American Realty Investors (ARL) 10-Q 9 May 24 2024 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2024	May 09, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-15663
Entity Registrant Name	AMERICAN REALTY INVESTORS, INC.
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	75-2847135
Entity Address, Address Line One	1603 Lyndon B. Johnson Freeway
Entity Address, Address Line Two	Suite 800
Entity Address, City or Town	Dallas
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75234
City Area Code	469
Local Phone Number	522-4200
Title of 12(b) Security	Common Stock
Trading Symbol	ARL
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		16,152,043
Entity Central Index Key	0001102238
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2024

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Assets
Real estate	$ 503,139	$ 501,586
Cash and cash equivalents	54,700	36,740
Restricted cash	38,352	42,327
Short-term investments	76,153	90,448
Notes receivable (including $73,317 and $75,362 at March 31, 2024 and December 31, 2023, respectively, from related parties)	141,136	144,142
Investment in unconsolidated joint ventures	10,543	10,060
Receivable from related party	96,997	96,533
Other assets (including $1,028 and $2,012 at March 31, 2024 and December 31, 2023, respectively, from related parties)	101,159	101,648
Total assets	1,022,179	1,023,484
Liabilities:
Mortgages and other notes payable	181,827	182,683
Accounts payable and other liabilities (including $1,022 and $1,016 at March 31, 2024 and December 31, 2023, respectively, from related parties)	9,560	11,866
Accrued interest	2,775	2,633
Deferred revenue	9,791	9,791
Total liabilities	203,953	206,973
Shareholders' Equity:
Preferred stock, Series A, $2.00 par value, 15,000,000 shares authorized, 1,800,614 shares issued and outstanding	1,801	1,801
Common stock, $0.01 par value, 100,000,000 shares authorized; 16,152,043 shares issued and outstanding	162	162
Additional paid-in capital	61,664	61,638
Retained earnings	555,153	553,402
Total shareholders' equity	618,780	617,003
Noncontrolling interests	199,446	199,508
Total equity	818,226	816,511
Total liabilities and equity	$ 1,022,179	$ 1,023,484

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Notes receivable	$ 141,136	$ 144,142
Other assets	101,159	101,648
Accounts payable and other liabilities	$ 9,560	$ 11,866
Preferred stock, par value (in dollars per share)	$ 2	$ 2
Preferred stock, authorized (in shares)	15,000,000	15,000,000
Preferred stock, issued (in shares)	1,800,614	1,800,614
Preferred stock, outstanding (in shares)	1,800,614	1,800,614
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	100,000,000	100,000,000
Common stock, issued (in shares)	16,152,043	16,152,043
Common stock, outstanding (in shares)	16,152,043	16,152,043
Related Party
Notes receivable	$ 73,317	$ 75,362
Other assets	1,028	2,012
Accounts payable and other liabilities	$ 1,022	$ 1,016

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenues:
Rental revenues (including $178 and $268 for the three months ended March 31, 2024 and 2023, respectively, from related parties)	$ 11,279	$ 11,009
Other income	620	679
Total revenue	11,899	11,688
Expenses:
Property operating expenses (including $80 and $100 for the three months ended March 31, 2024 and 2023, respectively, from related parties)	6,634	6,106
Depreciation and amortization	3,172	3,102
General and administrative (including $934 and $1,539 for the three months ended March 31, 2024 and 2023, respectively, from related parties)	1,408	3,161
Advisory fee to related party	2,202	2,405
Total operating expenses	13,416	14,774
Net operating loss	(1,517)	(3,086)
Interest income (including $2,298 and $4,603 for the three months ended March 31, 2024 and 2023, respectively, from related parties)	5,733	8,295
Interest expense	(1,922)	(3,140)
Gain on foreign currency transactions	0	971
Equity in income from unconsolidated joint ventures	483	2,419
Income tax provision	(475)	(1,240)
Net income	2,302	4,219
Net income attributable to noncontrolling interests	(551)	(1,241)
Net income attributable to common shares	$ 1,751	$ 2,978
Earnings per share - basic and diluted
Basic (in dollars per share)	$ 0.11	$ 0.18
Diluted (in dollars per share)	$ 0.11	$ 0.18
Weighted average common shares used in computing earnings per share
Basic (in shares)	16,152,043	16,152,043
Diluted (in shares)	16,152,043	16,152,043

CONSOLIDATED STATEMENTS OF OP_2

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Rental revenues	$ 11,279	$ 11,009
Property operating expenses	6,634	6,106
General and administrative	1,408	3,161
Interest income	5,733	8,295
Related Party
Rental revenues	178	268
Property operating expenses	80	100
General and administrative	934	1,539
Interest income	$ 2,298	$ 4,603

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Total	Total Shareholders' Equity	Preferred Stock	Common Stock	Paid-in Capital	Retained Earnings	Noncontrolling Interest
Balance at beginning at Dec. 31, 2022	$ 812,168	$ 613,487	$ 1,801	$ 162	$ 62,090	$ 549,434	$ 198,681
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	4,219	2,978				2,978	1,241
Balance at ending at Mar. 31, 2023	816,387	616,465	1,801	162	62,090	552,412	199,922
Balance at beginning at Dec. 31, 2023	816,511	617,003	1,801	162	61,638	553,402	199,508
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	2,302	1,751				1,751	551
Repurchase of treasury shares by IOR	(587)						(587)
Adjustment to noncontrolling interest	0	26			26		(26)
Balance at ending at Mar. 31, 2024	$ 818,226	$ 618,780	$ 1,801	$ 162	$ 61,664	$ 555,153	$ 199,446

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash Flow From Operating Activities:
Net income	$ 2,302	$ 4,219
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on foreign currency transactions	0	(971)
Depreciation and amortization	3,185	3,755
Provision of bad debts	29	0
Equity in income from unconsolidated joint ventures	(483)	(2,419)
Changes in assets and liabilities:
Other assets	1,359	(5,030)
Related party receivable	(464)	818
Accrued interest	142	(1,483)
Accounts payable and other liabilities	(2,203)	2,650
Net cash provided by operating activities	3,867	1,539
Cash Flow From Investing Activities:
Collection of notes receivable	3,005	248
Purchase of short-term investments	(17,399)	(63,956)
Redemption of short-term investments	31,694	27,192
Development and renovation of real estate	(5,726)	(5,653)
Deferred leasing costs	0	(19)
Distribution from unconsolidated joint venture	0	17,976
Net cash provided by (used in) investing activities	11,574	(24,212)
Cash Flow From Financing Activities:
Payments on mortgages, other notes and bonds payable	(858)	(89,111)
Repurchase of IOR shares	(587)	0
Deferred financing costs	(11)	(16)
Net cash used in financing activities	(1,456)	(89,127)
Net increase (decrease) in cash, cash equivalents and restricted cash	13,985	(111,800)
Cash, cash equivalents and restricted cash, beginning of period	79,067	222,328
Cash, cash equivalents and restricted cash, end of period	$ 93,052	$ 110,528

