Schedule III

TRANSCONTINENTAL REALTY INVESTORS, INC.

REAL ESTATE AND ACCUMULATED DEPRECIATION

December 31, 2011


Property/Location	Encumbrances		Initial Cost							Cost Capitalized Subsequent to Acquisition		Gross Amounts of Which Carried at End of Year						Accumulated Depreciation		Date of Construction		Date Acquired		Life on Which Depreciation In Latest Statement of Operation is Computed
Property/Location	Encumbrances		Land		Building & Improvements		Asset Impairment			Improvements		Land		Building & Improvements		Total		Accumulated Depreciation		Date of Construction		Date Acquired
	(dollars in thousands)
Properties Held for Investment
Apartments
Anderson Estates, Oxford, MS	$	907	$	378	$	2,683	$	—		$	313	$	691	$	2,683	$	3,373	$	397		2003		01/06		40 years
Blue Lake Villas I, Waxahachie, TX		10,580		526		10,784		—			201		526		10,985		11,511		2,439		2003		01/02		40 years
Blue Lake Villas II, Waxahachie, TX		3,885		287		4,451		—			—		287		4,451		4,738		455		2004		01/04		40 years
Blue Ridge, Midland, TX		23,275		2,259		22,299		—			—		2,259		22,299		24,558		358		2011		02/10		40 years
Breakwater Bay, Beaumont, TX		9,237		740		10,435		—			—		740		10,435		11,175		1,798		2004		05/03		40 years
Bridgewood Ranch, Kaufman, TX		4,886		762		6,856		—			—		762		6,856		7,618		691		2007		04/08		40 years
Capitol Hill, Little Rock, AR		8,876		1,860		7,948		—			—		1,860		7,948		9,807		1,492		2003		03/03		40 years
Curtis Moore Estates, Greenwood, MS		1,628		186		5,733		—			757		902		5,774		6,676		990		2003		01/06		40 years
Dakota Arms, Lubbock, TX		12,405		921		12,644		—			231		921		12,875		13,796		2,246		2004		01/04		40 years
David Jordan Phase II, Greenwood, MS		610		51		1,521		—			225		277		1,521		1,798		260		1999		01/06		40 years
David Jordan Phase III, Greenwood, MS		638		83		2,115		—			356		439		2,115		2,554		313		2003		01/06		40 years
Desoto Ranch, DeSoto, TX		16,063		1,472		17,856		—			11		1,472		17,866		19,338		3,509		2002		05/02		40 years
Dorado Ranch, Odessa, TX		16,350		761		18,492		—			24		761		18,516		19,277		1,312		2009		07/07		40 years
Falcon Lakes, Arlington, TX		13,424		1,438		15,094		—			327		1,438		15,420		16,858		3,652		2001		10/01		40 years
Heather Creek, Mesquite, TX		11,892		1,326		12,015		—			—		1,326		12,015		13,341		2,103		2003		03/03		40 years
Huntington Ridge, DeSoto, TX		14,651		1,693		15,927		—			40		1,693		15,967		17,660		1,326		2007		10/04		40 years
Laguna Vista, Dallas, TX		16,999		288		20,743		—			497		370		21,158		21,528		2,727		2006		12/04		40 years
Lake Forest, Houston, TX		12,112		335		12,267		—			1,435		335		13,702		14,037		2,169		2004		01/04		40 years
Legends Of El Paso, El Paso, TX		15,418		1,318		17,215		—			697		1,318		17,912		19,230		2,006		2006		07/05		40 years
Apartments (cont'd)
Lodge at Pecan Creek, Denton, TX		15,605		1,349		15,067		—			—		1,349		15,067		16,416		29		2011		10/05		40 years
Mansions of Mansfield, Mansfield, TX		15,920		977		17,799		—			—		977		17,799		18,775		1,223		2009		09/05		40 years
Mariposa Villas, Dallas, TX		12,301		788		13,131		—			—		788		13,131		13,918		2,064		2002		01/02		40 years
Mission Oaks, San Antonio, TX		14,950		1,266		16,627		—			212		1,266		16,839		18,105		1,948		2005		05/05		40 years
Monticello Estate, Monticello, AR		502		36		1,493		—			263		285		1,508		1,793		236		2001		01/06		40 years
Northside on Travis, Sherman, TX		13,655		1,301		14,525		—			—		1,301		14,525		15,826		851		2009		10/07		40 years
Paramount Terrace, Amarillo, TX		2,841		340		3,061		—			—		340		3,061		3,402		1,030		1983		05/00		40 years
Park at Clarksville, Clarksville, TN		13,080		571		14,390		—			102		571		14,492		15,063		1,179		2007		06/02		40 years
Parc at Denham Springs, Denham Springs, LA		19,517		1,022		19,819		—			—		1,022		19,819		20,841		485		2011		07/07		40 years
Parc at Maumelle, Little Rock, AR		16,074		1,153		17,688		—			617		1,153		18,305		19,458		2,235		2006		12/04		40 years
Parc at Metro Center, Nashville, TN		10,579		960		12,226		—			486		960		12,713		13,673		1,631		2006		05/05		40 years
Parc at Rogers, Rogers, AR		17,370		1,482		22,993		(3,180	)		266		1,749		19,813		21,562		1,921		2007		04/04		40 years
Pecan Pointe, Temple, TX		16,417		1,744		16,876		—			144		1,744		17,020		18,764		1,498		2007		10/06		40 years
Portofino, Farmers Branch, TX		19,865		1,729		23,037		—			13		1,729		23,050		24,779		1,916		2007		09/06		40 years
Preserve at Pecan Creek, Denton, TX		14,772		885		16,626		—			17		902		16,626		17,528		1,378		2008		10/05		40 years
River Oaks, Wylie, TX		9,743		590		11,674		—			148		590		11,822		12,412		2,604		2002		10/01		40 years
Riverwalk Phase I, Greenville, MS		324		23		1,537		—			175		198		1,537		1,736		270		2003		01/06		40 years
Riverwalk Phase II, Greenville, MS		1,237		52		4,007		—			363		297		4,126		4,423		962		2003		01/06		40 years
Apartments (cont'd)
Savoy of Garland, Garland, TX		10,183		760		11,524		—			147		760		11,671		12,431		657		2009		10/06		40 years
Sonoma Court, Rockwall, TX		10,578		941		10,369		—			—		941		10,369		11,310		92		2011		07/10		40 years
Stonebridge at City Park, Houston, TX		14,515		1,545		14,786		—			97		1,545		14,883		16,428		2,562		2004		01/04		40 years
Sugar Mill, Baton Rouge, LA		11,834		1,882		13,272		—			135		1,882		13,407		15,289		758		2009		08/08		40 years
Toulon, Gautier, MS		20,078		1,621		19,075		—			—		1,993		18,703		20,696		226		2011		09/09		40 years
Treehouse, Irving, TX		5,040		297		2,672		—			—		297		2,672		2,969		526		1974		05/04		40 years
Verandas at City View, Fort Worth, TX		18,384		2,005		19,463		—			1,267		2,005		20,730		22,735		4,130		2003		09/01		40 years
Vistas of Pinnacle Park, Dallas, TX		18,907		1,750		19,808		—			111		1,750		19,920		21,670		3,701		2002		10/02		40 years
Vistas of Vance Jackson, San Antonio, TX		15,955		1,265		16,540		—			189		1,327		16,666		17,993		2,627		2004		01/04		40 years
Whisperting Pines, Topeka, KS		9,335		244		6,160		—			—		244		6,160		6,404		4,882		1974		04/11		40 years
Windsong, Fort Worth, TX		10,649		790		11,526		—			—		790		11,526		12,316		2,261		2002		07/03		40 years

