EX-99.1 2 d73194exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
Transcontinental Realty Investors, Inc. Reports First Quarter 2010 Results | Business Wire
Page 1 of 3
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May 17, 2010 08:59 PM Eastern Daylight Time (SYMBOL)
Transcontinental Realty Investors, Inc. Reports First Quarter 2010 Results
DALLAS—(BUSINESS WIRE)—Transcontinental Realty Investors, Inc. (NYSE: TCI), a Dallas-based real estate investment company, today reported results of operations for the first quarter ended March 31, 2010. TCI announced today that the Company reported a net loss applicable to common shares of ($10.5 million) or ($1.30) per share, as compared to a net loss applicable to common shares of ($11.0) million or ($1.36) per share for the same period ended 2009.
Rental and other property revenues were $37.0 million for the three months ended March 31, 2010. This represents an increase of $1.2 million, as compared to the prior period revenues of $35.8 million. The change, by segment, is an increase in the apartment portfolio of $0.8 million, an increase in the other portfolio of $1.0, offset by decreases in the commercial portfolio of $0.5 million and the land portfolio of $0.1 million.
Property operating expenses were $20.2 million for the three months ended March 31, 2010. This represents a decrease of $2.2 million, as compared to the prior period operating expenses of $22.4 million. This change, by segment, is a decrease in the apartment portfolio of $2.4 million, offset by increases in the commercial and land portfolios of $0.1 million and $0.1 million respectively.
Other income was $0.7 million for the three months ended March 31, 2010, as compared to $3.1 million in the prior period. This represents a decrease of $2.4 million, which is mainly due to $2.3 million of gain recorded, in the prior period, on the disposition of our investment in a Korean REIT.
Mortgage and loan interest expense was $16.8 million for the three months ended March 31, 2010. This represented an increase of $0.8 million, as compared to the prior period expense of $16.0 million. This change, by segment, is an increase in the apartment portfolio of $0.4 million, an increase in the commercial portfolio of $0.4 million, and an increase in the other portfolio of $0.4 million, offset by a decrease in the land portfolio of $0.4 million.
Net income from discontinued operations was $0.2 million for the period ended March 31, 2010. For the same period ended 2009, there was a net loss of $0.2 million from discontinued operations. Discontinued operations include properties sold in 2010 that were held in 2009 and properties held for sale as of March 31, 2010. In 2010, we had one apartment complex held for sale (Baywalk), and two apartment complexes that we sold subsequent to March 31, 2010 (Foxwood and Longfellow Arms). In 2009, we sold one apartment complex (Bridges on Kinsey) and three commercial properties (5000 Space Center, 5360 Tulane and Cullman Shopping Center).
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, shopping centers and developed and undeveloped land. The Company invests in real estate through direct equity ownership and partnerships nationwide. For more information, visit the Company’s website at
www.transconrealty-invest.com.

 

 

     
Transcontinental Realty Investors, Inc. Reports First Quarter 2010 Results | Business Wire Page 2 of 3
TRANSCONTINENTAL REALTY INVESTORS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
                 
    For the Three Months Ended  
    March 31,  
    2010     2009  
    (dollars in thousands, except share and per share  
    amounts)  
Revenues:
                
Rental and other property revenues
   $ 37,003     $ 35,796  
 
Expenses:
               
Property operating expenses
     20,184       22,432  
Depredation and amortization
     6,961       7,062  
General and administrative
     1,837       1,662  
Provision on impairment of notes receivable and real estate assets
     —       379  
Advisory fee to affiliate
     3,097       2,857  
 
            
Total operating expenses
     32,079       34,392  
 
            
Operating income
     4,924       1,404  
 
Other income (expense):
               
Interest income
     859       636  
Other income
     664       3,105  
Mortgage and loan interest
     (16,772 )     (16,006 )
Earnings from unconsolidated subsidiaries and investees
     (60 )     —  
Litigation settlement
     —       760  
 
            
Total other expenses
     (15,309 )     (11,507 )
 
            
Loss before gain on land sales, non-controlling interest, and tax
     (10,385 )     (10,103 )
Gain (loss) on land sales
     6       (252 )
 
            
Loss from continuing operations before tax
     (10,379 )     (10,355 )
Income tax benefit (expense)
     162       (293 )
 
            
Net loss from continuing operations
     (10,217 )     (10,648 )
 
