EX-99.1 2 tm2131214d1_ex99-1.htm EXHIBIT 99.1

 

Exhibit 99.1

 

 

Arbor Realty Trust Reports Third Quarter 2021 Results and Increases Quarterly Dividend to $0.36 per Share

 

Company Highlights:

 

· Diversified, annuity-based operating platform with a multifamily focus that continues to produce strong distributable earnings and dividends in all cycles
   

  · GAAP net income of $0.51 and distributable earnings of $0.47 per diluted common share1

  · Raised cash dividend on common stock to $0.36 per share, our sixth consecutive quarterly increase

  · Raised $414 million of accretive growth capital:

  · $270 million from issuance of 4.50% senior unsecured notes due in 2026

  · $144 million from offering of 6.25% Series E preferred stock

 

Structured Business:

 

· Segment income of $48.1 million

· Record loan originations of $2.47 billion

· Structured loan portfolio of over $9 billion on growth of 24%

· Closed a $1.50 billion collateralized securitization vehicle, our largest to date

 

Agency Business:

 

· Segment income of $33.1 million

· Loan originations of $1.80 billion and a servicing portfolio of over $26 billion

 

Recent Developments:

 

· Raised an additional $201 million of accretive growth capital through the issuance of 6.25% Series F preferred stock

· Closed our 3rd private label securitization totaling $535 million

 

 

 

 

Arbor Realty Trust Reports Third Quarter 2021 Results and Increases Quarterly Dividend to $0.36 per Share

 

October 29, 2021 Page 2

 

Uniondale, NY, October 29, 2021 -- Arbor Realty Trust, Inc. (NYSE: ABR), today announced financial results for the third quarter ended September 30, 2021. Arbor reported net income for the quarter of $72.8 million, or $0.51 per diluted common share, compared to net income of $82.0 million, or $0.72 per diluted common share for the quarter ended September 30, 2020. Distributable earnings for the quarter was $75.7 million, or $0.47 per diluted common share, compared to $67.1 million, or $0.50 per diluted common share for the quarter ended September 30, 2020.1

 

Agency Business

 

Loan Origination Platform

 

   Agency Loan Volume  (in thousands) 
   Quarter Ended 
   September 30, 2021   June 30, 2021 
Fannie Mae  $719,730   $637,494 
Private Label   625,176    377,184 
Freddie Mac   307,664    155,914 
FHA   84,430    130,764 
SFR-Fixed Rate   67,227    11,996 
Total Originations  $1,804,227   $1,313,352 
           
Total Loan Sales  $1,006,958   $1,482,110 
           
Total Loan Commitments  $1,856,474   $1,194,344 

 

For the quarter ended September 30, 2021, the Agency Business generated revenues (excluding gains and losses on derivative instruments) of $79.7 million, compared to $91.2 million for the second quarter of 2021. Gain on sales, including fee-based services, net was $16.3 million for the quarter, reflecting a margin of 1.62%, compared to $19.1 million and 1.85% for the second quarter of 2021, excluding $449.9 million of private label loans securitized. Income from mortgage servicing rights was $32.5 million for the quarter, reflecting a rate of 1.75% as a percentage of loan commitments, compared to $26.3 million and 2.20% for the second quarter of 2021.

 

At September 30, 2021, loans held-for-sale was $1.27 billion which was primarily comprised of unpaid principal balances totaling $1.26 billion, with financing associated with these loans totaling $1.10 billion.

 

In October 2021, the Company closed its third private label securitization totaling $535.0 million. The Company originated and sold multifamily mortgage loans to the securitization and will be the primary servicer. The Company retained subordinate certificate interests in the securitization of $47.5 million, in satisfaction of credit risk retention requirements.

 

 

 

 

Arbor Realty Trust Reports Third Quarter 2021 Results and Increases Quarterly Dividend to $0.36 per Share

 

October 29, 2021 Page 3

 

Fee-Based Servicing Portfolio

 

The Company’s fee-based servicing portfolio totaled $26.21 billion at September 30, 2021 and excludes private label loans originated that were not yet securitized. Servicing revenue, net was $20.1 million for the quarter and consisted of servicing revenue of $35.0 million, net of amortization of mortgage servicing rights totaling $14.9 million.

