What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-07-31 compared with 2026-05-08 · 610 added, 413 removed, 1298 unchanged (44% of the section changed)

4 unchanged sentences

($ in thousands, except share and per share data)

March 31, 2026

June 30, 2026

(Unaudited) December 31, 2025

9 unchanged sentences

Real estate owned, net 545,946 498,938

Due from related party 35,251 6,534

Goodwill and other intangible assets 85,770 86,553

7 unchanged sentences

Notes payable - real estate owned 270,410 222,965

Due to related party 1,758 501

Due to borrowers 27,562 33,451

22 unchanged sentences

Our consolidated balance sheets include assets and liabilities of consolidated variable interest entities ("VIEs,") as we are the primary beneficiary of these VIEs.

At March 31, 2026 and December 31, 2025, assets of our consolidated VIEs totaled $ 5,170,870 and $ 4,662,021 , respectively, and the liabilities of our consolidated VIEs totaled $ 3,941,156 and $ 3,477,848 , respectively.

At June 30, 2026 and December 31, 2025, assets of our consolidated VIEs totaled $ 3,790,046 and $ 4,662,021 , respectively, and the liabilities of our consolidated VIEs totaled $ 2,978,886 and $ 3,477,848 , respectively.

See Note 15 for discussion of our VIEs.

2 unchanged sentences

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

($ in thousands, except share and per share data)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Interest income $ 230,858 $ 240,303 $ 465,905 $ 480,997

6 unchanged sentences

Property operating income 8,313 5,452 16,373 9,839

(Loss) gain on derivative instruments, net ( 493 ) 3,400

Gain on derivative instruments, net 1,041 219 548 3,619

Other income, net 2,260 3,989 4,336 8,407

9 unchanged sentences

Total other expenses 144,848 91,909 251,406 172,337

Income before extinguishment of debt, loss on real estate, income (loss) from equity affiliates and income taxes 10,833 53,736

(Loss) income before extinguishment of debt, gain (loss) on real estate, income from equity affiliates and income taxes ( 28,972 ) 38,501 ( 18,137 ) 92,236

Loss on extinguishment of debt — — — ( 2,319 )

Loss on real estate ( 2,136 ) ( 2,810 )

Income (loss) from equity affiliates 4,411 ( 1,634 )

Gain (loss) on real estate 64 ( 1,448 ) ( 2,073 ) ( 4,258 )

Income from equity affiliates 1,893 2,654 6,304 1,020

Provision for income taxes ( 3,150 ) ( 3,398 ) ( 5,235 ) ( 6,989 )

Net income 11,023 43,382

Net (loss) income ( 30,165 ) 36,309 ( 19,141 ) 79,690

Preferred stock dividends 10,342 10,342 20,684 20,684

Net income attributable to noncontrolling interest 52 2,602

Net income attributable to common stockholders $ 629 $ 30,438

Basic earnings per common share $ 0.00 $ 0.16

Diluted earnings per common share $ 0.00 $ 0.16

Net (loss) income attributable to noncontrolling interest ( 3,165 ) 2,015 ( 3,112 ) 4,617

Net (loss) income attributable to common stockholders $ ( 37,342 ) $ 23,952 $ ( 36,713 ) $ 54,389

Basic (loss) earnings per common share $ ( 0.20 ) $ 0.12 $ ( 0.19 ) $ 0.28

Diluted (loss) earnings per common share $ ( 0.20 ) $ 0.12 $ ( 0.19 ) $ 0.28

Weighted average shares outstanding:

7 unchanged sentences

($ in thousands, except shares)

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Shares Preferred

7 unchanged sentences

Interest Total Equity

Balance – April 1, 2026 42,462,218 $ 633,683 192,370,465 $ 1,924 $ 2,428,500 $ ( 194,058 ) $ 2,870,049 $ 109,001 $ 2,979,050

Repurchase - common stock — — ( 3,550,691 ) ( 36 ) ( 20,814 ) — ( 20,850 ) — ( 20,850 )

Stock-based compensation, net — — 161,983 2 1,853 — 1,855 — 1,855

Distributions - common stock — — — — — ( 32,442 ) ( 32,442 ) — ( 32,442 )

Distributions - preferred stock — — — — — ( 13,677 ) ( 13,677 ) — ( 13,677 )

Distributions - noncontrolling interest — — — — — — — ( 2,748 ) ( 2,748 )

Net loss — — — — — ( 27,000 ) ( 27,000 ) ( 3,165 ) ( 30,165 )

Balance – June 30, 2026 42,462,218 $ 633,683 188,981,757 $ 1,890 $ 2,409,539 $ ( 267,177 ) $ 2,777,935 $ 103,088 $ 2,881,023

Six Months Ended June 30, 2026

Balance – January 1, 2026 42,461,858 $ 633,683 195,491,855 $ 1,955 $ 2,454,312 $ ( 136,597 ) $ 2,953,353 $ 113,800 $ 3,067,153

4 unchanged sentences

Distributions - noncontrolling interest — — — — — — — ( 7,600 ) ( 7,600 )

Redemption of operating partnership units 360 — — — — — — — —

Redemption of OP Units 360 — — — — — — — —

Net loss — — — — — ( 16,029 ) ( 16,029 ) ( 3,112 ) ( 19,141 )

Balance – June 30, 2026 42,462,218 $ 633,683 188,981,757 $ 1,890 $ 2,409,539 $ ( 267,177 ) $ 2,777,935 $ 103,088 $ 2,881,023

Three Months Ended June 30, 2025

Shares Preferred

Shares Common

Par Value Additional

Capital (Accumulated

Earnings Total Arbor

Realty Trust, Inc.

Stockholders’

Equity Noncontrolling

Interest Total Equity

Balance – April 1, 2025 42,465,761 $ 633,682 192,161,707 $ 1,922 $ 2,410,499 $ ( 38,600 ) $ 3,007,503 $ 121,956 $ 3,129,459

Issuance - common stock — — 145,000 — 1,591 — 1,591 — 1,591

Stock-based compensation, net — — ( 5,293 ) — ( 429 ) — ( 429 ) — ( 429 )

Distributions - common stock — — — — — ( 57,870 ) ( 57,870 ) — ( 57,870 )

Distributions - preferred stock — — — — — ( 10,345 ) ( 10,345 ) — ( 10,345 )

Distributions - noncontrolling interest — — — — — — — ( 4,852 ) ( 4,852 )

Net income — — — — — 34,294 34,294 2,015 36,309

Balance – March 31, 2026 42,462,218 $ 633,683 192,370,465 $ 1,924 $ 2,428,500 $ ( 194,058 ) $ 2,870,049 $ 109,001 $ 2,979,050

Three Months Ended March 31, 2025

Balance – June 30, 2025 42,465,761 $ 633,682 192,301,414 $ 1,922 $ 2,411,661 $ ( 72,521 ) $ 2,974,744 $ 119,119 $ 3,093,863

Six Months Ended June 30, 2025

Balance – January 1, 2025 42,585,589 $ 633,684 189,259,435 $ 1,893 $ 2,375,469 $ 13,039 $ 3,024,085 $ 127,885 $ 3,151,970

4 unchanged sentences

Distributions - noncontrolling interest — — — — — — — ( 11,808 ) ( 11,808 )

Redemption of operating partnership units ( 119,828 ) ( 2 ) — — — — ( 2 ) ( 1,575 ) ( 1,577 )

Redemption of OP Units ( 119,828 ) ( 2 ) — — — — ( 2 ) ( 1,575 ) ( 1,577 )

Net income — — — — — 75,073 75,073 4,617 79,690

Balance – March 31, 2025 42,465,761 $ 633,682 192,161,707 $ 1,922 $ 2,410,499 $ ( 38,600 ) $ 3,007,503 $ 121,956 $ 3,129,459

Balance – June 30, 2025 42,465,761 $ 633,682 192,301,414 $ 1,922 $ 2,411,661 $ ( 72,521 ) $ 2,974,744 $ 119,119 $ 3,093,863

See Notes to Consolidated Financial Statements.

3 unchanged sentences

(in thousands)

Three Months Ended March 31,

Six Months Ended June 30,

Operating activities:

Net income $ 11,023 $ 43,382

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

Net (loss) income $ ( 19,141 ) $ 79,690

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

Depreciation and amortization 13,033 9,592

11 unchanged sentences

Deferred tax benefit ( 4,791 ) ( 1,741 )

(Income) loss from equity affiliates ( 4,411 ) 1,634

Income from equity affiliates ( 6,304 ) ( 1,020 )

Distributions from operations of equity affiliates 9,104 4,138

2 unchanged sentences

Change in fair value of held-for-sale loans 412 ( 2,788 )

Loss (gain) on derivative instruments, net 493 ( 3,400 )

Gain on derivative instruments, net ( 548 ) ( 3,619 )

Loss on real estate 2,073 4,258

Changes in operating assets and liabilities 379 ( 28,734 )

Net cash (used in) provided by operating activities ( 8,274 ) 150,548

Net cash provided by operating activities 149,972 210,597

Investing Activities:

7 unchanged sentences

Change in due to borrowers and reserves ( 100 ) ( 3,224 )

Net cash provided by (used in) investing activities 58,344 ( 314,818 )

Net cash used in investing activities ( 128,387 ) ( 522,125 )

Financing activities:

3 unchanged sentences

Payoffs and paydowns of securitized debt ( 1,312,080 ) ( 1,599,961 )

Payoffs and paydowns of senior unsecured notes ( 175,000 ) —

Proceeds from notes payable - REO 41,736 177,534

1 unchanged sentence

Proceeds from issuance of common stock — 30,801

Repurchase of common stock ( 51,583 ) —

Redemption of operating partnership units — ( 1,577 )

Payments of withholding taxes on net settlement of vested stock ( 2,344 ) ( 3,125 )

Repurchase of common stock ( 30,733 ) —

Distributions to stockholders and noncontrolling interest ( 118,819 ) ( 172,441 )

Payment of deferred financing costs ( 12,141 ) ( 18,560 )

Net cash provided by (used in) financing activities 200,363 ( 146,504 )

Net increase (decrease) in cash, cash equivalents and restricted cash 250,433 ( 310,774 )

Net cash used in financing activities ( 145,900 ) ( 1,965 )

Net decrease in cash, cash equivalents and restricted cash ( 124,315 ) ( 313,493 )

Cash, cash equivalents and restricted cash at beginning of period 550,222 660,179

5 unchanged sentences

(in thousands)

Three Months Ended March 31,

Six Months Ended June 30,

Reconciliation of cash, cash equivalents and restricted cash:

58 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

the interest rate environment, capital market conditions, property values, geopolitical events and tariff developments, both globally, and to our business, makes any estimate or assumption at March 31, 2026 inherently less certain.

Significant Accounting Policies

1 unchanged sentence

There have been no significant changes to our significant accounting policies since December 31, 2025.

Reclassification

Certain prior period amounts have been reclassified to conform to the current period presentation.

Amounts previously presented separately as due from related party and due to related party are now included within other assets and other liabilities, respectively.

As of December 31, 2025, the reclassification increased other assets by $ 6.5 million and increased other liabilities by $ 0.5 million.

The reclassification had no impact on total assets, total liabilities, shareholders' equity, net income (loss) or cash flows.

Note 3 — Loans and Investments

Our Structured Business loan and investment portfolio consists of ($ in thousands):

March 31, 2026 Percent of

June 30, 2026 Percent of

Pay Rate (1) Wtd.

22 unchanged sentences

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.

(2) Including extension options, the weighted average remaining months to maturity at March 31, 2026 and December 31, 2025 was 20.8 and 19.9, respectively.

(3) The “First Dollar Loan-to-Value (“LTV”) Ratio” is calculated by comparing the total of our senior most dollar and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will absorb a total loss of our position.

(4) The “Last Dollar LTV Ratio” is calculated by comparing the total of the carrying value of our loan and all senior lien positions within the capital stack to the fair value of the underlying collateral to determine the point at which we will initially absorb a loss.

(5) At March 31, 2026 and December 31, 2025, bridge loans included 224 and 298 , respectively, of SFR loans with a total gross loan commitment of $ 4.62 billion and $ 4.73 billion, respectively, of which $ 3.27 billion and $ 3.18 billion, respectively, was funded.

(6) Excludes exit fee receivables of $ 40.6 million and $ 43.0 million at March 31, 2026 and December 31, 2025, respectively, which is included in other assets on the consolidated balance sheets.

(2) Including extension options, the weighted average remaining months to maturity at June 30, 2026 and December 31, 2025 was 21.5 and 19.9, respectively.

(3) The “First Dollar Loan-to-Value (“LTV”) Ratio” is calculated by comparing the total of all senior lien positions ahead of our loan or investment within the capital stack to the fair value of the underlying collateral to determine the point at which we will absorb a total loss of our position.

If we own the senior most position within the capital stack, the First Dollar LTV Ratio is 0 %.

(4) The “Last Dollar LTV Ratio” is calculated by comparing the total of the carrying value of our loan or investment and all senior lien positions ahead of our loan or investment within the capital stack to the fair value of the underlying collateral to determine the point at which we will initially begin to absorb a loss.

ARBOR REALTY TRUST, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(5) At June 30, 2026 and December 31, 2025, bridge loans included 176 and 298 , respectively, of SFR loans with a total gross loan commitment of $ 4.53 billion and $ 4.73 billion, respectively, of which $ 3.38 billion and $ 3.18 billion, respectively, was funded.

(6) Excludes exit fee receivables of $ 41.5 million and $ 43.0 million at June 30, 2026 and December 31, 2025, respectively, which is included in other assets on the consolidated balance sheets.

Concentration of Credit Risk

We are subject to concentration risk in that, at March 31, 2026, the UPB related to 33 loans with five different borrowers represented 8 % of total assets.

We are subject to concentration risk in that, at June 30, 2026, the UPB related to 33 loans with five different borrowers represented 8 % of total assets.

At December 31, 2025, the UPB related to 65 loans with five different borrowers represented 9 % of total assets.

During both the three months ended March 31, 2026 and the year ended December 31, 2025, no single loan or investment represented more than 10% of our total assets and no single investor group generated over 10% of our revenue.

During both the three and six months ended June 30, 2026 and the year ended December 31, 2025, no single loan or investment represented more than 10% of our total assets and no single investor group generated over 10% of our revenue.

See Note 18 for details on our concentration of related party loans and investments.

13 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class at March 31, 2026, and charge-offs recorded for the three months ended March 31, 2026 is as follows ($ in thousands):

A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class at June 30, 2026, and charge-offs recorded for the six months ended June 30, 2026 is as follows ($ in thousands):

UPB by Origination Year Total Wtd.

63 unchanged sentences

Grand Total $ 2,963,166 $ 1,766,551 $ 908,608 $ 3,127,360 $ 2,998,638 $ 348,784 $ 12,113,107 2 % 77 %

Charge-offs $ — $ 3,000 $ — $ 24,476 $ 31,968 $ 68,893 $ 128,337

Charge-offs, net $ — $ 3,000 $ — $ 24,476 $ 31,968 $ 68,893 $ 128,337

Geographic Concentration Risk

At March 31, 2026 and December 31, 2025, underlying properties in Texas and Florida represented 23 % and 17 %, respectively, of the outstanding balance of our loan and investment portfolio.

At June 30, 2026, underlying properties in Texas and Florida represented 23 % and 18 %, respectively, and at December 31, 2025, underlying properties in Texas and Florida represented 23 % and 17 %, respectively, of the outstanding balance of our loan and investment portfolio.

No other states represented 10% or more of the total loan and investment portfolio.

4 unchanged sentences

A summary of the changes in the allowance for credit losses is as follows ($ in thousands):

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

Multifamily Single-Family Rental Retail Commercial Office Land Total

4 unchanged sentences

Ending balance $ 149,024 $ 9,535 $ 2,903 $ 1,700 $ 269 $ — $ 163,431

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Allowance for credit losses:

1 unchanged sentence

Provision for credit losses (net of reversals) 16,552 788 — — ( 46 ) 190 17,484

Charge-offs (1) ( 15,143 ) — — — — — ( 15,143 )

Ending balance $ 152,320 $ 7,312 $ 3,293 $ 1,700 $ 463 $ 78,190 $ 243,278

Six Months Ended June 30, 2026

Allowance for credit losses:

Beginning balance $ 131,924 $ 8,817 $ 2,903 $ 1,700 $ 251 $ 376 $ 145,971

Provision for credit losses (net of reversals) 42,689 718 — — 18 ( 376 ) 43,049

Charge-offs (1) ( 25,589 ) — — — — — ( 25,589 )

Ending balance $ 149,024 $ 9,535 $ 2,903 $ 1,700 $ 269 $ — $ 163,431

Six Months Ended June 30, 2025

Allowance for credit losses:

Beginning balance $ 148,139 $ 7,524 $ 3,293 $ 1,700 $ 181 $ 78,130 $ 238,967

Provision for credit losses (net of reversals) 23,324 ( 212 ) — — 282 60 23,454

Recoveries ( 406 ) — — — — — ( 406 )

Charge-offs, net (1) ( 3,594 ) — — — — — ( 3,594 )

Charge-offs (1) ( 18,737 ) — — — — — ( 18,737 )

Ending balance $ 152,320 $ 7,312 $ 3,293 $ 1,700 $ 463 $ 78,190 $ 243,278

________________________

(1) Represents the allowance for credit losses on a bridge loan and a mezzanine loan that were charged-off in connection with the foreclosure of the underlying collateral as REO assets at fair value.

The provision for credit losses during the three months ended March 31, 2026 was primarily attributable to specifically impaired multifamily loans and losses recorded on the foreclosure and sale of a REO asset, partially offset by improved outlook of the macroeconomic commercial real estate market.

(1) Includes specific reserves that were charged-off in connection with the foreclosure of the underlying collateral as real estate owned ("REO") assets at fair value of $ 6.0 million during both the three and six months ended June 30, 2026, and $ 4.4 million and $ 8.4 million during the three and six months ended June 30, 2025, respectively.