Organization

Organization	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization As used herein, the terms “the Company”, “we”, “our” or “us” refer to American Realty Investors, Inc., a Nevada corporation, which was formed in 1999. Our common stock is listed on the New York Stock Exchange (“NYSE”) under the symbol (“ARL”) and over 90% of our stock is owned by related party entities. Our primary business is the acquisition, development and ownership of income-producing multifamily and commercial properties. In addition, we opportunistically acquire land for future development in in-fill or high-growth suburban markets. From time to time and when we believe it appropriate to do so, we will sell land and income-producing properties. We generate revenues by leasing apartment units to residents, and leasing office, industrial and retail space to various for-profit businesses as well as certain local, state and federal agencies. We also generate income from the sale of land. We own approximately 78.4% of Transcontinental Realty Investors, Inc. ("TCI") and substantially all of our operations are conducted through TCI, whose common stock is traded on the NYSE under the symbol “TCI”. Accordingly, we include TCI’s financial results in our consolidated financial statements. Substantially all of TCI's assets are held by its wholly-owned subsidiary, Southern Properties Capital Ltd. (“SPC”), which was formed for the purpose of raising funds by issuing non-convertible bonds that were listed on the Tel Aviv Stock Exchange ("TASE"). At March 31, 2024, our portfolio of properties consisted of: ● Four office buildings comprising in aggregate of approximately 1,056,793 square feet; ● Fourteen multifamily properties, owned directly by us, comprising of 2,328 units; and ● Appr oximately 1,843 ac res of developed and undeveloped land. Our day to day operations are managed by Pillar Income Asset Management, Inc. (“Pillar”). Pillar's duties include, but are not limited to, locating, evaluating and recommending real estate and real estate-related investment opportunities, asset management, property development, construction management and arranging debt and equity financing with third party lenders and investors. We have no employees; all of our services are performed by Pillar employees. Three of our commercial properties are managed by Regis Realty Prime, LLC (“Regis”). Regis provides leasing and brokerage services. Our multifamily properties and one of our commercial properties are managed by outside management companies. Pillar and Regis are considered to be related parties (See Note 12 – Related Party Transactions).

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Short-Term Investments We account for our investment in corporate bonds and demand notes (collectively "debt securities") as held-to-maturity securities as we have the intent and the ability to hold these securities until maturity. Accordingly, our debt securities are carried at their amortized cost. The discount on these debt securities are amortized into interest income on a straight-line basis over the term of the underlying notes, which approximate the effective interest method. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted in accordance with such rules and regulations, although management believes the disclosures are adequate to prevent the information presented from being misleading. In the opinion of management, all adjustments (consisting of normal recurring matters) considered necessary for a fair presentation have been included. Certain prior year amounts have been reclassified to conform with the current year presentation. These reclassifications had no effect on the reported results of operation. An adjustment has been made to reclassify $3,208 interest expense to related party for the three months ended March 31, 2023 from interest expense to interest income on the consolidated statements of operations. The consolidated balance sheet at December 31, 2023 was derived from the audited consolidated financial statements at that date, but does not include all of the information and disclosures required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023. We consolidate entities in which we are considered to be the primary beneficiary of a variable interest entity (“VIE”) or have a majority of the voting interest of the entity. We have determined that we are a primary beneficiary of the VIE when we have (i) the power to direct the activities of a VIE that most significantly impacts its economic performance, and (ii) the obligations to absorb losses or the right to receive benefits that could potentially be significant to the VIE. In determining whether we are the primary beneficiary, we consider qualitative and quantitative factors, including ownership interest, management representation, ability to control decision and other contractual rights. We account for entities in which we have less than a controlling financial interest or entities where we are not deemed to be the primary beneficiary under the equity method of accounting. Accordingly, we include our share of the net earnings or losses of these entities in our results of operations.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Earnings Per Share (“EPS”) is computed by dividing net income available to common shares by the weighted-average number of common shares outstanding during the period. Shares issued during the period are weighted for the portion of the period that they were outstanding. The following table details our basic and diluted earnings per common share calculation: Three Months Ended March 31, 2024 2023 Net income $ 2,302 $ 4,219 Net income attributable to noncontrolling interests (551) (1,241) Net income attributable to common shares $ 1,751 $ 2,978 Weighted-average common shares outstanding — basic and diluted 16,152,043 16,152,043 EPS - attributable to common shares — basic and diluted $ 0.11 $ 0.18

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	3 Months Ended
	Mar. 31, 2024
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Information	Supplemental Cash Flow Information The following presents the schedule of interest paid and other supplemental cash flow information: Three Months Ended March 31, 2024 2023 Cash paid for interest $ 1,597 $ 8,720 Cash - beginning of period Cash and cash equivalents $ 36,740 $ 113,445 Restricted cash 42,327 108,883 $ 79,067 $ 222,328 Cash - end of period Cash and cash equivalents $ 54,700 $ 55,340 Restricted cash 38,352 55,188 $ 93,052 $ 110,528 Payments on mortgages, other notes and bonds payable Payments on mortgages and other notes payable $ 858 $ 832 Payments on bonds payable — 88,279 $ 858 $ 89,111 The following is a schedule of noncash investing and financing activities: Three Months Ended March 31, 2024 2023 Property acquired in exchange for reduction in related party receivable $ — $ 5,487

Operating Segments

Operating Segments	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
Operating Segments	Operating Segments Our segments are based on the internal reporting that we review for operational decision-making purposes. We operate in two reportable segments: (i) the acquisition, development, ownership and management of multifamily properties and (ii) the acquisition, ownership and management of commercial properties. The services for our multifamily segment include rental of apartments and other tenant services, including parking and storage space rental. Asset information by segment is not reported because we do not use this measure to assess performance or make decisions to allocate resources. Therefore, depreciation and amortization expense is not allocated among segments. General and administrative expenses, advisory fees, interest income and interest expense are not included in segment profit as our internal reporting addresses these items on a corporate level. The following table presents our reportable segments for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 Multifamily Segment Revenues $ 8,053 $ 7,373 Operating expenses (4,219) (3,708) Profit from segment 3,834 3,665 Commercial Segment Revenues 3,226 3,636 Operating expenses (2,415) (2,398) Profit from segment 811 1,238 Total profit from segments $ 4,645 $ 4,903 The table below reflects the reconciliation of total profit from segments to net income for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 Total profit from segments $ 4,645 $ 4,903 Other non-segment items of income (expense) Depreciation and amortization (3,172) (3,102) General and administrative (1,408) (3,161) Advisory fee to related party (2,202) (2,405) Other income 620 679 Interest income 5,733 8,295 Interest expense (1,922) (3,140) Gain on foreign currency transaction — 971 Income from unconsolidated joint ventures 483 2,419 Income tax provision (475) (1,240) Net income $ 2,302 $ 4,219

Lease Revenue

Lease Revenue	3 Months Ended
	Mar. 31, 2024
Leases [Abstract]
Lease Revenue	Lease Revenue We lease our multifamily properties and commercial properties under agreements that are classified as operating leases. Our multifamily property leases generally include minimum rents and charges for ancillary services. Our commercial property leases generally include minimum rents and recoveries for property taxes and common area maintenance. Minimum rental revenues are recognized on a straight-line basis over the terms of the related leases. The following table summarizes the components of our rental revenue for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 Fixed component $ 10,999 $ 10,708 Variable component 280 301 $ 11,279 $ 11,009 The following table summarizes the future rental payments that are payable to us from non-cancelable leases. The table excludes multifamily leases, which typically have a term of one-year or less: 2024 $ 11,441 2025 11,067 2026 10,700 2027 10,408 2028 9,681 Thereafter 16,393 $ 69,690

