ARL American Realty Investors Inc

American Realty Investors, Inc. (NYSE:ARL) is reporting its results of operations for the three months ended December 31, 2024. For the three months ended December 31, 2024, we reported net loss attributable to common shares of $0.2 million or $0.01 per diluted share, compared to net loss attributable to common shares of $2.1 million or $0.13 per diluted share for the same period in 2023.

Financial Highlights

• Total occupancy was 81% at December 31, 2024, which includes 94% at our multifamily properties and 53% at our commercial properties.

• On October 18, 2024, we completed a 45,000 square foot lease at Stanford Center. This is the first new lease at the property following our major renovation of the property. The new lease provides a 14% increase in occupancy to the property and a 20% increase in rent per square foot over recent expired leases at the property. The lease is expected to commence in April 2025.

• On October 21, 2024, we obtained a $27.5 million construction loan to finance the development of a 234 unit multifamily property in Dallas, Texas ("Mountain Creek") that is expected to be completed in 2026 for a total cost of approximately $49.8 million. The construction loan on Mountain Creek bears interest at SOFR plus 3.45% and matures on October 20, 2026.

• On October 31, 2024, we paid $23.4 million to resolve all claims litigation with David Clapper and related entities related (collectively, the “Clapper") that had been ongoing since 1999. The matter originally involved a transaction in 1998 in which we were to acquire eight multifamily properties from the Clapper. As a result of the settlement, we accrued a loss on real estate transactions of $23.4 million during the three and nine months ended December 31, 2024.

• 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 decreased $1.6 million from $12.8 million for the three months ended December 31, 2023 to $11.2 million for the three months ended December 31, 2024. The decrease in rental revenue is primarily due to a decrease in occupancy at our commercial properties.

Net operating loss decreased $0.4 million from $2.2 million for the three months ended December 31, 2023 to $1.8 million for the three months ended December 31, 2024. Our decrease in net operating loss was due to a $2.4 million decrease in operating expenses offset in part by a $2.0 million decrease in revenues. The decrease in operating expenses is primarily due to a decrease in depreciation for the three months ended December 31, 2024.

Net loss attributable to common shares decreased $2.0 million from $2.1 million for the three months ended December 31, 2023 to $0.2 million for the three months ended December 31, 2024. The decrease in net loss is primarily attributed to a decrease in loss on real estate transactions for the three months ended December 31, 2024.

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 December 31,

 

Twelve Months Ended December 31,

2024

 

2023

 

2024

 

2023

  Revenues: Rental revenues

$

11,222

 

$

12,787

 

$

44,763

 

$

47,023

 

Other income

 

817

 

 

1,260

 

 

2,555

 

 

3,477

 

Total revenue

 

12,039

 

 

14,047

 

 

47,318

 

 

50,500

 

Expenses: Property operating expenses

 

6,816

 

 

7,316

 

 

27,063

 

 

27,896

 

Depreciation and amortization

 

2,847

 

 

4,031

 

 

12,276

 

 

13,646

 

General and administrative

 

1,845

 

 

1,587

 

 

6,395

 

 

10,011

 

Advisory fee to related party

 

2,315

 

 

3,304

 

 

8,225

 

 

10,187

 

Total operating expenses

 

13,823

 

 

16,238

 

 

53,959

 

 

61,740

 

Net operating loss

 

(1,784

)

 

(2,191

)

 

(6,641

)

 

(11,240

)

Interest income

 

3,940

 

 

1,646

 

 

19,973

 

 

26,847

 

Interest expense

 

(1,880

)

 

(1,928

)

 

(7,838

)

 

(9,502

)

Gain on foreign currency transactions

 

-

 

 

-

 

 

-

 

 

993

 

Loss on early extinguishment of debt

 

-

 

 

-

 

 

-

 

 

(1,710

)

Equity in income from unconsolidated joint venture

 

42

 

 

296

 

 

1,449

 

 

3,242

 

Loss on real estate transactions

 

(589

)

 

(2,079

)

 

(23,989

)

 

(1,923

)

Income tax provision

 

55

 

 

960

 

 

3,607

 

 

(1,456

)

Net (loss) income

 

(216

)

 

(3,296

)

 

(13,439

)

 

5,251

 

Net income (loss) attributable to noncontrolling interest

 

55

 

 

1,173

 

 

(1,264

)

 

(1,283

)

Net (loss) income attributable to common shares

$

(161

)

$

(2,123

)

$

(14,703

)

$

3,968

 

Earnings per share Basic and diluted

$

(0.01

)

$

(0.13

)

$

(0.91

)

$

0.25

 

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

 

16,152,043

 

 

16,152,043

 

 

16,152,043

 

 

16,152,043

 

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250320830632/en/

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