American Realty Investors(US:ARL)2023-08-09 16:00Property Transactions - The company sold Toulon, a 240-unit multifamily property, for $26.8 million, resulting in a gain of $9.4 million[107]. - The company acquired seven multifamily properties from VAA with a fair value of $219.5 million on November 1, 2022[107]. - The VAA Sale Portfolio generated a gain of $738.4 million from the sale of 45 properties for $1.8 billion[110]. - The company received an initial distribution of $182.8 million from VAA in connection with the VAA Sale Portfolio[110]. - The company completed the restoration and lease-up of Landing Bayou for a total cost of $10.4 million, primarily funded by insurance proceeds[108]. Development Projects - The company entered into a $33.0 million construction loan for the development of a 240-unit multifamily property in Lake Wales, Florida, expected to be completed in 2025[108]. - The company incurred a total of $10.8 million in development costs for the Lake Wales project as of June 30, 2023[108]. - The company spent $2.6 million on ongoing development of Windmill Farms during 2023[109]. Financial Performance - Multifamily segment revenue increased to $7,658 million for the three months ended June 30, 2023, up from $2,945 million in the same period of 2022, a variance of $4,713 million[121]. - Commercial segment revenue decreased to $3,731 million for the three months ended June 30, 2023, down from $4,314 million in the same period of 2022, a variance of $(583) million[121]. - Net income for the three months ended June 30, 2023, was $303 million, a decrease of $19,727 million compared to $20,030 million for the same period in 2022[121]. - The company reported a $30.1 million decrease in net income for the six months ended June 30, 2023, compared to the same period in 2022[122]. - Interest income increased by $3.3 million for the six months ended June 30, 2023, while interest expense decreased by $3.6 million, contributing to improved net income[122]. Cash Flow - Net cash used in operating activities was $(8,455) million for the six months ended June 30, 2023, compared to $(8,993) million for the same period in 2022, a variance of $538 million[125]. - Net cash used in investing activities was $(8,774) million for the six months ended June 30, 2023, a decrease of $(42,568) million compared to $33,794 million in the same period of 2022[125]. - Net cash used in financing activities increased to $(135,291) million for the six months ended June 30, 2023, compared to $(39,839) million in the same period of 2022, a variance of $(95,452) million[125]. - The company anticipates that cash and cash equivalents as of June 30, 2023, will be sufficient to meet all cash requirements[124]. Funds From Operations (FFO) - Funds From Operations (FFO) is used as a supplemental measure for the real estate industry, excluding gains or losses from property sales and including real estate-related depreciation and amortization[128]. - Net income attributable to the Company for 2023 was $125 million, a significant decrease from $16,312 million in 2022[132]. - FFO-adjusted for 2023 was $5,093 million, slightly down from $5,372 million in 2022[132]. - Depreciation and amortization increased to $3,200 million in 2023 from $2,298 million in 2022[132]. - The Company reported a loss on extinguishment of debt amounting to $1,710 million in 2023, compared to no loss in 2022[132]. - Gain on sale of land was $188 million in 2023, down from $2,763 million in 2022[132]. - The Company experienced a gain on foreign currency transactions of $(22) million in 2023, compared to a loss of $(14,132) million in 2022[132]. - FFO-Basic and Diluted for 2023 was $3,405 million, a decrease from $19,504 million in 2022[132]. - Gain on sale or write down of assets was $(188) million in 2023, compared to $(3,893) million in 2022[132]. - Depreciation and amortization on unconsolidated joint ventures at pro rata share was $80 million in 2023, down from $2,024 million in 2022[132]. - The Company reported a total of $10,251 million in FFO-adjusted for the 30, 2023 period, compared to $9,312 million for the same period in 2022[132].