Real Estate Activity

Real Estate Activity	3 Months Ended
	Mar. 31, 2024
Real Estate [Abstract]
Real Estate Activity	Real Estate Activity Below is a summary of our real estate as of March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 Land $ 104,156 $ 104,156 Building and improvements 373,020 372,399 Tenant improvements 16,234 16,286 Construction in progress 79,873 76,110 Total cost 573,283 568,951 Less accumulated depreciation (70,144) (67,365) Total real estate $ 503,139 $ 501,586 On March 15, 2023, we entered into a development agreement with Pillar to build a 240 unit multifamily property in Lake Wales, Florida (" Lake Wales ") that is expected to be completed in 2025 for a total cost of approximately $55,330 . The cost of construction will be funded in part by a $33,000 construction loan (See Note 11 – Mortgages and Other Notes Payable). The development agreement provides for a $1,637 fee that will be paid to Pillar over the construction period. As of March 31, 2024, we have incurred a total of $18,888 in development costs. On November 6, 2023, we entered into a development agreement with Pillar to build a 216 unit multifamily property in McKinney, Texas ("Merano") that is expected to be completed in 2025 for a total cost of approximately $51,910. The cost of construction will be funded in part by a $25,407 construction loan (See Note 11 – Mortgages and Other Notes Payable). The development agreement provides for a $1,551 fee that will be paid to Pillar over the construction period. As of March 31, 2024, we have incurred a total of $8,916 in development costs. On December 15, 2023, we entered into a development agreement with Pillar to build a 216 unit multifamily property in Temple, Texas ("Bandera Ridge") that is expected to be completed in 2025 for a total cost of approximately $49,603. The cost of construction will be funded in part by a $23,500 construction loan (See Note 11 – Mortgages and Other Notes Payable). The development agreement provides for a $1,607 fee that will be paid to Pillar over the construction period. As of March 31, 2024, we have incurred a total of $3,124 in development costs. Construction in progress includes the cost of development of Windmill Farms and the costs associated with our multifamily development projects. We incurred depreciation expense of $3,018 and $2,935 for the three months ended March 31, 2024 and 2023, respectively.

Short-term Investments

Short-term Investments	3 Months Ended
	Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract]
Short-term Investments	Short-term Investments The following is a summary of our short term investment as of March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 Corporate bonds, at par value $ 70,266 $ 90,000 Demand notes 6,413 1,484 76,679 91,484 Less discount (526) (1,036) $ 76,153 $ 90,448 The average interest rate on the investments was 5.71% and 5.65% at March 31, 2024 and December 31, 2023, respectively.

Notes Receivable

Notes Receivable	3 Months Ended
	Mar. 31, 2024
Receivables [Abstract]
Notes Receivable	Notes Receivable The following table summarizes our notes receivable as of March 31, 2024 and December 31, 2023: Carrying value Property/Borrower March 31, 2024 December 31, 2023 Interest Rate Maturity Date ABC Land and Development, Inc. $ 4,408 $ 4,408 9.50 % 6/30/26 ABC Paradise, LLC 1,210 1,210 9.50 % 6/30/26 Autumn Breeze(1) 1,847 2,157 5.00 % 7/1/25 Bellwether Ridge(1) 3,798 3,798 5.00 % 11/1/26 Cascades at Spring Street(2)(3) 180 180 5.38 % 6/30/27 Dominion at Mercer Crossing(4) 6,167 6,354 9.50 % 6/7/28 Echo Station(2)(3) 10,305 10,305 5.38 % 12/31/32 Forest Pines(1) 6,472 6,472 5.00 % 5/1/27 Inwood on the Park(2)(3) 20,325 20,325 5.38 % 6/30/28 Kensington Park(2)(3) 8,217 10,262 5.38 % 3/31/27 Lake Shore Villas(2)(3) 6,000 6,000 5.38 % 12/31/32 Legacy Pleasant Grove 496 496 12.00 % 10/23/24 McKinney Ranch 3,926 3,926 6.00 % 9/15/24 Ocean Estates II(2)(3) 3,615 3,615 5.38 % 5/31/28 One Realco Land Holding, Inc. 1,728 1,728 9.50 % 6/30/26 Parc at Ingleside(1) 3,759 3,759 5.00 % 11/1/26 Parc at Opelika Phase II(1)(5) 3,190 3,190 10.00 % 1/13/23 Parc at Windmill Farms(1)(5) 7,886 7,886 5.00 % 11/1/22 Phillips Foundation for Better Living, Inc.(2) 182 182 5.38 % 3/31/28 Plaza at Chase Oaks(2)(3) 11,772 11,772 5.38 % 3/31/28 Plum Tree(1) 1,600 1,767 5.00 % 4/26/26 Polk County Land 3,000 3,000 9.50 % 6/30/26 Riverview on the Park Land, LLC 1,045 1,045 9.50 % 6/30/26 Spartan Land 5,907 5,907 6.00 % 1/16/25 Spyglass of Ennis(1) 4,882 5,179 5.00 % 11/1/24 Steeple Crest(1) 6,498 6,498 5.00 % 8/1/26 Timbers at The Park(2)(3) 11,173 11,173 5.38 % 12/31/32 Tuscany Villas(2)(3) 1,548 1,548 5.38 % 4/30/27 $ 141,136 $ 144,142 (1) The note is convertible, at our option, into a 100% ownership interest in the underlying property, and is collateralized by the underlying property. (2) The borrower is determined to be a related party due to our significant investment in the performance of the collateral secured by the notes receivable. (3) Principal and interest payments on the notes from Unified Housing Foundation, Inc. (“UHF”) are funded from surplus cash flow from operations, sale or refinancing of the underlying properties and are cross collateralized to the extent that any surplus cash available from any of the properties underlying the notes. On October 1, 2023, the interest rate on the notes was amended from a fixed rate of 12.0% to a floating rate indexed to the Secured Overnight Financing Rate ("SOFR") in effect on the last day of the preceding calendar quarter. In connection with the amendment, accrued interest of $4,159 was forgiven in exchange for participation in the proceeds from any future sale or refinancing of the underlying property. (4) The note bears interest at prime plus 1.0%. (5) We are working with the borrower to extend the maturity and/or exercise our conversion option.

Investment in Unconsolidated Jo

Investment in Unconsolidated Joint Ventures	3 Months Ended
	Mar. 31, 2024
Equity Method Investments and Joint Ventures [Abstract]
Investment in Unconsolidated Joint Ventures	Investment in Unconsolidated Joint Ventures Victory Abode Apartments, LLC On November 16, 2018 , our SPC subsidiary formed the Victory Abode Apartments, LLC ("VAA"), a joint venture with the Macquarie Group (“Macquarie”). VAA was formed as a result of our sale of a 50% ownership interest in a portfolio of multifamily properties to Macquarie in exchange for a 50% voting interest in VAA a nd a note payable. On September 16, 2022, VAA sold 45 of its properties (“VAA Sale Portfolio”) for $1,810,700, resulting in a gain on sale of $738,444 to the joint venture. In connection with the sale, we received an initial distribution of $182,848 from VAA. On November 1, 2022, we received an additional distribution from VAA, which included the full operational control of the remaining seven properties of VAA (“VAA Holdback Portfolio”) and a cash payment of $204,036. On March 23, 2023, we received $17,976 from VAA, which represented the remaining distribution of the proceeds from the sale of the VAA Sale Portfolio. We used our share of the proceeds from the sale of the VAA Sale Portfolio to invest in short-term investments and real estate, pay down our debt and for general corporate purposes. We anticipate that the final liquidation of the joint venture will be completed during the remainder of 2024. Gruppa Florentina, LLC We also own a 20% interest in Gruppa Florentina, LLC ("Milano"), which operates several pizza parlors in Central and Northern California. Milano also has 23 franchised locations, and two operating in Texas under the trade name Angelo & Vito’s Pizzerias.

