Arima Real Estate SOCIMI SA (ARM) AI Stock Analysis

• Market Cap: €266.85M
• Dividend Yield: N/A
• Average Volume (3M): 9.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.50
• Revenue Growth: 4.98%
• EPS Growth: 41.96%
• Country: US
• Employees: 9
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -1.18
• Shares Outstanding: 31,794,765
• 10 Day Avg. Volume: 4
• 30 Day Avg. Volume: 9
• PEG Ratio: 1.41
• Price to Book (P/B): 0.80
• Price to Sales (P/S): 17.22
• P/FCF Ratio: -7.73
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.53
• Revenue Forecast (FY): €15.33M

• Rating: 50 Neutral
• Price Target: €8.50 ▲(11.11% Upside)

The overall stock score is primarily impacted by financial performance challenges, including declining profitability and cash flow issues. Technical analysis provides a neutral outlook, while poor valuation metrics further weigh down the score. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Stable rental income model

A REIT model based on leasing and long-term leases creates a durable, contractually backed revenue base. This structural cash flow predictability supports long-term asset management, portfolio reinvestment and potential distributions, reducing reliance on volatile transactional income.

Portfolio diversification across property types

Exposure across offices, logistics and residential provides multiple demand drivers and reduces concentration risk. Structural diversification helps smooth income across cycles, allowing asset reallocation and active management to capture secular trends like logistics demand and mixed-use optimization.

Consistent revenue growth

Sustained top-line expansion over years indicates successful leasing, acquisitions or development activity that scales rent roll. Persistent revenue growth enhances ability to amortize fixed costs, improves operating leverage potential and supports longer-term value creation if margins recover.

Negative Factors

Sharp decline to net losses

A substantial net loss erodes retained capital and undermines internal funding capacity for maintenance, development or distributions. Persisting losses can force equity raises or asset disposals, impairing strategic flexibility and increasing cost of capital over the medium term.

Negative operating and free cash flow

Negative operating cash flow and collapsing free cash flow create persistent liquidity pressure, forcing reliance on external financing. Over months this raises refinancing risk, limits capital expenditure and development activity, and can necessitate asset sales that impair strategic positioning.

Weakening equity and rising leverage risk

Declining equity alongside stable or rising net debt increases leverage, reducing balance-sheet resilience. Higher leverage limits capacity to pursue opportunistic acquisitions, raises interest vulnerability and can force deleveraging under stress, constraining long-term growth and asset management plans.

Arima Real Estate SOCIMI SA Business Overview & Revenue Model

Company Description

Arima Real Estate SOCIMI SA (ARM) is a Spanish real estate investment trust (REIT) focused on acquiring, managing, and developing income-generating properties in the Spanish market. The company primarily operates in the commercial real estate sector, with a portfolio that includes office buildings, logistics centers, and residential properties. Arima aims to create value through strategic investments and active asset management, leveraging its expertise in real estate to maximize returns for its shareholders.

How the Company Makes Money

Arima Real Estate generates revenue primarily through leasing its properties to tenants, which provides a steady stream of rental income. The company benefits from long-term lease agreements that ensure stable cash flow. Additionally, Arima may realize capital gains from the sale of properties that have appreciated in value. The company also engages in property development, which can lead to increased revenues once new properties are leased. Key partnerships with local property management firms and real estate brokers enhance its market reach and operational efficiency, contributing positively to its earnings.

Arima Real Estate SOCIMI SA Financial Statement Overview

Summary

Despite revenue growth, the company faces declining profitability and cash flow challenges. The balance sheet shows stable but slightly deteriorating capital with increasing leverage risks. Overall, financial health is weakened by negative cash flows and net losses.

Income Statement

The company's revenue has shown growth over the years, rising from €5.74 million in 2019 to €12.18 million in 2024. However, the EBIT and net income have significantly declined, with the company reporting negative figures in recent years, particularly a net loss of €30.65 million in 2024. This indicates a challenging profitability environment despite revenue growth, affecting overall profitability metrics such as EBIT and net profit margins.

Balance Sheet

The company's debt-to-equity ratio remains relatively stable, with total debt slightly decreasing over the years. However, stockholders' equity has also decreased, notably from 2023 to 2024. The equity ratio indicates a strong capital structure relative to assets, but the reduction in equity and increasing net debt could pose risks if the trend continues. The company maintains a reasonable asset base, though some volatility in cash reserves has been noted.

Cash Flow

The operating cash flow is negative in recent years, reflecting operational challenges. Free cash flow has deteriorated significantly, with large negative figures in 2024. The operating cash flow to net income ratio is poor, indicating cash flow problems relative to net income. The free cash flow trend indicates liquidity concerns and potential funding challenges if the current trajectory persists.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.19M	12.18M	10.07M	8.07M	6.01M	6.14M
Gross Profit	12.19M	12.18M	6.59M	8.07M	4.59M	4.71M
EBITDA	0.00	-25.90M	-28.43M	-1.06M	-1.26M	14.16M
Net Income	-13.08M	-30.65M	-32.60M	10.48M	26.13M	13.09M
Balance Sheet
Total Assets	415.27M	384.13M	416.05M	464.24M	440.36M	414.57M
Cash, Cash Equivalents and Short-Term Investments	9.70M	11.49M	43.64M	71.62M	88.92M	129.22M
Total Debt	134.64M	106.65M	113.93M	122.31M	105.91M	105.14M
Total Liabilities	150.61M	121.95M	122.38M	133.29M	114.70M	112.72M
Stockholders Equity	264.66M	262.18M	293.67M	330.95M	325.67M	301.85M
Cash Flow
Free Cash Flow	-11.31M	-27.13M	-8.87M	1.93M	-52.00K	-7.73M
Operating Cash Flow	-11.31M	-13.10M	-8.87M	1.99M	138.00K	-7.49M
Investing Cash Flow	-13.77M	21.84M	-22.35M	-44.04M	-35.65M	-38.87M
Financing Cash Flow	16.37M	-4.38M	-13.28M	6.74M	-4.69M	21.48M

Arima Real Estate SOCIMI SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:ARM, the sentiment is Positive. The current price of 7.65 is below the 20-day moving average (MA) of 8.10, below the 50-day MA of 7.68, and below the 200-day MA of 7.65, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 60.20 is Neutral, neither overbought nor oversold. The STOCH value of 65.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:ARM.

Arima Real Estate SOCIMI SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ISUR	74 Outperform	€271.47M	13.45	10.13%	3.93%	31.65%	46.61%
COL	74 Outperform	€3.14B	6.49	8.84%	5.64%	-16.98%	―
MRL	65 Neutral	$6.87B	10.74	8.09%	3.08%	7.09%	369.07%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
RLIA	65 Neutral	€1.53B	13.60	3.83%	4.05%	30.74%	67.62%
HOME	62 Neutral	€1.89B	25.62	5.74%	16.56%	-19.93%	-42.19%
ARM	50 Neutral	€266.85M	-12.98	-6.13%	―	4.98%	41.96%