ABR - Arbor Realty Trust Is The Only mREIT That I Own
2024-03-21 09:11:25 ET
Summary
- Arbor Realty Trust is a mortgage REIT with a solid dividend yield of almost 14% and has seen significant growth in the last 10 years.
- ABR has been able to consistently hike its dividends over the years while most other mREITs have had to cut theirs.
- ABR differentiates itself by focusing on more stable sectors of real estate and diversifying its financial products, allowing for better risk management.
- This is more of a hybrid between an mREIT and Business Development than a pure mREIT which may explain its outperformance.
Arbor Realty Trust ( ABR ) is a mortgage REIT company with a highly diversified business with a solid dividend yield of almost 14%. If you've been following my articles you know that I am usually not a big fan of mortgage REIT companies for a variety of reasons such as high leverage and high risk-taking and I see most of them as wealth destroyers but this could be one of those unique MREITs that actually create value for investors. You can clearly see it in the chart below where ABR is up 385% in the last 10 years (in total returns including dividends) whereas mortgage REITs in general represented by VanEck Mortgage REIT ETF ( MORT ) resulted in mostly flat returns (about 1% annualized) during the same period despite offering double digit dividends....
Arbor Realty Trust Is The Only mREIT That I Own