American Realty Investors, Inc. (ARL)
American Realty Investors, Inc. focuses on acquiring, developing, and owning multifamily apartment communities and commercial real estate properties. As of December 31, 2021, the company's portfolio included numerous apartment communities, commercial properties, and undeveloped land primarily in the southwestern, southeastern, and mid-western United States.
Company Overview
American Realty Investors (ARL) offers investors exposure to a diversified portfolio of multifamily and commercial real estate assets across the US Sun Belt and Midwest, focusing on strategic acquisitions and development to drive long-term value, despite current market challenges and zero employees.
Investment Thesis
American Realty Investors presents a mixed investment case. With a P/E ratio of 49.07 and a profit margin of 11.7%, the company shows profitability, but the high P/E suggests it may be overvalued relative to its earnings. The company's beta of 0.69 indicates lower volatility compared to the market, which may appeal to risk-averse investors. ARL's diversified portfolio of multifamily and commercial properties offers stability. However, the absence of a dividend may deter income-seeking investors. Key value drivers include strategic property acquisitions and development, particularly in high-growth regions. Upcoming catalysts include potential property sales and increased occupancy rates in existing properties. Investors should monitor the company's ability to manage its debt and capitalize on market opportunities.
Key Highlights
- Market capitalization of $0.28 billion indicates a small-cap company.
- P/E ratio of 49.07 suggests the stock may be overvalued compared to its earnings.
- Profit margin of 11.7% demonstrates the company's ability to generate profit from its revenue.
- Gross margin of 45.2% reflects efficient cost management in property operations.
- Beta of 0.69 indicates lower volatility compared to the overall market.
Competitors
Strengths
- Diversified portfolio of multifamily and commercial properties.
- Geographic presence in growing regions of the US.
- Ownership of significant land holdings for future development.
- Established history in the real estate market since 1999.
Weaknesses
- High P/E ratio may indicate overvaluation.
- Absence of dividend may deter income investors.
- Reliance on rental income and property sales.
- Zero employees.
Catalysts
- Upcoming: Potential property sales generating capital gains.
- Ongoing: Increased occupancy rates boosting rental income.
- Ongoing: Strategic acquisitions expanding the portfolio.
- Ongoing: Development of existing land holdings creating new revenue streams.
Risks
- Potential: Economic downturns reducing property values and rental income.
- Potential: Rising interest rates increasing borrowing costs.
- Ongoing: Competition from other REITs and real estate developers.
- Potential: Changes in government regulations impacting the real estate industry.
- Ongoing: Dependence on real estate market cycles.
Growth Opportunities
- Strategic Acquisitions: ARL can expand its portfolio through strategic acquisitions of undervalued or distressed properties in high-growth markets. By targeting properties with potential for value appreciation, ARL can increase its rental income and capital gains. The market for distressed properties is estimated to be worth billions of dollars, providing ample opportunities for ARL to grow its asset base. Timeline: Ongoing.
- Property Development: ARL can develop its existing land holdings into new multifamily apartment communities or commercial properties. By developing properties in areas with high demand, ARL can increase its rental income and property values. The market for new construction is estimated to be worth hundreds of billions of dollars annually. Timeline: Ongoing.
- Increased Occupancy Rates: ARL can increase its revenue by improving occupancy rates in its existing properties. By implementing effective marketing and property management strategies, ARL can attract and retain tenants, leading to higher rental income. A 1% increase in occupancy rates could translate to a significant increase in revenue. Timeline: Ongoing.
- Renovation and Upgrades: ARL can increase the value of its properties by renovating and upgrading existing units. By investing in modern amenities and energy-efficient features, ARL can attract higher-paying tenants and increase rental income. The market for property renovations is estimated to be worth billions of dollars annually. Timeline: Ongoing.
