Transcontinental Realty Investors Reports Q2 GAAP EPS of $0.02, Revenue of $12.16M

Transcontinental Realty Investors reported Q2 GAAP EPS of $0.02 and revenue of $12.16M, a 3.3% YoY increase. Total occupancy was 82% at June 30, 2025, including 94% at multifamily properties and 57% at commercial properties. The company sold 30 single-family lots from its Windmill Farms holdings for $1.4 million, resulting in a gain on sale of $1.1 million.

Transcontinental Realty Investors Inc. (TCI) reported its second-quarter (Q2) earnings on July 02, 2025, showing a net income of $0.2 million, or $0.02 per diluted share. This represents a significant decrease from the same period last year, when the company reported $1.5 million in net income, or $0.17 per share [2].

The company's revenue for the quarter rose to $12.16 million, a 3.3% increase year-over-year (YoY) from $11.77 million in the same period last year [1]. This growth was driven by a 3% increase in rental revenues, which reached $11.5 million, compared to $11.2 million in the prior year [2].

Total occupancy at June 30, 2025, was 82%, with multifamily properties at 94% occupancy and commercial properties at 57% occupancy [2]. The company sold 30 single-family lots from its Windmill Farms holdings for $1.4 million, resulting in a gain on sale of $1.1 million [2].

The company's net operating loss decreased to $0.8 million, down from $1.1 million in the prior year, primarily due to a $0.1 million decrease in operating expenses [2]. This decrease was attributed to a reduction in the cost of insurance and property taxes.

However, the company's net income decreased due to a decrease in interest income and an increase in the income-tax provision. The net income decrease was offset in part by an increase in gain on real estate transactions [2].

The company's balance sheet shows assets growing by 5% to $1.13 billion, driven by construction in progress. Mortgage and note debt climbed 17% to $212 million, resulting in a net debt-to-total assets ratio of approximately 17.5% [3].

Cash and equivalents, along with restricted cash, fell to $34.2 million, down $6.3 million from the beginning of the year. The company's operating cash flow swung to a negative $10.3 million, driven by higher development spending and related-party receivables [3].

The company's development pipeline includes four multifamily projects, 70% funded, with construction loans adding $43 million year-to-date. The Mountain Creek facility, with a $27.5 million line of credit, remains undrawn [3].

Transcontinental Realty Investors has repaid a $10.9 million loan on 770 South Post Oak and repurchased 54,000 IOR shares for $1.0 million, increasing its IOR stake to 84.5% [3].

References:
[1] https://finance.yahoo.com/news/transcontinental-realty-q2-earnings-snapshot-223736555.html
[2] https://www.stocktitan.net/news/TCI/transcontinental-realty-investors-inc-reports-earnings-for-quarter-eb5n2d6atwmn.html
[3] https://www.stocktitan.net/sec-filings/TCI/10-q-transcontinental-realty-investors-inc-quarterly-earnings-report-fc98c1762804.html