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DALLAS--(BUSINESS WIRE)--Mar 23, 2023--
Transcontinental Realty Investors, Inc. (NYSE:TCI) is reporting its results of operations for the quarter ended December 31, 2022. For the three months ended December 31, 2022, we reported net income attributable to the common shares of $58.9 million or $6.82 per diluted share, compared to a net loss of $8.7 million or $1.01 per diluted share for the same period in 2021.
Financial Highlights
Financial Results
Rental revenues increased $4.1 million from $7.6 million for the three months ended December 31, 2021 to $11.8 million for the three months ended December 31, 2022. The increase in rental revenue is primarily due to a $4.9 million increase at our multifamily properties offset in part by a decrease of $0.7 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 income increased $4.6 million from net operating loss of $4.2 million for three months ended December 31, 2021 to net operating income of $0.5 million for the three months ended December 31, 2022. The increase in net operating income is primarily due to the $4.1 million increase in rental revenue as noted above and a decrease of $1.8 million in general administrative and advisory expenses offset in part by an increase of $1.9 million in property operating and depreciation expenses. The decrease in general administrative and advisory expenses is primarily due to a decrease in legal expenses and the increase in property and depreciation expenses is due to the acquisition of the VAA Holdback Portfolio.
Net income attributable to the Company increased $67.7 million from a net loss of $8.7 million for the three months ended December 31, 2021 to net income of $58.9 million for the three months ended December 31, 2022. The increase in net income is primarily attributed to $72.2 million increase in gain on sale, remeasurement or write down of assets offset in part by a $15.1 million increase in our tax provision. The increase in gain on our sale or write down of assets and our tax provision is due to the remeasurement of the VAA Holdback Portfolio that was acquired 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) | ||||||||||||||||||
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| Three Months Ended |
| Nine Months Ended | ||||||||||||
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| 2022 |
| 2021 |
| 2022 |
| 2021 | ||||||||
| Revenues: | ||||||||||||||||||
| Rental revenues | $ | 11,770 |
| $ | 7,625 |
| $ | 34,080 |
| $ | 37,808 |
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| Other income |
| 1,014 |
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| 492 |
|
| 2,580 |
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| 2,966 |
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| Total revenue |
| 12,784 |
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| 8,117 |
|
| 36,660 |
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| 40,774 |
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| Expenses: | ||||||||||||||||||
| Property operating expenses |
| 5,798 |
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| 4,360 |
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| 18,339 |
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| 20,860 |
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| Depreciation and amortization |
| 2,846 |
|
| 2,397 |
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| 9,686 |
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| 11,870 |
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| General and administrative |
| 2,595 |
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| 3,876 |
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| 9,943 |
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| 12,425 |
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| Advisory fee to related party |
| 1,089 |
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| 1,638 |
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| 7,974 |
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| 11,782 |
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| Total operating expenses |
| 12,328 |
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| 12,271 |
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| 45,942 |
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| 56,937 |
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| Net operating income (loss) |
| 456 |
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| (4,154 | ) |
| (9,282 | ) |
| (16,163 | ) | ||||||
| Interest Income |
| 7,938 |
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| 5,054 |
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| 26,745 |
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| 19,572 |
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| Interest expense |
| (5,026 | ) |
| (5,504 | ) |
| (19,813 | ) |
| (24,600 | ) | ||||||
| Gain (loss) on foreign currency transactions |
| 630 |
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| (7,360 | ) |
| 20,067 |
|
| (6,175 | ) | ||||||
| Loss on early extinguishment of debt |
| - |
|
| - |
|
| (2,805 | ) |
| (1,451 | ) | ||||||
| Equity in (loss) income from unconsolidated joint venture |
| (2,342 | ) |
| 2,996 |
|
| 468,086 |
|
| 14,531 |
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| Gain on sale, remeasurement or write down of assets, net |
| 72,616 |
|
| 382 |
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| 89,196 |
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| 23,352 |
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| Income tax provision |
| (15,085 | ) |
| (26 | ) |
| (103,190 | ) |
| 1,011 |
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| Net income (loss) |
| 59,187 |
|
| (8,612 | ) |
| 469,004 |
|
| 10,077 |
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| Net income attributable to noncontrolling interest |
| (239 | ) |
| (135 | ) |
| (742 | ) |
| (679 | ) | ||||||
| Net income (loss) attributable to the Company | $ | 58,948 |
| $ | (8,747 | ) | $ | 468,262 |
| $ | 9,398 |
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| Earnings per share | ||||||||||||||||||
| Basic and diluted | $ | 6.82 |
| $ | (1.01 | ) | $ | 54.20 |
| $ | 1.09 |
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| Weighted average common shares used in computing earnings per share | ||||||||||||||||||
| Basic and diluted |
| 8,639,316 |
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| 8,639,316 |
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| 8,639,316 |
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| 8,639,316 |
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View source version on businesswire.com:https://www.businesswire.com/news/home/20230323005025/en/
CONTACT: Transcontinental Realty Investors, Inc.
Investor Relations
Erik Johnson (469) 522-4200
investor.relations@transconrealty-invest.com
KEYWORD: TEXAS UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: PROFESSIONAL SERVICES RESIDENTIAL BUILDING & REAL ESTATE COMMERCIAL BUILDING & REAL ESTATE FINANCE CONSTRUCTION & PROPERTY REIT
SOURCE: Transcontinental Realty Investors, Inc.
Copyright Business Wire 2023.
PUB: 03/23/2023 04:30 PM/DISC: 03/23/2023 04:32 PM
http://www.businesswire.com/news/home/20230323005025/en