Arbor Realty Trust, Inc. Announces Pricing of Public Offering of Additional Shares of 6.25% Series F Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock

Rhea-AI Summary

Arbor Realty Trust, Inc. (NYSE:ABR) has priced a public offering of 3,100,000 shares of its 6.25% Series F Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, generating gross proceeds of approximately $75 million. The offering, which includes a 30-day option for underwriters to purchase an additional 465,000 shares, is expected to close on February 7, 2022. Net proceeds will be used for business investments and general corporate purposes. The Series F Preferred Stock will be traded under the symbol 'ABR PrF' on the NYSE.

Positive

• Generated gross proceeds of approximately $75 million from the offering.
• Intended use of funds for investments and general corporate purposes may support future growth.

Negative

• Potential dilution of existing shares due to the issuance of additional preferred stock.

UNIONDALE, N.Y., Jan. 31, 2022 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (the “Company”) (NYSE:ABR) announced today that it has priced the public offering of 3,100,000 additional shares of its 6.25% Series F Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (the “Series F Preferred Stock”), liquidation preference $25.00 per share, for gross proceeds of $75,020,000, before deducting underwriting discounts and estimated offering expenses. The Company has granted the underwriters a 30-day option to purchase up to an additional 465,000 shares of the Series F Preferred Stock to cover over-allotments, if any. The additional shares of Series F Preferred Stock constitute an additional issuance of shares of Series F Preferred Stock, with 8,050,000 shares of Series F Preferred Stock previously issued (the “Outstanding Series F Preferred Stock”). The Series F Preferred Stock will be treated as a single series with and have the same terms as the Outstanding Series F Preferred Stock. The Outstanding Series F Preferred Stock is, and the Series F Preferred Stock sold in the offering will be, listed on the NYSE under the symbol “ABR PrF.” The offering is expected to close on February 7, 2022, subject to customary closing conditions.

The Company intends to use the net proceeds from the offering to make investments relating to its business and for general corporate purposes.

Raymond James & Associates, Inc. is acting as sole book-running manager for the offering.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities nor will there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

The offering is being made pursuant to the Company’s existing effective shelf registration statement, previously filed with the Securities and Exchange Commission. The offering of these securities is being made only by means of a prospectus and related prospectus supplement. When available, copies of the prospectus and accompanying final prospectus supplement relating to these securities may be obtained by contacting Raymond James & Associates, Inc., Attention: Syndicate, 880 Carillon Parkway St. Petersburg, FL 33716, by telephone at (800) 248-8863, or by email at prospectus@raymondjames.com.

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, 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.

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, including, but not limited to, statements relating to the offering and the anticipated use of the net proceeds from the offering. 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. The Company can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company’s expectations include, but are not limited to, risks and uncertainties related to the completion of the offering on the anticipated terms or at all, market conditions, the satisfaction of customary closing conditions related to the offering, changes in economic conditions generally, and the real estate markets specifically, in particular, due to the uncertainties created by the COVID-19 pandemic, continued ability to source new investments, changes in interest rates and/or credit spreads, and other risks detailed in the prospectus supplement relating to the offering and the documents incorporated by reference therein, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 and its other reports filed with the Securities and Exchange Commission. Such forward-looking statements speak only as of the date of this press release. The Company 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 the Company’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 

FAQ

What are the details of Arbor Realty Trust's share offering?

Arbor Realty Trust is offering 3,100,000 shares of its 6.25% Series F Preferred Stock, expected to generate about $75 million. The offering will close on February 7, 2022.

How will Arbor Realty Trust use the proceeds from the share offering?

The proceeds will be used for investments related to the business and for general corporate purposes.

What is the potential impact of the share offering on existing shareholders of ABR?

The share offering may dilute the value of existing shares as new shares are issued.