Transcontinental Realty Investors, Inc. (TCI) Bundle
A Brief History of Transcontinental Realty Investors, Inc.
Transcontinental Realty Investors, Inc. (TCI) has been active in the real estate sector, focusing on the acquisition, development, and management of multifamily and commercial properties. As of 2024, TCI continues its strategic growth through various development projects and financial maneuvers.
Financial Performance Overview
As of September 30, 2024, TCI reported the following financial metrics:
| Period | Net Income (in thousands) | Earnings Per Share (EPS) | Total Revenue (in thousands) |
|---|---|---|---|
| Q3 2024 | $1,910 | $0.20 | $11,607 |
| Q3 2023 | $4,762 | $0.52 | $12,525 |
| 9M 2024 | $6,363 | $0.67 | $35,279 |
| 9M 2023 | $9,353 | $0.98 | $36,452 |
Assets and Liabilities
As of September 30, 2024, TCI's total assets and liabilities were summarized as follows:
| Category | Amount (in thousands) |
|---|---|
| Total Assets | $1,056,589 |
| Total Liabilities | $204,074 |
| Total Shareholders' Equity | $832,170 |
Development Activities
TCI has been involved in several significant development projects, including:
- Alera: A 240-unit multifamily property in Lake Wales, Florida, with total expected costs of approximately $55.3 million, funded by a $33 million construction loan.
- Merano: A 216-unit multifamily property in McKinney, Texas, with total costs around $51.9 million, financed by a $25.4 million construction loan.
- Bandera Ridge: A 216-unit multifamily property in Temple, Texas, expected to cost about $49.6 million, supported by a $23.5 million construction loan.
Cash Flow Summary
For the nine months ended September 30, 2024, TCI's cash flow was as follows:
| Cash Flow Component | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $17,057 |
| Net Cash Used in Investing Activities | ($27,082) |
| Net Cash Provided by Financing Activities | $93 |
As of September 30, 2024, TCI's cash and cash equivalents totaled $39,507, with restricted cash at $29,588, resulting in total liquidity of $69,095.
Market Position and Future Outlook
With a focus on strategic development and management of real estate assets, TCI aims to enhance its market position while navigating financial challenges and opportunities in the real estate sector.
TCI's commitment to growth is reflected in its ongoing projects and financial strategies, ensuring it remains a competitive player in the real estate market.
A Who Owns Transcontinental Realty Investors, Inc. (TCI)
Ownership Structure
As of 2024, Transcontinental Realty Investors, Inc. (TCI) has a complex ownership structure primarily influenced by related parties. The significant shareholders include:
- May Realty Holdings, Inc. (MRHI) - owns approximately 90.8% of ARL, which in turn owns approximately 78% of TCI.
- Income Opportunity Realty Investors, Inc. (IOR) - TCI owns 83.2% of IOR as of September 30, 2024.
Major Shareholders
The following table summarizes the major shareholders of TCI and their respective ownership percentages:
| Shareholder | Ownership Percentage |
|---|---|
| May Realty Holdings, Inc. (MRHI) | 90.8% |
| ARL (Affiliated with MRHI) | 78% |
| Income Opportunity Realty Investors, Inc. (IOR) | 83.2% |
Financial Performance Overview
For the nine months ended September 30, 2024, TCI reported the following financial performance metrics:
- Net Income: $6,363,000
- Net Income Attributable to the Company: $5,754,000
- Earnings Per Share (EPS): $0.67
- Weighted Average Common Shares Outstanding: 8,639,316
Recent Financial Data
The following table provides a summary of the financial data for TCI for the three and nine months ended September 30, 2024, compared to the same period in 2023:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Income | $1,910,000 | $4,762,000 | $6,363,000 | $9,353,000 |
| Net Income Attributable to the Company | $1,707,000 | $4,451,000 | $5,754,000 | $8,498,000 |
| Earnings Per Share (EPS) | $0.20 | $0.52 | $0.67 | $0.98 |
Noncontrolling Interests
The noncontrolling interest represents the third-party ownership interest in Income Opportunity Realty Investors, Inc. (IOR). As of September 30, 2024, TCI's noncontrolling interest in IOR is valued at:
- Noncontrolling Interest Amount: $20,345,000
Recent Developments
TCI has engaged in several development agreements, which impact its ownership and financial structure:
- On March 15, 2023, TCI entered into a development agreement for a 240-unit multifamily property in Florida at a total cost of approximately $55.3 million.
- On November 6, 2023, TCI entered into a development agreement for a 216-unit multifamily property in Texas at a total cost of approximately $51.9 million.
Conclusion on Ownership Dynamics
The ownership of Transcontinental Realty Investors, Inc. is heavily influenced by related parties, particularly May Realty Holdings, Inc. and its affiliates, which dominate the shareholding structure. The financial metrics indicate a decline in net income and earnings per share compared to the previous year, reflecting the challenges faced by TCI in the current market environment.
