Analysis of High-Yield Mortgage REITs Highlighted by Benzinga (RC, TWO, ABR)

This analysis is based on a Benzinga article [1] highlighting three mortgage REITs with dividend yields over 13%: Ready Capital (RC:19.69%), Two Harbors (TWO:13.32%), and Arbor Realty (ABR:13.29%). On Nov 28,2025, all three outperformed the Real Estate sector (0.325% gain): RC (+0.79%), TWO (+1.64%), ABR (+1.29%) [0]. Their 5-day gains were strong: RC (+8.09%), TWO (+7.81%), ABR (+8.01%) [0]. Financial metrics reveal mixed fundamentals: RC and TWO have negative P/E (-1.18x/-5.29x) and ROE (-25.41%/-10.15%), while ABR shows positive profitability (P/E:9.52x, ROE:6.12%, margin:49.85%) [0]. The Real Estate sector ranked 5th among 11 sectors [0].

Cross-domain connections: Mortgage REITs are sensitive to interest rates, contributing to YTD declines (RC:-63.08%, TWO:-14.85%, ABR:-34.47%) [0]. Deeper implications: High yields attract income investors, but RC/TWO’s negative earnings suggest dividend cuts risk; ABR’s positive metrics offer stability. Analyst consensus: RC (Buy), TWO/ABR (Hold) [0].

: RC’s negative margin (-125.06%) and ROE indicate dividend risk; TWO’s negative earnings raise sustainability concerns; interest rate hikes may pressure all three [0].
: ABR’s positive financials appeal to risk-averse investors; short-term gains reflect market interest in high-yield assets [0].
: Investors should note RC/TWO’s dividend sustainability risks, as negative metrics correlate with historical cuts [0].

• Three REITs have yields >13% (Benzinga [1]).
• RC/TWO have negative earnings; ABR positive [0].
• Short-term gains contrast long-term declines [0].
• Mixed analyst consensus: RC (Buy), TWO/ABR (Hold) [0].
• Monitor: Dividends, interest rates, earnings [0].