NYSE:ABR

Stock Analysis Report

Executive Summary

Arbor Realty Trust, Inc. invests in a diversified portfolio of structured finance assets in the multifamily and commercial real estate markets.

Rewards

Trading at 37.7% below its fair value

Earnings are forecast to grow 5.1% per year

Earnings grew by 32% over the past year

Risk Analysis

Dividend of 8.15% is not well covered by earnings

Shareholders have been diluted in the past year



Snowflake Analysis

Solid track record and good value.


Similar Companies

AGNC Investment

NasdaqGS:AGNC

Share Price & News

How has Arbor Realty Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ABR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.6%

ABR

0.7%

US Mortgage REITs

-1.4%

US Market


1 Year Return

24.7%

ABR

-0.9%

US Mortgage REITs

14.5%

US Market

Return vs Industry: ABR exceeded the US Mortgage REITs industry which returned -0.9% over the past year.

Return vs Market: ABR exceeded the US Market which returned 14.5% over the past year.


Shareholder returns

ABRIndustryMarket
7 Day-2.6%0.7%-1.4%
30 Day-1.1%1.9%1.3%
90 Day19.2%7.2%4.6%
1 Year37.9%24.7%10.3%-0.9%17.1%14.5%
3 Year160.0%95.7%37.4%-0.9%45.1%35.7%
5 Year245.5%118.7%57.6%-9.6%67.1%48.6%

Price Volatility Vs. Market

How volatile is Arbor Realty Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Arbor Realty Trust undervalued compared to its fair value and its price relative to the market?

37.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ABR ($14.72) is trading below our estimate of fair value ($23.63)

Significantly Below Fair Value: ABR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ABR is good value based on its PE Ratio (10.4x) compared to the Mortgage REITs industry average (13.3x).

PE vs Market: ABR is good value based on its PE Ratio (10.4x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: ABR is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: ABR is overvalued based on its PB Ratio (1.5x) compared to the US Mortgage REITs industry average (1x).


Next Steps

Future Growth

How is Arbor Realty Trust forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABR's forecast earnings growth (5.1% per year) is above the savings rate (1.7%).

Earnings vs Market: ABR's earnings (5.1% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: ABR's earnings are forecast to grow, but not significantly.

Revenue vs Market: ABR's revenue is expected to decline over the next 3 years (-12% per year).

High Growth Revenue: ABR's revenue is forecast to decline over the next 3 years (-12% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ABR's Return on Equity is forecast to be low in 3 years time (12.8%).


Next Steps

Past Performance

How has Arbor Realty Trust performed over the past 5 years?

11.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABR has high quality earnings.

Growing Profit Margin: ABR's current net profit margins (28.7%) are higher than last year (26.1%).


Past Earnings Growth Analysis

Earnings Trend: ABR's earnings have grown by 11.9% per year over the past 5 years.

Accelerating Growth: ABR's earnings growth over the past year (32%) exceeds its 5-year average (11.9% per year).

Earnings vs Industry: ABR earnings growth over the past year (32%) exceeded the Mortgage REITs industry 0.1%.


Return on Equity

High ROE: ABR's Return on Equity (13.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Arbor Realty Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: ABR has a low level of unsold assets or inventory.

Debt Coverage by Assets: ABR's debt is covered by short term assets (assets are 1.1x debt).


Financial Institutions Analysis

Asset Level: ABR's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if ABR has a sufficient allowance for bad loans.

Low Risk Liabilities: ABR reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if ABR has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ABR has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if ABR has an appropriate level of bad loans.


Next Steps

Dividend

What is Arbor Realty Trust's current dividend yield, its reliability and sustainability?

8.15%

Current Dividend Yield


Dividend Yield vs Market

company8.2%marketbottom25%1.4%markettop25%3.7%industryaverage10.1%forecastin3Years8.2%

Current dividend yield vs market & industry

Notable Dividend: ABR's dividend (8.15%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: ABR's dividend (8.15%) is in the top 25% of dividend payers in the US market (3.71%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, ABR has been paying a dividend for less than 10 years.

Growing Dividend: ABR's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (80.8%), ABR's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ABR's dividends in 3 years are not forecast to be well covered by earnings (96.9% payout ratio).


Next Steps

Management

What is the CEO of Arbor Realty Trust's salary, the management and board of directors tenure and is there insider trading?

8.7yrs

Average management tenure


CEO

Ivan Kaufman (58yo)

16.5yrs

Tenure

US$10,651,563

Compensation

Mr. Ivan Kaufman, J.D., is the Founder of Arbor Realty Trust, Inc. and has been its Chief Executive Officer and President since June 2003. Mr. Kaufman Founded Arbor Realty Trust, Inc. He is the Founder and ...


