Education
About Us
Working with TipRanks
Follow Us
Arbor Realty Trust (ABR)
NYSE:ABR
Top Page
Arbor Realty
(NYSE:ABR)
68Neutral
Positive Factors
Financial Performance
Nonperforming loans appear manageable given the strength of Arbor’s balance sheet.
Return on Investment
Investors could realize a potential total return of approximately 36%, including an 11.0% cash yield, if price target and dividend projections are achieved.
Negative Factors
Earnings Outlook
The increase in interest rates and the higher-for-longer rate outlook has created headwinds for ABR’s business, which will be a drag on earnings over the next 12-24 months.
Interest Rates Impact
Agency lending volumes are pressured by higher interest rates.
Arbor Realty (ABR) vs. S&P 500 (SPY)
Market Cap
$1.98B
Dividend Yield16.6%
Average Volume (3M)3.75M
Price to Earnings (P/E)10.3
Beta (1Y)0.67
Revenue Growth-15.99%
EPS Growth-36.34%
CountryUS
Employees659
SectorReal Estate
Sector Strength81
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.28
Shares Outstanding192,160,230
10 Day Avg. Volume3,898,410
30 Day Avg. Volume3,754,025
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap6.43
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit20.37
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$11.75Price Target Upside13.42% Upside
Rating ConsensusHold
Number of Analyst Covering4
Arbor Realty Business Overview & Revenue Model
Company DescriptionArbor 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 in two segments, Structured Business and Agency Business. 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. 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.
How the Company Makes MoneyArbor Realty Trust primarily makes money through interest income generated from its loan portfolio, which includes a variety of structured finance products such as bridge loans and mezzanine financing. Additionally, the company earns revenue through servicing and managing loans, which provides a steady stream of fee income. Arbor also profits from equity investments and gains from the sale of loans. The company's strong relationships with government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac, as well as its partnerships with various banks and financial institutions, further support its revenue generation by expanding its lending capacity and market reach.
Arbor Realty Financial Statement Overview
Summary
Arbor Realty shows strong profitability with high margins and effective equity utilization. Improvements in leverage and cash flow stability are noted, but historical revenue fluctuations and previous high leverage present potential risks.Income Statement
The income statement reveals a strong gross profit margin of 90.64% and a solid net profit margin of 46.20% for the TTM, indicating high profitability. Revenue growth has been inconsistent, with fluctuations observed in recent years, but the overall trend shows resilience. The EBIT and EBITDA margins are also robust, supporting the company's operational efficiency.75
Positive
Balance Sheet
The balance sheet reflects a high leverage with a debt-to-equity ratio of 0.10 for the TTM, which is a significant reduction from previous years, indicating better debt management. However, the return on equity (ROE) is strong at 7.54% for the TTM, demonstrating effective use of equity. The equity ratio has improved slightly, suggesting a stable financial position despite high leverage.65
Positive
Cash Flow
Cash flow analysis shows a positive free cash flow and a favorable operating cash flow to net income ratio of 1.60 for the TTM, indicating strong cash generation relative to income. However, the free cash flow growth rate is not calculable due to prior fluctuations, highlighting potential volatility in cash flow stability.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 625.94M | 721.01M | 619.06M | 590.92M | 434.13M | Gross Profit |
| 625.94M | 721.01M | 619.06M | 590.92M | 434.13M | EBIT |
| 297.40M | 427.90M | 371.31M | 424.09M | 236.55M | EBITDA |
| 375.37M | 500.74M | 439.92M | 489.92M | 293.41M | Net Income Common Stockholders |
| 264.64M | 371.43M | 325.78M | 339.30M | 170.95M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 503.80M | 935.52M | 14.79M | 404.58M | 339.53M | Total Assets |
| 13.49B | 15.74B | 17.04B | 15.07B | 7.66B | Total Debt |
| 7.16B | 9.40B | 13.50B | 12.06B | 5.82B | Net Debt |
| 6.66B | 8.47B | 12.97B | 11.65B | 5.49B | Total Liabilities |
| 10.34B | 12.48B | 13.97B | 12.52B | 6.18B | Stockholders Equity |
| 3.02B | 3.12B | 2.94B | 2.42B | 1.34B |
| Cash Flow | Free Cash Flow | |||
| 461.52M | 235.86M | 1.10B | 216.85M | 55.16M | Operating Cash Flow |
| 461.52M | 235.86M | 1.10B | 216.85M | 55.16M | Investing Cash Flow |
| 1.15B | 1.88B | -2.32B | -6.75B | -1.16B | Financing Cash Flow |
| -2.49B | -1.83B | 1.57B | 6.89B | 1.13B |
Arbor Realty Technical Analysis
Negative
10.36
Price Trends
11.45
Negative
12.25
Negative
12.87
Negative
Market Momentum
-0.29
Positive
37.85
Neutral
25.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABR, the sentiment is Negative. The current price of 10.36 is below the 20-day moving average (MA) of 10.89, below the 50-day MA of 11.45, and below the 200-day MA of 12.87, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 37.85 is Neutral, neither overbought nor oversold. The STOCH value of 25.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ABR.
