The new preferred issue from Arbor Realty Trust (ABR) has been priced.
The relatively large issue of 8 million shares plus 1.2 million overallotment shares prices at 6.375%.
The REIT has 3 high yield issues outstanding which can be seen here, could all be redeemed with the proceeds of this larger new issue. No call has been made at this point.
The new issue is cumulative and non qualified.
The issue will trade immediately on the OTC grey market under ticker ABRRP
The pricing term sheet can be read here.
5 thoughts on “Arbor Realty Trust New Preferred Pricing Detail”
Tim; What is your opinion of this one? I kinda like it but have my reservations as well. As an example, its exhausting to do a deep dive of research on these things. I spent probably around 90 minutes researching FGBIP only to not be able to get any shares as it just keeps trading Higher & Higher. I won’t chase these things. Plus many of them have very LOW VOLUME. Yes, I know my example is a completely different industry but the Low Volume thing is a concern for many of us. I recently bought quite a bit of DDT and it took me over a week to get the shares that I wanted.
When I was a teenager Chuck. I loved shopping at Dillards, JCPenney, Sears. They were the icons in my local mall. Today, I just cant take a swing at DDT, despite all the good mall memories of the past. Today, my go to stores are Target, Home Depot, and Ace Hardware, and a local grocery chain noone has every heard of.
Hi Mr. Conservative; First of all let me say before I took the plunge on DDT several things happened along the pathway. I by luck have a forensic CPA that has access to lots of people and is truly a very smart guy. If you just looked at the “surface” and went no farther you would never buy even one share of DDT. But when you start digging you find some interesting things. For example, The Dillard family owns 24% of the common and 99.3% of the B shares. Most folks I would guess do not know that. Second thing is the employees thru their retirement plan own 7 million shares of the common. Again, not widely known. And last Ted Weschler of Warren Buffet fame last Oct. 12th, 2020 purchased 1.08 million shares of the common–symbol is DDS. Also I would mention that the common as I type this is trading at $134.01 so its not a penny stock by any stretch. My CPA has done alot of homework on this company and is in it big time with the DDT so I took the plunge too.
Chuck – I was interested at 25–but like you I won’t chase too much. They have actually done a decent job of managing through the pandemic. Their multifamily focus is something I can live with compared to pure commercial real estate type loans. They have been moving their common share dividend higher recently and have been able to easily sell common shares.
On the other hand I won’t buy any mortgage REIT preferred and hold ‘forever’. For a year maybe–but not forever–to many moving parts that I don’t feel well versed in these moving parts so like Buffett I stick to what I can understand easily.
THANK YOU TIM. I truly do appreciate the info and feedback.