Arbor Realty Trust (NYSE:ABR) is a real estate investment trust incorporated in 2003. Founded by Ivan Kaufman who now serves as Chairman and CEO, the company is headquartered in Uniondale, New York, and invests in a diversified portfolio of structured finance assets in the real estate market.
The specific markets of interest include the multifamily, single-family rental, and commercial real estate markets in the United States. The company manages a portfolio of real estate properties that is worth more than $42 billion and originates more than $16 billion in loans annually. Arbor Realty Trust is recognized as a Top Lender by Freddie Mac and Fannie Mae as well as holding numerous other top rankings from other rating agencies.
As a real estate investment trust, the company can be expected to pay out 90% or more of its distributable earnings which often results in a dividend yield near 10%. The downside is that income taxes are passed through to the investor which needs to be taken into account with this investment.
The company prides itself on being more than just a lender. The company’s diverse offerings and personalized care ensure the best loan solution for each individual need. Its goal is to help clients achieve their goals and to do so by building long-term relationships that mature with age. One of the many features that helps ensure this is 100% in-house loan servicing. This means Arbor isn’t selling its loans to third parties and dedicated specialists are there to help with all stages of the loan life-cycle.
Arbor Realty Trust operates in two segments, Structured Business and Agency Business primarily investing in bridge and mezzanine loans as well as real estate-related joint ventures, real estate-related notes, and various mortgage-related securities. The company also offers financing products to organizations and small businesses that wish to buy residential, commercial, or industrial properties. The company also provides financing for multi-family units through a network of lending partners.
Arbor Realty Trust also offers an array of Green Loans intended to aid with the purchase, upgrade, or retrofit of energy or water-saving features. The loans are backed by Freddie Mac and Fannie Mae as well which means they come with the lowest rates available. Arbor Realty Trust also offers market-leading research on the rental housing and multi-family residential market.
