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Transcontinental Realty Investors Inc

Transcontinental Realty Investors, Inc. Reports Earnings for Quarter Ended December 31, 2025

DALLAS--(BUSINESS WIRE)--Mar. 12, 2026-- Transcontinental Realty Investors, Inc. (NYSE:TCI) is reporting its results of operations for the three months ended December 31, 2025. For the three months ended December 31, 2025, we reported net income attributable to common shares of $8.3 million or $0.97 per diluted share, compared to $0.1 million or $0.01 per diluted share for the same period in 2024.

Financial Highlights

  • Total stabilized occupancy was 81% at December 31, 2025, which includes 93% at our multifamily properties and 59% at our commercial properties. Stabilized occupancy excludes Alera, Bandera Ridge and Merano, which are currently in lease-up.
  • On October 10, 2025, we sold Villas at Bon Secour, a 200 unit multifamily property in Gulf Shores, Alabama, for $28.0 million, which resulted in a gain on sale of $12.2 million. We used the proceeds from the sale to pay off the $18.8 million loan on the property and for general corporate purposes.

Financial Results

Revenues increased $0.3 million from 11.8 million for the three months ended December 31, 2024 to $12.1 million for the three months ended December 31, 2025. The increase in revenue is primarily due to an increase of $0.6 million from our commercial properties offset in part by a decrease of $0.3 million from our multifamily properties. The increase in revenue from our commercial properties is primarily due to an increase in occupancy at Stanford Center and the decrease is to the sale of Villas at Bon Secour in 2025.

Net operating loss increased $1.8 million from $1.7 million for the three months ended December 31, 2024 to $3.5 million for the three months ended December 31, 2025. Our increase in net operating loss was due to a $2.1 million increase in operating expenses offset in part by $0.3 million increase in revenue. The increase in operating expenses is primarily due to an increase in the cost of the lease-up properties during the three months ended December 31, 2025.

Net income attributable to the Company increased $8.2 million from $0.1 million for the three months ended December 31, 2024 to $8.3 million for the three months ended December 31, 2025. The increase in net income is primarily attributed to $12.7 million increase in gain on sale of assets offset in part by a $2.0 million increase in tax provision and the $1.8 million increase in net operating loss. The increase in gain on sale of assets is primarily attributed to the sale of Villas at Bon Secour in 2025.

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 ownership, leases and partnerships and invests in mortgage loans on real estate. The Company also holds mortgage receivables.

TRANSCONTINENTAL REALTY INVESTORS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
 
 
Three Months Ended December 31, Twelve Months Ended December 31,

 

2025

 

 

 

2024

 

 

 

2025

 

 

 

2024

 

 
Revenues:
Rental revenues

$

11,510

 

$

11,222

 

$

46,366

 

$

44,763

 

Other income

 

547

 

 

569

 

 

2,694

 

 

2,307

 

Total revenue

 

12,057

 

 

11,791

 

 

49,060

 

 

47,070

 

Expenses:
Property operating expenses

 

7,823

 

 

6,816

 

 

27,885

 

 

27,063

 

Depreciation and amortization

 

3,696

 

 

2,847

 

 

12,577

 

 

12,276

 

General and administrative

 

1,501

 

 

1,549

 

 

5,830

 

 

5,447

 

Advisory fee to related party

 

2,525

 

 

2,269

 

 

9,112

 

 

8,058

 

Total operating expenses

 

15,545

 

 

13,481

 

 

55,404

 

 

52,844

 

Net operating loss

 

(3,488

)

 

(1,690

)

 

(6,334

)

 

(5,774

)

Interest income

 

3,765

 

 

4,642

 

 

17,123

 

 

21,886

 

Interest expense

 

(1,499

)

 

(1,836

)

 

(6,669

)

 

(7,642

)

Loss on early extinguishment of debt

 

(284

)

 

-

 

 

(284

)

 

-

 

Equity in (los) income from unconsolidated joint venture

 

-

 

 

(119

)

 

-

 

 

708

 

Gain (loss) on sale or write-down of assets, net

 

12,077

 

 

(589

)

 

17,670

 

 

(589

)

Income tax provision

 

(2,128

)

 

(112

)

 

(7,064

)

 

(1,930

)

Net income

 

8,443

 

 

296

 

 

14,432

 

 

6,659

 

Net income attributable to noncontrolling interest

 

(151

)

 

(188

)

 

(629

)

 

(797

)

Net income attributable to the Company

$

8,292

 

$

108

 

$

13,803

 

$

5,862

 

Earnings per share
Basic and diluted

$

0.97

 

$

0.01

 

$

1.60

 

$

0.68

 

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

 

8,639,316

 

 

8,639,316

 

 

8,639,316

 

 

8,639,316

 

 

 

Transcontinental Realty Investors, Inc.
Investor Relations
Erik Johnson (469) 522-4200
investor.relations@transconrealty-invest.com

Source: Transcontinental Realty Investors, Inc.