ABR - Earnings call transcript Q3 2020 | Arbor Realty Trust, Inc.

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Operator

Good morning, ladies and gentlemen and welcome to the Third Quarter Arbor Realty Trust Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be question-and-answer session. [Operator Instructions] I would now like to turn the call over to your speaker today, Paul Elenio, Chief Financial Officer. Please begin, sir.

Paul Elenio

Okay. morning, Arbor welcome Realty good earnings the and for call Trust. you everyone to and quarterly Thank This morning we quarter ended will discuss the XX, results XXXX. June for the and is With Kaufman, call on Officer. today me our the President Chief Executive Ivan

based of publicly Arbor’s in in you information Before are today. in statements assumed as about forward-looking cautioned that possible information expectations statements after Arbor this statements are our plans performance that these obligation reliance and to I turn financial we risks and objectives. of to are to beliefs, Listeners only no results us. these condition, results to liquidity, events deemed made the from our of reports. expectations to statements, are unanticipated maybe or statements that assumptions subject to our results taking call and begin, operations, CEO, forward-looking need detailed Kaufman. These into statements place currently not Factors on call I or undue of Arbor’s our undertakes forward-looking will occurrences today on these future or differ to business, speak events. now actual SEC Ivan account which materially cause over inform earnings the uncertainties future including forward-looking of reflect to and the President update or revise circumstances available

Ivan Kauffman

the times. joining so to your call. complexities effects us Paul and all and during safe we today’s country the hope We for continue you, deal of you these to participation our families on realize everyone that world the and are healthy. challenging appreciate Thank COVID and and and thanks with that We your entire difficulties

the last few As we very in well we calls, positioned economic discussed climate. succeed to on current are have our

many cycle. stable diversified GSE with active have built and asset the generate that strong agency and balance income and sheet, a operating strong dividends very a platform viable an on structures, every business core liability earnings market class focusing right We streams liquidity, in

had a growth, which clearly that We has many us commercial our performing results REIT continued ourselves of quarter our in also another a and third strategy model record top and have diverse quarter We diversified developed successful reflecting commitment platform allowed with provides a developed. have business space. to the business puts in the and a mortgage by be we class us opportunities for execution

third dividend our our so industry $X.XX to quarter Our us around a to continued increase, once ratio quarterly XX%. increase of year average of to results again and remarkable a second dividend consecutive X% reflecting momentum payout is represents an XX% This compared share. and allowed this increase truly have XX% a far

share, and As our was the franchise third per have we accomplishment Paul will true income in detail, the $X.XX streams for is our testament incredible and quarter many the created. to a an earnings discuss core more which value of diverse

servicing growth residential fees, business, income agency the many We of our and continue position with continues substantial expenses. to to from of our our pipeline quality and increased of margins from strong credit strong benefits able few reduction very in focused platform a delinquencies general benefits balance from benefits unique significant combined reductions produce to continue low and produce and that recurring multi-family portfolio areas our puts continued business, overhead And portfolios with us originations, significant these sheet size in diverse to to our stock platform, be allowed And substantial dividends, if to again would projected Prior are to based extremely forbearances price we administrative core and appreciation. dividend forward this we – the strong which stock XX% to in and above our our trading including strong great result and current GSE X%, and us a our The our of we growth and price. significant again shareholders performance realize core resiliency yesterday’s based this once and an the value in share. on were now dividend, realize reflects outlooks a for performance we $XX strong in should yield to lower has which a excel going applied of dividend, we substantial environment. our yield a much levels to on opportunity that our closing those pandemic, is be around our increase trading earnings positioned of appropriately and and strong earnings core believe at feel scale

the production expect significant and GSE income to in grow capital also our experience to by fourth loans volume approximately $X.X strong generate this continue and a billion cash very streams offer premium requires first a gain-on-sale the agency numbers, very flow. last as year, quarter result, in as strong to We the of XX% In which a XX% margins. for up environment, we a continues billion and and originated while year’s quarter platform unprecedented it is agency at agency significant third agency months our to produce We value growth is Pipeline XX% $X.X as significant as platform. long-dated GSE maintaining origination last limited X and predictable all-time annual this comparable in high period. from produces much GSE year’s likely over an our