	$	554,046	$	46,052	$	604,848	$	(3,180	)	$	9,867	$	49,130	$	608,456	$	657,586	$	76,125
Commercial
225 Baronne, New Orleans, LA	$	—	$	1,162	$	1,444	$	—		$	7,355	$	1,162	$	8,799	$	9,961	$	7,713		1960		03/98		40 years
305 Baronne, New Orleans, LA		5,093		211		1,953		—			452		211		2,405		2,616		362		1902		08/06		40 years
600 Las Colinas, Las Colinas, TX		34,142		5,751		51,759		—			5,913		5,751		57,672		63,423		11,479		1984		08/05		40 years
Commercial (cont'd)
1010 Common, New Orleans, LA		14,171		2,895		13,811		—			22,613		2,895		36,423		39,319		26,549		1971		03/98		40 years
Amoco Building, New Orleans, LA		18,750		1,233		3,826		—			6,602		1,233		10,428		11,661		7,748		1974		07/97		40 years
Bridgeview Plaza, LaCrosse, WI		6,244		—		—		—			326		—		326		326		195		1979		03/03		40 years
Browning Place (Park West I), Farmers Branch, TX		31,704		5,096		45,868		—			8,066		5,096		53,933		59,030		9,498		1984		04/05		40 years
Clark Garage, New Orleans, LA		—		1,033		9,293		(3,300	)		26		1,033		6,019		7,052		1,042		—		08/06		40 years
Dunes Plaza, Michigan City, IN		3,599		1,343		5,264		(1,851	)		1,541		1,529		4,767		6,296		3,342		1978		03/92		40 years
Ergon Office Building, Jackson, MS		1,878		201		1,914		(1,963	)		—		152		—		152		152		—		11/08		40 years
Fruitland Plaza, Fruitland Park, FL		—		23		—		—			16		23		16		39		16		—		05/92		40 years
Senlac VHP, Farmers Branch, TX		662		622		—		—			142		622		142		765		90		—		08/05		40 years
Sesame Square, Anchorage, AK		1,055		562		1,538		—			—		562		1,538		2,101		1,437		1981		04/11		40 years
Stanford Center, Dallas, TX		23,612		3,878		34,862		—			258		3,878		35,120		38,998		3,182		—		06/08		40 years

