Dividend coverage has reached an unsustainable level with a 4.05x payout ratio relative to AFFO in 2026Q1, highlighting a critical dependency on external funding to maintain distributions.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 |
|---|
| Cash from Operations | 213.56M | 396.35M | 461.52M | 235.86M | 1.1B | 216.85M | 55.16M | -226.32M | -37.73M | 460.83M | -197.62M | 36.35M | 30.8M | 22.52M | 20.17M | -389.62K | 20.9M | 49.42M | 50.4M | 159.69M | 65.09M | 73.24M | 28.07M | 10.84M |
| Operating CF Growth % | -145.56% | -14.12% | 95.68% | -78.55% | 407.11% | 293.09% | 124.37% | -499.77% | -108.19% | 333.2% | -643.69% | 18.03% | 36.73% | 11.68% | 5275.8% | -101.86% | -57.7% | -1.96% | -68.44% | 145.32% | -11.12% | 160.87% | 159.04% | - |
| Operating CF / Revenue % | 17.68% | 32.73% | 73.55% | 32.8% | 168.12% | 32.78% | 12.56% | -60.87% | -10.85% | 168.88% | -115.27% | 41.12% | 32.97% | 26.47% | 42.33% | -1.01% | 169% | 127.93% | 52.74% | 99.25% | 75.88% | 86.86% | 71.76% | 127.51% |
| Net Income | 118.99M | 157.83M | 283.92M | 400.56M | 353.83M | 377.81M | 170.95M | 128.63M | 148.05M | 97.51M | 62.48M | 53.43M | 93.05M | 21.3M | 21.72M | -40.1M | 113.13M | -211.96M | -81.23M | 84.53M | 50.41M | 50.39M | 25.07M | 3.41M |
| Depreciation & Amortization | 62.16M | 23.21M | 9.55M | 72.84M | 68.61M | 65.83M | 7.64M | 7.51M | 55.58M | 54.59M | 26.73M | 5.44M | 7.37M | 7.25M | 5.9M | 5.95M | 570.15K | 755.7K | 751.86K | 1.59M | -219.82K | -165.91K | -1.43M | 0 |
| Stock-Based Compensation | 13.79M | 13.79M | 14.23M | 14.94M | 14.97M | 9.93M | 0 | 0 | 6.09M | 4.84M | 3.51M | 3.44M | 1.99M | 1.6M | 578.19K | 1.41M | 310.5K | 2.41M | 3.05B | 2.45B | 2.33B | 0 | 324.34M | 0 |
| Other Non-Cash Items | -17.04M | 186.15M | 234.99M | -170.79M | 734.57M | -172.01M | -130.36M | -354.13M | -227.22M | 310.48M | -278.64M | -17.6M | 18.86M | -3.13M | 459.29K | -246.28K | -97.83M | -48.89M | 161.65M | -248.05M | 21.42M | 18.42M | 8.46M | 1.46M |
| Working Capital Changes | 27.85M | 11.59M | -69.56M | -74.34M | -70.58M | -75.61M | 6.94M | -8.33M | -8.21M | 822K | -3.83M | 2.62M | -2.21M | -5.76M | 942.06K | -7.73M | 3.02M | 33.7M | -30.77M | 66.66M | -6.52M | 4.6M | -4.03M | 5.97M |
| Cash from Investing | -907.93M | -1.31B | 1.15B | 1.88B | -2.32B | -6.75B | -1.16B | -994.95M | -681.88M | -907.95M | -201.92M | 24.73M | 144.95M | -200.08M | -46.53M | -40.35M | 237.81M | 151.72M | 231.17M | -609.99M | -788.22M | -445.64M | -565.08M | -114.82M |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 367K | 1.2M | -68.36M | -37.85M | -17.2M | 8M | -22.24M | 3.74M | -2.28M | 2.32M | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -832.01M | 0 | 0 | -18.99M | -45.41M | -101.58M | -38.95M | -34M | -49.99M | -27.87M | -6.09M | -20.88M | -526.5K | -29.02M | -69.3M | -37.85M | -6.59M | -12.41M | -58.06B | -16.72M | 0 | 0 | -733.14M | -5.92M |
| Sale of Investments | 894.17M | 0 | 0 | 4.63M | 19.03M | 13.32M | 29.02M | 12.49M | 2.27M | 460K | 1.57M | 2.1M | 34.57M | 43.13M | 55.9M | 22.09B | 57.78M | 2.71M | 0 | 22.15M | 7.9M | 16M | 221.43M | 0 |
