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American Realty Investors Inc, Transcontinental Realty Investors Inc

American Realty Investors, Inc. Reports Earnings for Quarter Ended March 31, 2025

DALLAS--(BUSINESS WIRE)--May 8, 2025-- American Realty Investors, Inc. (NYSE: ARL) is reporting its results of operations for the three months ended March 31, 2025. For the three months ended March 31, 2025, we reported net income attributable to common shares of $3.0 million or $0.18 per diluted share, compared to $1.8 million or $0.11 per diluted share for the same period in 2024.

Financial Highlights

  • Total occupancy was 80% at March 31, 2025, which includes 94% at our multifamily properties and 53% at our commercial properties.
  • On December 13, 2024, we sold 30 single family lots from our holdings in Windmill Farms for $1.4 million, resulting in a gain on sale of $1.1 million.

Financial Results

Rental revenues increased $0.1 million from $11.3 million for the three months ended March 31, 2024 to $11.4 million for the three months ended March 31, 2025. The increase in rental revenue is primarily due to an increase in rents at our multifamily properties.

Net operating loss decreased $0.7 million from $1.5 million for the three months ended March 31, 2024 to $0.8 million for the three months ended March 31, 2025. Our decrease in net operating loss was due to a $0.6 million decrease in operating expenses. The decrease in operating expenses is primarily due to a decrease in the cost of insurance and property taxes for the three months ended March 31, 2025.

Net income attributable to common shares increased $1.2 million from $1.8 million for the three months ended March 31, 2024 to $3.0 million for the three months ended March 31, 2025. The increase in net income is primarily attributed to an increase in gain on real estate transactions offset in part by a decrease in interest income and an increase in tax provision for the three months ended March 31, 2025.

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
March 31,

2025

2024

 
Revenues:
Rental revenues

$

11,427

 

$

11,279

 

Other income

 

581

 

 

620

 

Total revenue

 

12,008

 

 

11,899

 

Expenses:
Property operating expenses

 

5,977

 

 

6,634

 

Depreciation and amortization

 

2,883

 

 

3,172

 

General and administrative

 

1,492

 

 

1,408

 

Advisory fee to related party

 

2,469

 

 

2,202

 

Total operating expenses

 

12,821

 

 

13,416

 

Net operating loss

 

(813

)

 

(1,517

)

Interest income

 

4,010

 

 

5,733

 

Interest expense

 

(1,820

)

 

(1,922

)

Equity in income from unconsolidated joint ventures

 

(159

)

 

483

 

Gain on real estate transactions

 

3,891

 

 

-

 

Income tax provision

 

(1,146

)

 

(475

)

Net income

 

3,963

 

 

2,302

 

Net income attributable to noncontrolling interest

 

(998

)

 

(551

)

Net income attributable to common shares

$

2,965

 

$

1,751

 

Earnings per share
Basic and diluted

$

0.18

 

$

0.11

 

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

 

16,152,043

 

 

16,152,043

 

 

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

Source: American Realty Investors, Inc.