Arima Real Estate SOCIMI SA (ARM) AI Stock Analysis

• Market Cap: €293.24M
• Dividend Yield: N/A
• Average Volume (3M): 9.00
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.47
• Revenue Growth: 4.98%
• EPS Growth: 41.96%
• Country: ES
• Employees: 9
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): N/A
• Shares Outstanding: 24,457,510
• 10 Day Avg. Volume: 4
• 30 Day Avg. Volume: 9
• PEG Ratio: -0.17
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 6.52
• P/FCF Ratio: 23.68
• 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): 0.99
• Revenue Forecast (FY): €18.39M

• Rating: 63 Neutral
• Price Target: €13.00 ▲(69.93% Upside)
• Action: Reiterated Date: 03/10/26
• Date: Action: Reiterated 03/10/26

The score is driven primarily by improving financial performance but tempered by inconsistent multi-year cash flows and weaker cash conversion. Technicals are supportive with a clear uptrend and positive momentum, while valuation is neutral-to-slightly expensive given the volatility and lack of dividend data.

Positive Factors

Recurring rental income

A core rental-income model generates predictable, recurring cash flows from leases and property operations. For a REIT, this provides a durable revenue base that supports debt servicing and reinvestment, while refurbishments and repositioning can sustainably lift rents and value.

Recent revenue and profit rebound

A sharp rebound in revenue and a return to profitability signal operational recovery and improved occupancy or pricing. Sustained earnings improvement enhances retained earnings, supports capital expenditure for asset upgrades, and strengthens capacity to meet long-term liabilities.

Reasonable balance-sheet support

Moderate leverage and expanded assets/equity provide financial flexibility relative to peers, enabling acquisitions or refurbishments and some shock absorption if property cash flows dip. A healthier capital base underpins longer-term operational stability and funding access.

Negative Factors

Weak cash conversion

Uneven operating cash flow and weak conversion of EBITDA to cash create structural risk: recurring earnings may not translate into liquid resources for distributions, capex or debt repayment. Reliance on financing or asset sales to cover cash needs can pressure long-term resilience.

Volatile earnings track record

A history of deep losses followed by a rebound indicates earnings are sensitive to leasing cycles, valuation changes, or one-off items. Persistent volatility hampers reliable forecasting, increases cost of capital, and can limit the company's ability to execute steady growth strategies.

Small operational scale

A very small headcount suggests limited internal capacity for asset management, leasing, and development oversight. This can restrict the firm's ability to scale, execute complex refurbishments, or respond quickly to tenant and market demands, increasing reliance on third parties.

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 SOCIMI primarily makes money by acquiring, owning, and operating real estate assets and earning recurring rental income from tenants under lease agreements. Its revenue model is centered on (1) rental income from leased space in its property portfolio and (2) asset management/operating activities that support occupancy and rent collection (e.g., property operations and tenant services as part of building management). The company can also generate earnings through (3) value creation initiatives such as refurbishments/repositioning that can support higher rents and improved occupancy, and (4) gains (or losses) from the sale of properties when it disposes of assets. Specific details on major tenant concentrations, named partnerships, or additional revenue streams beyond leasing and property disposals are null.

Arima Real Estate SOCIMI SA Financial Statement Overview

Summary

Recent results show a sharp rebound with revenue more than doubling and profitability turning positive, and leverage remains moderate for a REIT. However, prior-year deep losses and an uneven multi-year cash-flow pattern (including negative OCF/FCF in 2023–2024 and weak cash conversion vs EBITDA) reduce confidence that the turnaround is durable.

Income Statement

TTM (Trailing-Twelve-Months) results show a sharp rebound: revenue more than doubled year-over-year and profitability turned positive, with healthy gross and net margins. That said, the track record is volatile—2023–2024 included deep losses and negative operating profitability, suggesting earnings are still sensitive to valuation swings, leasing conditions, or one-off items rather than being consistently repeatable.

Balance Sheet

The balance sheet looks reasonably supported by equity, with debt-to-equity in the latest period at a moderate level for a REIT, albeit up meaningfully versus prior years as debt increased. Total assets and equity expanded, and return on equity is back to positive, but it remains low and the recent step-up in leverage reduces flexibility if property values or rental cash generation soften.

Cash Flow

Cash generation is improving with positive operating cash flow and free cash flow in the latest period, and free cash flow roughly matches net income. However, the multi-year pattern is uneven—2023 and 2024 had negative operating cash flow and negative free cash flow, and even in the latest period operating cash flow covers well under half of EBITDA, pointing to weaker cash conversion and higher reinvestment/working-capital drag than the income statement alone implies.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.19M	27.74M	12.18M	10.07M	8.07M	6.01M
Gross Profit	12.19M	22.73M	12.18M	6.59M	8.07M	4.59M
EBITDA	0.00	18.75M	-25.90M	-28.43M	-1.06M	-1.26M
Net Income	-13.08M	8.37M	-30.65M	-32.60M	10.48M	26.13M
Balance Sheet
Total Assets	415.27M	584.63M	384.13M	416.05M	464.24M	440.36M
Cash, Cash Equivalents and Short-Term Investments	9.70M	9.97M	11.49M	43.64M	71.62M	88.92M
Total Debt	134.64M	239.41M	106.65M	113.93M	122.31M	105.91M
Total Liabilities	150.61M	256.53M	121.95M	122.38M	133.29M	114.70M
Stockholders Equity	264.66M	328.09M	262.18M	293.67M	330.95M	325.67M
Cash Flow
Free Cash Flow	-11.31M	7.64M	-27.13M	-8.87M	1.93M	-52.00K
Operating Cash Flow	-11.31M	7.64M	-13.10M	-8.87M	1.99M	138.00K
Investing Cash Flow	-13.77M	17.41M	21.84M	-22.35M	-44.04M	-35.65M
Financing Cash Flow	16.37M	-29.04M	-4.38M	-13.28M	6.74M	-4.69M

Arima Real Estate SOCIMI SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 11.71, below the 50-day MA of 11.17, and below the 200-day MA of 10.17, indicating a bullish trend. The MACD of 0.31 indicates Positive momentum. The RSI at 68.93 is Neutral, neither overbought nor oversold. The STOCH value of 73.74 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
COL	74 Outperform	€3.15B	9.77	6.49%	5.64%	-16.98%	―
MRL	68 Neutral	€7.54B	8.90	8.29%	3.08%	7.09%	369.07%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
RLIA	65 Neutral	€1.55B	11.48	3.83%	4.05%	30.74%	67.62%
ARM	63 Neutral	€293.24M	21.63	-6.13%	―	4.98%	41.96%
HOME	62 Neutral	€1.71B	―	5.74%	16.56%	-19.93%	-42.19%
ISUR	58 Neutral	€306.80M	6.76	14.91%	3.93%	31.65%	46.61%