ARBOR REALTY TRUST INC

Note 1 —Description of Business

Arbor Realty Trust, Inc. (“we,” “us,” “our,” or the "Company") is a Maryland corporation formed in 2003. We are a nationwide real estate investment trust (“REIT”) and direct lender, providing loan origination and servicing for commercial real estate assets. We operate throughtwo business segments: our Structured Loan Origination and Investment Business, or “Structured Business,” and our Agency Loan Origination and Servicing Business, or “Agency Business.”

Through our Structured Business, we invest in a diversified portfolio of structured finance assets in the multifamily, single-family rental (“SFR”) and commercial real estate markets, primarily consisting of bridge loans, in addition to mezzanine loans, junior participating interests in first mortgages and preferred equity. We also invest in real estate-related joint ventures and may directly acquire real property and invest in real estate-related notes and certain mortgage-related securities.

Through our Agency Business, we originate, sell and service a range of multifamily finance products through the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac,” and together with Fannie Mae, the government-sponsored enterprises, or “GSEs,”) the Government National Mortgage Association (“Ginnie Mae,”) Federal Housing Authority (“FHA”) and the U.S. Department of Housing and Urban Development (together with Ginnie Mae and FHA, “HUD.”) We retain the servicing rights and asset management responsibilities on substantially all loans we originate and sell under the GSE and HUD programs. We are an approved Fannie Mae Delegated Underwriting and Servicing (“DUS”) lender nationally, a Freddie Mac Optigo® Conventional Loan and Small Balance Loan (“SBL”) lender, seller/servicer nationally and a HUD MAP and LEAN senior housing/healthcare lender nationally. We also originate and retain the servicing rights on permanent financing loans that are generally underwritten using the guidelines of our existing agency loans sold to the GSEs, which we refer to as “Private Label” loans, and originate and sell finance products through conduit/commercial mortgage-backed securities (“CMBS”) programs. We either sell the Private Label loans instantaneously or pool and securitize them and sell certificates in the securitizations to third-party investors, while retaining the highest risk bottom tranche certificate of the securitization.

Substantially all of our operations are conducted through our operating partnership, Arbor Realty Limited Partnership (“ARLP”), for which we serve as the indirect general partner, and ARLP’s subsidiaries. We are organized to qualify as a REIT for U.S. federal income tax purposes. A REIT is generally not subject to federal income tax on its REIT-taxable income that is distributed to its stockholders; provided that at least 90% of its taxable income is distributed and provided that certain other requirements are met. Certain of our assets that produce non-qualifying REIT income, primarily within the Agency Business, are operated through taxable REIT subsidiaries (“TRS,”) which are part of our TRS consolidated group (the “TRS Consolidated Group”) and are subject to U.S. federal, state and local income taxes. In general, our TRS entities may hold assets that the REIT cannot hold directly and may engage in real estate or non-real estate-related business.

Note 2 —Basis of Presentation and Significant Accounting Policies

Basis of Presentation

The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”), for interim financial statements and the instructions to Form 10-Q. Accordingly, certain information and footnote disclosures normally included in the consolidated financial statements prepared under GAAP have been condensed or omitted. In our opinion, all adjustments considered necessary for a fair presentation of our financial position, results of operations and cash flows have been included and are of a normal and recurring nature. The operating results presented for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the entire year. These financial statements should be read in conjunction with our financial statements and notes thereto included in our 2025 Annual Report.

Principles of Consolidation

The consolidated financial statements include our financial statements and the financial statements of our wholly owned subsidiaries, partnerships and other joint ventures in which we have a controlling interest, including VIEs of which we are the primary beneficiary. Entities in which we have a significant influence are accounted for under the equity method. Our VIEs are described in Note 15. All significant intercompany transactions and balances have been eliminated in consolidation.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that could materially affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. The uncertainty related to broader economic, market and industry conditions, such as the impact of inflation, the interest rate environment, capital market conditions, property values, geopolitical events and tariff developments, both globally, and to our business, makes any estimate or assumption at September 30, 2026 inherently less certain.

Significant Accounting Policies

See Item 8 – Financial Statements and Supplementary Data in our 2025 Annual Report for a description of our significant accounting policies. There have been no significant changes to our significant accounting policies since December 31, 2025.

Reclassification

Certain prior period amounts have been reclassified to conform to the current period presentation. Amounts previously presented separately as due from related party and due to related party are now included within other assets and other liabilities, respectively. As of December 31, 2025, the reclassification increased other assets by $6.5 million and increased other liabilities by $0.5 million. The reclassification had no impact on total assets, total liabilities, stockholders' equity, net income (loss) or cash flows.

Note 3 —Loans and Investments

Our Structured Business loan and investment portfolio consists of ($ in thousands):

(1)“Weighted Average Pay Rate” is a weighted average, based on the unpaid principal balance (“UPB”) of each loan in our portfolio, of the interest rate required to be paid as stated in the individual loan agreements. Certain loans and investments that require an accrual rate to be paid at maturity are not included in the weighted average pay rate as shown in the table.

(2)Including extension options, the weighted average remaining months to maturity at September 30, 2026 and December 31, 2025 was 21.0 and 19.9, respectively.

(3)The “First Dollar Loan-to-Value (“LTV”) Ratio” is calculated by comparing the total of all senior lien positions ahead of our loan or investment within the capital stack to the fair value of the underlying collateral to determine the point at which we will absorb a total loss of our position. If we own the senior most position within the capital stack, the First Dollar LTV Ratio is 0%.

(4)The “Last Dollar LTV Ratio” is calculated by comparing the total of the carrying value of our loan or investment and all senior lien positions ahead of our loan or investment within the capital stack to the fair value of the underlying collateral to determine the point at which we will initially begin to absorb a loss.

(5)At September 30, 2026 and December 31, 2025, bridge loans included 162 and 298, respectively, of SFR loans with a total gross loan commitment of $4.48 billion and $4.73 billion, respectively, of which $3.46 billion and $3.18 billion, respectively, was funded.

(6)Excludes exit fee receivables of $42.6 million and $43.0 million at September 30, 2026 and December 31, 2025, respectively, which is included in other assets on the consolidated balance sheets.

Concentration and Credit Risks

We are subject to concentration risk in that, at September 30, 2026, the UPB related to 33 loans with five different borrowers represented 9% of total assets. At December 31, 2025, the UPB related to 65 loans with five different borrowers represented 9% of total assets. During both the three and nine months ended September 30, 2026 and the year ended December 31, 2025, no single loan or investment represented more than 10% of our total assets and no single investor group generated over 10% of our revenue. See Note 18 for details on our related party loans and investments.

We assign a credit risk rating of pass, pass/watch, special mention, substandard or doubtful to each loan and investment, with a pass rating being the lowest risk and a doubtful rating being the highest risk. Each credit risk rating has benchmark guidelines that pertain to debt-service coverage ratios, LTV ratios, borrower strength, asset quality, payment status in accordance with current contractual terms, and funded cash reserves. Other factors such as guarantees and other forms of recourse, market strength, remaining loan term and borrower equity are also reviewed and considered in determining the credit risk rating assigned to each loan. This metric provides a helpful snapshot of portfolio quality and credit risk. All portfolio assets are subject to, at a minimum, a thorough quarterly financial evaluation in which historical operating performance and forward-looking projections are reviewed; however, we maintain a higher level of scrutiny and focus on loans that we consider “high risk” and that possess deteriorating credit quality.

Generally speaking, given our typical loan profile, risk ratings of pass and pass/watch suggest the loan is performing and that we expect the borrower to make both principal and interest payments according to the contractual terms of the current loan agreement. A risk rating of special mention indicates loans that require closer monitoring given an observed credit weakness or may have been modified, but we currently expect the borrower to make both principal and interest payments according to the terms of the current loan agreement or we expect to fully recover our investment, including accrued interest, through the current value of the collateral and/or the financial strength of the guarantors. A risk rating of substandard indicates we have observed weaknesses or significant deterioration in multiple credit quality factors, we expect the loan to underperform in the near term, and we anticipate the loan will require intervention in the form of a modification or potential foreclosure to avoid or limit a loss of interest and/or principal. A risk rating of doubtful indicates a loss of interest and/or principal is probable and we are actively exploring options to protect our investment including foreclosing on the underlying collateral. Further, while the above are the primary guidelines used in determining a certain risk rating, subjective items such as the financial strength of guarantors, market strength, asset quality, or a borrower's ability to perform under modified loan terms may result in a rating that is higher or lower than might be indicated by any risk rating matrix.

A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class at September 30, 2026, and charge-offs recorded for the nine months ended September 30, 2026 is as follows ($ in thousands):

A summary of the loan portfolio’s internal risk ratings and LTV ratios by asset class at December 31, 2025, and charge-offs recorded during 2025 is as follows ($ in thousands):

Geographic Concentration Risk

At September 30, 2026, underlying properties in Texas and Florida represented 23% and 17%, respectively, and at December 31, 2025, underlying properties in Texas and Florida represented 23% and 17%, respectively, of the outstanding balance of our loan and investment portfolio. No other states represented 10% or more of the total loan and investment portfolio.

Allowance for Credit Losses

A summary of the changes in the allowance for credit losses is as follows ($ in thousands):

(1)Includes specific reserves that were charged-off in connection with the foreclosure of the underlying collateral as real estate owned ("REO") assets at fair value of $6.0 million during both the three and nine months ended September 30, 2026, and $16.6 million and $25.0 million during the three and nine months ended September 30, 2025, respectively.

The provision for credit losses during the three and nine months ended September 30, 2026 was primarily attributable to specifically impaired multifamily loans and a softer macroeconomic outlook of the commercial real estate market. Our estimate of allowance for credit losses on our structured portfolio, including related unfunded loan commitments, was based on a reasonable and supportable forecast period that reflects recent observable data, including price indices for commercial real estate, unemployment rates, and interest rates.

The expected credit losses over the contractual period of our loans also include the obligation to extend credit through our unfunded loan commitments. Estimates of current expected credit losses (“CECL”) for unfunded loan commitments are adjusted quarterly and correspond with the associated outstanding loans. At September 30, 2026 and December 31, 2025, we had outstanding unfunded commitments of $1.44 billion and $1.92 billion, respectively, that we are obligated to fund as borrowers meet certain requirements. The outstanding unfunded commitments are predominantly related to our SFR build-to-rent ("BTR") business.

At September 30, 2026 and December 31, 2025, accrued interest receivable related to our loans totaling $147.0 million and $165.7 million, respectively, was excluded from the estimate of credit losses, is subject to our revenue recognition policy, and is included in other assets on the consolidated balance sheets.

All of our structured loans and investments are secured by real estate assets or by interests in real estate assets, and, as such, the measurement of credit losses may be based on the difference between the fair value of the underlying collateral and the carrying value of the assets as of the period end. A summary of our specific reserve loans considered impaired by asset class is as follows ($ in thousands):

(1)Represents the UPB of 22 and 20 impaired loans (less unearned revenue and other holdbacks and adjustments) by asset class at September 30, 2026 and December 31, 2025, respectively.

Non-performing Loans

Loans are generally classified as non-performing once the contractual payments exceed 60 days past due, unless past due payments due to us are in the process of being collected or otherwise reasonably certain to be received in the immediate future. Income from non-performing loans is generally recognized on a cash basis when it is received. Full income recognition will resume when the loan becomes contractually current, and performance has recommenced. At September 30, 2026,32 loans with an aggregate net carrying value of $599.7 million, net of related loan loss reserves of $41.9 million, were classified as non-performing and, at December 31, 2025,26 loans with an aggregate net carrying value of $545.0 million, net of related loan loss reserves of $10.2 million, were classified as non-performing.

A summary of our non-performing loans by asset class is as follows ($ in thousands):

At September 30, 2026 and December 31, 2025, we had loans with a UPB of $40.9 million and $237.0 million, respectively, and accrued interest of $1.0 million and $6.6 million, respectively, that were greater than 60 days past due and classified as performing loans. All past due payments on these loans have been subsequently collected, except for a loan that was greater than 60 days past due at September 30, 2026 with a UPB of $40.9 million and accrued interest of $1.0 million. We are currently in the process of modifying this loan.

