Arbor Realty’s Revenue Breakdown (2016-2023)

This statistic highlights Arbor Realty’s Revenue Breakdown, split across Agency Business and Structured Business, reported quarterly from Q1 2016 onwards.

Arbor Realty’s Revenue Breakdown:            

(All figures in billions, except percentages)

Agency Business

Agency business refers to the specific aspect of their operations which involves working as an intermediary between borrowers and government-sponsored enterprises. The key aspects of agency business are loan origination and loan servicing.

• Loan Origination: Loan origination means it originates loans on behalf of borrowers who look for financing for their multifamily and commercial properties. They evaluate the borrower’s financials, and property analysis and underwrite the loan application. It is to ensure that the loans meet the specific requirements and guidelines set by government-sponsored enterprises.
• Loan Servicing: Loan servicing means it manages the loan portfolio, handles escrow accounts, collects loan payments, and provides customers support to borrowers throughout the life of the loan.

The Agency business of the company is increasing from quarter to quarter in 2022. In Q4 2022, the Agency business was $202.9 million which is higher than compared to Q3 2022 and it contributed to 45% of its total revenue. The Agency business is rising because there is an increased demand for the services provided by a company such as lending for multifamily properties, which could lead to growth in the agency business.

Structured Business

Structured Business refers to the creation and management of structured finance transactions. Structured finance refers to the process of combining various financial assets, such as mortgages, loans, or other debt instruments into a single security that can be bought and sold in the financial markets. The key aspects of structured business are loan origination and investment activities.

• Loan Origination: The loan origination of Arbor realty trust means it originates loans for various types of properties, including commercial properties, multifamily residential buildings, and healthcare facilities.
• Investment Activities: In addition to originating loans, Arbor realty trust may also invest in real estate assets directly. It may acquire properties, either for redevelopment or income generation, or invest in joint ventures and partnerships with other real estate firms.

In Q4 2022, the company experienced a slight decrease in the average balance of its loan and investment portfolio and it contributed to 54% of its total revenue.

About Arbor Realty Trust

Arbor Realty Trust Inc. was founded in 2003 and it’s headquartered in Uniondale, New York. It is a real estate investment trust company that provides a wide range of financial services like mortgage loans, preferred loans, and mezzanine loans. It mainly focuses on providing debt capital for multifamily and commercial real estate properties such as office buildings, apartment buildings, hotels, malls, warehouses, and retail centers.

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