Exhibit 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE | Contact: | |
Transcontinental Realty Investors, Inc. | ||
Investors Relations | ||
(800) 400-6407 | ||
investor.relations@primeasset.com |
Transcontinental Realty Investors, Inc. Reports Fourth Quarter and Full Year 2009 Financial Results
DALLAS (April 1, 2010) — Transcontinental Realty Investors, Inc. (NYSE: TCI), a Dallas-based real estate investment company, today reported results of operations for the year ended December 31, 2009. TCI reported a net loss applicable to common shares of $80.7 million or $9.95 per share in 2009, as compared to prior year net income applicable to common shares of $31.2 million or $3.86 per share. Net loss for the three months ended December 31, 2009 was $26.0 million or $3.20 per share, as compared to prior year net loss applicable to common shares of $14.5 million or $1.80 per share.
Results of operations for the year ended December 31, 2009 as compared to the same period ended 2008;
Rental revenues were $151.6 million for the twelve months ended December 31, 2009. The rental revenues for 2009, as compared to the same period in 2008, increased by $13.3 million, of which the apartment portfolio increased by $11.4 million, the commercial portfolio increased by $3.9 million and the land portfolio decreased $1.1 million with the remaining $0.9 million decrease in our other portfolios.
Depreciation expense was $29.1 million for the twelve months ended December 31, 2009. The depreciation expense for 2009, as compared to the same period in 2008, increased by $4.7 million of which the apartment portfolio increased by $3.4 million with the remainder due to the commercial portfolio.
The provision on impairment of notes receivable, investment in real estate partnerships, and real estate assets was $42.5 million for the twelve months ended December 31, 2009. The provision on impairment of notes receivable, investment in real estate partnerships, and real estate assets for 2009, as compared to the same period in 2008, increased by $35.1 million.
Interest income was $5.4 million for the twelve months ended December 31, 2009. The interest income recorded for 2009, as compared to the same period in 2008, increased by $2.2 million due to the receipt of interest payments due on our Unified Housing surplus cash flow notes. Interest is recognized when interest payments are received.
Mortgage and loan interest was $70.2 million for the twelve months ended December 31, 2009. The mortgage and loan interest for 2009, as compared to the same period in 2008, decreased by $2.9 million which is due to an increase in the apartments of $1.8 million, a decrease in the commercial portfolio of $1.5 million, an increase in the land portfolio of $0.7 million and a decrease in the other portfolios of $3.9 million.
Gain on the sale of land was $6.3 million for the twelve months ended December 31, 2009. The gain on the sale of land for 2009, as compared to the same period in 2008, increased by $1.5 million due to an increase in land sales.
Income from discontinued operations was $2.2 million for the year ended 2009 as compared to the $62.4 million for the same period ended 2008. Included in discontinued operations are a total of seven and 25 income-producing properties as of 2009 and 2008, respectively.
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, hotels, shopping centers and developed and undeveloped land. We invest in real estate through direct equity ownership and partnerships nationwide. For more information, visit the Company’s web site atwww.transconrealty-invest.com.
TRANSCONTINENTAL REALTY INVESTORS, INC .
CONSOLIDATED STATEMENTS OF OPERATIONS
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Years Ended December 31, | |||||||||||
2009 | 2008 | ||||||||||
(dollars in thousands, except share | |||||||||||
and per share amounts) | |||||||||||
Revenues: | |||||||||||
Rental and other property revenues | $ | 151,647 | $ | 138,337 | |||||||
Expenses: | |||||||||||
Properly operating expenses | 85,087 | 86,237 | |||||||||
Depreciation and amortization | 29,098 | 24,377 | |||||||||
General and administrative | 11,063 | 10,349 | |||||||||
Provision on impairment of notes receivable and real estate assets | 42,513 | 7,417 | |||||||||
Advisory fee to affiliate | 11,903 | 12,064 | |||||||||
Total operating expenses | 179,664 | 140,444 | |||||||||
Operating income (loss) | (28,017 | ) | (2,107 | ) | |||||||
Other income (expense): | |||||||||||
Interest income | 5,407 | 3,227 | |||||||||
Other income | 3,631 | 3,918 | |||||||||
Mortgage and loan interest | (70,157 | ) | (73,053 | ) | |||||||
