American Realty Investors, Inc. reports Earnings for Quarter Ended June 30, 2025
American Realty Investors, Inc. reports Earnings for Quarter Ended June 30, 2025
DALLAS--(BUSINESS WIRE)--American Realty Investors, Inc. (NYSE:ARL) is reporting its results of operations for the three months ended June 30, 2025. For the three months ended June 30, 2025, we reported net income attributable to common shares of $2.8 million or $0.18 per diluted share, compared to $1.2 million or $0.07 per diluted share for the same period in 2024.
Financial Highlights
- Total occupancy was 82% at June 30, 2025, which includes 94% at our multifamily properties and 57% at our commercial properties.
- During the three months ended June 30, 2025, we sold 30 single family lots from our holdings in Windmill Farms for $1.4 million, resulting in a gain on sale of $1.1 million.
- On May 30, 2025, we paid off the $10.8 million loan on 770 South Post Oak with cash on hand.
Financial Results
Rental revenues increased $0.3 million from $11.2 million for the three months ended June 30, 2024 to $11.5 million for the three months ended June 30, 2025. The increase in rental revenue is primarily due to an increase in occupancy at Stanford Center.
Net operating loss decreased $0.3 million from $1.3 million for the three months ended June 30, 2024 to $1.0 million for the three months ended June 30, 2025. Our decrease in net operating loss was due to a $0.1 million decrease in operating expenses. The decrease in operating expenses is primarily due to a decrease in the cost of insurance and property taxes for the three months ended June 30, 2025.
Net income attributable to common shares increased $1.7 million from $1.2 million for the three months ended June 30, 2024 to $2.8 million for the three months ended June 30, 2025. The increase in net income is primarily attributed to a decrease in interest income and an increase in tax provision for the three months ended June 30, 2025 offset in part by an increase in gain on real estate transactions.
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. (NYSE: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
|
Six Months Ended
|
|||||||||||||||
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
|||||
| Revenues: | ||||||||||||||||
| Rental revenues | $ |
11,510 |
|
$ |
11,188 |
|
$ |
22,937 |
|
$ |
22,467 |
|
||||
| Other income |
|
650 |
|
|
585 |
|
|
1,231 |
|
|
1,205 |
|
||||
| Total revenue |
|
12,160 |
|
|
11,773 |
|
|
24,168 |
|
|
23,672 |
|
||||
| Expenses: | ||||||||||||||||
| Property operating expenses |
|
6,535 |
|
|
6,624 |
|
|
12,512 |
|
|
13,258 |
|
||||
| Depreciation and amortization |
|
3,062 |
|
|
3,137 |
|
|
5,945 |
|
|
6,309 |
|
||||
| General and administrative |
|
1,534 |
|
|
1,552 |
|
|
3,026 |
|
|
2,960 |
|
||||
| Advisory fee to related party |
|
2,042 |
|
|
1,737 |
|
|
4,511 |
|
|
3,939 |
|
||||
| Total operating expenses |
|
13,173 |
|
|
13,050 |
|
|
25,994 |
|
|
26,466 |
|
||||
| Net operating loss |
|
(1,013 |
) |
|
(1,277 |
) |
|
(1,826 |
) |
|
(2,794 |
) |
||||
| Interest income |
|
3,353 |
|
|
4,794 |
|
|
7,363 |
|
|
10,527 |
|
||||
| Interest expense |
|
(1,777 |
) |
|
(1,913 |
) |
|
(3,597 |
) |
|
(3,835 |
) |
||||
| Equity in income from unconsolidated joint ventures |
|
19 |
|
|
501 |
|
|
(140 |
) |
|
984 |
|
||||
| Gain on real estate transactions |
|
947 |
|
|
- |
|
|
4,838 |
|
|
- |
|
||||
| Income tax provision |
|
1,335 |
|
|
(614 |
) |
|
189 |
|
|
(1,089 |
) |
||||
| Net income |
|
2,864 |
|
|
1,491 |
|
|
6,827 |
|
|
3,793 |
|
||||
| Net income attributable to noncontrolling interest |
|
(37 |
) |
|
(324 |
) |
|
(1,035 |
) |
|
(875 |
) |
||||
| Net income attributable to the common shares | $ |
2,827 |
|
$ |
1,167 |
|
$ |
5,792 |
|
$ |
2,918 |
|
||||
| Earnings per share | ||||||||||||||||
| Basic and diluted | $ |
0.18 |
|
$ |
0.07 |
|
$ |
0.36 |
|
$ |
0.18 |
|
||||
| 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 |
|
||||
Contacts
American Realty Investors, Inc.
Investor Relations
Erik Johnson (469) 522-4200
investor.relations@americanrealtyinvest.com
