Arbor Realty Trust : Q3 2020 November Investor Presentation 1.7 MB

ARBOR REALTY TRUST

INVESTOR PRESENTATION

Third Quarter Ended September 30, 2020

CONFIDENTIAL

November 2020

Forward-Looking Statements

Certain items in this presentation may constitute forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including information about possible, anticipated or assumed future results of our business, our financial condition, liquidity, results of operations, plans and objectives. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Arbor can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from Arbor's expectations include, but are not limited to, changes in economic conditions generally, and the real estate markets specifically, in particular, due to the uncertainties created by the COVID-19 pandemic, continued ability to source new investments, changes in interest rates and/or credit spreads, and other risks detailed in Arbor's Annual Report on Form 10-K for the year ended December 31, 2019 and its other reports filed with the SEC. Such forward-looking statements speak only as of the date of this presentation. Arbor expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Arbor's expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.

This presentation includes certain non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not as a substitute for, or superior, to measures of financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalent. For example, other companies may calculate such non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of these non-GAAP financial measures as tools for comparison. Additionally, as required by Regulation G, a reconciliation of core earnings (introduced in Q1 2020), to net income, the most directly comparable GAAP measure, is available in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2020. Prior period core earnings amounts included on page 11 have been conformed to reflect this change.

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Arbor Realty Trust - Valued Franchise

• Arbor Realty Trust is an internally managed REIT with a versatile multifamily-centric operating platform and a unique business model, consisting of three primary business platforms:
• • Balance sheet loan origination
  • GSE/Agency loan origination
  • Servicing
• Complementary operating platforms with diversified and recurring streams with a proven track record for growth:
• • Capital light GSE/Agency business generating significant earnings and cash flows
  • Primary focus on small balance loans in the highly attractive and stable multifamily sector
  • Industry leading ROE's and annualized shareholder returns
  • 9 consecutive years of consistent dividend growth, including two consecutive increases during the pandemic in 2020
  • Strong liquidity position of ~$500M at October 30, 2020
  • Prudent leverage and balance sheet strategy with stable liability

structures that are long dated, non-recourse and non-mark-to-market

• Led by a cycle tested senior management team with 30+ years of industry experience and ~19% ownership

~$22.6B

Servicing

Portfolio1

522

Employees1

~$5.1B

Investment Portfolio1

19%

YTD Return on Equity

1. As of September 30, 2020.	3

Arbor's Unique Business Model Provides Substantial Competitive Advantages

Drives GSE/Agency Business

On-Balance-	Agency
Origination /
Sheet Lender	Servicing
	Platforms
	Structured Loan Opportunities

 Strong risk-adjusted returns	
 Drives GSE/Agency pipeline once loans are eligible	
 Match-funded with CLOs that are long dated, non-	
recourse and non-mark-to-market
Combined Benefits

High ROE/capital-light

Long-dated servicing fees

High barriers to entry

• One stop shop for multifamily borrowers offering flexible lending solutions with enhanced certainty and speed of execution
• Safety and growth of dividend combining benefits from both mortgage REIT and GSE/Agency platform

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