Arbor Realty Risk Analysis
Arbor Realty disclosed 71 risk factors in its most recent earnings report. Arbor Realty reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Arbor Realty Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.33B | 12.65 | 6.80% | 8.83% | -12.51% | 7.76% | |
68 Neutral | $1.98B | 10.33 | 7.77% | 16.60% | -15.99% | -36.34% | |
66 Neutral | $1.30B | ― | 0.41% | 11.47% | -14.98% | 95.53% | |
63 Neutral | $3.21B | ― | -2.06% | 10.71% | -20.46% | -1436.71% | |
60 Neutral | $2.81B | 11.04 | 0.20% | 8508.34% | 6.12% | -16.66% | |
51 Neutral | $1.10B | 13.78 | 6.36% | 12.56% | -4.42% | -43.99% | |
48 Neutral | $1.32B | 8.01 | -0.11% | 17.09% | 142.18% | 50.74% |
* Real Estate Sector Average
Performance Comparison
ABR
Arbor Realty
10.36
-1.68
-13.95%
ARI
Apollo Real Estate
9.59
0.63
7.03%
ARR
ARMOUR Residential REIT
16.85
0.34
2.06%
BXMT
Blackstone Mortgage
18.96
2.65
16.25%
PMT
PennyMac Mortgage
12.74
-0.28
-2.15%
LADR
Ladder Capital
10.42
0.08
0.77%
Arbor Realty Earnings Call Summary
Earnings Call Date:May 02, 2025
(Q1-2025)
| % Change Since: -6.50%|
Next Earnings Date:Jul 25, 2025
Earnings Call Sentiment Neutral
The earnings call detailed significant achievements in liquidity enhancement and market leadership, particularly in the CLO and single-family rental spaces. However, challenges include increased delinquencies, a volatile interest rate environment, and non-cash income concerns, which temper the outlook for 2025.Q1-2025 Updates
Positive Updates
Innovative $1.1 Billion Repurchase Facility
Entered into a $1.1 billion repurchase facility with JPMorgan, enhancing liquidity by approximately $80 million and providing a two-year replenishment period.
Strong CLO Securitization Market Activity
Demonstrated leadership in the CLO market with strong demand and expectations for a robust market going forward, contributing to future earnings growth.
Single-Family Rental Business Growth
Closed approximately $200 million in new business in the first quarter, with a strong pipeline, contributing to diversified income streams and future earnings.
Construction Lending Progress
Closed $92 million in the first quarter and $58 million in April, with a growing pipeline, aiming to exceed the $250 million to $500 million production guidance for 2025.
Deleveraging Success
Successfully reduced leverage by 30% to a ratio of 2.8 to 1, down from a peak of around 4.0 to 1 over two years ago.
Negative Updates
Increased Delinquencies and REO Assets
Total delinquencies increased to approximately $654 million, with plans to take back assets as REO, temporarily dragging on earnings.
Challenging Interest Rate Environment
Significant volatility and uncertainty in interest rates impacting origination climate, particularly affecting agency business.
Reset and Lower Dividend
Quarterly dividend reset to $0.30 per share, reflecting the current challenging environment and reduced earnings expectations for 2025.
Non-Cash Interest Income Concerns
$15.3 million of interest income in the first quarter was non-cash, raising concerns about cash earnings sustainability.
Company Guidance
In the recent earnings call for Arbor Realty Trust, the company provided updated guidance for 2025, highlighting a transitional year due to ongoing economic challenges and the impact of elevated interest rates. The firm anticipates distributable earnings between $0.30 and $0.35 per quarter, with the first half of the year expected to be at the lower end of this range. The call detailed a $1.1 billion repurchase facility deal with JPMorgan that has added $80 million of liquidity and improved financing efficiencies. The REO assets are projected to grow to $400 million to $500 million, with plans to reposition these assets to enhance performance. Arbor also reported $370 million in new bridge loan originations in Q1, with a full-year goal of $1.5 billion to $2 billion. Additionally, Arbor's agency business is projected to achieve $3.5 billion to $4 billion in volume for 2025, supported by a strong pipeline of $2 billion. The strategic focus includes leveraging the CLO market and optimizing the firm's balance sheet to position for growth in 2026.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.