is increased servicing generate very flow. prepayment and to XX.X% revenues, we GSE mostly also have already generate contribute to growing the provides our only and liquidity to platform, with continue billion reoccurring year, which over gives multifamily greatly our new of in origination of from high-quality a accretive million, bridge and the margins dividends. core that volume this $XX.X which $XXX offensive to will navigate us Additionally, our advantage servicing originations liquidity is our GSE we with a we report replace not loans revenues. and earnings addition have book opportunities. lending and and to grown us pleased returns generates future million year strong continue agency protected take perspective, continue combined pipeline cash of adequate capital loan to long-dated to portfolio, gain-on-sale but From with we position liquidity to This agency us are create which to current cash has This conditions, market sheet and that $XXX approximately attractive substantial allowed and servicing our levered a in run-off grow current balance

pleased We the we high-quality have sheet also appropriate structures. that liability is balance are created the financed with very with

billion Approximately, $X.X has that secured relationships billion debt. in is billion $X.X $X.X loan with. is approximately book to with different XX% non-recourse facilities warehouse of and that longstanding is by million or with Our assets balance for sheet grown and $X.X banks we that CLOs debt repurchase financed billion X and is non-mark-to-market have financed of $XXX

of also to financed cycles also is book lines this senior outperform been classes are It resilient XX% the other most significantly bridge our bank XX% assets, in portfolio importantly, are in in class financing more that asset highlight through the of all asset of and of well. Additionally, short-term continues risk all loans to and the being very multifamily facilities. greatly these CLO-eligible majority rated mitigating loans, recession as important over has is which and the these loans our

And and portfolio multifamily dislocation. portfolio great over effectively replenishment our XX% in loans this of today. no performance giving through us loan tremendous had with have ability we our interest reserves, the obligations well modifications with manage concessions portfolio, collections annual the by contained most of Additionally, our to borrowers

recession, very have we reminder, by hospitality. this the classes little affected a As been that and asset exposure as such retail have the most to

is total to Our or $XXX these exposure of approximately portfolio. approximately asset our million, classes X%

these the do be the feel point believe necessary, of that accurately any this further also of impairment value confidence, our at We which adjusted assets have material reserved $X.XX we adequately reflects will us current recession. gives impact book not that and for

outstanding forbearance through the loans $X our to since several Freddie portfolio. less loan we also X.X% last have advances we all and of cycles. for currently, to and in pleased less have servicing continue book, positive in as trends of months. summary, and in quality these and delinquent book July operating with numbers unchanged streams of of believe In forbearance is last outstanding Loans of that that which see forbearance unrecovered low centric, our requests our related we of few a which than of we agency earnings have We borrowers produce business to GSE result forbearance had the very GSE our low that handful such And multifamily October. our to billion agency core have the servicing Fannie only strength extremely $XX,XXX Mae is we We we collections, many Mac reflects around quarter. income And our portfolio of continue the $XX.X are all billion $XXX,XXX than a represent in recovered versatile advances. X% had a numbers, extremely have dividends strong and significant diversified almost platform extremely built very

shareholder going puts to primary continue and about see you forward. franchise, a for at this an current track the dividends our company believe to our us provide would take opportunities to and investment themselves. succeed and in to well-positioned results. through return financial core also the ourselves are speaks maximize now and record Paul we We and many focus in today call value. the climate the I We by a on excited economic turn will class over our earnings that in continuing believe are to we our remains levels And these long-term tremendous performance grow to

