Arbor Realty Trust: Not Quite Out Of The Woods Yet
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Arbor Realty Trust is facing challenges with rising non-performing loans and delinquencies, but management is addressing these issues. The company's dividend yield is nearly 12%, with the latest dividend covered by earnings, though coverage is tight. Investors should watch the impact of payment-in-kind interest on cash earnings, which could affect future dividend coverage.
December 17, 2024 | 1:45 am
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Arbor Realty Trust is dealing with rising non-performing loans and delinquencies, but management is taking steps to address these issues. The dividend yield is nearly 12%, with the latest dividend covered by earnings, though coverage is tight. Investors should monitor the impact of payment-in-kind interest on cash earnings, as it could affect future dividend coverage.
The rising non-performing loans and delinquencies are a concern for Arbor Realty Trust, which could negatively impact its financial stability and future dividend coverage. Although the current dividend is covered, the lack of a buffer and potential impact of payment-in-kind interest on cash earnings could pose risks. This situation is likely to create downward pressure on the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100