The Market Turned On Arbor Realty, But The Series D Preferreds May Spell Opportunity

Bashar Issa7.14K FollowersFollow5ShareSaveCommentsSummaryArbor Realty Trust, Inc. remains pressured, but legacy portfolio issues appear manageable rather than existential.The ABR Series D preferreds offer yield, seniority over common, and meaningful upside to par.Preferred coverage looks solid, though senior note pricing tempers confidence in the thesis. Mohd Azrin/iStock via Getty Images Investment Thesis Arbor Realty Trust, Inc. (ABR) has been suffering some portfolio setbacks, manifested in higher delinquencies, loan extensions, and modifications. The company is still profitable, and given its current valuation, I am This article was written byBashar Issa7.14K FollowersFollowBashar is a contributing writer at Seeking Alpha, focusing on Long/Short investment ideas, with a geographic focus in North America. Before that, Bashar worked at an Investment Fund in the United Kingdom. He has a Master's degree in Finance from the Queen Mary University of London and a Bachelor's degree in Economics from Middlesex University.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.