The Real Deal New York

Arbor Realty Trust reports $1.4M net loss

November 05, 2010 06:15PM
By David Jones

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Ivan Kaufman, CEO of Arbor Realty

Arbor Realty Trust said it narrowed its third-quarter losses, as the lender continued efforts to retool its balance sheet following the collapse of the commercial real estate market.

The Manhattan-based real estate investment trust reported a net loss of $1.4 million, or 6 cents a share in the quarter ending Sept. 30, compared with a loss of $44.1 million, or $1.74 a share in the year-ago quarter.

For the first nine months of 2010, net income was $154.1 million, or $6.03 per share, compared with a net loss of $96.9 million, or $3.83 a share in the year ago period.

The lender recorded $15.2 million in loan loss reserves related to 11 loans worth $188.3 million, which was calculated based on the operating status of the properties, current market conditions and real estate values. The lender also reported 10 non-performing loans with a value of $53.1 million.

Arbor Realty officials said they expect to cautiously expand the amount of lending, while continuing to raise cash and retire debt.

“Our strategy going forward is combined value from our legacy assets, enhance the yield in our portfolio and begin the process of selectively lending and investing in the appropriate opportunities,” said Ivan Kaufman, CEO of Arbor Realty.

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