Paul Elenio

Ivan. you, Thank

approximately we or share. our earnings exceptional producing XX% of $XX indicated, results translated the first months ROEs X release have These quarter high As press and for for of record XX% million core per the of into this morning another quarter year. the $X.XX third had

of administrative earnings banking and operating As platform streams demonstrate reductions our strong confidence our agency business our several and growth of dividends. in a from to and in of aspects and on, book, income portion significant LIBOR to continue joint our in and core loan sheet continue the and our overhead our venture positive value of us benefit platform, general more including benefits great clearly expenses substantial flows importantly large and these our from diversity to gives the generate ability our in model, balance residential income Ivan touched we diverse

believe residential a recorded earlier, our of quarter. for income income mentioned we income the we pre-tax natural phenomenal and And third share the as which our to investment of $XX another last specifically tax to rates, earnings be on low approximately interest earnings result to this streams quarter as interest in rate will quarters our diversity continue largely quarter basis to environment. acts investment the forward had escrow million the quarter, meaningfully effective continued on our fourth further from historic declining $X.XX business the our a than of expecting from two investment are we the from this third banking less nature core due core and business. The As a a the seasonal emphasizes contribute of against hedge going contributed earnings to results balances. this we We

And due are in to us at Our our reserves adjusted write-downs CECL general value expecting tax largely value. significant $X.XX, not as we quarter. adjusted book book $XX This additional XX third non-cash generated basis. adding approximately was the giving back quarter September we up material approximately earlier, confidence Ivan $X.XX effective at core on X.X% point mentioned roughly this any last from earnings a is in million of

our at third The in third sales. originations and million margin and the results our to agency earnings during loan loans GSE in up business of $X.X our a X.XX% stronger $XX quarter $X.X approximately second due the which business. we quarter, mix billion business loan from X.XX% core GSE agency generated billion on in Looking to mainly Fannie sales Mae in a margins and is quarter, our the quarter, higher were margin higher compared to for FHA of

servicing rights loans, billion quarter. quarter, third As of very committed and volumes mortgage of of representing average robust the which strong X.XX%, recorded an the to In up expect to we slightly rate income pipeline we produce origination from second also for around rate mentioned, very have of we year. was X.XX% a million $XX for Ivan related $X.X MSR the the balance

years. $XX.X year. fee generate this life basis time annuity going Our last annual This million million servicing average at will of continue a forward is up to estimated same the annually, September around servicing gross X with portfolio to X.X% a points quarter grew an weighted of $XXX predictable income and remaining basis XX.X XX portfolio from of approximately billion which on of $XX an

compared the provisions, June third $X.X X.XX% debt at related portfolio total quarter $X.X operation, XX, was at The from maintenance our due the $X fees compared our for is of to prepayment due on loans for debt third cost X.XX% in second our balance quarter. balance second The quarter quarter, up $X was originations in decreased quarter Additionally, quarter to in LIBOR on the for our compared to growth. rates to $X.X and our non-performing of the million of at the X.XX% XX the decrease billion at yield quarter, the growth million our during third up quarter. second acceleration from full we our runoff mainly last rates billion facilities slightly interest new at average on mostly as assets for June facilities fees approximately in debt average sheet XX. on approximately billion to yield investment second quarter spot net quarter around all-in the this in in had higher billion funds of yield increased for X.XX% a In core the overall $X.X to cost billion September lending to compared more financing the billion core net loans. in XX. to our to quarter the quarter these rates was due new approximately approximately X.XX% the XX to for to debt non-performing for and compared third the September an cost grew to mainly and average originations from certain of originations, our third for from average The was September mainly compared during of runoff to Overall, quarter the to portfolio compared compared spread million and loans. an and investments XX effect our $X.X quarter, X.XX% impact quarter, at X.XX% investments second debt this second billion June impact all-in X.XX% $X.X of quarter slightly in $X portfolio due the interest X.XX% the as early an the was $XXX from run-off X.XX% The higher to to to X.XX% last balance spreads X.XX% down at to compared assets to the third to average a in due quarter interest to core

and on ratio any a preferred And That the you and XX% at September this questions spot Operator? core X% in as excluding overall to to this well the time. take third from remarks the second lending now to from X.X% prepared XX, X.X% came have quarter leverage to X% average the our to the back as morning. Lastly, CECL equity in general reserves. assets, XX including equity, debt preferred June our stock to it operator slightly I our basis in turn in perpetual down completes will down may quarter was XX% trust on ratios to

Operator

DeLaney you. from Thank first And Securities. Instructions] go JMP we our [Operator question with ahead. take will Please Steve

Your line open. is

Steve DeLaney

Thank you. Well, excellent congratulations once gentlemen morning, again on quarter. and good an

I not think, every that but hard to. you say have made it’s I quarter, it

Ivan Kauffman

Thanks.