The provision for credit losses during the three and six months ended June 30, 2026 was primarily attributable to specifically impaired multifamily loans and a softer macroeconomic outlook of the commercial real estate market.

Our estimate of allowance for credit losses on our structured portfolio, including related unfunded loan commitments, was based on a reasonable and supportable forecast period that reflects recent observable data, including price indices for commercial real estate, unemployment rates, and interest rates.

1 unchanged sentence

Estimates of current expected credit losses (“CECL”) for unfunded loan commitments are adjusted quarterly and correspond with the associated outstanding loans.

At March 31, 2026 and December 31, 2025, we had outstanding unfunded commitments of $ 1.79 billion and $ 1.92 billion, respectively, that we are obligated to fund as borrowers meet certain requirements.

At June 30, 2026 and December 31, 2025, we had outstanding unfunded commitments of $ 1.53 billion and $ 1.92 billion, respectively, that we are obligated to fund as borrowers meet certain requirements.

The outstanding unfunded commitments are predominantly related to our SFR build-to-rent ("BTR") business.

At March 31, 2026 and December 31, 2025, accrued interest receivable related to our loans totaling $ 165.3 million and $ 165.7 million, respectively, was excluded from the estimate of credit losses, is subject to our revenue recognition policy, and is included in other assets on the consolidated balance sheets.

ARBOR REALTY TRUST, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

At June 30, 2026 and December 31, 2025, accrued interest receivable related to our loans totaling $ 156.4 million and $ 165.7 million, respectively, was excluded from the estimate of credit losses, is subject to our revenue recognition policy, and is included in other assets on the consolidated balance sheets.

All of our structured loans and investments are secured by real estate assets or by interests in real estate assets, and, as such, the measurement of credit losses may be based on the difference between the fair value of the underlying collateral and the carrying value of the assets as of the period end.

A summary of our specific reserve loans considered impaired by asset class is as follows ($ in thousands):

March 31, 2026

June 30, 2026

Asset Class UPB (1) Carrying

13 unchanged sentences

________________________

(1) Represents the UPB of 17 and 20 impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at March 31, 2026 and December 31, 2025, respectively.

(1) Represents the UPB of 19 and 20 impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at June 30, 2026 and December 31, 2025, respectively.

Non-performing Loans

2 unchanged sentences

Full income recognition will resume when the loan becomes contractually current, and performance has recommenced.

At March 31, 2026, 19 loans with an aggregate net carrying value of $ 460.0 million, net of related loan loss reserves of $ 16.1 million, were classified as non-performing and, at December 31, 2025, 26 loans with an aggregate net carrying value of $ 545.0 million, net of related loan loss reserves of $ 10.2 million, were classified as non-performing.

At June 30, 2026, 19 loans with an aggregate net carrying value of $ 396.4 million, net of related loan loss reserves of $ 31.1 million, were classified as non-performing and, at December 31, 2025, 26 loans with an aggregate net carrying value of $ 545.0 million, net of related loan loss reserves of $ 10.2 million, were classified as non-performing.

A summary of our non-performing loans by asset class is as follows ($ in thousands):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

UPB Carrying Value UPB Carrying Value

3 unchanged sentences

Total $ 428,845 $ 427,503 $ 569,137 $ 555,247

At March 31, 2026 and December 31, 2025, we had loans with a UPB of $ 20.8 million and $ 237.0 million, respectively, and accrued interest of $ 0.2 million and $ 6.6 million, respectively, that were greater than 60 days past due and classified as performing loans.

All past due payments on these loans have been subsequently collected.

At June 30, 2026 and December 31, 2025, we had loans with a UPB of $ 91.2 million and $ 237.0 million, respectively, and accrued interest of $ 1.9 million and $ 6.6 million, respectively, that were greater than 60 days past due and classified as performing loans.

All past due payments on these loans have been subsequently collected, except for a loan that was greater than 60 days past due at June 30, 2026 with a UPB of $ 58.6 million and accrued interest of $ 1.6 million.

We are currently in the process of modifying that loan and expect to collect the accrued interest in August 2026.

Other Non-accrual Loans

1 unchanged sentence

Therefore, for loans that are 60 days past due or less, if we have determined there is reasonable doubt about collectability of all principal and interest, we classify those loans as non-accrual and recognize interest income only when cash is received.

The table below is a summary of those loans that are 60 days past due or less that we have classified as non-accrual, and changes to those loans for the periods presented ($ in thousands).

The table below is

ARBOR REALTY TRUST, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Three Months Ended March 31, 2026

Beginning balance ( 3 multifamily bridge loans)

a summary of those loans that are 60 days past due or less that we have classified as non-accrual, and changes to those loans for the periods presented ($ in thousands).

Three Months Ended June 30, 2026 Six Months Ended June 30, 2026

Beginning balance ( 0 and 3 multifamily bridge loans)

Loans that progressed to greater than 60 days past due — ( 1,221 )

Loans modified or paid off — ( 47,090 )

Ending balance $ —

Three Months Ended March 31, 2025

Beginning balance ( 9 multifamily bridge loans)

Additional loans classified as non-accrual 94,920 94,920

Ending balance ( 3 multifamily bridge loans)

$ 94,920 $ 94,920

Three Months Ended June 30, 2025 Six Months Ended June 30, 2025

Beginning balance ( 5 and 9 multifamily bridge loans)

$ 142,823 $ 167,428

Loans that progressed to greater than 60 days past due — ( 82,290 )

Loans modified or paid off ( 47,675 ) ( 86,165 )

Loans transferred to REO ( 48,500 ) ( 48,500 )

Additional loans classified as non-accrual 10,264 106,439

Ending balance ( 3 multifamily bridge loans)

At March 31, 2025, there were two loans included in the table above with a UPB of $ 74.1 million that have specific reserves totaling $ 7.3 million.

We recorded interest income on non-performing and other non-accrual loans of $ 6.7 million and $ 4.5 million during the three months ended March 31, 2026 and 2025, respectively.

$ 56,912 $ 56,912

We recorded interest income on non-performing and other non-accrual loans of $ 1.3 million and $ 8.0 million during the three and six months ended June 30, 2026, respectively, and $ 4.1 million and $ 9.9 million during the three and six months ended June 30, 2025, respectively.

Loan Modifications

8 unchanged sentences

and (4) bringing any delinquent loans current by paying past due interest owed.

The following table represents the UPB of loan modifications, as of the modification date, made to borrowers experiencing financial difficulty during the three months ended March 31, 2026 ($ in thousands):

The following table represents the UPB of loan modifications, as of the modification date, made to borrowers experiencing financial difficulty during the three months ended June 30, 2026 ($ in thousands):

Asset Class Payment Deferrals With/Without Term Extensions (1) Rate Reductions With/Without Term Extensions (2) Other (3) Total (4)(5)

1 unchanged sentence

________________________

(1) These loans were modified to a weighted average pay rate and deferred rate of 4.62 % and 2.80 %, respectively, at March 31, 2026.

These loans were also modified to extend the weighted average term by 23.5 months.

These modifications also include a loan with a UPB of $ 65.1 million in which the pay rate increases from time-to-time throughout the loan maturity.

(2) These loans were modified to reduce the interest rate to a weighted average pay rate and deferred rate of 5.26 % and 1.08 %, respectively, at March 31, 2026, and to extend the weighted average term by 18.7 months.

(3) These loan modifications included amending certain terms, such as reallocating and/or replenishment of reserves, providing for a temporary and conditional forbearance of foreclosure, delaying past due interest payments and replacing the existing property management company.

(4) The total UPB of these loan modifications were $ 479.3 million at March 31, 2026 and represented 4 % of our total Structured Business loan and investment portfolio at March 31, 2026.

(5) At March 31, 2026, modified loans with a UPB of $ 33.0 million have specific reserves totaling $ 1.0 million.

(1) This loan was modified to a weighted average pay rate and deferred rate of 5.65 % and 3.00 %, respectively, at June 30, 2026 and the pay rate increases from time-to-time throughout the loan maturity.

This loan was also modified to extend the weighted average term by 22.1 months.

(2) These loans were modified to reduce the interest rate to a weighted average rate of 5.72 % at June 30, 2026, and to extend the weighted average term by 36.8 months.

The interest rate on one of these loans with a UPB of $ 20.8 million increases from time-to-time throughout the loan maturity.

(3) This loan modification capitalized $ 1.2 million of unpaid interest and divided this loan into a $ 104.1 million tranche bearing interest at SOFR plus 3.00 % and a $ 10.1 million tranche bearing interest at a fixed rate of 10.00 %.

ARBOR REALTY TRUST, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(4) The total UPB of these loan modifications were $ 386.1 million at June 30, 2026 and represented 3 % of our Structured portfolio at June 30, 2026.

(5) Includes loans with a total UPB of $ 113.0 million, which were previously modified in prior years.

Using the SOFR rate at March 31, 2026, such loans were modified from a weighted average pay rate and deferred rate of 5.32 % and 2.29 %, respectively, to a weighted average pay rate and deferred rate of 4.27 % and 2.59 %, respectively.

Asset Class Payment Deferrals With/Without Term Extensions (1) Other (2) Total (3)(4)(5)

Using the SOFR rate at June 30, 2026, such loans were modified from a weighted average pay rate and deferred rate of 6.65 % and 1.25 %, respectively, to a weighted average pay rate and deferred rate of 6.95 % and 0.00 %, respectively.

The following table represents the UPB of loan modifications, as of the modification date, made to borrowers experiencing financial difficulty during the six months ended June 30, 2026 (in thousands):

Asset Class Payment Deferrals With/Without Term Extensions (1) Rate Reductions With/Without Term Extensions (2) Other (3) Total (4)(5)(6)

Multifamily $ 179,986 $ 457,317 $ 228,420 $ 865,723

________________________

(1) These loans were modified to a weighted average pay rate and deferred rate of 4.69 % and 2.81 %, respectively, at June 30, 2026 and to extend the weighted average term by 23.5 months.

These modifications also include loans with a total UPB of $ 78.3 million in which the pay rate increases from time-to-time throughout the loans' maturities.

(2) These loans were modified to reduce the interest rate to a weighted average pay rate and deferred rate of 5.52 % and 0.46 %, respectively, and to extend the weighted average term by 29.0 months.

(3) Loan modifications with a total UPB of $ 115.4 million included amending certain terms, such as reallocating and/or replenishment of reserves, providing for a temporary and conditional forbearance of foreclosure and temporarily delaying past due interest payments.

A loan modification with a UPB of $ 113.0 million was modified to capitalize $ 1.2 million of unpaid interest and was divided into a $ 104.1 million tranche bearing interest at SOFR plus 3.00 % and a $ 10.1 million tranche bearing interest at a fixed rate of 10.00 %.

(4) The total UPB of the loan modifications made during the six months ended June 30, 2026 was $ 865.4 million at June 30, 2026 and represented 7 % of our Structured portfolio at June 30, 2026.

(5) At June 30, 2026, modified loans with a UPB of $ 33.0 million have specific reserves totaling $ 1.0 million.

(6) Includes loans with a total UPB of $ 421.1 million, which were previously modified in prior years.

Using the SOFR rate at June 30, 2026, these loans were modified from a weighted average pay rate and deferred rate of 5.67 % and 2.01 %, respectively, to a weighted average pay rate and deferred rate of 4.99 % and 1.89 %, respectively.

Asset Class Payment Deferrals With/Without Term Extensions (1) Rate Reduction Without Term Extension (2) Total (3)(4)(5)

Multifamily $ 144,905 $ 107,000 $ 251,905

________________________

(1) These loans were modified to a weighted average pay rate and deferred rate of 5.50 % and 2.78 %, respectively, at June 30, 2025.

A portion of these loans with a total UPB of $ 116.5 million were also modified to extend the weighted average term by 19 months.

These modifications also include loans with a total UPB of $ 38.1 million in which the pay rate increases from time-to-time throughout the loans' maturities.

(2) These loans were modified to reduce the interest rate to a weighted average pay rate and deferred rate of 5.97 % and 0.56 %, respectively, and to extend the weighted average term by 23 months.

(3) The total UPB of the loan modifications made during the three months ended June 30, 2025 was $ 249.9 million at June 30, 2025 and represented 2 % of our Structured portfolio at June 30, 2025.

(4) At June 30, 2025, a modified loan with a UPB of $ 25.6 million has a specific reserve of $ 2.2 million.

(5) Includes loans with a total UPB of $ 136.1 million, which were previously modified in prior years.

Using the SOFR rate at June 30, 2025, these loans were modified from a weighted average pay rate and deferred rate of 6.47 % and 1.65 %, respectively, to a weighted average pay rate and deferred rate of 5.18 % and 2.28 %, respectively.

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AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Asset Class Payment Deferrals With/Without Term Extensions (1) Rate Reductions With/Without Term Extensions (2) Other (3) Total (4)(5)(6)

Multifamily $ 994,270 $ 107,000 $ 83,975 $ 1,185,245

Single-Family Rental — — 16,490 16,490

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________________________

(1) These loans were modified to a weighted average pay rate and deferred rate of 5.18 % and 2.56 %, respectively, at March 31, 2025.

A portion of these loans (total UPB of $ 108.7 million) were also modified to extend the weighted average term by 19.6 months.

(1) These loans were modified to a weighted average pay rate and deferred rate of 5.23 % and 2.19 %, respectively, at June 30, 2025.

A portion of these loans with a total UPB of $ 225.2 million were also modified to extend the weighted average term by 19.3 months.

These modifications also include loans with a total UPB of $ 508.4 million in which the pay rate increases from time-to-time throughout the loans' maturities.

(2) These loans were modified to reduce the interest rate to a weighted average pay rate and deferred rate of 5.97 % and 0.56 %, respectively, and to extend the weighted average term by 23 months.

(3) These loan modifications included amending certain terms, such as reallocating and/or replenishment of reserves, providing for a temporary and conditional forbearance of foreclosure and temporarily delaying past due interest payments.

(3) The total UPB of these loan modifications were $ 949.8 million at March 31, 2025 and represented 8 % of our total Structured Business loan and investment portfolio at March 31, 2025.

(4) At March 31, 2025, a modified loan with a UPB of $ 25.5 million had a specific reserve of $ 5.2 million.

(4) The total UPB of the loan modifications made during the six months ended June 30, 2025 was $ 1.20 billion at June 30, 2025 and represented 11 % of our Structured portfolio at June 30, 2025.

(5) At June 30, 2025, modified loans with a UPB of $ 51.1 million have specific reserves totaling $ 7.4 million.

(6) Includes loans with a total UPB of $ 520.1 million, which were previously modified in prior years.

Using the SOFR rate at March 31, 2025, such loans were modified from a weighted average pay rate and deferred rate of 6.82 % and 1.09 %, respectively, to a weighted average pay rate and deferred rate of 4.52 % and 3.38 %, respectively.

During the three months ended March 31, 2026, we recorded $ 0.2 million of deferred interest on the loans that we modified during the first quarter of 2026 and $ 5.4 million for loans previously modified.

During the three months ended March 31, 2025, we recorded $ 3.8 million of deferred interest on the loans that we modified during the first quarter of 2025 and $ 9.1 million for loans previously modified.

During the three months ended March 31, 2025, we reversed through interest income $ 3.3 million of interest receivable that was previously accrued on modified loans that we deemed the collection of interest to be doubtful.

At March 31, 2026 and December 31, 2025, we have recorded deferred interest totaling $ 73.1 million and $ 68.3 million, respectively, on all modified loans to borrowers experiencing financial difficulty.

The deferred interest is included in other assets on the consolidated balance sheets.

At March 31, 2026 and December 31, 2025, we had future funding commitments on modified loans with borrowers experiencing financial difficulty of $ 14.7 million and $ 17.4 million, respectively, which are generally subject to performance covenants that must be met by the borrower to receive funding.

All loan modifications completed in the past 12 months were performing pursuant to their contractual terms at March 31, 2026, except for two loans with a total UPB of $ 47.7 million.

Since these loans are not performing pursuant to their modified terms, these loans are classified as non-performing loans.

One of these loans with a UPB of $ 25.6 million have specific loan loss reserves totaling $ 2.2 million.

The remaining loan has no specific reserve as the estimated fair value of the property exceeded its carrying value at March 31, 2026.

There were no other material loan modifications, refinancings and/or extensions during the three months ended March 31, 2026 and 2025 for borrowers experiencing financial difficulty.

Using the SOFR rate at June 30, 2025, these loans were modified from a weighted average pay rate and deferred rate of 6.71 % and 1.25 %, respectively, to a weighted average pay rate and deferred rate of 4.69 % and 3.10 %, respectively.

During the three and six months ended June 30, 2026, we recorded $ 0.4 million and $ 0.6 million, respectively, of deferred interest on the loans that we modified during 2026 and $ 3.9 million and $ 9.3 million, respectively, for loans previously modified.

During the three and six months ended June 30, 2025, we recorded $ 1.9 million and $ 5.7 million, respectively, of deferred interest on the loans that we modified during 2025 and $ 8.3 million and $ 17.4 million, respectively, for loans previously modified.

During the three and six months ended June 30, 2025, we reversed through interest income $ 4.3 million and $ 7.6 million, respectively, of interest receivable that was previously accrued on modified loans that we deemed the collection of interest to be doubtful.

At June 30, 2026 and December 31, 2025, we have recorded deferred interest totaling $ 62.7 million and $ 68.3 million, respectively, on all modified loans to borrowers experiencing financial difficulty, which is included in other assets on the consolidated balance sheets.

At June 30, 2026 and December 31, 2025, we had future funding commitments on modified loans with borrowers experiencing financial difficulty of $ 3.4 million and $ 17.4 million, respectively, which are generally subject to performance covenants that must be met by the borrower to receive funding.

All loan modifications completed in the past 12 months were performing pursuant to their contractual terms at June 30, 2026, except for three loans with a total UPB of $ 72.3 million.

Since these loans are not performing pursuant to their modified terms, these loans are classified as non-accruing loans.

