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Arbor Realty Trust Closes a $1.15 Billion Repurchase Facility to Unwind Two Outstanding Collateralized Loan Obligations

1. Arbor Realty Trust closed a $1.15 billion repurchase facility with JPMorgan. 2. Company transferred approximately $1.43 billion in assets into this facility. 3. The transaction aims to enhance liquidity by approximately $80 million. 4. Redemption of two CLOs is expected on March 17, 2025. 5. The CEO highlighted increased returns and efficiency from this transaction.

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FAQ

Why Bullish?

The repurchase facility significantly improves liquidity and reduces costs, boosting investor confidence. For instance, similar transactions have previously led to sustained stock price increases in REITs by enhancing their operational efficiency.

How important is it?

The announcement of the repurchase facility directly influences ABR's financial health, creating notable impacts on its price dynamics. The liquidity boost and the higher efficiency promised are substantial factors for investors.

Why Short Term?

The immediate effect of enhanced liquidity and operational performance is likely to drive short-term investor confidence and potentially boost stock price. Market reactions to such liquidity events are usually swift, seen in stocks like ABR in the past.

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JPMFRTABR
March 13, 2025 16:03 ET  | Source: Arbor Realty Trust UNIONDALE, N.Y., March 13, 2025 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE: ABR), today announced the closing of a $1.15 billion repurchase facility (the "Repurchase Facility"), with JPMorgan Chase Bank, N.A. In connection with this transaction, the Company transferred approximately $1.43 billion of assets into this Repurchase Facility, $1.34 billion of which were in two of the Company’s existing collateralized loan obligations (the “CLOs”), that the Company expects to redeem, in full and at par, on March 17, 2025, with proceeds from the Repurchase Facility. The assets being pledged were all recently appraised with values confirmed. The two CLOs being redeemed have combined leverage of approximately 77%, with pricing of SOFR plus 2.24%. The Repurchase Facility is match funded with 80% leverage, pricing that is well below the CLOs being redeemed and is primarily nonrecourse to the Company. Additionally, the Repurchase Facility includes a two-year replenishment period, enabling the reinvestment of principal proceeds from asset repayments into qualifying replacement assets, and contains a $100 million accordion feature, exercisable at the Company’s election within 90 days of closing. As a result of these transactions, the Company has created approximately $80 million of additional liquidity and has increased the returns on these assets through enhanced leverage and reduced pricing. “This is an incredibly innovative transaction that creates tremendous efficiencies for us going forward,” said Ivan Kaufman, the Company’s Chief Executive Officer. “This result also continues to reinforce the quality of our loan book and the depth of our banking relationships.” 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, 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. Contact:Arbor Realty Trust, Inc.Investor Relations516-506-4200InvestorRelations@arbor.com  

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