ABR - Arbor Realty Trust: Asset Quality Concerns Persist With This Near 13% Yielder
2024-06-12 14:21:44 ET
Summary
- Arbor Realty Trust is a unique mREIT with expanding book value and a dividend yield of nearly 13%.
- NPLs and delinquencies have increased, but management's proactive approach and successful loan modifications offer some positive signs.
- ABR's dividend remains covered by distributable earnings, but challenges in asset quality may impact earnings in the near term.
Arbor Realty Trust ( ABR ) is a unique mortgage real estate investment trust (mREIT) that has managed to continue expanding its book value while much of the broader mREIT sector has faced continued declines in net asset value per share. The mREIT also offers a highly attractive dividend yield of just under 13%. However, at the time of my previous article on ABR, I observed that the mREIT was likely to continue witnessing an uptick in non-performing loans although management seems to have adequately planned for this eventuality and indeed expected it at the current stage of the credit cycle....
Arbor Realty Trust: Asset Quality Concerns Persist With This Near 13% Yielder