There were no other material loan modifications, refinancings and/or extensions during the three and six months ended June 30, 2026 and 2025 for borrowers experiencing financial difficulty.

Loan Resolutions

In March 2026, we exercised our right to foreclose on a property in Houston, Texas that was the underlying collateral for a non-performing bridge loan with a UPB of $ 25.0 million, an interest rate of SOFR plus 3.25 % with a SOFR floor of 0.15 %, and a net carrying value of $ 24.8 million.

At foreclosure, we recorded a loss of $ 1.8 million to the provision for credit losses on the consolidated statements of income and charged-off the $ 1.8 million loan loss reserve.

We sold the property in March 2026 for $ 25.0 million to a new borrower and provided a $ 24.5 million bridge loan with an interest rate of SOFR plus 2.50 % with a SOFR floor of 2.00 %.

In October 2025, we exercised our right to foreclose on a property in Joshua, Texas that was the underlying collateral for a non-accruing bridge loan with a UPB of $ 16.5 million, an interest rate of SOFR plus 4.75 % with a SOFR floor of 5.24 %, and a net carrying value of

During the three months ended June 30, 2026, we exercised our right to foreclose on two properties in Texas that were the underlying collateral for bridge loans with an aggregate UPB of $ 42.0 million and an aggregate net carrying value of $ 41.3 million, including one non-performing loan with a UPB of $ 21.1 million.

The loans had a weighted average pay rate of SOFR plus 3.55 % and a weighted average deferred rate of 0.58 %.

At foreclosure, we recognized aggregate gains of $ 0.5 million through gain (loss) on real estate on the consolidated statements of operations.

We sold the properties during the three months ended June 30, 2026 for aggregate proceeds of $ 42.5 million to new borrowers and provided new bridge loans totaling $ 41.9 million with a weighted average interest rate of SOFR plus 2.50 % and a weighted average interest rate floor of 6.14 %.

During the six months ended June 30, 2026, we exercised our right to foreclose on three properties in Texas that were the underlying collateral for bridge loans with an aggregate UPB of $ 67.0 million and an aggregate net carrying value of $ 66.1 million, including two

ARBOR REALTY TRUST, INC.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

$ 16.4 million.

We sold the property in October 2025 for $ 16.5 million to a new borrower and provided a $ 15.5 million bridge loan with an interest rate equal to the greater of 5.68 % or SOFR plus 1.70 %.

The new loan was deemed to be a significant financing component of the transaction and, as a result, we recorded a loss and corresponding liability of $ 0.2 million as an adjustment to the purchase price, which will be accreted into interest income over the life of the loan.

In October 2025, we exercised our right to foreclose on a property in Houston, Texas that was the underlying collateral for a non-accruing bridge loan with a UPB of $ 31.2 million, an interest rate of SOFR plus 4.25 % with a SOFR floor of 2.51 %, and a net carrying value of $ 25.1 million, which includes a loan loss reserve of $ 2.5 million.

At foreclosure, we recorded a $ 0.8 million loan loss reversal and charged-off the remaining loan loss reserves of $ 1.7 million.

We sold the property in December 2025 for $ 30.0 million to a new borrower and provided a $ 29.5 million bridge loan with an interest rate equal to the greater of 4.50 % or SOFR plus 2.50 %.

In June 2025, we exercised our right to foreclose on three properties in San Antonio, Texas that were the underlying collateral for a bridge loan with a UPB of $ 77.7 million, an interest rate of 5.25 % with a SOFR floor of 0.50 %, and a net carrying value of $ 66.6 million, which includes loan loss reserves of $ 3.5 million.

At foreclosure, we recorded an additional loss of $ 5.9 million to the provision for credit losses on the consolidated statements of income and charged-off the $ 9.4 million loan loss reserve.

We simultaneously sold the properties for $ 65.0 million to a new borrower and provided a $ 65.0 million bridge loan with an interest rate of SOFR plus 2.00 % for years one and two, and SOFR plus 3.00 % for year three, subject to SOFR floors of 4.25 %, 5.25 % and 6.25 % in years one, two and three, respectively.

The new loan was deemed to be a significant financing component of the transaction and, as a result, we recorded a loss and corresponding liability of $ 0.8 million as an adjustment to the purchase price, which will be accreted into interest income over the life of the loan.

In April 2025, we exercised our right to foreclose on two properties in Austin, Texas that were the underlying collateral for a non-performing bridge loan with a UPB of $ 21.2 million, an interest rate of SOFR plus 4.00 % with a SOFR floor of 0.25 %, and a net carrying value of $ 21.7 million.

At foreclosure, we recorded an additional loss of $ 1.0 million to the provision for credit losses on the consolidated statements of income.

We sold the properties in June 2025 for $ 20.7 million to a new borrower and provided a $ 19.2 million bridge loan with an interest rate of SOFR plus 2.00 % in year one and SOFR plus 3.00 % in year two.

The new loan was deemed to be a significant financing component of the transaction and, as a result, we recorded a loss and corresponding liability of $ 0.1 million as an adjustment to the purchase price, which will be accreted into interest income over the life of the loan.

In April 2025, we exercised our right to foreclose on two properties in Orange Park, Florida that were the underlying collateral for a non-performing bridge loan with a UPB of $ 17.0 million, an interest rate of SOFR plus 4.38 % with a SOFR floor of 2.46 %, and a net carrying value of $ 15.7 million.

At foreclosure, we recorded an additional loss of $ 0.3 million to the provision for credit losses on the consolidated statements of income.

We sold the properties in June 2025 for $ 15.4 million to a new borrower and provided a $ 14.8 million bridge loan with an interest rate of SOFR plus 1.50 %.

The new loan was deemed to be a significant financing component of the transaction and, as a result, we recorded a loss and corresponding liability of $ 0.6 million as an adjustment to the purchase price, which will be accreted into interest income over the life of the loan.

non-performing loans with an aggregate UPB of $ 46.1 million.

The loans had a weighted average pay rate of SOFR plus 3.44 % and a weighted average deferred rate of 0.36 %.

At foreclosure, we recognized aggregate gains of $ 0.5 million through gain (loss) on real estate and recorded a $ 1.8 million loss through the provision for credit losses, which was charged-off.

We sold the properties during the six months ended June 30, 2026 for aggregate proceeds of $ 67.5 million to new borrowers and provided new bridge loans totaling $ 66.4 million with a weighted average interest rate of SOFR plus 2.50 %.

Two of the newly originated loans are subject to a weighted average interest rate floor of 6.14 %.

The newly originated loans described above represent loan-to-capitalization ratios ranging from 81 %- 88 %, reflecting additional equity contributed by the new borrowers to fund the agreed upon purchase price, closing costs, capital expenditures and other reserve requirements.

See Note 9 for additional loan resolution details.

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Given the transitional nature of some of our real estate loans, we may require funds to be placed into an interest reserve as required by the loan documents to cover debt service costs.

At March 31, 2026 and December 31, 2025, we had total interest reserves of $ 244.0 million and $ 259.7 million, respectively, on 382 loans and 444 loans, respectively, with a total UPB of $ 8.22 billion and $ 8.68 billion, respectively.

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AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

At June 30, 2026 and December 31, 2025, we had total interest reserves of $ 216.2 million and $ 259.7 million, respectively, on 329 loans and 444 loans, respectively, with a total UPB of $ 8.44 billion and $ 8.68 billion, respectively.

Note 4 — Loans Held-for-Sale, Net

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Loans held-for-sale, net consists of the following ($ in thousands):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Fannie Mae $ 180,834 $ 303,196

Freddie Mac 108,824 2,225

Private Label 77,729 77,798

FHA 8,083 22,390

Freddie Mac 16,477 2,225

SFR - Fixed Rate 2,777 2,777

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Loans held-for-sale, net $ 375,797 $ 409,081

During the three months ended March 31, 2026 and 2025, we sold $ 671.0 million and $ 730.9 million, respectively, of loans held-for-sale.

At March 31, 2026 and December 31, 2025, there were no loans held-for-sale that were 90 days or more past due, and there were no loans held-for-sale that were placed on a non-accrual status.

During the three and six months ended June 30, 2026, we sold $ 1.14 billion and $ 1.81 billion, respectively, of loans held-for-sale.

During the three and six months ended June 30, 2025, we sold $ 807.0 million and $ 1.54 billion, respectively, of loans held-for-sale.

At June 30, 2026 and December 31, 2025, there were no loans held-for-sale that were 90 days or more past due, and there were no loans held-for-sale that were placed on a non-accrual status.

Note 5 — Capitalized Mortgage Servicing Rights

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The discount rates used to determine the present value of all our MSRs throughout the periods presented were between 8 % - 14 % (representing a weighted average discount rate of 12 %) based on our best estimate of market discount rates.

The weighted average estimated life remaining of our MSRs was 5.9 years and 6.1 years at March 31, 2026 and December 31, 2025, respectively.

The weighted average estimated life remaining of our MSRs was 5.8 years and 6.1 years at June 30, 2026 and December 31, 2025, respectively.

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AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

A summary of our capitalized MSR activity is as follows ($ in thousands):

Three Months Ended March 31, 2026

Originated Acquired Total

Three Months Ended June 30, 2026 Six Months Ended June 30, 2026

Originated Acquired Total Originated Acquired Total

Beginning balance $ 329,621 $ 2,308 $ 331,929 $ 338,174 $ 2,668 $ 340,842

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Ending balance $ 321,892 $ 1,995 $ 323,887 $ 321,892 $ 1,995 $ 323,887

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025 Six Months Ended June 30, 2025

Beginning balance $ 353,005 $ 4,215 $ 357,220 $ 363,861 $ 4,817 $ 368,678

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Ending balance $ 344,630 $ 3,696 $ 348,326 $ 344,630 $ 3,696 $ 348,326

We collected prepayment fees totaling $ 0.9 million and $ 1.0 million during the three months ended March 31, 2026 and 2025, respectively, which are included as a component of servicing revenue, net on the consolidated statements of income.

At March 31, 2026 and December 31, 2025, no MSRs were considered impaired.

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AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

The expected amortization of capitalized MSRs recorded at March 31, 2026 is as follows ($ in thousands):

We collected prepayment fees totaling $ 0.8 million and $ 1.7 million during the three and six months ended June 30, 2026, respectively, and $ 0.9 million and $ 1.9 million during the three and six months ended June 30, 2025, respectively, which are included as a component of servicing revenue, net on the consolidated statements of operations.

At June 30, 2026 and December 31, 2025, no MSRs were considered impaired.

The expected amortization of capitalized MSRs recorded at June 30, 2026 is as follows ($ in thousands):

Year Amortization

2026 (nine months ending 12/31/2026) $ 53,739

2026 (six months ending 12/31/2026) $ 36,457

Thereafter 59,911

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Based on scheduled maturities, actual amortization may vary from these estimates.

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AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Note 6 — Mortgage Servicing

Product and geographic concentrations that impact our servicing revenue are as follows ($ in thousands):

March 31, 2026

June 30, 2026

Product Concentrations Geographic Concentrations

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(3) No other individual state represented 4 % or more of the total.

At March 31, 2026 and December 31, 2025, our weighted average servicing fee was 35.5 basis points and 35.6 basis points, respectively.

At March 31, 2026 and December 31, 2025, we held total escrow balances (including unfunded collateralized loan obligation ("CLO") hold backs) of approximately $ 1.22 billion and $ 1.35 billion, respectively, of which approximately $ 1.21 billion and $ 1.34 billion, respectively, is not included in our consolidated balance sheets.

At June 30, 2026 and December 31, 2025, our weighted average servicing fee was 35.0 basis points and 35.6 basis points, respectively.

At June 30, 2026 and December 31, 2025, we held total escrow balances (including unfunded collateralized loan obligation ("CLO") hold backs) of approximately $ 1.25 billion and $ 1.35 billion, respectively, of which approximately $ 1.24 billion and $ 1.34 billion, respectively, is not included in our consolidated balance sheets.

These escrows are maintained in separate accounts at several federally insured depository institutions, which may exceed FDIC insured limits.

We earn interest income on the total escrow deposits, which is

We earn interest income on the total escrow deposits, which is generally based on a market rate of interest negotiated with the financial institutions that hold the escrow deposits.

Interest earned on total escrows, net of interest paid to the borrower, is included as a component of servicing revenue, net in the consolidated statements of operations as noted in the following table.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

generally based on a market rate of interest negotiated with the financial institutions that hold the escrow deposits.

Interest earned on total escrows, net of interest paid to the borrower, is included as a component of servicing revenue, net in the consolidated statements of income as noted in the following table.

The components of servicing revenue, net are as follows ($ in thousands):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Servicing fees $ 33,596 $ 32,887 $ 67,543 $ 65,430

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In connection with our Private Label securitizations, we retain the most subordinate class of the APL certificates in satisfaction of credit risk retention requirements.

At March 31, 2026, we held APL certificates with an initial face value of $ 192.8 million, which were purchased at a discount for $ 119.0 million.

At June 30, 2026, we held APL certificates with an initial face value of $ 192.8 million, which were purchased at a discount for $ 119.0 million.

These certificates are collateralized by 5-year to 10-year fixed rate first mortgage loans on multifamily properties, bear interest at an initial weighted average variable rate of 3.94 % and have an estimated weighted average remaining maturity of 4.8 years.

The weighted average effective interest rate was 8.84 % at both March 31, 2026 and December 31, 2025, including the accretion of a portion of the discount deemed collectible.

The weighted average effective interest rate was 8.84 % at both June 30, 2026 and December 31, 2025, including the accretion of a portion of the discount deemed collectible.

Approximately $ 63.6 million is estimated to mature in one to five years and $ 129.2 million is estimated to mature in five to ten years.

Agency B Piece Bonds.

At March 31, 2026, we held 49 %, or $ 106.2 million initial face value, of seven Freddie Mac SBL program B Piece bonds, which were previously purchased at a discount for $ 74.7 million, and sold the remaining 51 % to a third party.

At June 30, 2026, we held 49 %, or $ 106.2 million initial face value, of seven Freddie Mac SBL program B Piece bonds, which were previously purchased at a discount for $ 74.7 million, and sold the remaining 51 % to a third party.

These securities are collateralized by a pool of multifamily mortgage loans, had an initial weighted average variable rate of 3.74 % and have an estimated weighted average remaining maturity of 11.6 years.

The weighted average effective interest rate was 2.32 % and 2.00 % at March 31, 2026 and December 31, 2025, respectively, including the accretion of a portion of the discount deemed collectible.

The weighted average effective interest rate was 3.32 % and 2.00 % at June 30, 2026 and December 31, 2025, respectively, including the accretion of a portion of the discount deemed collectible.

Approximately $ 32.0 million is estimated to mature after ten years.

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Credit Losses

March 31, 2026

June 30, 2026

APL certificates $ 192,791 $ 143,810 $ ( 15,770 ) $ 128,040 $ 1,676

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A summary of the changes in the allowance for credit losses for our securities held-to-maturity is as follows ($ in thousands):

Three Months Ended March 31, 2026

APL Certificates B Piece Bonds Total

Three Months Ended June 30, 2026 Six Months Ended June 30, 2026

APL Certificates B Piece Bonds Total APL Certificates B Piece Bonds Total

Beginning balance $ 1,473 $ 13,652 $ 15,125 $ 1,664 $ 15,349 $ 17,013

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Ending balance $ 1,676 $ 12,667 $ 14,343 $ 1,676 $ 12,667 $ 14,343

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025 Six Months Ended June 30, 2025

Beginning balance $ 1,659 $ 9,108 $ 10,767 $ 1,658 $ 9,188 $ 10,846

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The allowance for credit losses on our held-to-maturity securities consists of (1) a general reserve estimated on a collective basis by major security type and was based on a reasonable and supportable forecast period and a historical loss reversion for similar securities, and (2) a specific reserve for underlying loans that are probable of loss.

At March 31, 2026, securities held-to-maturity with a carrying value of $ 12.2 million (before specific allowances of $ 10.5 million) were on non-accrual status.

At June 30, 2026, securities held-to-maturity with a carrying value of $ 11.6 million (before specific allowances of $ 9.5 million) were on non-accrual status.

We continue to accrue interest on all other securities that remain current.

We recorded interest income (including the amortization of discount) related to these investments of $ 3.7 million, for both the three months ended March 31, 2026 and 2025.

We recorded interest income (including the amortization of discount) related to these investments of $ 3.9 million and $ 7.6 million during the three and six months ended June 30, 2026, respectively, and $ 3.4 million and $ 7.1 million during the three and six months ended June 30, 2025 , respectively.

Note 8 — Investments in Equity Affiliates

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A summary of these investments is as follows ($ in thousands):

Investments in Equity Affiliates at UPB of Loans to Equity Affiliates at March 31, 2026

Equity Affiliates March 31, 2026 December 31, 2025

AWC Real Estate Opportunity Partners I LP $ 16,782 $ 17,134 $ 108,450

Investments in Equity Affiliates at UPB of Loans to Equity Affiliates at June 30, 2026

Equity Affiliates June 30, 2026 December 31, 2025

Biscayne Shores $ 24,343 $ — $ —

Fifth Wall Ventures 19,783 17,260 —

AWC Real Estate Opportunity Partners I LP 16,401 17,134 108,450

AMAC Holdings III LLC 11,598 12,714 33,410

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Total $ 82,762 $ 57,966 $ 246,569

AWC Real Estate Opportunity Partners I LP ("AWC").

During the three months ended March 31, 2026 and 2025, we recorded a loss of $ 0.4 million and $ 0.1 million, respectively, related to this investment.

Also, during the three months ended March 31, 2025, we made contributions of $ 2.4 million and received distributions of $ 1.0 million, which were classified as returns of capital.

Certain investments made by AWC are in qualified properties that have outstanding bridge loans originated by us and a Fannie Mae DUS loan we continue to service.

Interest income recorded from the bridge loans was $ 1.8 million and $ 2.1 million for the three months ended March 31, 2026 and 2025, respectively.

Biscayne Shores .

In the second quarter of 2026, we contributed $ 25.0 million for a 25.6 % interest in a multifamily property.

During both the three and six months ended June 30, 2026, we received distributions of $ 0.7 million, which were classified as returns of capital.

Operating results from this investment were de minimis this period.

Fifth Wall Ventures ("Fifth Wall").

During the three months ended March 31, 2026 and 2025, we recorded a loss of $ 0.8 million and income of $ 0.5 million, respectively, and made contributions of $ 0.3 million and $ 0.8 million, respectively.

During the three and six months ended June 30, 2026, we recorded income of $ 0.1 million and loss of $ 0.7 million, respectively, and made contributions of $ 2.9 million and $ 3.2 million, respectively.

During the three and six months ended June 30, 2025, we recorded income of $ 0.3 million and $ 0.8 million, respectively, and made contributions of $ 1.2 million and $ 1.9

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million, respectively.

During both the three and six months ended June 30, 2025, we received distributions of $ 1.4 million, which were classified as returns of capital.

AWC Real Estate Opportunity Partners I LP ("AWC").

During the three and six months ended June 30, 2026, we recorded a loss of $ 0.4 million and $ 0.7 million, respectively, and during the three and six months ended June 30, 2025, we recorded a loss of $ 0.1 million and $ 0.2 million, respectively, related to this investment.

During the three and six months ended June 30, 2025, we made contributions of $ 1.3 million and $ 3.7 million, respectively, related to this investment.

During both the three and six months ended June 30, 2025 we received distributions of $ 1.0 million, which were classified as returns of capital.

Certain investments made by AWC are in qualified properties that have outstanding bridge loans originated by us and a Fannie Mae DUS loan we continue to service.

Interest income recorded from the bridge loans was $ 1.8 million and $ 3.6 million for the three and six months ended June 30, 2026, respectively, and $ 2.1 million and $ 4.2 million for the three and six months ended June 30, 2025, respectively.

AMAC Holdings III LLC (“AMAC III”).

During the three months ended March 31, 2026 and 2025, we recorded a loss of $ 0.5 million and $ 0.9 million, respectively, and during the three months ended March 31, 2025, we made contributions of $ 0.9 million.

During the three and six months ended June 30, 2026, we recorded a loss of $ 0.7 million and $ 1.1 million, respectively.

During the three and six months ended June 30, 2025, we recorded a loss of $ 1.1 million and $ 1.9 million, respectively, and made contributions of $ 0.9 million for both the three and six months ended June 30, 2025.

Lexford Portfolio.

During the three months ended March 31, 2026, we received distributions from this investment of $ 5.8 million.

During the three and six months ended June 30, 2026, we received distributions from this investment and recognized income of $ 3.0 million and $ 8.8 million, respectively.

During both the three and six months ended June 30, 2025, we received distributions from this investment and recognized income of $ 3.4 million.

Arbor Residential Investor LLC.

During the three months ended March 31, 2025, we recorded a loss of $ 1.4 million, and received a distribution of $ 0.5 million, which was classified as a return of capital.

During the six months ended June 30, 2025, we recorded a loss of $ 1.4 million.

During the three and six months ended June 30, 2025, we received distributions of $ 5.6 million and $ 6.1 million, respectively, which were classified as returns of capital.

We completed the sale of our interest in this investment in July 2025.

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A summary of our REO assets is as follows ($ in thousands):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Multifamily Office Land Total Multifamily Office Land Total

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Number of properties 32 2 2 36 31 2 2 35

During the three months ended March 31, 2026, we foreclosed on two multifamily bridge loans, each with one property as collateral, with an aggregate net carrying value of $ 34.0 million and received ownership of the underlying collateral as REO assets.

The foreclosed loans did not have any related specific CECL reserves as of the foreclosure dates.

There were no gains or losses recognized upon foreclosure .

During the three months ended March 31, 2026, we sold an existing multifamily REO property for $ 8.0 million, and recognized a loss of $ 2.0 million, excluding the loss associated with the significant financing component discussed below.

Additionally, we provided new bridge loan financing to the new borrowers totaling $ 9.5 million, inclusive of $ 2.5 million to fund renovations, that bears interest at the greater of a fixed rate of 5.17 % or SOFR plus 1.50 % for year one, and a fixed rate of 6.17 %, or SOFR plus 2.50 % for year two.

The new financing provided was deemed to be a significant financing component of the transaction and, as a result, for the three months ended March 31, 2026, we recorded a loss and corresponding liability of $ 0.1 million, as an adjustment to the purchase price, which will be accreted into interest income over the life of the loan.

The losses of the transaction were recorded through loss on real estate on the consolidated statements of income.

During the three and six months ended June 30, 2026, we foreclosed on three and five multifamily bridge loans, respectively, each of which was collateralized by one property, and received ownership of the underlying collateral as REO assets.

The loans foreclosed during the three and six months ended June 30, 2026 had an aggregate net carrying value of $ 68.8 million and $ 102.8 million, respectively, net of CECL reserves of $ 3.5 million in each period.

Upon foreclosure, we recorded charge-offs against the allowance for credit losses of $ 6.0 million during both the three and six months ended June 30, 2026, which included $ 2.5 million of additional provision for credit losses recognized upon foreclosure.

There were no reversals of previously recorded allowance for credit losses upon foreclosure during either period.

During the three and six months ended June 30, 2026, we sold three and four existing multifamily REO properties for $ 37.3 million and $ 45.3 million, respectively, and repaid mortgage notes outstanding of $ 24.5 million in the second quarter of 2026.

During the three and six months ended June 30, 2026, we recognized losses of $ 0.4 million, and $ 2.4 million, respectively, relating to these dispositions, excluding the loss associated with the significant financing component discussed below.

Additionally, we provided new bridge loan financing to two and three of the buyers, respectively, totaling $ 31.9 million and $ 41.4 million, respectively.

The bridge loans bear interest at floating rates generally equal to the greater of stated floors ranging from 5.17 % to 6.65 % and SOFR plus spreads ranging from 1.50 % to 3.00 %, with one loan increasing in year two to the greater of 6.17 % and SOFR plus 2.50 %.

One of the new financings provided

ARBOR REALTY TRUST, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

was deemed to have a significant financing component and, as a result, during the six months ended June 30, 2026, we recorded a loss and corresponding liability of $ 0.1 million as an adjustment to the purchase price, which will be accreted into interest income over the life of the loan.

The net losses of these transactions were recorded through gain (loss) on real estate on the consolidated statements of operations.

The newly originated loans described above represent loan-to-capitalization ratios ranging from 72 %- 88 %, reflecting additional equity contributed by the new borrowers to fund the agreed upon purchase price, closing costs, capital expenditures and other reserve requirements.

See Note 3 for details of properties foreclosed and sold within the same reporting period.

During the three months ended March 31, 2026, we determined that certain of our REO assets exhibited indicators of impairment based on expected disposition strategies, our evaluation of current market conditions and other property-specific assumptions.

Based on our impairment analysis performed, we recorded an impairment loss of $ 12.5 million related to six properties, which represents the extent to which the carrying value of the properties exceeded their estimated fair value.

At March 31, 2026 and December 31, 2025, we had notes payable totaling $ 253.2 million and $ 223.0 million, respectively, which are collateralized by our REO assets.

Interest rates on the notes range from SOFR plus 2.50 % to SOFR plus 3.25 %, wi th maturities spanning fr om August 2026 to September 2027.

At March 31, 2026 and December 31, 2025, our multifamily REO properties had a weighted average occupancy rate of approximately 49 % and 45 %, respectively, excluding three and two properties, respectively, that were vacant due to renovations.

At March 31, 2026 and December 31, 2025, both our office buildings were vacant.

We recorded depreciation expense related to the REO assets of $ 6.1 million and $ 2.7 million for the three months ended March 31, 2026, and 2025, respectively.

During the three and six months ended June 30, 2026, we determined that certain of our REO assets exhibited indicators of impairment based on expected disposition strategies, our evaluation of current market conditions and other property-specific assumptions, including expected disposition proceeds, recent market bids or broker opinions of value, projected property-level operating performance, occupancy and net operating income expectations.

Based on our impairment analysis performed, we recorded an impairment loss of $ 13.7 million and $ 26.2 million, related to two and six properties, for the three and six months ended June 30, 2026, respectively, which represents the extent to which the carrying value of the properties exceeded their estimated fair value less costs to sell.

The fair value measurements for these impaired REO assets were determined on a nonrecurring basis and were classified as Level 3 within the fair value hierarchy, including, as applicable, expected sales proceeds, broker opinions of value, appraisals, capitalization rates, projected property-level cash flows and estimated selling costs.

At June 30, 2026 and December 31, 2025, we had notes payable totaling $ 270.4 million and $ 223.0 million, respectively, which are collateralized by our REO assets.

Interest rates on the notes range from SOFR plus 2.18 % to SOFR plus 3.25 %, wit h maturities spanning fr om August 2026 to September 2027.

At June 30, 2026 and December 31, 2025, our multifamily REO properties had a weighted average occupancy rate of approximately 51 % and 45 %, respectively, excluding three and two properties, respectively, that were vacant due to renovations.

At June 30, 2026 and December 31, 2025, both our office buildings were vacant.

We recorded depreciation expense related to the REO assets of $ 5.2 million and $ 11.2 million f or the three and six months ended June 30, 2026, respectively, and $ 4.8 million and $ 7.5 million for the three and six months ended June 30, 2025, respectively.

ARBOR REALTY TRUST, INC.

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Borrowings under our credit and repurchase facilities are as follows ($ in thousands):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Maturity Extended

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Value (1) Collateral

Note Rate (2) Debt

Rate (2) Debt

Value (1) Collateral

Structured Business

$ 1.4 B joint repurchase facility (3)

2028 $ 1,031,189 $ 1,569,762 6.36 % $ 882,635 $ 1,468,161

$ 1.66 B repurchase facility

(6) N/A $ 1,543,778 $ 2,145,982 5.56 % $ 1,149,944 $ 1,555,403

$ 1.55 B joint repurchase facility (3)

2028 1,569,336 2,268,747 5.91 % 882,635 1,468,161

$ 1.00 B repurchase facility

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2028 71,316 96,696 6.29 % 41,114 59,147

$ 22 M loan specific credit facility

2026 N/A 20,792 26,000 5.84 % 63,456 87,000

$ 40 M credit facility (7)

2026 N/A 15,570 24,610 6.10 % 15,532 24,610

2027 15,574 24,610 6.09 % 15,532 24,610

$ 35 M working capital facility (7)

2026 N/A 35,000 — 6.65 % 35,000 —

$ 21 M loan specific credit facility (9)

2026 N/A 20,798 26,000 5.83 % 63,456 87,000

Repurchase facility - securities (3)(4) N/A N/A 31,903 — 5.07 % 50,280 —

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________________________

(1) At March 31, 2026 and December 31, 2025, debt carrying value for the Structured Business was net of unamortized deferred finance costs of $ 9.6 million and $ 11.7 million, respectively, and for the Agency Business was net of unamortized deferred finance costs of $ 0.3 million at both March 31, 2026 and December 31, 2025.

(2) At March 31, 2026 and December 31, 2025, all credit and repurchase facilities are variable rate loans.

(1) At June 30, 2026 and December 31, 2025, debt carrying value for the Structured Business was net of unamortized deferred financing fees of $ 9.4 million and $ 11.7 million, respectively, and for the Agency Business was net of unamortized deferred financing fees of $ 0.3 million at both June 30, 2026 and December 31, 2025.

(2) At June 30, 2026 and December 31, 2025, all credit and repurchase facilities are variable rate loans.

(3) These facilities are subject to margin call provisions associated with changes in interest spreads.

(4) At March 31, 2026 and December 31, 2025, this facility was collateralized by certificates retained by us from our Freddie Mac Q Series securitization (“Q Series securitization”) with a principal balance of $ 6.0 million and cash and $ 26.5 million, respectively, and investment grade notes we retained from our BTR CLO 1 securitization with a principal balance of $ 41.0 million at both March 31, 2026 and December 31, 2025.

(4) At both June 30, 2026 and December 31, 2025, this facility was collateralized by investment grade notes we retained from our BTR CLO 1 securitization with a principal balance of $ 41.0 million, and at December 31, 2025 it was also collateralized by certificates retained by us from our Freddie Mac Q Series securitization (“Q Series securitization”) with a principal balance of $ 26.5 million.

(5) The commitment amount under this facility expires six months after the lender provides written notice.

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(7) These facilities were extended in 2026.

(8) These amounts exclude outstanding notes payable on our REO assets with a debt carrying value of $ 270.4 million and $ 223.0 million at June 30, 2026 and December 31, 2025, respectively.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(8) These amounts exclude outstanding notes payable on our REO assets with a debt carrying value of $ 253.2 million and $ 223.0 million at March 31, 2026 and December 31, 2025, respectively.

(9) This facility matures on July 31, 2026 and will not be renewed.

Structured Business

At March 31, 2026 and December 31, 2025, the weighted average interest rate for the credit and repurchase facilities of our Structured Business, including certain fees and costs, such as structuring, commitment, non-use and warehousing fees, was 6.44 % and 6.40 %, respectively.

The leverage on our loan and investment portfolio financed through our credit and repurchase facilities, excluding the securities repurchase facility and the working capital facility, was 69 % at both March 31, 2026 and December 31, 2025.

At June 30, 2026 and December 31, 2025, the weighted average interest rate for the credit and repurchase facilities of our Structured Business, including certain fees and costs, such as structuring, commitment, non-use and warehousing fees, was 6.24 % and 6.40 %, respectively.

In June 2026, we amended a $ 1.50 billion joint repurchase facility to increase the facility size to $ 1.65 billion to refinance loans previously held in CLO 17.

The interest rate on the loans transferred from CLO 17 is SOFR plus 1.65 %.

In May 2026, we amended a $ 1.22 billion repurchase facility to increase the facility size to $ 1.66 billion to refinance loans previously held in CLO 17.

The interest rate on the loans transferred from CLO 17 is SOFR plus 1.75 %.

In March 2026, we entered into a $ 300.0 million credit facility to finance BTR loans that matures in March 2029, with a one-year extension option.

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In March 2026, we extended the maturity of a $ 200.0 million credit facility to March 2027 and reduced the interest rate from SOFR plus 1.40 % to SOFR plus 1.35 %.

In June 2026, we extended the maturity of our other $ 200.0 million credit facility to June 2027 and reduced the interest rate from SOFR plus 1.35 % to SOFR plus 1.20 %.

Securitized Debt

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Debt Collateral (3)

March 31, 2026 Face Value Carrying

June 30, 2026 Face Value Carrying

Value (1) Wtd.

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CLO 18 (5) 788,940 788,940 5.96 % 1,182,619 1,182,470 —

CLO 17 (5) 900,659 900,660 5.73 % 1,173,927 1,173,866 104,235

Total CLOs $ 3,953,223 $ 3,931,468 5.73 % $ 4,730,150 $ 4,720,915 $ 309,693

Q Series securitization (6) — — — 24,950 24,950 —

Total securitized debt $ 2,992,050 $ 2,972,246 5.74 % $ 3,649,919 $ 3,641,332 $ 26,445

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Total securitized debt $ 3,485,786 $ 3,468,258 5.81 % $ 4,565,353 $ 4,557,631 $ 21,469

________________________

(1) Debt carrying value is net of $ 21.8 million and $ 17.5 million of deferred financing fees at March 31, 2026 and December 31, 2025, respectively.

(2) At March 31, 2026 and December 31, 2025, the aggregate weighted average note rate for our CLOs, including certain fees and costs, was 5.96 % and 6.07 %, respectively.

ARBOR REALTY TRUST, INC.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(3) At March 31, 2026 and December 31, 2025, 32 and 39 loans, respectively, with a total UPB of $ 1.39 billion and $ 1.69 billion, respectively, were deemed a "credit risk" as defined by the CLO indentures.

________________________

(1) Debt carrying value is net of $ 19.8 million and $ 17.5 million of deferred financing fees at June 30, 2026 and December 31, 2025, respectively.

(2) At June 30, 2026 and December 31, 2025, the aggregate weighted average note rate for our CLOs, including certain fees and costs, was 6.01 % and 6.07 %, respectively.

(3) At June 30, 2026 and December 31, 2025, 20 and 39 loans, respectively, with a total UPB of $ 808.3 million and $ 1.69 billion, respectively, were deemed a "credit risk" as defined by the CLO indentures.

A credit risk asset is generally defined as one that, in the CLO collateral manager's reasonable business judgment, has a significant risk of becoming a defaulted asset.

(4) Represents restricted cash held for principal repayments as well as for reinvestment in the CLOs.

Does not include restricted cash related to interest payments, delayed fundings and expenses totaling $ 10.9 million and $ 10.1 million at March 31, 2026 and December 31, 2025, respectively.

Does not include restricted cash related to interest payments, delayed fundings and expenses totaling $ 76.6 million and $ 10.1 million at June 30, 2026 and December 31, 2025, respectively.

(5) The replenishment period for CLO 17 and CLO 18 ended in June 2024 and August 2024, respectively.

(6) All third party amounts have been paid down and only our tranches remain.

In May 2026, we unwound CLO 17, redeeming the remaining outstanding notes totaling $ 787.0 million, which were repaid from the availability in our credit and repurchase facilities.

In March 2026, we completed CLO 21, through a wholly owned subsidiary, issuing nine tranches of CLO notes totaling $ 762.6 million.

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Thereafter, the outstanding debt balance will decrease as loans are repaid.

The proceeds of the issuance also included $ 100.0 million for the purpose of acquiring additional loan obligations within 180 days from the CLO closing date, which is expected to be fully utilized, resulting in the issuer owning loan obligations with a face value of $ 762.6 million, representing leverage of 88 %.

The proceeds of the issuance also included $ 100.0 million for the purpose of acquiring additional loan obligations within 180 days from the CLO closing date, which we subsequently utilized, resulting in the issuer owning loan obligations with a face value of $ 762.6 million, representing leverage of 88 %.

