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TRANSCONTINENTAL REALTY INVESTORS, INC. | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(unaudited) | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(dollars in thousands, except per share amounts) | ||||||||||||||||
Revenues: | ||||||||||||||||
Rental and other property revenues (including $211 and $175 for the three months and $591 and $526 for the nine months ended 2015 and 2014, respectively, from related parties) | $ | 27,539 | $ | 18,466 | $ | 73,599 | $ | 55,281 | ||||||||
Expenses: | ||||||||||||||||
Property operating expenses (including $192 and $162 for the three months and $522 and $481 for the nine months ended 2015 and 2014, respectively, from related parties) | 14,195 | 10,077 | 35,987 | 28,640 | ||||||||||||
Depreciation and amortization | 6,555 | 4,415 | 16,305 | 12,967 | ||||||||||||
General and administrative (including $489 and $714 for the three months and $2,036 and $2,114 for the nine months ended 2015 and 2014, respectively, from related parties) | 1,146 | 1,131 | 4,191 | 5,417 | ||||||||||||
Net income fee to related party | 51 | (186 | ) | 142 | 514 | |||||||||||
Advisory fee to related party | 2,666 | 1,826 | 6,561 | 5,490 | ||||||||||||
Total operating expenses | 24,613 | 17,263 | 63,186 | 53,028 | ||||||||||||
Net operating income | 2,926 | 1,203 | 10,413 | 2,253 | ||||||||||||
Other income (expenses): | ||||||||||||||||
Interest income (including $2,503 and $2,718 for the three months and $8,861 and $8,835 for the nine months ended 2015 and 2014, respectively, from related parties) | 2,505 | 3,064 | 9,260 | 9,181 | ||||||||||||
Other income (expense) | (77 | ) | 344 | 4 | 741 | |||||||||||
Mortgage and loan interest (including $0 and $0 for the three months and $31 and $31 for the six months ended 2015 and 2014, respectively, from related parties) | (12,006 | ) | (8,043 | ) | (29,703 | ) | (23,329 | ) | ||||||||
Loan charges and prepayment penalties | (1,544 | ) | (1,044 | ) | (2,250 | ) | (2,626 | ) | ||||||||
Earnings (losses) from unconsolidated joint ventures and investees | (4 | ) | 10 | 39 | (5 | ) | ||||||||||
Litigation settlement (expense) | (85 | ) | (86 | ) | (203 | ) | 3,666 | |||||||||
Total other expenses | (11,211 | ) | (5,755 | ) | (22,853 | ) | (12,372 | ) | ||||||||
Loss before gain on land sales, non-controlling interest, and taxes | (8,285 | ) | (4,552 | ) | (12,440 | ) | (10,119 | ) | ||||||||
Gain on sale of income producing properties | 735 | - | 735 | - | ||||||||||||
Gain on land sales | 997 | 40 | 5,124 | 634 | ||||||||||||
Net income (loss) from continuing operations before taxes | (6,553 | ) | (4,512 | ) | (6,581 | ) | (9,485 | ) | ||||||||
Income tax benefit (expense) | 16 | 786 | 107 | 5,030 | ||||||||||||
Net income (loss) from continuing operations | (6,537 | ) | (3,726 | ) | (6,474 | ) | (4,455 | ) | ||||||||
Discontinued operations: | ||||||||||||||||
Net income (loss) from discontinued operations | 47 | 477 | 306 | (454 | ) | |||||||||||
Gain on sale of real estate from discontinued operations | - | 1,770 | - | 14,826 | ||||||||||||
Income tax benefit (expense) from discontinued operations | (16 | ) | (786 | ) | (107 | ) | (5,030 | ) | ||||||||
Net income (loss) from discontinued operations | 31 | 1,461 | 199 | 9,342 | ||||||||||||
Net income (loss) | (6,506 | ) | (2,265 | ) | (6,275 | ) | 4,887 | |||||||||
Net income (loss) attributable to non-controlling interest | (95 | ) | (81 | ) | (82 | ) | (292 | ) | ||||||||
Net income attributable to Transcontinental Realty Investors, Inc. | (6,601 | ) | (2,346 | ) | (6,357 | ) | 4,595 | |||||||||
Preferred dividend requirement | (227 | ) | (227 | ) | (673 | ) | (778 | ) | ||||||||
Net income (loss) applicable to common shares | $ | (6,828 | ) | $ | (2,573 | ) | $ | (7,030 | ) | $ | 3,817 | |||||
Earnings per share - basic | ||||||||||||||||
Net income (loss) from continuing operations | $ | (0.79 | ) | $ | (0.46 | ) | $ | (0.83 | ) | $ | (0.65 | ) | ||||
