Arbor Realty Trust Reports Fourth Quarter and Full Year 2008 Results (PR Newswire)
Wed, 18 Feb 2009 13:00:00 Etc/GM
- Net loss of $108.2 million, or $4.30 per diluted common share
- FFO loss of $107.7 million, or $4.28 per diluted common share(1)
- Adjusted book value per share $17.33, GAAP book value per share $11.18(1)
- Recorded $124 million in loan loss reserves
- Recorded impairments of $3.4 million on available-for-sale securities and $1.4 million on securities held-to-maturity
- Reduced short-term debt by $117 million
- Received $1.4 million in cash and recorded $1.4 million in income from equity participation interests
- Loan and investment portfolio net runoff of $123 million
Full Year Highlights:
- Net loss of $81.2 million, or $3.45 per diluted common share
- FFO loss of $77.0 million, or $3.36 per diluted common share(1)
- Recorded $132 million in loan loss reserves
- Recorded impairments of $16.2 million on available-for-sale securities and $1.4 million on securities held-to-maturity
- Reduced short-term debt by $310 million
- Received $34.5 million in cash and recorded $1.7 million in income from the monetization of equity participation interests
- Loan and investment portfolio net runoff of $332 million
- Paid dividends during the year of $2.10 per share
UNIONDALE, N.Y., Feb. 18 /PRNewswire-FirstCall/ -- Arbor Realty Trust, Inc. (NYSE: ABR - News), a real estate investment trust focused on the business of investing in real estate related bridge and mezzanine loans, preferred and direct equity investments, mortgage-related securities and other real estate related assets, today announced financial results for the fourth quarter and year ended December 31, 2008. Arbor reported a net loss for the quarter of $108.2 million, or $4.30 per diluted common share, compared to net income for the quarter ended December 31, 2007 of $15.3 million, or $0.75 per diluted common share. Funds from operations ("FFO") for the quarter was a loss of $107.7 million, or $4.28 per diluted common share, compared to FFO income for the quarter ended December 31, 2007 of $18.2 million, or $0.75 per diluted common share. Excluding a $3.4 million net loss from an other-than-temporary impairment on available-for-sale securities, $1.4 million of net loss from an other-than-temporary impairment on securities held-to-maturity, $1.0 million of net income from the Prime transaction and $0.9 million of net loss from the Company's equity investment in Alpine Meadows, net loss for the quarter ended December 31, 2008 was $103.5 million, or $4.11 per diluted common share. Excluding $2.3 million of net income from the Toy building transactions, net income for the quarter ended December 31, 2007 was $13.1 million, or $0.64 per diluted common share.(1)
Net loss for the year ended December 31, 2008 was $81.2 million, or $3.45 per diluted common share, compared to net income for the year ended December 31, 2007 of $84.5 million, or $4.44 per diluted common share. FFO for the full year ended December 31, 2008 was a loss of $77.0 million, or $3.36 per diluted common share, compared to FFO for the year ended December 31, 2007 of $101.5 million, or $4.44 per diluted common share. Excluding a $16.2 million net loss from other-than-temporary impairments on available-for-sale securities, $1.4 million of net loss from an other-than-temporary impairment on securities held-to-maturity, $1.0 million of net income from the Prime transaction and $3.1 million of net loss from the Company's equity investment in Alpine Meadows for the year ended December 31, 2008, and $34.4 million of net income from the 450 West 33rd Street, Toy building, Prime and On the Avenue transactions for the year ended December 31, 2007, net loss for the year ended December 31, 2008 was $61.6 million, or $2.59 per diluted common share, compared to net income for the year ended December 31, 2007 of $50.1 million, or $2.63 per diluted common share.(1)
During the quarter, the Company recorded a $0.9 million loss from its $10.2 million equity investment in the Alpine Meadows unconsolidated joint venture, a seasonal ski resort operation. This amount reflects Arbor's portion of the joint venture's losses, including depreciation expense of approximately $0.2 million, and was recorded in loss from equity affiliates and as a reduction to the Company's investment in equity affiliates on the balance sheet.
The net balance in the loan and investment portfolio, excluding loan loss reserves, was $2.4 billion at December 31, 2008, compared to $2.5 billion at September 30, 2008. The average balance of the loan and investment portfolio, excluding loan loss reserves, during the fourth quarter of 2008 was $2.5 billion and the average yield on these assets for the quarter was 7.08%, compared to $2.6 billion and 7.82% for the third quarter of 2008.