Other Non-accrual Loans

In this challenging economic environment, we have been experiencing late and partial payments on certain loans in our structured portfolio. Therefore, for loans that are 60 days past due or less, if we have determined there is reasonable doubt about collectability of all principal and interest, we classify those loans as non-accrual and recognize interest income only when cash is received. The table below is a summary of those loans that are 60 days past due or less that we have classified as non-accrual, and changes to those loans for the periods presented ($ in thousands).

We collected and recorded interest income on non-performing and other non-accrual loans of $0.6 million and $8.6 million during the three and nine months ended September 30, 2026, respectively, and $2.7 million and $12.5 million during the three and nine months ended September 30, 2025, respectively.

Loan Modifications

We may agree to amend or modify loans to certain borrowers experiencing financial difficulty based on specific facts and circumstances in order to improve long-term collectability efforts and avoid foreclosure and repossession of the underlying collateral. The loan modifications to borrowers experiencing financial difficulty may include a delay in payments, including payment deferrals, term extensions, principal forgiveness, interest rate reductions, or a combination thereof. We record interest on modified loans on an accrual basis to the extent the modified loan is contractually current and we believe it is ultimately collectible. The allowance for credit losses on loan modifications is measured using the same method as all other loans held for investment.

As part of the modifications of each of these loans, we generally expect borrowers to invest additional capital to recapitalize their projects, which the vast majority have funded in the form of either, or a combination of: (1) reallocation of and/or additional deposits into interest, renovation and/or general reserves; (2) the purchase of a new rate cap; (3) a principal paydown of the loan; and (4) bringing any delinquent loans current by paying past due interest owed.

The following table represents the UPB of loan modifications, as of the modification date, made to borrowers experiencing financial difficulty during the three months ended September 30, 2026 ($ in thousands):

(1)This loan was modified to a weighted average pay rate and deferred rate of 5.74% and 1.17%, respectively, at September 30, 2026 and the pay rate increases from time-to-time throughout the loan maturity. This loan was also modified to extend the weighted average term by 36.0 months.

(2)These loans were modified to reduce the interest rate to a weighted average rate of 6.17% at September 30, 2026, and to extend the weighted average term by 24.9 months. The interest rate on one of these loans with a UPB of $13.1 million increases from time-to-time throughout the loan maturity.

(3)At September 30, 2026, the total UPB of these loan modifications was $203.7 million and represented 2% of our Structured portfolio.

(4)At September 30, 2026, modified loans with a UPB of $32.6 million have specific reserves totaling $3.0 million.

(5)Includes loans with a total UPB of $151.7 million, which were previously modified in prior years. Using the SOFR rate at September 30, 2026, such loans were modified from a weighted average pay rate and deferred rate of 5.49% and 2.74%, respectively, to a weighted average pay rate and deferred rate of 5.64% and 0.55%, respectively.

The following table represents the UPB of loan modifications, as of the modification date, made to borrowers experiencing financial difficulty during the nine months ended September 30, 2026 ($ in thousands):

(1)These loans were modified to a weighted average pay rate and deferred rate of 4.96% and 2.67%, respectively, at September 30, 2026 and to extend the weighted average term by 25.3 months. These modifications also include loans with a total UPB of $108.4 million in which the pay rate increases from time-to-time throughout the loans' maturities.

(2)These loans were modified to reduce the interest rate to a weighted average pay rate and deferred rate of 5.85% and 0.34%, respectively, and to extend the weighted average term by 28.1 months.

(3)Loan modifications with a total UPB of $115.4 million included amending certain terms, such as reallocating and/or replenishment of reserves, providing for a temporary and conditional forbearance of foreclosure and temporarily delaying past due interest payments. A loan modification with a UPB of $113.0 million was modified to capitalize $1.2 million of unpaid interest and was divided into a $104.1 million tranche bearing interest at SOFR plus 3.00% and a $10.1 million tranche bearing interest at a fixed rate of 10.00%.

(4)At September 30, 2026, the total UPB of these loan modifications was $1.07 billion and represented 9% of our Structured portfolio.

(5)At September 30, 2026, modified loans with a UPB of $105.8 million have specific reserves totaling $11.1 million.

(6)Includes loans with a total UPB of $572.9 million, which were previously modified in prior years. Using the SOFR rate at September 30, 2026, these loans were modified from a weighted average pay rate and deferred rate of 5.77% and 2.21%, respectively, to a weighted average pay rate and deferred rate of 5.29% and 1.54%, respectively.

The following table represents the UPB of loan modifications, as of the modification date, made to borrowers experiencing financial difficulty during the three months ended September 30, 2025 ($ in thousands):

(1)These loans were modified to a weighted average pay rate and deferred rate of 4.83% and 2.87%, respectively, at September 30, 2025. Substantially all of these loans (total UPB of $746.8 million) were also modified to extend the weighted average term by 13.1 months. These modifications also include loans with a total UPB of $48.0 million in which the pay rate increases from time-to-time throughout the loans' maturities.

(2)This loan was modified to reduce the interest rate to a weighted average pay rate and deferred rate of 1.00% and 5.50%, respectively, and to extend the weighted average term by 4.4 months.

(3)At September 30, 2025, the total UPB of these loan modifications was $804.6 million and represented 7% of our Structured portfolio.

(4)At September 30, 2025, modified loans with a UPB of $32.2 million have specific reserves totaling $3.6 million.

(5)Includes loans with a total UPB of $473.2 million, which were previously modified in prior years. Using the SOFR rate at September 30, 2025, these loans were modified from a weighted average pay rate and deferred rate of 5.86% and 1.56%, respectively, to a weighted average pay rate and deferred rate of 4.19% and 3.23%, respectively.

The following table represents the UPB of loan modifications, as of the modification date, made to borrowers experiencing financial difficulty during the nine months ended September 30, 2025 ($ in thousands):

(1)These loans were modified to a weighted average pay rate and deferred rate of 4.95% and 2.71%, respectively, at September 30, 2025. A portion of these loans (total UPB of $972.0 million) were also modified to extend the weighted average term by 14.5 months. These modifications also include loans with a total UPB of $556.3 million in which the pay rate increases from time-to-time throughout the loans' maturities.

(2)These loans were modified to reduce the interest rate to a weighted average pay rate and deferred rate of 4.72% and 1.74%, respectively, at September 30, 2025 and to extend the weighted average term by 18.6 months.

(3)These loan modifications included amending certain terms, such as reallocating and/or replenishment of reserves, providing for a temporary and conditional forbearance of foreclosure and temporarily delaying past due interest payments.

(4)At September 30, 2025, the total UPB of these loan modifications was $1.91 billion and represented 17% of our Structured portfolio.

(5)At September 30, 2025, modified loans with a UPB of $143.3 million have specific reserves totaling $12.0 million.

(6)Includes loans with a total UPB of $993.3 million, which were previously modified in prior years. Using the SOFR rate at September 30, 2025, these loans were modified from a weighted average pay rate and deferred rate of 6.22% and 1.38%, respectively, to a weighted average pay rate and deferred rate of 4.36% and 3.16%, respectively.

During the nine months ended September 30, 2026, we recorded $0.6 million of deferred interest on the loans that we modified during 2026 and during the three and nine months ended September 30, 2026, we recorded $2.1 million and $11.4 million, respectively, for loans previously modified. During the three and nine months ended September 30, 2025, we recorded $1.4 million and $7.1 million, respectively, of deferred interest on the loans that we modified during 2025 and $7.7 million and $30.9 million, respectively, for loans previously modified. During both the three and nine months ended September 30, 2026, we reversed through interest income $4.0 million of interest receivable that was previously accrued on modified loans that we deemed the collection of interest to be doubtful. During the three and nine months ended September 30, 2025, we reversed through interest income $17.6 million and $25.2 million, respectively, of interest receivable that was previously accrued on modified loans that we deemed the collection of interest to be doubtful.

At September 30, 2026 and December 31, 2025, we have recorded deferred interest totaling $55.6 million and $68.3 million, respectively, on all modified loans to borrowers experiencing financial difficulty, which is included in other assets on the consolidated balance sheets.

At September 30, 2026 and December 31, 2025, we had future funding commitments on modified loans with borrowers experiencing financial difficulty of $4.8 million and $17.4 million, respectively, which are generally subject to performance covenants that must be met by the borrower to receive funding.

All loan modifications completed in the past 12 months were performing pursuant to their contractual terms at September 30, 2026, except fornine loans with a total UPB of $383.1 million. Since these loans are not performing pursuant to their modified terms, these loans are classified as non-accruing loans. Two of these loans with a UPB of $82.6 million have specific loan loss reserves totaling $5.1 million. The remaining loan has no specific reserve as the estimated fair value of the property exceeded its carrying value at September 30, 2026.

There wereno other material loan modifications, refinancings and/or extensions during the three and nine months ended September 30, 2026 and 2025 for borrowers experiencing financial difficulty.

Interest Reserves

Given the transitional nature of some of our real estate loans, we may require funds to be placed into an interest reserve as required by the loan documents to cover debt service costs. At September 30, 2026 and December 31, 2025, we had total interest reserves of $197.7 million and $259.7 million, respectively, on 321 loans and 444 loans, respectively, with a total UPB of $8.25 billion and $8.68 billion, respectively.

Note 4 —Loans Held-for-Sale, Net

Our GSE loans held-for-sale are typically sold within 60 days of loan origination, while our non-GSE loans are generally expected to be sold to third parties or securitized within 180 days of loan origination. Loans held-for-sale, net consists of the following ($ in thousands):

During the three and nine months ended September 30, 2026, we sold $978.2 million and $2.79 billion, respectively, of loans held-for-sale. During the three and nine months ended September 30, 2025, we sold $2.03 billion and $3.56 billion, respectively, of loans held-for-sale.

At September 30, 2026 and December 31, 2025, there wereno loans held-for-sale that were 90 days or more past due, and there wereno loans held-for-sale that were placed on a non-accrual status.

Note 5 —Capitalized Mortgage Servicing Rights

Our capitalized mortgage servicing rights (“MSRs”) reflect commercial real estate MSRs derived primarily from loans sold in our Agency Business or acquired MSRs. The discount rates used to determine the present value of all our MSRs throughout the periods presented were between 8% -14% (representing a weighted average discount rate of 12%) based on our best estimate of market discount rates. The weighted average estimated life remaining of our MSRs was 5.6 years and 6.1 years at September 30, 2026 and December 31, 2025, respectively.

A summary of our capitalized MSR activity is as follows ($ in thousands):

We collected prepayment fees totaling $1.1 million and $2.8 million during the three and nine months ended September 30, 2026, respectively, and $0.5 million and $2.4 million during the three and nine months ended September 30, 2025, respectively, which are included as a component of servicing revenue, net on the consolidated statements of operations. At September 30, 2026 and December 31, 2025, no MSRs were considered impaired.

The expected amortization of capitalized MSRs recorded at September 30, 2026 is as follows ($ in thousands):

Based on scheduled maturities, actual amortization may vary from these estimates.

Note 6 —Mortgage Servicing

Product and geographic concentrations that impact our servicing revenue are as follows ($ in thousands):

(1)Excludes loans for which we are not collecting a servicing fee.

(2)Represents bridge loans sold by our Structured Business that we are servicing.

(3)No other individual state represented 4% or more of the total.

At September 30, 2026 and December 31, 2025, our weighted average servicing fee was 34.7 basis points and 35.6 basis points, respectively. At September 30, 2026 and December 31, 2025, we held total escrow balances (including unfunded collateralized loan obligation ("CLO") hold backs) of approximately $1.30 billion and $1.35 billion, respectively, of which approximately $1.29 billion and $1.34 billion, respectively, is not included in our consolidated balance sheets. These escrows are maintained in separate accounts at several federally insured depository institutions, which may exceed FDIC insured limits. We earn interest income on the total escrow deposits, which is generally based on a market rate of interest negotiated with the financial institutions that hold the escrow deposits. Interest earned on total escrows, net of interest paid to the borrower, is included as a component of servicing revenue, net in the consolidated statements of operations as noted in the following table.

