Arbor Realty Trust Targets $700 Million in Cash by First Quarter’s End

Arbor Realty Trust management is targeting about $700 million in cash by the end of the first quarter as the company manages liquidity needs, including a debt maturity in March.

The company has about $400 million on hand and expects to generate another $300 million in liquidity over the next four to five months. Arbor has suspended its common dividend to preserve cash.

Arbor plans to work through $400 million to $500 million of legacy loans each quarter, with a goal of materially lowering nonperforming exposure within four to six quarters.

Higher interest rates have reduced multifamily property values and transaction activity, contributing to more delinquencies and higher reserves. Arbor’s third-quarter results showed revenue $7.8 million above estimates and a non-GAAP loss of $0.04 per share.