Mortgages and Other Notes Payab

Mortgages and Other Notes Payable	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Mortgages and Other Notes Payable	Mortgages and Other Notes Payable The following table summarizes our mortgages and other notes payable as of March 31, 2024 and December 31, 2023: Carrying Value Interest Maturity Property/ Entity March 31, 2024 December 31, 2023 770 South Post Oak $ 11,126 $ 11,187 4.40 % 6/1/2025 Blue Lake Villas 9,459 9,503 3.15 % 11/1/2055 Blue Lake Villas Phase II 3,329 3,349 2.85 % 6/1/2052 Chelsea 8,018 8,064 3.40 % 12/1/2050 EQK Portage 3,350 3,350 10.00 % 11/13/2024 Forest Grove 6,951 6,988 3.75 % 5/5/2024 Landing on Bayou Cane 14,373 14,442 3.50 % 9/1/2053 Legacy at Pleasant Grove 12,633 12,716 3.60 % 4/1/2048 New Concept Energy 3,542 3,542 6.00 % 9/30/2025 Northside on Travis 11,327 11,394 2.50 % 2/1/2053 Parc at Denham Springs 16,312 16,399 3.75 % 4/1/2051 Parc at Denham Springs Phase II 15,562 15,608 4.05 % 2/1/2060 RCM HC Enterprises 5,086 5,086 5.00 % 12/31/2024 Residences at Holland Lake 10,373 10,424 3.60 % 3/1/2053 Villas at Bon Secour 19,104 19,205 3.08 % 9/1/2031 Villas of Park West I(1) 9,132 9,181 3.04 % 3/1/2053 Villas of Park West II(1) 8,290 8,334 3.18 % 3/1/2053 Vista Ridge 9,470 9,512 4.00 % 8/1/2053 Windmill Farms(2) 4,390 4,399 7.50 % 2/28/2026 $ 181,827 $ 182,683 (1) On October 16, 2023, we received approval from the lender to assume the loan on the property that we acquired from our joint venture (See Note 10 - Investment in Unconsolidated Joint Ventures). (2) On February 8, 2024, we extended the maturity to February 28, 2026 at an interest rate of 7.50%. As of March 31, 2024 , we were in compliance with all of our loan covenants except for the minimum debt service coverage ratio (“DSCR”) for the loan on 770 South Post Oak. As a result, the lender requires us to lock the surplus cash flow of the property into a designated deposit account controlled by them, until we are in compliance with the DSCR for a period of two consecutive quarters. On March 15, 2023 , we entered into a $33,000 construction loan to finance the development of Lake Wales (See Note 7 - Real Estate Activity) that bears interest at SOFR plus 3% and matures on March 15, 2026 , with two one-year extension options. As of March 31, 2024 , no advances have been drawn on the loan. On November 6, 2023 , we entered into a $25,407 construction loan to finance the development of Merano (See Note 7 - Real Estate Activity) that bears interest at prime plus 0.25% and matures on November 6, 2028 . As of March 31, 2024 , no advances have been drawn on the loan. On December 15, 2023 , we entered into a $23,500 construction loan to finance the development of Bandera Ridge (See Note 7 - Real Estate Activity) that bears interest at SOFR plus 3% and matures on December 15, 2028 . As of March 31, 2024 , no advances have been drawn on the loan. All of the above mortgages and other notes payable are collateralized by the underlying property. In addition, we have guaranteed the loans on Bandera Ridge, Forest Grove, Lake Wales, Merano, Villas at Bon Secour and Windmill Farms.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2024
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions We engage in certain services and business transactions with related parties, including but not limited to, the rent of office space, leasing services, asset management, administrative services, and the acquisition and dispositions of real estate. Transactions involving related parties cannot be presumed to be carried out on an arm’s length basis due to the absence of free market forces that naturally exist in business dealings between two or more unrelated entities. Related party transactions may not always be favorable to our business and may include terms, conditions and agreements that are not necessarily beneficial to, or in our best interest. Pillar and Regis are wholly owned by a subsidiary of May Realty Holdings, Inc. ("MRHI"), which owns appro ximately 90.8% of the Company. Pillar is compensated for advisory services in accordance with an advisory agreement and and is compensated for development and construction services in accordance with project specific development agreements. Regis receives property management fees and leasing commissions in accordance with the terms of its property-level management agreements. In addition, Regis is entitled to receive real estate brokerage commissions in accordance with the terms of a non-exclusive brokerage agreement. Rental income includes $178 and $268 for the three months ended March 31, 2024 and 2023 , respectively, for office space leased to Pillar and Regis. Property operating expense includes $80 and $100 for the three months ended March 31, 2024 and 2023 , respectively, for management fees on commercial properties payable to Regis. General and administrative expense includes $934 and $1,539 for the three months ended March 31, 2024 and 2023 , respectively, for employee compensation and other reimbursable costs payable to Pillar. Advisory fees paid to Pillar were $2,202 and $2,405 for the three months ended March 31, 2024 and 2023 , respectively. Development fees paid to Pillar were $388 for the three months ended March 31, 2024. Notes receivable include amounts held by UHF (See Note 9 – Notes Receivable). UHF is deemed to be a related party due to our significant investment in the performance of the collateral secured by the notes receivable. In addition, we have a related party receivable from Pillar ("Pillar Receivable"), which represents amounts advanced to Pillar net of unreimbursed fees, expenses and costs as provided above. The Pillar Receivable bears interest in accordance with a cash management agreement. On January 1, 2024, an amendment to the cash management agreement changed the interest rate on the Pillar Receivable from prime plus one percent to SOFR. Interest income on the UHF notes and the Pillar Receivable was $2,298 and $4,603 for the three months ended March 31, 2024 and 2023 , respectively.

Noncontrolling Interests

Noncontrolling Interests	3 Months Ended
	Mar. 31, 2024
Noncontrolling Interest [Abstract]
Noncontrolling Interests	Noncontrolling Interests The noncontrolling interest represents the third party ownership interest in TCI and Income Opportunity Realty Investors, Inc. ("IOR"). We owned 78.4% of TCI at March 31, 2024 and December 31, 2023, which in turn owned 82.3% and 81.1% of IOR as of March 31, 2024 and December 31, 2023 , respectively .

Deferred Income

Deferred Income	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Deferred Income	Deferred Income In previous years, we sold properties to related parties at a gain and therefore the sales criteria for the full accrual method was not met, and as such we deferred the gain recognition and accounted for the sales by applying the finance, deposit, installment or cost recovery methods, as appropriate. The gain on these transactions is deferred until the properties are sold to a non-related third party. As of March 31, 2024 and December 31, 2023, we had deferred gain of $9,791.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes We are part of a tax sharing and compensating agreement with respect to federal income taxes with MRHI, TCI and IOR. In accordance with the agreement, o ur expense in each year is calculated based on the amount of losses absorbed by taxable income multiplied by the maximum statutory tax rate of 21%. The following table summarizes our income tax provision: Three Months Ended March 31, 2024 2023 Current $ 475 $ 41 Deferred — 1,199 $ 475 $ 1,240

