Arbor Realty Trust Inc. (NYSE:ABR) Q2 2020 Earnings Conference Call - Final Transcript

Jul 31, 2020 • 09:00 am ET

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Arbor Realty Trust Inc. (NYSE:ABR) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good morning, ladies and gentlemen, and welcome to the Second Quarter Arbor Realty Trust Earnings Conference Call. [Operator Instructions]

I would now like to turn the call over to your speaker today, Paul Elenio, Chief Financial Officer. Please begin, sir.

Executive
Paul Elenio

Okay. Thank you, Priscilla, 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 30th, 2020. 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 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.

Executive
Ivan Kaufman

Thank you, Paul and thanks to everyone for joining us on today's call. We hope that you and your families are safe and healthy, and we appreciate your participation during these challenging times. We will realize the difficulties and complexities that our country and the entire world continues to deal with from the effects of COVID.

In addition, as we all know, we have entered a recessionary period. After experiencing a 10-year run of tremendous economic growth, we as operators of this Company were well prepared for the recessionary environment. We built a viable operating platform, focusing on the right asset class with very stable liability structures...

Executive
Paul Elenio

Ivan?

Executive
Ivan Kaufman

Yeah, sorry. Strong liquidity, an active balance sheet and GSE agency business and many diversified income streams that generate strong core earnings and dividends in every market cycle. We also have nominal delinquencies and forbearances in our portfolio, an experience cycle-tested management team and a business model that provides many diversified opportunities for growth, which clearly puts us in a class by ourselves.

Our second quarter results are a clear reflection of this strategy and a diverse platform we have developed. We had an outstanding second quarter with many significant achievements, including remarkable operating results, which has allowed us to increase our dividend to $0.31 a share. This is the ninth year in a row we have been able to increase our dividend, and we are confident in our ability to continue to generate core earnings in excess of this increased dividend.

As Paul will discuss in more detail, our core earnings for the second quarter were $0.46 per