At December 31, 2008, the balance of debt financing on the loan and investment portfolio was $2.0 billion, as compared to $2.1 billion at September 30, 2008. The average balance of debt financing on the loan and investment portfolio during the fourth quarter of 2008 was $2.1 billion and the average cost of these borrowings was 4.10%, compared to $2.2 billion and 5.14% for the third quarter of 2008. In addition, the fourth quarter of 2008 included a $4.2 million reduction in interest expense for a change in the market value of certain interest rate swaps in accordance with GAAP. Excluding its effect, the average cost of borrowings for the quarter was 4.94%.
For the fourth quarter of 2008, Arbor's manager, Arbor Commercial Mortgage, LLC, did not earn an incentive compensation fee. In accordance with the management agreement, the annual incentive compensation in 2008 is subject to recalculation and reconciliation at the end of the fiscal year. As a result, the manager did not earn an incentive compensation fee for the full year 2008.
Financing Activity
As of December 31, 2008, Arbor's financing facilities for its loan and investment portfolio totaled approximately $2.2 billion and borrowings outstanding under such facilities were $2.0 billion.
As previously disclosed, the Company amended a $90 million bridge loan warehouse agreement during the fourth quarter extending the maturity for one year to October 2009. In addition, the amendment includes an interest rate spread over LIBOR increase of approximately 135 basis points on all new additions to the facility and a reduction of the committed amount to $70 million. At December 31, 2008, the facility had an outstanding balance of approximately $43.8 million.
During the quarter, the Company reduced its outstanding warehouse and term debt outstanding balances by approximately $116.6 million through a combination of loan payoffs and assets being moved into the Company's CDO vehicles. For the full year 2008, the Company reduced its outstanding warehouse and term debt outstanding balances by approximately $310.4 million.
In addition, during the quarter, the Company amended a $100 million repurchase agreement extending the maturity to June 2009. Under the terms of the amendment, the facility will be repaid in its entirety by June 2009, and includes an interest rate spread over LIBOR increase of approximately 110 basis points on the remaining assets in the facility. At December 31, 2008 and January 31, 2009, the facility had an outstanding balance of approximately $15.6 million and $7.4 million, respectively.
The Company is subject to various financial covenants and restrictions by each of the Company's CDO and credit facilities. Based on the unaudited financial statements in this release, the Company believes that it was in compliance with all financial covenants and restrictions as of December 31, 2008 with the exception of a minimum liquidity requirement with three financial institutions. The Company is required to have a minimum unrestricted cash and cash equivalents total balance ranging from $5 million to $15 million. The Company has obtained waivers of this covenant for December 31, 2008 from each of the three financial institutions.
Portfolio Activity
During the quarter, Arbor originated two bridge loans totaling $6 million.
During the quarter, seven loans paid off on properties that were either sold or refinanced outside of Arbor with an outstanding balance of $129 million. In addition, five loans were either refinanced or modified with Arbor totaling $128 million, of which four loans totaling $83 million were scheduled to repay during the quarter and another loan totaling approximately $45 million had a $1.0 million loan loss reserve recorded in the third quarter of 2008.
In addition, three loans totaling approximately $99 million were extended during the quarter in accordance with the extension options of the corresponding loan agreements.
At December 31, 2008, the loan and investment portfolio unpaid principal balance, excluding loan loss reserves, was $2.4 billion, with a weighted average current interest pay rate of 6.13%. At the same date, advances on financing facilities pertaining to the loan and investment portfolio totaled $2.0 billion, with a weighted average interest rate of 3.51% excluding financing costs, interest rate swap costs and changes in the market value of certain interest rate swaps.
As of December 31, 2008, Arbor's loan portfolio consisted of 35% fixed-rate and 65% variable rate loans.
During the fourth quarter, the Company recorded $124.0 million in loan loss reserves related to six loans with a carrying value of approximately $329.4 million, before loan loss reserves. The loan loss reserves were the result of the Company's regular quarterly risk rating review process, which is based on several factors including current market conditions, real estate values and the operating status of each property. At December 31, 2008, the Company's total loan loss reserves were $130.5 million relating to 10 loans with an aggregate carrying value before reserves of approximately $443.2 million.
