TRANSCONTINENTAL REALTY INVESTORS, INC. |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(unaudited) |
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 | ) |
TRANSCONTINENTAL REALTY INVESTORS, INC. |
CONSOLIDATED BALANCE SHEETS |
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 |