American Realty Investors(US:ARL)2024-03-21 16:52Sales and Gains - The company sold a 50% ownership interest in Overlook at Allensville Phase II for $2.6 million, resulting in a gain of $1.4 million[79]. - The sale of 600 Las Colinas generated $74.8 million, with a gain of $27.3 million, and proceeds were used to pay off the mortgage[80]. - In 2022, the company sold 134.7 acres of land for $20.2 million, resulting in gains of $10.3 million[80]. - The company received $182.8 million from VAA as an initial distribution from the sale of the VAA Sale Portfolio, which totaled $1.8 billion[91]. - Gain on sale of land was $188 in 2023, significantly lower than $4,752 in 2022[115]. Development Projects - The company spent $5.0 million on the ongoing development of Windmill Farms, with an agreement to sell 276 lots for $13.1 million[85]. - A development agreement for a 240 unit multifamily property in Lake Wales is expected to cost approximately $55.3 million, funded partly by a $33.0 million construction loan[86]. - The company incurred a total of $16.9 million in development costs for the Lake Wales project as of December 31, 2023[86]. - A construction loan of $25.4 million was entered into for the development of Merano, expected to be completed in 2025[87]. - The company completed the restoration of Landing on Bayou Cane for a total cost of $16.7 million, primarily funded by insurance proceeds[89]. Financial Performance - Multifamily segment revenue increased to $32,608,000 in 2023 from $17,828,000 in 2022, a variance of $14,780,000[104]. - Operating expenses for the multifamily segment rose to $17,749,000 in 2023 from $9,524,000 in 2022, resulting in an operating income increase of $6,555,000[104]. - Commercial segment revenue decreased to $14,415,000 in 2023 from $16,252,000 in 2022, a decline of $1,837,000[104]. - Net income dropped significantly to $5,251,000 in 2023 from $475,317,000 in 2022, a decrease of $470,066,000[104]. - Interest income, net increased by $8,315,000, primarily due to an $8,000,000 decrease in interest expense and a $300,000 increase in interest income[104]. Funds and Cash Flow - Funds From Operations (FFO) for 2023 was $19,997,000 compared to $43,275,000 in 2022, reflecting a decrease of $23,278,000[115]. - The company anticipates sufficient cash and short-term investments to meet liquidity requirements through 2024[109]. - Cash used in operating activities decreased to $31,054,000 in 2023 from $45,386,000 in 2022, a variance of $14,332,000[111]. - Cash provided by investing activities fell to $26,813,000 in 2023 from $307,357,000 in 2022, a decrease of $280,544,000[112]. - The company plans to selectively sell land and income-producing assets to meet liquidity needs[109]. Income and Expenses - Net income attributable to the Company for 2023 was $3,968, compared to $373,349 in 2022, indicating a significant decrease[115]. - FFO-Basic and Diluted for 2023 was $19,997, down from $43,275 in 2022[115]. - FFO-adjusted for 2023 was $20,714, compared to $41,267 in 2022, reflecting a decline[115]. - Depreciation and amortization on consolidated assets increased to $13,646 in 2023 from $9,686 in 2022[115]. - Loss on early extinguishment of debt was $1,710 in 2023, down from $2,805 in 2022[115]. Asset Management - Loss (gain) on sale, remeasurement or write down of assets was $1,923 in 2023, compared to a gain of $(87,132) in 2022[115]. - Loss on foreign currency transactions was $(993) in 2023, an improvement from $(20,067) in 2022[115]. - Depreciation and amortization on unconsolidated joint ventures at pro rata share was $272 in 2023, down from $8,424 in 2022[115]. - Gain on sale of assets from unconsolidated joint venture at pro rata share was $(265,804) in 2022, with no corresponding figure for 2023[115].