The Company has a $115.0 million preferred equity investment in the Extended Stay Hotel portfolio. The Company applied $2.4 million of cash dividends received from this investment in the fourth quarter against the outstanding balance reducing it to $112.6 million. The Company also recorded a loan loss reserve of $83.0 million during the fourth quarter reducing the outstanding balance to $29.6 million at December 31, 2008. The Company will continue to apply all future cash payments received from this investment against the outstanding principal balance.
As previously disclosed, the Company has a $70.3 million bridge loan on a land development project located at 303 East 51st Street in New York City. In the first quarter of 2008, there was a tragic construction accident related to the development of this project. The loan is currently non-performing and the Company commenced foreclosure proceedings in July 2008. During the fourth quarter, the Company recorded a $15.0 million loan loss reserve against this asset reducing the outstanding principal balance to $55.3 million at December 31, 2008.
The Company had four non-performing loans with a carrying value of approximately $113.0 million, net of related loan loss reserves of $20.5 million as of December 31, 2008, compared to two non-performing loans with a carrying value of approximately $78.2 million, net of related loan loss reserves of $2.0 million as of September 30, 2008. Income recognition on these loans has been suspended and will resume when the loans become contractually current and performance has recommenced.
In the fourth quarter of 2008, the Company recorded $3.4 million of other-than-temporary impairment, in accordance with GAAP, associated with the Company's available-for-sale securities. These securities represent the Company' s investment in common stock of CBRE Realty Finance, Inc., a commercial real estate specialty finance company. In addition, in the fourth quarter, the Company recorded $1.4 million of other-than-temporary impairment, in accordance with GAAP, associated with the Company's securities held-to-maturity. These securities represent CDO bond securities issued by other commercial real estate REITs. GAAP accounting standards require that these securities are evaluated periodically to determine whether a decline in their value is other-than-temporary, though it is not intended to indicate a permanent decline in value. Management believes that based on recent market events and the unfavorable prospects for near-term recovery of value, that there is a lack of evidence to support the conclusion that the fair value decline is temporary. At December 31, 2008, the carrying value of these available-for-sale securities and securities held-to-maturity were approximately $0.5 million and $58.2 million.
Dividend
As previously announced, the Board of Directors has elected not to pay a common stock dividend for the quarter ended December 31, 2008. The Company decided, based on the continued difficult economic environment, to retain capital for working capital purposes. The Company will continue to evaluate its dividend policy, based upon the market environment, capital needs, estimated taxable income and REIT distribution requirements.
Equity Participation Interests
Attached as an exhibit to this press release is a schedule of certain data pertaining to the Company's investments with equity participation interests. During the quarter, the Company received a distribution of $0.4 million from its 8.7% equity interest in 1133 York Ave, which was recorded as income in loss from equity affiliates. The distribution was the result of a sale of the property. The Company no longer has an equity interest in the property.
In the second quarter of 2008, the Company entered into an agreement to transfer 16.67% of its 24.17% equity and profits interest in the Prime Outlets Member, LLC ("POM") entity, at a value of approximately $37 million, in exchange for preferred and common operating partnership units of Lightstone Value Plus REIT L.P. In connection with this agreement, the Company borrowed approximately $33 million, secured by the 16.67% interest. In the fourth quarter 2008, the Company received a $1.0 million distribution from POM related to its 24.17% equity and profits interest, the result of excess proceeds from the operations of the business. Of the distribution received by the Company, $1.0 million was recorded as interest income, representing the portion of the distribution received from the profits interest, $0.3 million was recorded as minority interest expense relating to a third party member's minority interest share of the profits interest and $0.3 million was recorded as income netted in loss from equity affiliates, representing the portion received from the equity interest. In accordance with the agreement, $0.7 million of the distribution relating to the 16.67% profits interest was used to pay down a portion of the $33 million debt. In addition, the $0.7 million will reduce the value of the Company's interest when exchanged for preferred and common operating partnership units at closing, thereby reducing the Company's future gain.
There were no new loans and investments originated during the quarter with equity participation interests.
