ABR - Arbor Realty Trust: Surviving Q1 Credit Stress

2024-05-05 03:38:12 ET

Summary

• Arbor Realty Trust has faced challenges amid higher interest rates, which complicate the necessary transition from bridge loans to long-term mortgages.
• While Q1 was profitable and produced earnings to cover the dividend, the quality of Arbor's loan portfolio has decreased, with more loans receiving lower ratings.
• Q1 2023 earnings call revealed that Arbor has successfully modified loans and repurchased common shares, but they also extended their timeframe for difficulty well beyond Q2.

Arbor Realty Trust ( ABR ) was one of the first securities I covered on Seeking Alpha. I initially rated it a Buy but later moderated to Hold in February at the release of FY 2023 results....

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