Transcontinental Realty Investors(TCI) - 2023 Q4 - Annual Report

Sales 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 company sold 600 Las Colinas for $74.8 million, resulting in a gain of $27.3 million, using proceeds to pay off the mortgage[79]. - The company completed the sale of 134.7 acres of land for $20.2 million, resulting in gains of $10.3 million[79]. - The company received an initial distribution of $182.8 million from the VAA Sale Portfolio, which sold for $1.8 billion[86]. - The company experienced a $91.1 million change in gain/loss on sale, remeasurement, or write down of assets, from a gain of $89.2 million in 2022 to a loss of $1.9 million in 2023[109]. Development Projects - The company has incurred a total of $16.9 million in development costs for the Lake Wales multifamily property, expected to be completed in 2025[81]. - The company entered into a development agreement for a 216 unit multifamily property in McKinney, Texas, with a total cost of approximately $51.9 million[82]. - The company has agreements to develop 125 acres of land into approximately 470 lots for single-family homes at a total cost of $24.3 million[80]. Financial Performance - Multifamily segment revenue increased to $32,608,000 in 2023 from $17,828,000 in 2022, a variance of $14,780,000[101]. - Commercial segment revenue decreased to $14,415,000 in 2023 from $16,252,000 in 2022, a variance of $(1,837,000)[101]. - Net income for 2023 was $7,250,000, a significant decrease of $461,754,000 compared to $469,004,000 in 2022[101]. - Interest income increased by $13,797,000, primarily due to a $9.9 million increase in interest on short-term investments[103]. - Funds From Operations (FFO) for 2023 was $21,662,000, down from $33,961,000 in 2022[115]. Cash Flow and Liquidity - Cash used in operating activities decreased to $(31,073,000) in 2023 from $(45,394,000) in 2022, a variance of $14,321,000[108]. - Net cash provided by investing activities decreased to $26,813,000 in 2023 from $307,357,000 in 2022, a variance of $(280,544,000)[108]. - The company anticipates sufficient cash and short-term investments to meet all cash requirements for 2024[107]. - The company plans to selectively sell land and income-producing assets to meet liquidity requirements[107]. Debt Management - The company paid off $67.5 million of Series C bonds on January 31, 2023[79]. - The company paid off $14.0 million of Series A Bonds and $28.9 million of Series B Bonds, resulting in a loss of $1.7 million[85]. - The company completed the restoration of Landing on Bayou Cane for a total cost of $16.7 million, primarily funded by insurance proceeds[84].