Transcontinental Realty Investors, Inc. reports Earnings for Quarter Ended March 31, 2026
Transcontinental Realty Investors, Inc. reports Earnings for Quarter Ended March 31, 2026
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net operating lossfinancial
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.
gain on salefinancial
Gain on sale is the profit a company records when it sells an asset—like property, equipment, or an investment—for more than the value it had on the books. Think of it as selling a used car for more than you paid or than you listed it as worth; the extra cash shows up as a one-time boost to the company’s reported income, which can raise short-term earnings and cash but may not indicate ongoing business strength.
condemnationregulatory
Condemnation is a legal process in which a government or authorized body forces the sale or takeover of private property for public use, typically with payment of compensation, similar to a city taking part of a homeowner’s yard to build a road. For investors, condemnation can change the value or future earnings of real estate, operating facilities or projects, trigger one-time compensation payments, disrupt business operations, or create legal and timing uncertainty that affects a company’s cash flow and stock 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 March 31, 2026. For the three months ended March 31, 2026, we reported net income attributable to common shares of $0.2 million or $0.02 per share, compared to $4.6 million or $0.53 per share for the same period in 2025.
Financial Highlights
Total occupancy for stabilized properties was 81% at March 31, 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 March 31, 2026 was 47%, 44% and 42%, respectively.
During the three months ended March 31, 2026, we sold 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 $0.3 million from $12.0 million for the three months ended March 31, 2025 to $12.3 million for the three months ended March 31, 2026. The increase in revenue is primarily due to an increase of $0.7 million from our commercial properties offset in part by a $0.3 million from our multifamily properties. The increase in revenue from our commercial properties is primarily due to an increase in occupancy at Stanford Center.
Net operating loss increased approximately $1.3 million from $0.6 million for the three months ended March 31, 2025 to $2.0 million for the three months ended March 31, 2026. Our increase in net operating loss was primarily due to a $1.4 million increase in operating expenses from the lease-up properties for the three months ended March 31, 2026.
Net income attributable to the Company decreased approximately $4.5 million from $4.6 million for the three months ended March 31, 2025 to $0.2 million for the three months ended March 31, 2026. The decrease in net income is primarily attributed to a decrease of $3.5 million from gain on sale or write down of assets, $1.4 million in interest income, net and $1.3 million in net operating loss offset in part by a $1.8 million decrease in tax provision. The decrease in gain on sale of real estate transactions is attributed to the condemnation of a parcel of land at Windmill Farms in 2025.
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.
TRANSCONTINENTAL REALTY INVESTORS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended March 31,
2026
2025
Revenues:
Rental revenues
$
11,656
$
11,427
Other income
685
581
Total revenue
12,341
12,008
Expenses:
Property operating expenses
7,333
5,977
Depreciation and amortization
3,630
2,883
General and administrative
1,327
1,352
Advisory fee to related party
2,013
2,431
Total operating expenses
14,303
12,643
Net operating loss
(1,962
)
(635
)
Interest income
4,404
4,628
Interest expense
(2,934
)
(1,781
)
Gain on sale or write down of assets, net
385
3,891
Income tax provision
431
(1,322
)
Net income
324
4,781
Net income attributable to noncontrolling interest
(156
)
(163
)
Net income attributable to the Company
$
168
$
4,618
Earnings per share
Basic and diluted
$
0.02
$
0.53
Weighted average common shares used in computing earnings per share
