Form 4: ABR Director Kenneth Bacon Receives Vested RSUs

Arbor Realty Trust Director Kenneth J. Bacon received 335 fully vested Restricted Stock Units in lieu of a dividend equivalent, deferring conversion until 2027.

Summary

• Director Kenneth J. Bacon of Arbor Realty Trust, Inc. (ABR) received 335 fully vested Restricted Stock Units (RSUs) on November 26, 2025.
• These RSUs were granted in lieu of a dividend equivalent due on Mr. Bacon's existing RSUs.
• Mr. Bacon has elected to defer the receipt of common stock from these RSUs until January 1, 2027, or sooner upon a change in control or termination of his directorship.
• The transaction was made pursuant to a Rule 10b5-1(c) pre-established plan.
• Following this transaction, Mr. Bacon beneficially owns 10,426 derivative securities (RSUs).

Sentiment

Score: 7

Explanation: The filing reports a routine grant of restricted stock units to a director as part of their compensation, indicating continued alignment of interests with shareholders. This is a neutral to slightly positive event.

Positives

• Director Kenneth J. Bacon received 335 fully vested Restricted Stock Units, indicating continued equity-based compensation.
• The deferral election until January 1, 2027, aligns the director's long-term interests with the company's performance and shareholder value.

Future Outlook

Director Kenneth J. Bacon's 335 Restricted Stock Units are scheduled for conversion into common stock on January 1, 2027, unless an earlier conversion is triggered by a change in control or the termination of his service as a director.

Management Comments

• Director Kenneth J. Bacon received 335 fully vested Restricted Stock Units in lieu of a dividend equivalent due on existing RSUs.
• Mr. Bacon has elected to defer the receipt of common stock from these RSUs until January 1, 2027, or sooner upon a change in control or termination of his service as a director, pursuant to a pre-established deferral election.

Industry Context

The grant of Restricted Stock Units to a director is a common form of non-cash compensation in the financial and real estate investment trust (REIT) sectors, designed to align the interests of directors with long-term shareholder value. The deferral of stock receipt is also a standard practice for tax planning and long-term holding strategies among executives and directors.

Comparison to Industry Standards

• The grant of Restricted Stock Units (RSUs) to directors is a widely adopted compensation practice across public companies, including REITs like Arbor Realty Trust, aligning director incentives with shareholder returns.
• The election to defer the receipt of common stock from RSUs is a common strategy employed by directors and executives for personal financial planning, including tax deferral, and demonstrates a long-term commitment to the company's equity.

Corporate Governance

Related Party Transactions

• Grant of 335 fully vested Restricted Stock Units to Director Kenneth J. Bacon, representing compensation for his service as a director.

Stakeholder Impact

• Shareholders: The grant of RSUs to a director aligns management's interests with long-term shareholder value, as the director's compensation is tied to the company's stock performance.

Next Steps

• Conversion of the 335 Restricted Stock Units into common stock on January 1, 2027, or earlier upon a change in control or termination of directorship.

Key Dates

Recommendation

This Form 4 reports a routine grant of restricted stock units to a director as part of their compensation package. Such a transaction is standard practice and does not typically provide new information that would alter an investment recommendation for Arbor Realty Trust.

Keywords

Arbor Realty Trust, ABR, Kenneth J. Bacon, Restricted Stock Units, RSUs, Director Compensation, Insider Transaction, SEC Form 4, Dividend Equivalent, Stock Deferral