EX-99.1 2 d72025exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
NEWS RELEASE
     
FOR IMMEDIATE RELEASE
  Contact:
 
  Transcontinental Realty Investors, Inc.
 
  Investors Relations
 
  (800) 400-6407
 
  investor.relations@primeasset.com
Transcontinental Realty Investors, Inc. Reports Fourth Quarter and Full Year 2009 Financial Results
DALLAS (April 1, 2010) — Transcontinental Realty Investors, Inc. (NYSE: TCI), a Dallas-based real estate investment company, today reported results of operations for the year ended December 31, 2009. TCI reported a net loss applicable to common shares of $80.7 million or $9.95 per share in 2009, as compared to prior year net income applicable to common shares of $31.2 million or $3.86 per share. Net loss for the three months ended December 31, 2009 was $26.0 million or $3.20 per share, as compared to prior year net loss applicable to common shares of $14.5 million or $1.80 per share.
Results of operations for the year ended December 31, 2009 as compared to the same period ended 2008;
     Rental revenues were $151.6 million for the twelve months ended December 31, 2009. The rental revenues for 2009, as compared to the same period in 2008, increased by $13.3 million, of which the apartment portfolio increased by $11.4 million, the commercial portfolio increased by $3.9 million and the land portfolio decreased $1.1 million with the remaining $0.9 million decrease in our other portfolios.
     Depreciation expense was $29.1 million for the twelve months ended December 31, 2009. The depreciation expense for 2009, as compared to the same period in 2008, increased by $4.7 million of which the apartment portfolio increased by $3.4 million with the remainder due to the commercial portfolio.
     The provision on impairment of notes receivable, investment in real estate partnerships, and real estate assets was $42.5 million for the twelve months ended December 31, 2009. The provision on impairment of notes receivable, investment in real estate partnerships, and real estate assets for 2009, as compared to the same period in 2008, increased by $35.1 million.
     Interest income was $5.4 million for the twelve months ended December 31, 2009. The interest income recorded for 2009, as compared to the same period in 2008, increased by $2.2 million due to the receipt of interest payments due on our Unified Housing surplus cash flow notes. Interest is recognized when interest payments are received.
     Mortgage and loan interest was $70.2 million for the twelve months ended December 31, 2009. The mortgage and loan interest for 2009, as compared to the same period in 2008, decreased by $2.9 million which is due to an increase in the apartments of $1.8 million, a decrease in the commercial portfolio of $1.5 million, an increase in the land portfolio of $0.7 million and a decrease in the other portfolios of $3.9 million.
     Gain on the sale of land was $6.3 million for the twelve months ended December 31, 2009. The gain on the sale of land for 2009, as compared to the same period in 2008, increased by $1.5 million due to an increase in land sales.
     Income from discontinued operations was $2.2 million for the year ended 2009 as compared to the $62.4 million for the same period ended 2008. Included in discontinued operations are a total of seven and 25 income-producing properties as of 2009 and 2008, respectively.
About Transcontinental Realty Investors, Inc.
Transcontinental 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, hotels, shopping centers and developed and undeveloped land. We invest in real estate through direct equity ownership and partnerships nationwide. For more information, visit the Company’s web site at www.transconrealty-invest.com.

 

 

TRANSCONTINENTAL REALTY INVESTORS, INC .
CONSOLIDATED STATEMENTS OF OPERATIONS
                 
    For the Years Ended December 31,  
    2009     2008  
    (dollars in thousands, except share  
    and per share amounts)  
Revenues:
                
 
                
Rental and other property revenues
   $ 151,647     $ 138,337  
 
                
Expenses:
                
Properly operating expenses
     85,087       86,237  
Depreciation and amortization
     29,098       24,377  
General and administrative
     11,063       10,349  
Provision on impairment of notes receivable and real estate assets
     42,513       7,417  
Advisory fee to affiliate
     11,903       12,064  
 
            
Total operating expenses
     179,664       140,444  
 
            
 
                
Operating income (loss)
     (28,017 )     (2,107 )
 
                
Other income (expense):
                
Interest income
     5,407       3,227  
Other income
     3,631       3,918  
Mortgage and loan interest
     (70,157 )     (73,053 )
Earnings from unconsolidated subsidiaries and investees
     (451 )     (1,096 )
Involuntary conversion
     —       —  
Litigation Settlement
     356       —  
 
            
Total other expenses
     (61,214 )     (67,004 )
 
            
 
