Arbor Realty Trust (NYSE:ABR) Hits New 12-Month Low on Disappointing Earnings

Key Points

• Arbor Realty Trust hit a new 52-week low after reporting disappointing quarterly results, with shares falling to as low as $7.04 following the earnings release.
• The company posted EPS of $0.07, well below the $0.16 consensus estimate, even though revenue of $119.67 million came in above expectations.
• Arbor also declared a quarterly dividend of $0.30 per share, offering a high annualized yield of 16.7%, though its payout ratio remains elevated at 218.18%.

Shares of Arbor Realty Trust (NYSE:ABR - Get Free Report) reached a new 52-week low on Saturday following a weaker than expected earnings announcement. The stock traded as low as $7.04 and last traded at $7.2050, with a volume of 11938019 shares traded. The stock had previously closed at $8.17.

The real estate investment trust reported $0.07 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.16 by ($0.09). The firm had revenue of $119.67 million for the quarter, compared to analyst estimates of $109.86 million. Arbor Realty Trust had a net margin of 15.83% and a return on equity of 10.10%.

Arbor Realty Trust Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 24th. Stockholders of record on Tuesday, March 10th were issued a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 16.7%. The ex-dividend date of this dividend was Tuesday, March 10th. Arbor Realty Trust's payout ratio is 218.18%.

More Arbor Realty Trust News

Here are the key news stories impacting Arbor Realty Trust this week:

• Positive Sentiment: Revenue came in above Wall Street expectations, with Arbor reporting $119.7 million in revenue versus an estimated $109.9 million, and the company also highlighted liquidity gains from a $762.6 million collateralized securitization that generated about $35 million of additional liquidity. Article Title
• Neutral Sentiment: The company declared a quarterly dividend of $0.17 per share, which may help support income-focused investors even as earnings remain uneven. Article Title
• Neutral Sentiment: Management said it resolved some legacy assets and sees additional delinquency resolutions ahead, but that also underscores ongoing credit quality work that investors are watching closely. Article Title
• Negative Sentiment: Adjusted earnings/distributable earnings missed expectations, with Q1 EPS of $0.07 versus the $0.16 consensus, and GAAP net income was only $0.6 million. Article Title
• Negative Sentiment: Sales declined 12.5% year over year to $117.4 million, and analysts noted the stock may be reacting to the weaker profitability outlook despite the revenue beat. Article Title
• Negative Sentiment: Recent analyst revisions also turned more cautious, with Zacks cutting estimates and issuing a strong sell rating ahead of the earnings release, adding to downside pressure on ABR. Article Title

Analysts Set New Price Targets

Several analysts recently commented on the company. Citizens Jmp lowered their target price on Arbor Realty Trust from $12.00 to $11.00 and set a "market outperform" rating on the stock in a research report on Thursday, April 2nd. Wall Street Zen lowered Arbor Realty Trust from a "hold" rating to a "sell" rating in a research report on Saturday, March 28th. Keefe, Bruyette & Woods increased their price target on Arbor Realty Trust from $7.50 to $8.00 and gave the stock an "underperform" rating in a research note on Wednesday, March 4th. Weiss Ratings lowered Arbor Realty Trust from a "hold (c-)" rating to a "sell (d+)" rating in a report on Tuesday, February 24th. Finally, Zacks Research raised shares of Arbor Realty Trust from a "strong sell" rating to a "hold" rating in a report on Monday, May 4th. One analyst has rated the stock with a Buy rating, one has assigned a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Reduce" and an average target price of $9.00.

Institutional Trading of Arbor Realty Trust

Several institutional investors have recently modified their holdings of ABR. Balyasny Asset Management L.P. boosted its stake in Arbor Realty Trust by 296.8% during the fourth quarter. Balyasny Asset Management L.P. now owns 3,835,715 shares of the real estate investment trust's stock valued at $29,765,000 after buying an additional 2,869,132 shares in the last quarter. Schonfeld Strategic Advisors LLC bought a new stake in Arbor Realty Trust in the fourth quarter worth about $10,219,000. Wasatch Advisors LP raised its position in Arbor Realty Trust by 19.2% in the third quarter. Wasatch Advisors LP now owns 4,057,421 shares of the real estate investment trust's stock worth $49,541,000 after acquiring an additional 654,583 shares in the last quarter. Azora Capital LP acquired a new stake in Arbor Realty Trust in the 3rd quarter valued at about $7,897,000. Finally, Van ECK Associates Corp lifted its holdings in Arbor Realty Trust by 41.9% in the 4th quarter. Van ECK Associates Corp now owns 1,892,783 shares of the real estate investment trust's stock valued at $14,688,000 after acquiring an additional 559,209 shares during the last quarter. Institutional investors and hedge funds own 57.25% of the company's stock.

Arbor Realty Trust Stock Performance

The company's 50-day moving average price is $7.84 and its two-hundred day moving average price is $8.34. The company has a market cap of $1.39 billion, a P/E ratio of 13.10 and a beta of 1.24. The company has a current ratio of 394.59, a quick ratio of 394.59 and a debt-to-equity ratio of 2.41.

Arbor Realty Trust Company Profile

Arbor Realty Trust, Inc NYSE: ABR is a real estate investment trust specializing in the origination, acquisition, financing, structuring and management of commercial real estate loans and securities. The company focuses primarily on multifamily and commercial mortgage lending, targeting properties such as apartment communities, senior housing and healthcare facilities. Through both agency and non-agency channels, Arbor Realty Trust seeks to deliver liquidity solutions to borrowers while generating stable, risk-adjusted returns for its shareholders.

Core business activities include originating first-mortgage loans secured by multifamily and mixed-use properties, as well as providing mezzanine financing and preferred equity investments.

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