American Realty Investors (ARL) risk factors, FY2024 10-K

American Realty Investors's FY2024 10-K, filed Mar 20, 2025, lists 17 risk factors. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
170 groups
Section length
3k wordsItem 1A

American Realty Investors's biggest risks in the FY2024 10-K

  • Operating performance depends heavily on real estate market conditions, tenant demand, and leasing success across properties.

The risks most specific to American Realty Investors

  • We are leveraged and may not be able to meet our debt service obligations

    Total indebtedness reached $185.4 million as of December 31, 2024, with substantially all multifamily real estate pledged to secure debt.

  • A significant portion of our debt is insured with HUD

    Mortgage notes payable insured by the U.S. Department of Housing and Urban Development totaled $126.3 million, representing 68% of total indebtedness.

  • Our reliance on third-party management companies to operate certain of our properties may harm our business

    Third-party management companies are relied upon to operate properties with limited supervision and significant decision-making authority.

  • Real estate investments are illiquid, and we may not be able to sell properties if and when it is appropriate to do so

    Real estate investments are illiquid and Internal Revenue Code provisions may limit the ability to sell properties without significant tax costs.

  • Our ability to achieve growth in operating income depends in part on its ability to develop additional properties or acquire and redevelop or renovate existing properties

    Growth in operating income relies on the ability to develop additional properties or acquire and redevelop existing projects.

  • Ownership through partnerships and joint ventures could limit property performance

    Partnerships and joint ventures are utilized for property development and acquisition, which could limit overall property performance.

All 17 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01Our operating performance is subject to risks associated with the real estate industry
  2. 02We experience a great deal of competition in attracting tenants for the properties and in locating land to develop and properties to acquire
  3. 03Real estate investments are illiquid, and we may not be able to sell properties if and when it is appropriate to do so
  4. 04Our business may be impacted as a result of any health emergency
  5. 05We face risks associated with and have been the target of security breaches through cyber attacks, cyber intrusions or otherwise, as well as other significant disruptions of our information technology (IT) networks and related systems
  6. 06Adverse events concerning our existing tenants or negative market conditions affecting our existing tenants could have an adverse impact on our ability to attract new tenants, release space, collect rent or renew leases, and thus could adversely affect cash flow from operations and inhibit growth
  7. 07Our reliance on third-party management companies to operate certain of our properties may harm our business
  8. 08We may experience increased operating costs which could adversely affect our financial results and the value of our properties
  9. 09Our ability to achieve growth in operating income depends in part on its ability to develop additional properties or acquire and redevelop or renovate existing properties
  10. 10We face risks associated with property acquisitions
  11. 11We are leveraged and may not be able to meet our debt service obligations
  12. 12A significant portion of our debt is insured with HUD
  13. 13An increase in interest rates would increase interest costs on variable rate debt and could adversely impact the ability to refinance existing debt
  14. 14Unbudgeted capital expenditures or cost overruns could adversely affect business operations and cash flow
  15. 15Properties may need to be sold from time to time for cash flow purposes
  16. 16Ownership through partnerships and joint ventures could limit property performance
  17. 17We could incur more debt

Other American Realty Investors 10-Ks

  • FY2025 10-K risk factors
    18 risks2 new1 dropped6 reworded

    Total indebtedness increased significantly to $277.6 million from $185.4 million, while HUD-insured mortgage notes decreased to 58% of mortgage debt.

    Filed Mar 12, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.