Arbor Realty Trust: Dividend Yield Spikes As Market Prepares For Another Cut

2026-03-09 16:57:12 ET

Arbor Realty Trust ( ABR ) has dipped by 30% over the last year, expanding its dividend yield to double digits and opening up a notable discount to its book value. The internally managed mortgage REIT mainly focuses on investing in multifamily and single-family rental ("CRE") credit. ABR also has an Agency Business, which did $1.6 billion in originations and $1.5 billion in loan sales during its fiscal 2025 fourth quarter. The dip over the last year has primarily been driven by falling dividend coverage from what has been a sustained drop in distributable EPS. The mREIT last declared a quarterly cash dividend of $0.30 per share , kept unchanged from its prior distribution, and $1.20 per share annualized for a 13.80% dividend yield. This is among the highest yields in ABR's history, following a 30% cutback in May 2025. The risk here is a follow-up cut, with distributable EPS that came in at $0.22 , providing just 73% coverage for the fourth quarter dividend. Distributable EPS fell sequentially from $0.35 in the third quarter, with a more dramatic 45% fall from $0.40 in its year-ago comp....

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