Arbor Realty Trust, Inc. Completes $802 Million Build-to-Rent Loan Securitization

Arbor Realty Trust completed an $802 million build-to-rent loan securitization, issuing $683 million in investment-grade notes.

Quiver AI Summary

Arbor Realty Trust, Inc. announced the closing of a $802 million build-to-rent loan securitization on May 30, 2025. This securitization includes approximately $683 million of investment grade-rated notes, of which Arbor retained subordinate interests totaling around $119 million and $41 million of investment grade notes. The structure allows for up to $50 million to acquire additional loans within 180 days. The securitization uniquely encompasses loans secured by build-to-rent properties under construction and includes a $200 million senior revolving note to fund construction and other loan advances. The investment grade notes have an initial spread of 2.48% over Term SOFR and are secured by real estate related assets valued at $652 million. Arbor plans to use the proceeds for repaying borrowings, covering transaction costs, and funding future investments. The investment-grade notes are not registered for public sale under the Securities Act of 1933.

Potential Positives

• Arbor Realty Trust successfully closed a significant build-to-rent loan securitization totaling approximately $802 million, indicating strong demand in their financing capabilities.
• The issuance of approximately $683 million of investment grade-rated notes enhances Arbor's credibility and financial standing in the market.
• The Securitization structure includes provisions for acquiring additional loans, demonstrating Arbor's proactive approach to growth and investment opportunities.
• The investment grade ratings from Fitch Ratings and DBRS, Inc. bolster investor confidence in Arbor's financial products and overall stability.

Potential Negatives

• The issuance of unregistered securities may limit the company's ability to attract certain investors, as these Notes cannot be offered or sold in the United States without registration, potentially constraining market access.
• The company carries a significant subordinate interest of approximately $119 million in the Securitization, which could pose a financial risk should the underlying assets underperform.
• Forward-looking statements in the release emphasize uncertainty regarding market conditions and the company's future performance, which may raise concerns for investors about the reliability of management's expectations.

FAQ

What is Arbor Realty Trust's recent securitization announcement?

Arbor Realty Trust announced a build-to-rent loan securitization totaling approximately $802 million, closed on May 30, 2025.

How much of the securitization was issued as investment grade-rated notes?

Approximately $683 million of investment grade-rated notes were issued as part of the securitization.

What are the plans for the proceeds from the securitization?

The proceeds will be used to repay existing credit facilities, cover transaction expenses, and fund future loans and investments.

What types of loans are included in the securitization?

The securitization includes loans secured by build-to-rent properties in various stages of construction.

Who rated the investment grade notes issued in the securitization?

The Notes were rated by Fitch Ratings, Inc. and DBRS, Inc.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$ABR Insider Trading Activity

$ABR insiders have traded $ABR stock on the open market 13 times in the past 6 months. Of those trades, 13 have been purchases and 0 have been sales.

Here’s a breakdown of recent trading of $ABR stock by insiders over the last 6 months:

• IVAN KAUFMAN (COB, CEO and President) has made 3 purchases buying 210,000 shares for an estimated $1,942,000 and 0 sales.
• PAUL ELENIO (Chief Financial Officer) has made 2 purchases buying 10,000 shares for an estimated $84,750 and 0 sales.
• WILLIAM C GREEN has made 2 purchases buying 5,269 shares for an estimated $74,661 and 0 sales.
• GIANNI OTTAVIANO (EVP, Struc Fin Prod) has made 2 purchases buying 4,527 shares for an estimated $40,476 and 0 sales.
• DAVID ERWIN FRIEDMAN (CCO & Head of Non-Agcy Prod) has made 4 purchases buying 4,500 shares for an estimated $39,318 and 0 sales.

