Transcontinental Realty Investors, Inc. Reports Earnings for Quarter Ended June 30, 2026

Key Terms

net operating loss financial

A net operating loss is when a company’s deductible expenses exceed its taxable income for a period, producing an official tax loss that can be used to reduce future taxable income and lower future cash taxes. For investors it matters because these tax credits are like a savings account of losses the company can “spend” later to boost after‑tax cash flow, which can raise the value of the business—though rules can limit how and when those losses are used.

lease-up financial

Lease-up is the initial period after a building is finished or renovated when the owner rents out units or space and moves occupancy from empty to the intended level; think of it like stocking and selling items on the shelves of a new store. Investors watch the speed and rent levels achieved during lease-up because they determine how quickly rental income and cash flow start, influence financing and return estimates, and signal demand or risk for the property.

noncontrolling interest financial

The portion of a business owned by investors other than the controlling owner when one company has control of another; it represents outside shareholders’ share of the subsidiary’s assets and profits. For investors, it matters because those outside claims reduce the amount of profit and net assets attributable to the parent owner — similar to saying part of a pizza belongs to someone else — and thus affects earnings, book value and valuation.

mortgage receivables financial

Mortgage receivables are loans a lender holds that are backed by real estate and for which the lender expects to receive scheduled principal and interest payments. They appear as assets on a company's balance sheet and may include the outstanding loan balance, accrued interest, and related fees. Like a store’s unpaid customer bills tied to a valuable item, they matter to investors because their size, payment reliability and the value of the underlying property affect a lender’s cash flow, credit risk and valuation.

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DALLAS--(BUSINESS WIRE)-- Transcontinental Realty Investors, Inc. (NYSE:TCI) is reporting its results of operations for the three months ended June 30, 2026. For the three months ended June 30, 2026, we reported net loss attributable to common shares of $1.1 million or $0.13 per share, compared to net income $0.2 million or $0.02 per share for the same period in 2025.

Financial Highlights

• Total occupancy for stabilized properties was 81% at June 30, 2026, which includes 93% at our multifamily properties and 58% at our commercial properties.
• Occupancy for our Alera, Bandera Ridge and Merano (collectively, our “Development Properties”) at June 30, 2026 was 86%, 85% and 77%, respectively.
• During the three months ended June 30, 2026, we sold an additional 21 lots from our holdings in Windmill Farms for $1.0 million, resulting in a gain on sale of $0.8 million.

Financial Results

Revenues increased $0.7 million from $12.2 million for the three months ended June 30, 2025 to $12.9 million for the three months ended June 30, 2026. The increase in revenue is primarily due to an increase of $0.5 million from our multifamily properties and $0.2 million from our commercial properties. The increase in revenue from our multifamily properties is due to the lease-up of our Development Properties and the increase from our commercial properties is primarily due to an increase in occupancy at Stanford Center.

Net operating loss increased approximately $1.5 million from $0.8 million for the three months ended June 30, 2025 to $2.3 million for the three months ended June 30, 2026. Our increase in net operating loss was primarily due to a $1.6 million increase in operating expenses from the lease-up properties for the three months ended June 30, 2026.

Net (loss) income attributable to the Company changed approximately $1.3 million from net income of $0.2 million for the three months ended June 30, 2025 to a net loss of $1.1 million for the three months ended June 30, 2026. The decrease in net income is primarily attributed to a $1.5 million increase in net operating loss and a $1.9 million decrease in interest income, net offset in part by a $2.2 million decrease in tax provision.

About Transcontinental Realty Investors, Inc.

Transcontinental 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. For more information, visit the Company’s website at www.transconrealty-invest.com.

TRANSCONTINENTAL REALTY INVESTORS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
		Three Months Ended June 30,								Six Months Ended June 30,
			2026				2025				2026				2025
Revenues:
Rental revenues		$	12,236			$	11,510			$	23,892			$	22,937
Other income			630				650				1,315				1,231
Total revenue			12,866				12,160				25,207				24,168
Expenses:
Property operating expenses			8,176				6,535				15,509				12,512
Depreciation and amortization			3,697				3,062				7,327				5,945
General and administrative			1,351				1,383				2,678				2,735
Advisory fee to related party			1,986				2,005				3,999				4,436
Total operating expenses			15,210				12,985				29,513				25,628
Net operating loss			(2,344	)			(825	)			(4,306	)			(1,460	)
Interest income			3,155				3,982				7,559				8,610
Interest expense			(2,772	)			(1,738	)			(5,706	)			(3,519	)
Gain on sale or write-down of assets, net			814				947				1,199				4,838
Income tax provision			127				(2,042	)			558				(3,364	)
Net (loss) income			(1,020	)			324				(696	)			5,105
Net income attributable to noncontrolling interest			(107	)			(155	)			(263	)			(318	)
Net (loss) income attributable to the Company		$	(1,127	)		$	169			$	(959	)		$	4,787
Earnings per share
Basic and diluted		$	(0.13	)		$	0.02			$	(0.11	)		$	0.55
Weighted average common shares used in computing earnings per share
Basic and diluted			8,639,316				8,639,316				8,639,316				8,639,316

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260806638432/en/

Transcontinental Realty Investors, Inc.
Investor Relations
Erik Johnson (469) 522-4200
investor.relations@transconrealty-invest.com

Source: Transcontinental Realty Investors, Inc.