	$	140,910	$	24,011	$	171,530	$	(7,114	)	$	53,308	$	24,148	$	217,588	$	241,739	$	72,805
Land
1013 Common St, New Orleans, LA	$	—	$	579	$	—	$	—		$	159		738	$	—	$	738	$	—		—		08/98		—
Audubon, Adams County, MS		—		519		—		—			297		815		—		815		—		—		03/07		—
Copperridge, Dallas, TX		2,504		6,392		—		(4,547	)		1,705		3,550		—		3,550		—		—		01/08		—
Land (cont'd)
Denham Springs, Denham Springs, LA		198		339		—		—			—		339		—		339		—		—		08/08		—
Gautier Land, Gautier, MS		732		2,526		—		—			128		2,654		—		2,654		—		—		07/98		—
Hollywood Casino Land Tract II, Farmers Branch, TX		3,597		3,131		—		—			397		3,529		—		3,529		—		—		03/08		—
Hunter Equities Land, Dallas, TX		—		398		—		—			—		398		—		398		—		—		07/08		—
Jackson Capital City Center, Jackson, MS		4,751		8,986		—		(1,310	)		4,824		12,500		—		12,500		—		—		11/08		—
Kinwest Manor, Irving, TX		1,020		1,819		—		(1,517	)		1,825		2,128		—		2,128		—		—		10/06		—
Lacy Longhorn Land, Farmers Branch, TX		1,764		1,304		—		—			—		1,304		—		1,304		—		—		06/04		—
LaDue Land, Farmers Branch, TX		562		1,810		—		—			—		1,810		—		1,810		—		—		07/98		—
Lake Shore Villas, Humble, TX		—		81		—		—			3		84		—		84		—		—		03/02		—
LCLLP (Kinwest/Hackberry), Irving, TX		—		196		—		—			—		196		—		196		—		—		12/04		—
Lubbock Land, Lubbock, TX		20		234		—		—			—		234		—		234		—		—		01/04		—
Luna (Carr), Farmers Branch, TX		392		589		—		—			—		589		—		589		—		—		07/05		—
Manhattan Land, Farmers Branch, TX		80		5,450		—		—			53		5,503		—		5,503		—		—		02/00		—
Marine Creek, Ft. Worth, TX		1,699		2,923		—		(1,500	)		243		1,666				1,666		—		—		06/02		—
McKinney 36, Collin County, TX		3,898		1,948		—		—			—		1,948		—		1,948		—		—		01/98		—
McKinney Ranch Land, McKinney, TX		14,256		21,402		—		(3,418	)		744		18,728		—		18,728		—		—		12/05		—
Mira Lago, Farmers Branch, TX		—		59		—		—			15		74		—		74		—		—		05/01		—
Land (cont'd)
Nakash, Malden, MO		—		113		—		—			—		113		—		113		—		—		01/93		—
Nicholson Croslin, Dallas, TX		118		63		—		—			—		63		—		63		—		—		10/98		—
Nicholson Mendoza, Dallas, TX		50		27		—		—			—		27		—		27		—		—		10/98		—
Ocean Estates, Gulfport, MS		—		1,418		—		—			390		1,808		—		1,808		—		—		10/07		—
Southwood Plantation 1394, Tallahassee, FL		600		1,209		—		—			119		1,329		—		1,329		—		—		02/06		—
Texas Plaza Land, Irving, TX		409		1,738		—		—			—		1,738		—		1,738		—		—		12/06		—
Travelers Land, Farmers Branch, TX		26,543		24,511		—		—			—		24,511		—		24,511		—		—		11/06		—
Travelers Land, Farmers Branch, TX		2,456		1,913		—		—			—		1,913		—		1,913		—		—		11/06		—
Travis Ranch Land, Kaufman County, TX		751		1,030		—		—			—		1,030		—		1,030		—		—		08/08		—
Travis Ranch Retail, Kaufman City, TX		—		950		—		—			—		950		—		950		—		—		08/08		—
Union Pacific Railroad Land, Dallas, TX		—		130		—		—			—		130		—		130		—		—		03/04		—
US Virgin Islands—Pearl, US Virgin Islands		3,318		14,031		—		—			2,360		16,391		—		16,391		—		—		10/08		—
Valley View 34 (Mercer Crossing), Farmers Branch, TX		358		228		—		—			—		228		—		228		—		—		08/08		—
Valley View/Senlac, Farmers Branch, TX		624		780		—		—			—		780		—		780		—		—		12/05		—
Waco 151 Land, Waco, TX		1,257		2,106		—		—			—		2,106		—		2,106		—		—		04/07		—
Waco Swanson, Waco, TX		1,525		2,725		—		—			—		2,725		—		2,725		—		—		08/06		—
Walker Land, Dallas County, TX		8,069		12,613		—		—			—		12,613		—		12,613		—		—		09/06		—
Willowick Land, Pensacola, FL		—		137		—		—			—		137		—		137		—		—		01/95		—
Land (cont'd)
Windmill Farms Land, Kaufman County, TX		30,700		49,879		14,218		(21,009	)		105		43,193		—		43,193		—		—		11/11		—

