Arbor – Q2 2025 Financial Shenanigans

Author: Viceroy Research Published on: August 6, 2025 Published in: Arbor Realty Trust (NYSE:ABR)

August 6, 2025 – Arbor’s 10-Q marks the first time Arbor appears to be forced to sell foreclosed assets at significant discounts to UPB and outstanding loan balances. Even Arbor’s comically inflated distributable income output is not sufficient to cover its dividend this quarter.

Arbor’s reported distributable income, inflated by PIK interest and unrealistic asset valuations, still cannot cover its dividend.
Arbor’s Build-to-Rent CLO was used to bail out real estate projects linked to its CEO and executives, with loans being upsized and maturity dates extended. Some refinancings resulted in increased equity stakes for the Kaufman family, funded by shareholder capital.
Arbor has been forced to liquidate foreclosed properties at up to 33% below original loan valuations.
Arbor is modifying and re-modifying CLO loans to hide the true rate of delinquency and deterioration. Over $1.8b in modifications were made in just six months, dwarfing the official $1.19b disclosed.
Arbor’s SEC filings directly contradict data from its own CLO reporting. Discrepancies in delinquency rates, PIK income, and loan modifications suggest deliberate misreporting or manipulation of key metrics.

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