Transcontinental Realty Investors, Inc. reports Earnings for Quarter Ended December 31, 2022
23 Março 2023 - 5:30PM
Business Wire
Transcontinental Realty Investors, Inc. (NYSE:TCI) is reporting
its results of operations for the quarter ended December 31, 2022.
For the three months ended December 31, 2022, we reported net
income attributable to the common shares of $58.9 million or $6.82
per diluted share, compared to a net loss of $8.7 million or $1.01
per diluted share for the same period in 2021.
Financial Highlights
- We collected approximately 96% of our rents for the three
months ended December 31, 2022, comprised of approximately 97% from
multifamily tenants and approximately 96% from office tenants.
- Total occupancy was 81% at December 31, 2022, which includes
93% at our multifamily properties and 60% at our commercial
properties.
- On November 1, 2022, we received a distribution of
approximately $204.0 million in connection with the sale of VAA
Sale Portfolio earlier in the year.
- On November 1, 2022, we also received the full control and
economical rights to the seven remaining multifamily properties
from our Victory Abode Apartments, LLC (“VAA”) joint venture
(collectively, the “VAA Holdback Portfolio”) with a fair value of
$219.5 million, which resulted in gain on remeasurement of
approximately $73.2 million. The VAA Holdback Portfolio consisted
of Blue Lake Villas, Blue Lake Villas Phase II, Northside on
Travis, Parc at Denham Springs, Residences at Holland Lake, Villas
of Park West I and Villas of Park West II.
- On October 21, 2022, we paid off the $38.5 million loan on
Stanford Center from the cash generated from sale of the VAA Sale
Portfolio.
- On January 31, 2023, we paid off our $66.5 million Series C
bonds from cash received from sale of the VAA Sale Portfolio.
Financial Results
Rental revenues increased $4.1 million from $7.6 million for the
three months ended December 31, 2021 to $11.8 million for the three
months ended December 31, 2022. The increase in rental revenue is
primarily due to a $4.9 million increase at our multifamily
properties offset in part by a decrease of $0.7 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 income increased $4.6 million from net operating
loss of $4.2 million for three months ended December 31, 2021 to
net operating income of $0.5 million for the three months ended
December 31, 2022. The increase in net operating income is
primarily due to the $4.1 million increase in rental revenue as
noted above and a decrease of $1.8 million in general
administrative and advisory expenses offset in part by an increase
of $1.9 million in property operating and depreciation expenses.
The decrease in general administrative and advisory expenses is
primarily due to a decrease in legal expenses and the increase in
property and depreciation expenses is due to the acquisition of the
VAA Holdback Portfolio.
Net income attributable to the Company increased $67.7 million
from a net loss of $8.7 million for the three months ended December
31, 2021 to net income of $58.9 million for the three months ended
December 31, 2022. The increase in net income is primarily
attributed to $72.2 million increase in gain on sale, remeasurement
or write down of assets offset in part by a $15.1 million increase
in our tax provision. The increase in gain on our sale or write
down of assets and our tax provision is due to the remeasurement of
the VAA Holdback Portfolio that was acquired 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 December
31,
Nine Months Ended December
31,
2022
2021
2022
2021
Revenues: Rental revenues
$
11,770
$
7,625
$
34,080
$
37,808
Other income
1,014
492
2,580
2,966
Total revenue
12,784
8,117
36,660
40,774
Expenses: Property operating expenses
5,798
4,360
18,339
20,860
Depreciation and amortization
2,846
2,397
9,686
11,870
General and administrative
2,595
3,876
9,943
12,425
Advisory fee to related party
1,089
1,638
7,974
11,782
Total operating expenses
12,328
12,271
45,942
56,937
Net operating income (loss)
456
(4,154
)
(9,282
)
(16,163
)
Interest Income
7,938
5,054
26,745
19,572
Interest expense
(5,026
)
(5,504
)
(19,813
)
(24,600
)
Gain (loss) on foreign currency transactions
630
(7,360
)
20,067
(6,175
)
Loss on early extinguishment of debt
-
-
(2,805
)
(1,451
)
Equity in (loss) income from unconsolidated joint venture
(2,342
)
2,996
468,086
14,531
Gain on sale, remeasurement or write down of assets, net
72,616
382
89,196
23,352
Income tax provision
(15,085
)
(26
)
(103,190
)
1,011
Net income (loss)
59,187
(8,612
)
469,004
10,077
Net income attributable to noncontrolling interest
(239
)
(135
)
(742
)
(679
)
Net income (loss) attributable to the Company
$
58,948
$
(8,747
)
$
468,262
$
9,398
Earnings per share Basic and diluted
$
6.82
$
(1.01
)
$
54.20
$
1.09
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
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