Nevada
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001-09240
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94-6565852
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(State or other
jurisdiction of incorporation)
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(Commission
File No.)
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(I.R.S. Employer
Identification No.)
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1603 LBJ Freeway, Suite 800
Dallas, Texas
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75234
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(Address of principal executive offices)
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(Zip Code)
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¨
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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¨
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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(d)
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Exhibits.
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Exhibit
Designation
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Description of Exhibit
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99.1*
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Press Release dated November 14, 2012.
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_____________________
*Furnished herewith.
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Dated: November 15, 2012 | TRANSCONTINENTAL REALTY INVESTORS, INC. |
By: /s/ Gene S. Bertcher | |
Gene S. Bertcher, Executive Vice | |
President and Chief Financial Officer |
NEWS RELEASE
FOR IMMEDIATE RELEASE
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Contact:
Transcontinental Realty Investors, Inc.
Investors Relations
(800) 400-6407
investor.relations@transconrealty-invest.com
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TRANSCONTINENTAL REALTY INVESTORS, INC.
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||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS
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||||||||||||||||
(unaudited)
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||||||||||||||||
For the Three Months Ended
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For the Nine Months Ended
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|||||||||||||||
September 30,
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September 30,
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|||||||||||||||
2012
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2011
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2012
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2011
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|||||||||||||
(dollars in thousands, except share and per share amounts)
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||||||||||||||||
Revenues:
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||||||||||||||||
Rental and other property revenues (including $164 and $0 for the three months
and $499 and $0 for the nine months ended 2012 and 2011 respectively from
related parties)
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$ | 28,097 | $ | 29,347 | $ | 87,003 | $ | 83,846 | ||||||||
Expenses:
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||||||||||||||||
Property operating expenses (including $296 and $264 for the three months and $837
and $888 for the nine months ended 2012 and 2011 respectively from related parties)
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15,484 | 16,150 | 45,359 | 45,128 | ||||||||||||
Depreciation and amortization
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5,427 | 5,378 | 16,260 | 14,168 | ||||||||||||
General and administrative (including $569 and $720 for the three months and $1,796
and $2,467 for the nine months ended 2012 and 2011 respectively from related parties)
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1,181 | 2,658 | 4,132 | 7,100 | ||||||||||||
Provision on impairment of notes receivable and real estate assets
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- | - | - | 5,581 | ||||||||||||
Advisory fee to related party
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2,198 | 2,441 | 6,719 | 7,688 | ||||||||||||
Total operating expenses
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24,290 | 26,627 | 72,470 | 79,665 | ||||||||||||
Operating income
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3,807 | 2,720 | 14,533 | 4,181 | ||||||||||||
Other income (expense):
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||||||||||||||||
Interest income (including $1,016 and $483 for the three months and $7,870 and $1,534
for the nine months ended 2012 and 2011 respectively from related parties)
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1,031 | 497 | 8,129 | 1,627 | ||||||||||||
Other income (including $1,500 and $0 for the three months and $4,500 and $0 for the
nine months ended 2012 and 2011 respectively from related parties)
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1,525 | 114 | 4,655 | 1,879 | ||||||||||||
Mortgage and loan interest (including $714 and $47 for the three months and $2,575
and $1,614 for the nine months ended 2012 and 2011 respectively from related parties)
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(9,031 | ) | (11,792 | ) | (41,146 | ) | (37,517 | ) | ||||||||
Loss on the sale of investments
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- | (32 | ) | (118 | ) | (483 | ) | |||||||||
Earnings (losses) from unconsolidated subsidiaries and investees
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5 | 189 | (58 | ) | 246 | |||||||||||
Total other expenses
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(6,470 | ) | (11,024 | ) | (28,538 | ) | (34,248 | ) | ||||||||
Loss before gain on land sales, non-controlling interest, and taxes
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(2,663 | ) | (8,304 | ) | (14,005 | ) | (30,067 | ) | ||||||||
Gain on land sales
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2,913 | 6,285 | 8,074 | 8,366 | ||||||||||||
Income (loss) from continuing operations before tax
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250 | (2,019 | ) | (5,931 | ) | (21,701 | ) | |||||||||
Income tax benefit (expense)
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(164 | ) | 886 | 1,414 | (1,423 | ) | ||||||||||
Net income (loss) from continuing operations
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86 | (1,133 | ) | (4,517 | ) | (23,124 | ) | |||||||||
Discontinued operations:
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||||||||||||||||
Loss from discontinued operations
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(551 | ) | (342 | ) | (1,132 | ) | (3,702 | ) | ||||||||
Gain (loss) on sale of real estate from discontinued operations
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82 | 2,872 | 5,173 | (365 | ) | |||||||||||
Income tax benefit (expense) from discontinued operations
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164 | (886 | ) | (1,414 | ) | 1,423 | ||||||||||
Net income (loss) from discontinued operations
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(305 | ) | 1,644 | 2,627 | (2,644 | ) | ||||||||||
Net income (loss)
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(219 | ) | 511 | (1,890 | ) | (25,768 | ) | |||||||||
Net (income) loss attributable to non-controlling interest
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(43 | ) | 384 | (297 | ) | 515 | ||||||||||
Net income (loss) attributable to Transcontinental Realty Investors, Inc.
