Arbor’s business transformation has diversified their income sources into more predictable and stable revenues.
Arbor’s dividend has been increasing and I see potential for further increases in the future.
The CEO is a major shareholder and founder of the company. The alignment of management’s interest with shareholders provides a qualitative safety in the investment.
An investment in Arbor could return between 28% to 38% including dividends.
Arbor Realty Trust Inc is a specialized real estate finance company. It invests in a diversified portfolio of structured finance assets in the multifamily and commercial real estate markets, primarily consisting of bridge and mezzanine loans, including junior participating interests in first mortgages, preferred and direct equity.
In addition, it may also directly acquire real property and invest in real estate-related notes and certain mortgage-related securities. The company has two business segments, Structured Business and Agency Business. It generates a majority of its revenue from the Structured Business Segment. The company is externally managed and advised by Arbor Commercial Mortgage, LLC.