American Realty Investors(ARL) - 2023 Q4 - Annual Results

Financial Performance - For Q4 2023, American Realty Investors, Inc. reported a net loss attributable to common shares of $2.1 million or$0.13 per diluted share, a significant decrease from a net income of $43.4 million or$2.69 per diluted share in Q4 2022 [2][5]. - Net operating income decreased by $3.6 million, resulting in a net operating loss of$2.2 million for Q4 2023, compared to a net operating income of $1.4 million in Q4 2022 [4]. - The decrease in net income was primarily due to a$72.6 million decrease in gain on sale, remeasurement, or write-down of assets [5]. - Total revenue for Q4 2023 was $14.0 million, up from$13.3 million in Q4 2022 [8]. Occupancy and Rental Revenue - Total occupancy was 77% as of December 31, 2023, with multifamily properties at 92% and commercial properties at 49% [3]. - Rental revenues increased by $1.0 million from$11.8 million in Q4 2022 to $12.8 million in Q4 2023, primarily driven by a$0.9 million increase in multifamily properties [4]. - Property operating expenses increased by $1.5 million from$5.8 million in Q4 2022 to $7.3 million in Q4 2023 [8]. Construction and Financing - The company entered into a$25.4 million construction loan for a 216-unit multifamily property in McKinney, Texas, expected to be completed in 2025 [3]. - A second construction loan of $23.5 million was secured for another 216-unit multifamily property in Temple, Texas, also expected to be completed in 2025 [3]. - The company extended the maturity of its loan on Windmill Farms to February 28, 2026, at an interest rate of 7.50% [3].