The notes sold to third parties had an initial weighted average interest rate of 1.73 % plus term SOFR, with interest payable monthly.

Securitization Paydowns .

During the three months ended March 31, 2026, outstanding notes totaling $ 248.4 million on our existing CLOs have been paid down .

During the six months ended June 30, 2026, outstanding notes totaling $ 182.7 million on our existing CLOs have been paid down .

Senior Unsecured Notes

A summary of our senior unsecured notes is as follows ($ in thousands):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Unsecured Notes Issuance

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________________________

(1) At March 31, 2026 and December 31, 2025, the carrying value is net of deferred financing fees of $ 19.1 million and $ 20.9 million, respectively.

(2) At both March 31, 2026 and December 31, 2025, the aggregate weighted average note rate, including certain fees and costs, was 7.06 %.

(1) At June 30, 2026 and December 31, 2025, the carrying value is net of deferred financing fees of $ 17.2 million and $ 20.9 million, respectively.

(2) At June 30, 2026 and December 31, 2025, the aggregate weighted average note rate, including certain fees and costs, was 7.23 % and 7.06 %, respectively.

(3) These notes can be redeemed by us prior to three months before the maturity date, at a redemption price equal to 100 % of the aggregate principal amount, plus a “make-whole” premium and accrued and unpaid interest.

We have the right to redeem the notes within three months prior to the maturity date at a redemption price equal to 100 % of the aggregate principal amount, plus accrued and unpaid interest.

(4) These notes can be redeemed by us prior to six months before the maturity date, at a redemption price equal to 100 % of the aggregate principal amount, plus a “make-whole” premium and accrued and unpaid interest.

We have the right to redeem the notes within six months prior to the maturity date at a redemption price equal to 100 % of the aggregate principal amount, plus accrued and unpaid interest.

We have the right to redeem the notes

ARBOR REALTY TRUST, INC.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Subsequent Event.

In April 2026, we redeemed our 5.00 % senior notes totaling $ 175.0 million at maturity.

within three months prior to the maturity date at a redemption price equal to 100 % of the aggregate principal amount, plus accrued and unpaid interest.

We have the right to redeem the notes within six months prior to the maturity date at a redemption price equal to 100 % of the aggregate principal amount, plus accrued and unpaid interest.

(5) In July 2026, we redeemed our 4.50 % senior notes.

See "Convertible Senior Unsecured Notes" below.

(6) In April 2026, we redeemed our 5.00 % senior notes at maturity.

Convertible Senior Unsecured Notes

In August 2025, our convertible notes matured, and were fully repaid with a portion of the net proceeds received from our 7.875 % senior unsecured notes issued in July 2025.

During the three months ended March 31, 2025, we incurred interest expense on the notes totaling $ 6.1 million, of which $ 5.4 million and $ 0.7 million related to the cash coupon and deferred financing fees, respectively.

During the three months ended June 30, 2025, we incurred interest expense on the notes totaling $ 6.1 million, of which $ 5.4 million and $ 0.7 million related to the cash coupon and deferred financing fees, respectively.

During the six months ended June 30, 2025, we incurred interest expense on the notes totaling $ 12.2 million, of which $ 10.8 million and $ 1.4 million related to the cash coupon and deferred financing fees, respectively.

Subsequent Event.

In July 2026, we issued $ 375.0 million in aggregate principal amount of 6.25 % convertible senior unsecured notes (the “ 6.25 % Convertible Notes”) through a private placement offering, which includes the exercised initial purchaser's over-allotment option of $ 50.0 million.

The 6.25 % Convertible Notes pay interest semiannually in arrears and are scheduled to mature in July 2029, unless earlier converted or repurchased by the holders pursuant to their terms.

The initial conversion rate was 164.0016 shares of common stock per $1,000 of principal representing a conversion price of $ 6.10 per share of common stock.

We used the net proceeds to repurchase 2,140,300 shares of our common stock for $ 11.6 million, repurchase $ 102.7 million of our common stock pursuant to a prepaid forward transaction and used the remaining proceeds, together with cash on hand, to redeem, in full, our outstanding $ 270.0 million 4.50 % senior unsecured notes that were due in September 2026.

The initial aggregate number of shares of our common stock underlying the prepaid forward transaction is approximately 18,941,200 shares.

Junior Subordinated Notes

The carrying values of borrowings under our junior subordinated notes were $ 145.7 million and $ 145.5 million at March 31, 2026 and December 31, 2025, respectively, which is net of a deferred amount of $ 7.4 million and $ 7.6 million, respectively, (which is amortized into interest expense over the life of the notes) and deferred financing fees of $ 1.2 million at both March 31, 2026 and December 31, 2025.

The carrying values of borrowings under our junior subordinated notes were $ 145.9 million and $ 145.5 million at June 30, 2026 and December 31, 2025, respectively, which is net of a deferred amount of $ 7.3 million and $ 7.6 million, respectively, (which is amortized into interest expense over the life of the notes) and deferred financing fees of $ 1.2 million at both June 30, 2026 and December 31, 2025.

These notes have maturities ranging from March 2034 through April 2037 and pay interest quarterly at a floating rate.

The weighted average note rate was 6.55 % and 6.52 % at March 31, 2026 and December 31, 2025, respectively.

Including certain fees and costs, the weighted average note rate was 6.64 % and 6.61 % at March 31, 2026 and December 31, 2025, respectively.

The weighted average note rate was 6.60 % and 6.52 % at June 30, 2026 and December 31, 2025, respectively.

Including certain fees and costs, the weighted average note rate was 6.69 % and 6.61 % at June 30, 2026 and December 31, 2025, respectively.

Debt Covenants

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The credit and repurchase facilities and unsecured debt contain various financial covenants, including, but not limited to, minimum liquidity requirements, minimum net worth requirements, minimum unencumbered asset requirements, as well as certain other debt service coverage ratios, debt to equity ratios and minimum servicing portfolio tests.

We were in compliance with all financial covenants and restrictions at March 31, 2026.

We were in compliance with all financial covenants and restrictions at June 30, 2026.

Our CLO vehicles contain interest coverage and asset overcollateralization covenants that must be met as of the waterfall distribution date in order for us to receive such payments.

If we fail these covenants in any of our CLOs, all cash flows from the applicable CLO would be diverted to repay principal and interest on the outstanding CLO bonds and we would not receive any residual payments until that CLO regained compliance with such tests.

Our CLOs were in compliance with all such covenants at March 31, 2026, as well as on the most recent determination dates in April 2026.

Our CLOs were in compliance with all such covenants at June 30, 2026, as well as on the most recent determination dates in July 2026.

In the event of a breach of the CLO covenants that could not be cured in the near-term, we would be required to fund our non-CLO expenses, including employee costs, distributions required to maintain our REIT status, debt costs, and other expenses with (1) cash on hand, (2) income from any CLO not in breach of a covenant test, (3) income from real property and loan assets, (4) sale of assets, or (5) accessing the equity or debt capital markets, if available.

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However, we may not have sufficient liquidity available to do so at such time.

Our CLO compliance tests as of the most recent determination dates in April 2026 are as follows:

Cash Flow Triggers CLO 17 CLO 18 BTR CLO 1 CLO 20 CLO 21

ARBOR REALTY TRUST, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Our CLO compliance tests as of the most recent determination dates in July 2026 are as follows:

Cash Flow Triggers CLO 18 BTR CLO 1 CLO 20 CLO 21

Overcollateralization (1)

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Limit 123.03 % 115.47 % 110.52 % 111.15 %

Pass / Fail Pass Pass Pass Pass Pass

Pass / Fail Pass Pass Pass Pass

Interest Coverage (2)

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Limit 120.00 % 120.00 % 120.00 % 120.00 %

Pass / Fail Pass Pass Pass Pass Pass

Pass / Fail Pass Pass Pass Pass

________________________

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(2) The interest coverage ratio divides interest income by interest expense for the classes senior to those retained by us.

ARBOR REALTY TRUST, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Our CLO overcollateralization ratios as of the determination dates subsequent to each quarter are as follows:

Determination (1) CLO 17 CLO 18 BTR CLO 1 CLO 20 CLO 21

Determination (1) CLO 18 BTR CLO 1 CLO 20 CLO 21

July 2026 145.88 % 117.47 % 112.52 % 113.15 %

April 2026 139.84 % 117.47 % 112.52 % 113.15 %

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July 2025 130.03 % 117.47 % N/A N/A

April 2025 122.65 % 127.91 % N/A N/A N/A

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Our allowance for loss-sharing obligations related to the Fannie Mae DUS program is as follows ($ in thousands):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Beginning balance $ 106,773 $ 85,515 $ 97,579 $ 83,150

Provisions for loss sharing (net of reversals) 4,537 1,786

Provision for loss sharing (net of reversals) 13,472 4,215 18,009 6,002

Charge-offs and advances, net of reimbursements ( 1,347 ) 27 3,310 605

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When a loan is sold under the Fannie Mae DUS program, we undertake an obligation to partially guarantee the performance of the loan.

A liability is recognized for the fair value of the guarantee obligation undertaken for the non-contingent aspect of the guarantee and is removed only upon either the expiration or settlement of the guarantee.

At March 31, 2026 and December 31, 2025, we had $ 36.1 million and $ 35.7 million, respectively, of guarantee obligations included in the allowance for loss-sharing obligations.

A liability is recognized for the fair value of the guarantee obligation undertaken for the non-contingent aspect of the guarantee and is

ARBOR REALTY TRUST, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

removed only upon either the expiration or settlement of the guarantee.

At June 30, 2026 and December 31, 2025, we had $ 36.6 million and $ 35.7 million, respectively, of guarantee obligations included in the allowance for loss-sharing obligations.

In addition to and separately from the fair value of the guarantee, we estimate our allowance for loss-sharing under CECL over the contractual period in which we are exposed to credit risk.

3 unchanged sentences

The settled loss is often net of any previously unreimbursed advanced principal and interest payments in accordance with the DUS program, which are reflected as reductions to the proceeds needed to settle losses.

At March 31, 2026 and December 31, 2025, we had outstanding advances of $ 2.5 million and $ 7.3 million, respectively, which were netted against the allowance for loss-sharing obligations.

At March 31, 2026 and December 31, 2025, our allowance for loss-sharing obligations, associated with expected losses under CECL, was $ 70.7 million and $ 61.9 million, respectively, and represented 0.29 % and 0.26 %, respectively, of our Fannie Mae servicing portfolio.

At March 31, 2026 and December 31, 2025, the maximum quantifiable liability associated with our guarantees under the Fannie Mae DUS agreement was $ 4.64 billion and $ 4.60 billion, respectively.

At June 30, 2026 and December 31, 2025, we had outstanding advances of $ 2.6 million and $ 7.3 million, respectively, which were netted against the allowance for loss-sharing obligations.

At June 30, 2026 and December 31, 2025, our allowance for loss-sharing obligations, associated with expected losses under CECL, was $ 82.3 million and $ 61.9 million, respectively, and represented 0.34 % and 0.26 %, respectively, of our Fannie Mae servicing portfolio.

At June 30, 2026 and December 31, 2025, the maximum quantifiable liability associated with our guarantees under the Fannie Mae DUS agreement was $ 4.69 billion and $ 4.60 billion, respectively.

The maximum quantifiable liability is not representative of the actual loss we would incur.

We would be liable for this amount only if all of the loans we service for Fannie Mae, for which we retain some risk of loss, were to default and all of the collateral underlying these loans was determined to be without value at the time of settlement.

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Note 12 — Derivative Financial Instruments

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Sale commitments with the investors have an expiration date that is longer than our related commitments to the borrower to allow, among other things, for closing of the loan and processing of paperwork to deliver the loan into the sale commitment.

These commitments meet the definition of a derivative and are recorded at fair value, including the effects of interest rate movements which are reflected as a component of (loss) gain on derivative instruments, net in the consolidated statements of income.

The estimated fair value of rate lock commitments also includes the fair value of the expected net cash flows associated with the servicing of the loan which is recorded as income from MSRs in the consolidated statements of income.

During the three months ended March 31, 2026 and 2025, we recorded net losses of $ 1.3 million and net gains of $ 4.7 million, respectively, from changes in the fair value of these derivatives and income from MSRs of $ 9.7 million and $ 8.1 million, respectively.

These commitments meet the definition of a derivative and are recorded at fair value, including the effects of interest rate movements which are reflected as a component of gain on derivative instruments, net in the consolidated statements of operations.

During the three and six months ended June 30, 2026, we recorded net gains of $ 0.5 million and net losses of $ 0.8 million, respectively, from changes in the fair value of these derivatives and income from MSRs of $ 12.1 million and $ 21.8 million, respectively.

During the three and six months ended June 30, 2025, we recorded net gains of $ 1.4 million and $ 6.1 million, respectively, from changes in the fair value of these derivatives and income from MSRs of $ 10.9 million and $ 19.1 million, respectively.

See Note 13 for details.

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These instruments do not meet the criteria for hedge accounting, are cleared by a central clearing house and variation margin payments made in cash are treated as a legal settlement of the derivative itself.

Our agreements with the counterparties provide for bilateral collateral pledging based on the counterparties' market value.

The counterparties have the right to re-pledge the collateral posted, but have the obligation to return the pledged collateral as the market value of the treasury futures change.

Our policy is to record the asset and liability positions on a net basis.

At March 31, 2026, we had no outstanding treasury futures positions.

At December 31, 2025, we had $ 1.6 million included in other assets, which was comprised of cash posted as collateral of $ 1.6 million and net liability position of less than $ 0.1 million from the fair value of our treasury futures.

During the three months ended March 31, 2026, we recorded realized gains of $ 0.8 million to our Agency Business, related to our swaps.

During the three months ended March 31, 2025, we recorded realized gains of $ 0.5 million and unrealized losses of $ 1.7 million to our Agency Business.

Our agreements with the counterparties provide for bilateral collateral pledging based on the

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counterparties' market value.

The counterparties have the right to re-pledge the collateral posted, but have the obligation to return the pledged collateral as the market value of the treasury futures change.

Our policy is to record the asset and liability positions on a net basis.

At June 30, 2026 and December 31, 2025, we had $ 2.9 million and $ 1.6 million, respectively, included in others assets, which was comprised of cash posted as collateral of $ 3.3 million and $ 1.6 million, respectively, and net liability positions of $ 0.3 million and $ 0.1 million, respectively, from the fair value of our treasury futures.

During the three months ended June 30, 2026, we recorded realized gains of $ 0.9 million and unrealized losses of $ 0.3 million to our Agency Business, related to our swaps.

During the six months ended June 30, 2026, we recorded realized gains of $ 1.7 million and unrealized losses of $ 0.3 million to our Agency Business, related to our swaps.

During the three months ended June 30, 2025, we recorded realized losses of $ 1.0 million and unrealized gains of $ 0.5 million to our Agency Business, related to swaps.

During the six months ended June 30, 2025, we recorded realized losses of $ 0.5 million and unrealized losses of $ 1.2 million to our Agency Business, related to our swaps.

A summary of our non-qualifying derivative financial instruments in our Agency Business is as follows ($ in thousands):

March 31, 2026

June 30, 2026

Derivative Count Notional Value Balance Sheet Location Derivative Assets Derivative Liabilities

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Forward sale commitments 16 488,782 Other assets/other liabilities 846 ( 1,894 )

Treasury futures 559 55,900 — —

$ 735,723 $ 1,594 $ ( 2,637 )

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$ 448,753 $ 585 $ ( 1,082 )

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Note 13 — Fair Value

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The following table summarizes the principal amounts, carrying values and the estimated fair values of our financial instruments ($ in thousands):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Notional Amount Carrying

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Examples include non-government securities, certain mortgage and asset-backed securities, certain corporate debt and certain derivative instruments.

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Level 3—Inputs reflect our best estimate of what market participants would use in pricing the asset or liability and are based on significant unobservable inputs that require a considerable amount of judgment and assumptions.

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Fair value includes the fair value allocated to the associated future MSRs and is calculated pursuant to the valuation techniques described below for capitalized mortgage servicing rights, net (Level 3).

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Capitalized mortgage servicing rights, net.

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If quotes from active markets are unavailable, then the fair values are estimated utilizing current market quotes received from inactive markets (Level 2).

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We measure certain financial assets and financial liabilities at fair value on a recurring basis.

The fair values of these financial assets and liabilities are determined using the following input levels at March 31, 2026 ($ in thousands):

The fair values of these financial assets and liabilities are determined using the following input levels at June 30, 2026 ($ in thousands):

Carrying Value Fair Value Fair Value Measurements Using Fair Value Hierarchy

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We measure certain financial and non-financial assets at fair value on a nonrecurring basis.

The fair values of these financial and non-financial assets, if applicable, were determined using the following input levels at March 31, 2026 ($ in thousands):

The fair values of these financial and non-financial assets, if applicable, were determined using the following input levels at June 30, 2026 ($ in thousands):

Net Carrying Value Fair Value Fair Value Measurements Using Fair Value Hierarchy

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________________________

(1) We had an allowance for credit losses of $ 31.6 million relating to 17 impaired loans with an aggregate carrying value, before loan loss reserves, of $ 334.7 million at March 31, 2026.

(1) We had an allowance for credit losses of $ 46.5 million relating to 19 impaired loans with an aggregate carrying value, before loan loss reserves, of $ 445.7 million at June 30, 2026.

The fair values of these impaired loans are based on the value of the underlying collateral.

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(2) We have an impairment loss of $ 1.0 million related to 3 loans held-for-sale with an aggregate carrying value, before unrealized impairment losses, of $ 13.9 million.

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These valuations require significant judgments, which include assumptions regarding capitalization and discount rates, revenue growth rates, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan and other factors.

Loans held-for-sale are generally expected to be transferred or sold within 60 days to 180 days of loan origination and are reported at lower of cost or market.

Loans held-for-sale are generally expected to be transferred or sold within 60 days to 180 days of loan origination and are reported at the lower of cost or market.

