Transcontinental Realty Investors : reports Earnings for Q2 2023 - Form 8-K
August 11, 2023 at 01:07 am IST
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Transcontinental Realty Investors, Inc. reports Earnings for Q2 2023
DALLAS (August 10, 2023) -- 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 $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 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 early 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
Transcontinental Realty Investors Inc. published this content on 10 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2023 19:36:00 UTC.
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.