Steve DeLaney

shift page and release. on I material. than and on the of towards gain agency heard a and don’t like big with Fannie’s I FHA don’t start know – But and I like see to would comments the anything Ivan. is would versus Fannie I the XXX. table at sale FHA anything. better start Paul to XXX looking book than the the on we sure, I Freddie I margin press am your better first –

something anything color sustainable more because So, a level X the and do else is number? it’s please, subtle might I is model like XXX? looking there in that, little just normal, XXX lower that. important more been that’s a years have think that am than XXX XXX last little our but you about at XXX,

Paul Elenio

Sure, Steve. Paul. It’s

XXX the quarter, to had there. last commentary up securitization in although really XXX quarter, in label of compare XXX last from we to the one because have is things the private So, I we my said you put

at around So, move label quarter. – And as XXX, which we We a originations are you of sales, are securitization, this if but been have Fannie, you shift Freddie do with you not on gain-on-sale to you XXX, know. still back you private as XXX loan it our where meaningfully to book XXX right, mentioned there a wasn’t has from really in loan sales. much the the meaningful out loan a business, versus is running

really wasn’t when been of was originations, much a bigger loan sales, FHA FHA versus in have sell timing a So, the there while move originate. of strong, of in there move which loans because

market, carry quarter Fannie had sell we matters last there on It margin of And margin, well. a the in maybe a has and the – it sales but factors this significantly loan we of Ivan the business, lot Fannie on matters more higher been a robust quarter, bit did have little margin. what’s is did on the the So, different could FHA comment and deal. product go than margin that but higher as which into some on going on just it deals very had we the size the

Steve DeLaney

Ivan. That’s helpful color. Sure,

Ivan Kauffman

just bit will on a add I Steve, that. little color

most But loans, have bit than during I little even carry for and the in and stronger fourth because the to that own time, ahead probably had were and extraordinarily indicated the a had little been continue comments, effectively. generally better highest like in you we little more that And a operate probably no we pipeline perhaps very an smaller and we a might that before step quarter people in us benefit my think have and a healthier in had expecting we gave are – many kind strong, – of our were dislocation other we everybody. purposes, And summer we position just of many to in situation of ever which a it’s a summer competition pipeline ability a – as it are period than had. a we margin We less little competitors period our super had have been. initial get healthy big we of an margin. is what headlight that have are

to have and we margins a So will we do maintain customarily hopefully be able better. that think bit I will we little the able be to

Steve DeLaney

Okay, thank in bit market, you. all a dynamic going gangbusters. come refi these have about for know borrowers IPO’s what mortgage on we now into see And at little family, about you it Ivan, could is you it’s in residential single talk it Cardinal we that see and resi agency the multifamily just

there So, servicing yield and work up have you lockouts get scenario obviously, a borrowers with for maintenance your loans coupon still some your a and a lower so with situation them Is yourself, yield where book? you like and have refine existing lower coupon, win-win maintenance? can they end collect with a

Ivan Kauffman

Well, components. Sure. there are a couple of

pick on maintenance First that the and a general. an going loan of if exit do that some And and do see of product, little get occur that a the a uptick all, will up book, in on on have and do forward. you does modification FHA we increases a earlier, product, have Fannie people Mae yield on they will revenue

see the big. bit on maybe saw we FHA on and the on Fannie as Fannie FHA little that that. Mae time, a But as do book, you not Paul last would a is book, our not much comment that So you book book, can on

an it’s that occur little on to a possible bit but maybe there that of uptick We side. haven’t that seen thought yet,

