Transcontinental Realty Investors(US:TCI)2025-11-06 18:22Financial Performance - Net income for Q3 2025 decreased to $884,000, down 53.7% from $1,910,000 in Q3 2024[107] - Nine-month net income for 2025 was $5,989,000, a decrease of 5.9% compared to $6,363,000 in 2024[107] - Funds From Operations (FFO) for Q3 2025 was $3,660,000, down 24.1% from $4,827,000 in Q3 2024[120] Revenue Growth - Multifamily segment revenue for Q3 2025 was $8,528,000, a 3.2% increase from $8,266,000 in Q3 2024[107] - Commercial segment revenue for Q3 2025 was $4,307,000, a 28.9% increase from $3,341,000 in Q3 2024[107] Cash Flow - Cash used in operating activities for the nine months ended September 30, 2025, was $(2,175,000), a decrease of $19,232,000 from $17,057,000 in 2024[112] - Cash used in investing activities increased by $22,121,000 to $(49,203,000) in 2025, primarily due to a $37.2 million increase in development and renovation of real estate[113] - Cash provided by financing activities increased by $40,546,000 in 2025, driven by a $44.2 million increase in borrowings on construction loans[114] Development Projects - The company has four ongoing development projects with a total projected cost of $206.8 million, of which $151.9 million has been incurred as of September 30, 2025[94] - During the nine months ended September 30, 2025, the company incurred $59.2 million in development costs, funded in part by $54.9 million in construction loans[95] - The company has entered into a $27.5 million construction loan for the development of Mountain Creek, maturing on June 17, 2027[93] Asset Transactions - The company sold 30 single-family lots for $1.4 million on December 13, 2024, resulting in a gain of $1.1 million[93] - The company sold Villas at Bon Secour, a 200-unit multifamily property, for $28.0 million on October 10, 2025[93] - The company acquired 21,678 shares of IOR for $0.5 million during the Tender Offer completed on January 29, 2025[96] - The company purchased an additional 32,845 common shares of IOR for $0.6 million during the nine months ended September 30, 2025[97] Legal and Settlement Gains - The company received $3.5 million from a condemnation settlement, resulting in a gain of $3.1 million on March 25, 2025[93] Liquidity and Financial Strategy - The company anticipates that cash and cash equivalents as of September 30, 2025, will be sufficient to meet all cash requirements[111] - The company plans to selectively sell land and income-producing assets to meet liquidity requirements[111] Debt Management - The company extended the maturity of its loan on Windmill Farms to February 28, 2026, at an interest rate of 7.50%[93] - As of September 30, 2025, the company has $55.7 million in District Receivables related to the Windmill Farms project[91]