Earnings Conference Call
Management will host a conference call today at 10:00 a.m. ET. A live webcast of the conference call will be available online at http://www.arborrealtytrust.com. Web participants are encouraged to go to Arbor's Web site at least 15 minutes prior to the start of the call to register, download and install any necessary audio software. Listening to the webcast requires speakers and RealPlayer(TM) software, downloadable without charge at www.real.com. Those without Web access should access the call telephonically at least ten minutes prior to the conference call. The dial-in numbers are (888) 396-2386 for domestic callers and (617) 847-8712 for international callers. The participant passcode for both is 39449616.
After the live webcast, the call will remain available on Arbor's Web site, http://www.arborrealtytrust.com through March 18, 2009. In addition, a telephonic replay of the call will be available until February 25, 2009. The replay dial-in number is (888) 286-8010 for domestic callers and (617) 801-6888 for international callers. Please use passcode: 33402153.
About Arbor Realty Trust, Inc.
Arbor Realty Trust, Inc. is a real estate investment trust, which invests in a diversified portfolio of multi-family and commercial real estate related bridge and mezzanine loans, preferred equity investments, mortgage related securities and other real estate related assets. Arbor commenced operations in July 2003 and conducts substantially all of its operations through its operating partnership, Arbor Realty Limited Partnership and its subsidiaries. Arbor is externally managed and advised by Arbor Commercial Mortgage, LLC, a national commercial real estate finance company operating through 11 offices in the US that specializes in debt and equity financing for multi-family and commercial real estate.
Safe Harbor Statement
Certain items in this press release may constitute forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Arbor can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from Arbor's expectations include, but are not limited to, continued ability
to source new investments, changes in interest rates and/or credit spreads, changes in the real estate markets, and other risks detailed in Arbor's Annual Report on Form 10-K for the year ended December 31, 2007 and its other reports filed with the SEC. Such forward-looking statements speak only as of the date of this press release. Arbor expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Arbor's expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.
Non-GAAP Financial Measures
During the quarterly earnings conference call, the Company may discuss non-GAAP financial measures as defined by SEC Regulation G. In addition, the Company has used non-GAAP financial measures in this press release. A supplemental schedule of each non-GAAP financial measure and the comparable GAAP financial measure can be found on pages 10 through 12 of this release.
(1) See attached supplemental schedule of non-GAAP financial measures on page 10-12
Contacts:
Arbor Realty Trust, Inc.
Paul Elenio, Chief Financial Officer
516-506-4422
pelenio@arbor.com
Media:
Bonnie Habyan, SVP of Marketing
516-506-4615
bhabyan@arbor.com
Investors:
Stephanie Carrington / Amy Glynn
The Ruth Group
646-536-7017
scarrington@theruthgroup.com
aglynn@theruthgroup.com
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENTS
Quarter Ended Year Ended
December 31, December 31,
------------ ------------
2008 2007 2008 2007
(Unaudited) (Unaudited) (Unaudited) (Audited)
Revenue:
Interest income $45,426,176 $62,251,615 $204,135,097 $273,984,357
Property operating
income 1,728,136 - 3,150,466 -
Other income 15,799 14,341 82,329 39,503
------ ------ ------ ------
Total revenue 47,170,111 62,265,956 207,367,892 274,023,860
---------- ---------- ----------- -----------
Expenses:
Interest expense 21,296,971 37,444,592 108,656,702 147,710,194
Employee
compensation and
benefits 1,539,815 2,565,009 8,110,003 9,381,055
Selling and
administrative 1,455,922 1,390,386 8,197,368 5,593,175
Property operating
expenses 1,595,307 - 2,980,901 -
Depreciation and
amortization 324,576 - 751,859 -
Other-than-temporary
impairment 4,826,674 - 17,573,980 -
Provision for loan
losses 124,000,000 2,500,000 132,000,000 2,500,000
Management fee -
related party 23,730 3,799,690 3,539,854 25,004,975
------ --------- --------- ----------
Total expenses 155,062,995 47,699,677 281,810,667 190,189,399
----------- ---------- ----------- -----------
(Loss) income
before (loss)
income from
equity affiliates,
minority interest
and provision
for income taxes (107,892,884) 14,566,279 (74,442,775) 83,834,461
(Loss) income from
equity affiliates (178,791) 5,407,997 (2,347,296) 34,573,594
-------- --------- ---------- ----------
(Loss) income
before minority
interest and
provision for
income taxes (108,071,675) 19,974,276 (76,790,071) 118,408,055
Income allocated
to minority
interest 166,852 2,829,172 4,439,773 16,989,177
------- --------- --------- ----------
(Loss) income
before provision
for income taxes (108,238,527) 17,145,104 (81,229,844) 101,418,878
Provision for
income taxes - 1,800,000 - 16,885,000
- --------- - ----------
Net (loss) income $(108,238,527) $15,345,104 $(81,229,844) $84,533,878
============= =========== ============ ===========
Basic (loss)
earnings per
common share $(4.30) $0.75 $(3.45) $4.44
====== ===== ====== =====
Diluted (loss)
earnings per
common share $(4.30) $0.75 $(3.45) $4.44
====== ===== ====== =====
Dividends declared
per common share $0.24 $0.62 $2.10 $2.46
===== ===== ===== =====
Weighted average
number of shares
of common stock
outstanding:
Basic 25,148,224 20,494,399 22,916,648 19,022,616
========== ========== ========== ==========
Diluted (a) 25,148,224 24,353,727 22,916,648 22,870,159
========== ========== ========== ==========
(a) For periods with a net loss, basic shares are used in accordance with
GAAP rules.
