One of my favorite mREITs, Arbor Realty Trust (ABR) has reported their quarter and also raised there common dividend.
The good numbers have sent some of their preferreds ‘flying’ up 2-3%.
The press release can be found here.
Thanks to RetiredBroker for keeping an eye on this.
Can you please explain this statement for a newbie? What do you mean by “trades similar”? earned interest rate?
“The opp is especially true for pref investors where the pref trades similar to the common.”
Keith, I assume Maine meant “moves up and down by similar amounts” or “is highly correlated to”
MITT and RITM also had solid results and are defensively positioned.
The psychological aspect for MREITs is huge.
1) many investors got burned during COVID and said never again.
2) the management companies experienced margin calls/ forced selling to de-lever during Covid and said never again and put on more term or non-recourse financing.
The end result is fantastic buying opportunities for those willing to look at the fundamentals and absorb short term risk. The opp is especially true for pref investors where the pref trades similar to the common.
It should be noted that Arbor’s highest pref debt coupon is 6.375. (Total issuance of 500 mil D,E,F)