NEWS RELEASE Contact: Transcontinental Realty Investors, Inc. Investor Relations Erik Johnson (469) 522-4200 investor.relations@transconrealty-invest.com Net operating loss decreased $0.3 million from $1.1 million for the three months ended June 30, 2024 to $0.8 million for the three months ended June 30, 2025. Our decrease in net operating loss was due to a $0.1 million decrease in operating expenses. The decrease in operating expenses is primarily due to a decrease in the cost of insurance and property ta ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to________ Commission File Number 001-09240 TRANSCONTINENTAL REALTY INVESTORS, INC. (Exact Name of Registrant as Specified in Its Charter) (Sta ...

Transcontinental Realty Investors, Inc. Investor Relations Erik Johnson (469) 522-4200 investor.relations@transconrealty-invest.com Net income attributable to the Company increased $2.1 million from $2.5 million for the three months ended March 31, 2024 to $4.6 million for the three months ended March 31, 2025. The increase in net income is primarily attributed to an increase in gain on real estate transactions offset in part by a decrease in interest income and an increase in tax provision for the three mo ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to________ Commission File Number 001-09240 TRANSCONTINENTAL REALTY INVESTORS, INC. (Exact Name of Registrant as Specified in Its Charter) (St ...

Financial Performance - For Q4 2024, Transcontinental Realty Investors reported net income attributable to common shares of $0.1 million or $0.01 per diluted share, a significant improvement from a net loss of $2.6 million or $0.30 per diluted share in Q4 2023[2][6]. - The company reported a net income attributable to the Company of $5.9 million for the twelve months ended December 31, 2024, compared to $5.9 million in 2023[10]. Revenue and Occupancy - Rental revenues decreased by $1.6 million from $12.8 million in Q4 2023 to $11.2 million in Q4 2024, primarily due to a decrease in occupancy at commercial properties[4]. - Total revenue for the twelve months ended December 31, 2024, was $47.1 million, down from $49.9 million in 2023[10]. - Total occupancy was 81% as of December 31, 2024, with multifamily properties at 94% and commercial properties at 53%[7]. Operating Expenses and Losses - Net operating loss decreased by $0.4 million from $2.1 million in Q4 2023 to $1.7 million in Q4 2024, attributed to a $2.1 million decrease in operating expenses[5]. New Developments and Investments - A new lease at Stanford Center, completed on October 18, 2024, is expected to increase occupancy by 14% and rent per square foot by 20% over recent expired leases[7]. - The company secured a $27.5 million construction loan for a 234-unit multifamily property in Dallas, expected to be completed in 2026 at a total cost of approximately $49.8 million[7]. Asset Sales and Gains - The sale of 30 single-family lots from Windmill Farms generated $1.4 million, resulting in a gain of $1.1 million[7]. Interest Income and Expenses - Interest income increased to $4.6 million in Q4 2024 from $3.0 million in Q4 2023, while interest expense slightly decreased[10].

Debt and Indebtedness - Total indebtedness as of December 31, 2024, was approximately $181.9 million, with 69.5% ($126.3 million) insured by HUD[55][56]. - The company operates with a policy of incurring indebtedness only when advisable, as determined by the Board of Directors and management[64]. - Additional indebtedness could be incurred through borrowing under a line of credit, mortgaging properties, restructuring existing debt, or issuing debt securities[64]. - Indebtedness may affect the company's ability to obtain additional financing for working capital, capital expenditures, acquisitions, or other corporate purposes[65]. - The company could become more vulnerable to downturns in business or the economy due to increased indebtedness[65]. Operational Risks - The company faces risks associated with increased operating costs, including insurance, maintenance, and administrative costs, which could adversely affect cash flow and shareholder distributions[49]. - The company is reliant on third-party management companies for property operations, which may impact profitability if these managers fail to perform effectively[47][48]. - The company may experience challenges in leasing newly-completed properties, which could result in lower than projected rental rates and reduced income[51]. - The company may face challenges in achieving growth in operating income due to potential difficulties in property acquisitions and redevelopment activities[52][53]. Market and Economic Conditions - The company’s performance is significantly dependent on economic conditions in its primary markets located in the Southern United States[54]. - Rising interest rates could increase costs on variable rate debt, adversely affecting cash flow and the ability to refinance existing debt[59]. - The company is exposed to competition from other real estate investors, which may affect its ability to attract tenants and acquire properties[39][40]. Development and Project Risks - The company intends to continue developing properties where market conditions warrant, with ongoing projects that may face risks such as construction delays and cost overruns[50]. - The company may not be able to sell properties quickly due to the illiquid nature of real estate investments, impacting cash flow[41][61].