                
Loss before gain on land sales, non-controlling interest, and tax
     (89,231 )     (69,111 )
Gain on land sales
     6,296       4,798  
 
            
Loss from continuing operations before lax
     (82,935 )     (64,313 )
Income lax benefit (expense)
     1,180       33,441  
 
            
Net income (loss) from continuing operations
     (81,755 )     (30,872 )
 
            
Discontinued operations:
                
Loss from discontinued operations
     (162 )     (8,368 )
Gain on sale of real estate from discontinued operations
     3,524       104,411  
Income tax expense from discontinued operations
     (1,180 )     (33,616 )
 
            
Net income (loss)
     (79,573 )     31,555  
Net income (loss) attributable to non-controlling interest
     (125 )     654  
Net income (loss) attributable to Transcontinental Realty Investors, Inc.
     (79,698 )     32,209  
Preferred dividend requirement
     (1,023 )     (975 )
 
            
Net income (loss) applicable to common shares
   $ (80,721 )   $ 31,234  
 
            
 
                
Earnings per share — basic
                
Gain (loss) from continuing operations
   $ (10.22 )   $ (3.86 )
Discontinued operations
     0.27       7.72  
 
            
Net income (loss) applicable to common shares
   $ (9.95 )   $ 3.86  
 
                
Earnings per share — diluted
                
Gain (loss) from continuing operations
   $ (10.22 )   $ (3.86 )
Discontinued operations
     0.27       7.72  
 
            
Net income (loss) applicable to common shares
   $ (9.95 )   $ 3.86  
 
            
 
                
Weighted average common share used in computing earnings per share
     8,113,669       8,086,640  
Weighted average common share used in computing diluted earnings per shore
     8,113,669       8,086,640  
 
                
Amounts attributable to Transcontinental Really Investors, Inc.
                
Income (loss) from continuing operations
   $ (81,755 )   $ (30,872 )
Income from discontinued operations
     2,182       62,427  
 
            
Net income (loss)
   $ (79,573 )   $ 31,555  
 
            

 

 

TRANSCONTINENTAL REALTY INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS
                 
    December 31,     December 31,  
    2009     2008  
    (dollars in thousands, except share and  
    par value amounts)  
Assets
                
Real estate, at cost
   $ 1,520,043     $ 1,526,016  
Real estate held for sale at cost, net of depreciation
     5,147       8,018  
Real estate subject to sales contracts at cost, net of depreciation
     59,048       60,807  
Less accumulated depreciation
     (137,054 )     (114,050 )
 
            
Total real estate
     1,447,184       1,480,791  
Notes and interest receivable
                
Performing
     48,051       42,413  
Less allowance for estimated losses
     (2,804 )     (3,293 )
 
            
Total notes and interest receivable
     45,247       39,120  
Cash and cash equivalents
     5,665       5,983  
Investments in securities
             2,775  
Investments in unconsolidated subsidiaries and investees
     9,358       23,365  
Other assets
     100,833       88,033  
 
            
Total assets
   $ 1,608,287     $ 1,640,067  
 
            
 
                
Liabilities and Shareholders’ Equity
                
Liabilities:
                
 
                
Notes and interest payable
   $ 1,121,737     $ 1,100,852  
Notes related to assets held-for-sale
     5,002       4,191  
Notes related to subject to sales contracts
     61,886       62,972  
Affiliate payables
     50,163       62,367  
 
                
Accounts payable and other liabilities
     124,083       84,989  
 
            
 
     1,362,871       1,315,371  
Commitments and contingencies:
                
Shareholders’ equity:
                
 
                
Preferred Stock, Series C: $.01 par value, authorized 10,000,000 shares, issued and outstanding 30,000 shares in 2009 and 2008 respectively (liquidation preference $100 per share). Series D: $.01 par value, authorized, issued and outstanding 100,000 shares in 2009 and 2008 respectively
     1       1  
 
                
Common Stock, $.01 par value, authorized 10,000,000 shares; issued and outstanding 8,113,669 for 2009 and 2008
     81       81  
Paid-in capital
     262,118       263,290  
Retained earnings
     (34,718 )     44,980  
Accumulated other comprehensive income
     —       2,575  
 
            
Total Transcontinental Realty Investors, Inc. shareholders’ equity
     227,482       310,927  
Non-controlling interest
     17,934       13,769  
 
            
Total equity
     245,416       324,696  
 
            
Total liabilities and equity
   $ 1,608,287     $ 1,640,067