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies We believe that we will generate excess cash from property operations in the next twelve months; such excess, however, might not be sufficient to discharge all of our obligations as they become due. We intend to sell income-producing assets, refinance real estate and obtain additional borrowings primarily secured by real estate to meet our liquidity requirements. We were a defendant in litigation with David Clapper and related entities (collectively, "Clapper”) regarding a multifamily property transaction that occurred in 1988. The litigation led to a substantial judgment against our affiliate and Clapper subsequently sued numerous other entities including us in Federal Court to collect that judgment. The case was tried by a jury in May 2021. The jury found the defendants owed Clapper nothing and the Court issued a take nothing judgment. Clapper subsequently filed an appeal to the US Fifth Circuit Court of Appeals, and on March 8, 2024, the court reversed the judgment and remanded the case for further proceedings.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2024
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events The date to which events occurring after March 31, 2024, the date of the most recent balance sheet, have been evaluated for possible adjustment to the consolidated financial statements or disclosure is May 9, 2024, which is the date on which the consolidated financial statements were available to be issued.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 1,751	$ 2,978

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Short-Term Investments	Short-Term Investments We account for our investment in corporate bonds and demand notes (collectively "debt securities") as held-to-maturity securities as we have the intent and the ability to hold these securities until maturity. Accordingly, our debt securities are carried at their amortized cost. The discount on these debt securities are amortized into interest income on a straight-line basis over the term of the underlying notes, which approximate the effective interest method.
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted in accordance with such rules and regulations, although management believes the disclosures are adequate to prevent the information presented from being misleading. In the opinion of management, all adjustments (consisting of normal recurring matters) considered necessary for a fair presentation have been included. Certain prior year amounts have been reclassified to conform with the current year presentation. These reclassifications had no effect on the reported results of operation. An adjustment has been made to reclassify $3,208 interest expense to related party for the three months ended March 31, 2023 from interest expense to interest income on the consolidated statements of operations. The consolidated balance sheet at December 31, 2023 was derived from the audited consolidated financial statements at that date, but does not include all of the information and disclosures required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023. We consolidate entities in which we are considered to be the primary beneficiary of a variable interest entity (“VIE”) or have a majority of the voting interest of the entity. We have determined that we are a primary beneficiary of the VIE when we have (i) the power to direct the activities of a VIE that most significantly impacts its economic performance, and (ii) the obligations to absorb losses or the right to receive benefits that could potentially be significant to the VIE. In determining whether we are the primary beneficiary, we consider qualitative and quantitative factors, including ownership interest, management representation, ability to control decision and other contractual rights. We account for entities in which we have less than a controlling financial interest or entities where we are not deemed to be the primary beneficiary under the equity method of accounting. Accordingly, we include our share of the net earnings or losses of these entities in our results of operations.

Earnings per Share (Tables)

Earnings per Share (Tables)	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Schedule of Earnings Per Share	The following table details our basic and diluted earnings per common share calculation: Three Months Ended March 31, 2024 2023 Net income $ 2,302 $ 4,219 Net income attributable to noncontrolling interests (551) (1,241) Net income attributable to common shares $ 1,751 $ 2,978 Weighted-average common shares outstanding — basic and diluted 16,152,043 16,152,043 EPS - attributable to common shares — basic and diluted $ 0.11 $ 0.18

Supplemental Cash Flow Inform_2

Supplemental Cash Flow Information (Tables)	3 Months Ended
	Mar. 31, 2024
Supplemental Cash Flow Elements [Abstract]
Schedule of Interest Paid and Other Supplemental Cash Flow Information	The following presents the schedule of interest paid and other supplemental cash flow information: Three Months Ended March 31, 2024 2023 Cash paid for interest $ 1,597 $ 8,720 Cash - beginning of period Cash and cash equivalents $ 36,740 $ 113,445 Restricted cash 42,327 108,883 $ 79,067 $ 222,328 Cash - end of period Cash and cash equivalents $ 54,700 $ 55,340 Restricted cash 38,352 55,188 $ 93,052 $ 110,528 Payments on mortgages, other notes and bonds payable Payments on mortgages and other notes payable $ 858 $ 832 Payments on bonds payable — 88,279 $ 858 $ 89,111 The following is a schedule of noncash investing and financing activities: Three Months Ended March 31, 2024 2023 Property acquired in exchange for reduction in related party receivable $ — $ 5,487

Operating Segments (Tables)

Operating Segments (Tables)	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
Schedule of Profit by Reportable segment	The following table presents our reportable segments for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 Multifamily Segment Revenues $ 8,053 $ 7,373 Operating expenses (4,219) (3,708) Profit from segment 3,834 3,665 Commercial Segment Revenues 3,226 3,636 Operating expenses (2,415) (2,398) Profit from segment 811 1,238 Total profit from segments $ 4,645 $ 4,903
Schedule of Reconciliation of Revenue from Segments to Consolidated	The table below reflects the reconciliation of total profit from segments to net income for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 Total profit from segments $ 4,645 $ 4,903 Other non-segment items of income (expense) Depreciation and amortization (3,172) (3,102) General and administrative (1,408) (3,161) Advisory fee to related party (2,202) (2,405) Other income 620 679 Interest income 5,733 8,295 Interest expense (1,922) (3,140) Gain on foreign currency transaction — 971 Income from unconsolidated joint ventures 483 2,419 Income tax provision (475) (1,240) Net income $ 2,302 $ 4,219

Lease Revenue (Tables)

Lease Revenue (Tables)	3 Months Ended
	Mar. 31, 2024
Leases [Abstract]
Schedule of Rental Revenue	The following table summarizes the components of our rental revenue for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 Fixed component $ 10,999 $ 10,708 Variable component 280 301 $ 11,279 $ 11,009
Schedule of Future Rental Payments	The following table summarizes the future rental payments that are payable to us from non-cancelable leases. The table excludes multifamily leases, which typically have a term of one-year or less: 2024 $ 11,441 2025 11,067 2026 10,700 2027 10,408 2028 9,681 Thereafter 16,393 $ 69,690

Real Estate Activity (Tables)

Real Estate Activity (Tables)	3 Months Ended
	Mar. 31, 2024
Real Estate [Abstract]
Schedule of the Real Estate Owned	Below is a summary of our real estate as of March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 Land $ 104,156 $ 104,156 Building and improvements 373,020 372,399 Tenant improvements 16,234 16,286 Construction in progress 79,873 76,110 Total cost 573,283 568,951 Less accumulated depreciation (70,144) (67,365) Total real estate $ 503,139 $ 501,586

Short-term Investments (Tables)

Short-term Investments (Tables)	3 Months Ended
	Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract]
Schedule of short term investment	The following is a summary of our short term investment as of March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 Corporate bonds, at par value $ 70,266 $ 90,000 Demand notes 6,413 1,484 76,679 91,484 Less discount (526) (1,036) $ 76,153 $ 90,448

Notes Receivable (Tables)

