Arbor Realty Trust

Management prioritized balance sheet flexibility in 2025: unwound older CLOs, added a $1.15 billion repo facility, issued senior unsecured notes and repurchased $20 million of common stock around 64% of book value. Dividend reset improved forward coverage but still relied on distributable earnings normalization.

We note ongoing use of equity compensation and the 2026 proxy proposal to add 8 million shares to the incentive plan, which we treat as a dilution overhang. Acquisition risk is modest; most growth is organic through origination and securitization.