Arbor AG真人官方ty Trust (NYSE: ABR) has successfully closed an $802 million build-to-rent loan securitization on May 30, 2025. The securitization includes $683 million of investment grade-rated notes, with Arbor retaining $119 million in subordinate interests and $41 million of investment grade notes. The structure features a $200 million senior revolving note and a two-year replenishment period. The investment grade notes have an initial weighted average spread of 2.48% over Term SOFR. The securitization is secured by a $652 million portfolio of real estate assets, primarily first mortgage construction and bridge loans. Arbor will use the proceeds to repay existing credit facilities, cover transaction expenses, and fund future loans and investments.
Arbor AG真人官方ty Trust (NYSE: ABR) ha completato con successo il 30 maggio 2025 una cartolarizzazione di prestiti build-to-rent per un valore di 802 milioni di dollari. La cartolarizzazione comprende 683 milioni di dollari in note con rating investment grade, con Arbor che mantiene 119 milioni di dollari in interessi subordinati e 41 milioni di dollari in note investment grade. La struttura prevede una nota senior revolving da 200 milioni di dollari e un periodo di reintegro di due anni. Le note investment grade hanno uno spread medio ponderato iniziale del 2,48% sopra il Term SOFR. La cartolarizzazione 猫 garantita da un portafoglio di asset immobiliari del valore di 652 milioni di dollari, principalmente prestiti ipotecari di primo grado per costruzione e prestiti ponte. Arbor utilizzer脿 i proventi per rimborsare linee di credito esistenti, coprire le spese della transazione e finanziare futuri prestiti e investimenti.
Arbor AG真人官方ty Trust (NYSE: ABR) cerr贸 con 茅xito el 30 de mayo de 2025 una titulizaci贸n de pr茅stamos build-to-rent por 802 millones de d贸lares. La titulizaci贸n incluye 683 millones de d贸lares en notas con calificaci贸n investment grade, con Arbor reteniendo 119 millones en intereses subordinados y 41 millones en notas investment grade. La estructura cuenta con una nota senior revolvente de 200 millones y un per铆odo de reposici贸n de dos a帽os. Las notas investment grade tienen un diferencial promedio ponderado inicial de 2,48% sobre el Term SOFR. La titulizaci贸n est谩 garantizada por una cartera de activos inmobiliarios por 652 millones, principalmente pr茅stamos hipotecarios de primer grado para construcci贸n y pr茅stamos puente. Arbor utilizar谩 los ingresos para pagar facilidades de cr茅dito existentes, cubrir gastos de la transacci贸n y financiar futuros pr茅stamos e inversiones.
Arbor AG真人官方ty Trust (NYSE : ABR) a cl么tur茅 avec succ猫s le 30 mai 2025 une titrisation de pr锚ts build-to-rent d鈥檜n montant de 802 millions de dollars. La titrisation comprend 683 millions de dollars de billets not茅s investment grade, Arbor conservant 119 millions de dollars d鈥檌nt茅r锚ts subordonn茅s et 41 millions de dollars de billets investment grade. La structure comprend une note senior renouvelable de 200 millions de dollars et une p茅riode de reconstitution de deux ans. Les billets investment grade pr茅sentent un 茅cart moyen pond茅r茅 initial de 2,48 % au-dessus du Term SOFR. La titrisation est garantie par un portefeuille d鈥檃ctifs immobiliers d鈥檜ne valeur de 652 millions de dollars, principalement des pr锚ts hypoth茅caires de premier rang pour construction et des pr锚ts relais. Arbor utilisera les fonds pour rembourser les facilit茅s de cr茅dit existantes, couvrir les frais de la transaction et financer de futurs pr锚ts et investissements.
Arbor AG真人官方ty Trust (NYSE: ABR) hat am 30. Mai 2025 erfolgreich eine Build-to-Rent-Darlehensverbriefung in H枚he von 802 Millionen US-Dollar abgeschlossen. Die Verbriefung umfasst 683 Millionen US-Dollar an Investment-Grade-Notes, wobei Arbor 119 Millionen US-Dollar an nachrangigen Beteiligungen und 41 Millionen US-Dollar an Investment-Grade-Notes beh盲lt. Die Struktur beinhaltet eine revolvierende Senior-Note 眉ber 200 Millionen US-Dollar und eine zweij盲hrige Auff眉llungsperiode. Die Investment-Grade-Notes haben einen anf盲nglichen gewichteten Durchschnittsspread von 2,48 % 眉ber dem Term SOFR. Die Verbriefung ist durch ein Portfolio von Immobilienverm枚gen im Wert von 652 Millionen US-Dollar besichert, haupts盲chlich durch erstklassige Bau- und Br眉ckenkredite. Arbor wird die Erl枚se zur R眉ckzahlung bestehender Kreditfazilit盲ten, zur Deckung der Transaktionskosten und zur Finanzierung zuk眉nftiger Kredite und Investitionen verwenden.
Positive
Significant securitization size of $802 million demonstrates strong market confidence
Investment grade-rated notes with favorable 2.48% spread over Term SOFR indicates competitive pricing
Two-year replenishment period provides flexibility for portfolio management
$50 million capacity for additional loan acquisitions within 180 days offers growth potential
Negative
Retention of $119 million subordinate interests ties up significant capital
Complex structure with construction loan advances may increase operational risks
Additional leverage through $200 million revolving note could increase financial risk
Insights
ABR secured $802M build-to-rent securitization with favorable terms, enhancing liquidity while creating a unique construction-stage funding vehicle.
Arbor AG真人官方ty Trust has closed an $802 million collateralized loan obligation (CLO) securitization specifically for build-to-rent properties鈥攁 noteworthy transaction with several innovative structural elements. The deal includes $683 million in investment grade-rated notes issued to investors while Arbor retained $119 million in subordinate interests plus $41 million of the investment grade notes, demonstrating significant skin in the game.
