Transcontinental Realty Investors, Inc. Reports Earnings for Quarter Ended December 31, 2024
DALLAS--(BUSINESS WIRE)--March 20, 2025--
Transcontinental Realty Investors, Inc. $(TCI)$ is reporting its results of operations for the three months ended December 31, 2024. For the three months ended December 31, 2024, we reported net income attributable to common shares of $0.1 million or $0.01 per diluted share, compared to a net loss of $2.6 million or $0.30 per diluted share for the same period in 2023.
Financial Highlights
-- Total occupancy was 81% at December 31, 2024, which includes 94% at our
multifamily properties and 53% at our commercial properties.
-- On October 18, 2024, we completed a 45,000 square foot lease at Stanford
Center. This is the first new lease at the property following our major
renovation of the property. The new lease provides a 14% increase in
occupancy to the property and a 20% increase in rent per square foot over
recent expired leases at the property. The lease is expected to commence
in April 2025.
-- On October 21, 2024, we obtained a $27.5 million construction loan to
finance the development of a 234 unit multifamily property in Dallas,
Texas ("Mountain Creek") that is expected to be completed in 2026 for a
total cost of approximately $49.8 million. The construction loan on
Mountain Creek bears interest at SOFR plus 3.45% and matures on October
20, 2026.
-- On December 13, 2024, we sold 30 single family lots from our holdings in
Windmill Farms for $1.4 million, resulting in a gain on sale of $1.1
million.
Financial Results
Rental revenues decreased $1.6 million from $12.8 million for the three months ended December 31, 2023 to $11.2 million for the three months ended December 31, 2024. The decrease in rental revenue is primarily due to a decrease in occupancy at our commercial properties.
Net operating loss decreased $0.4 million from $2.1 million for the three months ended December 31, 2023 to $1.7 million for the three months ended December 31, 2024. Our decrease in net operating loss was due to a $2.1 million decrease in operating expenses offset in part by a $1.7 million decrease in revenues. The decrease in operating expenses is primarily due to a decrease in depreciation for the three months ended December 31, 2024.
Net income (loss) attributable to the Company increased $2.7 million from a net loss of $2.6 million for the three months ended December 31, 2023 to net income $0.1 million for the three months ended December 31, 2024. The increase in net income is primarily attributed to a decrease in loss on sale or write down of assets and an increase in interest income offset in part by an increase in the provision for income tax.
About Transcontinental Realty Investors, Inc.
Transcontinental 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.
TRANSCONTINENTAL REALTY INVESTORS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------- ----------------------
2024 2023 2024 2023
---------- ---------- ---------- ----------
Revenues:
Rental revenues $ 11,222 $ 12,787 $ 44,763 $ 47,023
Other income 569 666 2,307 2,882
--------- --------- --------- ---------
Total revenue 11,791 13,453 47,070 49,905
--------- --------- --------- ---------
Expenses:
Property operating
expenses 6,816 7,316 27,063 27,896
Depreciation and
amortization 2,847 4,031 12,276 13,646
General and
administrative 1,549 1,363 5,447 9,199
Advisory fee to
related party 2,269 2,874 8,058 9,156
--------- --------- --------- ---------
Total
operating
expenses 13,481 15,584 52,844 59,897
--------- --------- --------- ---------
Net operating
loss (1,690) (2,131) (5,774) (9,992)
Interest income 4,642 3,022 21,886 30,020
Interest expense (1,836) (1,876) (7,642) (9,291)
Gain on foreign currency
transactions - - - 993
Loss on early
extinguishment of debt - - - (1,710)
Equity in (loss) income
from unconsolidated joint
venture (119) 262 708 1,060
Loss on sale or write down
of assets, net (589) (2,079) (589) (1,891)
Income tax provision (112) 699 (1,930) (1,939)
--------- --------- --------- ---------
Net income (loss) 296 (2,103) 6,659 7,250
Net income attributable to
noncontrolling interest (188) (458) (797) (1,313)
--------- --------- --------- ---------
Net income (loss)
attributable to the
Company $ 108 $ (2,561) $ 5,862 $ 5,937
========= ========= ========= =========
Earnings per share
Basic and diluted $ 0.01 $ (0.30) $ 0.68 $ 0.69
========= ========= ========= =========
Weighted average common
shares used in computing
earnings per share
Basic and diluted 8,639,316 8,369,316 8,639,316 8,639,316
========= ========= ========= =========
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CONTACT: Transcontinental Realty Investors, Inc.
Investor Relations
Erik Johnson (469) 522-4200
investor.relations@transconrealty-invest.com
(END) Dow Jones Newswires
March 20, 2025 17:30 ET (21:30 GMT)
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