The REIT reduced its quarterly payout to 17 cents from 30 cents, while premarket shares fell 11% to $7.28.
First-quarter profit dropped to $629,000, or 0 cents a share, from $30.4 million, or 16 cents, a year earlier; distributable earnings fell to 7 cents from 28 cents.
Net interest income declined to $59.8 million from $75.4 million. The new annualised dividend is 68 cents, yielding about 8.3%, and is payable on 5 June.
Is Arbor Realty's new 8.3% yield a lucrative opportunity or a dangerous value trap for income investors?
With its earnings collapsing, how can Arbor Realty survive the brutal commercial real estate market?
Is Arbor's crisis a company-specific issue or a dire warning for the entire mREIT sector?