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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
November 1, 1994
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Date of Report (Date of Earliest Event Reported)
TRANSCONTINENTAL REALTY INVESTORS, INC.
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(Exact Name of Registrant as Specified in its Charter)
Nevada 0-13291 94-6565852
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(State of Incorporation) (Commission (IRS Employer
File No.) Identification No.)
10670 North Central Expressway, Suite 300, Dallas, TX 75231
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(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (214) 692-4700
Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
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ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
On November 1, 1994, Transcontinental Realty Investors, Inc. ("the Company")
purchased the Summerfield Apartments, a 224 unit apartment complex in Orlando,
Florida for $5.6 million, exclusive of commissions and closing costs. The
Company paid $800,000 in cash and assumed a first mortgage in the amount of
$4.8 million. The mortgage bears interest at a variable rate and requires
monthly payments of principal and interest of $43,240. The mortgage matures in
March 2024. The $5.6 million purchase price of the Summerfield Apartments is
approximately 3.0% of the Company's consolidated assets at December 31, 1993.
Although not a significant acquisition in itself, when aggregated with the
other acquisitions completed by the Company in 1994, as described below, such
acquisitions constitute a significant acquisition.
In addition to the Summerfield Apartments acquisition discussed above, the
Company has purchased three industrial properties and two office buildings in
1994. The three industrial properties and one of the office buildings are
located in Virginia, and the other office building is located in Dallas, Texas.
The properties were purchased for a total of $21.7 million and represent
approximately 9.4% of the Company's consolidated assets at December 31, 1993.
The Company paid a total of $3.7 million in cash and financed the remainder of
the purchase prices. The mortgages secured by the properties bear interest at
rates ranging from 6.0% to 10.0% per annum and mature in 1999 and 2006. Two of
these acquisitions occurred prior to September 30, 1994 and are accordingly
reflected in the September 30, 1994 "actual balance sheet" of the Company, as
presented.
In 1994, the Company has also sold one apartment complex, one office building,
its general partnership interest in two partnerships and its limited partner
interest in one partnership. In connection with the sales, the Company
received cash totaling $1.6 million and provided an additional $100,000 in
purchase money financing. These sales all occurred prior to September 30, 1994
and are accordingly reflected in the Company's "actual balance sheet" as of
September 30, 1994, as presented.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(a) Pro forma financial information:
Pro forma statements of operations are presented for the year ended December
31, 1993 and the nine months ended September 30, 1994. The pro forma
statements of operations present the Company's operations as if the
transactions described above had occurred at the beginning of each of the
periods presented. A pro forma balance sheet as of September 30, 1994 is also
presented. The pro forma balance sheet presents the purchase transactions,
described above, as if they had occurred on September 30, 1994.
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TRANSCONTINENTAL REALTY INVESTORS, INC.
PRO FORMA
CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 1994
Other
Property
Actual Summerfield(1) Acquisitions(2) Proforma
--------------- -------------- --------------- --------------
(dollars in thousands)
Assets
------
Notes and interest receivable
Performing.................. $ 16,641 $ - $ - $ 16,641
Nonperforming, nonaccruing.. 593 - - 593
--------------- -------------- -------------- --------------
17,234 - - 17,234
Real estate held for sale, net
of depreciation............. 8,137 - - 8,137
Less - allowance for
estimated losses............ (960) - - (960)
--------------- -------------- -------------- --------------
24,411 - - 24,411
Real estate held for invest-
ment, net of accumulated
depreciation................ 183,217 5,582 9,600 198,399
Investment in partnerships.... 11,094 - - 11,094
Cash and cash equivalents..... 4,816 (771) (2,038) 2,007
Other assets.................. 6,194 - (136) 6,058
--------------- -------------- -------------- --------------
$ 229,732 $ 4,811 $ 7,426 $ 241,969
=============== ============== ============== ==============
Liabilities and Stockholders' Equity
- - - ------------------------------------
Liabilities
Notes and interest payable.... $ 124,082 $ 4,811 $ 7,391 $ 136,284
Other liabilities............. 10,813 - 35 10,848
--------------- -------------- -------------- --------------
134,895 4,811 7,426 147,132
Commitments and contingencies
Stockholders' equity
Common stock $.01 par value,
authorized, 10,000,000
shares; issued and out-
standing, 2,674,850 shares.. 27 - - 27
Paid-in capital............... 219,049 - - 219,049
Accumulated distributions in
excess of accumulated
earnings.................... (124,239) - - (124,239)
--------------- -------------- -------------- --------------
94,837 - - 94,837
--------------- -------------- -------------- --------------
$ 229,732 $ 4,811 $ 7,426 $ 241,969
=============== ============== ============== ==============
__________________________
(1) Assumes the November 1, 1994 acquisition of the property by the Company
occurred on September 30, 1994.
