Transcontinental Realty Investors, Inc. Reports Earnings for Quarter Ended June 30, 2023

By: Transcontinental Realty Investors, Inc. via Business Wire

August 10, 2023 at 16:30 PM EDT

Transcontinental Realty Investors, Inc. (NYSE: TCI) is reporting its results of operations for the quarter ended June 30, 2023. For the three months ended June 30, 2023, we reported net income attributable to common shares of $0.5 million or $0.06 per diluted share, compared to a net income of $16.5 million or $1.91 per diluted share for the same period in 2022.

Financial Highlights

Total occupancy was 81% at June 30, 2023, which includes 93% at our multifamily properties and 59% at our commercial properties.
On January 31, 2023, we paid off our $67.5 million Series C bonds from cash received from the sale of the VAA Sale Portfolio.
On May 4, 2023, we paid off the remaining $42.9 million balances of our Series A and Series B Bonds. In connection with the repayment of the bonds, our wholly-owned subsidiary, Southern Properties Capital Ltd. withdrew from the Tel-Aviv Stock Exchange (“TASE”).

Financial Results

Rental revenues increased $4.1 million from $7.3 million for the three months ended June 30, 2022 to $11.4 million for the three months ended June 30, 2023. The increase in rental revenue is primarily due to a $4.7 million increase at our multifamily properties offset in part by a decrease of $0.6 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 increased $0.7 million from $2.8 million for the three months ended June 30, 2022 to $3.5 million for the three months ended June 30, 2023. The increase in net operating loss is primarily due to an increase in legal costs offset in part by an increase in operating profit from the multifamily portfolio.

Net income attributable to the Company decreased $15.9 million from $16.5 million for the three months ended June 30, 2022 to $0.5 million for the three months ended June 30, 2023. The decrease in net income is primarily attributed to the $14.1 million decrease in gain on foreign currency transactions, which is attributed to our repayment of our bonds payable and exit from the TASE in 2023.

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 June 30,						Six Months Ended June 30,
	2023			2022			2023			2022

Revenues:
Rental revenues	$	11,389		$	7,259		$	22,398		$	14,740
Other income		850			511			1,529			817
Total revenue		12,239			7,770			23,927			15,557
Expenses:
Property operating expenses		7,031			3,812			13,137			7,840
Depreciation and amortization		3,200			2,298			6,302			4,647
General and administrative		3,521			2,061			6,404			4,592
Advisory fee to related party		2,000			2,446			4,170			5,451
Total operating expenses		15,752			10,617			30,013			22,530
Net operating loss		(3,513	)		(2,847	)		(6,086	)		(6,973	)
Interest income		8,494			4,387			17,322			9,783
Interest expense		(2,426	)		(4,541	)		(5,513	)		(9,150	)
Gain on foreign currency transactions		22			14,132			993			17,904
Loss on extinguishment of debt		(1,710	)		-			(1,710	)		(1,639	)
Equity in income from unconsolidated joint venture		25			1,637			713			6,343
Gain on sale or write-down of assets, net		188			3,893			188			15,041
Income tax provision		(204	)		(40	)		(1,316	)		(68	)
Net income		876			16,621			4,591			31,241
Net income attributable to noncontrolling interest		(346	)		(160	)		(544	)		(278	)
Net income attributable to the Company	$	530		$	16,461		$	4,047		$	30,963
Earnings per share
Basic and diluted	$	0.06		$	1.91		$	0.47		$	3.58
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