- Geographic Expansion: ARL can expand its operations into new geographic markets. By targeting regions with strong economic growth and favorable demographic trends, ARL can diversify its portfolio and reduce its exposure to regional economic downturns. The market for real estate investment is global, providing ample opportunities for ARL to expand its reach. Timeline: Ongoing.
Opportunities
- Strategic acquisitions of undervalued properties.
- Development of existing land holdings.
- Increased occupancy rates in existing properties.
- Expansion into new geographic markets.
Threats
- Economic downturns affecting property values and rental income.
- Rising interest rates increasing borrowing costs.
- Increased competition from other REITs and real estate developers.
- Changes in government regulations affecting the real estate industry.
Competitive Advantages
- Geographic diversification across the southwestern, southeastern, and mid-western United States.
- Ownership of a mix of multifamily and commercial properties.
- Control of 1,886 acres of developed and undeveloped land.
- Established presence in key regional markets.
About
American Realty Investors, Inc. (ARL) was founded in 1999 and is headquartered in Dallas, Texas. The company operates as a real estate investment firm, concentrating on the acquisition, development, and ownership of multifamily apartment communities and commercial real estate properties. ARL's portfolio is geographically diversified across the southwestern, southeastern, and mid-western United States. The company generates revenue through leasing apartment units to residents and commercial spaces to businesses and government agencies, as well as through the sale of land and properties. As of December 31, 2021, ARL's holdings included five commercial properties (four office buildings and one retail property), nine multifamily apartment communities with 1,492 units, and an additional fifty-two multifamily apartment communities totaling 10,281 units. Furthermore, ARL owns or controls 1,886 acres of developed and undeveloped land, providing potential for future development and value appreciation. The company's strategic focus on diverse real estate assets positions it to capitalize on regional economic trends and demographic shifts. ARL's business model centers on generating income through property rentals and capital gains through strategic property sales.
What They Do
- Acquires multifamily apartment communities.
- Develops multifamily apartment communities.
- Owns multifamily apartment communities.
- Acquires commercial real estate properties.
- Develops commercial real estate properties.
- Owns commercial real estate properties.
- Leases apartment units to residents.
- Leases commercial space to businesses and government agencies.
Business Model
- Generates revenue through rental income from apartment units.
- Generates revenue through rental income from commercial properties.
- Generates revenue through the sale of land and properties.
- Focuses on acquiring and developing properties in the southwestern, southeastern, and mid-western United States.
Industry Context
American Realty Investors operates within the real estate development industry, which is influenced by macroeconomic factors such as interest rates, employment rates, and population growth. The industry is currently experiencing increased demand for multifamily housing due to urbanization and changing demographics. ARL competes with other REITs and real estate developers for property acquisitions and tenants. Competitors include companies like ACRE, BRT, DOUG, MDV, and MLP. The industry is characterized by high capital requirements and cyclical fluctuations in property values. ARL's focus on the southwestern, southeastern, and mid-western United States positions it to benefit from regional economic growth and demographic trends.
Key Customers
- Residents of multifamily apartment communities.
- For-profit businesses leasing commercial space.
- Local, state, and federal agencies leasing commercial space.
Financials
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $13M | $129,000 | $0.01 |
| Q2 2025 | $12M | $3M | $0.18 |
| Q1 2025 | $12M | $3M | $0.18 |
| Q4 2024 | $12M | $-161,000 | $-0.01 |
Source: Company filings
Chart & Info
Price Chart
American Realty Investors, Inc. (ARL) stock price: $17.15 (+0.00, +0.00%)
Why Bull
- •Recent insider buying suggests confidence in ARL's future growth, indicating that those closest to the company believe in its potential.
- •Community sentiment has shifted positively, with discussions highlighting ARL's innovative projects and their potential market impact.
- •Analysts have noted strong demand for ARL's products, reflecting a solid customer base that could drive future revenue.
- •Recent partnerships have been announced, enhancing ARL's market position and expanding its reach in key sectors.
