A little over a year ago, I reviewed the dividend safety of Arbor Realty Trust (NYSE: ABR). It received a "B" rating. At the time, the only issue was my expectation for declining net interest income in 2024. Net interest income is the metric we use for mortgage real estate investment trusts, or REITs, to determine whether they are generating enough cash to afford their dividends. Arbor Realty Trust pays a whopping 14.4% yield. Let's find out if that dividend is still safe. Net interest income did in fact drop in 2024, from $428 million to $363 million. This year, NII is expected to rebound to $409 million. However, we've got a problem. |
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