Net income from discontinued operations | - | 0.17 | 0.02 | 1.10 | ||||||||||||
Net income (loss) applicable to common shares | $ | (0.79 | ) | $ | (0.29 | ) | $ | (0.81 | ) | $ | 0.45 | |||||
Earnings per share - diluted | ||||||||||||||||
Net income (loss) from continuing operations | $ | (0.79 | ) | $ | (0.46 | ) | $ | (0.83 | ) | $ | (0.65 | ) | ||||
Net income from discontinued operations | - | 0.17 | 0.02 | 1.10 | ||||||||||||
Net income (loss) applicable to common shares | $ | (0.79 | ) | $ | (0.29 | ) | $ | (0.81 | ) | $ | 0.45 | |||||
Weighted average common shares used in computing earnings per share | 8,717,767 | 8,688,018 | 8,717,767 | 8,505,991 | ||||||||||||
Weighted average common shares used in computing diluted earnings per share | 8,717,767 | 8,688,018 | 8,717,767 | 8,505,991 | ||||||||||||
Amounts attributable to Transcontinental Realty Investors, Inc. | ||||||||||||||||
Net income (loss) from continuing operations | $ | (6,632 | ) | $ | (3,807 | ) | $ | (6,556 | ) | $ | (4,747 | ) | ||||
Net income from discontinued operations | 31 | 1,461 | 199 | 9,342 | ||||||||||||
Net income | $ | (6,601 | ) | $ | (2,346 | ) | $ | (6,357 | ) | $ | 4,595 |
TRANSCONTINENTAL REALTY INVESTORS, INC. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(unaudited) | ||||||||
September 30, | December 31, | |||||||
2015 | 2014 | |||||||
(dollars in thousands, except share and par value amounts) | ||||||||
Assets | ||||||||
Real estate, at cost | $ | 939,024 | $ | 781,794 | ||||
Real estate subject to sales contracts at cost, net of depreciation ($194 for 2015 and $4,278 for 2014) | 10,583 | 20,395 | ||||||
Less accumulated depreciation | (133,888 | ) | (113,068 | ) | ||||
Total real estate | 815,719 | 689,121 | ||||||
Notes and interest receivable: | ||||||||
Performing (including $60,443 in 2015 and $77,853 in 2014 from related parties) | 67,626 | 84,863 | ||||||
Non-performing | - | 584 | ||||||
Less allowance for doubtful accounts (including $1,825 in 2015 and 2014 from related parties) | (1,825 | ) | (1,990 | ) | ||||
Total notes and interest receivable | 65,801 | 83,457 | ||||||
Cash and cash equivalents | 11,958 | 12,201 | ||||||
Restricted cash | 42,163 | 48,238 | ||||||
Investments in unconsolidated joint ventures and investees | 2,178 | 1,543 | ||||||
Receivable from related party | 101,031 | 58,404 | ||||||
Other assets | 37,727 | 37,441 | ||||||
Total assets | $ | 1,076,577 | $ | 930,405 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Liabilities: | ||||||||
Notes and interest payable | $ | 754,604 | $ | 588,749 | ||||
Notes related to real estate held for sale | 585 | 1,552 | ||||||
Notes related to real estate subject to sales contracts | 7,765 | 18,616 | ||||||
Deferred gain (from sales to related parties) | 51,356 | 51,356 | ||||||
Accounts payable and other liabilities (including $2,872 in 2015 and $4,909 in 2014 to related parties) | 35,756 | 36,684 | ||||||
Total liabilities | 850,066 | 696,957 | ||||||
Shareholders’ equity: | ||||||||
Preferred stock, Series C: $0.01 par value, authorized 10,000,000 shares; issued and outstanding zero shares in 2015 and 2014 (liquidation preference $100 per share). Series D: $0.01 par value, authorized, issued and outstanding 100,000 shares in 2015 and 2014 (liquidation preference $100 per share) | 1 | 1 | ||||||
Common stock, $0.01 par value, authorized 10,000,000 shares; issued 8,717,967 shares in 2015 and 2014; outstanding 8,717,767 shares in 2015 and 2014 | 87 | 87 | ||||||
Treasury stock at cost, 200 shares in 2015 and 2014 | (2 | ) | (2 | ) | ||||
Paid-in capital | 270,976 | 271,649 | ||||||
Retained earnings | (62,808 | ) | (56,451 | ) | ||||
Total Transcontinental Realty Investors, Inc. shareholders' equity | 208,254 | 215,284 | ||||||
Non-controlling interest | 18,257 | 18,164 | ||||||
Total shareholders' equity | 226,511 | 233,448 | ||||||
Total liabilities and shareholders' equity | $ | 1,076,577 | $ | 930,405 |