Long Position on ABR @ $18.75 on 10/5/2021 (Fundamentals)

Arbor Realty Trust, Inc. (ABR) invests in a diversified portfolio of structured finance assets in the multifamily, single-family rental, and commercial real estate markets in the United States. Stockwinners

The company operates in two segments, Structured Business and Agency Business.

It primarily invests in real estate-related bridge and mezzanine loans, including junior participating interests in first mortgages, and preferred and direct equity, as well as real estate-related joint ventures, real estate-related notes, and various mortgage-related securities.

The company offers bridge financing products to borrowers who seek short-term capital to be used in an acquisition of property; financing by making preferred equity investments in entities that directly or indirectly own real property; mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower's equity in a transaction; junior participation financing in the form of a junior participating interest in the senior debt; and financing products to borrowers who are looking to acquire conventional, workforce, and affordable single-family housing.

In addition, it underwrites, originates, sells, and services multifamily mortgage loans through conduit/commercial mortgage-backed securities programs. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Shares have recently been under accumulation by Mutual Funds and institutional investors. We expect shares to show strength going forward.

Entry Point: $18.75

Stop Loss: $17.75

Trading Range: $1106-$19.49

Target Price: $20.25

Position closed on 10/18/2021 at price of $19.65 with a 4.80% gain in 13 days.

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