ABR Intrinsic Value Calculation – ARBOR REALTY TRUST: High Yields, But Limited Appeal
January 4, 2024
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ARBOR REALTY TRUST ($NYSE:ABR) is a real estate investment trust (REIT) that specializes in investments in multifamily and commercial real estate-related debt and equity investments. The company has a presence in major markets in the U.S., Europe, and Asia. Despite its impressive portfolio, however, ARBOR REALTY TRUST may not be an attractive option for many investors. While the company offers high yields, it also carries a number of risks that are inherent to REITs, including market risk and credit risk.
Additionally, the company’s stock has been relatively illiquid, with a small float and few trading opportunities. This means that even though ARBOR REALTY TRUST may offer high yields, there is limited appeal for potential investors since they may not be able to buy or sell the stock with ease. Furthermore, the company has been loss-making in recent years due to a combination of operational issues and macroeconomic volatility. Despite this, the company continues to offer high yields for investors who are willing to take on the risk.
Share Price
ARBOR REALTY TRUST is a real estate trust and mortgage REIT that has a focus on multifamily and commercial real estate debt investments. On Tuesday, the stock opened at $15.0 and closed at $15.0, down by 1.0% from its previous closing price of 15.2. ARBOR REALTY TRUST primarily invests in short-term, floating-rate debt, which makes it more attractive to investors who are looking for higher yields but may not be suitable for other investors seeking more long-term or fixed-rate investments. Despite the current market conditions, ARBOR REALTY TRUST’s stock has held steady, but investors should proceed with caution as the company has limited appeal and could be subject to higher risks. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for ABR. More…
| Total Revenues | Net Income | Net Margin |
| 729.09 | 326.56 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for ABR. More…
| Operations | Investing | Financing |
| 447.04 | 1.92k | -2.37k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for ABR. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 15.9k | 12.66k | 13.11 |
Key Ratios Snapshot
Some of the financial key ratios for ABR are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | – |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis – ABR Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis of ARBOR REALTY TRUST’s financials. Our proprietary Valuation Line indicates that the intrinsic value of ARBOR REALTY TRUST share is estimated to be around $17.3. However, ARBOR REALTY TRUST stock is currently trading at $15.0 which turns out to be a fair price but undervalued by 13.3%. Therefore, we believe that now is a good time to consider investing in this stock. More…
Peers
The competition between Arbor Realty Trust Inc and its competitors is fierce. Each company is vying for a share of the market and each has its own strengths and weaknesses.
However, its competitors are equally well-known and have their own strengths.
– W.P. Carey Inc ($NYSE:WPC)
W.P. Carey Inc. is a leading global investment management firm focused on real estate and infrastructure investing. With over $200 billion in assets under management, the company has a long history of providing innovative, creative solutions to meet the needs of its clients. The company’s market cap is $14.65 billion as of 2022. The company’s primary business is managing investment funds for clients, which are typically used to finance real estate and infrastructure projects. In addition to its investment management business, the company also provides advisory, financing, and other services to clients.
– Starwood Property Trust Inc ($NYSE:STWD)
Starwood Property Trust Inc is a real estate investment trust that focuses on originating, acquiring, financing, and managing commercial mortgage loans and other commercial real estate debt investments. As of December 31, 2020, the company had $16.0 billion of assets under management.
– Chimera Investment Corp ($NYSE:CIM)
Chimera Investment Corporation is a holding company that invests in a diversified portfolio of mortgage assets, including agency residential mortgage-backed securities, non-agency residential mortgage-backed securities, agency commercial mortgage-backed securities, and other real estate securities. The company was founded in 2007 and is headquartered in New York, New York.
Summary
ARBOR Realty Trust is a real estate investment trust focused on the multifamily and commercial real estate markets. ARBOR offers investors access to higher-yielding investments compared to traditional stock and bond investments, but with additional risks associated with real estate investing. ARBOR invest primarily in debt and bridge loans used to finance multifamily, single-family and commercial real estate.
ARBOR is focused on originating loans that allow for higher returns over traditional investment vehicles, but also carries with it more potential risks due to the nature of the underlying real estate investments. Investors should conduct thorough research and due diligence when considering ARBOR as a potential investment.