We consider a loan classified as held-for-sale impaired if, based on current information, it is probable that we will sell the loan below par, or not be able to collect all principal and interest in accordance with the contractual terms of the loan agreement.

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The tables above and below include all impaired loans, regardless of the period in which the impairment was recognized.

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Quantitative information about Level 3 fair value measurements at March 31, 2026 is as follows ($ in thousands):

Quantitative information about Level 3 fair value measurements at June 30, 2026 is as follows ($ in thousands):

Fair Value Valuation Techniques Significant Unobservable Inputs

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Multifamily $ 237,717 Discounted cash flows Capitalization rate 5.95 % 5.50 % - 7.50 %

147,464 Price quotes N/A N/A N/A

Retail $ 14,008 Sales comparative Price per acre $ 165 $ 165

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Fair Value Measurements Using Significant Unobservable Inputs

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Derivative assets and liabilities, net

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Ending balance $ 748 $ 382 $ 748 $ 382

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The components of fair value and other relevant information associated with our forward sales commitments and the estimated fair value of cash flows from servicing on loans held-for-sale are as follows ($ in thousands):

March 31, 2026 Notional/

June 30, 2026 Notional/

Principal Amount Fair Value of

Servicing Rights Unrealized

Impairment Loss Total Fair Value

Impairment Recovery (Loss) Total Fair Value

Rate lock commitments $ 191,041 $ 748 $ — $ 748

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(1) Loans held-for-sale, net are recorded at the lower of cost or market on an aggregate basis and includes fair value adjustments related to estimated cash flows from MSRs.

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We measure certain assets and liabilities for which fair value is only disclosed.

The fair values of these assets and liabilities are determined using the following input levels at March 31, 2026 ($ in thousands):

The fair values of these assets and liabilities are determined using the following input levels at June 30, 2026 ($ in thousands):

Fair Value Measurements Using Fair Value Hierarchy

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Our adjusted net worth and liquidity required by the agencies for all periods presented exceeded these requirements.

At March 31, 2026, we were required to maintain at least $ 24.0 million of liquid assets in one of our subsidiaries to meet our operational liquidity requirements for Fannie Mae and we had operational liquidity in excess of this requirement.

At June 30, 2026, we were required to maintain at least $ 24.3 million of liquid assets in one of our subsidiaries to meet our operational liquidity requirements for Fannie Mae and we had operational liquidity in excess of this requirement.

We are generally required to share the risk of any losses associated with loans sold under the Fannie Mae DUS program and are required to secure this obligation by assigning restricted cash balances and/or a letter of credit to Fannie Mae.

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A significant portion of our Fannie Mae DUS serviced loans for which we have risk sharing are Tier 2 loans.

At March 31, 2026, the restricted liquidity requirement totaled $ 102.3 million and was satisfied with a $ 70.0 million letter of credit and cash issued to Fannie Mae.

At March 31, 2026, reserve requirements for the current Fannie Mae DUS loan portfolio will require us to fund $ 33.8 million in additional restricted liquidity over the next 48 months, assuming no further principal paydowns, prepayments, or defaults within our at-risk portfolio.

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2026, the restricted liquidity requirement totaled $ 104.7 million and was satisfied with a $ 70.0 million letter of credit and cash issued to Fannie Mae.

At June 30, 2026, reserve requirements for the current Fannie Mae DUS loan portfolio will require us to fund $ 33.8 million in additional restricted liquidity over the next 48 months, assuming no further principal paydowns, prepayments, or defaults within our at-risk portfolio.

Fannie Mae periodically reassesses these collateral requirements and may make changes to these requirements in the future.

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Failure to maintain minimum capital requirements could result in our inability to originate and service loans for the respective investor and, therefore, could have a direct material effect on our consolidated financial statements.

At March 31, 2026, we met all of Fannie Mae’s quarterly capital requirements and our Fannie Mae adjusted net worth was in excess of the required net worth.

At June 30, 2026, we met all of Fannie Mae’s quarterly capital requirements and our Fannie Mae adjusted net worth was in excess of the required net worth.

We are not subject to capital requirements on a quarterly basis for Ginnie Mae and FHA, as requirements for these investors are only required on an annual basis.

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As an approved designated seller/servicer under Freddie Mac’s SBL program, we are required to post collateral to ensure that we are able to meet certain purchase and loss obligations required by this program.

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Debt Obligations and Operating Leases.

At March 31, 2026, the maturities of our debt obligations and the minimum annual operating lease payments under leases with a term in excess of one year are as follows ($ in thousands):

At June 30, 2026, the maturities of our debt obligations and the minimum annual operating lease payments under leases with a term in excess of one year are as follows ($ in thousands):

Year Debt Obligations Minimum Annual Operating Lease Payments Total

2026 (nine months ending December 31, 2026) $ 3,049,470 $ 8,598 $ 3,058,068

2026 (six months ending December 31, 2026) $ 1,780,992 $ 5,767 $ 1,786,759

2027 5,084,559 9,912 5,094,471

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Total $ 11,113,779 $ 53,299 $ 11,167,078

During the three months ended March 31, 2026 and 2025, we recorded lease expense of $ 2.9 million and $ 2.8 million, respectively.

During the three and six months ended June 30, 2026, we recorded lease expense of $ 2.8 million and $ 5.7 million, respectively.

During the three and six months ended June 30, 2025, we recorded lease expense of $ 2.7 million and $ 5.4 million, respectively.

Unfunded Commitments.

In accordance with certain structured loans and investments, we have outstanding unfunded commitments of $ 1.79 billion at March 31, 2026 that we are obligated to fund as borrowers meet certain requirements.

In accordance with certain structured loans and investments, we have outstanding unfunded commitments of $ 1.53 billion at June 30, 2026 that we are obligated to fund as borrowers meet certain requirements.

Specific requirements include, but are not limited to, property renovations, building construction and conversions based on criteria met by the borrower in accordance with the loan agreements.

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On July 31, 2024, a purported shareholder filed a securities class action lawsuit against us and certain of our executive officers in the United States District Court for the Eastern District of New York (the “Court”), alleging violations of Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder.

The plaintiffs seek to represent a class of shareholders who purchased our shares of common stock between May 7, 2021 and July 11, 2024.

The plaintiffs sought to represent a class of shareholders who purchased our shares of common stock between May 7, 2021 and July 11, 2024.

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On November 5, 2024, the Court approved the motion appointing the lead plaintiffs and their counsel.

An amended complaint was filed by the lead plaintiffs on January 21, 2025.

The amended complaint alleges that we have made false and misleading statements and/or failed to disclose material information in connection with allegedly overriding internal controls, engaging in substandard lending practices and not complying with agency requirements.

The plaintiffs are seeking damages in an unspecified amount, as well as attorneys’ fees and costs.

The amended complaint alleged that we had made false and misleading statements and/or failed to disclose material information in connection with allegedly overriding internal controls, engaging in substandard lending practices and not complying with agency requirements.

The plaintiffs sought damages in an unspecified amount, as well as attorneys’ fees and costs.

On April 10, 2025, we served a motion to dismiss the case.

On March 31, 2026, the Court granted the motion to dismiss in its entirety, dismissing the amended complaint.

The plaintiffs were granted leave to amend within 30 days of the order dismissing the case but ultimately decided not to amend.

The plaintiffs were granted leave to amend the complaint within 30 days of the order dismissing the case but ultimately decided not to amend.

On May 5, 2026, the Court dismissed the plaintiffs’ claims with prejudice and judgment was entered in favor of Defendants.

The plaintiffs’ time to appeal has expired.

Derivative Actions

On February 26, 2025, a purported shareholder filed a verified shareholder derivative suit in the United States District Court for the District of Maryland, derivatively and on behalf of the Company, against certain officers and directors of the Board of Directors, asserting claims for breach of fiduciary duties, unjust enrichment, abuse of control, gross mismanagement, waste of corporate assets, violations of Section 14(a) of the Exchange Act, and contribution under the Exchange Act, arising from substantially the same facts and events as

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alleged in the above-mentioned Securities Class Action.

The complaint seeks unspecified damages, costs and expenses, as well as other relief.

The complaint sought unspecified damages, costs and expenses, as well as other relief.

On March 17, 2025, another purported shareholder filed a substantially similar verified shareholder derivative complaint, and the derivative actions were consolidated as In re Arbor Realty Trust, Inc.

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On April 28, 2025, the Court entered a joint stipulation and order to stay the action pending resolution of the motion to dismiss in the Securities Class Action.

The action will remain stayed following a dismissal without prejudice until entry of an order resolving a subsequent motion to dismiss in the class action.

The consolidated case is in the early stages.

On June 12, 2026, the parties filed a joint stipulation to voluntarily dismiss this action without prejudice, which was subsequently entered by the Court on July 1, 2026.

On April 18, 2025, another purported shareholder filed a substantially similar verified shareholder derivative complaint in the District Court for the Eastern District of New York.

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On May 5, 2026, the Court ordered the parties to file a joint status report by June 9, 2026.

This case is also in the early stages.

On June 9, 2026, the parties filed a joint stipulation to voluntarily dismiss this action without prejudice, which was subsequently entered by the Court on July 13, 2026.

On July 18, 2025, a purported shareholder filed a verified shareholder derivative complaint in the Circuit Court for the Baltimore City, Maryland, derivatively and on behalf of the Company, against certain officers and directors of the Board of Directors, asserting demand refusal and a claim for breach of fiduciary duty.

On September 15, 2025, the Court entered a joint stipulation and order to stay the action pending resolution of the motion to dismiss in the Securities Class Action.

The action will remain stayed following a dismissal without prejudice until entry of an order resolving a subsequent motion to dismiss in the class action.

This case is also in the early stages.

On June 19, 2026, the court entered a joint stipulation and order to extend the stay until July 10, 2026.

On July 10, 2026, the parties filed a joint stipulation to voluntarily dismiss this action without prejudice, which was subsequently entered by the Court on July 14, 2026.

On July 29, 2025, two purported shareholders filed a verified shareholder derivative complaint in the United States District Court for the Eastern District of New York, derivatively and on behalf of the Company, against certain officers and directors of the Board of Directors, asserting demand refusal and claims for violation of Section 14(a) of the Exchange Act, breach of fiduciary duty and unjust enrichment.

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On November 14, 2025, the court entered a joint stipulation and order to stay the action pending resolution of the motion to dismiss in the Securities Class Action.

The action will remain stayed following a dismissal without prejudice until entry of an order resolving a subsequent motion to dismiss in the class action.

This case is also in the early stages.

On May 18, 2026, the court entered a joint stipulation and order to extend the stay until July 10, 2026.

On July 10, 2026, the parties filed a joint stipulation to voluntarily dismiss this action without prejudice, which was subsequently entered by the Court on July 13, 2026.

On August 5, 2025, a purported shareholder filed a verified shareholder derivative complaint in the United States District Court for the Eastern District of New York, derivatively and on behalf of the Company, against certain officers and directors of the Board of Directors, asserting demand futility and claims for violation of Section 14(a) of the Exchange Act, breach of fiduciary duty, and unjust enrichment.

On September 10, 2025, the Court entered a joint stipulation and order to stay the action pending resolution of the motion to dismiss in the Securities Class Action.

The action will remain stayed following a dismissal without prejudice until entry of an order resolving a subsequent motion to dismiss in the class action.

This case is also in the early stages.

We believe that the allegations in the lawsuits are without merit, and we intend to vigorously defend against the claims.

At this time, we are unable to determine whether an unfavorable outcome is probable or to estimate reasonably possible losses.

On June 18, 2026, the parties filed a joint stipulation to voluntarily dismiss this action without prejudice, which was subsequently entered that same day.

Due to Borrowers.

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Our involvement with VIEs primarily affects our financial performance and cash flows through amounts recorded in interest income, interest expense, provision for loan losses and through activity associated with our derivative instruments.

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Consolidated VIEs.

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Our operating results and cash flows include the gross asset and liability amounts related to the Securitization Entities as opposed to our net economic interests in those entities.

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The assets and liabilities related to these consolidated Securitization Entities are as follows ($ in thousands):

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Restricted cash $ 103,077 $ 35,258

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Unconsolidated VIEs .

We determined that we are not the primary beneficiary of 64 VIEs in which we have a variable interest at March 31, 2026 because we do not have the ability to direct the activities of the VIEs that most significantly impact each entity's economic performance or substantially all of the activities do not involve, or are not conducted on behalf of, the Company.

A summary of our variable interests in identified VIEs, of which we are not the primary beneficiary, at March 31, 2026 is as follows ($ in thousands):

We determined that we are not the primary beneficiary of 65 VIEs in which we have a variable interest at June 30, 2026 because we do not have the ability to direct the activities of the VIEs that most significantly impact each entity's economic performance or substantially all of the activities do not involve, or are not conducted on behalf of, the Company.

A summary of our variable interests in identified VIEs, of which we are not the primary beneficiary, at June 30, 2026 is as follows ($ in thousands):

Type Carrying Amount (1)

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(1) Represents the carrying amount of loans and investments before reserves.

At March 31, 2026, $ 91.8 million of loans to VIEs had corresponding specific loan loss reserves of $ 7.8 million.

The maximum loss exposure at March 31, 2026 would not exceed the carrying amount of our investment.

These unconsolidated VIEs have exposure to real estate debt of approximately $ 4.77 billion at March 31, 2026.

At June 30, 2026, $ 114.4 million of loans to VIEs had corresponding specific loan loss reserves of $ 14.5 million.

The maximum loss exposure at June 30, 2026 would not exceed the carrying amount of our investment.

These unconsolidated VIEs have exposure to real estate debt of approximately $ 4.78 billion at June 30, 2026.

Note 16 — Equity

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The Series D, Series E and Series F preferred stock are not redeemable by us prior to June 2, 2026, August 11, 2026 and October 12, 2026, respectively.

Holders of the Series F preferred stock are entitled to receive cumulative dividends at a fixed rate equal to 6.25 % from the date of issuance through October 29, 2026 and at a floating rate equal to a benchmark rate (which is expected to be the three-month term SOFR) plus a spread of 5.442 % per annum beginning October 30, 2026;

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three-month term SOFR) plus a spread of 5.442 % per annum beginning October 30, 2026;

provided that in no event should the rate be lower than 6.125 %.

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In accordance with the terms of the agreement, we may offer and sell up to 30,000,000 shares of our common stock in "At-The-Market" equity offerings through JMP by means of ordinary brokers' transactions or otherwise at market prices prevailing at the time of sale, or at negotiated prices.

At March 31, 2026, we had 23,439,335 shares available under the agreement.

At June 30, 2026, we had 23,439,335 shares available under the agreement.

We have a share repurchase program providing for the repurchase of up to $ 150.0 million of our outstanding common stock.

The repurchase of our common stock may be made from time to time in the open market, through privately negotiated transactions, or

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otherwise in compliance with Rule 10b-18 and Rule 10b5-1 under the Exchange Act, based on our stock price, general market conditions, applicable legal requirements and other factors.

The repurchase of our common stock may be made from time to time in the open market, through privately negotiated transactions, or otherwise in compliance with Rule 10b-18 and Rule 10b5-1 under the Exchange Act, based on our stock price, general market conditions, applicable legal requirements and other factors.

The program may be discontinued or modified at any time.

During the first quarter of 2026, we repurchased 4,117,901 shares of our common stock under our share repurchase program at a total cost of $ 30.7 million and an average cost of $ 7.46 per share.

At March 31, 2026, there was $ 105.9 million available for repurchase under this program.

During the six months ended June 30, 2026, we repurchased 7,668,592 shares of our common stock under our share repurchase program at a cost of $ 51.4 million, excluding broker commission fees, representing an average cost of $ 6.71 per share.

At June 30, 2026, there was $ 85.2 million available for repurchase under this program.

Noncontrolling Interest.

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The OP Units are also redeemable for cash, or at our option, for shares of our common stock on a one -for-one basis.

At March 31, 2026, there were 16,170,218 OP Units outstanding, which represented 7.8 % of the voting power of our outstanding stock.

At June 30, 2026, there were 16,170,218 OP Units outstanding, which represented 7.9 % of the voting power of our outstanding stock.

Distributions.

Dividends declared (on a per share basis) during the three months ended March 31, 2026 are as follows:

Dividends declared (on a per share basis) during the six months ended June 30, 2026 are as follows:

Common Stock Preferred Stock

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February 24, 2026 $ 0.30 March 30, 2026 $ 0.3984375 $ 0.390625 $ 0.390625

Common Stock – On May 7, 2026, the Board of Directors declared a cash dividend of $ 0.17 per share of common stock.

The dividend is payable on June 5, 2026 to common stockholders of record as of the close of business on May 22, 2026.

May 7, 2026 $ 0.17 June 29, 2026 $ 0.3984375 $ 0.390625 $ 0.390625

Common Stock – On July 29, 2026, the Board of Directors declared a cash dividend of $ 0.17 per share of common stock.

The dividend is payable on August 28, 2026 to common stockholders of record as of the close of business on August 14, 2026.

Deferred Compensation.

During the first quarter of 2026, we granted 1,056,203 shares of restricted common stock to certain employees and Board of Directors members under the Amended Omnibus Stock Incentive Plan with a total grant date fair value of $ 8.1 million, of which:

During 2026, we granted 1,249,730 shares of restricted common stock to certain employees and Board of Directors members under the Amended Omnibus Stock Incentive Plan with a total grant date fair value of $ 9.1 million, of which:

(1) 395,249 shares with a grant date fair value of $ 3.0 million vested on the grant date in 2026;

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and (5) 112,492 shares with a grant date fair value of $ 0.6 million will vest in 2030.

During the first quarter of 2026, we granted our chief executive officer 281,690 shares of restricted common stock with a grant date fair value of $ 2.1 million that vest in full in the first quarter of 2029.

During 2026, we granted our chief executive officer 281,690 shares of restricted common stock with a grant date fair value of $ 2.1 million that vest in full in the first quarter of 2029.

