What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2026-02-27 compared with 2025-02-21 · 42 added, 40 removed, 291 unchanged (22% of the section changed)

16 unchanged sentences

federal income tax purposes.

A REIT is generally not subject to federal income tax on its taxable income that is distributed to its stockholders;

A REIT is generally not subject to federal income tax on its REIT-taxable income that is distributed to its stockholders;

provided that at least 90% of its taxable income is distributed and provided that certain other requirements are met.

44 unchanged sentences

SFR Portfolio Financing.

We offer various financing products to borrowers who are looking to acquire conventional, workforce and affordable single-family rental housing.

We offer various financing products to borrowers who are looking to develop, acquire or refinance conventional, workforce and affordable single-family rental housing.

These borrowers are usually looking to purchase properties to hold for the long-term with permanent financing or acquire investments to develop with bridge, build-to-rent or line of credit financing options.

Construction Financing.

We offer construction lending through our Arbor Private Construction program, offering multifamily investors short-term floating-rate financing for new and construction-ready multifamily projects for experienced sponsors and projects located in major metropolitan areas.

We serve as a financing partner throughout the construction and ownership life cycle of loans which are underwritten to an Agency-qualifying loan exit, which facilitates a smooth transition to permanent financing through our GSE and

HUD lending platform.

Our construction lending also complements our SFR lending program by expanding our ability to support borrowers across both multifamily and single-family rental housing strategies.

Mezzanine Financing.

1 unchanged sentence

Mezzanine financing may take the form of loans secured by pledges of ownership interests in entities that directly or indirectly control the real property or subordinated loans secured by second mortgage liens on the property.

We may also require additional security such as personal guarantees, letters of credit

and/or additional collateral unrelated to the property.

We may also require additional security such as personal guarantees, letters of credit and/or additional collateral unrelated to the property.

Similar to our bridge loans, the yield on these investments may be enhanced by prepaid and deferred interest payments, yield look-backs and participating interests.

37 unchanged sentences

Single‑Family Rental 298 3,184,910 7.88 % 12.8

Land 8 125,877 0.88 % 0.3

Office 1 33,410 1.01 % 30.0

4 unchanged sentences

65 290,212 7.84 % 52.3

Construction Multifamily 9 249,019 9.13 % 24.6

Preferred Equity Multifamily 32 198,127 7.01 % 46.8

1 unchanged sentence

34 202,118 6.87 % 46.0

Construction Multifamily 2 4,367 9.97 % 20.8

Other Single‑Family Rental 1 3,082 9.36 % 10.3

Total 632 $ 12,113,107 6.49 % 14.7

1 unchanged sentence

(1) “Weighted Average Pay Rate” is a weighted average, based on the unpaid principal balance (“UPB”) of each loan in our portfolio, of the interest rate required to be paid as stated in the individual loan agreements.

Certain loans and investments that require an additional rate of interest “accrual rate” to be paid at maturity are not included in the weighted average pay rate as shown in the table.

Certain loans and investments that require an accrual rate to be paid at maturity are not included in the weighted average pay rate as shown in the table.

Including certain fees earned and costs associated with the structured portfolio, the weighted average current interest rate was 7.08%.

5 unchanged sentences

Single-Family Rental 3,184,910 26 % Florida 2,094,006 17 %

Land 138,710 1 % Georgia 1,083,580 10 %

Office 35,410 <1 % North Carolina 549,682 5 %

Other 21,220 <1 % New York 538,721 5 %

Office 33,410 <1 % Arizona 982,786 8 %

Land 2,291 <1 % New York 962,795 8 %

Other 18,655 <1 % Georgia 892,794 7 %

Total $ 12,113,107 100 % Other (1) 4,371,892 37 %

5 unchanged sentences

At December 31, 2025, our loan and investment portfolio was comprised of 90% floating rate loans and 10% fixed rate loans.

We also own unconsolidated investments in equity affiliates totaling $76.3 million and described in more detail in Note 8.

We also hold interests in unconsolidated investments in equity affiliates totaling $58.0 million, which are described in Note 8.

Agency Business Lending and Servicing Overview

1 unchanged sentence

Loans originated under GSE and HUD programs, as well as our SFR-fixed rate product, are generally sold within 60 days from the loan origination date.