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULE OF NON-GAAP FINANCIAL MEASURES
(Unaudited)
Quarter Ended Year Ended
December 31, December 31,
------------ ------------
2008 2007 2008 2007
Total revenue,
GAAP basis $47,170,111 $62,265,956 $207,367,892 $274,023,860
Subtract:
Prime transaction (1,000,000) - (1,000,000) (11,143,801)
On the Avenue
transaction - - - (15,997,843)
450 West 33rd
Street
transaction - - - (10,425,579)
- - - -----------
Total revenue, as
adjusted $46,170,111 $62,265,956 $206,367,892 $236,456,637
=========== =========== ============ ============
Net (loss)
income, GAAP
basis $(108,238,527) $15,345,104 $(81,229,844) $84,533,878
Subtract:
Prime transaction (966,667) - (966,667) (10,189,375)
On the Avenue
transaction - - - (6,099,372)
Toy transaction - (2,284,588) - (11,627,219)
450 West 33rd
Street
transaction - - - (6,529,699)
Add:
Alpine Meadows
operations 894,289 - 3,062,794 -
Other-than-
temporary
impairment on
available-for-
sale
securities 3,439,174 - 16,186,480 -
Other-than-
temporary
impairment on
securities
held-to-
maturity 1,387,500 - 1,387,500 -
--------- - --------- -
Net (loss)
income, as
adjusted $(103,484,231) $13,060,516 $(61,559,737) $50,088,213
============= =========== ============ ===========
Diluted (loss)
earnings per
common share,
GAAP basis $(4.30) $0.75 $(3.45) $4.44
====== ===== ====== =====
Diluted (loss)
earnings per
common share, as
adjusted $(4.11) $0.64 $(2.59) $2.63
====== ===== ====== =====
Diluted weighted
average shares
outstanding 25,148,224 24,353,727 22,916,648 22,870,159
========== ========== ========== ==========
a.) Given the magnitude and/or nature of certain transactions and
operations, Arbor has elected to report adjusted revenues, net income
and earnings per share for the affected periods to help ensure the
comparability of the reporting periods. Management considers these
non-GAAP financial measures to be effective indicators, for both
management and investors, of Arbor's financial performance. Arbor's
management does not advocate that investors consider such non-GAAP
financial measures in isolation from, or as a substitute for,
financial information prepared in accordance with GAAP.
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULE OF NON-GAAP FINANCIAL MEASURES - Continued (Unaudited)
December 31, 2008
GAAP Stockholders' Equity $281,005,649
Add: 450 West 33rd Street transaction -
deferred revenue 77,123,133
Unrealized loss on derivative instruments 96,606,672
Subtract: 450 West 33rd Street transaction -
prepaid management fee (19,047,949)
-----------
Adjusted Stockholders' Equity $435,687,505
============
Adjusted book value per share $17.33
======
GAAP book value per share $11.18
======
Common shares outstanding 25,142,410
==========
b.) Given the magnitude and the deferral structure of the 450 West 33rd
Street transaction combined with the change in the fair value of
certain derivative instruments, Arbor has elected to report adjusted
book value per share for the affected period to currently reflect the
future impact of the 450 West 33rd Street transaction on the company's
financial condition as well as the evaluation of Arbor without the
effects of unrealized losses from certain of the Company's derivative
instruments. Management considers this non-GAAP financial measure to
be an effective indicator, for both management and investors, of
Arbor's financial performance. Arbor's management does not advocate
that investors consider this non-GAAP financial measure in isolation
from, or as a substitute for, financial information prepared in
accordance with GAAP.
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULE OF NON-GAAP FINANCIAL MEASURES - Continued
(Unaudited)
Quarter Ended Year Ended
December 31, December 31,
------------ ------------
2008 2007 2008 2007
Net (loss)
income, GAAP
basis $(108,238,527) $15,345,104 $(81,229,844) $84,533,878
Add:
Minority interest - 2,829,172 2,249,698 16,989,177
Depreciation -
real estate
owned 324,576 - 751,859 -
Depreciation -
investment in
equity
affiliates 225,154 - 1,193,507 -
------- - --------- -
Funds from
operations
("FFO") $(107,688,797) $18,174,276 $(77,034,780) $101,523,055
============= =========== ============ ============
Diluted FFO
per common
share $(4.28) $0.75 $(3.36) $4.44
====== ===== ====== =====
Diluted weighted
average shares
outstanding 25,148,224 24,353,727 22,916,648 22,870,159
========== ========== ========== ==========
c.) Arbor is presenting funds from operations, or FFO, because management
believes it to be an important supplemental measure of the Company's
operating performance in that it is frequently used by analysts,
investors and other parties in the evaluation of real estate
investment trusts (REITs). The Company also uses FFO for the
calculation of the incentive management fee payable to the Company's
manager, Arbor Commercial Mortgage, LLC. The revised White Paper on
FFO approved by the Board of Governors of the National Association of
Real Estate Investment Trusts, or NAREIT, in April 2002 defines FFO as
net income (loss) (computed in accordance with generally accepted
accounting principles (GAAP)), excluding gains (losses) from sales of
depreciated real properties, plus real estate related depreciation and
amortization and after adjustments for unconsolidated partnerships and
joint ventures. Arbor considers gains and losses on the sales of real
estate investments to be a normal part of our recurring operating
activities in accordance with GAAP and should not be excluded when
calculating FFO.
FFO is not intended to be an indication of our cash flow from
operating activities (determined in accordance with GAAP) or a measure
of our liquidity, nor is it entirely indicative of funding our cash
needs, including our ability to make cash distributions. Arbor's
calculation of FFO may be different from the calculation used by other
companies and, therefore, comparability may be limited.
ARBOR REALTY TRUST, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2008 2007
---- ----
(Unaudited) (Audited)
Assets:
Cash and cash equivalents $832,041 $22,219,541
Restricted cash 93,219,133 139,136,105
Loans and investments, net 2,181,683,619 2,592,093,930
Available-for-sale securities, at fair
value 529,104 15,696,743
Securities held-to-maturity, net 58,244,348 -
Investment in equity affiliates 29,310,953 29,590,190
Real estate owned, net 46,478,994 -
Due from related party 2,933,344 -
Prepaid management fee - related party 26,340,397 19,047,949
Other assets 139,664,556 83,709,076
----------- ----------
Total assets $2,579,236,489 $2,901,493,534
============== ==============
Liabilities and Stockholders' Equity:
Repurchase agreements $60,727,789 $244,937,929
Collateralized debt obligations 1,152,289,000 1,151,009,000
Junior subordinated notes to subsidiary
trust issuing preferred securities 276,055,000 276,055,000
Notes payable 518,435,437 596,160,338
Notes payable-related party 4,200,000 -
Mortgage note payable 41,440,000 -
Due to related party 993,192 2,429,109
Due to borrowers 32,330,603 18,265,906
Deferred revenue 77,123,133 77,123,133
Other liabilities 134,647,667 67,395,776
----------- ----------
Total liabilities 2,298,241,821 2,433,376,191
------------- -------------
Minority interest in operating
partnership - 72,854,258
Minority interest in consolidated entity (10,981) -
Stockholders' equity:
Preferred stock, $0.01 par value:
100,000,000 shares authorized; 0 shares
issued and outstanding
at December 31, 2008 and 3,776,069
shares issued and outstanding at
December 31, 2007 - 37,761
Common stock, $0.01 par value:
500,000,000 shares authorized;
25,421,810 shares issued, 25,142,410
shares outstanding at
December 31, 2008 and 20,798,735 shares
issued, 20,519,335 shares outstanding at
December 31, 2007 254,218 207,987
Additional paid-in capital 447,321,186 365,376,136
Treasury stock, at cost - 279,400 shares (7,023,361) (7,023,361)
(Accumulated deficit) retained earnings (62,939,722) 65,665,951
Accumulated other comprehensive loss (96,606,672) (29,001,389)
----------- -----------
Total stockholders' equity 281,005,649 395,263,085
----------- -----------
Total liabilities and stockholders'
equity $2,579,236,489 $2,901,493,534
============== ==============
Arbor Realty Trust, Inc.
