Operational cash flow remains inconsistent, evidenced by a zero-dollar contribution in 2026Q1 despite the company reporting $3.1 million in FFO for the same period.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 |
|---|
| Cash from Operations | 1.85M | -5.55M | 1.09M | -31.05M | -45.39M | -11.52M | 3.5M | -40.64M | -172.33M | -37.34M | 17.45M | -34.51M | -37.97M | -42.16M | -23.11M | 23.55M | -9.63M | -25.85M | 24.14M | -23.51M | -21.05M | -8.97M | -40.75M | -15.76M | -52.69M | -48.61M | -54.64M |
| Operating CF Growth % | -340.94% | -609.92% | 103.51% | 31.58% | -293.87% | -429.42% | 108.61% | 76.42% | -361.46% | -314.06% | 150.55% | 9.11% | 9.95% | -82.43% | -198.12% | 344.66% | 62.76% | -207.08% | 202.68% | -11.68% | -134.68% | 77.98% | -158.64% | 70.1% | -8.4% | 11.04% | - |
| Operating CF / Revenue % | 3.68% | -11.1% | 2.3% | -61.49% | -120.89% | -27.41% | 5.93% | -68.9% | -142.47% | -29.59% | 14.58% | -33.12% | -47.81% | -52.21% | -28.24% | 19.9% | -6.13% | -15.97% | 13.61% | -13.88% | -14.27% | -7.28% | -11.24% | -5.9% | -20.74% | -23.27% | -14.97% |
| Net Income | 12.19M | -2.84M | -13.44M | 3.97M | 475.32M | 6.45M | 11.27M | -21.74M | 182.69M | -8.88M | -2.41M | -3.29M | 40.17M | 51.72M | -6.71M | -6.73M | -97.23M | -72.63M | 20.15M | 24.07M | -9.45M | 47.42M | 33.19M | 10.67M | -56.9M | -68.34M | 2.68M |
| Depreciation & Amortization | 13.36M | 12.63M | 12.53M | 14.57M | 13.11M | 15.03M | 18.58M | 13.38M | 22.67M | 25.68M | 23.79M | 21.42M | 18.34M | 21.52M | 22.56M | 24.25M | 30.46M | 32.42M | 28M | 28.97M | 25.39M | 23.98M | 30.44M | 28.83M | 14.24M | 17.71M | 27.26M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -18.59M | 1.66M | 23.97M | 2.27M | -571.75M | -29.82M | -20.37M | 9.66M | -165.06M | -16.77M | -14.48M | -12.91M | -58.37M | -78.47M | -7.52M | -38.39M | 44.42M | 38.22M | -103.12M | -68.34M | -27.52M | -116.12M | -111.61M | -74.78M | 18.16M | 9.52M | -57.98M |
| Working Capital Changes | -6.49M | -17.01M | -21.97M | -51.87M | 37.93M | -3.17M | -5.98M | -41.93M | -212.64M | -37.38M | 10.55M | -39.73M | -38.12M | -36.94M | -31.44M | 44.42M | 12.72M | -23.85M | 79.12M | -8.21M | -9.48M | 35.75M | 7.23M | 19.52M | -28.2M | -7.49M | -26.6M |
| Cash from Investing | -16.43M | -33.05M | -41.34M | 26.81M | 307.36M | 100.82M | 4.2M | -3.71M | 147.63M | -90.03M | -61.1M | -130.35M | 38.48M | 251.78M | 73.82M | 301.41M | 198.07M | 46.85M | -63.51M | -224.48M | -117.6M | -43.92M | 54.27M | 119.09M | 75.96M | 63.76M | 127.66M |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 0 | -411K | 0 | 0 | 236.75M | -267K | 5.3M | 3.75M | -833K | 5.52M | 2.17M | -195K | 261.9M | 0 | 178M | 120.77M | 0 | -170.33M | -57.88M | -15.31M | 104.27M | -400K | -25.67M |
| Purchase of Investments | -68.3M | -84.57M | -59.1M | -91.01M | -277.64M | -16M | -50.52M | -58.59M | -91.92M | -113.46M | -114.89M | -224.37M | -544K | 273.79M | 82.46M | -9K | -1.27M | 0 | -3.25M | -960K | 0 | 167.61M | 273.49M | -1.64M | -3.98M | -39.51M | 0 |
| Sale of Investments | 68.2M | 89.41M | 69.75M | 120.35M | 175.25M | 123.72M | 49.23M | 48.38M | 253.5M | 10.92M | 59.79M | 112.44M | 141.85M | 132K | 132K | 19.2M | 21.7M | 27.52M | 10.38M | 8.19M | 12.37M | 6.36M | 11.63M | 29.8M | 8.71M | 5M | 0 |
