Arbor Realty Trust falls after Q1 profit misses estimates despite revenue beat

Arbor Realty Trust (NYSE: ABR) reported first-quarter 2026 non-GAAP earnings of $0.07 per share, 38.6% below analyst estimates, as nonperforming assets weighed on results. Revenue fell 12.5% year over year to $117.4 million but exceeded Wall Street expectations. CEO Ivan Kaufman said non-interest-earning assets created “a tremendous drag” on earnings, while higher interest rates slowed resolution of delinquent loans. Management also cited seasonal weakness in the agency business and competitive pressure in lending. Shares traded at $7.24 on May 13, 2026, down from $8.17 before the earnings release. CFO Paul Elenio said the company expects improvement to build in the fourth quarter, with additional upside potential in 2027, as Arbor works to resolve nearly all nonperforming assets and redeploy capital into higher-yielding loans.