Transcontinental Realty Investors, Inc. Reports Earnings for Quarter Ended March 31, 2022
May 13, 2022 at 09:31 pm
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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
View source version on businesswire.com: https://www.businesswire.com/news/home/20220513005277/en/
Transcontinental Realty Investors, Inc. is a fully integrated, externally managed real estate company. The Company operates through two segments: the acquisition, development, ownership and management of multifamily properties, and the acquisition, development, ownership and management of commercial properties, which are primarily office properties. The services for its commercial segment include primarily rental of office space and other tenant services, including parking and storage space rental. The services for its multifamily segment include primarily rental of apartments and other tenant services, including parking and storage space rental. It holds a diverse portfolio of equity real estate located across the United States, including office buildings, apartments, shopping centers, and developed and undeveloped land. It invests in real estate through direct ownership, leases and partnerships and invests in mortgage loans on real estate. It also holds mortgage receivables.