American Realty Investors, Inc. Reports Earnings for Quarter Ended March 31, 2022

Rhea-AI Summary

American Realty Investors, Inc. (NYSE: ARL) published its Q1 2022 financial results, reporting a net income of $11.3 million ($0.70 per diluted share), down from $18.1 million ($1.12 per diluted share) in Q1 2021. Rental revenues fell by $2.9 million to $7.5 million, primarily due to the sale of Las Colinas. The company achieved a rent collection rate of about 98%, with total occupancy at 90%. A significant milestone included the sale of a multifamily property for $26.8 million.

Positive

• Achieved a rent collection rate of approximately 98%.
• Total occupancy is reported at 90%, with multifamily properties at 94%.
• Sold Toulon property for $26.8 million, generating a gain of $9.4 million.

Negative

• Net income decreased by $6.8 million year-over-year.
• Rental revenues decreased by $2.9 million compared to the same period in 2021.
• Net operating loss increased from $3.0 million to $4.5 million.

DALLAS--(BUSINESS WIRE)-- American Realty Investors, Inc. (NYSE:ARL) is reporting its results of operations for the quarter ended March 31, 2022. For the three months ended March 31, 2022, we reported net income attributable to the Company of $11.3 million or $0.70 per diluted share, compared to $18.1 million or $1.12 per diluted share for the same period in 2021.

Financial Highlights

• We collected approximately 98% of our rents for the three months ended March 31, 2022, comprised of approximately 98% from multifamily tenants and approximately 96% from office tenants.
• Total occupancy was 90% at March 31, 2022, which includes 94% at our multifamily properties and 70% at our commercial properties.
• On January 14, 2022, we sold Toulon, a 240 unit multifamily property in Gautier, Mississippi for $26.8 million, resulting in gain on sale of $9.4 million. We used the proceeds to pay off the $14.7 million mortgage note payable on the property and for general corporate purposes.
• On March 3, 2022, our $38.8 million loan on Stanford Center was extended to February 26, 2023.

Financial Results

Rental revenues decreased $2.9 million from $10.4 million for the three months ended March 31, 2021 to $7.5 million for the three months ended March 31, 2022. The decrease in rental revenue is primarily due to the sale of 600 Las Colinas in 2021.

Net operating loss increased $1.5 million from $3.0 million for three months ended March 31, 2021 to $4.5 million for the three months ended March 31, 2022. The increase in net operating loss is primarily due to the sale of 600 Las Colinas in 2021.

Net income attributable to the Company decreased $6.8 million from $18.1 million for the three months ended March 31, 2021 to $11.3 million for the three months ended March 31, 2022. The decrease in net income is primarily attributed to the decrease in gain on sale of land in 2022.

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. (NYSE: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,
			2022				2021
Revenues:
Rental revenues			$	7,481			$	10,361
Other incomes				306				1,467
Total revenue				7,787				11,828
Expenses:
Property operating expenses				4,028				5,832
Depreciation and amortization				2,349				3,327
General and administrative				2,720				3,235
Advisory fee to related party				3,185				2,436
Total operating expenses				12,282				14,830
Net operating loss				(4,495	)			(3,002	)
Interest Income				6,782				5,644
Interest expense				(6,167	)			(7,738	)
Gain on foreign currency transactions				3,772				7,617
Loss on extinguishment of debt				(1,639	)			-
Equity in income from unconsolidated joint venture				5,194				3,336
Gain on sale or write-down of assets, net				11,148				17,398
Income tax provision				(28	)			(40	)
Net income				14,567				23,215
Net income attributable to noncontrolling interest				(3,253	)			(5,147	)
Net income attributable to the Company			$	11,314			$	18,068
Earnings per share
Basic and diluted			$	0.70			$	1.12
Weighted average common shares used in computing earnings per share
Basic and diluted				16,152,043				16,152,043

 

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American Realty Investors, Inc.

Investor Relations

Erik Johnson (800) 400-6407

investor.relations@americanrealtyinvest.com

Source: American Realty Investors, Inc.

FAQ

What were American Realty Investors' earnings for Q1 2022?

American Realty Investors reported net income of $11.3 million or $0.70 per diluted share for Q1 2022.

How did rental revenues change for American Realty Investors in Q1 2022?

Rental revenues decreased by $2.9 million to $7.5 million in Q1 2022.

What is the occupancy rate for American Realty Investors as of March 31, 2022?

Total occupancy for American Realty Investors was 90%, with multifamily properties at 94%.

What property did American Realty Investors sell recently and for how much?

On January 14, 2022, American Realty Investors sold the Toulon multifamily property for $26.8 million.