ABR - Arbor Realty Faces More Pain Ahead But Its Series F Preferred Is Attractive
2024-02-02 08:15:00 ET
Summary
- Arbor Realty Trust is facing significant headwinds in the multifamily real estate sector due to floating rate loans and eroding fundamentals.
- The common stock dividend is not in immediate danger, but caution is recommended.
- The Arbor Realty 6.25% Series F Preferred stock offers greater dividend safety, less downside, and potential upside of 35% to par.
Arbor Realty Trust ( ABR ) is a mortgage real estate investment trust ("mREIT") that specializes in bridge loans primarily for Class B multifamily properties and secondarily for single-family rental investments. The mREIT not only originates loans that it holds on its balance sheet but also provides loan servicing for third parties, giving it multiple streams of income.
ABR is an industry leader in the residential lending space and a best-in-class operator with a best-in-class management team. I own the common stock and have no intention of selling....
Arbor Realty Faces More Pain Ahead, But Its Series F Preferred Is Attractive