Our Private Label loans are either sold instantaneously or pooled and securitized, or sold, generally within 180 days of loan origination.

Our Private Label loans are either sold instantaneously or pooled and securitized, or sold, generally within 180 days

of loan origination.

Our loan activity in 2025 was comprised of originations totaling $5.07 billion, sales totaling $5.10 billion and commitment volume totaling $5.10 billion.

5 unchanged sentences

Product Concentrations Geographic Concentrations

Count UPB (1) %

Count UPB (1) % of

Servicing Fee Rate

1 unchanged sentence

(years) State UPB %

Fannie Mae 2,644 $ 22,730,056 67 % 46.4 6.4 Texas 11 %

Freddie Mac 1,159 6,077,020 18 % 21.5 6.8 New York 11 %

Private Label 161 2,605,980 8 % 18.7 5.5 California 8 %

FHA 106 1,506,948 5 % 14.1 19.2 North Carolina 7 %

Bridge (2) 3 278,494 1 % 10.4 3.0 Georgia 6 %

SFR - Fixed Rate 52 271,859 1 % 20.1 4.4 Florida 6 %

Fannie Mae 2,702 $ 24,085,960 66 % 44.7 5.5 New York 13 %

Freddie Mac 1,109 7,455,088 21 % 18.3 5.9 Texas 10 %

Private Label 159 2,558,048 7 % 18.7 4.5 North Carolina 8 %

FHA 107 1,549,483 4 % 13.9 19.1 California 7 %

Bridge (2) 3 277,738 1 % 10.4 2.2 Florida 7 %

SFR - Fixed Rate 51 277,490 1 % 20.0 4.0 Georgia 5 %

Total 4,131 $ 36,203,807 100 % 35.6 6.1 New Jersey 5 %

5 unchanged sentences

The following describes our lending and investment process for both our Structured and Agency Businesses.

We have a network of sales and support offices in California, Florida, Indiana, Maryland, Massachusetts, Michigan, New Jersey, New York, and Texas that staff 26 loan originators who solicit property owners, developers, and mortgage loan brokers.

We have a network of sales and support offices in California, Florida, Georgia, Indiana, Maryland, Massachusetts, New Jersey, New York, Ohio, Oklahoma, Pennsylvania and Texas that staff 24 loan originators who solicit property owners, developers, and mortgage loan brokers.

In some instances, the originators accept loan applications which meet our underwriting criteria from a select group of mortgage loan brokers.

48 unchanged sentences

Effective asset and portfolio management is essential to maximize the performance and value of a real estate investment.

The asset management group customizes a plan with the loan originators and underwriters to track each investment from origination through disposition.

The asset management group customizes a plan with the loan originators and underwriters to track each investment from origination through repayment or other disposition.

This group monitors each investment’s operating history, local economic trends and rental and occupancy rates and evaluates the underlying property’s competitiveness within its market.

This group assesses ongoing and potential operational and

financial performance of each investment in order to evaluate and ultimately improve its operations and financial viability.

This group assesses ongoing and potential operational and financial performance of each investment in order to evaluate and ultimately improve its operations and financial viability.

The asset management group performs frequent onsite inspections, conducts meetings with borrowers and evaluates and participates in the budgeting process, financial and operational review and renovation plans of each underlying property.

This group also focuses on increasing the productivity of onsite property managers and leasing brokers.

This group also

focuses on increasing the productivity of onsite property managers and leasing brokers.

This group communicates the status of each transaction against its established asset management plan to senior management, in order to enhance and preserve capital, as well as to avoid litigation and potential exposure.

20 unchanged sentences

We minimize our interest rate risk from borrowings by attempting to structure the key terms of our borrowings to generally correspond to the interest rate terms of our assets.

We enter into hedging transactions to protect our investment portfolio from interest rate and credit risk exposures.

These transactions may include over-the-counter treasury futures, interest rate and credit default swaps, the purchase or sale of interest rate collars, caps or floors, options, mortgage derivatives and other hedging instruments.

These instruments may be used to hedge as much of the interest rate risk we determine is in the best interest of our stockholders, given the cost of such hedges and the need to maintain our status as a REIT.

In general, income from hedging transactions does not constitute qualifying income for purposes of the REIT gross income requirements.

