These 3 Mortgage REITs Slide To New 12-Month Lows

The real estate investment trust (REIT) group that has investors most concerned about the Federal Reserve’s higher interest rates is rate-sensitive mortgage REITs (mREITs). This week, these three mREITs showed how deeply those concerns are felt as sellers overwhelmed buyers and each dropped to new 52-week lows.

Arlington Asset Investment Corp. (NYSE: AAIC) is one of the smaller publicly traded real estate investment trusts with a market capitalization of $74.3 million. With headquarters in McClean, Virginia, the company focuses on agency mortgage-backed securities, mortgage servicing right-related assets, credit investments and single-family residential properties.

The most recently reported 12-month funds from operations (FFO) shows growth of 123.5%. The FFO record over the past five years comes in at negative 32.5%.

The REIT trades a 60% discount to its book value. The company does not pay a dividend.

Dipping to below the late March 2023 low, the price continues to trade significantly below the down-trending 50-day moving average (the blue line) and the 200-day moving average (the red line).

Arbor Realty Trust Inc. (NYSE: ABR) has a market capitalization of  $1.87 billion. The Uniondale, New York-based company works with multifamily and commercial real estate projects.

Funds from operations over the most recent 12 months reported dropped by 29.7%, but the past five-year FFO shows growth of 6.5%.

This REIT trades at 80% of book value and pays a 15.07% dividend.

The REIT has dipped below its October 2022 low, and the 50-day moving average has crossed below the 200-day moving average. Note that the relative strength indicator (RSI) below the price chart shows a positive divergence between the March and April lows.

Granite Point Mortgage Trust Inc. (NYSE: GPMT) is a commercial real estate finance company that, according to its website, is focused on originating, investing in and managing “senior floating-rate commercial mortgage loans and other debt and debt-like commercial real estate investments.”

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The company has a market capitalization of $242.41 million. Now trading at 25% of its book value, Granite Point pays a dividend of 17.17%.

Granite Point’s price is hitting the new low well below the down-trending 50-day and 200-day moving averages. The relative strength indicator below the price chart appears to show a positive divergence between the two most recent lows.

Not investment advice. For educational purposes only.

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