The components of servicing revenue, net are as follows ($ in thousands):

Note 7 —Securities Held-to-Maturity

Agency Private Label Certificates (“APL certificates”). In connection with our Private Label securitizations, we retain the most subordinate class of the APL certificates in satisfaction of credit risk retention requirements. At September 30, 2026, we held APL certificates with an initial face value of $192.8 million, which were purchased at a discount for $119.0 million. These certificates are collateralized by 5-year to 10-year fixed rate first mortgage loans on multifamily properties, bear interest at an initial weighted average variable rate of 3.94% and have an estimated weighted average remaining maturity of 4.6 years. The weighted average effective interest rate was 8.84% at both September 30, 2026 and December 31, 2025, including the accretion of a portion of the discount deemed collectible. Approximately $101.9 million is estimated to mature in one to five years and $90.9 million is estimated to mature in five to ten years.

Agency B Piece Bonds. At September 30, 2026, we held 49%, or $106.2 million initial face value, ofseven Freddie Mac SBL program B Piece bonds, which were previously purchased at a discount for $74.7 million, and sold the remaining 51% to a third party. These securities are collateralized by a pool of multifamily mortgage loans, had an initial weighted average variable rate of 3.74% and have an estimated weighted average remaining maturity of 11.4 years. The weighted average effective interest rate was 2.96% and 2.00% at September 30, 2026 and December 31, 2025, respectively, including the accretion of a portion of the discount deemed collectible. Approximately $30.9 million is estimated to mature after ten years.

A summary of our securities held-to-maturity is as follows ($ in thousands):

A summary of the changes in the allowance for credit losses for our securities held-to-maturity is as follows ($ in thousands):

The allowance for credit losses on our held-to-maturity securities consists of (1) a general reserve estimated on a collective basis by major security type and was based on a reasonable and supportable forecast period and a historical loss reversion for similar securities, and (2) a specific reserve for underlying loans that are probable of loss. At September 30, 2026, securities held-to-maturity with a carrying value of $10.5 million (before specific allowances of $8.2 million) were on non-accrual status. We continue to accrue interest on all other securities that remain current.

We recorded interest income (including the amortization of discount) related to these investments of $3.7 million and $11.3 million during the three and nine months ended September 30, 2026, respectively, and $3.6 million and $10.7 million during the three and nine months ended September 30, 2025, respectively.

Note 8 —Investments in Equity Affiliates

We account for all investments in equity affiliates under the equity method. A summary of these investments is as follows ($ in thousands):

Fifth Wall Ventures ("Fifth Wall"). During the three and nine months ended September 30, 2026, we recorded a loss of $2.6 million and $3.3 million, respectively, and made contributions of $1.5 million and $4.8 million, respectively. During the three and nine months ended September 30, 2025, we recorded a loss of $0.1 million and income of $0.7 million, respectively, and made contributions of $0.7 million and $2.6 million, respectively. During the nine months ended September 30, 2025, we received distributions of $1.4 million, which were classified as returns of capital.

AWC Real Estate Opportunity Partners I LP ("AWC"). During the three and nine months ended September 30, 2026, we recorded income of $0.5 million and a loss of $0.3 million, respectively, and during the three and nine months ended September 30, 2025, we recorded a loss of $0.6 million and $0.8 million, respectively, related to this investment. During the three and nine months ended September 30, 2025, we made contributions of $2.4 million and $6.1 million, respectively. During the nine months ended September 30, 2025, we received distributions of $1.0 million, which were classified as returns of capital. Certain investments made by AWC are in qualified properties that have outstanding bridge loans originated by us and a Fannie Mae DUS loan we continue to service. Interest income recorded from the bridge loans was $1.8 million and $5.4 million for the three and nine months ended September 30, 2026, respectively, and $2.1 million and $6.4 million for the three and nine months ended September 30, 2025, respectively.

Biscayne Shores. In the second quarter of 2026, we contributed $25.0 million for a 25.6% interest in a multifamily property. During the three and nine months ended September 30, 2026, we received distributions totaling $9.0 million and $9.7 million, respectively, which were classified as returns of capital. Operating results from this investment were de minimis for all periods presented.

AMAC Holdings III LLC (“AMAC III”). During the three and nine months ended September 30, 2026, we recorded a loss of $1.0 million and $2.1 million, respectively. During the three and nine months ended September 30, 2025, we recorded a loss of $0.8 million and $2.6 million, respectively, and made contributions of $0.9 million for the nine months ended September 30, 2025.

Lexford Portfolio. During the three and nine months ended September 30, 2026, we received distributions from this investment and recognized income of $1.6 million and $10.4 million, respectively. During the three and nine months ended September 30, 2025, we received distributions from this investment of $51.0 million and $54.4 million, respectively, and recognized income of $48.0 million and $51.4 million, respectively, net of $3.0 million in transaction related expenses.

Arbor Residential Investor LLC. During the nine months ended September 30, 2025, we recorded a loss of $1.7 million. During the three and nine months ended September 30, 2025, we received distributions of $16.4 million and $22.5 million, respectively, which were classified as returns of capital. We completed the sale of our interest in this investment in July 2025.

See Note 18 for details of certain investments described above.

Note 9 —Real Estate Owned

A summary of our REO assets is as follows ($ in thousands):

During the three and nine months ended September 30, 2026, we foreclosed onone andsix multifamily bridge loans, respectively, each of which was collateralized byone property, and received ownership of the underlying collateral as REO assets. The loans foreclosed during the three and nine months ended September 30, 2026 had an aggregate net carrying value of $13.0 million and $115.8 million, respectively, net of CECL reserves of $3.5 million. Upon foreclosure, we recorded charge-offs against the allowance for credit losses of $6.0 million during second quarter of 2026, which included $2.5 million of additional provision for credit losses recognized upon foreclosure. There were no reversals of previously recorded allowance for credit losses upon foreclosure during either period.

During the three and nine months ended September 30, 2026, we sold five andnine, respectively, existing multifamily REO properties for $40.2 million and $85.5 million, respectively, and repaid mortgage notes outstanding of $14.0 million and $38.5 million, respectively. During the three and nine months ended September 30, 2026, we recognized a gain of $1.6 million, and losses of $0.8 million, respectively, relating to these dispositions, excluding the loss associated with the significant financing component discussed below. Additionally, we provided new bridge loan financing to three and six of the buyers, respectively, totaling $32.7 million and $74.1 million, respectively. The bridge loans bear interest at floating rates generally equal to the greater of stated floors ranging from 5.00% to 6.74% and SOFR plus spreads ranging from 1.50% to 3.00%, withtwo loans increasing in year two to the greater of stated floors ranging from 5.50% to 6.17% and SOFR plus a spread of 2.50% on both loans. One of the new financings provided was deemed to have a significant financing component and, as a result, during the nine months ended September 30, 2026, we recorded a loss and corresponding liability of $0.1 million as an adjustment to the purchase price, which will be accreted into interest income over the life of the loan. The gains and losses on these transactions were recorded through gain (loss) on real estate on the consolidated statements of operations.

The newly originated loans described above represent loan-to-capitalization ratios ranging from 72%-88%, reflecting additional equity contributed by the new borrowers to fund the agreed upon purchase price, closing costs, capital expenditures and other reserve requirements.

During thethree and nine months ended September 30, 2026, we determined that certain of our REO assets exhibited indicators of impairment based on expected disposition strategies, our evaluation of current market conditions and other property-specific assumptions, including expected disposition proceeds, recent market bids or broker opinions of value, projected property-level operating performance, occupancy and net operating income expectations. Based on our impairment analysis performed, we recorded an impairment loss of $34.1 million and $60.2 million, related tosix andten properties, for the three and nine months ended September 30, 2026, respectively, which represents the extent to which the carrying value of the properties exceeded their estimated fair value less costs to sell. The fair value measurements for these impaired REO assets were determined on a nonrecurring basis and were classified as Level 3 within the fair value hierarchy, including, as applicable, expected sales proceeds, broker opinions of value, appraisals, capitalization rates, projected property-level cash flows and estimated selling costs.

At September 30, 2026 and December 31, 2025, we had notes payable totaling $255.0 million and $223.0 million, respectively, which are collateralized by our REO assets. Interest rates on the notes range from SOFR plus 2.18% to SOFR plus 3.25%, with maturities spanning from December 2026 to September 2027.

At September 30, 2026 and December 31, 2025, our multifamily REO properties had a weighted average occupancy rate of approximately 42% and 45%, respectively, excluding three andtwo properties, respectively, that were vacant due to renovations. At September 30, 2026 and December 31, 2025, both our office buildings were vacant.

We recorded depreciation expense related to the REO assets of $5.4 million and $16.6 million for the three and nine months ended September 30, 2026, respectively, and $4.3 million and $11.8 million for the three and nine months ended September 30, 2025, respectively.

Loan Resolutions

The following loan resolutions relate to properties acquired through foreclosure and subsequently sold during the same reporting period. As these properties were foreclosed and sold during the same quarterly period, they are not included in the real estate owned balances presented above.

During the nine months ended September 30, 2026, we exercised our right to foreclose onthree properties in Texas that were the underlying collateral for bridge loans with an aggregate UPB of $67.0 million and an aggregate net carrying value of $66.1 million, includingtwo non-performing loans with an aggregate UPB of $46.1 million. The loans had a weighted average pay rate of SOFR plus 3.44% and a weighted average deferred rate of 0.36%. We recognized aggregate gains of $0.5 million through gain (loss) on real estate and recorded a $1.8 million loss through the provision for credit losses, which was charged-off. We sold the properties during the nine months ended September 30, 2026 for aggregate proceeds of $67.5 million to new borrowers and provided new bridge loans totaling $66.4 million with a weighted average interest rate of SOFR plus 2.50%. Two of the newly originated loans are subject to a weighted average interest rate floor of 6.14%.

The newly originated loans described above represent loan-to-capitalization ratios ranging from 81%-88%, reflecting additional equity contributed by the new borrowers to fund the agreed upon purchase price, closing costs, capital expenditures and other reserve requirements.

Note 10 —Debt Obligations

Credit and Repurchase Facilities

Borrowings under our credit and repurchase facilities are as follows ($ in thousands):

(1)At September 30, 2026 and December 31, 2025, debt carrying value for the Structured Business was net of unamortized deferred financing fees of $10.8 million and $11.7 million, respectively, and for the Agency Business was net of unamortized deferred financing fees of $0.4 million and $0.3 million at September 30, 2026 and December 31, 2025, respectively.

(2)At September 30, 2026 and December 31, 2025, all credit and repurchase facilities are variable rate loans.

(3)These facilities are subject to margin call provisions associated with changes in interest spreads.

(4)At September 30, 2026, this facility was collateralized by investment grade notes we retained from our BTR CLO 1 and CLO 22 securitizations with a principal balance of $41.0 million and $17.5 million, respectively. At December 31, 2025, this facility was collateralized by the investment grade notes we retained from our BTR CLO 1 securitization and certificates retained by us from our Freddie Mac Q Series securitization (“Q Series securitization”) with a principal balance of $26.5 million.

(5)The commitment amount under this facility expiressix months after the lender provides written notice. We then have an additionalsix months to repurchase the underlying loans.

(6)This facility matures at the latest maturity date of all purchased assets, which is currently October 2029.

(7)These facilities were extended in 2026.

(8)These amounts exclude outstanding notes payable on our REO assets with a debt carrying value of $255.0 million and $223.0 million at September 30, 2026 and December 31, 2025, respectively.

(9)This facility matured on July 31, 2026 and was not renewed.

(10)The $1.65 billion joint repurchase facility is shared between the Structured Business and the Agency Business. The joint repurchase facility and $1.66 billion repurchase facility have a shared aggregate total overadvance available of $250.0 million that has an interest rate of SOFR plus 6.85%, which amortizes quarterly through July 2027.

Structured Business

At September 30, 2026 and December 31, 2025, the weighted average interest rate for the credit and repurchase facilities of our Structured Business, including certain fees and costs, such as structuring, commitment, non-use and warehousing fees, was 6.65% and 6.40%, respectively. The leverage on our loan and investment portfolio financed through our credit and repurchase facilities, excluding the securities repurchase facility and the working capital facility, was 70% and 69% at September 30, 2026 and December 31, 2025, respectively.

In June 2026, we amended a $1.50 billion joint repurchase facility to increase the facility size to $1.65 billion to refinance loans previously held in CLO 17. The interest rate on the loans transferred from CLO 17 is SOFR plus 1.65%.