Paul Elenio

is right, that’s right. Steve, so Yes, Ivan

big yet. servicing have the But had seen put $X.X $XXX commentary, portfolio We it originations. not we of we on in really meaningful, new million some in runoff billion

ran business really new we meaningful recapture business of as originations. through I the sheet what’s And that’s So, feed continues think that to Of that sheet agency the recapture XXX, key quarter the nice book, one that’s the we in XX% through and million able the did growth. balance well balance to agency is runoff and that of the of were XX% $XXX off third our product. strategies on of

and mostly servicing on other not we grow that think nicely. that a at servicing very, it’s in in point it’s booking, are said emphasize really about should very annually that, which servicing as one years significant. gain servicing portfolio So it’s that and we to the commentary prepayment to fees. $XXX over generating point, And healthy is feeding continue life that and But just about And is annuity million continues mine over sale X our is book I clip it’s at gross well, as his protected. this Ivan

portfolio people So, runoff some runoff can of substantial and build to continue to continue through other balance are going own if that we create have, through to sheet originations that we a forward. our annuity our refing going other

Ivan Kauffman

Yes.

well loans on color there were done rate little loans that seeing we of X-year a Just so couple the years. of of floating are lot last product, over that as longer duration were

seeing more mix duration of of XX-year XX going are shift so even and percentage. was range a and to is be income a longer to our historically greater product the it than Now years kind with is we XX of

Steve DeLaney

curve both good job. for given thank that the Well, color Yes, where you sense Interesting. and make the is. yield listen, will

Ivan Kauffman

Steve. Thanks,

Operator

we Please with ahead. KBW. take our go And Jade will next Rahmani from question

Jade Rahmani

on sectors been much. of pockets Thank performance? you quite Can credit or comment multifamily both this the you has a And of are resilience any you risk very in seeing any cycle. puzzle if the portfolio

cause initially rent think in move-outs would I credit there single-family that be in multifamily the of issues to would people timeframe, decline, space. some lot thought the would March-April and collections

seen we far So really haven’t that.

being urban resilient. space proving or We areas impacted, overall the of large holders in very is apartment have some but seen dense the

wondering on So, if could that? you comment just

Ivan Kaufman

in York other Francisco, City those only clearly, market and areas significantly course, like areas. slightly They most San amazing. of are areas vulnerable, vulnerable Yes. and the that remarkably I York specifically are and are off New the City areas, apartments the than mean, are rate are New rent rather specifically collections urban

payments borrowers haven’t it their through of go as payments their making as we in people making However, or renters. terms seen

to are with happens all think waiting see bill. I what we anxiously the stimulus

a I it’s haven’t we bit. think gone went seen. an there away, impact, Initially, would bill impact it quite stimulus thought everybody away, be helped the when the

we softness there as bit, in the market, if a of I mean, However, off have of a the things have before are lot a where room. we is an our firm room amount get we impacted. think loans some of even baseline fall little if extraordinary I

portfolio So, we our specifically really feel comfortable on about balance sheet.

We have a lot not of structure based in our our loans, on to well. assets, but loans the which the based as really on perform borrowers allows just

I and are feel think areas But lot I fairly look a urban and points would So, you A, at where lot these situations. I I look about. market, the concerned if But if that we looking firm relatively comfortable. would buildings comfortable. the market, Class lease-up feel look that’s I at there the at concessions, would A the I to in Class And what of released we not are in in don’t of being the as would was and we a exposure be have stress

Jade Rahmani

been Freddie you you And the higher, X% do think why versus X.X%? mentioned Fannie rates that forbearance at have much

Ivan Kaufman

the spectrum of different do of have and smaller lowest are a on agencies. on the point want the they forbearances to the policies that out loans. for both lot we So, I

balance is oriented. forbearance are of we think for beings I over the that. well XX, And small numbers Freddie below specifically

they more, help, you were you and if need policies as if gave bit in. see, ability was the policies little judgment, really needed servicer see help the of let’s were affected let’s bars Fannie us good a it more to would liberal be Mae’s evaluation a Freddie’s whereas think affected. whether I more, were they and or as business not, to whether then the Freddie make waving apply And

philosophy active seeing have balanced Freddie very that small as balance leading the that the in how more once Mac’s originators they space I And lot to you I well. think of more space, I on in business. think, you bit. forbearance that a it on again, we altered And are one are know a know extremely business, manage little think

half we the the the of that rest of industry there, So, even are probably seeing is saying. forbearances