Why Bear
- •There has been some negative sentiment in the community regarding ARL's recent operational challenges, raising concerns about execution risks.
- •Insider selling has been observed, which could signal a lack of confidence among executives about the company's short-term prospects.
- •Market perception remains cautious due to competitive pressures, with some analysts questioning ARL's ability to maintain its market share.
- •Recent regulatory changes could impose additional challenges for ARL, creating uncertainty around its operational strategy moving forward.
Latest News
-
Financial Analysis: FirstService (NASDAQ:FSV) versus American Realty Investors (NYSE:ARL)
defenseworld.net · Feb 6, 2026
-
Investing in American Realty Investors (NYSE:ARL) five years ago would have delivered you a 78% gain
Yahoo! Finance: ARL News · Feb 3, 2026
-
Investing in American Realty Investors (NYSE:ARL) five years ago would have delivered you a 78% gain
Simply Wall St. · Feb 3, 2026
-
Corporacion Inmobiliaria Vesta (NYSE:VTMX) and American Realty Investors (NYSE:ARL) Financial Comparison
defenseworld.net · Jan 20, 2026
Technical Analysis
Rationale
AI-generated technical analysis for ARL including trend direction, momentum, and pattern recognition.
What to Watch
Key support and resistance levels, volume signals, and upcoming events.
Risk Management
Position sizing, stop-loss levels, and risk-reward assessment.
Community
Discussion
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Sentiment
Community sentiment and discussion activity for ARL.
Make a Prediction
Set your price target for American Realty Investors, Inc. (ARL), choose a timeframe, and track your prediction accuracy.
Current price: $17.15
Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for ARL.
Price Targets
Wall Street price target analysis for ARL.
Insider Flow (30d)
No insider trades in the last 30 days.
MoonshotScore
Score Factors
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Revenue Growth 5/100
Revenue growth data is currently unavailable for this company.
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Gross Margin 8/100
Gross margin at 45.2% indicates good unit economics and healthy profitability per sale.
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Operating Leverage 4/100
Limited operating leverage due to slower revenue growth, keeping profit scaling constrained.
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Cash Runway 5/100
Cash position data is currently unavailable for this company.
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R&D Intensity 5/100
R&D spending data is currently unavailable for this company.
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Insider Activity 6/100
No significant insider buying or selling recently, which is neutral for the stock outlook.
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Short Interest 5/100
Float and volume data unavailable for liquidity analysis.
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Price Momentum 0/100
No bullish technical signals detected. The stock lacks upward price momentum currently.
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News Sentiment 5/100
No sentiment data available
What does this score mean?
The MoonshotScore rates ARL's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Competitors & Peers
Latest News
Financial Analysis: FirstService (NASDAQ:FSV) versus American Realty Investors (NYSE:ARL)
Investing in American Realty Investors (NYSE:ARL) five years ago would have delivered you a 78% gain
Investing in American Realty Investors (NYSE:ARL) five years ago would have delivered you a 78% gain
Corporacion Inmobiliaria Vesta (NYSE:VTMX) and American Realty Investors (NYSE:ARL) Financial Comparison
Frequently Asked Questions
What does American Realty Investors, Inc. do?
American Realty Investors, Inc. (ARL) is a real estate investment firm that acquires, develops, and owns multifamily apartment communities and commercial real estate properties. The company generates revenue primarily through leasing apartment units to residents and commercial spaces to businesses and government agencies. ARL's portfolio is geographically diversified across the southwestern, southeastern, and mid-western United States. The company also sells land and properties, contributing to its revenue stream. ARL's strategic focus on diverse real estate assets positions it to capitalize on regional economic trends and demographic shifts, aiming to deliver long-term value to its shareholders.
Is ARL stock a good buy?
