ARECAUTIOUS

Return on Equity (ROE)

-9.2%

Higher than 9% of Real Estate sector peers

Updated 1928h ago

Sector Performance

9th percentile

ARE

-9.2%

Sector Median

9.8%

Sector Avg

10.9%

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Deep Analysis

A Return on Equity (ROE) of -9.2% means the company is losing money relative to the equity invested by shareholders; for every dollar of shareholder equity, it generated a loss of roughly 9 cents.

This is far below the Real Estate sector median of 7.6%, placing ARE in the 12th percentile among its peers—one of the weakest performers in the industry. The metric has been completely stable over the last eight quarters, with a year-over-year change of +0.0% and a quarter-over-quarter change of +0.0%, showing no movement in either direction. The combination of a persistently negative ROE and a flat, low-level trend indicates ongoing trouble generating profits from equity, carrying elevated investment risk with no sign of improvement. This directly supports the overall CAUTIOUS verdict, as a sustained negative return on equity undermines long-term shareholder value and signals fundamental financial weakness.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about ARE?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does ARE's Return on Equity (ROE) compare to its sector?

ARE's Return on Equity (ROE) of -9.2% compares to a Real Estate sector median of 9.8%, placing it in the 9th percentile.

Who are ARE's closest peers by Return on Equity (ROE)?

The closest Real Estate peers by Return on Equity (ROE) include: AVB (9.1%), TRNO (10.4%), VICI (11.3%), REG (8.0%), CUBE (11.6%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.