DALLAS--(BUSINESS WIRE)--August 06, 2026--
American Realty Investors, Inc. $(ARL)$ 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 $1.0 million or $0.06 per share, compared to a net income attributable to common shares of $2.8 million or $0.18 per share for the same period in 2025.
Financial Highlights
-- Total occupancy 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 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 $1.5 million from $1.0 million for the three months ended June 30, 2025 to $2.5 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 common shares changed approximately $3.8 million from net income of $2.8 million for the three months ended June 30, 2025 to a net loss of $1.0 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 $1.6 million decrease in interest income, net offset in part by a $1.3 million decrease in tax provision.
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. $(TCI)$. 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 June Six Months Ended June
30, 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 1,498 1,534 2,984 3,026
Advisory fee to
related party 2,044 2,042 4,127 4,511
---------- ---------- ---------- ----------
Total
operating
expenses 15,415 13,173 29,947 25,994
---------- ---------- ---------- ----------
Net
operating
loss (2,549) (1,013) (4,740) (1,826)
Interest income 2,810 3,353 6,634 7,363
Interest expense (2,803) (1,777) (5,771) (3,597)
Equity in income
from
unconsolidated
joint ventures 412 19 412 (140)
Gain on real
estate
transactions 814 947 1,199 4,838
Income tax
provision 71 1,335 505 189
---------- ---------- ---------- ----------
Net (loss) income (1,245) 2,864 (1,761) 6,827
Net loss (income)
attributable to
noncontrolling
interest 235 (37) 200 (1,035)
---------- ---------- ---------- ----------
Net (loss) income
attributable to
the common
shares $ (1,010) $ 2,827 $ (1,561) $ 5,792
========== ========== ========== ==========
Earnings per share
Basic and
diluted $ (0.06) $ 0.18 $ (0.10) $ 0.36
========== ========== ========== ==========
Weighted average
common shares
used in computing
earnings per
share
Basic and
diluted 16,152,043 16,152,043 16,152,043 16,152,043
========== ========== ========== ==========
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CONTACT: American Realty Investors, Inc.
Investor Relations
Erik Johnson (469) 522-4200
investor.relations@americanrealtyinvest.com