Terms

Series

6.375% Series D Cumulative Redeemable Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

6.375%

Rate Type

Fixed

Annual Dividend

$1.59

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

June 2, 2026

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Existing And Future Indebtedness Of The Issuer And Its Subsidiaries, Any Equity Securities Expressly Ranking Senior To The Series D Preferred Stock; Pari Passu With: 8.250% Series A Cumulative Redeemable Preferred Stock, 7.75% Series B Cumulative Redeemable Preferred Stock, 8.50% Series C Cumulative Redeemable Preferred Stock; Senior To: Common Stock, Special Voting Preferred Stock, All Other Junior Equity Securities

Regulatory (Basel III) Call

Yes

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

8,000,000

Prospectus Summary

Arbor Realty Trust, Inc. (NYSE: ABR), a Maryland REIT focused on multifamily and commercial real estate lending, is offering 8,000,000 shares of its 6.375% Series D Cumulative Redeemable Preferred Stock at a $25.00 liquidation preference, with an optional 1.2 million share overallotment. The fixed annual dividend of $1.59375 per share ($0.3984 per quarter) is paid on January 30, April 30, July 30, and October 30. The stock is non-callable until June 2, 2026, at which point Arbor may redeem at $25.00 plus accrued dividends. The Series D is cumulative, meaning any missed dividends accrue and must be paid in full before common stockholders receive any distributions. The Series D Preferred Stock ranks senior to Arbor's common stock and Special Voting Preferred Stock, and pari passu with the existing Series A (8.250%), Series B (7.75%), and Series C (8.50%) preferred series. However, it is effectively junior to all of Arbor's debt obligations and to the indebtedness of its operating subsidiaries, which totaled approximately $6.10 billion as of March 31, 2021. Because Arbor is a holding company whose operations run through Arbor Realty Limited Partnership and its subsidiaries, the preferred stock is structurally subordinated — subsidiary creditors have prior claims on subsidiary assets before any value flows up to preferred holders. There is no traditional bank regulatory capital trigger, but the issuer retains the right to redeem prior to June 2, 2026 solely to preserve its REIT tax qualification. At the $25.00 offering price, the Series D yields 6.375% annually. Because Arbor is a REIT, dividends generally do not qualify for the 15%/20% qualified dividend income (QDI) rate available to individual investors or the dividends-received deduction (DRD) for corporate holders; most distributions will be taxed as ordinary income. Record dates fall on the 15th of January, April, July, and October. Dividend stopper provisions prevent Arbor from paying dividends on common or junior/parity preferred stock unless Series D cumulative dividends are current; however, dividends are 'when, as and if declared' by the board, and existing debt covenants could legally restrict payment even as dividends continue to accrue.

Summarized from the SEC prospectus filing.

Distribution History

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If the issuer has not paid full cumulative dividends on the Series D Preferred Stock, it may not pay dividends on, make distributions on, or redeem/repurchase shares of its common stock or any other stock ranking junior to or on parity with the Series D Preferred Stock.

Other Preferreds from Arbor Realty Trust

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 35 (Weak)