Arima Real Estate SOCIMI SA (ARM) AI Stock Analysis

• Market Cap: €198.56M
• Dividend Yield: N/A
• Average Volume (3M): 32.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.49
• Revenue Growth: 4.98%
• EPS Growth: 41.96%
• Country: ES
• Employees: 9
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -1.18
• Shares Outstanding: 25,982,940
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 32
• 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: €7.50
• Price Target Upside: -1.96% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: €7.50 ▼(-1.96% Downside)

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.

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, developing, and managing commercial properties. The company primarily operates in the office and retail sectors, with a portfolio that includes high-quality, strategically located assets across major urban areas in Spain. Arima's business model leverages its expertise in property management and market insights to maximize value for its shareholders.

How the Company Makes Money

Arima Real Estate SOCIMI SA generates revenue primarily through the leasing of its commercial properties, which include office spaces and retail outlets. The company earns rental income from tenants who occupy these properties under long-term lease agreements. Additionally, Arima may engage in property development projects that can generate profits through the sale or leasing of newly developed spaces. The company's earnings are also influenced by strategic partnerships with other real estate developers and investors, which can lead to joint ventures and collaborative projects that enhance its revenue streams. As a SOCIMI, Arima benefits from certain tax advantages under Spanish law, which can also contribute positively to its overall financial performance.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.18M	10.07M	8.07M	6.01M	6.14M
Gross Profit	12.18M	6.59M	8.07M	4.59M	4.71M
EBITDA	-25.90M	-28.43M	-1.06M	-1.26M	-1.31M
Net Income	-30.65M	-32.60M	10.48M	26.13M	13.09M
Balance Sheet
Total Assets	384.13M	416.05M	464.24M	440.36M	414.57M
Cash, Cash Equivalents and Short-Term Investments	11.49M	43.64M	71.62M	88.92M	129.22M
Total Debt	106.65M	113.93M	122.31M	105.91M	105.14M
Total Liabilities	121.95M	122.38M	133.29M	114.70M	112.72M
Stockholders Equity	262.18M	293.67M	330.95M	325.67M	301.85M
Cash Flow
Free Cash Flow	-27.13M	-8.87M	1.93M	-52.00K	-7.73M
Operating Cash Flow	-13.10M	-8.87M	1.99M	138.00K	-7.49M
Investing Cash Flow	21.84M	-22.35M	-44.04M	-35.65M	-38.87M
Financing Cash Flow	-4.38M	-13.28M	6.74M	-4.69M	21.48M

Arima Real Estate SOCIMI SA Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:ARM, the sentiment is Negative. The current price of 7.65 is below the 20-day moving average (MA) of 7.65, below the 50-day MA of 7.65, and below the 200-day MA of 7.75, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 51.87 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	75 Outperform	€3.46B	7.20	8.84%	5.37%	-16.98%	―
MRL	75 Outperform	$7.65B	11.53	9.06%	2.74%	7.19%	470.92%
ISUR	73 Outperform	€258.45M	12.55	10.13%	3.96%	31.65%	46.61%
RLIA	70 Outperform	€1.43B	12.51	3.83%	4.25%	30.74%	67.62%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
HOME	61 Neutral	€1.52B	22.74	5.74%	18.10%	-19.93%	-42.19%
ARM	50 Neutral	€198.56M	―	-6.13%	―	4.98%	41.96%

Arima Real Estate SOCIMI SA Corporate Events

Árima Real Estate Announces 2025 Shareholders Meeting

Árima Real Estate SOCIMI, S.A. has announced the convening of its Ordinary General Meeting of Shareholders, set to take place on June 30, 2025, in Madrid. The agenda includes the approval of annual accounts, management reports, and the ratification of directors, among other items. This meeting is crucial for stakeholders as it will address key governance and financial decisions impacting the company’s future operations and strategic direction.

Arima Real Estate Announces Leadership Changes

Arima Real Estate SOCIMI SA has announced a series of leadership changes within its Board of Directors. José María Rodríguez-Ponga Linares has been appointed as CEO while maintaining his role as Chairman, and other key appointments include José Carlos Velasco Sánchez as coordinating director, María Virginia Villanueva Rosa to the Appointments and Remuneration Committee, and Belén Ríos Calvo to the Audit and Control Committee. These changes are expected to strengthen the company’s governance and strategic direction.