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

$ABR Hedge Fund Activity

We have seen 145 institutional investors add shares of $ABR stock to their portfolio, and 194 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• COOPERMAN LEON G removed 2,421,194 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $28,449,029
• GOLDMAN SACHS GROUP INC removed 747,822 shares (-15.9%) from their portfolio in Q1 2025, for an estimated $8,786,908
• AZORA CAPITAL LP removed 669,053 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $7,861,372
• CONNOR, CLARK & LUNN INVESTMENT MANAGEMENT LTD. added 619,473 shares (+393.3%) to their portfolio in Q1 2025, for an estimated $7,278,807
• VOLORIDGE INVESTMENT MANAGEMENT, LLC removed 544,095 shares (-86.5%) from their portfolio in Q1 2025, for an estimated $6,393,116
• INVESCO LTD. added 510,772 shares (+30.3%) to their portfolio in Q1 2025, for an estimated $6,001,571
• SUSQUEHANNA INTERNATIONAL GROUP, LLP added 460,312 shares (+478.9%) to their portfolio in Q1 2025, for an estimated $5,408,666

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Full Release

UNIONDALE, N.Y., June 02, 2025 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE: ABR) today announced the closing of a unique build-to-rent loan securitization totaling approximately $802 million (the “Securitization”) on May 30, 2025. An aggregate of approximately $683 million of investment grade-rated notes were issued (the “Notes”) and Arbor retained subordinate interests in the issuing vehicle of approximately $119 million and approximately $41 million of the investment grade Notes. The funding structure includes approximately $50 million of capacity to acquire additional loans for a period of up to 180 days from the closing date of the Securitization.

The Securitization is unique in including loans secured by build-to-rent properties in various stages of horizontal and vertical construction. Construction loan advances will be funded, in part, by the issuing entity and, in part, by an Arbor affiliated holder of participation interests in the mortgage loans. The Securitization includes a $200 million senior revolving note, proceeds of which will be used by the issuer to fund construction and other loan advances, to acquire collateral interests on the closing date or to acquire replacement collateral assets during the replenishment period. Approximately $50 million was drawn on the revolving note at closing.

The investment grade Notes placed with investors have an initial weighted average spread of 2.48% over Term SOFR, excluding fees and transaction costs. The facility has a two year replenishment period that allows principal proceeds from repayments of the portfolio assets and the revolving note fundings to be reinvested in qualifying replacement assets, subject to certain conditions.

The offering of the investment grade-rated Notes was made pursuant to a private placement. The investment grade-rated Notes were issued under an indenture and secured initially by a portfolio of real estate related assets and cash with a face value of $652 million, with such real estate related assets consisting primarily of first mortgage construction and bridge loans.

Arbor intends to own the portfolio of real estate related assets through the vehicle until its maturity and expects to account for the Securitization on its balance sheet as a financing. Arbor will use the proceeds of this Securitization to repay borrowings under its current credit facilities, pay transaction expenses and fund future loans and investments.

Certain of the Notes were rated by Fitch Ratings, Inc. and all of the Notes were rated by DBRS, Inc.

The Notes are not registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.

About Arbor Realty Trust, Inc.

Arbor Realty Trust, Inc.

(NYSE:

ABR

) is a nationwide real estate investment trust and direct lender, providing loan origination and servicing for multifamily, single-family rental (SFR) portfolios, and other diverse commercial real estate assets. Headquartered in New York, Arbor manages a multibillion-dollar servicing portfolio, specializing in government-sponsored enterprise products. Arbor is a leading

Fannie Mae DUS®

lender and

Freddie Mac Optigo®

Seller/Servicer, and an approved FHA Multifamily Accelerated Processing (MAP) lender. Arbor’s product platform also includes

bridge

,

CMBS

,

mezzanine and preferred equity

loans. Rated by Standard and Poor’s and Fitch Ratings, Arbor is committed to building on its reputation for service, quality, and customized solutions with an unparalleled dedication to providing our clients excellence over the entire life of a loan.

Safe Harbor Statement

Certain items in this press release may constitute forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Arbor can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from Arbor’s expectations include, but are not limited to, changes in economic conditions generally, and the real estate markets specifically, continued ability to source new investments, changes in interest rates and/or credit spreads, and other risks detailed in Arbor’s Annual Report on Form 10-K for the year ended December 31, 2024 and its other reports filed with the SEC. Such forward-looking statements speak only as of the date of this press release. Arbor expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Arbor’s expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.