 

   Fee-Based Servicing Portfolio ($ in thousands) 
   As of September 30, 2021   As of June 30, 2021 
   UPB   Wtd. Avg.
Fee		   Wtd. Avg.
Life (in years)		   UPB   Wtd. Avg.
Fee		   Wtd. Avg. Life
(in years)		 
Fannie Mae  $19,271,527    0.532%   8.4   $19,191,969    0.532%   8.3 
Freddie Mac   4,726,587    0.281%   9.8    4,708,457    0.285%   9.8 
Private Label   1,176,391    0.200%   8.8    1,176,627    0.200%   9.0 
FHA   933,519    0.156%   21.4    882,899    0.157%   21.0 
SFR-Fixed Rate   104,094    0.200%   5.7    75,103    0.200%   5.9 
Total  $26,212,118    0.457%   9.1   $26,035,055    0.459%   9.0 

 

Loans sold under the Fannie Mae program contain an obligation to partially guarantee the performance of the loan (“loss-sharing obligations”), and includes $34.4 million for the fair value of the guarantee obligation undertaken at September 30, 2021. The Company recorded a $3.2 million reversal of provision for loss sharing associated with CECL for the third quarter of 2021. At September 30, 2021, the Company’s total CECL allowance for loss-sharing obligations was $28.4 million, representing 0.15% of the Fannie Mae servicing portfolio.

 

Structured Business

 

Portfolio and Investment Activity

 

- Strong growth in the portfolio of $1.78 billion, or 24.1%

- Originated 118 loans totaling $2.47 billion, consisted primarily of multifamily bridge loans totaling $2.37 billion

- Payoffs and pay downs on 54 loans totaling $567.9 million

- Committed to fund one $17.6 million single-family rental build-to-rent loan

 

At September 30, 2021, the loan and investment portfolio’s unpaid principal balance, excluding loan loss reserves, was $9.17 billion, with a weighted average current interest pay rate of 4.56%, compared to $7.39 billion and 4.85% at June 30, 2021. Including certain fees earned and costs associated with the loan and investment portfolio, the weighted average current interest pay rate was 4.97% at September 30, 2021, compared to 5.33% at June 30, 2021.

 

 

 

 

Arbor Realty Trust Reports Third Quarter 2021 Results and Increases Quarterly Dividend to $0.36 per Share

 

October 29, 2021 Page 4

 

The average balance of the Company’s loan and investment portfolio during the third quarter of 2021, excluding loan loss reserves, was $8.18 billion with a weighted average yield of 5.55%, compared to $6.61 billion and 5.85% for the second quarter of 2021. The decrease in average yield was primarily due to lower rates on originations when compared to runoff.

 

During the third quarter of 2021, the Company recorded a $4.1 million reversal of provisions for loan losses associated with CECL, which includes a $1.1 million loan loss recovery. At September 30, 2021, the Company’s total allowance for loan losses was $131.5 million. The Company had six non-performing loans with a carrying value of $55.6 million, before related loan loss reserves of $2.6 million, compared to eight loans with a carrying value of $84.0 million, before related loan loss reserves of $6.5 million as of June 30, 2021.

 

Financing Activity

 

The Company completed its largest collateralized securitization vehicle to date totaling $1.50 billion of real estate related assets and cash. Investment grade-rated notes totaling $1.24 billion were issued, and the Company retained subordinate interests in the issuing vehicle of $262.5 million. The facility has a two-and-a-half-year asset replenishment period and an initial weighted average interest rate of 1.31% over LIBOR, excluding fees and transaction costs.

 

The balance of debt that finances the Company’s loan and investment portfolio at September 30, 2021 was $8.58 billion with a weighted average interest rate including fees of 2.64% as compared to $6.41 billion and a rate of 2.79% at June 30, 2021. The average balance of debt that finances the Company’s loan and investment portfolio for the third quarter of 2021 was $7.31 billion, as compared to $5.94 billion for the second quarter of 2021. The average cost of borrowings for the third quarter of 2021 was 2.76%, compared to 2.89% for the second quarter of 2021.

 

Capital Markets

 

The Company raised a significant amount of accretive growth capital primarily through the following transactions:

 

The Company issued $270.0 million of 4.50% senior unsecured notes in a private placement, generating net proceeds of $265.8 million after deducting offering expenses. The notes are due in 2026 and the proceeds are being used to make investments and for general corporate purposes.

