American Realty Investors, Inc. Reports Earnings for Quarter Ended September 30, 2024
Financial Highlights
-
Total occupancy was
79% at September 30, 2024, which includes95% at our multifamily properties and48% at our commercial properties. -
On July 10, 2024, we replaced the existing loan on Forest Grove with a
loan that bears interest at SOFR plus$6.6 million 1.85% and matures on August 1, 2031. -
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 a20% 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
construction loan to finance the development of a 234 unit multifamily property in$27.5 million Dallas, Texas ("Mountain Creek") that is expected to be completed in 2026 for a total cost of approximately . The construction loan on Mountain Creek bears interest at SOFR plus$49.8 million 3.45% and matures on October 20, 2026. -
On October 31, 2024, we paid
to resolve all claims litigation with David Clapper and related entities related (collectively, the “Clapper") that had been ongoing since 1999. The matter originally involved a transaction in 1998 in which we were to acquire eight multifamily properties from the Clapper. As a result of the settlement, we accrued a loss on real estate transactions of$23.4 million during the three and nine months ended September 30, 2024.$23.4 million
Financial Results
Rental revenues decreased
Net operating loss was
Net income attributable to common shares decreased
About American Realty Investors, Inc.
American Realty Investors, Inc., a
AMERICAN REALTY INVESTORS, INC. | ||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
(Dollars in thousands, except per share amounts) | ||||||||||||||||||
(Unaudited) | ||||||||||||||||||
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||||||
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||
Revenues: | ||||||||||||||||||
Rental revenues | $ |
11,074 |
|
$ |
11,838 |
|
$ |
33,541 |
|
$ |
34,236 |
|
||||||
Other income |
|
533 |
|
|
688 |
|
|
1,738 |
|
|
2,217 |
|
||||||
Total revenue |
|
11,607 |
|
|
12,526 |
|
|
35,279 |
|
|
36,453 |
|
||||||
Expenses: | ||||||||||||||||||
Property operating expenses |
|
6,989 |
|
|
7,443 |
|
|
20,247 |
|
|
20,580 |
|
||||||
Depreciation and amortization |
|
3,120 |
|
|
3,313 |
|
|
9,429 |
|
|
9,615 |
|
||||||
General and administrative |
|
1,590 |
|
|
1,579 |
|
|
4,550 |
|
|
8,424 |
|
||||||
Advisory fee to related party |
|
1,971 |
|
|
2,295 |
|
|
5,910 |
|
|
6,883 |
|
||||||
Total operating expenses |
|
13,670 |
|
|
14,630 |
|
|
40,136 |
|
|
45,502 |
|
||||||
Net operating loss |
|
(2,063 |
) |
|
(2,104 |
) |
|
(4,857 |
) |
|
(9,049 |
) |
||||||
Interest income |
|
5,506 |
|
|
9,008 |
|
|
16,033 |
|
|
25,201 |
|
||||||
Interest expense |
|
(2,123 |
) |
|
(1,954 |
) |
|
(5,958 |
) |
|
(7,574 |
) |
||||||
Gain on foreign currency transactions |
|
- |
|
|
- |
|
|
- |
|
|
993 |
|
||||||
Loss on early extinguishment of debt |
|
- |
|
|
- |
|
|
- |
|
|
(1,710 |
) |
||||||
Equity in income from unconsolidated joint ventures |
|
423 |
|
|
234 |
|
|
1,407 |
|
|
2,946 |
|
||||||
(Loss) gain on real estate transactions |
|
(23,400 |
) |
|
(32 |
) |
|
(23,400 |
) |
|
156 |
|
||||||
Income tax provision |
|
4,641 |
|
|
(1,127 |
) |
|
3,552 |
|
|
(2,416 |
) |
||||||
Net (loss) income |
|
(17,016 |
) |
|
4,025 |
|
|
(13,223 |
) |
|
8,547 |
|
||||||
Net income attributable to noncontrolling interest |
|
(444 |
) |
|
(1,037 |
) |
|
(1,319 |
) |
|
(2,456 |
) |
||||||
Net (loss) income attributable to the common shares | $ |
(17,460 |
) |
$ |
2,988 |
|
$ |
(14,542 |
) |
$ |
6,091 |
|
||||||
Earnings per share | ||||||||||||||||||
Basic and diluted | $ |
(1.08 |
) |
$ |
0.18 |
|
$ |
(0.90 |
) |
$ |
0.38 |
|
||||||
Weighted average common shares used in computing earnings per share | ||||||||||||||||||
Basic and diluted |
|
16,152,043 |
|
|
16,152,043 |
|
|
16,152,043 |
|
|
16,152,043 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107129132/en/
American Realty Investors, Inc.
Investor Relations
Erik Johnson (469) 522-4200
investor.relations@americanrealtyinvest.com
Source: American Realty Investors, Inc.