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Published: 2023-11-09 13:10:38 ET
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EX-99.1 2 arl20230930ex991earnings.htm EX-99.1 Document


NEWS RELEASEContact:
American Realty Investors, Inc. Investor Relations
FOR IMMEDIATE RELEASE
Erik Johnson (469) 522-4200 investor.relations@americanrealtyinvest.com


American Realty Investors, Inc. reports Earnings for Q3 2023

DALLAS (November 9, 2023) -- American Realty Investors, Inc. (NYSE:ARL) is reporting its results of operations for the three months ended September 30, 2023. For the three months ended September 30, 2023, we reported net income attributable to common shares of $3.0 million or $0.18 per diluted share, compared to net income attributable to common shares of $302.3 million or $18.72 per diluted share for the same period in 2022.

Financial Highlights

•Total occupancy was 79% at September 30, 2023, which includes 96% at our multifamily properties and 49% at our commercial properties.
•On August 28, 2023, we paid off the $1.2 million loan on Athens.
•On November 6, 2023, we obtained a $25.4 million construction loan to build a 216 unit multifamily property in McKinney, Texas.

Financial Results

Rental revenues increased $4.3 million from $7.6 million for the three months ended September 30, 2022 to $11.8 million for the three months ended September 30, 2023. The increase in rental revenue is primarily due to $5.0 million increase at our multifamily properties offset in part by a decrease of $0.8 million from the commercial properties. The increase in revenue from the multifamily properties is primarily due to the acquisition of the VAA Holdback Portfolio in 2022.

Net operating loss decreased $1.1 million from $3.2 million for three months ended September 30, 2022 to $2.1 million for the three months ended September 30, 2023. The decrease in net operating loss is primarily due to a decrease in legal costs.

Net income attributable to common shares decreased $299.3 million from $302.3 million for the three months ended September 30, 2022 to $3.0 million for the three months ended September 30, 2023. The decrease in net income is primarily attributed to our share of the gain from the sale of the VAA Sale Portfolio, net of income tax effect in 2022.
About American Realty Investors, Inc.
American 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, shopping centers, and developed and undeveloped land. The Company invests in real estate through direct ownership, leases and partnerships and invests in mortgage loans on real estate. The Company also holds mortgage receivables. The Company’s primary asset and source of its operating results is its investment in Transcontinental Realty Investors, Inc. (NYSE:TCI). For more information, visit the Company’s website at www.americanrealtyinvest.com.


AMERICAN REALTY INVESTORS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Revenues:
Rental revenues$11,838 $7,570 $34,236 $22,310 
Other income688 749 2,217 1,925 
   Total revenue12,526 8,319 36,453 24,235 
Expenses:
Property operating expenses7,443 4,701 20,580 12,541 
Depreciation and amortization3,313 2,193 9,615 6,840 
General and administrative1,579 3,042 8,424 7,956 
Advisory fee to related party2,295 1,571 6,883 7,614 
   Total operating expenses14,630 11,507 45,502 34,951 
   Net operating loss(2,104)(3,188)(9,049)(10,716)
Interest income9,008 7,035 25,201 19,937 
Interest expense(1,954)(4,044)(7,574)(13,301)
Gain on foreign currency transactions— 1,533 993 19,437 
Loss on early extinguishment of debt— (1,166)(1,710)(2,805)
Equity in income from unconsolidated joint ventures234 464,143 2,946 471,385 
(Loss) gain on sale or write-down of assets, net(32)1,539 156 16,580 
Income tax provision(1,127)(81,548)(2,416)(81,616)
Net income4,025 384,304 8,547 418,901 
Net income attributable to noncontrolling interest(1,037)(82,015)(2,456)(88,986)
Net income attributable to common shares$2,988 $302,289 $6,091 $329,915 
Earnings per share - basic
Basic and diluted$0.18 $18.72 $0.38 $20.43 
Weighted average common shares used in computing earnings per share
Basic and diluted16,152,043 16,152,043 16,152,043 16,152,043