Transcontinental Realty Investors(US:TCI)2024-08-08 15:59Debt Management - The company paid off $67.5 million of Series C bonds on January 31, 2023[68]. - The company experienced a loss of $1.7 million on the early extinguishment of debt when paying off Series A and B Bonds[68]. - The company extended the maturity of its loan on Windmill Farms to February 28, 2026, at an interest rate of 7.50%[68]. Construction and Development - 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[69]. - The company entered into a $25.4 million construction loan 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[70]. - 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[71]. - 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 a two-year period starting Q3 2024[68]. - As of June 30, 2024, the company incurred $25.1 million in development costs for the Alera project[69]. - The company incurred $11.8 million in development costs for the Merano project as of June 30, 2024[70]. - The company incurred $6.2 million in development costs for the Bandera Ridge project as of June 30, 2024[71]. Financial Performance - Revenue for the multifamily segment increased to $7,927 million in Q2 2024 from $7,658 million in Q2 2023, a variance of $269 million[79]. - Net income for the six months ended June 30, 2024, was $4,453 million, a decrease of $138 million compared to $4,591 million for the same period in 2023[79]. - Interest income decreased by $4.2 million, primarily due to a $6.0 million decrease in interest income offset by a $1.8 million decrease in interest expense[82]. - Net cash provided by operating activities increased to $3,358 million in the six months ended June 30, 2024, compared to a cash outflow of $8,436 million in the same period in 2023, a variance of $11,794 million[85]. - Funds From Operations (FFO) for the six months ended June 30, 2024, was $10,356 million, compared to $10,349 million for the same period in 2023[91]. - The company experienced a $132.9 million decrease in cash used in financing activities, primarily due to the repayment of $131.2 million in bonds in 2023[86]. - Operating expenses for the multifamily segment increased to $4,497 million in Q2 2024 from $4,478 million in Q2 2023, a variance of $19 million[79]. - The commercial segment's revenue decreased to $3,261 million in Q2 2024 from $3,731 million in Q2 2023, a decline of $470 million[79]. - General, administrative, and advisory expenses decreased significantly from $5,521 million in Q2 2023 to $3,094 million in Q2 2024, a reduction of $2,427 million[79]. - Net income attributable to the Company for the six months ended June 30, 2024, was $1.498 billion, compared to $530 million for the same period in 2023, representing a significant increase[91]. - Funds from Operations (FFO) for the six months ended June 30, 2024, was $4.635 billion, up from $3.730 billion in the same period of 2023, indicating a growth of approximately 24.2%[91]. - Depreciation and amortization expenses for the six months ended June 30, 2024, were $3.137 billion, slightly down from $3.200 billion in the prior year[91]. - The Company reported no gain on the sale or write down of assets for the current period, contrasting with a loss of $188 million in the previous year[91]. - FFO-adjusted for the six months ended June 30, 2024, was $4.635 billion, compared to $5.418 billion for the same period in 2023, reflecting a decrease of approximately 14.5%[91]. Risk and Compliance - There were no material changes in risk factors from the previous disclosures in the 2023 10-K report[94]. - The Company has maintained effective disclosure controls and procedures as of the end of the reporting period[93]. - There has been no change in internal control over financial reporting that materially affected the Company during the most recent fiscal quarter[94]. - The Company did not report any legal proceedings during the current reporting period[94]. Advisory Agreements - The advisory agreement with Pillar Income Asset Management, Inc. was amended and restated as of May 7, 2024[96].