US Real Estate Cos & REITs Companies in Financial Distress (October 2026)
As of 08 October 2026, 25 of 234 US Real Estate Cos & REITs companies analysed (11%) show financial-distress indicators: 8 very weak, 10 weak and 7 on watch. The most common red flags in this sector are market-implied default probability >20%, losses in each of the last 3 years, operating profit does not cover interest and cash runway under 12 months.
What drives financial distress in Real Estate Cos & REITs
Developers, REITs and property services — refinancing risk, interest cover and occupancy-driven cash flow. For housing prices, switch to Real Estate on the left.
Most common red flags today: Market-implied default probability >20% · Losses in each of the last 3 years · Operating profit does not cover interest · Cash runway under 12 months
Real Estate Cos & REITs companies with distress signals
| # | Ticker | Company / industry | Distress score | Band | Ohlson PD | Merton PD | From 52w high | Key indicators | |
|---|---|---|---|---|---|---|---|---|---|
| 1 | NYC | American Strategic Investment Co. Real Estate Services |
Very weak | 87% | 93.2% | -50% | Operating profit does not cover interestCash runway under 12 monthsMarket-implied default probability >20% |
Details → | |
| 2 | RENX | RenX Enterprises Corp. Real Estate - Development |
Very weak | 100% | 92.5% | -94% | Operating profit does not cover interestCash runway under 12 monthsMarket-implied default probability >20% |
Details → | |
| 3 | CHGA | Change Agents Corporation Real Estate Services |
Very weak | 100% | 58.3% | -96% | Operating profit does not cover interestCash runway under 12 monthsMarket-implied default probability >20% |
Details → | |
| 4 | EUDA | EUDA Health Holdings Limited Real Estate Services |
Very weak | 100% | 12.1% | -76% | Liabilities exceed assets (negative equity)Cash runway under 12 monthsSevere working-capital shortfall |
Details → | |
| 5 | AHT | Ashford Hospitality Trust, Inc. REIT - Hotel & Motel |
Very weak | 89% | 99.9% | -64% | Liabilities exceed assets (negative equity)Operating profit does not cover interestMarket-implied default probability >20% |
Details → | |
| 6 | MRNO | Murano Global Investments Plc Real Estate - Development |
Very weak | 82% | 97.7% | -91% | Operating profit does not cover interestMarket-implied default probability >20%Severe working-capital shortfall |
Details → | |
| 7 | STHO | Star Holdings Real Estate Services |
Very weak | 74% | 0.1% | -15% | Operating profit does not cover interestCash runway under 12 monthsSevere working-capital shortfall |
Details → | |
| 8 | PW | Power REIT REIT - Specialty |
Very weak | 94% | 65.2% | -46% | Operating profit does not cover interestMarket-implied default probability >20%Losses in each of the last 3 years |
Details → | |
| 9 | LRHC | La Rosa Holdings Corp. Real Estate Services |
Weak | — | — | -100% | Liabilities exceed assets (negative equity)Cash runway under 12 monthsLosses in each of the last 3 years |
Details → | |
| 10 | AEI | Alset Inc. Real Estate - Development |
Weak | 63% | 2.5% | -82% | Losses in each of the last 3 yearsRevenue collapseShare price down >80% from 52-week high |
Details → | |
| 11 | BDN | Brandywine Realty Trust REIT - Office |
Weak | 76% | 53.8% | -30% | Operating profit does not cover interestMarket-implied default probability >20%Losses in each of the last 3 years |
Details → | |
| 12 | GIPR | Generation Income Properties, Inc. REIT - Diversified |
Weak | 95% | 96.0% | -98% | Market-implied default probability >20%Losses in each of the last 3 yearsMaterial debt with no EBITDA |
Details → | |
| 13 | ELME | Elme Communities REIT - Residential |
Weak | 85% | 14.1% | -45% | Losses in each of the last 3 yearsDistress language in recent newsMaterial debt with no EBITDA |
Details → | |
| 14 | ABR | Arbor Realty Trust, Inc. REIT - Mortgage |
Weak | — | 99.8% | -72% | Operating profit does not cover interestMarket-implied default probability >20%Very high leverage |
Details → | |
| 15 | FSP | Franklin Street Properties Corp. REIT - Office |
Weak | 25% | 98.1% | -80% | Market-implied default probability >20%Losses in each of the last 3 yearsVery high leverage |
Details → | |
| 16 | FTHM | Fathom Holdings Inc. Real Estate Services |
Weak | — | — | -89% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 17 | RFL | Rafael Holdings, Inc. Real Estate Services |
Weak | 94% | 0.0% | -61% | Losses in each of the last 3 yearsOperations consume cashOhlson O-score signals likely failure |
Details → | |
| 18 | SRG | Seritage Growth Properties Real Estate Services |
Weak | 33% | 0.8% | -62% | Operating profit does not cover interestLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 19 | AIRE | reAlpha Tech Corp. Real Estate Services |
Watch | — | — | -96% | Cash runway under 12 monthsLosses in each of the last 3 yearsOperations consume cash |
Details → | |
| 20 | GPMT | Granite Point Mortgage Trust Inc. REIT - Mortgage |
Watch | — | 33.5% | -72% | Market-implied default probability >20%Losses in each of the last 3 yearsMaterial debt with no EBITDA |
Details → | |
| 21 | HPP | Hudson Pacific Properties, Inc. REIT - Office |
Watch | 44% | 64.8% | -39% | Market-implied default probability >20%Losses in each of the last 3 yearsVery high leverage |
Details → | |
| 22 | BHM | Bluerock Homes Trust, Inc. REIT - Residential |
Watch | 13% | 74.6% | -32% | Operating profit does not cover interestMarket-implied default probability >20%Very high leverage |
Details → | |
| 23 | LPA | Logistic Properties of the Americas Real Estate - Development |
Watch | 36% | 65.5% | -51% | Market-implied default probability >20%Thin interest coverageVery high leverage |
Details → | |
| 24 | BRSP | BrightSpire Capital, Inc. REIT - Mortgage |
Watch | 37% | 28.1% | -31% | Market-implied default probability >20%Losses in each of the last 3 yearsMaterial debt with no EBITDA |
Details → | |
| 25 | IHT | InnSuites Hospitality Trust REIT - Hotel & Motel |
Watch | — | — | -40% | Liabilities exceed assets (negative equity)Operations consume cashLosses in 2 of the last 3 years |
Details → |
Frequently asked questions
Which Real Estate Cos & REITs companies are in financial distress?
As of 2026-10-08, 25 US Real Estate Cos & REITs companies show financial-distress indicators (8 very weak, 10 weak and 7 on watch). The table on this page ranks them by score with the indicators behind each one. These are statistical signals, not predictions that any company will file.
How many Real Estate Cos & REITs companies are in financial trouble?
25 of 234 analysed (11%); 8 are in the 'Very weak' band.
What are the biggest financial risks for Real Estate Cos & REITs companies?
Developers, REITs and property services — refinancing risk, interest cover and occupancy-driven cash flow. For housing prices, switch to Real Estate on the left. Right now the most frequent red flags are market-implied default probability >20%, losses in each of the last 3 years, operating profit does not cover interest and cash runway under 12 months.
What happens to shareholders if a company becomes insolvent?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.