Earnings from unconsolidated subsidiaries and investees | (451 | ) | (1,096 | ) | |||||||
Involuntary conversion | — | — | |||||||||
Litigation Settlement | 356 | — | |||||||||
Total other expenses | (61,214 | ) | (67,004 | ) | |||||||
Loss before gain on land sales, non-controlling interest, and tax | (89,231 | ) | (69,111 | ) | |||||||
Gain on land sales | 6,296 | 4,798 | |||||||||
Loss from continuing operations before lax | (82,935 | ) | (64,313 | ) | |||||||
Income lax benefit (expense) | 1,180 | 33,441 | |||||||||
Net income (loss) from continuing operations | (81,755 | ) | (30,872 | ) | |||||||
Discontinued operations: | |||||||||||
Loss from discontinued operations | (162 | ) | (8,368 | ) | |||||||
Gain on sale of real estate from discontinued operations | 3,524 | 104,411 | |||||||||
Income tax expense from discontinued operations | (1,180 | ) | (33,616 | ) | |||||||
Net income (loss) | (79,573 | ) | 31,555 | ||||||||
Net income (loss) attributable to non-controlling interest | (125 | ) | 654 | ||||||||
Net income (loss) attributable to Transcontinental Realty Investors, Inc. | (79,698 | ) | 32,209 | ||||||||
Preferred dividend requirement | (1,023 | ) | (975 | ) | |||||||
Net income (loss) applicable to common shares | $ | (80,721 | ) | $ | 31,234 | ||||||
Earnings per share — basic | |||||||||||
Gain (loss) from continuing operations | $ | (10.22 | ) | $ | (3.86 | ) | |||||
Discontinued operations | 0.27 | 7.72 | |||||||||
Net income (loss) applicable to common shares | $ | (9.95 | ) | $ | 3.86 | ||||||
Earnings per share — diluted | |||||||||||
Gain (loss) from continuing operations | $ | (10.22 | ) | $ | (3.86 | ) | |||||
Discontinued operations | 0.27 | 7.72 | |||||||||
Net income (loss) applicable to common shares | $ | (9.95 | ) | $ | 3.86 | ||||||
Weighted average common share used in computing earnings per share | 8,113,669 | 8,086,640 | |||||||||
Weighted average common share used in computing diluted earnings per shore | 8,113,669 | 8,086,640 | |||||||||
Amounts attributable to Transcontinental Really Investors, Inc. | |||||||||||
Income (loss) from continuing operations | $ | (81,755 | ) | $ | (30,872 | ) | |||||
Income from discontinued operations | 2,182 | 62,427 | |||||||||
Net income (loss) | $ | (79,573 | ) | $ | 31,555 | ||||||
TRANSCONTINENTAL REALTY INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS
December 31, | December 31, | |||||||
2009 | 2008 | |||||||
(dollars in thousands, except share and | ||||||||
par value amounts) | ||||||||
Assets | ||||||||
Real estate, at cost | $ | 1,520,043 | $ | 1,526,016 | ||||
Real estate held for sale at cost, net of depreciation | 5,147 | 8,018 | ||||||
Real estate subject to sales contracts at cost, net of depreciation | 59,048 | 60,807 | ||||||
Less accumulated depreciation | (137,054 | ) | (114,050 | ) | ||||
Total real estate | 1,447,184 | 1,480,791 | ||||||
Notes and interest receivable | ||||||||
Performing | 48,051 | 42,413 | ||||||
Less allowance for estimated losses | (2,804 | ) | (3,293 | ) | ||||
Total notes and interest receivable | 45,247 | 39,120 | ||||||
Cash and cash equivalents | 5,665 | 5,983 | ||||||
Investments in securities | 2,775 | |||||||
Investments in unconsolidated subsidiaries and investees | 9,358 | 23,365 | ||||||
Other assets | 100,833 | 88,033 | ||||||
Total assets | $ | 1,608,287 | $ | 1,640,067 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Liabilities: | ||||||||
Notes and interest payable | $ | 1,121,737 | $ | 1,100,852 | ||||
Notes related to assets held-for-sale | 5,002 | 4,191 | ||||||
Notes related to subject to sales contracts | 61,886 | 62,972 | ||||||
Affiliate payables | 50,163 | 62,367 | ||||||
Accounts payable and other liabilities | 124,083 | 84,989 | ||||||
1,362,871 | 1,315,371 | |||||||
Commitments and contingencies: | ||||||||
Shareholders’ equity: | ||||||||
Preferred Stock, Series C: $.01 par value, authorized 10,000,000 shares, issued and outstanding 30,000 shares in 2009 and 2008 respectively (liquidation preference $100 per share). Series D: $.01 par value, authorized, issued and outstanding 100,000 shares in 2009 and 2008 respectively | 1 | 1 | ||||||
Common Stock, $.01 par value, authorized 10,000,000 shares; issued and outstanding 8,113,669 for 2009 and 2008 | 81 | 81 | ||||||
Paid-in capital | 262,118 | 263,290 | ||||||
Retained earnings | (34,718 | ) | 44,980 | |||||
Accumulated other comprehensive income | — | 2,575 | ||||||
Total Transcontinental Realty Investors, Inc. shareholders’ equity | 227,482 | 310,927 | ||||||
Non-controlling interest | 17,934 | 13,769 | ||||||
Total equity | 245,416 | 324,696 | ||||||
Total liabilities and equity | $ | 1,608,287 | $ | 1,640,067 | ||||