Terms

Series

6.25% Series E Cumulative Redeemable Preferred Stock

Liquidation Preference

$25.00

Coupon Rate

6.25%

Rate Type

Fixed

Annual Dividend

$1.56

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

Yes

Callable

Yes

First Call Date

August 11, 2026

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Existing And Future Indebtedness, Indebtedness Of Subsidiaries, Any Senior Equity Securities Issued In Future; Pari Passu With: 6.375% Series D Cumulative Redeemable Preferred Stock, Other Equity Securities With Parity Terms; Senior To: Common Stock, Special Voting Preferred Stock, All Other Junior Equity Securities

Regulatory (Basel III) Call

No

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Shares Offered

5,000,000

Prospectus Summary

Arbor Realty Trust, Inc. (NYSE: ABR), a Maryland REIT focused on multifamily and commercial real estate lending, is issuing 5,000,000 shares of its 6.25% Series E Cumulative Redeemable Preferred Stock at a $25.00 liquidation preference, callable at par on or after August 11, 2026. The stock pays a fixed 6.25% annual dividend ($1.5625/share, or $0.390625 quarterly) on the 30th of January, April, July, and October. This security is cumulative, meaning that any missed dividends accrue and must be paid in full before the issuer may resume distributions to common stockholders or other junior securities — a meaningful protection but one that does not guarantee timely payment. The Series E Preferred Stock sits above common stock and the Special Voting Preferred Stock in the capital stack, and ranks pari passu with Arbor's existing 6.375% Series D Preferred Stock. However, it is effectively junior to all of Arbor's approximately $6.75 billion in debt and other liabilities as of June 30, 2021 — including credit facilities, CLOs, senior unsecured notes, and convertible debt — as well as to all subsidiary-level obligations. Because Arbor is a holding company, the preferred is structurally subordinated to subsidiary creditors. There is no bank regulatory capital (Tier 1) redemption trigger; the only pre-2026 redemption right is to preserve REIT qualification or upon a Change of Control. At the $25.00 offering price, the effective yield is exactly 6.25% annually. As a REIT, Arbor's dividends are generally not eligible for the 15%/20% qualified dividend income (QDI) rate available to individual investors or the dividends-received deduction (DRD) for corporate holders — they are typically taxed as ordinary income. Record dates fall on the 15th of the month of each payment date (January, April, July, October). The dividend stopper prevents Arbor from paying common or junior preferred dividends unless Series E cumulative dividends are current; however, debt covenants or Maryland law could independently restrict dividend payments to preferred holders as well.

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 E Preferred Stock, it may not pay dividends on, make distributions on, or repurchase shares of common stock or any junior or parity preferred stock.

Other Preferreds from Arbor Realty Trust

Div Score Breakdown

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