ARL's stock presents a nuanced investment opportunity. The company's P/E ratio of 49.07 suggests it may be overvalued relative to its earnings, while its profit margin of 11.7% indicates profitability. The absence of a dividend may deter income-seeking investors. However, ARL's diversified portfolio of multifamily and commercial properties offers stability, and its beta of 0.69 indicates lower volatility compared to the market. Potential catalysts include strategic property acquisitions, development projects, and increased occupancy rates. Investors should carefully consider their risk tolerance and investment objectives before investing in ARL.
What are the main risks for ARL?
ARL faces several risks inherent to the real estate industry. Economic downturns could reduce property values and rental income, impacting the company's profitability. Rising interest rates could increase borrowing costs, making it more expensive to finance acquisitions and developments. Increased competition from other REITs and real estate developers could put pressure on rental rates and occupancy rates. Changes in government regulations affecting the real estate industry could also pose a risk. Additionally, ARL's dependence on real estate market cycles makes it vulnerable to cyclical fluctuations in property values and demand.
Is ARL a good stock to buy?
Whether ARL is a good investment depends on your financial goals, risk tolerance, and investment horizon. Review the Investment Thesis, SWOT analysis, and Risk sections on this page. Always do your own research and consult a financial advisor before investing.
What is the ARL MoonshotScore?
MoonshotScore is our proprietary AI-powered rating system that evaluates stocks based on growth potential, financial health, market momentum, and risk factors. It helps investors quickly identify high-potential opportunities. Check the MoonshotScore badge on this page for the current rating.
How often is ARL data updated?
Stock prices are updated in real-time during market hours (9:30 AM - 4:00 PM ET). Company fundamentals, analyst ratings, and AI insights are refreshed daily. News is updated continuously throughout the day.
What are the growth catalysts for ARL?
Growth catalysts vary by company and may include new product launches, market expansion, earnings surprises, partnerships, or industry tailwinds. Check the Catalysts section on this page for specific drivers relevant to American Realty Investors, Inc..
Who are ARL's main competitors?
American Realty Investors, Inc.'s competitors depend on its industry and market segments. Check the Competitors section on this page for a list of direct competitors and how ARL compares.
What do analysts say about ARL?
Analyst ratings and price targets for ARL are aggregated from multiple sources. Check the Analyst Consensus tab for buy/hold/sell ratings and the current consensus price target.
What is ARL's market cap?
Market capitalization reflects the total market value of ARL's outstanding shares. Check the Key Statistics section at the top of this page for the current market cap and other key financial metrics.
How has ARL stock performed recently?
Check the Chart & Info tab for ARL's recent price action, including daily, weekly, and monthly performance charts with technical indicators.
What are the risks of investing in ARL?
Every stock carries risk. Check the Risks and Weaknesses sections on this page for ARL-specific risk factors. Consider macroeconomic conditions, industry trends, and company-specific challenges.
Are insiders buying or selling ARL?
Insider activity can signal management confidence. Check the Insider Flow tab for recent insider buys, sells, and exercise transactions for ARL.
Is ARL a good stock for beginners?
American Realty Investors, Inc. (ARL) can be suitable for beginner investors depending on several factors. Look at the MoonshotScore on this page for an overall AI-powered assessment of growth potential and risk. Beginners should also check the company's market cap (larger companies tend to be less volatile), gross margin (higher margins mean stronger business fundamentals), and cash position (healthy cash reduces bankruptcy risk). Always start with a small position size and never invest money you cannot afford to lose.
How risky is ARL for first-time investors?
Every stock carries risk, including American Realty Investors, Inc. (ARL). First-time investors should review the Risk Factors section on this page for company-specific risks. Key risk indicators include price volatility (check the chart for daily swings), insider selling activity (see Insider Flow tab), and cash runway (see MoonshotScore breakdown). A diversified portfolio with an index fund like the S&P 500 as a core holding is generally recommended before adding individual stocks like ARL.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Data provided for informational purposes only.
- Financial data is based on the most recent available information as of December 31, 2021.
- Stock data pending update.