Arbor Realty Trust to Sell New Preferred

REIT Arbor Realty Trust (ABR) is selling a new perpetual preferred.

The company has 3 high yield preferred outstanding and they are indicating they may call some of these issues. They have been redeemable since 2018 and 2019 so they are overdue to redeem some of them.

The older issues are trading high and it looks like holders of 2 of the issues will take a bit of a spanking today–around 4% is likely.

I had these issues on my watch list, but haven’t owned any for quite some time because of valuation.

This issue will be unrated, cumulative, but non qualified.

The preliminary prospectus can be found here.

Fabrib and Ralph were right on top of this one.

16 thoughts on “Arbor Realty Trust to Sell New Preferred”

  1. Fat lady has definitely sung on A, B and C. With the over they have twice what they need to call all 3 issues.

  2. Well, I have owned both the A and B series for a nice long time, Hate to let them go, but said my byes this morning to the 8.25 and 7.75% returns. I am slowly losing the high yield ones such as these. Guess we all need to get used to the lower yields that replace them.

  3. Arbor Realty Trust, Inc. (NYSE: ABR)
    Series D
    $125 million+ (5mm shares)
    6.375% area
    Perpetual
    Expected BBB+ (Egan Jones)

    1. Wow. One has to wonder why they did not call existing issues earlier if they could replace with a 6.375% issue.

      1. Broker, they actually have and did know. An earlier this year conference call they were pressed about it. Management stated they knew they could redeem and reissue in under 7% range. Yet they waited a while. They kind of scoffed at its importance and would “look at it”. So they did in due time. I kept trading in it until it blew over $26 and I sold out for good. It was just a matter time and was pretty well obvious it was coming from their end.

    2. TY. In that case the company can easily call all 3 outstanding issues. Have to believe that will happen as they have no other high rate debt.

    3. The common has had a very strong run and are well covered. In this instance owning the common has been very rewarding. The firm is an internally managed reit with one of the best yield/total returns in the sector. Well worth looking at if you have not. SC

    4. Do you experts out there agree with the BBB+ rating from Egan Jones??? Seems like a darn good rating for that coupon.

  4. Older issues duly spanked. Frustrating that I sold all my C years ago (bought back tiny amount during panic) due to neg YTC, only to see it keep paying for all that time. How does one figure if/when calls will come?

    1. CR—there is no reliable way to know–if one looks at the company fundamentals you would think you could predict–but you can’t.

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