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Arbor Realty Trust Inc. with the ticker ABR is a mid-cap New York specialized finance company that could easily operate in the financial services business sector. This is the second of five financial candidates competing for the forty-eighth slot in my Viital folio. It is my first report on ABR for my Viital portfolio or any of the other six.

Arbor Realty Trust Inc is a specialized real estate finance company.

It invests in a diversified portfolio of structured finance assets in the multifamily and commercial real estate markets, primarily consisting of bridge and mezzanine loans, Including junior participating interests in first mortgages, preferred, and direct equity.

In addition, it may also directly acquire real property and invest in real estate-related notes and certain mortgage-related securities.

The company has two business segments, Structured Business and Agency Business. It generates a majority of its revenue from the Structured Business Segment.

The company is externally managed and advised by Arbor Commercial Mortgage, LLC.

The company qualifies as a real estate investment trust for federal Income tax purposes. It generally would not be subject to federal corporate Income taxes if it distributes at least 90% of its taxable income to its stockholders.

Arbor Realty Trust, Inc. was Incorporated in 2003 and is headquartered in Uniondale, New York.

Three key data points gauge any dividend equity or fund such as Arbor Realty Trust, Inc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.
 

ABRT Price

Arbor’s price per share was $15.26 as of yesterday’s market close.  One year ago its price was $18.19. So, ABR’s share price fell by $2.93 or about 16% in the past year.

If Arbor’s stock trades in the range of $12.00 to $21.00 this next year, its recent $15.26 share price might rise by $3.24 to reach $18.50 by next year. My $3.24 upside estimate is slightly under the median of one-year targets from 5 analysts covering ABR for brokers by $0.20.
 

ABR Dividends

Arbor Realty’s most recently declared a quarterly dividend of $0.39 is payable tomorrow, August 31st to shareholders on record as of August 12th.

Since May 29, 2012, ABR has paid quarterly dividends Increasing annually.  The current forward-looking annual dividend of $1.56. projects an annual yield of 10.22% as of yesterday’s $15.26 share price.
 

ABR Returns

Adding the $1.56 ABR annual dividend to my estimated one-year price upside estimate of $3.24 shows a $4.80 potential gross gain, per share, to be reduced by any costs to trade ABR shares.

At yesterday's $15.26 closing price, a little over $1000 would buy 66 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us $0.15 per share.

Subtract that maybe $0.15 brokerage cost from my estimated $4.80 gross gain estimate per share results in a net gain of $4.65 X 66 shares = $306.90, for a 30.65% net gain Including a 10.22% forward-looking annual dividend yield.

Over the next year our $1K investment in Arbor Realty Trust, Inc shares could generate $102.20 in cash dividends. Of course, a single share of ABR stock bought at yesterday's $15.26 price is nearly seven times less than the dividend Income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a positive time to acquire ABR shares based on their forward-looking dividends for the year 2022. The forecast annual dividend from $1K invested is 6.7 times greater than yesterday’s single share price. Consider yourself alerted. Now is the time.

All of the estimates above are speculation based on the past history of Arbor Realty Trust, Inc. Only time and money invested in this stock will determine its market value.

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