Notes Receivable (Tables)	3 Months Ended
	Mar. 31, 2024
Receivables [Abstract]
Schedule of Notes Receivable	The following table summarizes our notes receivable as of March 31, 2024 and December 31, 2023: Carrying value Property/Borrower March 31, 2024 December 31, 2023 Interest Rate Maturity Date ABC Land and Development, Inc. $ 4,408 $ 4,408 9.50 % 6/30/26 ABC Paradise, LLC 1,210 1,210 9.50 % 6/30/26 Autumn Breeze(1) 1,847 2,157 5.00 % 7/1/25 Bellwether Ridge(1) 3,798 3,798 5.00 % 11/1/26 Cascades at Spring Street(2)(3) 180 180 5.38 % 6/30/27 Dominion at Mercer Crossing(4) 6,167 6,354 9.50 % 6/7/28 Echo Station(2)(3) 10,305 10,305 5.38 % 12/31/32 Forest Pines(1) 6,472 6,472 5.00 % 5/1/27 Inwood on the Park(2)(3) 20,325 20,325 5.38 % 6/30/28 Kensington Park(2)(3) 8,217 10,262 5.38 % 3/31/27 Lake Shore Villas(2)(3) 6,000 6,000 5.38 % 12/31/32 Legacy Pleasant Grove 496 496 12.00 % 10/23/24 McKinney Ranch 3,926 3,926 6.00 % 9/15/24 Ocean Estates II(2)(3) 3,615 3,615 5.38 % 5/31/28 One Realco Land Holding, Inc. 1,728 1,728 9.50 % 6/30/26 Parc at Ingleside(1) 3,759 3,759 5.00 % 11/1/26 Parc at Opelika Phase II(1)(5) 3,190 3,190 10.00 % 1/13/23 Parc at Windmill Farms(1)(5) 7,886 7,886 5.00 % 11/1/22 Phillips Foundation for Better Living, Inc.(2) 182 182 5.38 % 3/31/28 Plaza at Chase Oaks(2)(3) 11,772 11,772 5.38 % 3/31/28 Plum Tree(1) 1,600 1,767 5.00 % 4/26/26 Polk County Land 3,000 3,000 9.50 % 6/30/26 Riverview on the Park Land, LLC 1,045 1,045 9.50 % 6/30/26 Spartan Land 5,907 5,907 6.00 % 1/16/25 Spyglass of Ennis(1) 4,882 5,179 5.00 % 11/1/24 Steeple Crest(1) 6,498 6,498 5.00 % 8/1/26 Timbers at The Park(2)(3) 11,173 11,173 5.38 % 12/31/32 Tuscany Villas(2)(3) 1,548 1,548 5.38 % 4/30/27 $ 141,136 $ 144,142 (1) The note is convertible, at our option, into a 100% ownership interest in the underlying property, and is collateralized by the underlying property. (2) The borrower is determined to be a related party due to our significant investment in the performance of the collateral secured by the notes receivable. (3) Principal and interest payments on the notes from Unified Housing Foundation, Inc. (“UHF”) are funded from surplus cash flow from operations, sale or refinancing of the underlying properties and are cross collateralized to the extent that any surplus cash available from any of the properties underlying the notes. On October 1, 2023, the interest rate on the notes was amended from a fixed rate of 12.0% to a floating rate indexed to the Secured Overnight Financing Rate ("SOFR") in effect on the last day of the preceding calendar quarter. In connection with the amendment, accrued interest of $4,159 was forgiven in exchange for participation in the proceeds from any future sale or refinancing of the underlying property. (4) The note bears interest at prime plus 1.0%. (5) We are working with the borrower to extend the maturity and/or exercise our conversion option.

Mortgages and Other Notes Pay_2

Mortgages and Other Notes Payable (Tables)	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Schedule of Debt	The following table summarizes our mortgages and other notes payable as of March 31, 2024 and December 31, 2023: Carrying Value Interest Maturity Property/ Entity March 31, 2024 December 31, 2023 770 South Post Oak $ 11,126 $ 11,187 4.40 % 6/1/2025 Blue Lake Villas 9,459 9,503 3.15 % 11/1/2055 Blue Lake Villas Phase II 3,329 3,349 2.85 % 6/1/2052 Chelsea 8,018 8,064 3.40 % 12/1/2050 EQK Portage 3,350 3,350 10.00 % 11/13/2024 Forest Grove 6,951 6,988 3.75 % 5/5/2024 Landing on Bayou Cane 14,373 14,442 3.50 % 9/1/2053 Legacy at Pleasant Grove 12,633 12,716 3.60 % 4/1/2048 New Concept Energy 3,542 3,542 6.00 % 9/30/2025 Northside on Travis 11,327 11,394 2.50 % 2/1/2053 Parc at Denham Springs 16,312 16,399 3.75 % 4/1/2051 Parc at Denham Springs Phase II 15,562 15,608 4.05 % 2/1/2060 RCM HC Enterprises 5,086 5,086 5.00 % 12/31/2024 Residences at Holland Lake 10,373 10,424 3.60 % 3/1/2053 Villas at Bon Secour 19,104 19,205 3.08 % 9/1/2031 Villas of Park West I(1) 9,132 9,181 3.04 % 3/1/2053 Villas of Park West II(1) 8,290 8,334 3.18 % 3/1/2053 Vista Ridge 9,470 9,512 4.00 % 8/1/2053 Windmill Farms(2) 4,390 4,399 7.50 % 2/28/2026 $ 181,827 $ 182,683 (1) On October 16, 2023, we received approval from the lender to assume the loan on the property that we acquired from our joint venture (See Note 10 - Investment in Unconsolidated Joint Ventures). (2) On February 8, 2024, we extended the maturity to February 28, 2026 at an interest rate of 7.50%.

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Schedule of Income Tax (Benefit) Expense	The following table summarizes our income tax provision: Three Months Ended March 31, 2024 2023 Current $ 475 $ 41 Deferred — 1,199 $ 475 $ 1,240

Organization (Details)

Organization (Details)	Mar. 31, 2024 a ft² property apartment	Dec. 31, 2023
Office Building
Real Estate Properties [Line Items]
Number of real estate properties	4
Area of property (sq. ft.) | ft²	1,056,793
Apartment Building
Real Estate Properties [Line Items]
Number of real estate properties	14
Number of units in real estate property | apartment	2,328
Land and Land Improvements
Real Estate Properties [Line Items]
Acres of developed and undeveloped land | a	1,843
Regis Realty Prime, LLC | Commercial Properties
Real Estate Properties [Line Items]
Number of real estate properties	3
ARL | Related Party Entities | Majority Shareholder
Real Estate Properties [Line Items]
Ownership interest	90%
TCI
Real Estate Properties [Line Items]
Ownership interest	78.40%	78.40%

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Related Party Transaction [Line Items]
Interest expense	$ 1,922	$ 3,140
Related Party
Related Party Transaction [Line Items]
Interest expense		$ 3,208

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Earnings Per Share [Abstract]
Net income	$ 2,302	$ 4,219
Net income attributable to noncontrolling interests	(551)	(1,241)
Net income attributable to common shares	$ 1,751	$ 2,978
Weighted-average common shares outstanding - basic (in shares)	16,152,043	16,152,043
Weighted-average common shares outstanding - diluted (in shares)	16,152,043	16,152,043
EPS - attributable to common shares- basic (in dollars per share)	$ 0.11	$ 0.18
EPS - attributable to common shares- diluted (in dollars per share)	$ 0.11	$ 0.18

Supplemental Cash Flows Informa

Supplemental Cash Flows Information - Noncash Investing and Financing Activities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Supplemental Cash Flow Elements [Roll Forward]
Cash paid for interest	$ 1,597	$ 8,720
Cash and cash equivalents, beginning balance	36,740	113,445
Restricted cash, beginning balance	42,327	108,883
Cash, cash equivalents and restricted cash, beginning of period	79,067	222,328
Cash and cash equivalents, ending balance	54,700	55,340
Restricted cash, ending balance	38,352	55,188
Cash, cash equivalents and restricted cash, end of period	93,052	110,528
Payments on mortgages, other notes and bonds payable
Payments on mortgages and other notes payable	858	832
Payments on bonds payable	0	88,279
Payments on mortgages, other notes and bonds payable	$ 858	$ 89,111

