DALLAS--(BUSINESS WIRE)--May 07, 2026-- 

American Realty Investors, Inc. $(ARL)$ is reporting its results of operations for the three months ended March 31, 2026. For the three months ended March 31, 2026, we reported net loss attributable to common shares of $0.6 million or $0.03 per share, compared to a net income attributable to common shares of $3.0 million or $0.18 per share for the same period in 2025.

Financial Highlights

   --  Total occupancy was 81% at March 31, 2026, which includes 93% at our 
      multifamily properties and 58% at our commercial properties. 
 
   --  Occupancy for our Alera, Bandera Ridge and Merano (collectively, our 
      "Development Properties") at March 31, 2026 was 47%, 44% and 42%, 
      respectively. 
 
   --  During the three months ended March 31, 2026, we sold 21 lots from our 
      holdings in Windmill Farms for $1.0 million, resulting in a gain on sale 
      of $0.8 million. 

Financial Results

Revenues increased $0.3 million from $12.0 million for the three months ended March 31, 2025 to $12.3 million for the three months ended March 31, 2026. The increase in revenue is primarily due to an increase of $0.7 million from our commercial properties offset in part by a decrease of $0.3 million from our multifamily properties. The increase in revenue from our commercial properties is primarily due to an increase in occupancy at Stanford Center.

Net operating loss increased $1.4 million from $0.8 million for the three months ended March 31, 2025 to $2.2 million for the three months ended March 31, 2026. Our increase in net operating loss was primarily due to a $1.4 million increase in operating expenses from the lease-up properties for the three months ended March 31, 2026.

Net income attributable to common shares decreased $3.5 million from net income of $3.0 million for the three months ended March 31, 2025 to a net loss of $0.6 million for the three months ended March 31, 2026. The decrease in net income is primarily attributed to a decrease of $3.5 million from gain on sale or write down of assets, $1.3 million in interest income, net and $1.4 million in net operating loss offset in part by a $1.6 million decrease in tax provision. The decrease in gain on sale of real estate transactions is attributed to the condemnation of a parcel of land at Windmill Farms in 2025.

About American Realty Investors, Inc.

American Realty Investors, Inc., a Dallas-based real estate investment company, holds a diverse portfolio of equity real estate located across the U.S., including office buildings, apartments, shopping centers, and developed and undeveloped land. The Company invests in real estate through direct ownership, leases and partnerships and invests in mortgage loans on real estate. The Company also holds mortgage receivables. The Company's primary asset and source of its operating results is its investment in Transcontinental Realty Investors, Inc. $(TCI)$. For more information, visit the Company's website at www.americanrealtyinvest.com.

 
                   AMERICAN REALTY INVESTORS, INC. 
                CONSOLIDATED STATEMENTS OF OPERATIONS 
           (Dollars in thousands, except per share amounts) 
                             (Unaudited) 
 
 
                                               Three Months Ended 
                                                    March 31, 
                                          ---------------------------- 
                                              2026          2025 
                                           ----------    ---------- 
 
Revenues: 
       Rental revenues                    $    11,656   $    11,427 
       Other income                               685           581 
                                           ----------    ---------- 
          Total revenue                        12,341        12,008 
                                           ----------    ---------- 
Expenses: 
       Property operating expenses              7,333         5,977 
       Depreciation and amortization            3,630         2,883 
       General and administrative               1,486         1,492 
       Advisory fee to related party            2,083         2,469 
                                           ----------    ---------- 
          Total operating expenses             14,532        12,821 
                                           ----------    ---------- 
          Net operating loss                   (2,191)         (813) 
Interest income                                 3,824         4,010 
Interest expense                               (2,968)       (1,820) 
Equity in income from unconsolidated 
 joint ventures                                     -          (159) 
Gain on real estate transactions                  385         3,891 
Income tax provision                              434        (1,146) 
                                           ----------    ---------- 
Net (loss) income                                (516)        3,963 
Net income attributable to 
 noncontrolling interest                          (35)         (998) 
                                           ----------    ---------- 
Net (loss) income attributable to common 
 shares                                   $      (551)  $     2,965 
                                           ==========    ========== 
Earnings per share 
       Basic and diluted                  $     (0.03)  $      0.18 
                                           ==========    ========== 
Weighted average common shares used in 
computing earnings per share 
       Basic and diluted                   16,152,043    16,152,043 
                                           ==========    ========== 
 
 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260507048316/en/

 
    CONTACT:    American Realty Investors, Inc. 

Investor Relations

Erik Johnson (469) 522-4200

investor.relations@americanrealtyinvest.com

(END) Dow Jones Newswires

May 07, 2026 17:15 ET (21:15 GMT)