            
Discontinued operations:
                
Income (loss) from discontinued operations
     325       (870 )
Gain on sale of real estate from discontinued operations
     —       532  
Income tax benefit (expense) from discontinued operations
     (114 )     118  
 
            
Net income (loss) from discontinued operations
     211       (220 )
Net loss
     (10,006 )     (10,868 )
Net income (loss) attributable to non-controlling interest
     (273 )     109  
 
            
Net loss attributable to Transcontinental Realty Investors, Inc.
     (10,279 )     (10,759 )
Preferred dividend requirement
     (262 )     (250 )
 
            
Net loss applicable to common shares
   $ (10,541 )   $ (11,009 )
 
            
 
                
Earnings per share — basic
               
Loss from continuing operations
   $ (1.33 )   $ (1.33 )
Discontinued operations
     0.03       (0.03 )
 
            
Net loss applicable to common shares
   $ (1.30 )   $ (1.36 )
 
            
 
Earnings per share — diluted
               
Loss from continuing operations
   $ (1.33 )   $ (1.33 )
Discontinued operations
     0.03       (0.03 )
 
            
Net loss applicable to common shares
   $ (1.30 )   $ (1.36 )
 
            
 
                
Weighted average common share used in computing earnings per share
     8,113,669       8,113,669  
Weighted average common share used in computing diluted earnings per share
     8,113,669       8,113,669  
 
                
Amounts attributable to Transcontinental Realty Investors, Inc.
               
Loss from continuing operations
   $ (10,217 )   $ (10,648 )
Income (loss) from discontinued operations
     211       (220 )
 
            
Net loss
   $ (10,006 )   $ (10,868 )
 
            

 

 

Transcontinental Realty Investors, Inc. Reports First Quarter 2010 Results | Business Wire                                                                 Page 3 of 3
TRANSCONTINENTAL REALTY INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
                 
    March 31,     December 31,  
    2010     2009  
    (dollars in thousands, except  
    share and par value amounts)  
Assets
                
Real estate, at cost
   $ 1,504,875     $ 1,520,043  
Real estate held for sale at cost, net of depreciation
     25,826       5,147  
Real estate subject to sales contracts at cost, net of depreciation
     59,048       59,048  
Less accumulated depreciation
     (143,092 )     (137,054 )
 
            
Total real estate
     1,446,657       1,447,184  
Notes and interest receivable
                
Performing
     48,308       48,051  
Less allowance for estimated losses
     (2,804 )     (2,804 )
 
            
Total notes and interest receivable
     45,504       45,247  
Cash and cash equivalents
     1,368       5,665  
Investments in unconsolidated subsidiaries and investees
     8,714       9,358  
Other assets
     83,712       100,833  
 
            
Total assets
   $ 1,585,955     $ 1,608,287  
 
            
 
                
Liabilities and Shareholders’ Equity
                
Liabilities:
                
Notes and interest payable
   $ 1,104,809     $ 1.121,737  
Notes related to assets held-for-sale
     24,603       5,002  
Notes related to subject to sales contracts
     61,886       61,886  
Affiliate payables
     47,420       50,163  
Deferred revenue (from sales to related parties)
     60,678       60,678  
Accounts payable and other liabilities
     51,509       63,405  
 
            
 
     1,350,905       1,382,871  
 
                
Commitments and contingencies:
                
Shareholders’ equity:
                
Preferred Stock, Series C: $.01 par value, authorized 10,000,000 shares, issued and outstanding 30,000 shares in 2010 and 2009 respectively (liquidation preference $100 per share). Series D: $.01 par value, authorized, issued and outstanding 100,000 shares in 2010 and 2009 respectively
     1       1  
Common Stock, $.01 par value, authorized 10,000,000 shares; issued and outstanding 8.113,669 for 2010 and 2009
     81       81  
Paid-in capital
     261,853       262,118  
Retained earnings
     (44,997 )     (34,718 )
 
            
Total Transcontinental Realty Investors, Inc. shareholders’ equity
     216,938       227,482  
Non-controlling interest
     18,112       17,934  
 
            
Total equity
     235,050       245,416  
 
            
Total liabilities and equity
   $ 1,585,955     $ 1,608,287  
 
            
Contacts
Transcontinental Realty Investors, Inc.
Investors Relations, 800-400-6407
investor.relations@primeasset.com
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