| Other Investing | -16.32M | -37.89M | -51.99M | -2.53M | 409.75M | 117.23M | 5.48M | 6.5M | -89.13M | 25.42M | 45.81M | 105.05M | -6.33M | -18.35M | 6.05M | 336.92M | -21.37M | 86.39M | 38.05M | 10.28M | 52.4M | 183.6M | 55.48M | 199.85M | 5.52M | 120.25M | 170.3M |
| Cash from Financing | 11.95M | 27.55M | 1.66M | -139.02M | -112.38M | -103.58M | -3.98M | 21.04M | 42.78M | 152.77M | 45.94M | 167.79M | -4.66M | -206.58M | -53.88M | -317.3M | -180.69M | -22.16M | 33.85M | 252.52M | 124.73M | 44.39M | -659K | -102.23M | -15.54M | -18.61M | -71.32M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -901K | -1.1M | -1.1M | -1.22M | -2.04M | -2.45M | -2.45M | -2.46M | 0 | 0 | 0 | 0 | -849K | -1.01M | -1.57M | -2.35M | -2.4M | -2.47M | -2.33M |
| Common Dividends | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -900K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -849K | -1.01M | -1.57M | -2.35M | -2.4M | -2.47M | -2.33M |
| Debt Issuance (Net) | 1000K | 1000K | 1000K | -1000K | -1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | -1000K | -1000K | -1000K |
| Share Repurchases | -403K | -1.08M | -802K | -908K | 0 | 0 | 0 | 0 | -9M | 0 | 0 | 0 | 0 | 0 | 143.42M | -61K | -379K | 0 | 0 | 0 | -15K | -1.38M | -5.23M | -14K | -24K | -133K | -746K |
| Other Financing | 0 | 0 | -199K | -455K | -1.35M | -4.09M | 0 | -8.04M | -5.26M | -10.49M | 841K | -6.72M | -7.29M | 1.57M | -4.09M | -1.7M | -3.91M | -31.06M | -11.94M | -31.42M | -12.46M | 23.33M | -8.98M | -7.44M | 12.4M | -5.64M | -48.04M |
| Net Change in Cash | -32.04M | -11.06M | -38.59M | -143.26M | 149.59M | -14.29M | 3.71M | -23.3M | 18.08M | 25.4M | 2.29M | 2.93M | -4.14M | 3.04M | -3.17M | 7.66M | 7.76M | -1.16M | -5.52M | 4.53M | -6.87M | -8.5M | 12.86M | 1.11M | 7.72M | -3.47M | 1.7M |
| Exchange Rate Effect | -29.41M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 7.05M | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 29.41M | 40.48M | 79.07M | 222.33M | 72.73M | 87.02M | 83.31M | 106.61M | 88.54M | 17.52M | 15.23M | 12.3M | 16.44M | 13.4M | 20.31M | 12.65M | 4.89M | 6.04M | 11.56M | 7.04M | 13.9M | 22.4M | 9.54M | 8.43M | 709K | 4.18M | 2.48M |
| Cash at End | 0 | 29.41M | 40.48M | 79.07M | 222.33M | 72.73M | 87.02M | 83.31M | 106.61M | 42.92M | 17.52M | 15.23M | 12.3M | 16.44M | 17.14M | 20.31M | 12.65M | 4.89M | 6.04M | 11.56M | 7.04M | 13.9M | 22.4M | 9.54M | 8.43M | 709K | 4.18M |
| Free Cash Flow | 1.85M | -5.55M | 1.09M | -31.05M | -45.39M | -135.24M | 3.5M | -40.64M | -176.02M | -152.52M | -94.76M | -273.65M | -133.63M | -51.48M | -40.09M | -30.95M | -72.52M | -92.9M | -262.55M | -386.27M | -203.42M | -240.13M | -269.19M | -109.36M | -91.26M | -70.2M | -71.61M |
| FCF Growth % | 118.21% | -609.92% | 103.51% | 31.58% | 66.44% | -3966.24% | 108.61% | 76.91% | -15.41% | -60.96% | 65.37% | -104.78% | -159.59% | -28.39% | -29.55% | 57.32% | 21.93% | 64.62% | 32.03% | -89.89% | 15.29% | 10.79% | -146.16% | -19.83% | -30% | 1.98% | - |
| FCF / Revenue % | 3.68% | -11.1% | 2.3% | -61.49% | -120.89% | -321.7% | 5.93% | -68.9% | -145.52% | -120.84% | -79.19% | -262.65% | -168.28% | -63.75% | -48.99% | -26.15% | -46.18% | -57.39% | -148.03% | -228.03% | -137.85% | -195% | -74.25% | -40.92% | -35.92% | -33.61% | -19.61% |
