American Realty Investors(ARL) - 2025 Q1 - Quarterly Results

Q1 2025 Earnings Release Financial Highlights For the first quarter of 2025, American Realty Investors reported a significant increase in net income attributable to common shares, rising to $3.0 million from $1.8 million in the prior year's quarter, primarily driven by a gain on real estate transactions and a $0.6 million reduction in operating expenses, which more than offset a slight increase in rental revenue, consequently, diluted earnings per share (EPS) grew to $0.18 from $0.11 year-over-year | Financial Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Income to Common Shares | $3.0 million | $1.8 million | +$1.2 million | | Diluted EPS | $0.18 | $0.11 | +$0.07 | | Rental Revenues | $11.4 million | $11.3 million | +$0.1 million | | Net Operating Loss | ($0.8 million) | ($1.5 million) | +$0.7 million | - The increase in net income is primarily attributed to a higher gain on real estate transactions, partially offset by lower interest income and a higher income tax provision[4] - The net operating loss decreased mainly due to a $0.6 million reduction in operating expenses, specifically from lower insurance and property tax costs[3] Operational Highlights As of March 31, 2025, the company's total portfolio occupancy stood at 80%, composed of strong performance in multifamily properties at 94% occupancy, while commercial properties were at 53%, additionally realizing a $1.1 million gain from the sale of 30 single-family lots in December 2024 - Portfolio occupancy as of March 31, 2025: - Total Occupancy: 80% - Multifamily Properties: 94% - Commercial Properties: 53%[6] - On December 13, 2024, the company sold 30 single-family lots from its Windmill Farms holdings for $1.4 million, resulting in a gain on sale of $1.1 million[6] Consolidated Statements of Operations The Q1 2025 consolidated statement of operations shows total revenues of $12.0 million, a slight increase from $11.9 million in Q1 2024, with a notable decrease in property operating expenses contributing to total operating expenses falling to $12.8 million from $13.4 million, and a significant $3.9 million gain on real estate transactions being the primary driver for the increase in net income to $4.0 million, compared to $2.3 million in the prior-year period | (In thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenue | $12,008 | $11,899 | | Total Operating Expenses | $12,821 | $13,416 | | Net Operating Loss | ($813) | ($1,517) | | Gain on real estate transactions | $3,891 | $— | | Net Income | $3,963 | $2,302 | | Net Income Attributable to Common Shares | $2,965 | $1,751 | About the Company American Realty Investors, Inc. is a Dallas-based real estate investment company with a diverse portfolio of equity real estate across the U.S., including office buildings, apartments, shopping centers, and land, and its primary asset and main driver of operating results is its investment in Transcontinental Realty Investors, Inc. (NYSE: TCI) - The company holds a diverse portfolio of U.S. real estate, including office buildings, apartments, shopping centers, and land, investing through direct ownership, leases, partnerships, and mortgage loans[5] - The company's primary asset and source of operating results is its investment in Transcontinental Realty Investors, Inc. (NYSE: TCI)[5]