Arbor Realty Trust posts Q3 loss, suspends dividend

Overview

• US real estate lender reported Q3 net loss as provisions and impairments weighed on results

• Company suspended quarterly common stock dividend to preserve capital and maintain flexibility

• Higher provisions for loan losses and more non-performing loans drove quarterly loss

Outlook

• Arbor Realty Trust will continue to evaluate its dividend policy based on market conditions and company performance

Result Drivers

• LOAN LOSS PROVISIONS - Co recorded $53 mln net provision for loan losses under CECL in Q3, citing additional delinquencies and rate modifications

• REAL ESTATE IMPAIRMENTS - Co recorded $34.1 mln of impairments on six real estate owned properties in Q3

• DIVIDEND SUSPENSION - Co suspended quarterly cash dividend on common stock to preserve capital and maintain financial flexibility

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy."

• Wall Street's median 12-month price target for Arbor Realty Trust, Inc. is $3.25, about 7.6% above its October 29 closing price of $3.02

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• Oct 28 - KKR Real Estate Finance Trust posts smaller Q3 loss on strong loan repayments

• Oct 29 - Blackstone Mortgage Trust posts Q3 loss

• Oct 28 - Franklin BSP Realty Trust posts Q3 net loss on credit losses

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)