Financial Performance - Net income attributable to common shares decreased by $2.7 million from $4.5 million in Q3 2023 to $1.7 million in Q3 2024, representing a 60% decline [5]. - Rental revenues decreased by $0.8 million from $11.8 million in Q3 2023 to $11.1 million in Q3 2024, a decline of approximately 6.8% [3]. - Total revenue for Q3 2024 was $11.6 million, down from $12.5 million in Q3 2023, reflecting a decrease of approximately 7.3% [7]. - Interest income decreased from $9.7 million in Q3 2023 to $5.9 million in Q3 2024, a decline of about 39.5% [7]. - Net operating loss decreased by $0.1 million from $1.8 million in Q3 2023 to $1.7 million in Q3 2024, primarily due to reduced general and administrative expenses [4]. Occupancy and Leasing - Total occupancy was reported at 79% as of September 30, 2024, with multifamily properties at 95% and commercial properties at 48% [2]. - A new lease at Stanford Center is expected to increase occupancy by 14% and rent per square foot by 20% compared to recent expired leases, commencing in April 2025 [2]. - The company completed a major renovation at Stanford Center, leading to the first new lease at the property since the renovation [2]. Development and Financing - The company obtained a $27.5 million construction loan for a 234-unit multifamily property in Dallas, expected to be completed in 2026 at a total cost of approximately $49.8 million [2]. - The company replaced an existing loan on Forest Grove with a $6.6 million loan, maturing on August 1, 2031, at an interest rate of SOFR plus 1.85% [2].

Financial Performance - Net income decreased by $2.9 million to $1.910 billion for the three months ended September 30, 2024, compared to $4.762 billion in the same period of 2023[94]. - Net income attributable to the Company for the three months ended September 30, 2024, was $1.707 million, a decrease of 61.7% from $4.451 million in the same period of 2023[108]. - Funds From Operations (FFO) decreased to $4.827 billion for the three months ended September 30, 2024, down from $7.764 billion in the same period of 2023[108]. - Funds from Operations (FFO) for the three months ended September 30, 2024, was $4.827 million, down 37.5% from $7.764 million in the same period of 2023[108]. - FFO-adjusted for the nine months ended September 30, 2024, was $15.183 million, a decrease of 19.5% compared to $18.830 million for the same period in 2023[108]. - The multifamily segment's profit increase was attributed to a $0.7 million rise from the Redevelopment Property due to lease-up in 2023[95]. Revenue and Income - Multifamily segment revenue increased to $7.967 billion for the three months ended September 30, 2024, up from $7.899 billion in the same period of 2023, representing a $68 million increase[92]. - Interest income decreased by $3.9 million to $3.842 billion for the three months ended September 30, 2024, primarily due to lower interest rates on UHF notes and Pillar Receivable[94]. Cash Flow and Expenses - Cash provided by operating activities increased by $9.211 million to $17.057 billion for the nine months ended September 30, 2024, compared to $7.846 billion in the same period of 2023[100]. - Cash used in investing activities increased by $17.516 million to $27.082 billion for the nine months ended September 30, 2024, primarily due to increased development and renovation costs[101]. - The company experienced a $4.4 million decrease in general, administrative, and advisory expenses for the nine months ended September 30, 2024, primarily due to reduced legal costs[95]. - The Company reported a $131.2 million repayment of bonds in 2023, contributing to a $137.4 million decrease in cash used in financing activities[102]. Development Projects - A $33.0 million construction loan was secured on March 15, 2023, for the development of a 240-unit multifamily property in Lake Wales, Florida, with a total expected cost of approximately $55.3 million[78]. - A $25.4 million construction loan was entered into on November 6, 2023, for the development of a 216-unit multifamily property in McKinney, Texas, with a total expected cost of approximately $51.9 million[79]. - A $23.5 million construction loan was secured on December 15, 2023, for the development of a 216-unit multifamily property in Temple, Texas, with a total expected cost of approximately $49.6 million[80]. - A $27.5 million construction loan was entered into on October 21, 2024, for the development of a 234-unit multifamily property in Dallas, Texas, with a total expected cost of approximately $49.8 million[81]. - The company has agreements to develop 125 acres of land into approximately 470 lots for single-family homes at a total cost of $24.3 million, expected to be completed over two years starting in Q4 2024[77]. - The company incurred a total of $31.9 million in development costs for the Alera project as of September 30, 2024[78]. - The company incurred a total of $11.1 million in development costs for the Bandera Ridge project as of September 30, 2024[80]. Operational Changes - The company experienced variations in results of operations due to transactions affecting properties, including redevelopment and acquisition properties[88]. - The company defines "Same Properties" as all properties except those recently constructed, acquired, or disposed of, impacting revenue comparisons[89]. Internal Controls and Legal Matters - The Company reported no changes in internal control over financial reporting during the most recent fiscal quarter[110]. - There were no material changes from the risk factors previously disclosed in the 2023 10-K[111]. - The Company has not engaged in any legal proceedings during the reporting period[111]. - The advisory agreement with Pillar Income Asset Management, Inc. was amended and restated as of May 7, 2024[113]. - The Company’s disclosure controls and procedures were effective as of the end of the reporting period[110].