(2) Assumes that the October and November 1994 property acquisitions of the
Company occurred on September 30, 1994.
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TRANSCONTINENTAL REALTY INVESTORS, INC.
PRO FORMA
STATEMENT OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 1994
Other Property and
Property Partnership
Actual Summerfield(1) Acquisitions(1) Sales (2) Pro forma
----------- -------------- -------------- ------------ ---------
(dollars in thousands, except per share)
Income
Rentals................................ $ 26,376 $ 876 $ 2,778 $ (1,062) $ 28,968
Interest............................... 1,160 - - - 1,160
Equity in (losses) of investees........ (77) - - (6) (83)
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27,459 876 2,778 (1,068) 30,045
Expenses
Property operations.................... 20,317 440 1,598 (506) 21,849
Interest............................... 7.711 357 1,038 (356) 8,750
Depreciation........................... 4,472 145 334 (175) 4,776
Advisory fee to affiliate.............. 1,280 - - - 1,280
General and administrative............. 1,280 - - - 1,280
----------- ---------- -------- --------- ---------
35,060 942 2,970 (1,037) 37,935
(loss) before gain on sale of
partnership interests, gain on sale of
real estate and extraordinary gain..... (7,601) (66) (192) (31) (7,890)
Gain on sale of partnership interests.... 2,514 - - - 2,514
Gain on sale of real estate.............. 2,513 - - - 2,153
Extraordinary gain....................... 1,189 - - - 1,189
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Net (loss)............................... $ (1,745) $ (66) $ (192) $ (31) $ (2,034)
=========== ========== ======== ========= =========
Earnings per share
(Loss) before gain on sale of partner-
ship interests, gain on sale of real
estate and extraordinary gain........ $ (2.84) $ (2.95)
Gain on sale of partnership interests.. .94 .94
Gain on sale of real estate............ .80 .80
Extraordinary gain..................... .44 .44
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Net (loss)............................. $ (.66) $ (.77)
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Weighted average Common shares used in
computing earnings per share........... 2,674,850 2,674,850
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(1) Assumes acquisition by the Company on January 1, 1994.
(2) Assumes sale by the Company on January 1, 1994.
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TRANSCONTINENTAL REALTY INVESTORS, INC.
PRO FORMA
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1993
Property
Other and
Summerfield Property Partnership
Actual Acquisition(1) Acquisitions(1) Sales (2) Pro forma
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(dollars in thousands, except per share)
Income
Rentals.............................. $ 30,373 $ 1,075 $ 2,814 $ (1,911) $ 32,351
Interest............................. 1,869 - - - 1,869
Equity in (losses) of investees...... (262) - - 490 228
--------- --------- ------- ---------- ---------
31,980 1,075 2,814 (1,421) 34,448
Expenses
Property operations.................. 23,659 666 1,847 (1,315) 24,857
Interest............................. 8,662 472 1,354 (596) 9,892
Depreciation......................... 5,435 167 541 (229) 5,914
Advisory fee to affiliate............ 1,548 - - - 1,548
General and administrative........... 1,991 - - - 1,991
Provision for losses................. 873 - - - 873
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42,168 1,305 3,742 (2,140) 45,075
Income (loss) before gain on sale of
real estate and extraordinary gain... (10,188) (230) (928) 719 (10,627)
Gain on sale of real estate............ 24 - - - 24
Extraordinary gain..................... 1,594 - - - 1,594
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Net income (loss)...................... $ (8,570) $ (230) $ (928) $ 719 $ (9,009)
========= ========= ======= ========== =========
Earnings per share
Income before gain on sale of real
estate and extraordinary gain...... $ (3.79) $ (3.95)
Gain on sale of real estate.......... .01 .01
Extraordinary gain................... .59 .59
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Net income........................... $(3.19) $ (3.35)
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Weighted average shares of Common
shares used in computing earnings
per share............................ 2,688,888 2,688,888
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(1) Assumes acquisition by the Company on January 1, 1993.
(2) Assumes sale by the Company on January 1, 1993.
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ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(b) Financial statements of property acquired:
Exhibit
Number Description
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99.0 Audited Financial Statements of Summerfield Apartments
for the year ended December 31, 1993.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereto duly authorized.
TRANSCONTINENTAL REALTY INVESTORS, INC.
Date: November 14, 1994 By: /s/ Thomas A. Holland
Thomas A. Holland
Senior Vice President and
Chief Accounting Officer
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TRANSCONTINENTAL REALTY INVESTORS, INC.
EXHIBITS TO
CURRENT REPORT ON FORM 8-K
Dated November 1, 1994
Exhibit Page
Number Description Number
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99.0 Audited Financial Statements of 8
Summerfield Apartments for the year ended
December 31, 1993.
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