| Other Investing | -953.88M | -1.31B | 1.15B | 1.89B | -2.29B | -6.66B | -1.15B | -973.44M | -634.15M | -880.54M | -177.48M | 43.51M | 110.91M | -214.19M | -33.13M | 10.03M | -217.97K | -8.63M | 58.29B | -615.43M | -796.12M | -461.64M | -53.37M | -108.9M |
| Cash from Financing | 1.15B | 798.75M | -2.49B | -1.83B | 1.57B | 6.89B | 1.13B | 1.39B | 816.51M | 412.84M | 349.47M | 77.21M | -185.72M | 208.76M | 320.04K | -5.15M | -222.22M | -137.34M | -302.96M | 464.77M | 711.46M | 385.43M | 537.29M | 110.1M |
| Dividends Paid | -293.85M | -319.95M | -394.84M | -380.64M | -321.74M | -227.06M | -149.37M | -115.42M | -75.65M | -50.18M | -39.37M | -37.06M | -33.14M | -25.38M | -8.04M | -295.89K | -170.75K | -236.01K | -47.38M | -46.6M | -44.13M | -46.21M | -19.49M | -4.1M |
| Common Dividends | -293.85M | -319.95M | -394.84M | -380.64M | -321.74M | -227.06M | 0 | 0 | -68.08M | -42.61M | -31.8M | -29.5M | -26.03M | -21.33M | -8.03M | 0 | 0 | -236.01K | -47.38M | -46.6M | -44.13M | -46.21M | -19.49M | -4.1M |
| Debt Issuance (Net) | 4M | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | -1000K | 1000K | -1000K | 1000K | -1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K |
| Share Repurchases | -32.77M | -3.61M | -11.41M | -37.43M | -546K | -56.01M | -21.53M | -11.57M | -10.07M | 0 | 0 | 0 | 0 | 0 | -684.76K | -5.75M | 0 | 0 | 0 | -73.65B | -7.02M | 0 | 0 | 0 |
| Other Financing | -220.2M | -3.4M | -25.8M | -8.36M | -58.55M | -79.39M | -40.23M | -28.7M | 337.76M | -124.97M | 20.89M | 174.26M | -152.73M | 19.82M | 10.32M | -46.36M | 4.3M | 65.2M | 9.76M | -26.54M | -28.12M | -13.16M | -13.37M | 0 |
| Net Change in Cash | 451.25M | -109.96M | -877.03M | 289.04M | 356.89M | 354.27M | 26.44M | 169.89M | 96.9M | -34.27M | -50.06M | 138.29M | -9.97M | 31.2M | -26.05M | -45.89M | 36.5M | 63.79M | -21.39M | 14.46M | -11.67M | 13.03M | 286.18K | 6.12M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 550.22M | 660.18M | 1.54B | 1.25B | 891.27M | 537M | 510.56M | 340.67M | 243.77M | 138.65M | 188.71M | 50.42M | 60.39M | 29.19M | 55.24M | 101.12M | 64.62M | 832.04K | 22.22M | 7.76M | 19.43M | 6.4M | 6.12M | 0 |
| Cash at End | 800.65M | 550.22M | 660.18M | 1.54B | 1.25B | 891.27M | 537M | 510.56M | 340.67M | 104.37M | 138.65M | 188.71M | 50.42M | 60.39M | 29.19M | 55.24M | 101.12M | 64.62M | 832.04K | 22.22M | 7.76M | 19.43M | 6.4M | 6.12M |
| Free Cash Flow | 197.35M | 396.35M | 461.52M | 235.86M | 1.1B | 216.85M | 55.16M | -226.32M | -38.1M | 459.63M | -149.18M | 74.2M | 47.99M | 14.52M | 42.4M | -22.11B | 210.03M | 217.16M | 50.4M | 159.69M | 65.09M | 73.24M | 28.07M | 10.84M |
| FCF Growth % | -43.95% | -14.12% | 95.68% | -78.55% | 407.11% | 293.09% | 124.37% | -494% | -108.29% | 408.12% | -301.04% | 54.61% | 230.57% | -65.76% | 100.19% | -10627.49% | -3.28% | 330.84% | -68.44% | 145.32% | -11.12% | 160.87% | 159.04% | - |
| FCF / Revenue % | 16.34% | 32.73% | 73.55% | 32.8% | 168.12% | 32.78% | 12.56% | -60.87% | -10.96% | 168.44% | -87.02% | 83.94% | 51.38% | 17.06% | 89.01% | -57236.06% | 1698.07% | 562.18% | 52.74% | 99.25% | 75.88% | 86.86% | 71.76% | 127.51% |
Dividend coverage sustainability concerns