Core Insights - Power Solutions International, Inc. (PSI) is showcasing its products at TCI Expo 2024, highlighting its leadership in emission-certified engines and power systems [1][4] Product Highlights - PSI's 8.8-liter industrial engine, the most powerful off-road spark ignited engine available, will be featured in a woodchipper by Dyna Products at Booth 2667 [2] - The company will also display its patented 30kw lithium-ion all electric power unit at the Morbark booth, Booth 2715, alongside Morbark's BVR 10 Model woodchipper powered by PSI's 2.4-liter gasoline engine [2] - Bandit will showcase two woodchippers powered by PSI engines: the new 12XC with a 2.4-liter gasoline engine and the 12XP with a 4.3-liter gasoline engine at Booth 3081 [3] Company Overview - PSI specializes in the design, engineering, and manufacturing of a wide range of advanced, emission-certified engines and power systems, providing integrated turnkey solutions to global OEMs and end-users [4] - The company offers power systems for various applications, including stationary and mobile power generation, industrial equipment, and medium-duty trucks and buses [5]

Financial Performance - Net income attributable to common shares increased to $1.5 million or $0.17 per diluted share for Q2 2024, compared to $0.5 million or $0.06 per diluted share in Q2 2023, representing a 200% increase in net income [1][4]. - Net operating loss decreased by $2.4 million from $3.5 million in Q2 2023 to $1.1 million in Q2 2024, attributed to lower general and administrative expenses [3]. - Total revenue for Q2 2024 was $11.8 million, down from $12.2 million in Q2 2023, reflecting a decrease of approximately 3.8% [6]. Occupancy Rates - Total occupancy rate was 78% as of June 30, 2024, with multifamily properties at 93% occupancy and commercial properties at 48% occupancy [2]. Revenue Changes - Rental revenues decreased by $0.2 million from $11.4 million in Q2 2023 to $11.2 million in Q2 2024, primarily due to a $0.5 million decrease in commercial property revenues [3]. - Interest income decreased from $8.5 million in Q2 2023 to $5.2 million in Q2 2024, a decline of about 39% [6]. Expenses - General and administrative expenses dropped significantly from $3.5 million in Q2 2023 to $1.4 million in Q2 2024, a reduction of approximately 60% [6]. Financing Activities - The company replaced an existing loan on Forest Grove with a new $6.6 million loan at SOFR plus 1.85%, maturing on July 10, 2031 [2]. Share Information - The weighted average common shares used in computing earnings per share remained constant at 8,639,316 for both Q2 2024 and Q2 2023 [6]. Portfolio Overview - The company holds a diverse portfolio of equity real estate across the U.S., including office buildings, apartments, and shopping centers [5].