Arbor Realty Offers Shares - Analyst Blog

Arbor Realty Trust, Inc. (ABR), a real estate investment trust (REIT), recently announced  a public offering of 3.5 million shares to increase its liquidity. To cover up for over allotments, Arbor Realty also plans to offer an option to the underwriters for purchase of an additional tranche in excess of 0.5 million shares.

Deutsche Bank Securities Inc, part of Deutsche Bank AG (DB), is the sole  book running manager for the offering.

Arbor Realty intends to use the net proceeds from the equity offer to increase its investment portfolio and for general corporate purposes.

Earlier in June 2012, Arbor Realty had issued 3.5 million shares in a public offering to raise net proceeds of approximately $17.5 million. At the end of June 2012, cash and cash equivalents stood at $64.3 million with outstanding borrowings for its loan and investment portfolio totalling approximately $1.3 billion. The company diligently manages its portfolio to maintain steady cash reserves. At the same time, it ensures capital appreciation to maximize returns for its shareholders.

Headquartered in Uniondale, New York, Arbor Realty invests in a diversified portfolio of multi-family and commercial real estate-related bridge and mezzanine loans, preferred equity investments, mortgage-related securities and other real estate related assets. The company provides structured finance products to a diverse group of asset classes across a wide geographic region.  

Arbor Realty Trust currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We also have a long-term Neutral recommendation on the stock. One of its competitors, Redwood Trust, Inc. (RWT) currently retains a Zacks #2 Rank, which implies a Buy rating.