According to the most recent quarterly data, ABR's dividend payout ratio relative to AFFO reached 4.05x in 2026Q1, a significant deterioration from the 0.82x coverage observed in 2023Q4, suggesting that current cash distributions are increasingly disconnected from the firm's actual recurring cash-generating capacity.
The widening gap between dividend payments and AFFO indicates that the company is likely relying on capital recycling or external financing to maintain its distribution policy. Investors should monitor whether this payout trajectory necessitates a dividend reset, as the current coverage ratio appears unsustainable under existing operational constraints.
Based on reported financial statements, the relationship between FFO and GAAP operating cash flow has become increasingly volatile, with FFO/NI ratios swinging from 3.81 in 2024Q1 to -0.75 in 2026Q1, highlighting the significant impact of non-cash adjustments on the firm's reported earnings quality.
The negative conversion of GAAP operating cash flow in recent periods suggests that headline FFO figures may be masking underlying cash burn within the lending platform. This divergence warrants further investigation into whether the firm's reliance on non-cash MSR valuations is effectively obscuring a decline in core liquidity.
As indicated by the historical data, the substantial variance between Net Income and FFO suggests that standard accounting metrics fail to capture the true cash-based performance of the mortgage platform, particularly as CECL reserves and MSR mark-to-market adjustments create significant noise in the bottom line.
The volatility in Net Income relative to FFO implies that investors should prioritize AFFO as the primary gauge of performance, though the lack of consistent AFFO reporting in recent quarters complicates this analysis. The reliance on non-cash accounting entries appears to be a primary driver of the disconnect between reported profitability and actual cash availability.
Analysis of the cash flow statement reveals that the firm's inability to cover dividends through AFFO, as evidenced by the 4.05x payout ratio in 2026Q1, suggests a heightened dependency on external capital markets to sustain both operations and shareholder distributions in the current environment.
The persistent shortfall in free cash flow relative to dividend obligations may indicate that the company is forced to utilize ATM programs or debt issuance to bridge the gap. This reliance on external funding sources creates a feedback loop where the firm must grow its portfolio aggressively to justify the capital raises required to maintain its dividend.
Quick answers to the most common questions about buying ABR stock.
Arbor Realty Trust, Inc. (ABR) generated $396.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Arbor Realty Trust, Inc. (ABR) generated $396.3M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Arbor Realty Trust, Inc. (ABR) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Arbor Realty Trust, Inc. (ABR) returned $319.9M to shareholders via cash dividends and spent $3.6M on share repurchases. This shows the company's commitment to returning capital to its equity investors.