In May 2026, we amended a $1.22 billion repurchase facility to increase the facility size to $1.66 billion to refinance loans previously held in CLO 17. The interest rate on the loans transferred from CLO 17 is SOFR plus 1.75%.

In March 2026, we entered into a $300.0 million credit facility to finance BTR loans that matures in March 2029, with aone-year extension option. The facility may be increased, subject to lender approval, by up to $50.0 million to a maximum of $350.0 million. The facility has an interest rate of SOFR plus 3.00%, with a SOFR floor of 2.50%.

Agency Business

In June 2026, we extended the maturity of our other $200.0 million credit facility to June 2027 and reduced the interest rate from SOFR plus 1.35% to SOFR plus 1.20%.

In March 2026, we extended the maturity of a $200.0 million credit facility to March 2027 and reduced the interest rate from SOFR plus 1.40% to SOFR plus 1.35%.

Securitized Debt

We account for securitized debt transactions on our consolidated balance sheet as financing facilities. These transactions are considered VIEs for which we are the primary beneficiary and are consolidated in our financial statements. The investment grade notes and guaranteed certificates issued to third parties are treated as secured financings and are non-recourse to us.

Borrowings and the corresponding collateral under our securitized debt transactions are as follows ($ in thousands):

(1)Debt carrying value is net of $24.1 million and $17.5 million of deferred financing fees at September 30, 2026 and December 31, 2025, respectively.

(2)At September 30, 2026 and December 31, 2025, the aggregate weighted average note rate for our CLOs, including certain fees and costs, was 6.20% and 6.07%, respectively.

(3)At September 30, 2026 and December 31, 2025,21 and 39 loans, respectively, with a total UPB of $773.9 million and $1.69 billion, respectively, were deemed a "credit risk" as defined by the CLO indentures. A credit risk asset is generally defined as one that, in the CLO collateral manager's reasonable business judgment, has a significant risk of becoming a defaulted asset.

(4)Represents restricted cash held for principal repayments as well as for reinvestment in the CLOs. Does not include restricted cash related to interest payments, delayed fundings and expenses totaling $10.0 million and $10.1 million at September 30, 2026 and December 31, 2025, respectively.

(5)The replenishment period for CLO 17 and CLO 18 ended in June 2024 and August 2024, respectively.

CLO 22. In August 2026, we completed CLO 22, through a wholly owned subsidiary, issuing nine tranches of CLO notes totaling $825.0 million. Of the total CLO notes issued, $730.1 million consisted of investment grade notes issued and we retained subordinate interests in the issuing vehicle of $112.4 million, including $17.5 million of the investment grade notes. As of the CLO closing date, the notes were secured by a portfolio of real estate related assets and cash with a face value of $768.3 million, with the real estate related assets primarily comprised of first-lien mortgage bridge loans contributed from our existing loan portfolio. The CLO has a replacement period of approximately two years and six months that allows the principal proceeds from repayments of the portfolio assets to be reinvested in qualifying replacement assets, subject to certain conditions outlined in the indenture. Thereafter, the outstanding debt will decrease as loans are repaid. The proceeds of the issuance also included $56.7 million of capacity to acquire additional loans for a period of up to 180 days from the closing date, resulting in the issuer owning loan obligations with a face value of $825.0 million, representing leverage of 86%. The notes sold to third parties had an initial weighted average interest rate of 1.70% plus term SOFR, with interest payable monthly.

CLO 17. In May 2026, we unwound CLO 17, redeeming the remaining outstanding notes totaling $787.0 million, which were repaid from the availability in our credit and repurchase facilities.

CLO 21. In March 2026, we completed CLO 21, through a wholly owned subsidiary, issuing nine tranches of CLO notes totaling $762.6 million. Of the total CLO notes issued, $674.0 million consisted of investment grade notes issued to third-party investors. The remaining $88.6 million were below investment grade notes that were retained by us. As of the CLO closing date, the notes were secured by a portfolio of real estate related assets and cash with a face value of $662.6 million, with the real estate related assets primarily comprised of first-lien mortgage bridge loans contributed from our existing loan portfolio. The CLO has a replacement period of approximately two years and six months, during which principal payments and sale proceeds from the underlying loans may be reinvested into qualifying replacement loan obligations, subject to conditions outlined in the indenture. Thereafter, the outstanding debt balance will decrease as loans are repaid. The proceeds of the issuance also included $100.0 million for the purpose of acquiring additional loan obligations within 180 days from the CLO closing date, which we subsequently utilized, resulting in the issuer owning loan obligations with a face value of $762.6 million, representing leverage of 88%. The notes sold to third parties had an initial weighted average interest rate of 1.73% plus term SOFR, with interest payable monthly.

Securitization Paydowns. During the three and nine months ended September 30, 2026, outstanding notes totaling $50.3 million and $224.5 million, respectively, on our existing CLOs have been paid down.

Senior Unsecured Notes

A summary of our senior unsecured notes is as follows ($ in thousands):

(1)At September 30, 2026 and December 31, 2025, the carrying value is net of deferred financing fees of $15.5 million and $20.9 million, respectively.

(2)At September 30, 2026 and December 31, 2025, the aggregate weighted average note rate, including certain fees and costs, was 7.65% and 7.06%, respectively.

(3)These notes can be redeemed by us prior tothree months before the maturity date, at a redemption price equal to 100% of the aggregate principal amount, plus a “make-whole” premium and accrued and unpaid interest. We have the right to redeem the notes within three months prior to the maturity date at a redemption price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest.

(4)These notes can be redeemed by us prior tosix months before the maturity date, at a redemption price equal to 100% of the aggregate principal amount, plus a “make-whole” premium and accrued and unpaid interest. We have the right to redeem the notes withinsix months prior to the maturity date at a redemption price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest.

(5)In April 2026, we redeemed our 5.00% senior notes at maturity.

(6)In July 2026, we redeemed our 4.50% senior notes. See "Convertible Senior Unsecured Notes" below.

Convertible Senior Unsecured Notes

In July 2026, we issued $375.0 million in aggregate principal amount of 6.25% convertible senior unsecured notes due July 2029 ("6.25% Convertible Notes") through a private placement offering, which includes the exercised initial purchaser's over-allotment option of $50.0 million. The 6.25% Convertible Notes pay interest semiannually in arrears and are scheduled to mature in July 2029, unless earlier converted or repurchased by the holders pursuant to their terms. The initial conversion rate was 164.0016 shares of common stock per $1,000 of principal representing a conversion price of $6.10 per share of common stock. At September 30, 2026, the 6.25% Convertible Notes had a conversion rate of 164.0016 shares of common stock per $1,000 of principal, which represented a conversion price of $6.10 per share of common stock.

Prior to April 1, 2029, the 6.25% Convertible Notes are convertible at the option of the holders only upon the occurrence of certain events and during specified periods, and thereafter at any time until the second scheduled trading day immediately preceding maturity. Upon conversion, we may elect to settle the notes in cash or a combination of cash and shares of our common stock, with the principal amount required to be settled in cash. The conversion rate is subject to adjustment upon the occurrence of certain events. The notes are not redeemable by us prior to maturity, however, upon the occurrence of certain fundamental changes, holders may require us to repurchase the notes for cash at 100% of their principal amount, plus accrued and unpaid interest, if any, subject to certain exceptions.

We received net proceeds of $364.3 million, net of discounts and fees. We used the net proceeds to repurchase $114.3 million of our common stock in two separate transactions (see Note 16), and used the remaining proceeds, together with cash on hand, to redeem, in full, our outstanding $270.0 million 4.50% senior unsecured notes that were due in September 2026.

During the three and nine months ended September 30, 2026, we incurred interest expense on the 6.25% Convertible Notes totaling $6.4 million, of which $5.5 million and $0.9 million related to the cash coupon and deferred financing fees, respectively. Including the amortization of deferred financing fees, our weighted average total cost of the 6.25% Convertible Notes was 7.17%.

In August 2025, our 7.50% convertible senior unsecured notes ("7.50% Convertible Notes") matured, and were fully repaid with a portion of the net proceeds received from our 7.875% senior unsecured notes issued in July 2025. During the three months ended September 30, 2025, we incurred interest expense on the notes totaling $2.0 million, of which $1.8 million and $0.2 million related to the cash coupon and deferred financing fees, respectively. During the nine months ended September 30, 2025, we incurred interest expense on the notes totaling $14.2 million, of which $12.6 million and $1.6 million related to the cash coupon and deferred financing fees, respectively.

Junior Subordinated Notes

The carrying values of borrowings under our junior subordinated notes were $146.1 million and $145.5 million at September 30, 2026 and December 31, 2025, respectively, which is net of a deferred amount of $7.1 million and $7.6 million, respectively, (which is amortized into interest expense over the life of the notes) and deferred financing fees of $1.1 million and $1.2 million at September 30, 2026 and December 31, 2025, respectively. These notes have maturities ranging from March 2034 through April 2037 and pay interest quarterly at a floating rate. The weighted average note rate was 6.95% and 6.52% at September 30, 2026 and December 31, 2025, respectively. Including certain fees and costs, the weighted average note rate was 7.04% and 6.61% at September 30, 2026 and December 31, 2025, respectively.

Debt Covenants

Credit and Repurchase Facilities and Unsecured Debt. The credit and repurchase facilities and unsecured debt contain various financial covenants, including, but not limited to, minimum liquidity requirements, minimum net worth requirements, minimum unencumbered asset requirements, as well as certain other debt service coverage ratios, debt to equity ratios and minimum servicing portfolio tests. We were in compliance with all financial covenants and restrictions at September 30, 2026.

CLOs. Our CLO vehicles contain interest coverage and asset overcollateralization covenants that must be met as of the waterfall distribution date in order for us to receive such payments. If we fail these covenants in any of our CLOs, all cash flows from the applicable CLO would be diverted to repay principal and interest on the outstanding CLO bonds and we would not receive any residual payments until that CLO regained compliance with such tests. Our CLOs were in compliance with all such covenants at September 30, 2026, as well as on the most recent determination dates in October 2026. In the event of a breach of the CLO covenants that could not be cured in the near-term, we would be required to fund our non-CLO expenses, including employee costs, distributions required to maintain our REIT status, debt costs, and other expenses with (1) cash on hand, (2) income from any CLO not in breach of a covenant test, (3) income from real property and loan assets, (4) sale of assets, or (5) accessing the equity or debt capital markets, if available. We have the right to cure covenant breaches which would resume normal residual payments to us by purchasing non-performing loans out of the CLOs. However, we may not have sufficient liquidity available to do so at such time.

Our CLO compliance tests as of the most recent determination dates in October 2026 are as follows:

(1)The overcollateralization ratio divides the total principal balance of all collateral in the CLO by the total principal balance of the bonds associated with the applicable ratio. To the extent an asset is considered a defaulted security, the asset’s principal balance for purposes of the overcollateralization test is the lesser of the asset’s market value or the principal balance of the defaulted asset multiplied by the asset’s recovery rate which is determined by the rating agencies. Rating downgrades of CLO collateral will generally not have a direct impact on the principal balance of a CLO asset for purposes of calculating the CLO overcollateralization test unless the rating downgrade is below a significantly low threshold (e.g., CCC-) as defined in each CLO vehicle.

(2)The interest coverage ratio divides interest income by interest expense for the classes senior to those retained by us.

Our CLO overcollateralization ratios as of the determination dates subsequent to each quarter are as follows:

(1)This table represents the quarterly trend of our overcollateralization ratio, however, the CLO determination dates are monthly, and we were in compliance with this test for all periods presented.

The ratio will fluctuate based on the performance of the underlying assets, transfers of assets into the CLOs prior to the expiration of their respective replenishment dates, purchase or disposal of other investments, and loan payoffs. No payment due under the junior subordinated indentures may be paid if there is a default under any senior debt and the senior lender has sent notice to the trustee. The junior subordinated indentures are also cross-defaulted with each other.

