Arbor Shares Plunge After Mortgage Lender Warns on Dividends (1)

Arbor Realty Trust Inc. cautioned shareholders to expect lower earnings and a smaller dividend as the apartment complex lender grapples with delinquencies and higher interest rates.

The mortgage real estate investment trust’s shares plunged as much as 13.87% to the lowest since February 2024 after the comments on an earnings call.

Arbor makes loans to owners of apartment buildings and packages many of them into commercial real estate collateralized loan obligations, a type of securitization that slices up cash flows into bonds of varying risk and size. After issuing the CLOs, Arbor continues to manage the transactions, which can include ...