Transcontinental Realty Investors(TCI) - 2023 Q2 - 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[94]. - The company acquired seven multifamily properties from VAA with a fair value of $219.5 million on November 1, 2022[94]. - The company received an initial 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[98]. Development Projects - The company completed the restoration of Landing Bayou for a total cost of $10.4 million, primarily funded by insurance proceeds[96]. - The company entered into a $33.0 million construction loan for the development of a 240-unit multifamily property in Lake Wales, expected to be completed in 2025[95]. - The company incurred a total of $10.8 million in development costs for the Lake Wales project as of June 30, 2023[95]. - The company spent $2.6 million on ongoing development of Windmill Farms, including $0.5 million on land lots for sale[97]. Financial Performance - Multifamily segment revenue increased to $7,658 million in Q2 2023 from $2,945 million in Q2 2022, a variance of $4,713 million[111]. - Commercial segment revenue decreased to $3,731 million in Q2 2023 from $4,314 million in Q2 2022, a decline of $583 million[111]. - Net income for Q2 2023 was $876 million, down from $16,621 million in Q2 2022, a decrease of $15,745 million[111]. - Funds From Operations (FFO) for Q2 2023 was $3,730 million, down from $19,711 million in Q2 2022[123]. Cash Flow and Financing - Cash used in operating activities was $8,436 million for the six months ended June 30, 2023, compared to $7,517 million in the same period of 2022, an increase of $919 million[116]. - Cash used in investing activities was $8,774 million for the six months ended June 30, 2023, a decrease of $41,068 million compared to $32,294 million in 2022[116]. - Cash used in financing activities increased to $135,291 million in the first half of 2023 from $39,839 million in 2022, a rise of $95,452 million[118]. - The company anticipates that cash and cash equivalents as of June 30, 2023, will be sufficient to meet all cash requirements[115]. Debt Management - The company paid off $67.5 million of Series C bonds on January 31, 2023[94]. - The company extended the maturity of its loan on Windmill Farms until February 28, 2024, at a revised interest rate of 7.75%[94]. - Interest income increased by $4.1 million, while interest expense decreased by $2.1 million, resulting in a net change of $6.2 million[112]. Joint Ventures - The decrease in income from joint ventures was primarily due to the disposition of properties held by VAA in 2022[112]. - The company used proceeds from the VAA Sale Portfolio to invest in short-term investments, pay down debt, and for general corporate purposes[100].