| | | For the Three Months Ended | |
| | | March 31, | |
| | | 2017 | | | 2016 | |
| | | (dollars in thousands, except share and par value amounts) | |
| Revenues: | | | | | | |
| Rental and other property revenues (including $190 and $173 for the three months ended 2017 and 2016, respectively, from related parties) | | $ | 31,535 | | | $ | 28,903 | |
| | | | | | | | | |
| Expenses: | | | | | | | | |
| Property operating expenses (including $228 and $201 for the three months ended 2017 and 2016, respectively, from related parties) | | | 15,889 | | | | 14,963 | |
| Depreciation and amortization | | | 6,303 | | | | 5,808 | |
| General and administrative (including $732 and $749 for the three months ended 2017 and 2016, respectively, from related parties) | | | 1,780 | | | | 1,609 | |
| Net income fee to related party | | | 60 | | | | 72 | |
| Advisory fee to related party | | | 2,305 | | | | 2,371 | |
| Total operating expenses | | | 26,337 | | | | 24,823 | |
| Net operating income | | | 5,198 | | | | 4,080 | |
| | | | | | | | | |
| Other income (expenses): | | | | | | | | |
| Interest income (including $3,169 and $3,150 for the three months ended 2017 and 2016, respectively, from related parties) | | | 3,421 | | | | 3,847 | |
| Other income (expense) | | | 1,442 | | | | 267 | |
| Mortgage and loan interest (including $151 and $61 for the three months ended 2017 and 2016, respectively, from related parties) | | | (15,190 | ) | | | (13,166 | ) |
| Foreign currency translation loss | | | (323 | ) | | | — | |
| Earnings (losses) from unconsolidated joint ventures and investees | | | (8) | | | | (2 | ) |
| Total other expenses | | | (10,658 | ) | | | (9,054 | ) |
| Loss before gain on land sales, non-controlling interest, and taxes | | | (5,460 | ) | | | (4,974 | ) |
| Loss on sale of income producing properties | | | — | | | | (244 | ) |
| Gain on land sales | | | 445 | | | | 1,652 | |
| Net loss from continuing operations before taxes | | | (5,015 | ) | | | (3,566 | ) |
| Income tax benefit | | | — | | | | 1 | |
| Net loss from continuing operations | | | (5,015 | ) | | | (3,565 | ) |
| Discontinued operations: | | | | | | | | |
| Net income (loss) from discontinued operations | | | — | | | | 3 | |
| Income tax benefit (expense) from discontinued operations | | | — | | | | (1 | ) |
| Net income (loss) from discontinued operations | | | — | | | | 2 | |
| Net loss | | | (5,015 | ) | | | (3,563 | ) |
| Net income (loss) attributable to non-controlling interest | | | (119 | ) | | | 23 | |
| Net loss attributable to Transcontinental Realty Investors, Inc. | | | (5,134 | ) | | | (3,540 | ) |
| Preferred dividend requirement | | | (222 | ) | | | (222 | ) |
| Net loss applicable to common shares | | $ | (5,356 | ) | | $ | (3,762 | ) |
| | | | | | | | | |
| Earnings per share - basic | | | | | | | | |
| Net loss from continuing operations | | $ | (0.61 | ) | | $ | (0.43 | ) |
| | | | | | | | | |
| Earnings per share - diluted | | | | | | | | |
| Net loss from continuing operations | | $ | (0.61 | ) | | $ | (0.43 | ) |
| | | | | | | | | |
| Weighted average common shares used in computing earnings per share | | | 8,717,767 | | | | 8,717,767 | |
| Weighted average common shares used in computing diluted earnings per share | | | 8,717,767 | | | | 8,717,767 | |
| | | | | | | | | |
| Amounts attributable to Transcontinental Realty Investors, Inc. | | | | | | | | |
| Net loss from continuing operations | | $ | (5,134 | ) | | $ | (3,542 | ) |
| Net income from discontinued operations | | | — | | | | 2 | |
| Net loss from continuing operations | | $ | (5,134 | ) | | $ | (3,540 | ) |
| | | March 31,
2017 | | | December 31,
2016 | |
| | | (dollars in thousands, except share
and par value amounts) | |
| Assets | | | | | | |
| Real estate, at cost | | $ | 1,015,791 | | | $ | 998,498 | |
| Real estate subject to sales contracts at cost | | | 46,360 | | | | 46,956 | |
| Less accumulated depreciation | | | (160,269 | ) | | | (154,281 | ) |
| Total real estate | | | 901,882 | | | | 891,173 | |
| Notes and interest receivable: | | | | | | | | |
| Performing (including $65,289 in 2017 and $67,912 in 2016 from related parties) | | | 78,681 | | | | 81,133 | |
| Less allowance for doubtful accounts (including $1,825 in 2017 and 2016 from related parties) | | | (1,825 | ) | | | (1,825 | ) |
| Total notes and interest receivable | | | 76,856 | | | | 79,308 | |
| Cash and cash equivalents | | | 55,282 | | | | 17,506 | |
| Restricted cash | | | 31,045 | | | | 38,227 | |
| Investments in unconsolidated joint ventures and investees | | | 2,438 | | | | 2,446 | |
| Receivable from related party | | | 99,714 | | | | 101,649 | |
| Other assets | | | 60,498 | | | | 55,605 | |
| Total assets | | $ | 1,227,715 | | | $ | 1,185,914 | |
| | | | | | | | | |
| Liabilities and Shareholders’ Equity | | | | | | | | |
| Liabilities: | | | | | | | | |
| Notes and interest payable | | $ | 822,922 | | | $ | 835,528 | |
| Notes related to real estate held for sale | | | 376 | | | | 376 | |
| Notes related to real estate subject to sales contracts | | | 4,177 | | | | 5,612 | |
| Bond and bond interest payable | | | 71,975 | | | | — | |
| Deferred revenue (including $50,699 in 2017 and $50,689 in 2016 to related parties) | | | 71,075 | | | | 71,065 | |
| Accounts payable and other liabilities (including $6,647 in 2017 and $6,487 in 2016 to related parties) | | | 37,950 | | | | 48,856 | |
| Total liabilities | | | 1,008,475 | | | | 961,437 | |
| | | | | | | | | |
| Shareholders’ equity: | | | | | | | | |
| Preferred stock, Series C: $0.01 par value, authorized 10,000,000 shares; issued and outstanding zero shares in 2017 and 2016. Series D: $0.01 par value, authorized, issued and outstanding 100,000 shares in 2017 and 2016 (liquidation preference $100 per share) | | | 1 | | | | 1 | |
| Common stock, $0.01 par value, authorized 10,000,000 shares; issued 8,717,967 shares in 2017 and 2016; outstanding 8,717,767 shares in 2017 and 2016 | | | 87 | | | | 87 | |
| Treasury stock at cost, 200 shares in 2017 and 2016 | | | (2 | ) | | | (2 | ) |
| Paid-in capital | | | 269,627 | | | | 269,849 | |
| Retained earnings | | | (69,184 | ) | | | (64,050 | ) |
| Total Transcontinental Realty Investors, Inc. shareholders’ equity | | | 200,529 | | | | 205,885 | |
| Non-controlling interest | | | 18,711 | | | | 18,592 | |
| Total shareholders’ equity | | | 219,240 | | | | 224,477 | |
| Total liabilities and shareholders’ equity | | $ | 1,227,715 | | | $ | 1,185,914 | |