Transcontinental Realty Investors, Inc. (TCI) Mission Statement
Overview of Mission Statement
Transcontinental Realty Investors, Inc. (TCI) aims to provide exceptional real estate investment opportunities while maximizing shareholder value through strategic acquisitions, development of multifamily and commercial properties, and effective management of its assets.
Core Objectives
- To acquire and manage high-quality real estate assets.
- To enhance the value of its properties through strategic renovations and operational efficiencies.
- To deliver sustainable returns to shareholders while adhering to ethical business practices.
Financial Performance Indicators
As of September 30, 2024, TCI reported the following financial metrics:
| Metric | Value |
|---|---|
| Net Income (Q3 2024) | $1,910,000 |
| Net Income (YTD 2024) | $6,363,000 |
| Earnings Per Share (Q3 2024) | $0.20 |
| Total Revenue (Q3 2024) | $11,607,000 |
| Total Assets | $1,056,589,000 |
| Total Shareholders' Equity | $832,170,000 |
Real Estate Portfolio Overview
As of September 30, 2024, TCI's real estate assets included:
| Category | Value |
|---|---|
| Land | $104,156,000 |
| Buildings and Improvements | $374,892,000 |
| Tenant Improvements | $16,503,000 |
| Construction in Progress | $108,112,000 |
| Total Real Estate Cost | $603,663,000 |
Future Growth and Development Plans
TCI is engaged in multiple development projects, with notable investments including:
| Project Name | Location | Expected Completion | Total Cost | Construction Loan |
|---|---|---|---|---|
| Alera | Lake Wales, Florida | 2025 | $55,330,000 | $33,000,000 |
| Merano | McKinney, Texas | 2025 | $51,910,000 | $25,407,000 |
| Bandera Ridge | Temple, Texas | 2025 | $49,603,000 | $23,500,000 |
| Mountain Creek | Dallas, Texas | 2026 | $49,800,000 | $27,500,000 |
Investment Strategy
TCI's investment strategy focuses on:
- Identifying undervalued properties with potential for appreciation.
- Utilizing market analysis to guide acquisition decisions.
- Implementing sustainable practices to enhance property value and appeal.
Conclusion on Mission and Objectives
TCI remains committed to its mission of delivering superior real estate investments and maximizing returns for its shareholders through strategic management and development initiatives.
How Transcontinental Realty Investors, Inc. (TCI) Works
Company Overview
Transcontinental Realty Investors, Inc. (TCI) is engaged in the acquisition, development, and ownership of income-producing residential and commercial real estate properties. As of September 30, 2024, TCI's portfolio includes:
- Four office buildings totaling approximately 1,056,793 square feet.
- Fourteen multifamily properties comprising 2,328 units.
- Approximately 1,843 acres of developed and undeveloped land.
Financial Performance
For the three months ended September 30, 2024, TCI reported the following financial results:
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $1,910,000 | $4,762,000 |
| Revenue | $11,607,000 | $12,525,000 |
| Total Operating Expenses | $13,276,000 | $14,300,000 |
| Earnings Per Share | $0.20 | $0.52 |
For the nine months ended September 30, 2024, TCI's financial performance included:
| Financial Metrics | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Income | $6,363,000 | $9,353,000 |
| Revenue | $35,279,000 | $36,452,000 |
| Total Operating Expenses | $39,363,000 | $44,313,000 |
| Earnings Per Share | $0.67 | $0.98 |
Revenue Sources
TCI generates revenue primarily through:
- Rental income from multifamily and commercial properties.
- Sales of income-producing properties and land.