To the extent, however, that a hedging contract reduces interest rate risk on indebtedness incurred to acquire or carry real estate assets, any income that is derived from the hedging contract would not give rise to non-qualifying income for purposes of the 75% or 95% gross income tests.

We may elect to bear a level of interest rate risk that could otherwise be hedged when we believe, based on all relevant facts, that bearing such risk is worthwhile.

We may enter into derivative financial instruments to protect our investment portfolio from interest rate and credit risk exposures.

These transactions typically include over-the-counter treasury futures, interest rate and credit default swaps, the purchase or sale of interest rate collars, caps or floors, options, mortgage derivatives and other instruments.

These instruments may be used to manage as much of the interest rate risk we determine is in the best interest of our stockholders, given the cost of such instruments and the need to maintain our status as a REIT.

In general, income from these transactions does not constitute qualifying income for purposes of the REIT gross income requirements.

To the extent, however, that a derivative instrument reduces interest rate risk on indebtedness incurred to acquire or carry real estate assets, any income that is derived from the derivative instrument would not give rise to non-qualifying income for purposes of the 75% or 95% gross income tests.

We may elect to bear a level of interest rate risk that could otherwise be mitigated when we believe, based on all relevant facts, that bearing such risk is worthwhile.

Disposition Policies.

2 unchanged sentences

Equity Capital Policies.

instruments, in any manner and on the terms and for the consideration it deems appropriate, including in exchange for property.

Subject to applicable law, our Board of Directors have the authority, without further stockholder approval, to issue additional previously authorized common stock and preferred stock or otherwise raise capital, including through the issuance of debt instruments, in any manner and on the terms and for the consideration it deems appropriate, including in exchange for property.

We may in the future issue common stock or units of partnership interest in our operating partnership in connection with acquisitions.

We may, under certain circumstances, repurchase our common stock in private transactions with our stockholders, if those purchases are approved by our Board of Directors.

under certain circumstances, repurchase our common stock in private transactions with our stockholders, if those purchases are approved by our Board of Directors.

Conflicts of Interest Policies.

2 unchanged sentences

Our chairman and chief executive officer also serves as the chief executive officer of ACM, beneficially owns approximately 35% of the outstanding membership interests of ACM and controls all voting interests in ACM.

One of our directors is the chief operating officer of Arbor Management, LLC (the managing member of ACM) and a trustee of two trusts that own noncontrolling membership interests in ACM.

In addition, our chief financial officer, our treasurer and some of our counsel also perform similar roles for ACM, and another of our executive officers’ acts as the general counsel of ACM.

Our chief executive officer, one of our directors and certain aforementioned executive officers are members of ACM’s executive committee and, excluding our chief executive officer, own minority membership interests in ACM.

One of our directors is an executive officer of ours, the chief operating officer of Arbor Management, LLC (the managing member of ACM), the treasurer for ACM and a trustee of two trusts that own noncontrolling membership interests in ACM.

In addition, our chief financial officer and some of our counsel also perform similar roles for ACM, and another of our executive officers’ acts as the general counsel of ACM.

Our chief executive officer and certain aforementioned executive officers are members of ACM’s executive committee and, excluding our chief executive officer, own minority membership interests in ACM.

We have implemented several policies, through board action and through the terms of our charter and our agreements with ACM, to help address these conflicts of interest, including the following:

21 unchanged sentences

Certain environmental laws also impose liability in connection with the handling of or exposure to materials containing asbestos.

These laws allow third parties to seek recovery from owners of real

properties for personal injuries associated with materials containing asbestos.

Our operating costs and the values of these assets may be adversely affected by the obligation to pay for the cost of complying with existing environmental laws, ordinances, and regulations, as well as the cost of complying with future legislation, and our income and ability to make distributions to our stockholders could be affected adversely by the existence of an environmental liability with respect to properties we may acquire.

These laws allow third parties to seek recovery from owners of real properties for personal injuries associated with materials containing asbestos.

Our operating costs and the values of these assets may be adversely affected by the obligation to pay for the cost of complying with existing environmental laws, ordinances, and regulations, as

well as the cost of complying with future legislation, and our income and ability to make distributions to our stockholders could be affected adversely by the existence of an environmental liability with respect to properties we may acquire.

We endeavor to ensure these properties are complying in all material respects with all federal, state and local laws, ordinances and regulations regarding hazardous or toxic substances or petroleum products.

32 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business