Arbor Realty Shares Fall After Dividend Suspended

Dow Jones10-30

Shares of Arbor Realty Trust were lower after the company swung to a loss and suspended its dividend to pay off debt.

The stock sank 28% to $2.19 on Friday. Shares have lost 72% of their value this year.

The mortgage real estate investment trust said it had a loss of $85.4 million, or 51 cents a share, in the latest quarter, compared with a profit of $38.5 million, or 20 cents a share, during the same period a year ago.

Revenue slid 24% to $56.4 million.

Arbor said it was suspending its quarterly dividend, effective immediately, because it is focusing on preserving capital to address upcoming debt maturities and support the resolution of legacy assets.

The balance of debt that finances Arbor's loan and investment portfolio as of the end of September was $10.75 billion, up from $10.48 billion at the end of June.

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