Transcontinental Realty Investors(TCI) - 2024 Q3 - Quarterly Report

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].