Despite narrowing its fourth-quarter loss, shares of Arbor Realty Trust (ABR) slid more than 7% on Friday as traders eyed its worse-than-expected performance.

The provider of mezzanine loans, which are subordinate to a conventional first mortgage loan and senior to the borrower’s equity in a transaction, posted a net loss of $41.1 million, or $1.62 a share, compared with a loss of $133.7 million, or $5.27 a share, in the same quarter last year.

Earnings were worse than predicted on average by analysts polled by Thomson Reuters of a loss of $1.35 a share.

During the quarter, the Uniondale, N.Y.-based company originated two bridge loans totaling $15.7 million, and purchased one commercial mortgage-backed security for $2.1 million.

Also during the period, Arbor Realty booked $35.2 million in loan loss reserves related to nine loans with a carrying value of $261.5 million.

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