Stock of the Day

February 28, 2024

Arbor Realty Trust (ABR)

$2.80
+$0.19 (+7.1%)
Market Cap: $486.92M

About Arbor Realty Trust

Arbor Realty Trust, Inc. invests in a diversified portfolio of structured finance assets in the multifamily, single-family rental, and commercial real estate markets in the United States. The company operates through Structured Business and Agency Business segments. It primarily invests in bridge and mezzanine loans, including junior participating interests in first mortgages, and preferred and direct equity, as well as real estate-related joint ventures, real estate-related notes, and various mortgage-related securities. In addition, the company offers bridge financing products to borrowers who seek short-term capital to be used in an acquisition of property; financing by making preferred equity investments in entities that directly or indirectly own real property; mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower's equity in a transaction; junior participation financing in the form of a junior participating interest in the senior debt; and financing products to borrowers who are looking to acquire conventional, workforce, and affordable single-family housing. Further, it underwrites, originates, sells, and services multifamily mortgage loans through conduit/commercial mortgage-backed securities programs. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Arbor Realty Trust, Inc. was incorporated in 2003 and is headquartered in Uniondale, New York.

Today's Trend

Arbor Realty Trust (NYSE: ABR) shares moved lower as investors reacted to a ratings downgrade and concerns about the interest-rate outlook.

  • Citizens downgraded Arbor Realty Trust from “Market Outperform” to “Market Perform,” indicating that the firm now expects ABR to perform roughly in line with the market or its sector. The change reflects more cautious expectations for the company’s near-term returns. Citizens cuts Arbor Realty Trust rating on interest-rate outlook
  • The downgrade was tied to the possibility of further interest-rate increases. Higher rates could raise Arbor Realty Trust’s funding costs, pressure loan demand and property valuations, and reduce the attractiveness of its real estate finance investments. Arbor Realty Trust trades lower after Citizens downgrade
  • ABR underperformed the broader market during the latest session, extending recent weakness. The stock remains below its 50-day and 200-day moving averages and close to its 12-month low, suggesting continued bearish technical sentiment. Arbor Realty Trust dips more than broader market
  • A separate report noted that Arbor Realty Trust had gained in the prior session despite a weaker overall market, but it identified no new fundamental catalyst. The recent reversal indicates that rate concerns are currently outweighing that short-term strength. Why Arbor Realty Trust stock is falling today
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