ABR - Arbor Realty: Oversold By Bears 12.3% Dividend Yield I'm Buying

2024-02-18 21:24:10 ET

Summary

• Arbor Realty recorded dual beats for its fiscal 2023 fourth-quarter earnings and maintained its quarterly dividend at $0.43 per share.
• The company is one of the most shorted stock tickers, but continued earnings beats and positive inflation movements may spark near-term outperformance.
• ABR's book value per share saw year-over-year growth of 2% and has grown by 30% over the last 3 years. The mREIT continues to fully cover its quarterly dividend payouts.

Arbor Realty's ( ABR ) dual beats on its fiscal 2023 fourth-quarter earnings surprised the market to the upside. They reignited an almost predictable seesaw volatility that has come to define the trading of the common shares of the multifamily lender over the last 1 year. This seesaw volatility reflects an abnormal short interest of 63,900,000 shares , almost 30% of ABR's diluted weighted average shares outstanding. Despite its strong historical earnings outperformance, the Fed's fight with inflation has created the conditions for ABR to become one of the most shorted REITs. The short interest has broadly remained constant since I last covered the mREIT....

For further details see: