Arbor Realty Trust (ABR-PD) delivered a solid Q3 2024, underscored by a strong gross margin and robust EBITDA, but net profitability was pressured by elevated interest expense in a high-rate environment. Revenue for the quarter totaled $158.8 million, down 10.1% year over year and up 11.3% quarter over quarter, while net income reached $68.5 million (EPS $0.31), down 22.4% versus the prior year but up 18.7% sequentially. EBITDA stood at $295.7 million, producing an EBITDA margin of approximately 1.86x on revenue, reflecting the company’s highly leveraged mortgage finance operations and income from structured assets. Management’s focus remains on credit-quality preservation and portfolio diversification across multifamily, single-family rental, and commercial real estate markets, supported by a diversified product suite (bridge and mezzanine loans, junior participation interests, and agency-based securitization programs). The balance sheet shows substantial leverage (total debt of about $10.414 billion with net debt around $6.941 billion) but ample liquidity (cash and cash equivalents of $687.5 million; cash at period end of $867.4 million) and positive operating cash flow of ~$85 million. Near-term profitability is likely to continue hingeing on net interest income, hedging effectiveness, and portfolio mix as interest rates evolve. The quarter’s results imply an ability to generate meaningful cash flow to service debt and support distributions, albeit with sensitivity to interest rate trajectories and credit-cost headwinds.