Jade Rahmani

refi think not prepayment has protected. multifamily a aren’t those I as the space in that pronounced the space single-family And wave, that mortgages of Okay. where experienced definitely as

but uptick in lot So portion sustainability that single more volatility the do you quarters? think expect coming there this volumes there any is now? generally, abate of the family, in Is about how to a right of agency you

Ivan Kaufman

think to consistent origination I rates. these very going a very, with it’s be scenario interest

You have there is wave to keep part and off. we are run business the as and accordingly off in the a X, mind in originations loans loans are generally nice XX-year are about and loans X they that new of always that running

performing, So, loans come interest because economic – occupancy agencies for be going a are is the as period, these refinance eligible is whole are you generally there occupancy. loans can of the out at their prepayment loans that XX%, assets the see rates, of key level you and wave The new a need consistent of to production.

urban refinance other areas it to from it impact be So, are some there and areas but continued and Francisco and a not we way suffering of like forward. some people areas San loans, New metro we that the through and but the to the specifically the be moving geared expect pandemic continues expect is active if York flow in, very, all may business very and in some XXXX the that’s to if towards softness the of more ability

Jade Rahmani

you play been that’s Thank something know some single because space seems the investing lenders here? of been seems rental I you and in the have that know to very on struggled technology side, that particularly the could space want have I that some you wheelhouse and actively get be that on Arbor family platform, to Arbor’s see in in much. touch initiative? Do and useful business, procuring would scale really the

Ivan Kaufman

we number developing previously build-to-rent probably in aspects which space. that one lender are as space. projects as And love we provider to There are close the is of we that under one The we communities, the indicated. have be we financing think of application, would huge reputation. space the couple a that we Yes, put space to have XX are leading a and think that I in us going

on construction on So and become a a through the we if for bridge, there both those equipped it. a throughout putting side. they bridge loan end are they up under technology will And is those a become, well hopefully on which loans projects component And agencies then the it, be putting after we permanent then a once process qualify.

effort space. business, are love of a putting lot a we into we of that is that So lot technology

providing business of financing that to active other that is is our of the scattered expect for sites. business. we grow. people The And side very part And a buying

So dedicate a it, And of going benefit see quarter of this a in time to end, fourth very really strongly lot energy a is technology. we to carry the in lot going I through maybe and the we are would the think year. next into year. of to certainly of lot That

Jade Rahmani

questions. the for Thanks taking

Ivan Kaufman

Thank you, Jade.

Operator

next move Stephen James. Laws Please with will We Raymond ahead. with go

Your line is open.

Stephen Laws

you and expect $X.X should we kind run have about billion Ivan, volume? is into this good on – Hi, or the how QX, billion, good visibility of one volumes you you a do commented in quarter rate continue moving any strong morning. seasonality into the XXXX what think $X.X you around to this a do

Ivan Kaufman

XX% little XX% the maybe for a he So, how much we comment to gave date. as Paul I as around expects up And and us be year. volume approximately to think XX% about are year

you we be our that numbers fourth be numbers get stronger that to our up a going should that much very, you math percent. do strong understand have stronger indicates that the overall and going are to line is And could very to to quarter. even the So

we ever are are done is the at been. news closing has level the for so us that it as same strongest the And pipeline many loans, still we best more is have pipeline ever our historically. staying than But level. Our at closing we is

now So had we right continues. the to staff last And environment, this we are good able strong. the very, we increases current are numbers it less volume year. the even us is hope and technology just personnel we handle very for the And same news basis are in with And a strong and in maybe extraordinarily optimistic. the too pipeline on than about these just basis,

