I have formerly spent over 3 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for News Perception specializing in quicker moving active shares with a short term view on investment opportunities and trends.
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Latest posts by Albert Cantu (see all)
- Earnings Recap: Beazer Homes USA Inc. (NYSE: BZH) - November 6, 2019
- News Alert: Arbor Realty Trust Inc. (NYSE: ABR) - October 29, 2019
- Financial Reports are Key to Consider: WhiteHorse Finance Inc. (NASDAQ: WHF) - October 27, 2019
UNIONDALE, N.Y., October 29, 2019 – Shares of Arbor Realty Trust Inc. (NYSE: ABR) inclined 1.04% to $13.54. The stock traded total volume of 1.083M shares lower than the average volume of 1.04M shares.
Arbor Realty Trust, Inc. (ABR) reported net income for the quarter of $28.90M, or $0.31 per diluted common share, compared to $17.20M, or $0.25 per diluted common share for the quarter ended June 30, 2018. Adjusted funds from operations (“AFFO”) for the quarter was $37.90M, or $0.33 per diluted common share, compared to $26.40M, or $0.29 per diluted common share for the quarter ended June 30, 2018.
For the quarter ended June 30, 2019, the Agency Business generated revenues of $52.70M, compared to $47.20M for the first quarter of 2019. Gain on sales, including fee-based services, net was $14.20M for the quarter, reflecting a margin of 1.54% on loan sales, compared to $16.40M and 1.49% for the first quarter of 2019. Income from mortgage servicing rights was $18.70M for the quarter, reflecting a rate of 1.44% as a percentage of loan commitments, compared to $14.20M and 1.68% for the first quarter of 2019.
At June 30, 2019, loans held-for-sale was $601.80M which was primarily comprised of unpaid principal balances totaling $597.30M, with financing associated with these loans totaling $597.20M.
The Company completed its eleventh collateralized securitization vehicle (“CLO XI”) totaling $650.00M of real estate related assets and cash. Investment grade-rated notes totaling $533.00M were issued, and the Company retained subordinate interests in the issuing vehicle of $117.00M. The facility has a three-year asset replenishment period and an initial weighted average interest rate of 1.44% over LIBOR, excluding fees and transaction costs.
The Company completed the unwind of CLO VI, redeeming $250.30M of outstanding notes repaid with proceeds received from the refinancing of CLO VI’s outstanding assets primarily within CLO XI, which has an interest rate 104 basis points lower than CLO VI. As a result of this transaction, the Company recognized an expense of $1.20M from the acceleration of deferred fees.
The balance of debt that finances the Company’s loan and investment portfolio at June 30, 2019 was $3.62B with a weighted average interest rate including fees of 4.96% as compared to $3.13B and a rate of 5.22% at March 31, 2019. The average balance of debt that finances the Company’s loan and investment portfolio for the second quarter of 2019 was $3.35B, as compared to $2.96B for the first quarter of 2019. The average cost of borrowings for the second quarter was 5.35%, compared to 5.24% for the first quarter of 2019. The increase in average costs was primarily due to the acceleration of fees related to the early repayment of debt.
The Company issued 9.20M shares of our common stock receiving net proceeds of $115.60M. The proceeds were primarily used to make investments and for general corporate purposes.
ABR has the market capitalization of $1.28B and its EPS growth ratio for the past five years was 31.00%. The return on assets ratio of the Company was 2.40% while its return on investment ratio stands at 3.50%. Price to sales ratio was 2.45 while 55.70% of the stock was owned by institutional investors.