisions for loan losses due to declining collateral values; net recoveries of reserve of $3.8 million related to five loans in our portfolio in the second quarter of 2011; $1.0 million of recoveries of reserve related to two loans in our portfolio in the first quarter of 2011; accrued a $1.0 million loss on a restructured loan in the first quarter of 2011; and recorded an impairment loss of $0.8 million on a real estate owned investment in the second quarter of 2011. During the first, second, third and fourth quarters of fiscal year 2010 we recorded $25.0 million, $25.6 million, $15.2 million and $35.2 million, respectively, of new provisions for loan losses due to declining collateral values; a $0.8 million recovery from one fully reserved loan in the second quarter of 2010, a recovery of $2.7 million from two loans in the third quarter of 2010, and a recovery of $14.6 million from two loans in the fourth quarter of 2010; and $0.8 million, $5.4 million and $1.0 million of losses on restructured loans in the second, third and fourth quarters of 2010, respectively. In addition, we acquired two new real estate owned properties through a transfer from a creditor trust and a purchase out of bankruptcy, respectively, in the first quarter of 2011. We also acquired one new real estate owned property through deed in lieu of foreclosure and sold a real estate property held-for-sale in 2010. We have made, and continue to make modifications and extensions to loans when it is economically feasible to do so. In some cases, a modification is a more viable alternative to foreclosure proceedings when a borrower can not comply with loan terms. In doing so, lower borrower interest rates, combined with non-performing loans, will lower our net interest margins when comparing interest income to our costs of financing. These trends may persist with a prolonged economic downturn and we feel if they do, there will beDuring the six months ended June 30, 2011 we entered into a LIBOR Cap with a notional value of approximately $73.3 million that was designated as a cash flow hedge and a LIBOR Cap with a notional value of approximately $6.0 million that was not designated as a cash flow hedge. In addition, the notional value on two basis swaps decreased by approximately $119.0 million pursuant to the contractual terms of the respective swap agreements, the notional value on three interest rate swaps decreased by approximately $53.5 million pursuant to the contractual terms of the respective swap agreements, and two basis swaps matured with a combined notional value of approximately $24.8 million. During the six months ended June 30, 2010 we entered into two new interest rate swaps that qualify as cash flow hedges with a combined notional value of approximately $7.5 million. In addition, the notional value of one interest rate swap decreased by approximately $17.1 million pursuant to the contractual terms of the swap agreement and two interest rate swaps matured with a combined notional value of approximately $12.5 million. Gains and losses on terminated swaps are deferred and recognized in interest expense over the original life of the hedged item. The fair value of our qualifying hedge portfolio has increased by approximately
During the quarter ended June 30, 2011, we originated five loans totaling $43.6 million that had an aggregate weighted average rate of interest of 7.09%, as well as received full satisfaction of one loan for $19.9 million that had a rate of interest of 9.35%. We also received partial repayment on one loan of $3.2 million, entered into a $32.0 million non-recourse junior loan participation, at a discount, on a mezzanine loan with an unpaid principal balance of $50.0 million, receiving proceeds of $28.8 million and recording a non-cash recovery to a previously recorded reserve of $3.2 million, and entered into a $2.0 million non-recourse junior loan participation on a mezzanine loan with an unpaid principal balance of $11.8 million. See Sources of Liquidity Notes Payable below. We also refinanced and/or modified three loans totaling $112.0 million which decreased the aggregate weighted average rate of interest on the modified loans from 2.59% to 2.56%, and 13 loans totaling approximately $162.9 million were extended during the quarter, of which four loans totaling approximately $35.5 million were in accordance with the extension option of the corresponding loan agreement.
Other assets increased $0.6 million, or 1%, to $42.5 million at June 30, 2011 compared to $42.0 million at December 31, 2010. The increase was primarily due to a $2.2 million increase in other assets held by our real estate owned investments and a $0.5 million increase in interest receivable, net of a $1.5 million decrease in deferred financing fees, which includes amortization, a $0.5 million decrease in the fair value of our non-qualifying CDO basis swaps and a $0.1 million decrease due to the effect of LIBOR rates on a portion of our interest rate swaps. See Item 3 Quantitative and Qualitative Disclosures About Market Risk for further information relating to our derivatives.
Notes payable increased $34.0 million, or 66%, to $85.5 million at June 30, 2011 compared to $51.5 million at December 31, 2010 due to entering into a non-recourse junior loan participation of $32.0 million on a $50.0 million mezzanine loan and a non-recourse junior loan participation of $2.0 million on an $11.8 million mezzanine loan in the second quarter of 2011. See Sources of Liquidity Notes Payable below.
Other liabilities decreased $6.0 million, or 7%, to $78.4 million at June 30, 2011 compared to $84.4 million at December 31, 2010. The decrease was primarily due to the use of $4.1 million of deposits on the transfer of a loan to real estate owned, payment of a $1.1 million payable to a lender as a result of a loan modification in 2010, a $5.4 million decrease in accrued interest payable primarily due to the increase in value of our interest rate swaps and the timing of reset dates, net of $2.5 million of effective yield amortization on our junior subordinated notes, a $1.1 million increase in accrued expenses and a $1.0 million increase in various other deposits and deferred fees.
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