Arbor Realty Trust

ABR

Market cap $1.74B

During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a high dividend payout.

Arbor Realty Trust preferred stocks D & E offer attractive 9% yields and deep discounts, warranting a Buy rating over Series F. ABR faces distress from underperforming 2021-2022 multifamily loans, but preferred dividends remain well-covered by GAAP earnings and capital structure. Series D & E present no additional risk compared to F, with cumulative dividends and strong asset backing mitigating bankruptcy risk.

Zacks.com users have recently been watching Arbor Realty Trust (ABR) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.

I invest most of my capital in REITs. Even then, I'm bearish on a lot of them. This is a sector in which you need to be very selective to succeed.

Over 200 U.S. REITs and homebuilders have reported third-quarter earnings results over the past five weeks, providing critical information on the state of the commercial and residential real estate industry. Overall, REIT earnings results were marginally better than consensus expectations despite a handful of high-profile flops that overshadowed some impressive individual results across a balanced mix of sectors. Two-thirds of the sector (67 REITs) raised their full-year FFO outlook—above the historical average of 65%. Notable winners included Industrial, Senior Housing, Data Center, Retail, and Billboard REITs.

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Arbor Realty Trust (ABR) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.

Arbor Realty Trust is paying out a 12% dividend yield, as coverage concerns rise amidst rent declines in key Sun Belt markets like Texas and Florida. ABR's distributable earnings covered its dividend by 117% last quarter, despite a 57% year-over-year drop in net income and rising credit loss provisions. Preferred shares ABR.PR.D and ABR.PR.E trade at steep discounts, and now offer current yields above 9% and a wide spread over Treasuries, reflecting heightened risk perceptions.

Arbor Realty Trust remains a Hold as Q3 earnings highlight ongoing distress in its multifamily loan portfolio, triggering a 12% share price drop. ABR's balance sheet is pressured by $4.6B in distressed 2021-2022 vintage loans nearing the end of extensions, while single-family loans show relative strength. Despite a 30% discount to book value, uncertainty around legacy asset resolutions and fluctuating earnings warrant caution before considering a Buy rating.

Arbor Realty Trust, Inc. ( ABR ) Q3 2025 Earnings Call October 31, 2025 10:00 AM EDT Company Participants Paul Elenio - Executive VP & CFO Ivan Kaufman - Chairman, President & CEO Conference Call Participants Steven Delaney - Citizens JMP Securities, LLC, Research Division Jade Rahmani - Keefe, Bruyette, & Woods, Inc., Research Division Richard Shane - JPMorgan Chase & Co, Research Division Crispin Love - Piper Sandler & Co., Research Division Leon Cooperman - Omega Advisors, Inc. Presentation Operator Good morning, ladies and gentlemen, and welcome to the Third Quarter 2025 Arbor Realty Trust Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.