Arbor Realty Trust, Inc., a specialized real estate finance company, invests in a portfolio of structured finance assets in the multi-family and commercial real estate markets. The company is externally managed and advised by Arbor Commercial Mortgage, LLC (ACM). The company invests primarily in real estate-related bridge and mezzanine loans, including junior participating interests in first mortgages, preferred and direct equity, and in limited cases, discounted mortgage notes and other real estate-related assets, which the company refers to collectively as structured finance investments. It also holds investments in mortgage-related securities and real estate property. Targeted Investments The company pursues lending and investment opportunities with property owners and developers who need interim financing until permanent financing could be obtained. Its structured finance investments have maturities of two to five years depending on type, have extension options when appropriate, and require a balloon payment of principal at maturity. Borrowers in the market for these types of loans include owners or developers seeking either to acquire or refurbish real estate or to pay down debt and reposition a property for permanent financing. The company’s investment program emphasizes the following general categories of real estate-related activities: Bridge Financing: The company offers bridge financing products to borrowers who are seeking short-term capital to be used in an acquisition of property. Junior Participation Financing: The company offers junior participation financing in the form of a junior participating interest in the senior debt. Mezzanine Financing: The company offers mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower's equity in a transaction. Mezzanine financing might take the form of loans secured by pledges of ownership interests in entities that directly or indirectly control the real property or subordinated loans secured by second mortgage liens on the property. The company might also require additional security, such as personal guarantees, letters of credit, and/or additional collateral unrelated to the property. The company holds a majority of its mezzanine loans through subsidiaries of its operating partnership that are pass-through entities for tax purposes. Preferred Equity Investments: The company provides financing by making preferred equity investments in entities that directly or indirectly own real property. Other Investment Opportunities Real Property: The company obtains real estate by foreclosure or through partial or full settlement of mortgage debt related to its loans. Note Acquisitions: The company might acquire real estate notes from lenders in situations where the borrower wishes to restructure and reposition its short-term debt and the lender wishes, for various reasons (such as risk mitigation, portfolio diversification, or other strategic reasons), to divest certain assets from its portfolio. Equity Securities: The company invests in equity securities, such as the common stock of a commercial real estate specialty finance company. Residential Mortgage-Backed Securities: The company invests in residential mortgage-backed securities. Commercial Real Estate Collateralized Debt Obligation Bonds: The company invests in securities, such as commercial real estate collateralized debt obligation bonds. Commercial Mortgage-Backed Securities: The company invests in commercial mortgage-backed securities. Structured Finance Investments The company owns a portfolio of structured finance investments consisting primarily of real estate-related bridge, junior participation interests in first mortgages, and mezzanine loans, as well as preferred equity investments. As of December 31, 2013, the company had 144 loans and investments in its portfolio. Tax Status The company has elected to be taxed as a real estate investment trust (REIT) under the Internal Revenue Code of 1986, as amended. As a result, the company is not subject to Federal or State income taxation at the corporate level to the extent it distributes annually approximately 90% of its REIT taxable income to its shareholders and satisfies certain other requirements. Strategy The company’s business and growth strategies include providing customized financing; executing transactions rapidly; managing credit quality; using ACM's relationships with existing borrowers; and offering broader products and expanding customer base. Regulation The company’s manager is required to register under the Investment Advisors Act of 1940, and is thereby subject to the regulation prescribed by the statute. In addition, its subsidiary, Arbor Realty Collateral Management, LLC, the collateral manager for its collateralized debt obligations and collateralized loan obligations, is also registered under the Investment Advisors Act of 1940. History Arbor Realty Trust, Inc., a Maryland corporation, was founded in 2003.
arbor realty trust inc (ABR:New York)
333 Earle Ovington Boulevard
Uniondale, NY 11553
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