We also granted our chief executive officer up to 1,126,760 shares of performance-based restricted stock units (“RSUs”) with a grant date fair value of $ 3.1 million that vest at the end of a four-year performance period based on the achievement of certain stockholder return objectives.

In addition, we granted our chief operating officer 649,350 shares of performance-based RSUs with a grant date fair value of $ 0.6 million that vest at the end of a five-year performance period based on the achievement of certain stockholder return objectives.

During 2026, we granted our chief operating officer 649,350 shares of performance-based RSUs with a grant date fair value of $ 0.6 million that vest at the end of a five-year performance period based on the achievement of certain stockholder return objectives.

We also awarded our chief operating officer a multi-year performance award pursuant to which he may earn between 0 % and 100 % of a maximum award value of $ 20.0 million based on the level of achievement of specified new business volume and related performance metrics during the applicable performance period.

Following completion of the performance period and certification of the performance results, any portion of the award earned will be converted into and granted in the form of shares of restricted common stock.

The grant date and number of shares resulting from the award will be determined at that time based on the applicable stock price specified in the award agreement.

Subject to continued employment, the restricted shares will generally vest in five equal installments on the grant date and on each of the first four anniversaries of the grant date.

We also issued 93,075 fully-vested RSUs with a grant date fair value of $ 0.7 million to certain members of our Board of Directors, who have decided to defer the receipt of the common stock, into which the RSUs are converted, or to defer receipt of cash fees, to a future date pursuant to a pre-established deferral election.

During the first quarter of 2026, we withheld 310,341 shares from the net settlement of restricted common stock by employees for payment of withholding taxes on shares that vested.

Earnings Per Share (“EPS”).

Basic EPS is calculated by dividing net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding during each period inclusive of unvested restricted stock with full dividend participation rights.

Diluted EPS is calculated by dividing net income (loss) by the weighted average number of shares of common stock outstanding, plus the additional dilutive effect of common stock equivalents during each period.

Our common stock equivalents include the weighted average dilutive effect of RSUs and OP Units, and for the three months ended March 31, 2025, convertible senior unsecured notes.

ARBOR REALTY TRUST, INC.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

During 2026, we withheld 322,969 shares from the net settlement of restricted common stock by employees for payment of withholding taxes on shares that vested.

Earnings Per Share (“EPS”).

Our common stock equivalents include the weighted average dilutive effect of RSUs and OP Units and for the six months ended June 30, 2025, convertible senior unsecured notes.

A reconciliation of the numerator and denominator of our basic and diluted EPS computations is as follows ($ in thousands, except share and per share data):

Three Months Ended March 31,

Three Months Ended June 30,

Basic Diluted (1) Basic Diluted

Net income attributable to common stockholders (1) $ 629 $ 629 $ 30,438 $ 30,438

Net income attributable to noncontrolling interest (2) — 52 — 2,602

Net income attributable to common stockholders and noncontrolling interest (3) $ 629 $ 681 $ 30,438 $ 33,040

Net (loss) income attributable to common stockholders (2) $ ( 37,342 ) $ ( 37,342 ) $ 23,952 $ 23,952

Net (loss) income attributable to noncontrolling interest (3) — — — 2,015

Net (loss) income attributable to common stockholders and noncontrolling interest (4) $ ( 37,342 ) $ ( 37,342 ) $ 23,952 $ 25,967

Weighted average shares outstanding 190,806,800 190,806,800 192,236,206 192,236,206

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Weighted average shares outstanding (4) 190,806,800 190,806,800 192,236,206 209,003,002

Net income per common share (1) $ 0.00 $ 0.00 $ 0.16 $ 0.16

Net (loss) income per common share (2) $ ( 0.20 ) $ ( 0.20 ) $ 0.12 $ 0.12

Six Months Ended June 30,

Net (loss) income attributable to common stockholders (2) $ ( 36,713 ) $ ( 36,713 ) $ 54,389 $ 54,389

Net (loss) income attributable to noncontrolling interest (3) — — — 4,617

Net (loss) income attributable to common stockholders and noncontrolling interest (4) $ ( 36,713 ) $ ( 36,713 ) $ 54,389 $ 59,006

Weighted average shares outstanding 192,491,494 192,491,494 191,154,501 191,154,501

Dilutive effect of OP Units (3) — — — 16,211,314

Dilutive effect of RSUs (5) — — — 572,759

Weighted average shares outstanding (4) 192,491,494 192,491,494 191,154,501 207,938,574

Net (loss) income per common share (2) $ ( 0.19 ) $ ( 0.19 ) $ 0.28 $ 0.28

________________________

(1) For the three and six months ended June 30, 2026, potentially dilutive securities were excluded from the computation of diluted loss per common share because their effect would have been anti-dilutive due to the net loss attributable to common stockholders incurred during the period.

(2) Net of preferred stock dividends.

(3) We consider OP Units to be common stock equivalents as the holders have voting rights, the right to distributions and the right to redeem the OP Units for the cash value of a corresponding number of shares of common stock or a corresponding number of shares of common stock, at our election.

(3) The three months ended March 31, 2025 excludes interest expense of $ 6.1 million, and potentially dilutive shares of 17,616,593 attributable to convertible debt since their effect would have been anti-dilutive.

(4) The three and six months ended June 30, 2025 excludes interest expense of $ 6.1 million and $ 12.2 million, respectively, and potentially dilutive shares of 17,471,534 and 17,543,663 , respectively, attributable to convertible debt since their effect would have been anti-dilutive.

In August 2025, our convertible debt matured and was fully settled.

(4) Represents the dilutive effect of performance-based RSUs granted to our chief executive officer and chief operating officer that vest based upon our achievement of total stockholder return objectives and RSUs granted to our chief executive officer and certain directors who have decided to defer the receipt of the common stock into which the RSUs are converted, or to defer receipt of cash fees, to a future date pursuant to a pre-established deferral election.

(5) Represents the dilutive effect of performance-based RSUs granted to certain executive officers that vest based upon our achievement of total stockholder return objectives and RSUs granted to our chief executive officer and certain directors who have decided to defer the receipt of the common stock into which the RSUs are converted, or to defer receipt of cash fees, to a future date pursuant to a pre-established deferral election.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Note 17 — Income Taxes

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We believe that it is more likely than not a significant portion of our NEO compensation will exceed the $1.0 million limitation in current and future years resulting in no tax deductibility for the book expense associated with these compensation agreements, including share-based compensation.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

In addition, the OBBBA made permanent the deduction generally available to individuals, trusts and estates equal to 20% of ordinary REIT dividends, subject to certain limitations, which had previously been scheduled to expire for taxable years beginning on or after January 1, 2026.

The OBBBA also increased the limitation on a REIT’s ownership of taxable REIT subsidiary securities from 20% to 25% of the REIT’s total assets, effective for taxable years beginning after December 31, 2025.

A summary of our income tax provision is as follows ($ in thousands):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Current income tax provision $ ( 5,361 ) $ ( 5,001 ) $ ( 10,026 ) $ ( 8,730 )

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The Service Recipients reimburse us for the costs of performing such services and the cost of the seconded employees.

During both the three months ended March 31, 2026 and 2025, we incurred $ 0.9 million of costs for services provided and employees seconded to the Service Recipients, all of which are reimbursable to us and included in due from related party on the consolidated balance sheets.

During the three and six months ended June 30, 2026, we incurred $ 0.9 million and $ 1.8 million, respectively, and, during the three and six months ended June 30, 2025, we incurred $ 1.0 million and $ 1.9 million, respectively, of costs for services provided and employees seconded to the Service Recipients, all of which are reimbursable to us and included in due from related party on the consolidated balance sheets.

Other Related Party Transactions.

Due from related party was $ 35.3 million and $ 6.5 million at March 31, 2026 and December 31, 2025, respectively, which consisted primarily of amounts due from our affiliated servicing operations related to real estate transactions closing at the end of the quarter and amounts due from ACM for costs incurred in connection with the support and secondment agreements described above.

Due to related party was $ 1.8 million and $ 0.5 million at March 31, 2026 and December 31, 2025, respectively, and consisted of loan settlements, holdbacks and escrows to be remitted to our affiliated servicing operations related to real estate transactions.

Investments in equity affiliates, which represent related parties under GAAP, and their related disclosures, are included in Note 8.

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Pursuant to the agreement, we reimburse the aircraft owner for the required costs under Federal Aviation Administration regulations for the flights our executives take.

For certain flights, we also charter the aircraft from a certificated air carrier for use of the same aircraft.

Beginning in 2026, for certain flights, we also charter the aircraft from a certificated air carrier for use of the same aircraft.

The air carrier provides charter revenue back to the aircraft owner when we use the aircraft.

During the three months ended March 31, 2026 and 2025, we reimbursed the aircraft owner $ 0.2 million and $ 0.3 million, respectively, for flights taken by our executives pursuant the time-sharing agreement.

There were no charter flights taken in the three months ended March 31, 2026 and 2025.

In November 2025, we originated a $ 67.9 million bridge loan for the acquisition of a multifamily property purchased by a joint venture we formed with ACM, an entity owned by an immediate family member of our chief executive officer and a consortium of independent outside investors, we refer to as "Clarus Berkley," which was formed to purchase and operate the property.

During the three and six months ended June 30, 2026, we reimbursed the aircraft owner $ 0.2 million and $ 0.4 million, respectively, and during the three and six months ended June 30, 2025, we reimbursed the aircraft owner $ 0.7 million and $ 0.9 million, respectively, for flights taken by our executives pursuant to the time-sharing agreement.

During both the three and six months ended June 30, 2026, we reimbursed the aircraft owner $ 0.6 million, for the flights chartered by our executives pursuant to the agreement.

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outside investors, we refer to as "Clarus Berkley," which was formed to purchase and operate the property.

We contributed $ 1.5 million, for a 3.6 % interest in the borrowing entity, while ACM and the entity owned by an immediate family member of our chief executive officer contributed a combined $ 1.8 million for a 4.3 % interest in the borrowing entity.

The loan has an interest rate of SOFR plus 2.50 % with a SOFR floor of 2.50 % and matures in November 2028.

Interest income recorded from this loan was $ 1.1 million for the three months ended March 31, 2026.

Interest income recorded from this loan was $ 1.1 million and $ 2.2 million for the three and six months ended June 30, 2026, respectively.

See Note 8 for further details.

In November 2025, we committed to fund a $ 44.8 million bridge loan ( none was funded at March 31, 2026) in an SFR BTR construction project.

In November 2025, we committed to fund a $ 44.8 million bridge loan ($ 2.3 million was funded at June 30, 2026) in an SFR BTR construction project.

An entity owned by an immediate family member of our chief executive officer also made an equity investment in the project, representing less than 1.0 % of the total equity invested.

The loan has an interest rate of SOFR plus 4.25 % with a SOFR floor of 3.50 % and matures in November 2028, with a one-year extension option.

In October 2025, we committed to fund a $ 50.5 million bridge loan ( none was funded at March 31, 2026) in an SFR BTR construction project.

Interest income recorded from this loan was less than $ 0.1 million for both the three and six months ended June 30, 2026.

In October 2025, we committed to fund a $ 50.5 million bridge loan ($ 3.9 million was funded at June 30, 2026) in an SFR BTR construction project.

ACM and an entity owned by an immediate family member of our chief executive officer also made equity investments in the project, representing in the aggregate 4.6 % of the total equity invested.

The loan has an interest rate of SOFR plus 4.25 % with a SOFR floor of 3.50 % and matures in October 2028, with a one-year extension option.

Interest income recorded from this loan was less than $ 0.1 million for both the three and six months ended June 30, 2026.

In August 2025, we originated a $ 4.0 million bridge loan for the acquisition of a condominium complex, of which one of our directors is the co-chief executive officer and president of an entity that is an indirect owner of the borrower.

The loan has an interest rate of SOFR plus 3.25 % with a SOFR floor of 4.32 % and matures in August 2026.

Interest income recorded from this bridge loan was less than $ 0.1 million for the three months ended March 31, 2026.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

In May 2025, we refinanced a $ 32.5 million bridge loan with a new $ 43.0 million bridge loan for an SFR BTR construction project that matures in May 2026.

Interest income recorded from this bridge loan was less than $ 0.1 million and $ 0.2 million for the three and six months ended June 30, 2026, respectively.

In May 2025, we refinanced a $ 32.5 million bridge loan with a new $ 43.0 million bridge loan for an SFR BTR construction project that was scheduled to mature in May 2026, which was extended to July 2026.

In 2020, we also made a $ 3.5 million preferred equity investment in the same project, of which $ 1.2 million was paid off in May 2025.

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The interest on the old loan was SOFR plus 3.75 % with a SOFR floor of 0.75 % and the interest rate of the new loan is SOFR plus 3.00 % with a SOFR floor of 3.25 %.

The preferred equity investment has a 12.00 % fixed rate and was scheduled to mature in May 2025, which was extended to May 2026.

The preferred equity investment has a 12.00 % fixed rate and was scheduled to mature in May 2026, which was extended to July 2026.

In connection with the extension, the borrower paid deferred interest of $ 1.9 million.

Interest income recorded from these loans was $ 0.8 million and $ 1.0 million for the three months ended March 31, 2026 and 2025, respectively.

In July 2026, the outstanding bridge loan and preferred equity investment paid off in full, including all back interest owed.

Interest income recorded from these loans was $ 0.6 million and $ 1.4 million for the three and six months ended June 30, 2026, respectively, and $ 1.0 million and $ 2.0 million for the three and six ended June 30, 2025, respectively.

In May 2025, we refinanced a $ 30.5 million bridge loan with a new $ 36.2 million bridge loan, for an SFR BTR construction project.

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The interest rate on the old loan was SOFR plus 4.25 % with a SOFR floor of 1.00 % and the interest rate on the new loan is SOFR plus 3.00 % with a SOFR floor of 3.25 %.

The new loan was scheduled to mature in November 2025, which was extended to May 2026.

The preferred equity investment has a 12.00 % fixed rate and was scheduled to mature in November 2025, which was extended to May 2026.

The new loan was scheduled to mature in May 2026, which was extended to July 2026.

The preferred equity investment has a 12.00 % fixed rate and was scheduled to mature in May 2026, which was extended to July 2026.

In connection with the extension, the borrower paid deferred interest of $ 1.3 million.

Interest income recorded from these loans was $ 0.7 million and $ 1.0 million for the three months ended March 31, 2026 and 2025, respectively.

In July 2026, the outstanding bridge loan and preferred equity investment paid off in full, including all back interest owed.

Interest income recorded from these loans was $ 0.5 million and $ 1.2 million for the three and six months ended June 30, 2026, respectively, and $ 0.9 million and $ 1.9 million for the three and six months ended June 30, 2025, respectively.

In May 2025, we refinanced a $ 56.9 million bridge loan with a new $ 58.4 million bridge loan for an SFR BTR construction project.

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Interest on the new loan decreased from SOFR plus 5.50 % with a SOFR floor of 3.25 % to SOFR plus 2.75 % with a SOFR floor of 3.50 % and matures in May 2027.

Interest income recorded from this loan was $ 1.0 million and $ 1.4 million for the three months ended March 31, 2026 and 2025, respectively.

In February 2025, we refinanced a $ 46.2 million bridge loan we purchased from ACM in 2022 with a new $ 52.6 million bridge loan ($ 31.3 million was funded at March 31, 2026) for an SFR BTR construction project.

Interest income recorded from the loans was $ 1.0 million and $ 2.0 million for the three and six months ended June 30, 2026, respectively, and $ 1.2 million and $ 2.6 million for the three and six months ended June 30, 2025, respectively.

In February 2025, we refinanced a $ 46.2 million bridge loan we purchased from ACM in 2022 with a new $ 52.6 million bridge loan ($ 40.5 million was funded at June 30, 2026) for an SFR BTR construction project.

A consortium of investors (which includes, among other unaffiliated investors, certain of our officers with a minority ownership interest) owns 70 % of the borrowing entity and an entity indirectly owned and controlled by an immediate family member of our chief executive officer owns 10 % of the borrowing entity.

Interest on the new loan decreased from SOFR plus 5.50 % to SOFR plus 4.75 % and matures in February 2027.

Interest income recorded from this loan was $ 0.7 million and $ 0.2 million for the three months ended March 31, 2026 and 2025, respectively.

In 2024, we committed to fund a $ 62.4 million bridge loan ($ 28.5 million was funded at March 31, 2026) in an SFR BTR construction project.

Interest income recorded from the loans was $ 0.9 million and $ 1.5 million for the three and six months ended June 30, 2026, respectively, and $ 0.3 million and $ 0.6 million for the three and six months ended June 30, 2025, respectively.

ARBOR REALTY TRUST, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

In 2024, we committed to fund a $ 62.4 million bridge loan ($ 31.2 million was funded at June 30, 2026) in an SFR BTR construction project.

An entity owned by an immediate family member of our chief executive officer also made an equity investment in the project and owns a 3.34 % equity interest in the borrowing entity.

The loan has an interest rate of SOFR plus 4.25 % with a SOFR floor of 3.50 % and matures in July 2027.

Interest income recorded from this loan was $ 0.6 million and $ 0.1 million for the three months ended March 31, 2026 and 2025, respectively.

In 2024, we committed to fund a $ 42.5 million bridge loan ($ 33.1 million was funded at March 31, 2026) in an SFR BTR construction project.

Interest income recorded from this loan was $ 0.7 million and $ 1.3 million for the three and six months ended June 30, 2026, respectively, and $ 0.2 million and $ 0.3 million for the three and six months ended June 30, 2025, respectively.

In 2024, we committed to fund a $ 42.5 million bridge loan ($ 38.4 million was funded at June 30, 2026) in an SFR BTR construction project.

An entity owned by an immediate family member of our chief executive officer also made an equity investment in the project and owns a 2.28 % equity interest in the borrowing entity.

The loan has an interest rate of SOFR plus 4.25 % with a SOFR floor of 3.50 % and matures in May 2027.

