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DALLAS--(BUSINESS WIRE)--Nov 10, 2022--
American Realty Investors, Inc. (NYSE:ARL) is reporting its results of operations for the quarter ended September 30, 2022. For the three months ended September 30, 2022, we reported net income attributable to the Company of $302.3 million or $18.72 per diluted share, compared to net income of $19.4 million or $1.20 per diluted share for the same period in 2021.
Financial Highlights
Financial Results
Rental revenues decreased $2.1 million from $9.6 million for the three months ended September 30, 2021 to $7.6 million for the three months ended September 30, 2022. The decrease in rental revenue is primarily due to the sale of 600 Las Colinas in 2021 and the sale of Toulon in the first quarter of 2022.
Net operating loss decreased $2.0 million from $5.2 million for three months ended September 30, 2021 to $3.2 million for the three months ended September 30, 2022. The decrease in net operating loss is primarily due to a reduction of legal costs related to the Clapper litigation and arbitration settlement in 2021 offset in part by net operating profit from the sale of 600 Las Colinas in 2021.
Net income attributable to the Company increased $282.9 million from $19.4 million for the three months ended September 30, 2021 to $302.3 million for the three months ended September 30, 2022. The increase in net income is primarily attributed to our share of the gain on the sale of the 45 properties by VAA, offset in part by the tax expense from the sale.
About American Realty Investors, Inc.
American 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. The Company’s primary asset and source of its operating results is its investment in Transcontinental Realty Investors, Inc. (NYSE:TCI). For more information, visit the Company’s website at www.americanrealtyinvest.com.
| AMERICAN REALTY INVESTORS, INC. | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
| Revenues: | ||||||||||||||||
| Rental revenues | $ | 7,570 |
| $ | 9,628 |
| $ | 22,310 |
| $ | 30,183 |
| ||||
| Other income |
| 749 |
|
| 866 |
|
| 1,925 |
|
| 3,242 |
| ||||
| Total revenue |
| 8,319 |
|
| 10,494 |
|
| 24,235 |
|
| 33,425 |
| ||||
| Expenses: | ||||||||||||||||
| Property operating expenses |
| 4,701 |
|
| 5,610 |
|
| 12,541 |
|
| 16,500 |
| ||||
| Depreciation and amortization |
| 2,193 |
|
| 2,935 |
|
| 6,840 |
|
| 9,473 |
| ||||
| General and administrative |
| 3,042 |
|
| 3,698 |
|
| 7,956 |
|
| 12,799 |
| ||||
| Advisory fee to related party |
| 1,571 |
|
| 3,419 |
|
| 7,614 |
|
| 11,594 |
| ||||
| Total operating expenses |
| 11,507 |
|
| 15,662 |
|
| 34,951 |
|
| 50,366 |
| ||||
| Net operating loss |
| (3,188 | ) |
| (5,168 | ) |
| (10,716 | ) |
| (16,941 | ) | ||||
| Interest Income |
| 9,482 |
|
| 6,128 |
|
| 25,683 |
|
| 17,388 |
| ||||
| Interest expense |
| (6,491 | ) |
| (7,057 | ) |
| (19,047 | ) |
| (22,476 | ) | ||||
| Gain (loss) on foreign currency transactions |
| 1,533 |
|
| (1,639 | ) |
| 19,437 |
|
| 1,185 |
| ||||
| Loss on extinguishment of debt |
| (1,166 | ) |
| (1,451 | ) |
| (2,805 | ) |
| (1,451 | ) | ||||
| Equity in income from unconsolidated joint ventures |
| 464,143 |
|
| 3,543 |
|
| 471,385 |
|
| 11,451 |
| ||||
| Gain on sale or write-down of assets, net |
| 1,539 |
|
| 31,312 |
|
| 16,580 |
|
| 24,265 |
| ||||
| Income tax provision |
| (81,548 | ) |
| (605 | ) |
| (81,616 | ) |
| 1,196 |
| ||||
| Net income |
| 384,304 |
|
| 25,063 |
|
| 418,901 |
|
| 14,617 |
| ||||
| Net income attributable to noncontrolling interest |
| (82,015 | ) |
| (5,652 | ) |
| (88,986 | ) |
| (4,466 | ) | ||||
| Net income attributable to the Company | $ | 302,289 |
| $ | 19,411 |
| $ | 329,915 |
| $ | 10,151 |
| ||||
| Earnings per share | ||||||||||||||||
| Basic and diluted | $ | 18.72 |
| $ | 1.20 |
| $ | 20.43 |
| $ | 0.63 |
| ||||
| Weighted average common shares used in computing earnings per share | ||||||||||||||||
| Basic and diluted |
| 16,512,043 |
|
| 16,152,043 |
|
| 16,152,043 |
|
| 16,152,043 |
|
View source version on businesswire.com:https://www.businesswire.com/news/home/20221110005104/en/
CONTACT: American Realty Investors, Inc.
Investor Relations
Erik Johnson (469) 522-4200
Investor.relations@americanrealtyinvest.com
KEYWORD: UNITED STATES NORTH AMERICA TEXAS
INDUSTRY KEYWORD: PROFESSIONAL SERVICES OTHER PROFESSIONAL SERVICES RESIDENTIAL BUILDING & REAL ESTATE COMMERCIAL BUILDING & REAL ESTATE FINANCE CONSTRUCTION & PROPERTY REIT
SOURCE: American Realty Investors, Inc.
Copyright Business Wire 2022.
PUB: 11/10/2022 04:30 PM/DISC: 11/10/2022 04:32 PM
http://www.businesswire.com/news/home/20221110005104/en