dividend slashed 43% as balance sheet stress mounts
ABR is a sell after its dividend reset to 17 cents from 30 cents, because management’s plan for recovery doesn’t look credible given a worsening balance-sheet situation, multifamily loan stress, and rising delinquency rates.
ABR's dividend reset from 30 cents to 17 cents is accompanied by a worsening balance sheet, rising multifamily loan delinquency rates, and a recovery plan management cannot credibly support. Declining distributable earnings alongside multifamily loan stress makes the bear case structural rather than cyclical.
"I Just Had My Worst Week Ever as a High Yield Dividend Investor"