Interest income recorded from this loan was $ 0.6 million and $ 0.2 million for the three months ended March 31, 2026 and 2025, respectively.

In 2022, we committed to fund a $ 67.1 million bridge loan ($ 55.0 million was funded at March 31, 2026) in an SFR BTR construction project.

Interest income recorded from this loan was $ 0.8 million and $ 1.4 million for the three and six months ended June 30, 2026, respectively, and $ 0.3 million and $ 0.4 million for the three and six months ended June 30, 2025, respectively.

In 2022, we committed to fund a $ 67.1 million bridge loan ($ 55.0 million was funded at June 30, 2026) in an SFR BTR construction project.

An entity owned by an immediate family member of our chief executive officer also made an equity investment in the project and owns a 2.25 % equity interest in the borrowing entity.

The loan has an interest rate of SOFR plus 4.63 % with a SOFR floor of 0.25 % and was scheduled to mature in May 2026, which was extended to May 2027.

Interest income recorded from this loan was $ 1.2 million and $ 1.0 million for the three months ended March 31, 2026 and 2025, respectively.

In 2022, we funded a $ 39.4 million bridge loan in an SFR BTR construction project.

Interest income recorded from this loan was $ 1.2 million and $ 2.4 million for the three and six months ended June 30, 2026, respectively, and $ 1.1 million and $ 2.1 million for the three and six months ended June 30, 2025, respectively.

In 2022, we committed to fund a $ 39.4 million bridge loan in an SFR BTR construction project.

An entity owned by an immediate family member of our chief executive officer also made an equity investment in the project and owns a 2.25 % equity interest in the borrowing entity.

The loan has an interest rate of SOFR plus 4.00 % with a SOFR floor of 0.25 % and was scheduled to mature in March 2026, which was extended to March 2027.

Interest income recorded from this loan was $ 0.8 million and $ 0.7 million for the three months ended March 31, 2026 and 2025, respectively.

In April 2026, the bridge loan was paid off.

Interest (loss) income recorded from this loan was $( 0.1 ) million and $ 0.7 million for the three and six months ended June 30, 2026, respectively, and $ 0.8 million and $ 1.5 million for the three and six months ended June 30, 2025, respectively.

The interest loss recorded during the three months ended June 30, 2026 was primarily attributable to the waiver of a previously accrued exit fee in connection with the loan.

In 2021, we invested $ 4.2 million for 49.3 % interest in a limited liability company (“LLC”) which purchased a retail property for $ 32.5 million and assumed an existing $ 26.0 million CMBS loan.

A portion of the property can potentially be converted to office space, of which we have the right to occupy, in part.

An entity owned by an immediate family member of our chief executive officer also made an

ARBOR REALTY TRUST, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

investment in the LLC for a 10 % ownership, is the managing member and holds the right to purchase our interest in the LLC.

In April 2026, we sold our interest in the LLC for $ 4.2 million.

An entity owned by an immediate family member of our chief executive officer also made an investment in the LLC for a 10 % ownership, is the managing member and holds the right to purchase our interest in the LLC.

In 2020, we originated a $ 14.8 million Private Label loan and a $ 3.4 million mezzanine loan on two multifamily properties owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns a 50 % interest in the borrowing entity.

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The mezzanine loan has a fixed interest rate of 9.00 % and matures in April 203 0.

Interest income recorded from the mezzanine loan was less than $ 0.1 million and $ 0.1 million for the three months ended March 31, 2026 and 2025, respectively.

Interest income recorded from the mezzanine loan was less than $ 0.1 million and $ 0.2 million for the three and six months ended June 30, 2026, respectively, and $ 0.1 million and $ 0.2 million for the three and six months ended June 30, 2025, respectively.

In 2019, we, along with ACM, certain executives of ours and a consortium of independent outside investors, formed AMAC III, a multifamily-focused commercial real estate investment fund sponsored and managed by our chief executive officer and one of his immediate family members.

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In 2020, for full satisfaction of the mezzanine loan, AMAC III became the owner of the property.

Also in 2020, the $ 34.0 million bridge loan was refinanced with a $ 35.4 million bridge loan, which has an interest rate of SOFR plus 3.50 %, and was scheduled to mature in February 2025.

In February 2025, we modified this loan to extend the maturity to February 2028 in exchange for a $ 2.0 million paydown that was made in the first quarter of 2025.

In September 2025, the loan was modified to extend the maturity date to July 2028, adjust the interest rate to SOFR plus 1.00 % with an all-in floor of 6.50 %, and include a fixed pay rate of 1.00 %, effective June 1, 2025, with the remaining balance deferred.

Interest income recorded from the bridge loan was less than $ 0.1 million and $ 0.7 million for the three months ended March 31, 2026 and 2025, respectively.

Also in 2020, the $ 34.0 million bridge loan was refinanced with a $ 35.4 million bridge loan, which has an interest rate of SOFR plus 3.50 %, and was scheduled to mature in February 2025 that we modified to extend the maturity to February 2028 in exchange for a $ 2.0 million paydown that was made in the first quarter of 2025.

In September 2025, the loan was modified to extend the maturity to July 2028, adjust the interest rate to SOFR plus 1.00 % with an all-in floor of 6.50 %, and include a fixed pay rate of 1.00 %, effective June 1, 2025, with the remaining balance deferred.

Interest income recorded from the bridge loan was less than $ 0.1 million and $ 0.2 million for the three and six months ended June 30, 2026, respectively, and $ 0.7 million and $ 1.3 million for the three and six months ended June 30, 2025, respectively.

See Note 8 for further details.

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The loan was scheduled to mature in May 2025, which was extended to February 2029.

Interest income recorded from this loan was less than $ 0.1 million and $ 0.1 million for the three months ended March 31, 2026 and 2025, respectively.

Interest income recorded from this loan was less than $ 0.1 million and $ 0.1 million for the three and six months ended June 30, 2026, respectively, and less than $ 0.1 million and $ 0.1 million for the three and six months ended June 30, 2025, respectively.

In 2018, we originated a $ 21.7 million bridge loan on a multifamily property owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owned 75 % in the borrowing entity.

The loan had an interest rate of SOFR plus 4.75 % with a SOFR floor of 0.25 %, and was scheduled to mature in February 2025, which was modified to extend the maturity to February 2027 in exchange for $ 3.0 million of additional collateral and a $ 2.5 million paydown to be made in February 2026.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

loan had an interest rate of SOFR plus 4.75 % with a SOFR floor of 0.25 %, and was scheduled to mature in February 2025, which was modified to extend the maturity to February 2027 in exchange for $ 3.0 million of additional collateral and a $ 2.5 million paydown to be made in February 2026.

In 2024, we recorded a $ 5.5 million specific reserve on this loan.

In September 2025, this loan paid off and we fully recovered the specific reserve recorded.

Interest income recorded from this loan was $ 0.5 million for the three months ended March 31, 2025.

Interest income recorded from this loan was $ 0.5 million and $ 1.0 million for the three and six months ended June 30, 2025, respectively.

In 2017, we originated a $ 46.9 million Fannie Mae loan on a multifamily property owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers) which owns a 17.6 % interest in the borrowing entity.

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The loan was paid off in October 2025.

Servicing revenue recorded from this loan was less than $ 0.1 million for the three months ended March 31, 2025.

Servicing revenue recorded from this loan was less than $ 0.1 million for the three and six months ended June 30, 2025, respectively.

In 2015, we invested $ 9.6 million for 50 % of ACM’s indirect interest in a joint venture with a third party that was formed to invest in a residential mortgage banking business.

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The first two installments were made in April 2025, for which we received $ 5.6 million as our allocable share, and the final installment was made in July 2025 for which we received $ 16.4 million as our allocable share.

See Note 8 for further details.

We, along with an executive officer of ours and a consortium of independent outside investors, hold equity investments in a portfolio of multifamily properties referred to as the “Lexford” portfolio, which is managed by an entity owned primarily by a consortium of affiliated investors, including our chief executive officer and an executive officer of ours.

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ACM owns slightly less than half of the unsecured lender entity and, therefore, provided slightly less than half of the unsecured lender financing.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Separate from the loans we originated in 2018, we provide limited (“bad boy”) guarantees for certain other debt controlled by Lexford.

The bad boy guarantees may become a liability for us upon standard “bad” acts such as fraud or a material misrepresentation by Lexford or us.

At March 31, 2026, this debt had an aggregate outstanding balance of approximately $ 296.0 million and is scheduled to mature through 2029.

At June 30, 2026, this debt had an aggregate outstanding balance of approximately $ 295.0 million and is scheduled to mature through 2029.

See Note 8 for further details.

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Furthermore, one of our directors serves as the trustee and co-trustee of two of the Kaufman Entities that hold membership interests in ACM.

At March 31, 2026, ACM holds 2,535,870 shares of our common stock and 10,483,930 OP Units, which represents 6.2 % of the voting power of our outstanding stock.

At June 30, 2026, ACM holds 2,535,870 shares of our common stock and 10,483,930 OP Units, which represents 6.3 % of the voting power of our outstanding stock.

Our Board of Directors approved a resolution under our charter allowing our chief executive officer and ACM, (which our chief executive officer has a controlling equity interest in), to own more than the 5 % ownership interest limit of our common stock as stated in our amended charter.

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As described in Note 1, we operate through two business segments – our Structured Business and our Agency Business.

The summarized statements of income and balance sheet data, as well as certain other data, by segment are included in the following tables ($ in thousands).

The summarized statements of operations and balance sheet data, as well as certain other data, by segment are included in the following tables ($ in thousands).

Specifically identifiable costs are recorded directly to each business segment.

For items not specifically identifiable, costs have been allocated between the business segments using the most meaningful allocation methodologies, which was predominately direct labor costs (i.e., time spent working on each business segment).

For items not specifically identifiable, costs have been allocated between the business segments using the most meaningful allocation methodologies, which were predominately direct labor costs (i.e., time spent working on each business segment).

Such costs include, but are not limited to, compensation and employee related costs, selling and administrative expenses and stock-based compensation.

Intersegment revenue and expenses have been eliminated in the computation of total revenue and operating income.

Intersegment revenue and expenses have been eliminated in the computation of total revenue and operating income (loss).

Our chief operating decision maker (“CODM”) is Ivan Kaufman, our chief executive officer.

The CODM uses both net interest income and net income for each segment predominantly in the annual budget and forecasting process.

The CODM uses both net interest income and net income (loss) for each segment predominantly in the annual budget and forecasting process.

The CODM considers both budget and actual results on a quarterly basis for both profit measures when making decisions about the allocation of operating and capital resources to each segment.

The CODM also uses segment net interest income and net income to assess the performance of each segment by comparing the results of each segment with one another and in determining the compensation of certain employees.

Three Months Ended March 31, 2026

The CODM also uses segment net interest income and net income (loss) to assess the performance of each segment by comparing the results of each segment with one another and in determining the compensation of certain employees.

Three Months Ended June 30, 2026

Business Agency

9 unchanged sentences

Property operating income 8,313 — — 8,313

Loss on derivative instruments, net — ( 493 ) — ( 493 )

Other income (loss), net 2,223 ( 149 ) — 2,074

Gain on derivative instruments, net — 1,041 — 1,041

Other income, net 1,638 622 — 2,260

Total other revenue 9,951 52,828 — 62,779

9 unchanged sentences

Total other expenses 97,038 47,810 — 144,848

(Loss) income before gain on real estate, income from equity affiliates and income taxes ( 39,942 ) 10,970 — ( 28,972 )

Gain on real estate 64 — — 64

Income from equity affiliates 1,893 — — 1,893

Provision for income taxes ( 626 ) ( 2,524 ) — ( 3,150 )

Net (loss) income ( 38,611 ) 8,446 — ( 30,165 )

Preferred stock dividends 10,342 — — 10,342

Net loss attributable to noncontrolling interest — — ( 3,165 ) ( 3,165 )

Net (loss) income attributable to common stockholders $ ( 48,953 ) $ 8,446 $ 3,165 $ ( 37,342 )

ARBOR REALTY TRUST, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Three Months Ended June 30, 2025

Business Agency

Business Other (1) Consolidated

Interest income $ 229,980 $ 10,323 $ — $ 240,303

Interest expense 165,858 5,720 — 171,578

Net interest income 64,122 4,603 — 68,725

Other revenue:

Gain on sales, including fee-based services, net — 13,658 — 13,658

Mortgage servicing rights — 10,930 — 10,930

Servicing revenue — 45,204 — 45,204

Amortization of MSRs — ( 17,767 ) — ( 17,767 )

Property operating income 5,452 — — 5,452

Gain on derivative instruments, net — 219 — 219

Other income, net 2,105 1,884 — 3,989

Total other revenue 7,557 54,128 — 61,685

Other expenses:

Employee compensation and benefits 16,018 20,905 — 36,923

Commissions — 4,258 — 4,258

Selling and administrative 7,590 7,269 — 14,859

Property operating expenses 6,802 — — 6,802

Depreciation and amortization 5,456 392 — 5,848

Provision for loss sharing, net — 4,215 — 4,215

Provision for credit losses 16,112 2,892 — 19,004

Total other expenses 51,978 39,931 — 91,909

Income before loss on real estate, income from equity affiliates and income taxes 19,701 18,800 — 38,501

1 unchanged sentence

Income from equity affiliates 2,654 — — 2,654

Benefit from (provision for) income taxes 83 ( 2,168 ) — ( 2,085 )

Provision for income taxes ( 1,277 ) ( 2,121 ) — ( 3,398 )

Net income 19,630 16,679 — 36,309

1 unchanged sentence

Net income attributable to noncontrolling interest — — 2,015 2,015

Net income attributable to common stockholders $ 9,288 $ 16,679 $ ( 2,015 ) $ 23,952

ARBOR REALTY TRUST, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Six Months Ended June 30, 2026

Business Agency

Business Other (1) Consolidated

Interest income $ 443,605 $ 22,300 $ — $ 465,905

Interest expense 342,881 10,082 — 352,963

Net interest income 100,724 12,218 — 112,942

Other revenue:

Gain on sales, including fee-based services, net — 27,681 — 27,681

Mortgage servicing rights — 21,770 — 21,770

Servicing revenue — 86,159 — 86,159

Amortization of MSRs — ( 36,540 ) — ( 36,540 )

Property operating income 16,373 — — 16,373

Gain on derivative instruments, net — 548 — 548

Other income, net 3,865 471 — 4,336

Total other revenue 20,238 100,089 — 120,327

Other expenses:

Employee compensation and benefits 37,529 46,487 — 84,016

Commissions — 8,763 — 8,763

Selling and administrative 17,419 15,402 — 32,821

Property operating expenses 24,635 — — 24,635

Depreciation and amortization 12,250 783 — 13,033

Impairment loss on real estate owned 26,150 — — 26,150

Provision for loss sharing, net — 18,009 — 18,009

Provision for loan losses, net 41,889 2,090 — 43,979

Total other expenses 159,872 91,534 — 251,406

(Loss) income before loss on real estate, income from equity affiliates and income taxes ( 38,910 ) 20,773 — ( 18,137 )

Loss on real estate ( 2,073 ) — — ( 2,073 )

Income from equity affiliates 6,304 — — 6,304

Provision for income taxes ( 544 ) ( 4,691 ) — ( 5,235 )

Net (loss) income ( 35,223 ) 16,082 — ( 19,141 )

Preferred stock dividends 20,684 — — 20,684

Net loss attributable to noncontrolling interest — — ( 3,112 ) ( 3,112 )

Net (loss) income attributable to common stockholders $ ( 55,907 ) $ 16,082 $ 3,112 $ ( 36,713 )

2 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

Business Agency

21 unchanged sentences

Total other expenses 95,047 77,290 — 172,337

Income before extinguishment of debt, loss on real estate, loss from equity affiliates and income taxes 31,904 21,832 — 53,736

Income before extinguishment of debt, loss on real estate, income from equity affiliates and income taxes 51,605 40,631 — 92,236

Loss on extinguishment of debt ( 2,319 ) — — ( 2,319 )

Loss on real estate ( 4,258 ) — — ( 4,258 )

Loss from equity affiliates ( 1,634 ) — — ( 1,634 )

Benefit from (provision for) income taxes 639 ( 4,230 ) — ( 3,591 )

Income from equity affiliates 1,020 — — 1,020

Provision for income taxes ( 639 ) ( 6,350 ) — ( 6,989 )

Net income 45,409 34,281 — 79,690

3 unchanged sentences

________________________

(1) Includes income allocated to the noncontrolling interest holders not allocated to the two reportable segments.

(1) Includes income (loss) allocated to the noncontrolling interest holders not allocated to the two reportable segments.

ARBOR REALTY TRUST, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

March 31, 2026

June 30, 2026

Structured Business Agency Business Consolidated

8 unchanged sentences

Goodwill and other intangible assets 12,500 73,270 85,770

Other assets and due from related party 387,609 74,550 462,159

Other assets 345,603 94,800 440,403

Total assets $ 13,063,990 $ 1,288,835 $ 14,352,825

1 unchanged sentence

Allowance for loss-sharing obligations — 118,898 118,898

Other liabilities and due to related parties 212,622 64,777 277,399

Other liabilities 211,266 83,048 294,314

Total liabilities $ 10,910,579 $ 561,223 $ 11,471,802

9 unchanged sentences

Goodwill and other intangible assets 12,500 74,053 86,553

Other assets and due from related party 382,735 78,231 460,966

Other assets 382,735 78,231 460,966

Total assets $ 13,045,786 $ 1,449,117 $ 14,494,903

1 unchanged sentence

Allowance for loss-sharing obligations — 97,579 97,579

Other liabilities and due to related parties 241,873 72,849 314,722

Other liabilities 241,873 72,849 314,722

Total liabilities $ 10,866,926 $ 560,824 $ 11,427,750

2 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2026 2025 2026 2025

Origination Data:

32 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

March 31, 2026

June 30, 2026

Key Servicing Metrics for Agency Business:

18 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-Q

Item 1. Financial Statements