Arbor Realty Trust Inc. (NYSE:ABR) Q2 2019 Earnings Conference Call - Final Transcript

Aug 02, 2019 • 10:00 am ET


Arbor Realty Trust Inc. (NYSE:ABR) Q2 2019 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the Second Quarter 2019 Arbor Realty Trust Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will be given at that time.

[Operator Instructions]

As a reminder, this conference is being recorded. I would now like to introduce your host for today's conference, Paul Elenio, Chief Financial Officer. Please begin, sir.

Paul Elenio

Okay. Thank you, Norma, and good morning, everyone, and welcome to the quarterly earnings call for Arbor Realty Trust. This morning, we'll discuss the results for the quarter ended June 30, 2019. With me on the call today is Ivan Kaufman, our President and Chief Executive Officer.

Before we begin, I need to inform you that statements made in this earnings call may be deemed forward-looking statements that are subject to risks and uncertainties, including information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives. These statements are based on our beliefs, assumptions and expectations of our future performance, taking into account the information currently available to us. Factors that could cause actual results to differ materially from Arbor's expectations, in these forward-looking statements, are detailed in our SEC reports. Listeners are cautioned not to place undue reliance on these forward-looking statements, which speak only as of today. Arbor undertakes no obligation to publicly update or revise these forward-looking statements to reflect events or circumstances after today or the occurrences of unanticipated events.

I'll now turn the call over to Arbor's President and CEO, Ivan Kaufman.

Ivan Kaufman

Thank you, Paul, and thanks to everyone for joining us on today's call.

As you can see from this morning's press release, we had another outstanding quarter which continues to demonstrate the diversity of our operating platform and value of our franchise. We are very pleased with the growth in our business, which has consistently increased our baseline of predictable and stable earnings, allowing us to once again increase our quarterly dividend to $0.29 a share, which represents our second increase this year and reflects an annual run rate of $1.16 per share, up from $1.08 per share.

Additionally, the significant growth, we experienced in the second quarter, continues to increase our run rate of core earnings, making us very confident in our ability to comfortably maintain our current dividend as well as grow it in the future. And based on our new dividend and yesterday's closing price, we are trading at a dividend yield of approximately 9.5%, which we believe is not nearly reflective of our true value. The quality and diversity of our income streams, along with a consistency of our earnings, clearly differentiates us from our peers, which is why we believe we should consistently trade at/or lower dividend yield than our peer group.

To highlight our success further, I would like to talk about the growth, we experienced, in both our business platforms. In our Agency business, we grew our