CEO Compensation Analysis

Compensation vs Market: Ivan's total compensation ($USD10.65M) is above average for companies of similar size in the US market ($USD3.87M).

Compensation vs Earnings: Ivan's compensation has been consistent with company performance over the past year.


Management Age and Tenure

8.7yrs

Average Tenure

52yo

Average Age

Experienced Management: ABR's management team is seasoned and experienced (8.7 years average tenure).


Board Age and Tenure

8.0yrs

Average Tenure

58yo

Average Age

Experienced Board: ABR's board of directors are considered experienced (8 years average tenure).


Insider Trading

Insider Buying: ABR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$256,59918 Sep 19
William Green
EntityIndividual
Role
Lead Director
Lead Director
Shares20,000
Max PriceUS$12.83
SellUS$227,83618 Sep 19
William Green
EntityIndividual
Role
Lead Director
Lead Director
Shares17,793
Max PriceUS$12.82
BuyUS$55,43314 Aug 19
Melvin Lazar
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,559
Max PriceUS$12.16

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 31.7%.


Management Team

  • John Bishar (69yo)

    General Counsel

    • Tenure: 3.1yrs
    • Compensation: US$1.17m
  • Ivan Kaufman (58yo)

    Chairman

    • Tenure: 16.5yrs
    • Compensation: US$10.65m
  • Fred Weber (58yo)

    Executive VP and MD of Structured Finance & Principal Transactions

    • Tenure: 16.5yrs
    • Compensation: US$1.71m
  • John Caulfield (54yo)

    Executive VP of Agency Lending & COO

    • Tenure: 0.9yrs
    • Compensation: US$1.81m
  • Gene Kilgore (52yo)

    Executive Vice President of Structured Securitization

    • Tenure: 15.2yrs
    • Compensation: US$1.71m
  • Paul Elenio (51yo)

    Executive VP

    • Tenure: 14.3yrs
    • Compensation: US$1.71m
  • Thomas Ridings (51yo)

    Chief Accounting Officer

    • Tenure: 0yrs
  • Lee Roth

    Senior Vice President

    • Tenure: 0yrs
  • Howard Leiner (49yo)

    Executive VP & CTO

    • Tenure: 1yrs
  • Steven Katz (48yo)

    Chief Investment Officer & Executive VP of Residential Financing

    • Tenure: 0.8yrs

Board Members

  • Archie Dykes (88yo)

    Independent Director

    • Tenure: 13.7yrs
    • Compensation: US$160.39k
  • Melvin Lazar (80yo)

    Independent Director

    • Tenure: 8yrs
    • Compensation: US$180.39k
  • Ivan Kaufman (58yo)

    Chairman

    • Tenure: 16.5yrs
    • Compensation: US$10.65m
  • Joseph Martello (63yo)

    Director

    • Tenure: 16.5yrs
    • Compensation: US$75.00k
  • William Helmreich (73yo)

    Independent Director

    • Tenure: 16.5yrs
    • Compensation: US$165.39k
  • Bill Green (58yo)

    Lead Director

    • Tenure: 6.8yrs
    • Compensation: US$225.39k
  • George Tsunis (51yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$170.39k
  • Edward Farrell (58yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$77.50k
  • Elliot Schwartz (58yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$80.41k

Company Information

Arbor Realty Trust, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Arbor Realty Trust, Inc.
  • Ticker: ABR
  • Exchange: NYSE
  • Founded: 2003
  • Industry: Mortgage REITs
  • Sector: Diversified Financials
  • Implied Market Cap: US$1.761b
  • Market Cap: US$1.456b
  • Shares outstanding: 118.24m
  • Website: https://www.arbor.com

Number of Employees


Location

  • Arbor Realty Trust, Inc.
  • 333 Earle Ovington Boulevard
  • Suite 900
  • Uniondale
  • New York
  • 11553
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ABRNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 2004
OWQDB (Deutsche Boerse AG)YesCommon StockDEEURApr 2004
ABR.PRANYSE (New York Stock Exchange)PFD SER A %USUSDFeb 2013
ABR.PRBNYSE (New York Stock Exchange)CUM RED PFD BUSUSDMay 2013
ABR.PRCNYSE (New York Stock Exchange)CUM RED PFD SR CUSUSDFeb 2014

Biography

Arbor Realty Trust, Inc. invests in a diversified portfolio of structured finance assets in the multifamily and commercial real estate markets. The company operates in two segments, Structured Business and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 00:04
End of Day Share Price2019/12/05 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.