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(262 | ) | 895 | (2,187 | ) | (25,253 | ) | |||||||||
Preferred dividend requirement
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(277 | ) | (279 | ) | (831 | ) | (831 | ) | ||||||||
Net income (loss) applicable to common shares
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$ | (539 | ) | $ | 616 | $ | (3,018 | ) | $ | (26,084 | ) | |||||
Earnings per share - basic
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||||||||||||||||
Loss from continuing operations
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$ | (0.03 | ) | $ | (0.12 | ) | $ | (0.67 | ) | $ | (2.81 | ) | ||||
Income (loss) from discontinued operations
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(0.04 | ) | 0.20 | 0.31 | (0.32 | ) | ||||||||||
Net income (loss) applicable to common shares
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$ | (0.07 | ) | $ | 0.08 | $ | (0.36 | ) | $ | (3.13 | ) | |||||
Earnings per share - diluted
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Loss from continuing operations
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$ | (0.03 | ) | $ | (0.12 | ) | $ | (0.67 | ) | $ | (2.81 | ) | ||||
Income (loss) from discontinued operations
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(0.04 | ) | 0.20 | 0.31 | (0.32 | ) | ||||||||||
Net income (loss) applicable to common shares
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$ | (0.07 | ) | $ | 0.08 | $ | (0.36 | ) | $ | (3.13 | ) | |||||
Weighted average common share used in computing earnings per share
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8,413,469 | 8,413,469 | 8,413,469 | 8,356,326 | ||||||||||||
Weighted average common share used in computing diluted earnings per share
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8,413,469 | 8,413,469 | 8,413,469 | 8,356,326 | ||||||||||||
Amounts attributable to Transcontinental Realty Investors, Inc.
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Income (loss) from continuing operations
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$ | 43 | $ | (749 | ) | $ | (4,814 | ) | $ | (22,609 | ) | |||||
Income (loss) from discontinued operations
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(305 | ) | 1,644 | 2,627 | (2,644 | ) | ||||||||||
Net income (loss)
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$ | (262 | ) | $ | 895 | $ | (2,187 | ) | $ | (25,253 | ) |
TRANSCONTINENTAL REALTY INVESTORS, INC.
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CONSOLIDATED BALANCE SHEETS
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||||||||
(unaudited)
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||||||||
September 30,
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December 31,
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|||||||
2012
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2011
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|||||||
(dollars in thousands, except share
and par value amounts)
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||||||||
Assets
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Real estate, at cost
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$ | 1,004,209 | $ | 1,069,699 | ||||
Real estate held for sale at cost, net of depreciation ($0 for 2012 and $1,752 for 2011)
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- | 15,015 | ||||||
Real estate subject to sales contracts at cost, net of depreciation ($15,742 for 2012 and $7,213 for 2011)
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50,033 | 52,555 | ||||||
Less accumulated depreciation
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(145,117 | ) | (148,930 | ) | ||||
Total real estate
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909,125 | 988,339 | ||||||
Notes and interest receivable
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||||||||
Performing (including $55,208 in 2012 and $78,852 in 2011 from related parties)
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57,891 | 79,161 | ||||||
Non-performing
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820 | 2,152 | ||||||
Less allowance for estimated losses (including $2,097 in 2012 and $2,097 in 2011 from related parties)
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(2,262 | ) | (3,942 | ) | ||||
Total notes and interest receivable
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56,449 | 77,371 | ||||||
Cash and cash equivalents
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6,322 | 19,991 | ||||||
Investments in unconsolidated subsidiaries and investees
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4,992 | 6,362 | ||||||
Other assets
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67,377 | 68,261 | ||||||
Total assets
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$ | 1,044,265 | $ | 1,160,324 | ||||
Liabilities and Shareholders’ Equity
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Liabilities:
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Notes and interest payable
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$ | 753,542 | $ | 829,617 | ||||
Notes related to assets held for sale
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- | 13,830 | ||||||
Notes related to subject to sales contracts
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53,442 | 38,376 | ||||||
Stock-secured notes payable
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2,215 | 2,482 | ||||||
Related party payables
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247 | 17,465 | ||||||
Deferred gain (from sales to related parties)
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56,255 | 65,607 | ||||||
Accounts payable and other liabilities (including $1,973 in 2012 and $1,746 in 2011 from related parties)
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38,940 | 51,663 | ||||||
904,641 | 1,019,040 | |||||||
Shareholders’ equity:
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||||||||
Preferred stock, Series C: $.01 par value, authorized 10,000,000 shares, issued and outstanding 30,000
shares in 2012 and 2011 respectively (liquidation preference $100 per share) Series D: $.01 par value,
authorized, issued and outstanding 100,000 shares in 2012 and 2011 respectively
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1 | 1 | ||||||
Common stock, $.01 par value, authorized 10,000,000 shares; issued 8,413,669 shares in 2012 and 2011,
and outstanding 8,413,469 shares in 2012 and 2011
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84 | 84 | ||||||
Treasury stock at cost; 200 shares in 2012 and 2011
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(2 | ) | (2 | ) | ||||
Paid-in capital
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273,055 | 273,886 | ||||||
Retained earnings
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(150,422 | ) | (148,235 | ) | ||||
Total Transcontinental Realty Investors, Inc. shareholders' equity
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122,716 | 125,734 | ||||||
Non-controlling interest
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16,908 | 15,550 | ||||||
Total equity
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139,624 | 141,284 | ||||||
Total liabilities and equity
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$ | 1,044,265 | $ | 1,160,324 |