Transcontinental Realty Investors(TCI) - 2023 Q1 - Quarterly Report

Property Transactions - The company sold Toulon, a 240-unit multifamily property, for $26.8 million, resulting in a gain of $9.4 million[98]. - The company acquired seven multifamily properties from VAA with a fair value of $219.5 million on November 1, 2022[98]. - The company received a distribution of $182.8 million from VAA following the sale of 45 properties for $1.8 billion, resulting in a gain of $738.4 million to the joint venture[102]. - The company sold a total of 26.9 acres of land for $5.1 million, resulting in gains of $4.2 million during the year ended December 31, 2022[98]. Development Projects - The company entered into a development agreement for a 240-unit multifamily property in Lake Wales, Florida, with a total cost of approximately $55.3 million, funded in part by a $33.0 million construction loan[99]. - The company incurred $10.4 million in restoration costs for Landing Bayou, funded substantially by insurance proceeds, with completion expected by the end of 2023[100]. - The company incurred a total of $10.1 million in development costs for the Lake Wales project as of March 31, 2023[99]. Financial Performance - Multifamily segment revenue increased to $7,373 million in Q1 2023 from $3,229 million in Q1 2022, a variance of $4,144 million[115]. - Commercial segment revenue decreased to $3,636 million in Q1 2023 from $4,252 million in Q1 2022, a variance of $(616) million[115]. - Net income for Q1 2023 was $3,715 million, down from $14,620 million in Q1 2022, a decrease of $10,905 million[115]. - Interest income increased by $4,000 million due to higher interest rates and increased short-term investments[116]. - Funds From Operations (FFO) for Q1 2023 was $6,619 million, compared to $5,113 million in Q1 2022, an increase of $1,506 million[128]. Cash Flow and Financing - Cash provided by operating activities improved to $1,533 million in Q1 2023 from $(4,178) million in Q1 2022, a variance of $5,711 million[120]. - Cash used in investing activities increased to $(24,212) million in Q1 2023 from $5,646 million in Q1 2022, a variance of $(29,858) million[120]. - Cash used in financing activities rose to $(89,127) million in Q1 2023 from $(38,769) million in Q1 2022, an increase of $(50,358) million[120]. - The company anticipates sufficient cash and cash equivalents to meet all cash requirements as of March 31, 2023[119]. Debt Management - The company paid off $67.4 million of Series C bonds on January 31, 2023[98]. - The company extended the maturity of its loan on Windmill Farms until February 28, 2024, at a revised interest rate of 7.75%[98]. Joint Ventures - The decrease in income from joint ventures was primarily due to the sale of the VAA Sale Portfolio in 2022[116].