For the quarter ended March 31, locally based Arbor reported net income for the quarter of $9.7 million, or $0.58 per basic and diluted common share, compared to net income for the quarter ended March 31, 2004 of $3.1 million, or $0.38 per basic and diluted common share. During the quarter, Arbor originated eleven loans and investments totaling $244 million and total revenues were $23.5 million, an increase of 187% from the first quarter of 2004. Of the new loans and investments, six were mezzanine loans totaling $128 million, two were bridge loans totaling $60 million, two were junior participating interests totaling $50 million and one was a preferred equity investment of $6 million.

Last year's IPO provided a "solid foundation for future performance," Kaufman said. "Common equity is our most precious asset." He believes that despite aggressive competition, Arbor can continue at its current level in its national portfolio and still have adequate growth. "Our philosophy has been that we won't make a loan unless we're willing to own the asset." The pipeline is good and filled with repeat buyers, he added.

Diversification is one key for Arbor, particularly in its financing sources. Kaufman pointed out the firm has made progress in "diversifying and stabilizing our financing sources. With the addition of a $305 million CDO debt facility, a new $50-million secured financing facility and the issuance of $27 million of long-term junior subordinated notes, we believe we are well positioned to finance future growth of the portfolio."