August 29, 2017
Arbor Realty Trust is offering bonds at 7.3%. They went ex-dividend July 28 and the price is rising: right now at $25.27. This is a buy and pasted below is some information.
Baby Bonds Ticker: ABRN
QUANTUMONLINE.COM SECURITY DESCRIPTION: Arbor Realty Trust, Inc., 7.375% Senior Notes due 2021, issued in $25 denominations, redeemable at the issuer’s option on or after 5/15/2017 at $25 per note plus accrued and unpaid interest, and maturing 5/15/2021. Interest distributions of 7.375% per annum ($1.84375 per annum or $0.460938 per quarter) will be paid quarterly on 2/15, 5/15, 8/15 & 11/15 to holders of record on the record date that will be 2/1, 5/1, 8/1 & 11/1 respectively
Arbor Realty Trust (ABR)
Dividend Yield: 9%
Arbor Realty Trust (ABR) is something of a feel-good story – a specialty finance REIT that got clobbered in the 2007-09 bear market but has since built its way back to stability and even powerful profits, complete with sizable dividend growth over the past few years.
Arbor Realty provides debt capital for multifamily real estate, as well as commercial properties across healthcare, senior housing and other industries.
Arbor’s struggles a decade ago have resulted in much more conservative fiscal management, so the dividend is well-covered by adjusted funds for operations, which came to 22 cents versus the company’s 18-cent payout. All told, recently reported second-quarter FFO of $18.2 million jumped 65% year-over-year.
That dividend, by the way, now is perched 140% higher than when ABR reinstated its payout back in 2012.
Business is booming, with the portfolio growing 10% year-over-year, and Arbor just closed a seventh collateralized securitization vehicle of $360 million. So while Arbor’s 9% dividend yield isn’t anything to sneeze at, you also have to enjoy how well ABR is setting itself up for future growth, too.
We own WP Carey corporate bonds and they are doing well. We saw a very positive article in Seeking Alpha that covers WP Carey and we suggest you read it. They are still offering a 2024 bond which gives you 3.5%: ok but not great.
From Wall Street Journal.
Investors are pulling a steady stream of money from the U.S. stock market, the latest sentiment shift to cause unease among market bulls.
Mutual funds and exchange-traded funds that invest in U.S. equities marked their 10th consecutive week of net outflows during the seven days ended Wednesday, good for the longest such streak in 13 years, according to Bank of America Merrill Lynch data.
The $2.6 billion pulled from U.S. equity funds in the latest week helped push withdrawals to $30 billion since late June, per Bank of America. Data provider EPFR found that the outflows were concentrated most heavily in actively managed funds, as The Wall Street Journal’s Morning MoneyBeat newsletter notes.
The steady stream of withdrawals adds to concerns about a bull market that looks expensive by many measures. The S&P 500, which is up 9.1% this year to close at 2443 Friday, trades at a far-above-average ratio to the next twelve months of expected earnings.