 

The Company completed a public offering of 5.75 million shares of its 6.25% Series E cumulative redeemable preferred stock, including the underwriters’ exercise of their over-allotment option, generating net proceeds of $139.1 million. The Company used these proceeds to make investments relating to its business and for general corporate purposes.

 

In October 2021, the Company completed a public offering of 8.05 million shares of its 6.25% Series F fixed-to-floating cumulative redeemable preferred stock, including the underwriters’ exercise of their over-allotment option, generating net proceeds of $194.8 million. The Company is using these proceeds to make investments relating to its business and for general corporate purposes.

 

 

 

 

Arbor Realty Trust Reports Third Quarter 2021 Results and Increases Quarterly Dividend to $0.36 per Share

 

October 29, 2021 Page 5

 

Dividends

 

The Company announced today that its Board of Directors has declared a quarterly cash dividend of $0.36 per share of common stock for the quarter ended September 30, 2021, the Company’s sixth consecutive quarterly increase, representing a 20% increase over that time span. The dividend is payable on November 30, 2021 to common stockholders of record on November 15, 2021. The ex-dividend date is November 12, 2021.

 

Earnings Conference Call

 

The Company will host a conference call today at 10:00 a.m. Eastern Time. A live webcast and replay of the conference call will be available at http://www.arbor.com in the investor relations section of the Company’s website. Those without web access should access the call telephonically at least ten minutes prior to the conference call. The dial-in numbers are (866) 342-8591 for domestic callers and (203) 518-9797 for international callers. Please use participant passcode ABRQ321 when prompted by the operator.

 

A telephonic replay of the call will be available until November 5, 2021. The replay dial-in numbers are (800) 839-9305 for domestic callers and (402) 220-6094 for international callers.

 

About Arbor Realty Trust, Inc.

 

Arbor Realty Trust, Inc. (NYSE: ABR) is a nationwide real estate investment trust and direct lender, providing loan origination and servicing for multifamily, single-family rental (SFR) portfolios, and other diverse commercial real estate assets. Headquartered in New York, Arbor manages a multibillion-dollar servicing portfolio, specializing in government-sponsored enterprise products. Arbor is a leading Fannie Mae DUS® lender and Freddie Mac Optigo Seller/Servicer, and an approved FHA Multifamily Accelerated Processing (MAP) lender. Arbor’s product platform also includes bridge, CMBS, mezzanine and preferred equity loans. Rated by Standard and Poor’s and Fitch Ratings, Arbor is committed to building on its reputation for service, quality and customized solutions with an unparalleled dedication to providing our clients excellence over the entire life of a loan.

 

 

 

 

Arbor Realty Trust Reports Third Quarter 2021 Results and Increases Quarterly Dividend to $0.36 per Share

 

October 29, 2021 Page 6

 

Safe Harbor Statement

 

Certain items in this press release may constitute forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Arbor can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from Arbor’s expectations include, but are not limited to, changes in economic conditions generally, and the real estate markets specifically, in particular, due to the uncertainties created by the COVID-19 pandemic, continued ability to source new investments, changes in interest rates and/or credit spreads, and other risks detailed in Arbor’s Annual Report on Form 10-K for the year ended December 31, 2020 and its other reports filed with the SEC. Such forward-looking statements speak only as of the date of this press release. Arbor expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Arbor’s expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.

 

1. Non-GAAP Financial Measures

 

During the quarterly earnings conference call, the Company may discuss non-GAAP financial measures as defined by SEC Regulation G. In addition, the Company has used non-GAAP financial measures in this press release. A supplemental schedule of non-GAAP financial measures and the comparable GAAP financial measure can be found on the last page of this release.

 

Contact:

Arbor Realty Trust, Inc.

