American Realty Investors, Inc. Reports Earnings for Quarter Ended December 31, 2024

DALLAS--(BUSINESS WIRE)--March 20, 2025-- 

American Realty Investors, Inc. $(ARL)$ 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. $(TCI)$. 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   Twelve Months Ended December 
                                     31,                           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 
                         ==========       ==========    ==========    ========== 
 
 

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    CONTACT:    American Realty Investors, Inc. 

Investor Relations

Erik Johnson (469) 522-4200

investor.relations@americanrealtyinvest.com

(END) Dow Jones Newswires

March 20, 2025 17:30 ET (21:30 GMT)