Arbor Realty – August 2024 Surveillance Report

Author: Viceroy Research Published on: August 20, 2024 Published in: Arbor Realty Trust (NYSE:ABR)

August 20, 2024 – This surveillance report of Arbor’s CLO for the month of August shows that quality continues to deteriorate. As Arbor continues to effectively wind down this book it will get more toxic: the book is being kept current almost entirely through modifications. For the first time ever, more of Arbor’s loans are modified than unmodified.

According to Bloomberg, Arbor is under investigation by the DOJ and FBI. It has been reported the Arbor may be under investigation by the SEC according to a post by X user @Price_to_Value.

Arbor has modified $4.0b of loans (~170 properties), representing ~68% of its ~$6.4b CLO portfolio (~298 properties).
Modified loans against 32 properties are already delinquent again.
The DSCR of modified loans is ~0.42x.
A month-on-month review shows loans are being modified multiple times in successive months.
A month-on-month review shows that modified loans have not been rehabilitated and will continue to fail.
As previously reported Arbor’s modifications are being incorrectly reported. This has not been fixed.

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