TCI Transcontinental Realty Investment Inc

Transcontinental Realty Investors, Inc. (NYSE:TCI) is reporting its results of operations for the quarter ended June 30, 2022. For the three months ended June 30, 2022, we reported net income attributable to the Company of $16.5 million or $1.91 per diluted share, compared to a net loss of $30.7 million or $3.56 per diluted share for the same period in 2021.

Financial Highlights

• We collected approximately 97% of our rents for the three months ended June 30, 2022, comprised of approximately 98% from multifamily tenants and approximately 96% from office tenants.
• Total occupancy was 90% at June 30, 2022, which includes 93% at our multifamily properties and 69% at our commercial properties.

Financial Results

Rental revenues decreased $2.9 million from $10.2 million for the three months ended June 30, 2021 to $7.3 million for the three months ended June 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 $2.4 million from $5.2 million for three months ended June 30, 2021 to $2.8 million for the three months ended June 30, 2022. The decrease in net operating loss is primarily due to a reduction of legal costs related to the 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 $47.2 million from a loss of $30.7 million for the three months ended June 30, 2021 to net income of $16.5 million for the three months ended June 30, 2022. The increase in net income is primarily attributed to the $29.6 million arbitration settlement of the Earn Out Obligation in 2021 and $18.9 million increase in gain on foreign currency transactions due to the improved exchange rate of the U.S. Dollar to the New Israeli Shekel.

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,

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

  Revenues: Rental revenues

$

7,259

 

$

10,194

 

$

14,740

 

$

20,555

 

Other income

 

511

 

 

601

 

 

817

 

 

2,068

 

Total revenue

 

7,770

 

 

10,795

 

 

15,557

 

 

22,623

 

Expenses: Property operating expenses

 

3,812

 

 

5,058

 

 

7,840

 

 

10,890

 

Depreciation and amortization

 

2,298

 

 

3,211

 

 

4,647

 

 

6,538

 

General and administrative

 

2,061

 

 

3,090

 

 

4,592

 

 

5,736

 

Advisory fee to related party

 

2,446

 

 

4,661

 

 

5,451

 

 

6,910

 

Total operating expenses

 

10,617

 

 

16,020

 

 

22,530

 

 

30,074

 

Net operating loss

 

(2,847

)

 

(5,225

)

 

(6,973

)

 

(7,451

)

Interest Income

 

4,906

 

 

4,662

 

 

10,720

 

 

9,363

 

Interest expense

 

(5,060

)

 

(6,582

)

 

(10,087

)

 

(13,186

)

Gain (loss) on foreign currency transactions

 

14,132

 

 

(4,793

)

 

17,904

 

 

2,824

 

Loss on extinguishment of debt

 

-

 

 

-

 

 

(1,639

)

 

-

 

Equity in income from unconsolidated joint venture

 

1,637

 

 

4,572

 

 

6,343

 

 

7,908

 

Gain (loss) on sale or write-down of assets, net

 

3,893

 

 

(24,445

)

 

15,041

 

 

(8,342

)

Income tax provision

 

(40

)

 

1,233

 

 

(68

)

 

1,193

 

Net income (loss)

 

16,621

 

 

(30,578

)

 

31,241

 

 

(7,691

)

Net income attributable to noncontrolling interest

 

(160

)

 

(155

)

 

(278

)

 

(410

)

Net income (loss) attributable to the Company

$

16,461

 

$

(30,733

)

$

30,963

 

$

(8,101

)

Earnings per share Basic and diluted

$

1.91

 

$

(3.56

)

$

3.58

 

$

(0.94

)

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

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220812005388/en/

Transcontinental Realty Investors, Inc. Investor Relations Erik Johnson (469) 522-4200 Investor.relations@transconrealty-invest.com