Paul Elenio, Chief Financial Officer

516-506-4422

pelenio@arbor.com

 

 

 

 

Arbor Realty Trust Reports Third Quarter 2021 Results and Increases Quarterly Dividend to $0.36 per Share

 

October 29, 2021 Page 7

 

ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

 

Consolidated Statements of Income - (Unaudited)

($ in thousands—except share and per share data)

 

   Quarter Ended September 30,   Nine Months Ended September 30, 
   2021   2020   2021   2020 
Interest income  $125,480   $81,701   $321,772   $253,307 
Interest expense   55,560    37,888    144,122    129,172 
Net interest income   69,920    43,813    177,650    124,135 
                     
Other revenue:                    
Gain on sales, including fee-based services, net   16,334    19,895    86,102    60,566 
Mortgage servicing rights   32,453    42,357    95,688    96,708 
Servicing revenue, net   20,088    13,348    50,939    40,156 
Property operating income   -    1,033    -    3,976 
Loss on derivative instruments, net   (1,492)   (753)   (7,320)   (58,852)
Other income, net   2,195    1,050    4,140    3,404 
Total other revenue   69,578    76,930    229,549    145,958 
                     
Other expenses:                    
Employee compensation and benefits   41,973    32,962    128,647    101,652 
Selling and administrative   11,757    9,356    33,707    29,013 
Property operating expenses   149    1,300    421    4,778 
Depreciation and amortization   1,807    1,922    5,349    5,830 
Provision for loss sharing (net of recoveries)   (3,272)   (2,227)   (1,070)   21,706 
Provision for credit losses (net of recoveries)   (3,799)   (7,586)   (12,689)   59,510 
Total other expenses   48,615    35,727    154,365    222,489 
                     
Income before extinguishment of debt, sale of real estate, income from equity affiliates, and income taxes   90,883    85,016    252,834    47,604 
Loss on extinguishment of debt   -    -    (1,370)   (3,546)
(Loss) gain on sale of real estate   -    (1,868)   1,228    (1,868)
Income from equity affiliates   5,086    32,358    32,095    56,758 
Provision for income taxes   (9,905)   (17,785)   (33,356)   (15,493)
                     
Net income   86,064    97,721    251,431    83,455 
                     
Preferred stock dividends   4,913    1,888    13,216    5,665 
Net income attributable to noncontrolling interest   8,347    13,836    26,806    11,012 
Net income attributable to common stockholders  $72,804   $81,997   $211,409   $66,778 
                     
Basic earnings per common share  $0.51   $0.72   $1.57   $0.60 
Diluted earnings per common share  $0.51   $0.72   $1.56   $0.59 
                     
Weighted average shares outstanding:                    
Basic   142,624,300    113,766,446    134,437,663    111,775,436 
Diluted   160,270,905    133,997,087    152,691,461    132,401,315 
                     
Dividends declared per common share  $0.35   $0.31   $1.02   $0.91 

 

 

 

 

Arbor Realty Trust Reports Third Quarter 2021 Results and Increases Quarterly Dividend to $0.36 per Share

 

October 29, 2021 Page 8

 

ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

 

Consolidated Balance Sheets

($ in thousands—except share and per share data)

 

   September 30,   December 31, 
   2021   2020 
   (Unaudited)     
Assets:          
Cash and cash equivalents  $380,730   $339,528 
Restricted cash   569,928    197,470 
Loans and investments, net (allowance for credit losses of $131,534 and $148,329, respectively)   8,993,790    5,285,868 
Loans held-for-sale, net   1,274,234    986,919 
Capitalized mortgage servicing rights, net   417,283    379,974 
Securities held-to-maturity, net (allowance for credit losses of $1,761 and $1,644, respectively)   112,735    95,524 
Investments in equity affiliates   91,846    74,274 
Due from related party   12,664    12,449 
Goodwill and other intangible assets   101,933    105,451 
Other assets   214,441    183,529 
Total assets  $12,169,584   $7,660,986 
           
Liabilities and Equity:          
Credit and repurchase facilities  $3,399,711   $2,234,883 
Collateralized loan obligations   4,715,804    2,517,309 
Senior unsecured notes   1,102,578    662,843 
Convertible senior unsecured notes, net   258,001    267,973 
Junior subordinated notes to subsidiary trust issuing preferred securities   142,192    141,656 
Due to related party   4,384    2,365 
Due to borrowers   93,544    89,325 
Allowance for loss-sharing obligations   62,828    64,303 
Other liabilities   255,135    197,644 
Total liabilities   10,034,177    6,178,301 
           
