On May 15, 2026, Arbor Realty Trust, Inc. (NYSE: ABR) successfully executed a significant financial maneuver by redeeming, in full and at par, $787.0 million of outstanding notes from the Company’s legacy collateralized loan obligation (CLO) 17. This strategic decision marks a pivotal moment in Arbor's ongoing efforts to optimize its financial structure and enhance overall liquidity.

2. Transferring Assets for Improved Terms

In conjunction with the redemption of CLO 17, Arbor Realty Trust transferred approximately $1.21 billion of assets into two existing repurchase facilities with JPMorgan Chase Bank, N.A. These repurchase facilities not only provide much more favorable pricing compared to the legacy CLO but also enable Arbor to achieve significantly improved leverage ratios.

Before the redemption, the leverage was approximately 68%, but following this transaction, Arbor has elevated its leverage to around 76%. This enhancement in leverage plays a critical role in increasing the efficiency of Arbor’s capital structure, ultimately benefiting its investment strategy.

3. Increase in Liquidity and Returns

The successful redemption and asset transfer have resulted in the creation of approximately $132.3 million of additional liquidity for Arbor Realty Trust. This substantial boost in liquidity is essential for the company as it positions itself to capitalize on new investment opportunities in the multifamily and commercial real estate sectors.

Moreover, the transaction has also been designed to increase returns on these assets through both enhanced leverage and reduced pricing. By lowering financing costs while simultaneously increasing the amount of capital available, Arbor Realty Trust is poised to improve its profitability and operational flexibility in a competitive market.

4. About Arbor Realty Trust, Inc.

Arbor Realty Trust, Inc. stands as a prominent player in the real estate investment trust sector, specializing in loan origination and servicing for a diverse range of real estate assets including multifamily and single-family rental portfolios. With headquarters in New York, the company manages a multibillion-dollar servicing portfolio and is recognized as a leading lender for government-sponsored enterprise products.

Arbor Realty Trust's product offerings encompass a wide array of financial solutions, including bridge loans, commercial mortgage-backed securities (CMBS), mezzanine financing, and preferred equity loans. The firm is committed to delivering exceptional service and customized solutions tailored to meet the unique needs of its clients.

5. Conclusion

Arbor Realty Trust’s redemption of CLO 17 and the subsequent asset transfer represents a strategic initiative aimed at boosting liquidity, enhancing leverage, and ultimately increasing returns on investments. As the company continues to adapt to the evolving real estate market, this financial maneuver positions Arbor Realty Trust to remain competitive and agile, ready to seize new opportunities as they arise.

Original press release