Note 11 —Allowance for Loss-Sharing Obligations

Our allowance for loss-sharing obligations related to the Fannie Mae DUS program is as follows ($ in thousands):

When a loan is sold under the Fannie Mae DUS program, we undertake an obligation to partially guarantee the performance of the loan. A liability is recognized for the fair value of the guarantee obligation undertaken for the non-contingent aspect of the guarantee and is removed only upon either the expiration or settlement of the guarantee. At September 30, 2026 and December 31, 2025, we had $36.9 million and $35.7 million, respectively, of guarantee obligations included in the allowance for loss-sharing obligations.

In addition to and separately from the fair value of the guarantee, we estimate our allowance for loss-sharing under CECL over the contractual period in which we are exposed to credit risk. The general reserve related to loss-sharing was based on a collective pooling basis with similar risk characteristics, a reasonable and supportable forecast and a reversion period based on our average historical losses through the remaining contractual term of the portfolio. In instances where payment under the loss-sharing obligations of a loan is determined to be probable and estimable (as the loan is probable of or is in foreclosure), we record a liability for the estimated loss-sharing specific reserve.

When we settle a loss under the DUS loss-sharing model, the net loss is charged-off against the previously recorded loss-sharing obligation. The settled loss is often net of any previously unreimbursed advanced principal and interest payments in accordance with the DUS program, which are reflected as reductions to the proceeds needed to settle losses. At September 30, 2026 and December 31, 2025, we had outstanding advances of $4.3 million and $7.3 million, respectively, which were netted against the allowance for loss-sharing obligations.

At September 30, 2026 and December 31, 2025, our allowance for loss-sharing obligations, associated with expected losses under CECL, was $87.3 million and $61.9 million, respectively, and represented 0.36% and 0.26%, respectively, of our Fannie Mae servicing portfolio.

At September 30, 2026 and December 31, 2025, the maximum quantifiable liability associated with our guarantees under the Fannie Mae DUS agreement was $4.72 billion and $4.60 billion, respectively. The maximum quantifiable liability is not representative of the actual loss we would incur. We would be liable for this amount only if all of the loans we service for Fannie Mae, for which we retain some risk of loss, were to default and all of the collateral underlying these loans was determined to be without value at the time of settlement.

Note 12 —Derivative Financial Instruments

We enter into derivative financial instruments to manage exposures that arise from business activities resulting in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates and credit risk. We do not use these derivatives for speculative purposes, but are instead using them to manage our interest rate and credit risk exposure.

Agency Rate Lock and Forward Sale Commitments. We enter into contractual commitments to originate and sell mortgage loans at fixed prices with fixed expiration dates. The commitments become effective when the borrower “rate locks” a specified interest rate within time frames established by us. All potential borrowers are evaluated for creditworthiness prior to the extension of the commitment. Market risk arises if interest rates move adversely between the time of the rate lock by the borrower and the sale date of the loan to an investor. To mitigate the effect of the interest rate risk inherent in providing rate lock commitments to borrowers under the GSE programs, we enter into a forward sale commitment with the investor simultaneously with the rate lock commitment with the borrower. The forward sale contract locks in an interest rate and price for the sale of the loan. The terms of the contract with the investor and the rate lock with the borrower are matched in substantially all aspects, with the objective of eliminating interest rate risk to the extent practical. Sale commitments with the investors have an expiration date that is longer than our related commitments to the borrower to allow, among other things, for closing of the loan and processing of paperwork to deliver the loan into the sale commitment.

These commitments meet the definition of a derivative and are recorded at fair value, including the effects of interest rate movements which are reflected as a component of gain on derivative instruments, net in the consolidated statements of operations. The estimated fair value of rate lock commitments also includes the fair value of the expected net cash flows associated with the servicing of the loan which is recorded as income from MSRs in the consolidated statements of operations.

During the three and nine months ended September 30, 2026, we recorded net losses of $1.9 million and $2.8 million, respectively, from changes in the fair value of these derivatives and income from MSRs of $11.1 million and $32.8 million, respectively. During the three and nine months ended September 30, 2025, we recorded net losses of $2.1 million and net gains of $3.3 million, respectively, from changes in the fair value of these derivatives and income from MSRs of $15.5 million and $34.6 million, respectively. See Note 13 for details.

Treasury Futures and Credit Default Swaps. We enter into over-the-counter treasury futures and credit default swaps to hedge our interest rate and credit risk exposure inherent in (1) our held-for-sale Agency Business Private Label loans from the time the loans are rate locked until sale or securitization, and (2) our Agency Business SFR – fixed rate loans from the time the loans are originated until the time they can be financed with match term fixed rate securitized debt. Our treasury futures typically have athree-month maturity and are tied to thefive-year andten-year treasury rates. Our credit default swaps typically have afive-year maturity, are tied to the credit spreads of the underlying bond issuers and we typically hold our position until we price our Private Label loan securitizations. These instruments do not meet the criteria for hedge accounting, are cleared by a central clearing house and variation margin payments made in cash are treated as a legal settlement of the derivative itself. Our agreements with the counterparties provide for bilateral collateral pledging based on the counterparties' market value. The counterparties have the right to re-pledge the collateral posted, but have the obligation to return the pledged collateral as the market value of the treasury futures change. Our policy is to record the asset and liability positions on a net basis.

At September 30, 2026 and December 31, 2025, we had $2.4 million and $1.6 million, respectively, included in others assets, which was comprised of cash posted as collateral of $0.6 million and $1.6 million, respectively, and net asset and liability positions of $1.8 million and $0.1 million, respectively, from the fair value of our treasury futures.

During the three months ended September 30, 2026, we recorded realized and unrealized gains of $0.1 million and $2.1 million to our Agency Business, related to our swaps. During the nine months ended September 30, 2026, we recorded realized and unrealized gains of $1.8 million and $1.8 million to our Agency Business, related to our swaps. During the three months ended September 30, 2025, we recorded realized losses of $0.8 million and unrealized gains of $0.7 million to our Agency Business, related to swaps. During the nine months ended September 30, 2025, we recorded realized losses of $1.3 million and unrealized losses of $0.5 million to our Agency Business, related to our swaps.

A summary of our non-qualifying derivative financial instruments in our Agency Business is as follows ($ in thousands):

Note 13 —Fair Value

Fair value estimates are dependent upon subjective assumptions and involve significant uncertainties resulting in variability in estimates with changes in assumptions. The following table summarizes the principal amounts, carrying values and the estimated fair values of our financial instruments ($ in thousands):

Assets and liabilities disclosed at fair value are categorized based upon the level of judgment associated with the inputs used to measure their fair value. Determining which category an asset or liability falls within the hierarchy requires judgment and we evaluate our hierarchy disclosures each quarter. Hierarchical levels directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities are as follows:

Level 1—Inputs are unadjusted and quoted prices exist in active markets for identical assets or liabilities, such as government, agency and equity securities.

Level 2—Inputs (other than quoted prices included in Level 1) are observable for the asset or liability through correlation with market data. Level 2 inputs may include quoted market prices for a similar asset or liability, interest rates and credit risk. Examples include non-government securities, certain mortgage and asset-backed securities, certain corporate debt and certain derivative instruments.

Level 3—Inputs reflect our best estimate of what market participants would use in pricing the asset or liability and are based on significant unobservable inputs that require a considerable amount of judgment and assumptions. Examples include certain mortgage and asset-backed securities, certain corporate debt and certain derivative instruments.

The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy.

Loans and investments, net. Fair values of loans and investments that are not impaired are estimated using inputs based on direct capitalization rate and discounted cash flow methodology using discount rates, which, in our opinion, best reflect current market interest rates that would be offered for loans with similar characteristics and credit quality (Level 3). Fair values of impaired loans and investments are estimated using inputs that require significant judgments, which include assumptions regarding discount rates, capitalization rates, creditworthiness of major tenants, occupancy rates, availability of financing, exit plans and other factors (Level 3).

Loans held-for-sale, net. Consists of originated loans that are generally expected to be transferred or sold within 60 days to 180 days of loan funding, and are valued using pricing models that incorporate observable inputs from current market assumptions or a hypothetical securitization model utilizing observable market data from recent securitization spreads and observable pricing of loans with similar characteristics (Level 2). Fair value includes the fair value allocated to the associated future MSRs and is calculated pursuant to the valuation techniques described below for capitalized mortgage servicing rights, net (Level 3).

Capitalized mortgage servicing rights, net. Fair values are estimated using inputs based on discounted future net cash flow methodology (Level 3). MSRs are initially recorded at fair value and are carried at amortized cost. The fair value of MSRs is estimated using a process that involves the use of independent third-party valuation experts, supported by commercially available discounted cash flow models and analysis of current market data. The key inputs used in estimating fair value include the discount rate and contractually specified servicing fees, and to a lesser extent the prepayment speed of the underlying loans, annual per loan cost to service loans, delinquency rates, late charges and other economic factors.

Securities held-to-maturity, net. Fair values are approximated using inputs based on current market quotes received from financial sources that trade such securities and are based on prevailing market data and, in some cases, are derived from third-party proprietary models based on well recognized financial principles and reasonable estimates about relevant future market conditions (Level 3).

Derivative financial instruments. Fair values of rate lock and forward sale commitments are estimated using valuation techniques, which include internally-developed models based on changes in the U.S. Treasury rate and other observable market data (Level 2). The fair value of rate lock commitments includes the fair value of the expected net cash flows associated with the servicing of the loans, see capitalized mortgage servicing rights, net above for details on the applicable valuation technique (Level 3). We also consider the impact of counterparty non-performance risk when measuring the fair value of these derivatives.

Credit facilities, repurchase facilities and notes payable - real estate owned. Fair values for credit and repurchase facilities and notes payable - real estate owned of the Structured Business are estimated using discounted cash flow methodology, using discount rates, which, in our opinion, best reflect current market interest rates for financing with similar characteristics and credit quality (Level 3). The majority of our credit and repurchase facilities for the Agency Business bear interest at rates that are similar to those available in the market currently and fair values are estimated using Level 2 inputs. For these facilities, the fair values approximate their carrying values.

Securitized debt and junior subordinated notes. Fair values are estimated based on broker quotations, representing the discounted expected future cash flows at a yield that reflects current market interest rates and credit spreads (Level 3).

Senior unsecured notes. Fair values are estimated at current market quotes received from active markets when available (Level 1). If quotes from active markets are unavailable, then the fair values are estimated utilizing current market quotes received from inactive markets (Level 2).

Convertible senior unsecured notes. Fair values are estimated using current market quotes received from inactive markets (Level 2).

We measure certain financial assets and financial liabilities at fair value on a recurring basis. The fair values of these financial assets and liabilities are determined using the following input levels at September 30, 2026 ($ in thousands):

We measure certain financial and non-financial assets at fair value on a nonrecurring basis. The fair values of these financial and non-financial assets, if applicable, were determined using the following input levels at September 30, 2026 ($ in thousands):

(1)We had an allowance for credit losses of $67.5 million relating to 22 impaired loans with an aggregate carrying value, before loan loss reserves, of $510.1 million at September 30, 2026. The fair values of these impaired loans are based on the value of the underlying collateral.

(2)We have an impairment loss of $1.8 million related to 3 loans held-for-sale with an aggregate carrying value, before unrealized impairment losses, of $13.9 million.

Loan impairment assessments. Loans held-for-investment are intended to be held to maturity and, accordingly, are carried at cost, net of unamortized loan origination costs and fees, loan purchase discounts, and net of allowance for credit losses, when such loan or investment is deemed to be impaired. We consider a loan impaired when, based upon current information, it is probable that all amounts due for both principal and interest will not be collected according to the contractual terms of the loan agreement. We evaluate our loans to determine if the value of the underlying collateral securing the impaired loan is less than the net carrying value of the loan, which may result in an allowance, and corresponding charge to the provision for credit losses, or an impairment loss. These valuations require significant judgments, which include assumptions regarding capitalization and discount rates, revenue growth rates, creditworthiness of major tenants, occupancy rates, availability of financing, exit plan and other factors.

Loans held-for-sale are generally expected to be transferred or sold within 60 days to 180 days of loan origination and are reported at the lower of cost or market. We consider a loan classified as held-for-sale impaired if, based on current information, it is probable that we will sell the loan below par, or not be able to collect all principal and interest in accordance with the contractual terms of the loan agreement. These loans are valued using pricing models that incorporate observable inputs from current market assumptions or a hypothetical securitization model utilizing observable market data from recent securitization spreads and observable pricing of loans with similar characteristics.

