Transcontinental Realty Investors(TCI) - 2025 Q1 - Quarterly Results

Q1 2025 Earnings Release Overview Q1 2025 Financial Performance Summary Q1 2025 net income and EPS grew significantly, fueled by higher rental income, reduced operating loss, and real estate transaction gains Financial Performance Summary | Metric | Q1 2025 | Q1 2024 | Change | Change Rate | | :-------------------------------- | :------------- | :------------- | :--- | :----- | | Net Income Attributable to Common Stock | $4.6 million | $2.5 million | +$2.1 million | +84% | | Diluted Earnings Per Share | $0.53 | $0.30 | +$0.23 | +76.7% | | Rental Income | $11.4 million | $11.3 million | +$0.1 million | +0.9% | | Net Operating Loss | $0.6 million | $1.3 million | -$0.7 million | -53.8% | | Operating Expenses | - | - | -$0.6 million | - | - Rental income growth was primarily attributed to increased rents from multi-family residential properties[2] - The reduction in net operating loss was mainly due to decreased insurance and property tax costs, resulting in a $0.6 million decrease in operating expenses[3] - Net income growth was primarily attributed to increased real estate transaction gains, partially offset by reduced interest income and increased tax provisions[4] Operational Highlights Q1 2025 operational highlights include an 80% overall occupancy rate and significant gains from single-family residential lot sales Occupancy Rates | Metric | As of March 31, 2025 | | :--- | :------------- | | Total Occupancy Rate | 80% | | Multi-family Occupancy Rate | 94% | | Commercial Property Occupancy Rate | 53% | - On December 13, 2024, the company sold 30 single-family residential lots at Windmill Farms for $1.4 million, realizing a sales gain of $1.1 million[7] Company Information This Dallas-based real estate investment company holds a diversified portfolio of properties and employs various investment approaches - The company is a Dallas-based real estate investment firm[5] - The company holds a diversified equity real estate investment portfolio across the United States, including office buildings, apartments, shopping centers, and developed and undeveloped land[5] - The company invests in real estate through direct ownership, leases, and partnerships, and also invests in real estate mortgages while holding mortgage receivables[5] Consolidated Financial Statements Consolidated Statements of Operations (Unaudited) This section details the consolidated statements of operations for Q1 2025 and 2024, outlining revenues, expenses, and net income Consolidated Statements of Operations | Item | Three Months Ended March 31, 2025 (in thousand USD) | Three Months Ended March 31, 2024 (in thousand USD) | | :--------------------------------- | :----------------------------- | :----------------------------- | | Revenues: | | | | Rental income | 11,427 | 11,279 | | Other income | 581 | 620 | | Total revenues | 12,008 | 11,899 | | Expenses: | | | | Property operating expenses | 5,977 | 6,634 | | Depreciation and amortization | 2,883 | 3,172 | | General and administrative expenses | 1,352 | 1,261 | | Advisory fees to affiliates | 2,431 | 2,165 | | Total operating expenses | 12,643 | 13,232 | | Net operating loss | (635) | (1,333) | | Interest income | 4,628 | 6,127 | | Interest expense | (1,781) | (1,869) | | Equity in earnings of unconsolidated joint ventures | — | 435 | | Net gain on sale or impairment of assets | 3,891 | — | | Provision for income taxes | (1,322) | (603) | | Net income | 4,781 | 2,757 | | Net income attributable to noncontrolling interests | (163) | (208) | | Net income attributable to the Company | 4,618 | 2,549 | | Earnings per share: | | | | Basic and diluted | $0.53 | $0.30 | | Weighted average common shares outstanding for EPS calculation | 8,639,316 | 8,639,316 |