	$	112,251	$	176,286	$	14,218	$	(33,300	)	$	13,368	$	170,572	$	—	$	170,572	$	—
Corporate Departments/Investments/Misc.
TCI—Corporate	$	11,322	$	—	$	—	$	—		$	—	$	—	$	—	$	—	$	—		—		—		—

	$	11,322	$	—	$	—	$	—		$	—	$	—	$	—	$	—	$	—
Total Properties Held for Investment	$	818,529	$	246,349	$	790,597	$	(43,595	)	$	76,543	$	243,850	$	826,044	$	1,069,899	$	148,930
Properties Held for Sale
Apartments
Wildflower Villas, Temple, TX	$	13,781	$	1,119	$	15,526	$	—		$	122	$	1,119	$	15,648	$	16,767	$	1,752		2005		04/04		40 years

	$	13,781	$	1,119	$	15,526	$	—		$	122	$	1,119	$	15,648	$	16,767	$	1,752
Total Properties Held for Sale	$	13,781	$	1,119	$	15,526	$	—		$	122	$	1,119	$	15,648	$	16,767	$	1,752
Properties Subject to Sales Contract
Apartments
Quail Hollow, Holland, OH	$	11,129	$	1,406	$	12,650	$	(1,998	)	$	—	$	1,406	$	10,653	$	12,058	$	1,160		2000		04/08		40 years