The tables above and below include all impaired loans, regardless of the period in which the impairment was recognized.

Quantitative information about Level 3 fair value measurements at September 30, 2026 is as follows ($ in thousands):

The derivative financial instruments using Level 3 inputs are outstanding for short periods of time (generally less than 60 days). A roll-forward of Level 3 derivative instruments is as follows ($ in thousands):

The components of fair value and other relevant information associated with our forward sales commitments and the estimated fair value of cash flows from servicing on loans held-for-sale are as follows ($ in thousands):

(1)Loans held-for-sale, net are recorded at the lower of cost or market on an aggregate basis and includes fair value adjustments related to estimated cash flows from MSRs.

We measure certain assets and liabilities for which fair value is only disclosed. The fair values of these assets and liabilities are determined using the following input levels at September 30, 2026 ($ in thousands):

Note 14 —Commitments and Contingencies

Agency Business Commitments. We must make certain representations and warranties concerning each loan we originate for the GSE or HUD programs. The representations and warranties relate to our practices in the origination and servicing of the loans, the accuracy of the information being provided by us and the conformity of the loans to the terms and conditions required by the GSEs and HUD. In the event of a breach of any representation or warranty, the GSEs or HUD could require us to repurchase a loan, even if the loan is not in default. Our obligation to repurchase the loan is independent of our risk-sharing obligations.

Our Agency Business is subject to supervision by certain regulatory agencies. Among other things, these agencies require us to meet certain minimum net worth, operational liquidity and restricted liquidity collateral requirements, and compliance with reporting requirements. Our adjusted net worth and liquidity required by the agencies for all periods presented exceeded these requirements.

At September 30, 2026, we were required to maintain at least $24.4 million of liquid assets in one of our subsidiaries to meet our operational liquidity requirements for Fannie Mae and we had operational liquidity in excess of this requirement.

We are generally required to share the risk of any losses associated with loans sold under the Fannie Mae DUS program and are required to secure this obligation by assigning restricted cash balances and/or a letter of credit to Fannie Mae. The amount of collateral required by Fannie Mae is a formulaic calculation at the loan level by a Fannie Mae assigned tier, which considers the loan balance, risk level of the loan, age of the loan and level of risk-sharing. Fannie Mae requires restricted liquidity for Tier 2 loans of 75 basis points, 15 basis points for Tier 3 loans and 5 basis points for Tier 4 loans, which is funded over a 48-month period that begins upon delivery of the loan to Fannie Mae. A significant portion of our Fannie Mae DUS serviced loans for which we have risk sharing are Tier 2 loans. At September 30, 2026, the restricted liquidity requirement totaled $106.6 million and was satisfied with a $70.0 million letter of credit and cash issued to Fannie Mae.

At September 30, 2026, reserve requirements for the current Fannie Mae DUS loan portfolio will require us to fund $33.0 million in additional restricted liquidity over the next 48 months, assuming no further principal paydowns, prepayments, or defaults within our at-risk portfolio. Fannie Mae periodically reassesses these collateral requirements and may make changes to these requirements in the future. We generate sufficient cash flow from our operations to meet these capital standards and do not expect any changes to have a material impact on our future operations; however, future changes to collateral requirements may adversely impact our available cash.

We are subject to various capital requirements in connection with seller/servicer agreements that we have entered into with secondary market investors. Failure to maintain minimum capital requirements could result in our inability to originate and service loans for the respective investor and, therefore, could have a direct material effect on our consolidated financial statements. At September 30, 2026, we met all of Fannie Mae’s quarterly capital requirements and our Fannie Mae adjusted net worth was in excess of the required net worth. We are not subject to capital requirements on a quarterly basis for Ginnie Mae and FHA, as requirements for these investors are only required on an annual basis.

As an approved designated seller/servicer under Freddie Mac’s SBL program, we are required to post collateral to ensure that we are able to meet certain purchase and loss obligations required by this program. Under the SBL program, we are required to post collateral equal to $5.0 million, which is satisfied with a $5.0 million letter of credit.

We enter into contractual commitments with borrowers providing rate lock commitments while simultaneously entering into forward sale commitments with investors. These commitments are outstanding for short periods of time (generally less than 60 days) and are described in more detail in Note 12 and Note 13.

Debt Obligations and Operating Leases. At September 30, 2026, the maturities of our debt obligations and the minimum annual operating lease payments under leases with a term in excess of one year are as follows ($ in thousands):

During the three and nine months ended September 30, 2026, we recorded lease expense of $3.0 million and $8.7 million, respectively. During the three and nine months ended September 30, 2025, we recorded lease expense of $2.7 million and $8.1 million, respectively.

Unfunded Commitments. In accordance with certain structured loans and investments, we have outstanding unfunded commitments of $1.44 billion at September 30, 2026 that we are obligated to fund as borrowers meet certain requirements. Specific requirements include, but are not limited to, property renovations, building construction and conversions based on criteria met by the borrower in accordance with the loan agreements.

Litigation. From time to time, we may become involved in legal proceedings arising in the ordinary course of our business. Except as set forth below under “Securities Class Action” and "Derivative Actions," we are not currently a party to any material legal proceedings, and we are not aware of any pending or threatened legal proceeding against us that we believe could have an adverse effect on our business, operating results or financial condition. Because the results of legal proceedings are inherently unpredictable and uncertain, we are currently unable to predict whether it will have a material adverse effect on our business, financial condition or results of operations.

Securities Class Action

On July 31, 2024, a purported shareholder filed a securities class action lawsuit against us and certain of our executive officers in the United States District Court for the Eastern District of New York (the “Court”), alleging violations of Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder. The plaintiffs sought to represent a class of shareholders who purchased our shares of common stock between May 7, 2021 and July 11, 2024.

On November 5, 2024, the Court approved the motion appointing the lead plaintiffs and their counsel.

An amended complaint was filed by the lead plaintiffs on January 21, 2025. The amended complaint alleged that we had made false and misleading statements and/or failed to disclose material information in connection with allegedly overriding internal controls, engaging in substandard lending practices and not complying with agency requirements. The plaintiffs sought damages in an unspecified amount, as well as attorneys’ fees and costs. On April 10, 2025, we served a motion to dismiss the case. On March 31, 2026, the Court granted the motion to dismiss in its entirety, dismissing the amended complaint. The plaintiffs were granted leave to amend the complaint within 30 days of the order dismissing the case but ultimately decided not to amend. On May 5, 2026, the Court dismissed the plaintiffs’ claims with prejudice and judgment was entered in favor of Defendants. The plaintiffs’ time to appeal has expired.

Derivative Actions

On February 26, 2025, a purported shareholder filed a verified shareholder derivative suit in the United States District Court for the District of Maryland, derivatively and on behalf of the Company, against certain officers and directors of the Board of Directors, asserting claims for breach of fiduciary duties, unjust enrichment, abuse of control, gross mismanagement, waste of corporate assets, violations of Section 14(a) of the Exchange Act, and contribution under the Exchange Act, arising from substantially the same facts and events as alleged in the above-mentioned Securities Class Action. The complaint sought unspecified damages, costs and expenses, as well as other relief. On March 17, 2025, another purported shareholder filed a substantially similar verified shareholder derivative complaint, and the derivative actions were consolidated as In re Arbor Realty Trust, Inc. Stockholder Derivative Litigation, No. 1:25-cv-00639. On April 28, 2025, the Court entered a joint stipulation and order to stay the action pending resolution of the motion to dismiss in the Securities Class Action. On June 12, 2026, the parties filed a joint stipulation to voluntarily dismiss this action without prejudice, which was subsequently entered by the Court on July 1, 2026.

On April 18, 2025, another purported shareholder filed a substantially similar verified shareholder derivative complaint in the District Court for the Eastern District of New York. On May 20, 2025, the Court entered a joint stipulation and order to stay the action pending resolution of the motion to dismiss in the Securities Class Action. On April 14, 2026, the Court lifted the stay. The next day, the parties filed a joint letter to the Court, requesting that the Court reinstate the stay pursuant to its May 20, 2025 order. On April 15, 2026, the Court ordered the parties to file a joint status report by May 5, 2026, which the parties did. On May 5, 2026, the Court ordered the parties to file a joint status report by June 9, 2026. On June 9, 2026, the parties filed a joint stipulation to voluntarily dismiss this action without prejudice, which was subsequently entered by the Court on July 13, 2026.

On July 18, 2025, a purported shareholder filed a verified shareholder derivative complaint in the Circuit Court for the Baltimore City, Maryland, derivatively and on behalf of the Company, against certain officers and directors of the Board of Directors, asserting demand refusal and a claim for breach of fiduciary duty. On September 15, 2025, the Court entered a joint stipulation and order to stay the action pending resolution of the motion to dismiss in the Securities Class Action. On June 19, 2026, the court entered a joint stipulation and order to extend the stay until July 10, 2026. On July 10, 2026, the parties filed a joint stipulation to voluntarily dismiss this action without prejudice, which was subsequently entered by the Court on July 14, 2026.

On July 29, 2025, two purported shareholders filed a verified shareholder derivative complaint in the United States District Court for the Eastern District of New York, derivatively and on behalf of the Company, against certain officers and directors of the Board of Directors, asserting demand refusal and claims for violation of Section 14(a) of the Exchange Act, breach of fiduciary duty and unjust enrichment. On October 23, 2025, the Court granted a joint motion to change venue and transferred the action to the United States District Court for the District of Maryland. On November 14, 2025, the court entered a joint stipulation and order to stay the action pending resolution of the motion to dismiss in the Securities Class Action. On May 18, 2026, the court entered a joint stipulation and order to extend the stay until July 10, 2026. On July 10, 2026, the parties filed a joint stipulation to voluntarily dismiss this action without prejudice, which was subsequently entered by the Court on July 13, 2026.

On August 5, 2025, a purported shareholder filed a verified shareholder derivative complaint in the United States District Court for the Eastern District of New York, derivatively and on behalf of the Company, against certain officers and directors of the Board of Directors, asserting demand futility and claims for violation of Section 14(a) of the Exchange Act, breach of fiduciary duty, and unjust enrichment. On September 10, 2025, the Court entered a joint stipulation and order to stay the action pending resolution of the motion to dismiss in the Securities Class Action. On June 18, 2026, the parties filed a joint stipulation to voluntarily dismiss this action without prejudice, which was subsequently entered that same day.

Due to Borrowers. Due to borrowers represents borrowers’ funds held by us to fund certain expenditures or to be released at our discretion upon the occurrence of certain pre-specified events, and to serve as additional collateral for borrowers’ loans. While retained, these balances earn interest in accordance with the specific loan terms they are associated with.

Note 15 —Variable Interest Entities

Our involvement with VIEs primarily affects our financial performance and cash flows through amounts recorded in interest income, interest expense, provision for credit losses and through activity associated with our derivative instruments.

Consolidated VIEs. We have determined that our operating partnership, ARLP, and our CLO and Q Series securitization entities (“Securitization Entities”) are VIEs, which we consolidate.

Our Securitization Entities invest in real estate and real estate-related securities and are financed by the issuance of debt securities. We believe we hold the power necessary to direct the most significant economic activities of those entities. We also have exposure to losses to the extent of our equity interests, and rights to waterfall payments in excess of required payments to bond investors. As a result of consolidation, equity interests have been eliminated, and the consolidated balance sheets reflect both the assets held and debt issued to third parties by the Securitization Entities, prior to the unwind. Our operating results and cash flows include the gross asset and liability amounts related to the Securitization Entities as opposed to our net economic interests in those entities.

The assets and liabilities related to these consolidated Securitization Entities are as follows ($ in thousands):

Assets held by the Securitization Entities are restricted and can only be used to settle obligations of those entities. The liabilities of the Securitization Entities are non-recourse to us and can only be satisfied from each respective asset pool. See Note 10 for details. We are not obligated to provide, have not provided, and do not intend to provide financial support to any of the Securitization Entities.

Unconsolidated VIEs. We determined that we are not the primary beneficiary of 74 VIEs in which we have a variable interest at September 30, 2026 because we do not have the ability to direct the activities of the VIEs that most significantly impact each entity's economic performance or substantially all of the activities do not involve, or are not conducted on behalf of, the Company.