Equity:          
Arbor Realty Trust, Inc. stockholders' equity:          
Preferred stock, cumulative, redeemable, $0.01 par value: 100,000,000 shares authorized, shares issued and outstanding by period, respectively:          
Special voting preferred shares, 16,325,095 and 17,560,633 shares          
8.25% Series A, 0 and 1,551,500 shares          
7.75% Series B, 0 and 1,260,000 shares          
8.50% Series C, 0 and 900,000 shares          
6.375% Series D, 9,200,000 and 0 shares          
6.25% Series E, 5,750,000 and 0 shares   361,635    89,472 
Common stock, $0.01 par value: 500,000,000 shares authorized, 143,007,036 and 123,181,173 shares issued and outstanding, respectively   1,430    1,232 
Additional paid-in capital   1,635,134    1,317,109 
Retained earnings (accumulated deficit)   10,674    (63,442)
Total Arbor Realty Trust, Inc. stockholders’ equity   2,008,873    1,344,371 
           
Noncontrolling interest   126,534    138,314 
Total equity   2,135,407    1,482,685 
           
Total liabilities and equity  $12,169,584   $7,660,986 

 

 

 

 

Arbor Realty Trust Reports Third Quarter 2021 Results and Increases Quarterly Dividend to $0.36 per Share

 

October 29, 2021 Page 9

 

ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

 

Statement of Income Segment Information - (Unaudited)

(in thousands)

 

   Quarter Ended September 30, 2021 
   Structured
Business		   Agency
Business		   Other /
Eliminations (1)		   Consolidated 
Interest income  $114,710   $10,770   $-   $125,480 
Interest expense   50,823    4,737    -    55,560 
Net interest income   63,887    6,033    -    69,920 
                     
Other revenue:                    
Gain on sales, including fee-based services, net   -    16,334    -    16,334 
Mortgage servicing rights   -    32,453    -    32,453 
Servicing revenue   -    34,960    -    34,960 
Amortization of MSRs   -    (14,872)   -    (14,872)
Loss on derivative instruments, net   -    (1,492)   -    (1,492)
Other income, net   2,168    27    -    2,195 
Total other revenue   2,168    67,410    -    69,578 
                     
Other expenses:                    
Employee compensation and benefits   14,082    27,891    -    41,973 
Selling and administrative   5,718    6,039    -    11,757 
Property operating expenses   149    -    -    149 
Depreciation and amortization   634    1,173    -    1,807 
Provision for loss sharing (net of recoveries)   -    (3,272)   -    (3,272)
Provision for credit losses (net of recoveries)   (3,445)   (354)   -    (3,799)
Total other expenses   17,138    31,477    -    48,615 
                     
Income before income from equity affiliates and income taxes   48,917    41,966    -    90,883 
                     
Income from equity affiliates   5,086    -    -    5,086 
Provision for income taxes   (622)   (9,283)   -    (9,905)
                     
Net income   53,381    32,683    -    86,064 
                     
Preferred stock dividends   4,913    -    -    4,913 
Net income attributable to noncontrolling interest   -    -    8,347    8,347 
Net income attributable to common stockholders  $48,468   $32,683   $(8,347)  $72,804 

 

(1) Includes certain income or expenses not allocated to the two reportable segments. Amount reflects income attributable to the noncontrolling interest holders.

 

 

 

 

Arbor Realty Trust Reports Third Quarter 2021 Results and Increases Quarterly Dividend to $0.36 per Share

 

October 29, 2021 Page 10

 

ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

 

Balance Sheet Segment Information - (Unaudited)

(in thousands)

 

   September 30, 2021 
   Structured
Business		   Agency
Business		   Consolidated 
Assets:               
Cash and cash equivalents  $162,870   $217,860   $380,730 
Restricted cash   552,706    17,222    569,928 
Loans and investments, net   8,993,790    -    8,993,790 
Loans held-for-sale, net   -    1,274,234    1,274,234 
Capitalized mortgage servicing rights, net   -    417,283    417,283 
Securities held-to-maturity, net   -    112,735    112,735 
Investments in equity affiliates   91,846    -    91,846 
Goodwill and other intangible assets   12,500    89,433    101,933 
Other assets   136,653    90,452    227,105 
Total assets  $9,950,365   $2,219,219   $12,169,584 
                
