NINGI Research published on Arbor Realty Trust (NYSE: ABR — $2.01 billion), a mortgage REIT focused on bridge financing. NINGI Research said Arbor “owns a toxic and worthless portfolio of mobile homes called Lexford/Empirian” and alleged the company is understating credit loss allowances. Specifically, NINGI Research highlighted that the company’s credit loss allowance for its multifamily loan portfolio has grown only $1.7 million since 2020 despite a ~$9 billion increase in its multifamily loan portfolio. NINGI Research also highlighted accounting anomalies and alleged the company hides debt off its balance sheet. NINGI Research concluded,

“Most of Arbor’s peers trade at a discount to book value. Arbor trades at 1.2x of common book value per share. We think, ABR's stock is significantly overvalued and median downside is 55%.”