A summary of our variable interests in identified VIEs, of which we are not the primary beneficiary, at September 30, 2026 is as follows ($ in thousands):

(1)Represents the carrying amount of loans and investments before reserves. At September 30, 2026, $228.5 million of loans to VIEs had corresponding specific loan loss reserves of $26.4 million. The maximum loss exposure at September 30, 2026 would not exceed the carrying amount of our investment.

These unconsolidated VIEs have exposure to real estate debt of approximately $5.08 billion at September 30, 2026.

Note 16 —Equity

Preferred Stock. The Series D, Series E and Series F preferred stock are currently redeemable by us, and the Series F preferred stock, which totals $272.2 million, became redeemable by us on October 12, 2026. Holders of the Series F preferred stock were entitled to receive cumulative dividends at a fixed rate of 6.25% through October 29, 2026. Effective October 30, 2026, dividends on the Series F preferred stock accrue at a floating rate of three-month term SOFR plus 5.442% per annum; provided that in no event will the dividend rate be lower than 6.125%.

Common Stock. We have an equity distribution agreement with Citizens JMP Securities, LLC ("JMP"). In accordance with the terms of the agreement, we may offer and sell up to 30,000,000 shares of our common stock in "At-The-Market" equity offerings through JMP by means of ordinary brokers' transactions or otherwise at market prices prevailing at the time of sale, or at negotiated prices. At September 30, 2026, we had 23,439,335 shares available under this agreement.

We have a share repurchase program providing for the repurchase of up to $150.0 million of our outstanding common stock. The repurchase of our common stock may be made from time to time in the open market, through privately negotiated transactions, or otherwise in compliance with Rule 10b-18 and Rule 10b5-1 under the Exchange Act, based on our stock price, general market conditions, applicable legal requirements and other factors. The program may be discontinued or modified at any time. During the three and nine months ended September 30, 2026, we repurchased 193,714 and 7,862,306 respectively, shares of our common stock under our share repurchase program at a cost of $0.9 million and $52.4 million, respectively, excluding broker commission fees, representing an average cost of $4.79 and $6.66 per share, respectively. At September 30, 2026, there was $84.3 million available for repurchase under this program.

In connection with the issuance of the 6.25% Convertible Notes issuance in July 2026, we repurchased 2,140,300 shares of our common stock for $11.6 million and entered into a prepaid forward stock repurchase agreement. Under the prepaid forward agreement, we paid $102.7 million to repurchase an aggregate of 18,941,200 shares of our common stock at a forward price of $5.42 per share. The counterparty is also required to reimburse us for cash dividends paid on shares underlying the agreement prior to their settlement. During the three months ended September 30, 2026, we received and retired 249,700 shares of common stock pursuant to the prepaid forward agreement, resulting in 18,691,500 shares remaining to be delivered to us as of September 30, 2026.

Noncontrolling Interest. Noncontrolling interest relates to the operating partnership units (“OP Units”) issued to satisfy a portion of the purchase price in connection with the acquisition of the agency platform of Arbor Commercial Mortgage, LLC ("ACM") in 2016. Each of these OP Units are paired withone share of our special voting preferred shares having a par value of $0.01 per share and is entitled toone vote each on any matter submitted for stockholder approval. The OP Units are entitled to receive distributions if and when our Board of Directors authorizes and declares common stock distributions. The OP Units are also redeemable for cash, or at our option, for shares of our common stock on aone-for-one basis. At September 30, 2026, there were 16,165,771 OP Units outstanding, which represented 8.0% of the voting power of our outstanding stock.

Distributions. Dividends declared (on a per share basis) during the nine months ended September 30, 2026 are as follows:

Common Stock– In October 2026, our Board of Directors elected to suspend the quarterly common stock dividend effective immediately. The decision reflects our continued focus on preserving capital and maintaining financial flexibility to address upcoming debt maturities and support the resolution of legacy assets. We will continue to evaluate our dividend policy based upon market conditions and our performance, capital needs, and REIT distribution requirements with a continued focus on preserving book value and maximizing long-term stockholder value.

Deferred Compensation. During 2026, we granted 1,320,534 shares of restricted common stock to certain employees and Board of Directors members under the Amended Omnibus Stock Incentive Plan with a total grant date fair value of $9.4 million, of which: (1)414,492 shares with a grant date fair value of $3.1 million vested on the grant date in 2026; (2)361,830 shares with a grant date fair value of $2.7 million will vest in 2027; (3)371,382 shares with a grant date fair value of $2.7 million will vest in 2028; (4)53,803 shares with a grant date fair value of $0.3 million will vest in 2029; and (5)119,027 shares with a grant date fair value of $0.7 million will vest in 2030.

During 2026, we granted our chief executive officer 281,690 shares of restricted common stock with a grant date fair value of $2.2 million that vest in full in the first quarter of 2029. We also granted our chief executive officer up to 1,126,760 shares of performance-based restricted stock units (“RSUs”) with a grant date fair value of $3.1 million that vest at the end of afour-year performance period based on the achievement of certain stockholder return objectives.

During 2026, we granted our chief operating officer 649,350 shares of performance-based RSUs with a grant date fair value of $0.6 million that vest at the end of afive-year performance period based on the achievement of certain stockholder return objectives. We also awarded our chief operating officer a multi-year performance award pursuant to which he may earn between 0% and 100% of a maximum award value of $20.0 million based on the level of achievement of specified new business volume and related performance metrics during the applicable performance period. Following completion of the performance period and certification of the performance results, any portion of the award earned will be converted into and granted in the form of shares of restricted common stock. The grant date and number of shares resulting from the award will be determined at that time based on the applicable stock price specified in the award agreement. Subject to continued employment, the restricted shares will generally vest infive equal installments on the grant date and on each of the first four anniversaries of the grant date.

We also issued 103,523 fully-vested RSUs with a grant date fair value of $0.7 million to certain members of our Board of Directors, who have decided to defer the receipt of the common stock, into which the RSUs are converted, or to defer receipt of cash fees, to a future date pursuant to a pre-established deferral election.

During 2026, we withheld 352,077 shares from the net settlement of restricted common stock by employees for payment of withholding taxes on shares that vested.

Earnings Per Share (“EPS”). Basic EPS is calculated by dividing net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding during each period inclusive of unvested restricted stock with full dividend participation rights. Diluted EPS is calculated by dividing net income (loss) by the weighted average number of shares of common stock outstanding, plus the additional dilutive effect of common stock equivalents during each period. Our common stock equivalents include the weighted average dilutive effect of RSUs and OP Units and for the nine months ended September 30, 2025, convertible senior unsecured notes.

A reconciliation of the numerator and denominator of our basic and diluted EPS computations is as follows ($ in thousands, except share and per share data):

(1)For the three and nine months ended September 30, 2026, potentially dilutive securities were excluded from the computation of diluted loss per common share because their effect would have been anti-dilutive due to the net loss attributable to common stockholders incurred during the period.

(2)Net of preferred stock dividends.

(3)We consider OP Units to be common stock equivalents as the holders have voting rights, the right to distributions and the right to redeem the OP Units for the cash value of a corresponding number of shares of common stock or a corresponding number of shares of common stock, at our election.

(4)In August 2025, our 7.50% Convertible Notes matured and were fully settled. The three and nine months ended September 30, 2025 excludes interest expense of $2.0 million and $14.2 million, respectively, and potentially dilutive shares of 6,031,516 and 13,664,112, respectively, attributable to our 7.50% Convertible Notes since their effect would have been anti-dilutive. In August 2025, our 7.50% Convertible Notes matured and were fully settled.

(5)In connection with the issuance of our 6.25% Convertible Notes, we entered into a prepaid forward stock repurchase transaction covering approximately 18.9 million shares of common stock. These shares are considered repurchased for earnings per share purposes and are excluded from the weighted average shares outstanding used to calculate basic and diluted earnings per share beginning on the transaction date, regardless of when the shares are physically delivered.

(6)Represents the dilutive effect of performance-based RSUs granted to certain executive officers that vest based upon our achievement of total stockholder return objectives and RSUs granted to our chief executive officer and certain directors who have decided to defer the receipt of the common stock into which the RSUs are converted, or to defer receipt of cash fees, to a future date pursuant to a pre-established deferral election.

Note 17 —Income Taxes

As a REIT, we are generally not subject to U.S. federal income tax to the extent of our distributions to stockholders and as long as certain asset, income, distribution, ownership and administrative tests are met. To maintain our qualification as a REIT, we must annually distribute at least 90% of our REIT-taxable income to our stockholders and meet certain other requirements. We may also be subject to certain state, local and franchise taxes. Under certain circumstances, federal income and excise taxes may be due on our undistributed taxable income. If we were to fail to meet these requirements, we would be subject to U.S. federal income tax, which could have a material adverse impact on our results of operations and amounts available for distributions to our stockholders. We believe that all of the criteria to maintain our REIT qualification have been met for the applicable periods, but there can be no assurance that these criteria will continue to be met in subsequent periods.

The Agency Business is operated through our TRS Consolidated Group and is subject to U.S. federal, state and local income taxes. In general, our TRS entities may hold assets that the REIT cannot hold directly and may engage in real estate or non-real estate-related business.

On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted into law. The legislation includes significant changes to U.S. tax law. Both our REIT and Agency Business are now subject to the provisions of Section 162(m) of the Internal Revenue Code (“Section 162(m)”) which limits the tax deductibility of executive compensation to $1.0 million per year for each named executive officer (“NEO”). We believe that it is more likely than not a significant portion of our NEO compensation will exceed the $1.0 million limitation in current and future years resulting in no tax deductibility for the book expense associated with these compensation agreements, including share-based compensation. In addition, the OBBBA made permanent the deduction generally available to individuals, trusts and estates equal to 20% of ordinary REIT dividends, subject to certain limitations, which had previously been scheduled to expire for taxable years beginning on or after January 1, 2026. The OBBBA also increased the limitation on a REIT’s ownership of taxable REIT subsidiary securities from 20% to 25% of the REIT’s total assets, effective for taxable years beginning after December 31, 2025.

A summary of our income tax provision is as follows ($ in thousands):

Note 18 —Agreements and Transactions with Related Parties

Support Agreement and Employee Secondment Agreement. We have a support agreement and a secondment agreement with ACM and certain of its affiliates and certain affiliates of a relative of our chief executive officer (“Service Recipients”) where we provide support services and seconded employees to the Service Recipients. The Service Recipients reimburse us for the costs of performing such services and the cost of the seconded employees. During the three and nine months ended September 30, 2026, we incurred $0.9 million and $2.7 million, respectively, and, during the three and nine months ended September 30, 2025, we incurred $1.0 million and $3.0 million, respectively, of costs for services provided and employees seconded to the Service Recipients, all of which are reimbursable to us and included in other assets on the consolidated balance sheets.

Other Related Party Transactions. Investments in equity affiliates, which represent related parties under GAAP, and their related disclosures, are included in Note 8.

In certain instances, our business requires our executives to utilize privately owned aircraft in furtherance of our business. We have an aircraft time-sharing agreement with an entity controlled by our chief executive officer that owns a private aircraft. Pursuant to the agreement, we reimburse the aircraft owner for the required costs under Federal Aviation Administration regulations for the flights our executives take. Beginning in 2026, for certain flights, we also charter the aircraft from a certificated air carrier for use of the same aircraft. The air carrier provides charter revenue back to the aircraft owner when we use the aircraft. During the nine months ended September 30, 2026, we reimbursed the aircraft owner $0.4 million, and during the three and nine months ended September 30, 2025, we reimbursed the aircraft owner $0.2 million and $1.2 million, respectively, for flights taken by our executives pursuant to the time-sharing agreement. During the three and nine months ended September 30, 2026, we paid the aircraft owner $0.2 million and $0.8 million, respectively, for the flights chartered by our executives pursuant to the agreement.

