Arbor Realty Trust Declares Preferred Stock Dividends
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Insights
The declaration of dividends by Arbor Realty Trust, Inc. (ABR) on its preferred stock series is a strong signal of the company's current financial health and its ability to generate sufficient cash flow. Preferred stock dividends are typically viewed as a commitment that must be met before common stock dividends and their payment can often be seen as a barometer for a company's operating performance. In this case, the payment rates of $0.3984375 for Series D, $0.390625 for Series E and $0.390625 for Series F, which are consistent with the accrued dividends, suggest a stable payout that could be attractive to income-focused investors.
From a financial perspective, the ability to pay dividends may influence the company's stock price, as it reflects positively on its liquidity and earnings stability. For stakeholders, consistent dividend payments can provide a steady income stream, which is particularly appealing during volatile market conditions. However, it's crucial to analyze the payout ratio to ensure that the dividends are sustainable and not compromising the company's growth potential or ability to reinvest in its operations.
Dividend declarations, especially in the real estate investment trust (REIT) sector, can impact investor sentiment and the attractiveness of a company's stock. Arbor Realty Trust's announcement may be compared against industry benchmarks to evaluate its competitiveness. REITs are generally expected to distribute at least 90% of their taxable income to shareholders and thus, their dividend yields are often higher than those of other sectors. If Arbor Realty Trust's dividend yields are in line with or exceed industry averages, this could position the company favorably among its peers.
Furthermore, the timing of the dividend payments, just after the new year, could be strategically positioned to capture the attention of investors who may be re-evaluating their portfolios. For long-term investors, the cumulative aspect of these preferred shares ensures that even if dividends are not paid in a given period, they will be accrued and paid out later, adding a layer of security to the investment.
UNIONDALE, N.Y., Dec. 29, 2023 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE: ABR), today announced that its Board of Directors has declared cash dividends on the Company's Series D, Series E, and Series F cumulative redeemable preferred stock of
About Arbor Realty Trust, Inc.
Arbor Realty Trust, Inc. (NYSE: ABR) is a nationwide real estate investment trust and direct lender, providing loan origination and servicing for multifamily, single-family rental (SFR) portfolios, and other diverse commercial real estate assets. Headquartered in New York, Arbor manages a multibillion-dollar servicing portfolio, specializing in government-sponsored enterprise products. Arbor is a leading Fannie Mae DUS® lender and Freddie Mac Optigo® Seller/Servicer, and an approved FHA Multifamily Accelerated Processing (MAP) lender. Arbor’s product platform also includes bridge, CMBS, mezzanine and preferred equity loans. Rated by Standard and Poor’s and Fitch Ratings, Arbor is committed to building on its reputation for service, quality and customized solutions with an unparalleled dedication to providing our clients excellence over the entire life of a loan.
Safe Harbor Statement
Certain items in this press release may constitute forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Arbor can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from Arbor’s expectations include, but are not limited to, changes in economic conditions generally, and the real estate markets specifically, continued ability to source new investments, changes in interest rates and/or credit spreads, and other risks detailed in Arbor’s Annual Report on Form 10-K for the year ended December 31, 2022 and its other reports filed with the SEC. Such forward-looking statements speak only as of the date of this press release. Arbor expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Arbor’s expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.
Contact:
Arbor Realty Trust, Inc.
Paul Elenio, Chief Financial Officer
516-506-4422
pelenio@arbor.com
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