In part due to lingering effects of the recession, quarterly financial results at Arbor Realty Trust Inc., of Uniondale, took a sharp turn for the worse, the company reported Friday in a Securities and Exchange Commission filing.
Arbor reported that its funds from operations -- a key measure in the profitability of a real estate investment trust -- were a negative $8.5 million for the quarter, down from a profit of $129.3 million in the same quarter last year. The results were for the three-month period ending June 30.
Some of Arbor Realty's borrowers are struggling to make payments, Ivan Kaufman, president and chief executive of Arbor Realty, said in a conference call with analysts, according to a transcript of the call on the website SeekingAlpha.
Arbor Realty Trust invests in real estate loans and related assets.
"...There are times that even though our asset values are adequate to support our loans we experience losses in our portfolio because some borrowers have suffered dramatically from the recession and lack of liquidity, which can directly impact the performance and value of our collateral," Kaufman said.
The quarterly distribution per share was a loss of $0.33 per share, compared with a profit of $5.05 per share in the year-ago quarter.
After the results were announced Friday, shares of Arbor Realty fell 19 cents, or 4.5 percent, to $4.06, on the New York Stock Exchange.