Summary of Equity and Profit Interests
(all dollar amounts in thousands)
Unaudited
Initial Current
ART Cash Approximate
Investment Investment Equity Square
Name Amount Date Investment Profit % Footage
---- ------ ---- ---------- -------- -------
80 Evergreen $384 3Q03 $201 12.50% 77,680
930 Flushing 1,126 3Q03 291 12.50% 304,080
Prime Portfolio 2,100 4Q03 - 7.50% 6,700,000
Prime Portfolio - 16.67% (5) 6,700,000
450 W. 33rd St 1,500 4Q03 1,137 0.58% (1) 1,746,734
Toy Building 10,000 2Q05 5,720 10.00% 320,000
Homewood Mtn
Resort - 2Q06 - 25.60% 1,224 (3)
Richland
Terrace
Apartments - 3Q06 - 25.00% 342,152
Ashley Court
Apartments - 3Q06 - 25.00% 177,892
Nottingham
Village - 1Q07 - 25.00% 285,900
Extended Stay
Hotel
Portfolio 115,000 (6) 2Q07 115,000 16.17% 684 (4)
Alpine Meadows 13,220 3Q07 13,220 39.00% 2,163 (3)
St. John's
Development 500 4Q07 3,500 50.00% 23 (3)
Windrush
Village
Apartments - 2Q08 445 25.00% 221,726
Current Debt
Property Balance
Name Type Location on Property Comments
---- ---- -------- ----------- --------
80 Evergreen Warehouse Brooklyn, NY $5,000 Property
refinanced
June 2008
930 Flushing Warehouse Brooklyn, NY 24,657 Property
refinanced
July 2005
Prime Portfolio Retail Outlets Multi-state 1,200,700 Properties
refinanced
Prime Portfolio Retail Outlets Multi-state - All equity
returned to
investors
450 W. 33rd St Office New York City 517,000
Toy Building Conversion New York City 343,400 (2) Condo
conversion -
investment
held in
Taxable REIT
Subsidiary
("TRS")
Homewood
Mtn Resort Land Homewood, CA 114,157 Profits
interest
held in
TRS
Richland
Terrace
Apartments Multi Family Columbia, SC 9,094
Ashley Court
Apartments Multi Family Fort Wayne, IN 5,452
Nottingham
Village Multi Family Indianapolis, IN 6,626
Extended Stay
Hotel
Portfolio Hotel Multistate 7,400,000 Preferred
return of
12% on equity
Alpine
Meadows Land Alpine Meadows, CA 30,500 Preferred
return of
18% on equity
St. John's
Development Land Jacksonville, FL 25,000
Windrush
Village
Apartments Multi Family Tallahassee, FL 12,800
(1) Represents approximately 29% of the 2% retained interest in the
property. In addition, Arbor has approximately 29% of a 50% interest
in the property's air rights.
(2) Debt balance represents anticipated debt financing required to
complete condominium conversion project.
(3) Amount represents approximate acreage of property.
(4) Amount represents approximately 684 properties in 44 states and Canada
with approximately 76,000 rooms.
(5) The Company has agreed to transfer its 16.67% interest for preferred
and common operating partnership units of another REIT, which is
expected to occur on or prior to June 26, 2009. The Company currently
has $32.3 million in debt related to this transaction that is
collateralized by the Company's 16.67% interest in Prime.
(6) During the fourth quarter of 2008, the Company recorded a loan loss
reserve of $83.0 million reducing the outstanding balance to $29.6
million at December 31, 2008.
source: http://biz.yahoo.com/prnews/090218/ny72042.html?.v=1