American Realty Investors, Inc. Reports Earnings for Quarter Ended December 31, 2024
Financial Highlights
-
Total occupancy was
81% at December 31, 2024, which includes94% at our multifamily properties and53% 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 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 December 31, 2024.$23.4 million
-
On December 13, 2024, we sold 30 single family lots from our holdings in Windmill Farms for
, resulting in a gain on sale of$1.4 million .$1.1 million
Financial Results
Rental revenues decreased
Net operating loss decreased
Net loss 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 December 31, |
|
Twelve Months Ended December 31, |
||||||||||||||||
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||||||
Revenues: | ||||||||||||||||||
Rental revenues | $ |
11,222 |
|
$ |
12,787 |
|
$ |
44,763 |
|
$ |
47,023 |
|
||||||
Other income |
|
817 |
|
|
1,260 |
|
|
2,555 |
|
|
3,477 |
|
||||||
Total revenue |
|
12,039 |
|
|
14,047 |
|
|
47,318 |
|
|
50,500 |
|
||||||
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 |
|
1,845 |
|
|
1,587 |
|
|
6,395 |
|
|
10,011 |
|
||||||
Advisory fee to related party |
|
2,315 |
|
|
3,304 |
|
|
8,225 |
|
|
10,187 |
|
||||||
Total operating expenses |
|
13,823 |
|
|
16,238 |
|
|
53,959 |
|
|
61,740 |
|
||||||
Net operating loss |
|
(1,784 |
) |
|
(2,191 |
) |
|
(6,641 |
) |
|
(11,240 |
) |
||||||
Interest income |
|
3,940 |
|
|
1,646 |
|
|
19,973 |
|
|
26,847 |
|
||||||
Interest expense |
|
(1,880 |
) |
|
(1,928 |
) |
|
(7,838 |
) |
|
(9,502 |
) |
||||||
Gain on foreign currency transactions |
|
- |
|
|
- |
|
|
- |
|
|
993 |
|
||||||
Loss on early extinguishment of debt |
|
- |
|
|
- |
|
|
- |
|
|
(1,710 |
) |
||||||
Equity in income from unconsolidated joint venture |
|
42 |
|
|
296 |
|
|
1,449 |
|
|
3,242 |
|
||||||
Loss on real estate transactions |
|
(589 |
) |
|
(2,079 |
) |
|
(23,989 |
) |
|
(1,923 |
) |
||||||
Income tax provision |
|
55 |
|
|
960 |
|
|
3,607 |
|
|
(1,456 |
) |
||||||
Net (loss) income |
|
(216 |
) |
|
(3,296 |
) |
|
(13,439 |
) |
|
5,251 |
|
||||||
Net income (loss) attributable to noncontrolling interest |
|
55 |
|
|
1,173 |
|
|
(1,264 |
) |
|
(1,283 |
) |
||||||
Net (loss) income attributable to common shares | $ |
(161 |
) |
$ |
(2,123 |
) |
$ |
(14,703 |
) |
$ |
3,968 |
|
||||||
Earnings per share | ||||||||||||||||||
Basic and diluted | $ |
(0.01 |
) |
$ |
(0.13 |
) |
$ |
(0.91 |
) |
$ |
0.25 |
|
||||||
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 |
|
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View source version on businesswire.com: https://www.businesswire.com/news/home/20250320830632/en/
American Realty Investors, Inc.
Investor Relations
Erik Johnson (469) 522-4200
investor.relations@americanrealtyinvest.com
Source: American Realty Investors, Inc.