Stephen Laws

you you like you thinking been is earlier, margin about quarters given to marginal about I on something is think Paul higher elevated last higher duration, or move don’t question, if years forward? XX see touched should And sorry, gain do know but the gain-on-sale the sale on we as it the word, this the longer have how mentioned Steve’s in continue right or the looks MSRs XX higher that MSR two MSR we Great. notes, the

Paul Elenio

that had been elevated mentioned, ever It’s and a a products Yes, question. factors. Steve. mentioned few before. than last has the of a it’s it we more we you And XX-year quarters few combination seeing One XX great and are Ivan

our our have Especially duration of the it. So aspect loans And value a being servicing premium we protected, the benefit And prepayment new been second whole. is Mae the very on the from to and have very, longer that industry fees as this lockouts a strong. service obviously longer. had Fannie fee is are real the seen

higher near longer grown think MSR that We MSR servicing rate that point. out have of duration term but is would How Fannie on at this the we XX many a rate has points servicing. on locked Will on XX I have as continue? fees loans this been long Mae in combination that put factors, and do that sustainable be assets new basis clearly, getting dependent and

Stephen Laws

I over going really Great. talk I can or from capacity positive we there to I Appreciate we continue Switching grow the and reinvestment are was grow to talked balance numbers what the the the portfolio, capacity on repayments front about portfolio slight the there. balance see million color to but to have Are of you sheet it growth, $XXX right a sheet about maybe me. seeing here? with investment to in think think new we don’t of But the no opportunities?

Ivan Kaufman

as been competitive people the So, when we now the right earnings bit, when because still the on than was thought, have I market most of to even grow out prior more and our is calls level indicated it originating were we were a fairly dislocated able we business. little maintain

So, a and we competitive. remaining of little a bit are now were things pipeline able to build

little place that we We liability with have structures advantage place put in which of all we bit have in CLOs. our a

edge. So we us have an gives funding, which competitive

all is sheet that my little be should much grow try balance our on a maintain fourth quarter. but maintain and will our It able how it We and runoff and in outlook occurs, view that depends little bit. grow the a we through to bit

Stephen Laws

Great. Appreciate you taking my questions this morning.

Ivan Kaufman

Thanks, Stephen.

Operator

Instructions] [Operator

Ivan Kaufman

I think I see queue. Charlie in the

Operator

with Please move go ahead. And next Morgan. we JP will with Charlie

Your open. line is

Unidentified Analyst

still wondering the give but with already, outlook the questions. market? Hi, into year. for year about I and growing next end the business mentioned, securitization have you pipeline mean, any good APL that heading good update and morning, so? as pretty over I of was you the your trajectory in really How covered guys looking Most Thanks do agency think could segment or guys. been you the if the private taking nicely year for next

Ivan Kaufman

to very going slow. be it’s think I

to are Right going spread the is where coupon be volumes. very gross you between into on now are basis agency APL going. at significant of the agencies it’s I and somewhere think XXX APL points think fit well XX that. XXX. are And where it, we execution right wide some maybe XX, slow between the on too a to There the side, and but least are generate products say that wide now, originations

to will So, on our going that going collateral. see X to of are kind it if another we mark, do, on aggregate probably X $XXX were based as to securitization we million what seeing that in us net $XXX we to And do we to that be probably take don’t months to million would able large scale. the something are we

go slow now things it’s are So, at. on a right based where

Unidentified Analyst

Appreciate the color, Thanks. Ivan.

Operator

questions no to at closing the would It any to CEO appears that Kauffman, back this now for further time. program I Ivan like have turn we remarks.

Ivan Kauffman

Alright. balance difficult and quarter fourth performance Well, the and forward news in great difficult and is – some very pipeline, thanks the our to again is our conclusion great and been very optimistic for about a quarter to more very come sheet there record looking our participation. year very, your and It’s outstanding of times. fantastic

stay stay a So Have day. tuned. everybody, Bye-bye. great and healthy

Operator

at conclude any disconnect your program. time. will participation you may Thank That you and for today’s

Arbor Realty Trust (ABR) 30 Oct 202020 Q3 Earnings call transcript