	$	11,129	$	1,406	$	12,650	$	(1,998	)	$	—	$	1,406	$	10,653	$	12,058	$	1,160
Commercial
Eton Square, Tulsa, OK	$	9,213	$	1,469	$	13,219	$	—		$	4,246	$	1,469	$	17,465	$	18,934	$	5,958		1985		09/99		40 years
Commercial (cont'd)
Thermalloy, Farmers Branch, TX		127		791		1,061		—			—		791		1,061		1,852		95		—		05/08		40 years

	$	9,340	$	2,260	$	14,281	$	—		$	4,246	$	2,260	$	18,526	$	20,786	$	6,053
Land
Dedeaux, Gulfport, MS	$	1,520	$	1,612	$	—	$	—		$	46	$	1,658	$	—	$	1,658	$	—		—		10/06		—
Denton (Andrew B), Denton, TX		451		895		—		—			8		903		—		903		—		—		12/05		—
Denton (Andrew C), Denton, TX		93		318		—		—			—		318		—		318		—		—		12/05		—
Denton Coonrod, Denton, TX		755		1,848		—		(703	)		—		1,145		—		1,145		—		—		07/09		—
Desoto Ranch, DeSoto, TX		459		898		—		—			27		925		—		925		—		—		10/04		—
Dominion Tract, Dallas, TX		1,221		2,393		—		—			—		2,393		—		2,393		—		—		03/99		—
Hollywood Casino Tract I, Farmers Branch, TX		2,124		4,249		—		—			135		4,383		—		4,383		—		—		06/02		—
Luna Ventures, Farmers Branch TX		1,028		2,934		—		—			—		2,934		—		2,934		—		—		04/08		—
Mansfield Land, Mansfield, TX		848		543		—		—			3		546		—		546		—		—		09/05		—
Pioneer Crossing Tract II, Austin, TX		1,144		614		—		(72	)		952		1,494		—		1,494		—		—		03/06		—
Senlac Land Tract II, Farmers Branch, TX		303		656		—		—			—		656		—		656		—		—		08/05		—
Sheffield Village, Grand Prairie, TX		872		1,643		—		—			428		2,071		—		2,071		—		—		09/03		—
Stanley Tools, Farmers Branch, TX		1,324		5,373		—		—			—		5,373		—		5,373		—		—		02/04		—
Land (cont'd)
Whorton Land, Bentonville, AR		3,423		4,291		—		(2,367	)		6		1,929		—		1,929		—		—		06/05		—

	$	15,565	$	28,267	$	—	$	(3,142	)	$	1,604	$	26,728	$	—	$	26,728	$	—
Total Properties Subject to Sales Contract	$	36,034	$	31,932	$	26,931	$	(5,140	)	$	5,850	$	30,393	$	29,179	$	59,572	$	7,213

TOTAL: Real Estate	$	868,344	$	279,400	$	833,054	$	(48,735	)	$	82,515	$	275,362	$	870,871	$	1,146,238	$	157,895

TRANSCONTINENTAL REALTY INVESTORS, INC.

REAL ESTATE AND ACCUMULATED DEPRECIATION

As of December 31,

SCHEDULE III

(Continued)


	2011			2010			2009
	(dollars in thousands)
Reconciliation of Real Estate
Balance at January 1,	$	1,365,709		$	1,599,475		$	1,607,423
Additions
Acquisitions, improvements and construction		83,493			49,742			93,991
Deductions
Sale of real estate		(312,944	)		(263,349	)		(59,025	)
Asset impairments		9,976			(20,159	)		(42,914	)

Balance at December 31,	$	1,146,234		$	1,365,709		$	1,599,475

Reconciliation of Accumulated Depreciation
Balance at January 1,	$	152,595		$	152,291		$	126,632
Additions
Depreciation		27,166			26,753			31,604
Deductions
Sale of real estate		(21,866	)		(26,449	)		(5,945	)

Balance at December 31,	$	157,895		$	152,595		$	152,291