In November 2025, we originated a $67.9 million bridge loan for the acquisition of a multifamily property purchased by a joint venture we formed with ACM, an entity owned by an immediate family member of our chief executive officer and a consortium of independent outside investors, we refer to as "Clarus Berkley," which was formed to purchase and operate the property. We contributed $1.5 million, for a 3.6% interest in the borrowing entity, while ACM and the entity owned by an immediate family member of our chief executive officer contributed a combined $1.8 million for a 4.3% interest in the borrowing entity. The loan has an interest rate of SOFR plus 2.50% with a SOFR floor of 2.50% and matures in November 2028. Interest income recorded from this loan was $1.1 million and $3.3 million for the three and nine months ended September 30, 2026, respectively. See Note 8 for further details.

In November 2025, we committed to fund a $44.8 million bridge loan ($4.4 million was funded at September 30, 2026) in an SFR BTR construction project. An entity owned by an immediate family member of our chief executive officer also made an equity investment in the project, representing less than 1.0% of the total equity invested. The loan has an interest rate of SOFR plus 4.25% with a SOFR floor of 3.50% and matures in November 2028, with aone-year extension option. Interest income recorded from this loan was less than $0.1 million and $0.1 million for the three and nine months ended September 30, 2026, respectively.

In October 2025, we committed to fund a $50.5 million bridge loan ($9.4 million was funded at September 30, 2026) in an SFR BTR construction project. ACM and an entity owned by an immediate family member of our chief executive officer also made equity investments in the project, representing in the aggregate 4.6% of the total equity invested. The loan has an interest rate of SOFR plus 4.25% with a SOFR floor of 3.50% and matures in October 2028, with aone-year extension option. Interest income recorded from this loan was $0.2 million for both the three and nine months ended September 30, 2026.

In August 2025, we originated a $4.0 million bridge loan for the acquisition of a condominium complex, of which one of our directors is the co-chief executive officer and president of an entity that is an indirect owner of the borrower. The loan has an interest rate of SOFR plus 3.25% with a SOFR floor of 4.32% and matures in August 2027. Interest income recorded from this bridge loan was less than $0.1 million and $0.3 million for the three and nine months ended September 30, 2026, respectively, and less than $0.1 million for both the three and nine months ended September 30, 2025.

In May 2025, we refinanced a $56.9 million bridge loan with a new $58.4 million bridge loan for an SFR BTR construction project. Two of our officers made minority equity investments totaling $0.5 million, representing approximately 4% of the total equity invested in the project. Interest on the new loan decreased from SOFR plus 5.50% with a SOFR floor of 3.25% to SOFR plus 2.75% with a SOFR floor of 3.50% and matures in May 2027. Interest income recorded from the loans was $1.0 million and $3.0 million for the three and nine months ended September 30, 2026, respectively, and $1.1 million and $3.7 million for the three and nine months ended September 30, 2025, respectively.

In February 2025, we refinanced a $46.2 million bridge loan we purchased from ACM in 2022 with a new $52.6 million bridge loan ($49.2 million was funded at September 30, 2026) for an SFR BTR construction project. A consortium of investors (which includes, among other unaffiliated investors, certain of our officers with a minority ownership interest) owns 70% of the borrowing entity and an entity indirectly owned and controlled by an immediate family member of our chief executive officer owns 10% of the borrowing entity. Interest on the new loan decreased from SOFR plus 5.50% to SOFR plus 4.75% and matures in February 2027. Interest income recorded from the loans was $1.1 million and $2.6 million for the three and nine months ended September 30, 2026, respectively, and $0.4 million and $1.0 million for the three and nine months ended September 30, 2025, respectively.

In 2024, we committed to fund a $62.4 million bridge loan ($33.8 million was funded at September 30, 2026) in an SFR BTR construction project. An entity owned by an immediate family member of our chief executive officer also made an equity investment in the project and owns a 3.34% equity interest in the borrowing entity. The loan has an interest rate of SOFR plus 4.25% with a SOFR floor of 3.50% and matures in July 2027. Interest income recorded from this loan was $0.7 million and $2.0 million for the three and nine months ended September 30, 2026, respectively, and $0.4 million and $0.7 million for the three and nine months ended September 30, 2025, respectively.

In 2024, we committed to fund a $42.5 million bridge loan ($40.8 million was funded at September 30, 2026) in an SFR BTR construction project. An entity owned by an immediate family member of our chief executive officer also made an equity investment in the project and owns a 2.28% equity interest in the borrowing entity. The loan has an interest rate of SOFR plus 4.25% with a SOFR floor of 3.50% and matures in May 2027. Interest income recorded from this loan was $0.8 million and $2.2 million for the three and nine months ended September 30, 2026, respectively, and $0.4 million and $0.8 million for the three and nine months ended September 30, 2025, respectively.

In 2022, we committed to fund a $67.1 million bridge loan ($55.6 million was funded at September 30, 2026) in an SFR BTR construction project. An entity owned by an immediate family member of our chief executive officer also made an equity investment in the project and owns a 2.25% equity interest in the borrowing entity. The loan has an interest rate of SOFR plus 4.63% with a SOFR floor of 0.25% and was scheduled to mature in May 2026, which was extended to May 2027. Interest income recorded from this loan was $1.2 million and $3.6 million for the three and nine months ended September 30, 2026, respectively, and $1.1 million and $3.2 million for the three and nine months ended September 30, 2025, respectively.

In 2021, we invested $4.2 million for 49.3% interest in a limited liability company (“LLC”) which purchased a retail property for $32.5 million and assumed an existing $26.0 million CMBS loan. A portion of the property can potentially be converted to office space, of which we have the right to occupy, in part. An entity owned by an immediate family member of our chief executive officer also made an investment in the LLC for a 10% ownership, is the managing member and holds the right to purchase our interest in the LLC.

In 2020, we originated a $14.8 million Private Label loan and a $3.4 million mezzanine loan ontwo multifamily properties owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns a 50% interest in the borrowing entity. In 2020, we sold the Private Label loan to an unconsolidated affiliate of ours. The mezzanine loan has a fixed interest rate of 9.00% and matures in April 2030. Interest income recorded from the mezzanine loan was less than $0.1 million and $0.2 million for the three and nine months ended September 30, 2026, respectively, and $0.1 million and $0.2 million for the three and nine months ended September 30, 2025, respectively.

In 2019, we, along with ACM, certain executives of ours and a consortium of independent outside investors, formed AMAC III, a multifamily-focused commercial real estate investment fund sponsored and managed by our chief executive officer and one of his immediate family members. We committed to a $30.0 million investment for an 18% interest in AMAC III. In 2019, AMAC III originated a $7.0 million mezzanine loan to a borrower with which we have an outstanding $34.0 million bridge loan. In 2020, for full satisfaction of the mezzanine loan, AMAC III became the owner of the property. Also in 2020, the $34.0 million bridge loan was refinanced with a $35.4 million bridge loan, which has an interest rate of SOFR plus 3.50%, and was scheduled to mature in February 2025 that we modified to extend the maturity to February 2028 in exchange for a $2.0 million paydown that was made in the first quarter of 2025. In September 2025, the loan was modified to extend the maturity to July 2028, adjust the interest rate to SOFR plus 1.00% with an all-in floor of 6.50%, and include a fixed pay rate of 1.00%, effective June 1, 2025, with the remaining balance deferred. Interest income recorded from the bridge loan was less than $0.1 million and $0.3 million for the three and nine months ended September 30, 2026, respectively, and de minimus and $1.2 million for the three and nine months ended September 30, 2025, respectively. See Note 8 for further details.

In 2019, we converted an existing bridge loan into a $2.0 million mezzanine loan with a fixed interest rate of 10.00%. The underlying multifamily property is owned in part by a consortium of investors (which includes, among other unaffiliated investors, certain of our officers and our chief executive officer) which owns interests ranging from 10.5% to 12.0% in the borrowing entities. The loan was scheduled to mature in May 2025, which was extended to February 2029. Interest income recorded from this loan was less than $0.1 million and $0.2 million for the three and nine months ended September 30, 2026, respectively, and $0.1 million and $0.2 million for the three and nine months ended September 30, 2025, respectively.

We, along with an executive officer of ours and a consortium of independent outside investors, hold equity investments in a portfolio of multifamily properties referred to as the “Lexford” portfolio, which is managed by an entity owned primarily by a consortium of affiliated investors, including our chief executive officer and an executive officer of ours. Based on the terms of the management contract, the management company is entitled to 4.75% of gross revenues of the underlying properties, along with the potential to share in the proceeds of a sale or restructuring of the debt. In 2018, the owners of Lexford restructured part of its debt and we originated 12 bridge loans totaling $280.5 million, which were used to repay in full certain existing mortgage debt and to renovate 72 multifamily properties included in the portfolio. The loans were originated in 2018, had interest rates of LIBOR plus 4.00% and were scheduled to mature in June 2021. During 2019, the borrower made payoffs and partial paydowns of principal totaling $250.0 million and in 2020, the remaining balance of the loans were refinanced with a $34.6 million Private Label loan, which has a fixed interest rate of 3.30% and matures in March 2030. In 2020, we sold the Private Label loan to an unconsolidated affiliate of ours. Further, as part of this 2018 restructuring, $50.0 million in unsecured financing was provided by an unsecured lender to certain parent entities of the property owners. ACM owns slightly less than half of the unsecured lender entity and, therefore, provided slightly less than half of the unsecured lender financing. Separate from the loans we originated in 2018, we provide limited (“bad boy”) guarantees for certain other debt controlled by Lexford. The bad boy guarantees may become a liability for us upon standard “bad” acts such as fraud or a material misrepresentation by Lexford or us. At September 30, 2026, this debt had an aggregate outstanding balance of approximately $294.0 million and is scheduled to mature through 2029. See Note 8 for further details.

Several of our executives, including our chief financial officer, corporate secretary and our chairman, chief executive officer and president, hold similar positions for ACM. Our chief executive officer and his affiliated entities (“the Kaufman Entities”) together beneficially own approximately 36% of the outstanding membership interests of ACM and certain of our employees and directors also hold an ownership interest in ACM. Furthermore, one of our directors serves as the trustee and co-trustee oftwo of the Kaufman Entities that hold membership interests in ACM. At September 30, 2026, ACM holds 2,535,870 shares of our common stock and 10,483,930 OP Units, which represents 6.4% of the voting power of our outstanding stock. Our Board of Directors approved a resolution under our charter allowing our chief executive officer and ACM, (which our chief executive officer has a controlling equity interest in), to own more than the 5% ownership interest limit of our common stock as stated in our amended charter.

Several of our loans and investments with related parties paid off or were divested during 2026 and 2025. Several bridge loans and related preferred equity investments totaling $148.4 million paid off. Interest income recorded on these loans was $0.5 million and $3.7 million for the three and nine months ended September 30, 2026, respectively, and $3.2 million and $9.5 million for the three and nine months ended September 30, 2025, respectively. A $46.9 million Fannie Mae loan was also paid off in 2025. Servicing revenue recorded on this loan was less than $0.1 million for both the three and nine months ended September 30, 2025. In July 2025, we divested our interest in a residential mortgage banking business. In connection with this sale, we received cash distributions totaling $16.4 million and $22.5 million during the three and nine months ended September 30, 2025, respectively, and recorded a loss of $1.7 million for the nine months ended September 30, 2025.

Note 19 —Segment Information

As described in Note 1, we operate throughtwo business segments – our Structured Business and our Agency Business. The summarized statements of operations and balance sheet data, as well as certain other data, by segment are included in the following tables ($ in thousands). Specifically identifiable costs are recorded directly to each business segment. For items not specifically identifiable, costs have been allocated between the business segments using the most meaningful allocation methodologies, which were predominately direct labor costs (i.e., time spent working on each business segment). Such costs include, but are not limited to, compensation and employee related costs, selling and administrative expenses and stock-based compensation. Intersegment revenue and expenses have been eliminated in the computation of total revenue and operating income (loss).

Our chief operating decision maker (“CODM”) is Ivan Kaufman, our chief executive officer. The CODM uses both net interest income and net income (loss) for each segment predominantly in the annual budget and forecasting process. The CODM considers both budget and actual results on a quarterly basis for both profit measures when making decisions about the allocation of operating and capital resources to each segment. The CODM also uses segment net interest income and net income (loss) to assess the performance of each segment by comparing the results of each segment with one another and in determining the compensation of certain employees.

(1) Includes income (loss) allocated to the noncontrolling interest holders not allocated to thetwo reportable segments.