Arbor Realty Trust, Inc. (NYSE: ABR), a real estate investment trust focused on the business of investing in real estate related bridge and mezzanine loans, preferred and direct equity investments, mortgage-related securities and other real estate related assets, announced today that the tax allocations of its 2005 dividend distributions for the Company's common shares of beneficial interest represent 70.4404% ordinary income, and 29.5596% return of capital. The 2005 distributions paid with respect to Arbor Realty Trust common stock (CUSIP #038923108 and traded under ticker symbol ABR) are as follows:

Record Payable Total Taxable Return

Date Date Distribution Ordinary of

per share Dividend Capital

1/31/2005 2/15/2005 $.47 $.33 $.14

4/30/2005 5/15/2005 $.55 $.39 $.16

8/15/2005 8/31/2005 $.57 $.40 $.17

10/27/2005 11/11/2005 $.65 $.46 $.19

$2.24 $1.58 $.66

Note: Of the taxable ordinary dividend amount, 0.6492% represents "qualified dividend income" and will be eligible for reduced dividend rates. Shareholders are encouraged to consult with their tax advisors as to their specific tax treatment of Arbor Realty Trust Inc. dividend distributions.

About Arbor Realty Trust, Inc.

Arbor Realty Trust, Inc. is a real estate investment trust which invests in a diversified portfolio of multi-family and commercial real estate related bridge and mezzanine loans, preferred equity investments, mortgage related securities and other real estate related assets. Arbor commenced operations in July 2003 and conducts substantially all of its operations through its operating partnership, Arbor Realty Limited Partnership and its subsidiaries. Arbor is externally managed and advised by Arbor Commercial Mortgage, LLC, a national commercial real estate finance company operating through 15 offices in the US that specializes in debt and equity financing for multi-family and commercial real estate.

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, continued ability to source new investments, changes in interest rates and/or credit spreads, changes in the real estate markets, and other risks detailed in the Arbor's Annual Report on Form 10-K for the year ended December 31, 2004 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.

Contacts:

Arbor Realty Trust, Inc.

Paul Elenio, Chief Financial Officer

516-832-7422

paul.elenio@thearbornet.com

Investors:

Stephanie Carrington/ Denise Roche

The Ruth Group

646-536-7017 / 7008

scarrington@theruthgroup.com

droche@theruthgroup.com

Media: