Arbor Realty Trust prices $500 million senior notes at 7.875%

Published 03/07/2025, 14:06
Arbor Realty Trust prices $500 million senior notes at 7.875%

Investing.com - Arbor Realty Trust (NYSE:ABR) has priced a $500 million senior notes offering at a borrowing rate of 7.875%, according to Keefe, Bruyette & Woods, which reiterated its Market Perform rating and $11.00 price target on the stock.

The real estate investment trust plans to use part of the proceeds to redeem its Convertible Notes due 2025, which have $287.5 million of outstanding principal remaining.

The transaction is expected to generate approximately $212 million in additional liquidity for Arbor Realty Trust before accounting for transaction costs.

Keefe, Bruyette & Woods views the issuance positively, noting that the borrowing rate compares favorably to recent offerings in the market.

The research firm anticipates a positive market reaction to the news, as the offering strengthens the company’s liquidity position while maintaining reasonable borrowing costs.

In other recent news, Arbor Realty Trust reported first-quarter earnings that fell short of analyst expectations. The company posted adjusted earnings per share of $0.16, missing the consensus estimate of $0.29. However, revenue exceeded expectations, coming in at $134.16 million compared to the anticipated $104.55 million, despite a year-over-year decline from $157.1 million. Additionally, Arbor Realty Trust recently priced a $500 million offering in 7.875% Senior Notes due 2030, with proceeds partly allocated to refinancing existing debt. In terms of analyst activity, Citizens JMP maintained a Market Outperform rating with a $13.50 price target, citing confidence in Arbor’s business strategy and potential total return. Conversely, Keefe, Bruyette & Woods reduced their price target to $11.00 from $11.75, maintaining a Market Perform rating due to ongoing credit challenges and revised earnings estimates. The company also held its annual stockholders’ meeting, electing four Class I directors and ratifying its independent auditor for the fiscal year. Arbor Realty Trust continues to face challenges with non-performing loans and real estate owned expenses, yet it remains active in securing and expanding repurchase facilities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.