Supplemental Cash Flows Infor_2

Supplemental Cash Flows Information - Schedule of Noncash Investing and Financing Activities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Related Party
Related Party Transaction [Line Items]
Property acquired in exchange for reduction in related party receivable	$ 0	$ 5,487

Operating Segments - Narrative

Operating Segments - Narrative (Details)	3 Months Ended
	Mar. 31, 2024 segment
Segment Reporting [Abstract]
Number of reportable segments	2

Operating Segments - Profit by

Operating Segments - Profit by Reportable Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Segment Reporting Information [Line Items]
Revenues	$ 11,899	$ 11,688
Total profit from segments	(1,517)	(3,086)
Operating Segments
Segment Reporting Information [Line Items]
Total profit from segments	4,645	4,903
Operating Segments | Multifamily Segment
Segment Reporting Information [Line Items]
Revenues	8,053	7,373
Operating expenses	(4,219)	(3,708)
Profit from segment	3,834	3,665
Operating Segments | Commercial Segment
Segment Reporting Information [Line Items]
Revenues	3,226	3,636
Operating expenses	(2,415)	(2,398)
Profit from segment	$ 811	$ 1,238

Operating Segments - Profit b_2

Operating Segments - Profit by Reportable Segment to Net Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Segment Reporting Information [Line Items]
Total profit from segments	$ (1,517)	$ (3,086)
Depreciation and amortization	(3,172)	(3,102)
General and administrative	(1,408)	(3,161)
Advisory fee to related party	(2,202)	(2,405)
Other income	620	679
Interest income	5,733	8,295
Interest expense	(1,922)	(3,140)
Gain on foreign currency transaction	0	971
Income from unconsolidated joint ventures	483	2,419
Income tax provision	(475)	(1,240)
Net income	2,302	4,219
Operating Segments
Segment Reporting Information [Line Items]
Total profit from segments	4,645	4,903
Other non-segment items of income (expense)
Segment Reporting Information [Line Items]
Depreciation and amortization	(3,172)	(3,102)
General and administrative	(1,408)	(3,161)
Advisory fee to related party	(2,202)	(2,405)
Other income	620	679
Interest income	5,733	8,295
Interest expense	(1,922)	(3,140)
Gain on foreign currency transaction	0	971
Income from unconsolidated joint ventures	483	2,419
Income tax provision	(475)	(1,240)
Net income	$ 2,302	$ 4,219

Lease Revenue - Schedule of Ren

Lease Revenue - Schedule of Rental Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Leases [Abstract]
Fixed component	$ 10,999	$ 10,708
Variable component	280	301
Total rental revenue	$ 11,279	$ 11,009

Lease Revenue - Schedule of Fut

Lease Revenue - Schedule of Future Rental Payments (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Leases [Abstract]
2024	$ 11,441
2025	11,067
2026	10,700
2027	10,408
2028	9,681
Thereafter	16,393
Total	$ 69,690

Real Estate Activity - Real Est

Real Estate Activity - Real Estate Investment Components (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Real Estate [Abstract]
Land	$ 104,156	$ 104,156
Building and improvements	373,020	372,399
Tenant improvements	16,234	16,286
Construction in progress	79,873	76,110
Total cost	573,283	568,951
Less accumulated depreciation	(70,144)	(67,365)
Total real estate	$ 503,139	$ 501,586

Real Estate Activity - Narrativ

Real Estate Activity - Narrative (Details) $ in Thousands				3 Months Ended
	Dec. 15, 2023 USD ($) property	Nov. 06, 2023 USD ($) apartment	Mar. 15, 2023 USD ($) apartment	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)
Real Estate [Line Items]
Depreciation				$ 3,018	$ 2,935
Lake Wales
Real Estate [Line Items]
Number of units in real estate property | apartment			240
Real estate investment property, at cost			$ 55,330
Proceeds from construction loans payable			33,000
Fees related to construction			$ 1,637
Development costs				18,888
McKinney
Real Estate [Line Items]
Number of units in real estate property | apartment		216
Real estate investment property, at cost		$ 51,910
Proceeds from construction loans payable		25,407
Fees related to construction		$ 1,551
Development costs				8,916
Bandera Ridge
Real Estate [Line Items]
Number of units in real estate property | property	216
Real estate investment property, at cost	$ 49,603
Proceeds from construction loans payable	23,500
Fees related to construction	$ 1,607
Development costs				$ 3,124

Short-term Investments - Schedu

Short-term Investments - Schedule of Short-term Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Short Term Investment [Line Items]
Short term investment, gross	$ 76,679	$ 91,484
Less discount	(526)	(1,036)
Short-term investments	76,153	90,448
Corporate bonds, at par value
Short Term Investment [Line Items]
Short term investment, gross	70,266	90,000
Demand notes
Short Term Investment [Line Items]
Short term investment, gross	$ 6,413	$ 1,484

Short-term Investments (Details

Short-term Investments (Details)	Mar. 31, 2024	Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Investment interest rate	5.71%	5.65%

Notes Receivable - Schedule of

Notes Receivable - Schedule of Notes Receivable (Details) - USD ($) $ in Thousands		3 Months Ended
	Oct. 01, 2023	Mar. 31, 2024	Dec. 31, 2023
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 141,136	$ 144,142
Interest Rate	12%
Accrued interest		$ 4,159
Ownership interest if note converted		100%
Notes Receivable | ABC Land and Development, Inc.
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 4,408	4,408
Interest Rate		9.50%
Notes Receivable | ABC Paradise, LLC
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 1,210	1,210
Interest Rate		9.50%
Notes Receivable | Autumn Breeze
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 1,847	2,157
Interest Rate		5%
Notes Receivable | Bellwether Ridge
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 3,798	3,798
Interest Rate		5%
Notes Receivable | Cascades at Spring Street
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 180	180
Interest Rate		5.38%
Notes Receivable | Dominion at Mercer Crossing
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 6,167	6,354
Interest Rate		9.50%
Notes Receivable | Dominion at Mercer Crossing | Prime Rate
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Interest Rate		1%
Notes Receivable | Echo Station
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 10,305	10,305
Interest Rate		5.38%
Notes Receivable | Forest Pines
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 6,472	6,472
Interest Rate		5%
Notes Receivable | Inwood on the Park
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 20,325	20,325
Interest Rate		5.38%
Notes Receivable | Kensington Park
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 8,217	10,262
Interest Rate		5.38%
Notes Receivable | Lake Shore Villas
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 6,000	6,000
Interest Rate		5.38%
Notes Receivable | Legacy Pleasant Grove
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 496	496
Interest Rate		12%
Notes Receivable | McKinney Ranch
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 3,926	3,926
Interest Rate		6%
Notes Receivable | Ocean Estates II
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 3,615	3,615
Interest Rate		5.38%
Notes Receivable | One Realco Land Holding, Inc.
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 1,728	1,728
Interest Rate		9.50%
Notes Receivable | Parc at Ingleside
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 3,759	3,759
Interest Rate		5%
Notes Receivable | Parc at Opelika Phase II
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 3,190	3,190
Interest Rate		10%
Notes Receivable | Parc at Windmill Farms
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 7,886	7,886
Interest Rate		5%
Notes Receivable | Phillips Foundation for Better Living, Inc.
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 182	182
Interest Rate		5.38%
Notes Receivable | Plaza at Chase Oaks
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 11,772	11,772
Interest Rate		5.38%
Notes Receivable | Plum Tree
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 1,600	1,767
Interest Rate		5%
Notes Receivable | Polk County Land
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 3,000	3,000
Interest Rate		9.50%
Notes Receivable | Riverview on the Park Land, LLC
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 1,045	1,045
Interest Rate		9.50%
Notes Receivable | Spartan Land
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 5,907	5,907
Interest Rate		6%
Notes Receivable | Spyglass of Ennis
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 4,882	5,179
Interest Rate		5%
Notes Receivable | Steeple Crest
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 6,498	6,498
Interest Rate		5%
Notes Receivable | Timbers at The Park
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 11,173	11,173
Interest Rate		5.38%
Notes Receivable | Tuscany Villas
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying value		$ 1,548	$ 1,548
Interest Rate		5.38%

