Arbor Realty Trust, a Uniondale real estate finance company, reported sharp declines in both net income and funds from operations for the quarter ended Sept. 30.
The company, which specializes in bridge and mezzanine loans for commercial properties, reported that third-quarter net income attributable to common stockholders was $15.3 million, or 30 cents per share, down from $63.4 million, or $1.26 per share, during the same quarter last year. The steep drop was due to a $58.1 million non-cash net gain related to the sale of equity interest in a Manhattan property recorded in the third quarter last year.
Funds from operations, a real estate industry measure of earnings that excludes the sale of properties, fell to $16.6 million, or 33 cents per share, from $65.5 million, or $1.30 per share, during the year earlier period.
Real estate investment trusts, or REITs, must return most of their profit to investors. Some REITs, like Arbor, are publicly traded. The company reported earnings before the market opened Friday.