TCI Transcontinental Realty Investment Inc

 

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 EndedSeptember 30, Nine Months EndedSeptember 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

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231109012867/en/

Transcontinental Realty Investors, Inc. Investor Relations Erik Johnson (469) 522-4200 Investor.relations@transconrealty-invest.com