Shorts Keep Attacking ABR, One of My Favorites- And Failing Miserably

For more than a year, one of my favorite high yielding dividend stocks has been under constant attack by both equity research groups and short sellers. Since mid to late 2022, Arbor Realty Trust has been on a non-stop roller coaster ride, as this company has been under a lot of scrutiny. A decent number of people have been betting on a collapse of both the industry they operate in and Arbor Realty’s stock. And as an investor in this company, it’s been a rather uncomfortable experience. So in this video we’re gonna go deeper into why people have been predicting doom for this company, how they’ve been wrong up to this point, and why I’m not panic selling.

The panic surrounding Arbor Realty Trust has to do with the core of their business. This company provides several different services, but the core of their business is providing loan originations and loan servicing. Arbor Realty has two business segments, which are their structured business and their agency business. Their structured business segment provides a variety of different loans, most of which are bridge loans, but they also provide preferred equity and mezzanine loans. Bridge loans are short-term loans that are used until a person or company secures permanent financing or pays an existing obligation. These loans are usually very short term and come with very high interest rates.

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