Liabilities:               
Debt obligations  $8,515,801   $1,102,485   $9,618,286 
Allowance for loss-sharing obligations   -    62,828    62,828 
Other liabilities   225,088    127,975    353,063 
Total liabilities  $8,740,889   $1,293,288   $10,034,177 

 

 

 

 

Arbor Realty Trust Reports Third Quarter 2021 Results and Increases Quarterly Dividend to $0.36 per Share

 

October 29, 2021 Page 11

 

ARBOR REALTY TRUST, INC. AND SUBSIDIARIES

 

Reconciliation of Distributable Earnings to GAAP Net Income - (Unaudited)

($ in thousands—except share and per share data)

 

   Quarter Ended September 30,   Nine Months Ended September 30, 
   2021   2020   2021   2020 
Net income attributable to common stockholders  $72,804   $81,997   $211,409   $66,778 
Adjustments:                    
Net income attributable to noncontrolling interest   8,347    13,836    26,806    11,012 
Income from mortgage servicing rights   (32,453)   (42,357)   (95,688)   (96,708)
Deferred tax provision (benefit)   6,256    3,853    10,692    (5,172)
Amortization and write-offs of MSRs   23,757    15,456    62,088    48,739 
Depreciation and amortization   2,705    2,867    8,137    8,731 
Loss on extinguishment of debt   -    -    1,370    3,546 
Provision for credit losses, net   (9,867)   (11,137)   (18,210)   79,144 
Loss on derivative instruments, net   1,492    753    1,484    44,113 
Stock-based compensation   2,612    1,854    7,986    7,286 
Loss on redemption of preferred stock   -    -    3,479    - 
                     
Distributable earnings(1)  $75,653   $67,122   $219,553   $167,469 
                     
Diluted distributable earnings per share(1)  $0.47   $0.50   $1.44   $1.26 
                     
Diluted weighted average shares outstanding(1)   160,270,905    133,997,087    152,691,461    132,401,315 

 

(1) Amounts are attributable to common stockholders and OP Unit holders. The OP Units are redeemable for cash, or at the Company's option for shares of the Company's common stock on a one-for-one basis.

 

The Company is presenting distributable earnings because management believes it is an important supplemental measure of the Company's operating performance and is useful to investors, analysts and other parties in the evaluation of REITs and their ability to provide dividends to stockholders. Dividends are one of the principal reasons investors invest in REITs. To maintain REIT status, REITs are required to distribute at least 90% of their REIT-taxable income. The Company considers distributable earnings in determining its quarterly dividend and believes that, over time, distributable earnings is a useful indicator of the Company's dividends per share.

 

The Company defines distributable earnings as net income (loss) attributable to common stockholders computed in accordance with GAAP, adjusted for accounting items such as depreciation and amortization (adjusted for unconsolidated joint ventures), non-cash stock-based compensation expense, income from MSRs, amortization and write-offs of MSRs, gains/losses on derivative instruments primarily associated with Private Label loans not yet sold and securitized, the tax impact on cumulative gains/losses on derivative instruments associated with Private Label loans sold during the periods presented, changes in fair value of GSE-related derivatives that temporarily flow through earnings, deferred tax provision (benefit), CECL provisions for credit losses (adjusted for realized losses as described below) and amortization of the convertible senior notes conversion option. The Company also adds back one-time charges such as acquisition costs and one-time gains/losses on the early extinguishment of debt and redemption of preferred stock.

 

The Company reduces distributable earnings for realized losses in the period management determines that a loan is deemed nonrecoverable. Loans are deemed nonrecoverable upon the earlier of: (i) when the loan receivable is settled (i.e. when the loan is repaid, or in the case of foreclosure, when the underlying asset is sold); or (ii) when management determines that it is nearly certain that all amounts due will not be collected. The realized loss amount is equal to the difference between the cash received, or expected to be received, and the book value of the asset.

 

Distributable earnings is not intended to be an indication of the Company's cash flows from operating activities (determined in accordance with GAAP) or a measure of its liquidity, nor is it entirely indicative of funding the Company's cash needs, including its ability to make cash distributions. The Company's calculation of distributable earnings may be different from the calculations used by other companies and, therefore, comparability may be limited.