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. It may also directly acquire real property and invests in real estate-related notes and certain mortgage-related securities. Targeted Investments The company pursues lending and investment opportunities with property owners and developers who need interim financing until permanent financing can be obtained. Its structured finance investments generally have maturities of two to five years depending on type, have extension options when appropriate, and generally require a balloon payment of principal at maturity. The company’s investment program emphasizes various general categories of real estate-related activities. Bridge Financing: The company offers bridge financing products to borrowers who are typically seeking short-term capital to be used in an acquisition of property. The borrower has usually identified an undervalued asset that has been under managed and/or is located in a recovering market. The bridge loans the company makes typically range in size from $5 million to $30 million, have terms of up to five years, and are predominantly secured by first mortgage liens on the property. At December 31, 2014 the company’s target interest rate range is generally 5% to 6% approximately 30-day LIBOR. 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 may 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 may 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. Junior Participation Financing: The company offers junior participation financing in the form of a junior participating interest in the senior debt. Junior participation financings have the same obligations, collateral and borrower as the senior debt. The junior participation interest is subordinated to the senior debt by virtue of a contractual agreement between the senior debt lender and the junior participating interest lender. The junior participation loans the company makes typically range in size from $1 million to $10 million and have terms of up to 10 years. Preferred Equity Investments: The company provides financing by making preferred equity investments in entities that directly or indirectly own real property. In cases where the terms of a first mortgage prohibit additional liens on the ownership entity, investments structured as preferred equity in the entity owning the property serve as viable financing substitutes. With preferred equity investments, the company typically becomes a member in the ownership entity. The preferred equity investments the company makes typically range in size from $1 million to $10 million and had terms up to 10 years. 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 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 and mezzanine loans, junior participation interests in first mortgages and preferred equity investments. As of December 31, 2014, the company had 139 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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