ARL American Realty Investors Inc

American Realty Investors, Inc. (NYSE:ARL) is reporting its results of operations for the three months ended September 30, 2023. For the three months ended September 30, 2023, we reported net income attributable to common shares of $3.0 million or $0.18 per diluted share, compared to net income attributable to common shares of $302.3 million or $18.72 per diluted share for the same period in 2022.

Financial Highlights

• Total occupancy was 79% at September 30, 2023, which includes 96% at our multifamily properties and 49% at our commercial properties.
• On August 28, 2023, we paid off the $1.2 million loan on Athens.
• On November 6, 2023, we obtained a $25.4 million construction loan to build a 216 unit multifamily property in McKinney, Texas.

Financial Results

Rental revenues increased $4.3 million from $7.6 million for the three months ended September 30, 2022 to $11.8 million for the three months ended September 30, 2023. The increase in rental revenue is primarily due to a $5.0 million increase at our multifamily properties offset in part by a decrease of $0.8 million from the commercial properties. The increase in revenue from the multifamily properties is primarily due to the acquisition of the VAA Holdback Portfolio in 2022.

Net operating loss decreased $1.1 million from $3.2 million for three months ended September 30, 2022 to $2.1 million for the three months ended September 30, 2023. The decrease in net operating loss is primarily due to a decrease in legal costs.

Net income attributable to common shares decreased $299.3 million from $302.3 million for the three months ended September 30, 2022 to $3.0 million for the three months ended September 30, 2023. The decrease in net income is primarily attributed to our share of the gain from the sale of the VAA Sale Portfolio, net of income tax effect in 2022.

About American Realty Investors, Inc.

American Realty Investors, Inc., a Dallas-based real estate investment company, holds a diverse portfolio of equity real estate located across the U.S., including office buildings, apartments, shopping centers, and developed and undeveloped land. The Company invests in real estate through direct ownership, leases and partnerships and invests in mortgage loans on real estate. The Company also holds mortgage receivables. The Company’s primary asset and source of its operating results is its investment in Transcontinental Realty Investors, Inc. (NYSE:TCI). For more information, visit the Company’s website at www.americanrealtyinvest.com.

     

AMERICAN REALTY INVESTORS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS 

(Dollars in thousands, except per share amounts)

(Unaudited)

     

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

   

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

        Revenues:          Rental revenues  

 $

     11,838

 

 

 $

      7,570

 

 

 $

     34,236

 

 

 $

    22,310

 

Other income  

 

             688

 

 

 

            749

 

 

 

          2,217

 

 

 

         1,925

 

Total revenue  

 

        12,526

 

 

 

         8,319

 

 

 

        36,453

 

 

 

       24,235

 

Expenses:             Property operating expenses  

 

          7,443

 

 

 

         4,701

 

 

 

        20,580

 

 

 

       12,541

 

Depreciation and amortization  

 

          3,313

 

 

 

         2,193

 

 

 

          9,615

 

 

 

         6,840

 

General and administrative  

 

          1,579

 

 

 

         3,042

 

 

 

          8,424

 

 

 

         7,956

 

Advisory fee to related party  

 

          2,295

 

 

 

         1,571

 

 

 

          6,883

 

 

 

         7,614

 

Total operating expenses  

 

        14,630

 

 

 

       11,507

 

 

 

        45,502

 

 

 

       34,951

 

Net operating loss  

 

        (2,104

)

   

 

       (3,188

)

 

 

        (9,049

)

   

 

     (10,716

)

Interest income  

 

          9,008

 

 

 

         7,035

 

 

 

        25,201

 

 

 

       19,937

 

Interest expense  

 

        (1,954

)

 

 

       (4,044

)

 

 

        (7,574

)

 

 

     (13,301

)

Gain on foreign currency transactions  

 

               -

 

 

 

         1,533

 

 

 

             993

 

 

 

       19,437

 

Loss on extinguishment of debt  

 

               -

 

 

 

       (1,166

)

 

 

        (1,710

)

 

 

       (2,805

)

Equity in income from unconsolidated joint ventures  

 

             234

 

 

 

     464,143

 

 

 

          2,946

 

 

 

     471,385

 

(Loss) gain on sale or write-down of assets, net  

 

             (32

)

 

 

         1,539

 

 

 

             156

 

 

 

       16,580

 

Income tax provision  

 

        (1,127

)

 

 

     (81,548

)

 

 

        (2,416

)

 

 

     (81,616

)

Net income  

 

          4,025

 

 

 

     384,304

 

 

 

          8,547

 

 

 

     418,901

 

Net income attributable to noncontrolling interest  

 

        (1,037

)

 

 

     (82,015

)

 

 

        (2,456

)

 

 

     (88,986

)

Net income attributable to the common shares  

 $

       2,988

 

 

 $

  302,289

 

 

 $

       6,091

 

 

 $

  329,915

 

Earnings per share     .       Basic and diluted  

 $

         0.18

 

 

 $

      18.72

 

 

 $

         0.38

 

 

 $

      20.43

 

Weighted average common shares used in computing earnings per share             Basic and diluted  

 

16,152,043

 

 

 

16,152,043

 

 

 

16,152,043

 

 

 

16,152,043

 

   

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20231109013267/en/

American Realty Investors, Inc. Investor Relations Erik Johnson (469) 522-4200 Investor.relations@americanrealtyinvest.com