Investment in Unconsolidated _2

Investment in Unconsolidated Joint Ventures (Details) $ in Thousands				3 Months Ended
	Mar. 23, 2023 USD ($)	Nov. 01, 2022 USD ($) property	Sep. 16, 2022 USD ($) property	Mar. 31, 2024 USD ($) franchised_location	Mar. 31, 2023 USD ($)	Nov. 16, 2018
Schedule of Equity Method Investments [Line Items]
Distribution from unconsolidated joint venture				$ 0	$ 17,976
VAA Sale Portfolio | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations
Schedule of Equity Method Investments [Line Items]
Proceeds from sale			$ 1,810,700
Gain on sale			738,444
Distribution from unconsolidated joint venture		$ 204,036	$ 182,848
VAA | Gruppa Florentina LLC
Schedule of Equity Method Investments [Line Items]
Number of franchised locations | franchised_location				23
VAA | Gruppa Florentina LLC | Angelo And Vito's Pizzerias
Schedule of Equity Method Investments [Line Items]
Number of franchised locations | franchised_location				2
VAA | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations
Schedule of Equity Method Investments [Line Items]
Number of real estate properties | property		7
VAA | VAA
Schedule of Equity Method Investments [Line Items]
Percentage of ownership in VAA						50%
VAA | VAA | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations
Schedule of Equity Method Investments [Line Items]
Number of real estate properties | property			45
VAA | VAA | VAA Sale Portfolio
Schedule of Equity Method Investments [Line Items]
Distribution of income from unconsolidated joint ventures	$ 17,976
VAA | VAA | VAA
Schedule of Equity Method Investments [Line Items]
Percentage of ownership in VAA						50%
Milano | VAA | Milano
Schedule of Equity Method Investments [Line Items]
Percentage of ownership in VAA				20%

Mortgages and Other Notes Pay_3

Mortgages and Other Notes Payable - Schedule of Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Feb. 08, 2024	Dec. 31, 2023
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	$ 181,827		$ 182,683
Mortgages and Other Notes Payable | 770 South Post Oak
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	$ 11,126		11,187
Interest Rate	4.40%
Mortgages and Other Notes Payable | Blue Lake Villas
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	$ 9,459		9,503
Interest Rate	3.15%
Mortgages and Other Notes Payable | Blue Lake Villas Phase II
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	$ 3,329		3,349
Interest Rate	2.85%
Mortgages and Other Notes Payable | Chelsea
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	$ 8,018		8,064
Interest Rate	3.40%
Mortgages and Other Notes Payable | EQK Portage
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	$ 3,350		3,350
Interest Rate	10%
Mortgages and Other Notes Payable | Forest Grove
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	$ 6,951		6,988
Interest Rate	3.75%
Mortgages and Other Notes Payable | Landing on Bayou Cane
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	$ 14,373		14,442
Interest Rate	3.50%
Mortgages and Other Notes Payable | Legacy at Pleasant Grove
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	$ 12,633		12,716
Interest Rate	3.60%
Mortgages and Other Notes Payable | New Concept Energy
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	$ 3,542		3,542
Interest Rate	6%
Mortgages and Other Notes Payable | Northside on Travis
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	$ 11,327		11,394
Interest Rate	2.50%
Mortgages and Other Notes Payable | Parc at Denham Springs
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	$ 16,312		16,399
Interest Rate	3.75%
Mortgages and Other Notes Payable | Parc at Denham Springs Phase II
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	$ 15,562		15,608
Interest Rate	4.05%
Mortgages and Other Notes Payable | RCM HC Enterprises
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	$ 5,086		5,086
Interest Rate	5%
Mortgages and Other Notes Payable | Residences at Holland Lake
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	$ 10,373		10,424
Interest Rate	3.60%
Mortgages and Other Notes Payable | Villas at Bon Secour
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	$ 19,104		19,205
Interest Rate	3.08%
Mortgages and Other Notes Payable | Villas of Park West I
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	$ 9,132		9,181
Interest Rate	3.04%
Mortgages and Other Notes Payable | Villas of Park West II
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	$ 8,290		8,334
Interest Rate	3.18%
Mortgages and Other Notes Payable | Vista Ridge
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	$ 9,470		9,512
Interest Rate	4%
Mortgages and Other Notes Payable | Windmill Farms
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Carrying Value	$ 4,390		$ 4,399
Interest Rate	7.50%	7.50%

Mortgages and Other Notes Pay_4

Mortgages and Other Notes Payable - Narrative (Details) $ in Thousands	Dec. 15, 2023 USD ($)	Nov. 06, 2023 USD ($)	Mar. 15, 2023 USD ($) extension_option
Lake Wales
Debt Instrument [Line Items]
Proceeds from construction loans payable			$ 33,000
Number of extension options | extension_option			2
Extension term			1 year
Lake Wales | SOFR
Debt Instrument [Line Items]
Variable interest rate	3%		3%
Lake Wales | Prime
Debt Instrument [Line Items]
Variable interest rate		0.25%
McKinney
Debt Instrument [Line Items]
Proceeds from construction loans payable		$ 25,407
Bandera Ridge
Debt Instrument [Line Items]
Proceeds from construction loans payable	$ 23,500

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Related Party Transaction [Line Items]
Rental revenue	$ 11,279	$ 11,009
Property operating expenses	6,634	6,106
General and administrative	1,408	3,161
Advisory fee to related party	2,202	2,405
Development fees to related party	388
Interest income	$ 5,733	8,295
Investment interest rate	5.71%		5.65%
Related Party | Pillar and Regis
Related Party Transaction [Line Items]
Rental revenue	$ 178	268
Related Party | Regis
Related Party Transaction [Line Items]
Property operating expenses	80	100
Related Party | Pillar
Related Party Transaction [Line Items]
General and administrative	934	1,539
Advisory fee to related party	2,202	2,405
Related Party | UHF and Pillar
Related Party Transaction [Line Items]
Interest income	$ 2,298	$ 4,603
Investment interest rate	1%
ARL | Related Party | MRHI
Related Party Transaction [Line Items]
Ownership interest	90.80%

Noncontrolling Interest (Detail

Noncontrolling Interest (Details)	Mar. 31, 2024	Dec. 31, 2023
TCI
Noncontrolling Interest [Line Items]
Ownership interest	78.40%	78.40%
IOR
Noncontrolling Interest [Line Items]
Ownership interest	82.30%	81.10%

Deferred Income (Details)

Deferred Income (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Deferred revenue	$ 9,791	$ 9,791

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Current	$ 475	$ 41
Deferred	0	1,199
Income tax provision	$ 475	$ 1,240

Subsequent Events (Details)

Subsequent Events (Details) - McKinney $ in Thousands	Nov. 06, 2023 USD ($) apartment
Subsequent Event [Line Items]
Number of units in real estate property | apartment	216
Real estate investment property, at cost	$ 51,910
Proceeds from construction loans payable	25,407
Fees related to construction	$ 1,551