At a glance
- The suspension, reported by Bisnow and relayed by The Real Deal, follows a year in which the New York-based real estate investment trust had already halved the payout to 17 cents a share.
- Its chief executive said the move "will afford us the necessary time needed to work through the teeth of this downturn and realize the true value of our franchise for our shareholders."
- For investors holding Arbor debt or equity, the suspension keeps $60 million inside the company instead of paying it out, about 22% of the March maturity.
Arbor Realty Trust suspended its dividend following its third-quarter earnings release, aiming to save $60 million as it prepares to pay off $275 million of debt in March.
The suspension, reported by Bisnow and relayed by The Real Deal, follows a year in which the New York-based real estate investment trust had already halved the payout to 17 cents a share. Its chief executive said the move "will afford us the necessary time needed to work through the teeth of this downturn and realize the true value of our franchise for our shareholders."
For investors holding Arbor debt or equity, the suspension keeps $60 million inside the company instead of paying it out, about 22% of the March maturity. The remaining $215 million has to come from somewhere else, and whether retained cash goes to the debt or back out the door as new lending is the open question for anyone underwriting the REIT's next fiscal year.
Reported by the Real estate debt desk from The Real Deal — National and Bisnow. Published . Corrections