{"id":7245,"date":"2022-10-28T06:19:04","date_gmt":"2022-10-28T11:19:04","guid":{"rendered":"https:\/\/1reason.com\/re\/andrew-arroyo-real-estate-inc-reports-mid-year-2022-results-and-2023-outlook\/7245\/"},"modified":"2022-10-29T01:19:04","modified_gmt":"2022-10-29T06:19:04","slug":"andrew-arroyo-real-estate-inc-reports-mid-year-2022-results-and-2023-outlook","status":"publish","type":"post","link":"https:\/\/1reason.com\/re\/andrew-arroyo-real-estate-inc-reports-mid-year-2022-results-and-2023-outlook\/7245\/","title":{"rendered":"Andrew Arroyo Real Estate, Inc. Reports Mid Year 2022 Results and 2023 Outlook"},"content":{"rendered":"
05, 2022 (GLOBE NEWSWIRE) — Andrew Arroyo Real Estate Inc. (AARE), a mission-driven real estate and lending brokerage in the United States, announced today that revenue for the mid-year 2022 was $4.8 million, up 15% year-over-year. Total assets for the six months ended June 30, 2022 was $1.278 million, an increase of 89% from the year ending December 31, 2021. AARE\u2019s capital raise and diversified service model contributed to year-over-year growth for the six months ended June 30, 2022. <\/p>\n

Net loss was $98,827 for the six months ended June 30, 2022 compared to a net gain of $82,825 for the six months ended June 30, 2021. The majority of the net losses in Q1\/Q2 of 2022 were driven by the ongoing expenses related to the IPO (initial public offering) and costs related to hiring an executive management team to facilitate the nationwide growth.<\/p>\n

The Company\u2019s cash position remains solid, with $625,000 in cash and an unused $75,000 credit line and $150,000 credit revolver available to invest in the growth of the business.<\/p>\n

2022 Milestones & Q1\/Q2 2022 Operational Updates<\/u><\/strong><\/p>\n

New Profit Center – Lending Department <\/strong>
During the second quarter of 2022, AARE developed a lending department. The lending department is doing business as Ensure Lending<\/a>,a wholly owned subsidiary of AARE. This department is now established in California and actively funding loans regulated by the California Department of Real Estate.<\/p>\n

\u201cOur goal is to expand the lending department to the other 24 states we currently operate our real estate business. We believe we can generate significant additional revenue and profit for the Company by providing lending services to our clients,\u201d said Andrew Arroyo, founder, chairman, and CEO of AARE.<\/p>\n

Derek Barksdale was appointed to lead the new department. Before joining AARE and Ensure Lending, Mr. Barksdale most recently served asManager Partnerfor Aligned Mortgageof San Diego,whichwasasubsidiarybranchfor theretaillending institution, American Pacific Mortgage. During his three-year tenure with Aligned\/American Pacific Mortgage, Mr. Barksdalecommissioned and managed the production, operations and support services tofundof over 1,800 loans with a total volume of $917 million. Mr. Barksdale alsohasan extensive military background in operations asa 21-year retired naval officer, with an additional four years as a senior government executive, distinguished as a federal Chief of Police.Mr. Barksdale\u2019s private-sector experience began in 2011, as the Founder ofMilitary Mutual, a real estate brokerage<\/a> focused on providing real estate services to veteransand their families.Military Mutual is now affiliated with AARE and doing its real estate business through our company. Mr. Barksdale was offered a full-time employee position with us to oversee our new lending department. Mr. Barksdale accepted the employment contract and is now directing our staff in that department.<\/p>\n

Outlook<\/u><\/strong><\/p>\n

\u201cWe continue to achieve revenue and total asset growth despite the changing economic conditions and aggressive interest rate hikes by the Fed,\u201d said Andrew Arroyo, founder, chairman, and CEO of AARE. \u201cThe Fed\u2019s goal to curb inflation is beginning to take its toll on the real estate and lending industry as a whole. Over tightening too quickly could lead to collateral damage for both consumers and industry professionals. To that end, we have systems in place that helped us through previous rising interest rate environments, recessions, and unusual market conditions. Our salesforce is ready to navigate a change in the market or a potential recession.\u201d<\/p>\n

3Q-4Q 2022 and FY2022 Outlook:<\/strong><\/p>\n