Transcontinental Realty Investors(US:TCI)2024-05-09 17:58Revenue Performance - Multifamily segment revenue increased to $8.1 million in Q1 2024 from $7.4 million in Q1 2023, a rise of approximately 9.2%[97] - Commercial segment revenue decreased to $3.2 million in Q1 2024 from $3.6 million in Q1 2023, a decline of approximately 11.2%[97] - Net income for Q1 2024 was $2.8 million, down from $3.7 million in Q1 2023, representing a decrease of approximately 25.8%[97] - Net income attributable to the Company for Q1 2024 was $2.549 million, compared to $3.517 million in Q1 2023[108] Development Projects - Development of 125 acres into approximately 470 lots for single-family homes is projected to cost $24.3 million, with completion expected over two years starting Q3 2024[85] - A development agreement for a 240-unit multifamily property in Lake Wales, Florida, is expected to cost approximately $55.3 million, with $18.9 million incurred as of March 31, 2024[86] - A $25.4 million construction loan was secured for the development of a 216-unit multifamily property in McKinney, Texas, expected to be completed in 2025[87] - A $23.5 million construction loan was secured for the development of a 216-unit multifamily property in Temple, Texas, also expected to be completed in 2025[88] Financial Position - Cash and cash equivalents as of March 31, 2024, are expected to be sufficient to meet all cash requirements, with potential selective land sales and refinancing options available[101] - Interest income decreased by $2.7 million, primarily due to changes in interest rates on UHF notes and Pillar Receivable[98] - General, administrative, and advisory expenses decreased by $1.6 million, attributed to reduced legal and auditing costs related to repaid bonds[98] - The company repaid $67.5 million of Series C bonds and $14.0 million of Series A Bonds, resulting in a loss of $1.7 million on early extinguishment of debt[86] Cash Flow Analysis - Net cash provided by operating activities increased to $3.869 million in Q1 2024 from $1.533 million in Q1 2023, a variance of $2.336 million[102] - Net cash provided by investing activities saw a significant increase of $35.786 million, primarily due to a $51.1 million increase in net redemption of short-term investments[103] - Cash used in financing activities decreased by $87.671 million, mainly due to an $88.3 million repayment of bonds in 2023[103] Funds From Operations (FFO) - Funds From Operations (FFO) for Q1 2024 was $5.721 million, down from $6.619 million in Q1 2023[108] - FFO-adjusted for Q1 2024 was $5.721 million, compared to $5.648 million in Q1 2023[108] - Depreciation and amortization for Q1 2024 was $3.172 million, slightly up from $3.102 million in Q1 2023[108] - The company emphasizes that FFO should not be considered as cash flow from operations as defined by GAAP[106] - The company provides a reconciliation of net income to FFO to help investors understand performance better[107]