Segment Performance
TCI operates in two main segments: multifamily and commercial properties. The financial performance for each segment for Q3 2024 is summarized as follows:
| Segment | Revenue | Operating Expenses | Operating Income |
|---|---|---|---|
| Multifamily | $7,967,000 | $4,642,000 | $3,325,000 |
| Commercial | $3,107,000 | $2,347,000 | $760,000 |
Cash Flow Analysis
For the nine months ended September 30, 2024, TCI's cash flow statements revealed:
| Cash Flow Categories | 9M 2024 | 9M 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $17,057,000 | $7,846,000 |
| Net Cash Used in Investing Activities | ($27,082,000) | ($9,566,000) |
| Net Cash Provided by Financing Activities | $93,000 | ($137,260,000) |
Debt and Financing
As of September 30, 2024, TCI had the following debts:
| Debt Type | Amount | Interest Rate | Maturity Date |
|---|---|---|---|
| Construction Loan for Alera | $33,000,000 | SOFR + 3% | March 15, 2026 |
| Construction Loan for Merano | $25,407,000 | Prime + 0.25% | November 6, 2028 |
| Construction Loan for Bandera Ridge | $23,500,000 | SOFR + 3% | December 15, 2028 |
Future Rental Payments
The future rental payments payable to TCI from non-cancelable leases are summarized below:
| Year | Amount |
|---|---|
| 2024 | $11,754,000 |
| 2025 | $11,241,000 |
| 2026 | $10,810,000 |
| 2027 | $10,430,000 |
| 2028 | $8,542,000 |
| Thereafter | $13,299,000 |
Real Estate Assets
As of September 30, 2024, TCI's real estate assets included:
| Asset Type | Cost | Accumulated Depreciation | Total Real Estate |
|---|---|---|---|
| Land | $104,156,000 | - | $104,156,000 |
| Buildings and Improvements | $374,892,000 | $76,101,000 | $298,791,000 |
| Tenant Improvements | $16,503,000 | $16,503,000 | |
| Construction in Progress | $108,112,000 | - | $108,112,000 |
| Total Cost | $603,663,000 | $76,101,000 | $527,562,000 |
How Transcontinental Realty Investors, Inc. (TCI) Makes Money
Revenue Generation from Real Estate Operations
Transcontinental Realty Investors, Inc. (TCI) primarily generates revenue through leasing residential and commercial properties. As of September 30, 2024, TCI's total revenue amounted to $11,607,000 for the three months ended September 30, 2024, compared to $12,525,000 for the same period in 2023.
| Revenue Component | Three Months Ended September 30, 2024 (in $000) | Three Months Ended September 30, 2023 (in $000) | Change (in $000) |
|---|---|---|---|
| Rental Revenue | 11,074 | 11,838 | (764) |
| Other Income | 533 | 687 | (154) |
| Total Revenue | 11,607 | 12,525 | (918) |
Segment Performance
TCI operates in two primary segments: multifamily and commercial properties. Revenue from the multifamily segment for the three months ended September 30, 2024, was $7,967,000, while the commercial segment generated $3,107,000 during the same period.
| Segment | Revenue (Q3 2024 in $000) | Revenue (Q3 2023 in $000) | Change (in $000) |
|---|---|---|---|
| Multifamily | 7,967 | 7,899 | 68 |
| Commercial | 3,107 | 3,939 | (832) |
| Total Segment Revenue | 11,074 | 11,838 | (764) |
Operating Expenses
Operating expenses for TCI totaled $13,276,000 for the three months ended September 30, 2024, down from $14,300,000 in the prior year. This reduction in operating expenses reflects TCI's efforts to manage costs effectively.
| Expense Category | Three Months Ended September 30, 2024 (in $000) | Three Months Ended September 30, 2023 (in $000) | Change (in $000) |
|---|---|---|---|
| Property Operating Expenses | 6,989 | 7,443 | (454) |
| Depreciation and Amortization | 3,120 | 3,313 | (193) |
| General and Administrative | 1,223 | 1,432 | (209) |
| Advisory Fees | 1,944 | 2,112 | (168) |
| Total Operating Expenses | 13,276 | 14,300 | (1,024) |
Net Income and Earnings
For the three months ended September 30, 2024, TCI reported a net income of $1,910,000, a significant decrease from $4,762,000 in the prior year. This decline is attributed to reduced revenues and increased operating costs.
| Financial Metric | Three Months Ended September 30, 2024 (in $000) | Three Months Ended September 30, 2023 (in $000) | Change (in $000) |
|---|---|---|---|
| Net Income | 1,910 | 4,762 | (2,852) |
| Net Income Attributable to Shareholders | 1,707 | 4,451 | (2,744) |
| Earnings Per Share (EPS) | $0.20 | $0.52 | $(0.32) |
Future Rental Payments and Lease Agreements
TCI has secured future rental payments from non-cancelable leases amounting to $66,076,000, ensuring a steady revenue stream over the coming years.
| Year | Future Rental Payments (in $000) |
|---|---|
| 2024 | 11,754 |
| 2025 | 11,241 |
| 2026 | 10,810 |
| 2027 | 10,430 |
| 2028 | 8,542 |
| Thereafter | 13,299 |
| Total | 66,076 |
Cash Flow Analysis
Net cash provided by operating activities for the nine months ended September 30, 2024, was $17,057,000, significantly higher than $7,846,000 for the same period in 2023, indicating improved operational efficiency.
| Cash Flow Category | Nine Months Ended September 30, 2024 (in $000) | Nine Months Ended September 30, 2023 (in $000) | Change (in $000) |
|---|---|---|---|
| Net Cash Provided by Operating Activities | 17,057 | 7,846 | 9,211 |
| Net Cash Used in Investing Activities | (27,082) | (9,566) | (17,516) |
| Net Cash Provided by Financing Activities | 93 | (137,260) | 137,353 |
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Resources:
- Transcontinental Realty Investors, Inc. (TCI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Transcontinental Realty Investors, Inc. (TCI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Transcontinental Realty Investors, Inc. (TCI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.