This week I’m seeking a prestigious and long-term dividend-paying stock from the real estate business sector.Â
That real estate sector includes nine industries all related to real property ownership. The industries are: general real estate; Real estate services; and seven varieties of real estate investment trusts: diversified, healthcare facilities, hotel & motel, industrial, office, residential, and retail.
Today I’m reviewing a small-cap real estate investment trust – diversified, named Arbor Realty Trust Inc. Its trading ticker symbol is ABR.Â
Arbor Realty Trust Inc is a real estate specialty finance firm.Â
It invests in a diversified portfolio of structured finance assets in the multi-family and commercial real estate markets.Â
It also invests in real estate-related bridge and mezzanine loans.
It operates in two segments, Structured Business and Agency Business.Â
The company qualifies as a real estate investment trust for federal income tax purposes.Â
It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders.Â
The company was founded in 2003 and is headquartered in Uniondale, New York.Â
I use three key data points to gauge the value of any dividend equity or fund like Arbor Realty Trust Inc.:Â
(1) Price
(2) Dividends
(3) Returns
Besides those three, four more keys will finally unlock an equity or fund in which to invest.
But those first three primary keys, best tell whether a company has made, is making, and will make money.Â
ABR Price
Arbor’s price per share was $11.75 at Friday’s market close. A year ago its price was $8.26 for a price increase of $3.49 per share for the year, that’s 42% upside!Â
Assuming Arbor’s price will trade in the range of $7 to $17 next year, Arbor’s recent $11.75 price could improve by $5.00 to $16.75 by late-October, 2019.Â