Arbor Realty Trust Closes a $1.05 Billion Collateralized Loan Obligation Securitization

Rhea-AI Summary

Arbor Realty Trust (NYSE:ABR) has successfully closed a $1.05 billion commercial real estate mortgage loan securitization. The transaction includes $933 million of investment grade-rated notes and $117 million in retained subordinate interests.

The securitization features a 1.82% weighted average spread over Term SOFR and includes $123 million of capacity for additional loan acquisitions within 180 days. The facility has a 2.5-year replenishment period allowing principal proceeds reinvestment. The notes are secured by real estate assets, primarily first mortgage bridge loans, and Arbor will maintain ownership through maturity.

Positive

• None.

Negative

• Increased leverage through new debt issuance
• Exposure to interest rate risk with SOFR-based pricing

News Market Reaction

+0.42%

1 alert

+0.42% News Effect

On the day this news was published, ABR gained 0.42%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

UNIONDALE, N.Y., Aug. 12, 2025 (GLOBE NEWSWIRE) -- Arbor Realty Trust, Inc. (NYSE: ABR), today announced the closing of a $1.05 billion commercial real estate mortgage loan securitization (the “Securitization”). An aggregate of approximately $933 million of investment grade-rated notes were issued (the “Notes”) and Arbor retained subordinate interests in the issuing vehicle of approximately $117 million. The $1.05 billion of collateral includes approximately $123 million of capacity to acquire additional loans for a period of up to 180 days from the closing date of the Securitization.

The Notes have an initial weighted average spread of 1.82% over Term SOFR, excluding fees and transaction costs. The facility has a replenishment period of approximately two years and six months that allows the principal proceeds from repayments of the portfolio assets to be reinvested in qualifying replacement assets, subject to certain conditions.

The offering of the investment grade-rated Notes was made pursuant to a private placement. The investment grade-rated Notes were issued under an indenture and secured initially by a portfolio of real estate related assets and cash with a face value of $1.05 billion, with such real estate related assets consisting primarily of first mortgage bridge loans.

Arbor intends to own the portfolio of real estate related assets through the vehicle until its maturity and expects to account for the Securitization on its balance sheet as a financing. Arbor will use the proceeds of this Securitization to repay borrowings under its current credit facilities, pay transaction expenses and fund future loans and investments.

Certain of the Notes were rated by Fitch Ratings, Inc. and all of the Notes were rated by DBRS, Inc.

The Notes are not registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.

About Arbor Realty Trust, Inc.

Arbor Realty Trust, Inc. (NYSE: ABR) is a nationwide real estate investment trust and direct lender, providing loan origination and servicing for multifamily, single-family rental (SFR) portfolios, and other diverse commercial real estate assets. Headquartered in New York, Arbor manages a multibillion-dollar servicing portfolio, specializing in government-sponsored enterprise products. Arbor is a leading Fannie Mae DUS® lender, Freddie Mac Optigo® Seller/Servicer and an approved FHA Multifamily Accelerated Processing (MAP) lender. Arbor’s product platform also includes bridge, CMBS, mezzanine and preferred equity loans. Rated by Standard and Poor’s and Fitch Ratings, Arbor is committed to building on its reputation for service, quality, and customized solutions with an unparalleled dedication to providing our clients excellence over the entire life of a loan.

Safe Harbor Statement

Certain items in this press release may constitute forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Arbor can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from Arbor’s expectations include, but are not limited to, changes in economic conditions generally, and the real estate markets specifically, continued ability to source new investments, changes in interest rates and/or credit spreads, and other risks detailed in Arbor’s Annual Report on Form 10-K for the year ended December 31, 2024 and its other reports filed with the SEC. Such forward-looking statements speak only as of the date of this press release. Arbor expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Arbor’s expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.

Contact:
Arbor Realty Trust, Inc.
Investor Relations
516-506-4200
InvestorRelations@arbor.com

FAQ

What is the size of Arbor Realty Trust's (ABR) new securitization in 2025?

Arbor Realty Trust closed a $1.05 billion commercial real estate mortgage loan securitization, with $933 million in investment grade-rated notes and $117 million in retained subordinate interests.

What is the interest rate spread on ABR's 2025 securitization?

The notes have an initial weighted average spread of 1.82% over Term SOFR, excluding fees and transaction costs.

How will Arbor Realty Trust use the proceeds from the 2025 securitization?

Arbor will use the proceeds to repay borrowings under current credit facilities, pay transaction expenses, and fund future loans and investments.

What is the replenishment period for ABR's 2025 securitization?

The facility has a replenishment period of approximately two years and six months, allowing principal proceeds from repayments to be reinvested in qualifying replacement assets.

What type of assets secure ABR's 2025 securitization?

The securitization is secured by a portfolio of real estate related assets consisting primarily of first mortgage bridge loans with a face value of $1.05 billion.