Transcontinental Realty Investors, Inc. reports Earnings for Quarter Ended September 30, 2023

Rhea-AI Summary

Transcontinental Realty Investors, Inc. (NYSE:TCI) reported net income of $4.5 million or $0.52 per diluted share for the three months ended September 30, 2023, compared to $378.4 million or $43.79 per diluted share for the same period in 2022. Rental revenues increased to $11.8 million, and total occupancy was 79% at September 30, 2023, with 96% at multifamily properties and 49% at commercial properties.

Positive

• Rental revenues increased by $4.3 million from the previous year, primarily driven by the acquisition of the VAA Holdback Portfolio in 2022.
• Total occupancy was at 79%, with strong performance at multifamily properties at 96% occupancy.
• Obtained a $25.4 million construction loan for a new 216-unit multifamily property in McKinney, Texas, indicating a commitment to expansion and growth.

Negative

• Net income attributable to the Company decreased significantly from the same period in 2022, mainly due to the share of the gain from the sale of the VAA Sale Portfolio in 2022.
• Commercial properties experienced a decrease in rental revenue by $0.8 million.

 

DALLAS--(BUSINESS WIRE)-- Transcontinental Realty Investors, Inc. (NYSE:TCI) is reporting its results of operations for the three months ended September 30, 2023. For the three months ended September 30, 2023, we reported net income attributable to common shares of $4.5 million or $0.52 per diluted share, compared to a net income of $378.4 million or $43.79 per diluted share for the same period in 2022.

Financial Highlights

• Total occupancy was 79% at September 30, 2023, which includes 96% at our multifamily properties and 49% at our commercial properties.
• On August 28, 2023, we paid off the $1.2 million loan on Athens.
• On November 6, 2023, we obtained a $25.4 million construction loan to build a 216 unit multifamily property in McKinney, Texas.

Financial Results

Rental revenues increased $4.3 million from $7.6 million for the three months ended September 30, 2022 to $11.8 million for the three months ended September 30, 2023. The increase in rental revenue is primarily due to a $5.0 million increase at our multifamily properties offset in part by a decrease of $0.8 million from the commercial properties. The increase in revenue from the multifamily properties is primarily due to the acquisition of the VAA Holdback Portfolio in 2022.

Net operating loss decreased $1.0 million from $2.8 million for three months ended September 30, 2022 to $1.8 million for the three months ended September 30, 2023. The decrease in net operating loss is primarily due to a decrease in legal costs.

Net income attributable to the Company decreased $373.9 million from $378.4 million for the three months ended September 30, 2022 to $4.5 million for the three months ended September 30, 2023. The decrease in net income is primarily attributed to our share of the gain from the sale of the VAA Sale Portfolio, net of income tax effect in 2022.

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 September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
Revenues:
Rental revenues		$	11,838			$	7,570			$	34,236			$	22,310
Other income			687				749				2,216				1,566
Total revenue			12,525				8,319				36,452				23,876
Expenses:
Property operating expenses			7,443				4,701				20,580				12,541
Depreciation and amortization			3,313				2,193				9,615				6,840
General and administrative			1,432				2,756				7,836				7,348
Advisory fee to related party			2,112				1,434				6,282				6,885
Total operating expenses			14,300				11,084				44,313				33,614
Net operating loss			(1,775	)			(2,765	)			(7,861	)			(9,738	)
Interest income			9,676				7,379				26,998				17,162
Interest expense			(1,902	)			(3,992	)			(7,415	)			(13,142	)
Gain on foreign currency transactions			-				1,533				993				19,437
Loss on extinguishment of debt			-				(1,166	)			(1,710	)			(2,805	)
Equity in income from unconsolidated joint venture			85				464,085				798				470,428
Gain on sale or write-down of assets, net			-				1,539				188				16,580
Income tax provision			(1,322	)			(88,037	)			(2,638	)			(88,105	)
Net income			4,762				378,576				9,353				409,817
Net income attributable to noncontrolling interest			(311	)			(225	)			(855	)			(503	)
Net income attributable to the Company		$	4,451			$	378,351			$	8,498			$	409,314
Earnings per share
Basic and diluted		$	0.52			$	43.79			$	0.98			$	47.38
Weighted average common shares used in computing earnings per share
Basic and diluted			8,639,316				8,639,316				8,639,316				8,639,316

 

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Transcontinental Realty Investors, Inc.

Investor Relations

Erik Johnson (469) 522-4200

Investor.relations@transconrealty-invest.com

Source: Transcontinental Realty Investors, Inc.

FAQ

What is the net income reported by Transcontinental Realty Investors, Inc. (NYSE:TCI) for the three months ended September 30, 2023?

Transcontinental Realty Investors, Inc. reported net income of $4.5 million or $0.52 per diluted share for the three months ended September 30, 2023.

What was the total occupancy at September 30, 2023, for Transcontinental Realty Investors, Inc. (NYSE:TCI)?

The total occupancy was 79% at September 30, 2023, with 96% at multifamily properties and 49% at commercial properties.

What was the reason for the decrease in net income for Transcontinental Realty Investors, Inc. (NYSE:TCI) compared to the same period in 2022?

The decrease in net income is primarily attributed to the share of the gain from the sale of the VAA Sale Portfolio, net of income tax effect in 2022.