What makes this securitization particularly distinctive is its inclusion of properties in various construction stages, with a sophisticated funding mechanism where construction advances will be funded partially by the issuing entity and partially by Arbor-affiliated participation interests. The $200 million senior revolving note component ($50 million drawn at closing) provides flexibility to fund ongoing construction advances and acquire additional collateral.
The economics are favorable with investment grade notes placed at a weighted average spread of 2.48% over Term SOFR. The two-year replenishment period enables principal proceeds to be reinvested in qualifying replacement assets, creating a revolving funding structure rather than a static pool. This extends the effective financing duration and increases capital efficiency.
From a balance sheet perspective, Arbor will account for this as financing rather than a true sale, retaining the underlying assets on its books. The proceeds will repay existing credit facilities, potentially lowering the company's overall funding costs, while providing fresh capital for originating new loans. This transaction demonstrates Arbor's continued access to the securitization markets for its specialized lending products and enhances its liquidity position while diversifying funding sources.
UNIONDALE, N.Y., June 02, 2025 (GLOBE NEWSWIRE) -- Arbor AG真人官方ty Trust, Inc. (NYSE: ABR) today announced the closing of a unique build-to-rent loan securitization totaling approximately $802 million (the 鈥淪ecuritization鈥�) on May 30, 2025. An aggregate of approximately $683 million of investment grade-rated notes were issued (the 鈥淣otes鈥�) and Arbor retained subordinate interests in the issuing vehicle of approximately $119 million and approximately $41 million of the investment grade Notes. The funding structure includes approximately $50 million of capacity to acquire additional loans for a period of up to 180 days from the closing date of the Securitization.
The Securitization is unique in including loans secured by build-to-rent properties in various stages of horizontal and vertical construction. Construction loan advances will be funded, in part, by the issuing entity and, in part, by an Arbor affiliated holder of participation interests in the mortgage loans. The Securitization includes a $200 million senior revolving note, proceeds of which will be used by the issuer to fund construction and other loan advances, to acquire collateral interests on the closing date or to acquire replacement collateral assets during the replenishment period. Approximately $50 million was drawn on the revolving note at closing.
The investment grade Notes placed with investors have an initial weighted average spread of 2.48% over Term SOFR, excluding fees and transaction costs. The facility has a two year replenishment period that allows principal proceeds from repayments of the portfolio assets and the revolving note fundings to be reinvested in qualifying replacement assets, subject to certain conditions.
The offering of the investment grade-rated Notes was made pursuant to a private placement. The investment grade-rated Notes were issued under an indenture and secured initially by a portfolio of real estate related assets and cash with a face value of $652 million, with such real estate related assets consisting primarily of first mortgage construction and bridge loans.
Arbor intends to own the portfolio of real estate related assets through the vehicle until its maturity and expects to account for the Securitization on its balance sheet as a financing. Arbor will use the proceeds of this Securitization to repay borrowings under its current credit facilities, pay transaction expenses and fund future loans and investments.
Certain of the Notes were rated by Fitch Ratings, Inc. and all of the Notes were rated by DBRS, Inc.
The Notes are not registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
About Arbor AG真人官方ty Trust, Inc.
Arbor AG真人官方ty Trust, Inc. (NYSE: ABR) is a nationwide real estate investment trust and direct lender, providing loan origination and servicing for multifamily, single-family rental (SFR) portfolios, and other diverse commercial real estate assets. Headquartered in New York, Arbor manages a multibillion-dollar servicing portfolio, specializing in government-sponsored enterprise products. Arbor is a leading Fannie Mae DUS庐 lender and Freddie Mac Optigo庐 Seller/Servicer, and an approved FHA Multifamily Accelerated Processing (MAP) lender. Arbor鈥檚 product platform also includes bridge, CMBS, mezzanine and preferred equity loans. Rated by Standard and Poor鈥檚 and Fitch Ratings, Arbor is committed to building on its reputation for service, quality, and customized solutions with an unparalleled dedication to providing our clients excellence over the entire life of a loan.
Safe Harbor Statement
Certain items in this press release may constitute forward-looking statements within the meaning of the 鈥渟afe harbor鈥� provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management鈥檚 current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Arbor can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from Arbor鈥檚 expectations include, but are not limited to, changes in economic conditions generally, and the real estate markets specifically, continued ability to source new investments, changes in interest rates and/or credit spreads, and other risks detailed in Arbor鈥檚 Annual Report on Form 10-K for the year ended December 31, 2024 and its other reports filed with the SEC. Such forward-looking statements speak only as of the date of this press release. Arbor expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Arbor鈥檚 expectations with regard thereto or change in events, conditions, or circumstances on which any such statement is based.
Contact:
Arbor AG真人官方ty Trust, Inc. Investor Relations 516-506-4200 [email protected]
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FAQ
What is the size and structure of ABR's latest securitization deal?
Arbor AG真人官方ty Trust's latest securitization totals $802 million, comprising $683 million of investment grade-rated notes and $119 million in retained subordinate interests.
What is the interest rate spread on ABR's new securitization notes?
The investment grade Notes have an initial weighted average spread of 2.48% over Term SOFR, excluding fees and transaction costs.
How will Arbor AG真人官方ty Trust use the proceeds from this securitization?
Arbor will use the proceeds to repay borrowings under current credit facilities, pay transaction expenses, and fund future loans and investments.
What is the replenishment period for ABR's new securitization?
The securitization has a two-year replenishment period allowing principal proceeds to be reinvested in qualifying replacement assets.
How much additional loan capacity does ABR's new securitization provide?
The securitization includes approximately $50 million of capacity to acquire additional loans for up to 180 days from the closing date.
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