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UNIONDALE, NY-Arbor Realty Trust reported a 296% net-income increase over 2004 results. The REIT is looking forward to two large loan transactions in New York City that are expected to close in the third quarter.

"We have an unwavering commitment to build," said Ivan Kaufman, the firm's chairman and chief executive officer, during the company's quarterly conference call. "We have a long-term commitment to create value, to build and enhance franchise value."

During the quarter there was a $36.5-million distribution from Prime Outlets Acquisition Co. LLC, an entity in which Arbor owns an equity and profits interest. Prime refinanced the debt on a portion of the assets in its portfolio, receiving proceeds in excess of the amount of the previously existing debt. The excess proceeds were distributed to each of the partners in accordance with its operating agreement. "This was a perfect example of how we do business," Kaufman pointed out.

Arbor originated 12 loans and investments totaling $152 million. Kaufman says that figure is "in line" with company expectations. "As we have said all along, we will not chase transactions that do not satisfy our portfolio objectives merely for the sake of growth. Our preference is to close solid transactions, even if they have a slightly lower yield, rather than try to win business based on overly aggressive pricing or proceeds." For the next quarter, the REIT looks to close two loans totaling approximately $90 million on 260 Madison Ave.

Total revenues for the quarter ended June 30 were $39.3 million, an increase of 229% from the second quarter of 2004. Arbor reported net income for the quarter of $22.9 million, compared to net income for the quarter ended June 30, 2004 of $5.8 million. Net income for the first six months of this year was $32.6 million, compared to net income for the six months ended June 30, 2004 of $8.9 million. The REIT focuses on investing in real estate related bridge and mezzanine loans, preferred and direct equity investments, mortgage-related securities and other real estate related assets.

Instant Insights /

Arbor Anticipates $90M NYC Loan Transactions

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