Reliance on asset divestitures
As reported in recent financial filings, ARL exhibits a persistent disconnect between FFO and GAAP operating cash flow, with FFO reaching $3.1 million in 2026Q1 while operating cash flow remained at zero, underscoring the limited utility of GAAP metrics for this specific real estate developer.
The wide variance between FFO and operating cash flow suggests that non-cash items and transactional gains heavily influence the company's reported earnings. Investors should monitor this divergence, as it implies that the cash generated from core property operations is insufficient to support the company's reported FFO levels.
Based on the provided financial data, the company's reliance on FFO to normalize earnings is evident, as GAAP net income frequently swings into negative territory, such as the $551,000 loss in 2026Q1, despite the company maintaining positive FFO figures during the same period.
This distortion highlights the significant impact of non-cash depreciation charges on the company's bottom line. The consistent gap between net income and FFO suggests that the underlying portfolio may be struggling to generate positive GAAP earnings, necessitating a focus on cash-based metrics to gauge true performance.
According to the historical cash flow statement, the company reported an extreme FCF swing from a negative $46.3 million in 2023Q4 to a positive $13.5 million in 2024Q3, indicating that core cash flow is highly susceptible to lumpy, non-recurring transactional events rather than steady rental income.
The absence of consistent positive free cash flow suggests that the company may be utilizing asset sales to bridge operational funding gaps. This pattern warrants further investigation into whether the company's long-term viability is tethered to its ability to continuously divest land parcels at favorable valuations.
Based on the reported figures, ARL has not provided sufficient data to calculate AFFO or dividend coverage ratios, as the company has maintained a zero dividend payout policy throughout the observed ten-quarter period, reflecting a capital allocation strategy focused on reinvestment rather than shareholder distributions.
The lack of dividend payments simplifies the cash flow analysis by removing the pressure of distribution coverage, yet it raises questions regarding the company's long-term return profile for equity holders. Without a clear path to positive AFFO, the company's ability to eventually initiate a dividend remains speculative.
Quick answers to the most common questions about buying ARL stock.
American Realty Investors, Inc. (ARL) generated $-5.6M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
American Realty Investors, Inc. (ARL) reported negative free cash flow of $5.6M in 2025, indicating capital requirements exceeded cash from operations.
American Realty Investors, Inc. (ARL) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, American Realty Investors, Inc. (ARL) spent $1.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.