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

Rhea-AI Summary

Transcontinental Realty Investors (NYSE: TCI) reported a net income of $14.5 million or $1.68 per diluted share for the quarter ended March 31, 2022, down from $22.6 million or $2.62 per diluted share year-over-year. Total revenue fell $4 million to $7.8 million, primarily due to a decrease in rental revenues stemming from the 2021 sale of 600 Las Colinas. Net operating loss increased to $4.1 million. Occupancy rates stood at 90%, with 98% rent collection.

Positive

• Collected approximately 98% of rents for the three months ended March 31, 2022.
• Total occupancy rate was 90%, including 94% for multifamily properties.

Negative

• Net income decreased by $8.1 million compared to the same quarter in 2021.
• Rental revenues fell by $2.9 million from $10.4 million in Q1 2021 to $7.5 million in Q1 2022.
• Net operating loss increased by $1.9 million.

DALLAS--(BUSINESS WIRE)-- Transcontinental Realty Investors, Inc. (NYSE:TCI) 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 $14.5 million or $1.68 per diluted share, compared to $22.6 million or $2.62 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 $1.9 million from $2.2 million for three months ended March 31, 2021 to $4.1 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 $8.1 million from $22.6 million for the three months ended March 31, 2021 to $14.5 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 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
		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			2,531				2,646
Advisory fee to related party			3,005				2,249
Total operating expenses			11,913				14,054
Net operating loss			(4,126	)			(2,226	)
Interest Income			5,814				4,701
Interest expense			(5,027	)			(6,604	)
Gain on foreign currency transactions			3,772				7,617
Loss on extinguishment of debt			(1,639	)			-
Equity in income from unconsolidated joint ventures			4,706				3,336
Gain on sale or write-down of assets, net			11,148				16,103
Income tax provision			(28	)			(40	)
Net income			14,620				22,887
Net income attributable to noncontrolling interest			(118	)			(255	)
Net income attributable to common shares		$	14,502			$	22,632
Earnings per share
Basic and diluted		$	1.68			$	2.62
Weighted average common shares used in computing earnings per share
Basic and diluted			8,639,316				8,639,316

 

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Transcontinental Realty Investors, Inc.

Investor Relations

Erik Johnson (800) 400-6407

Investor.relations@transconrealty-invest.com

Source: Transcontinental Realty Investors, Inc.

FAQ

What were the earnings results for Transcontinental Realty Investors (TCI) for Q1 2022?

Transcontinental Realty Investors (TCI) reported a net income of $14.5 million, or $1.68 per diluted share, for the quarter ended March 31, 2022.

What were the key financial highlights of Transcontinental Realty Investors (TCI) for Q1 2022?

Key highlights include a total revenue of $7.8 million, a net operating loss of $4.1 million, and a total occupancy rate of 90%.

How did Transcontinental Realty Investors (TCI) perform in terms of rental income for Q1 2022?

TCI's rental revenues decreased to $7.5 million for Q1 2022, down from $10.4 million in the same quarter in 2021.

What is the current occupancy rate of Transcontinental Realty Investors (TCI)?

The total occupancy rate for TCI was reported at 90%, with multifamily properties at 94%.