Attached files
| file | filename |
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| 8-K - TRANSCONTINENTAL REALTY - TRANSCONTINENTAL REALTY INVESTORS INC | tci8k111615.htm |
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TRANSCONTINENTAL REALTY INVESTORS, INC.
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(unaudited)
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For the Three Months Ended
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For the Nine Months Ended
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September 30,
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September 30,
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2015
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2014
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2015
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2014
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(dollars in thousands, except per share amounts)
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Revenues:
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Rental and other property revenues (including $211 and $175 for the three months and $591 and
$526 for the nine months ended 2015 and 2014, respectively, from related parties)
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$ | 27,539 | $ | 18,466 | $ | 73,599 | $ | 55,281 | ||||||||
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Expenses:
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Property operating expenses (including $192 and $162 for the three months and $522 and $481 for
the nine months ended 2015 and 2014, respectively, from related parties)
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14,195 | 10,077 | 35,987 | 28,640 | ||||||||||||
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Depreciation and amortization
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6,555 | 4,415 | 16,305 | 12,967 | ||||||||||||
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General and administrative (including $489 and $714 for the three months and $2,036 and $2,114
for the nine months ended 2015 and 2014, respectively, from related parties)
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1,146 | 1,131 | 4,191 | 5,417 | ||||||||||||
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Net income fee to related party
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51 | (186 | ) | 142 | 514 | |||||||||||
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Advisory fee to related party
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2,666 | 1,826 | 6,561 | 5,490 | ||||||||||||
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Total operating expenses
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24,613 | 17,263 | 63,186 | 53,028 | ||||||||||||
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Net operating income
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2,926 | 1,203 | 10,413 | 2,253 | ||||||||||||
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Other income (expenses):
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Interest income (including $2,503 and $2,718 for the three months and $8,861 and $8,835 for the
nine months ended 2015 and 2014, respectively, from related parties)
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2,505 | 3,064 | 9,260 | 9,181 | ||||||||||||
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Other income (expense)
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(77 | ) | 344 | 4 | 741 | |||||||||||
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Mortgage and loan interest (including $0 and $0 for the three months and $31 and $31 for the
six months ended 2015 and 2014, respectively, from related parties)
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(12,006 | ) | (8,043 | ) | (29,703 | ) | (23,329 | ) | ||||||||
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Loan charges and prepayment penalties
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(1,544 | ) | (1,044 | ) | (2,250 | ) | (2,626 | ) | ||||||||
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Earnings (losses) from unconsolidated joint ventures and investees
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(4 | ) | 10 | 39 | (5 | ) | ||||||||||
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Litigation settlement (expense)
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(85 | ) | (86 | ) | (203 | ) | 3,666 | |||||||||
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Total other expenses
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(11,211 | ) | (5,755 | ) | (22,853 | ) | (12,372 | ) | ||||||||
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Loss before gain on land sales, non-controlling interest, and taxes
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(8,285 | ) | (4,552 | ) | (12,440 | ) | (10,119 | ) | ||||||||
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Gain on sale of income producing properties
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735 | - | 735 | - | ||||||||||||
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Gain on land sales
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997 | 40 | 5,124 | 634 | ||||||||||||
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Net income (loss) from continuing operations before taxes
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(6,553 | ) | (4,512 | ) | (6,581 | ) | (9,485 | ) | ||||||||
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Income tax benefit (expense)
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16 | 786 | 107 | 5,030 | ||||||||||||
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Net income (loss) from continuing operations
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(6,537 | ) | (3,726 | ) | (6,474 | ) | (4,455 | ) | ||||||||
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Discontinued operations:
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Net income (loss) from discontinued operations
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47 | 477 | 306 | (454 | ) | |||||||||||
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Gain on sale of real estate from discontinued operations
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- | 1,770 | - | 14,826 | ||||||||||||
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Income tax benefit (expense) from discontinued operations
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(16 | ) | (786 | ) | (107 | ) | (5,030 | ) | ||||||||
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Net income (loss) from discontinued operations
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31 | 1,461 | 199 | 9,342 | ||||||||||||
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Net income (loss)
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(6,506 | ) | (2,265 | ) | (6,275 | ) | 4,887 | |||||||||
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Net income (loss) attributable to non-controlling interest
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(95 | ) | (81 | ) | (82 | ) | (292 | ) | ||||||||
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Net income attributable to Transcontinental Realty Investors, Inc.
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(6,601 | ) | (2,346 | ) | (6,357 | ) | 4,595 | |||||||||
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Preferred dividend requirement
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(227 | ) | (227 | ) | (673 | ) | (778 | ) | ||||||||
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Net income (loss) applicable to common shares
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$ | (6,828 | ) | $ | (2,573 | ) | $ | (7,030 | ) | $ | 3,817 | |||||
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Earnings per share - basic
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Net income (loss) from continuing operations
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$ | (0.79 | ) | $ | (0.46 | ) | $ | (0.83 | ) | $ | (0.65 | ) | ||||
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Net income from discontinued operations
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- | 0.17 | 0.02 | 1.10 | ||||||||||||
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Net income (loss) applicable to common shares
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$ | (0.79 | ) | $ | (0.29 | ) | $ | (0.81 | ) | $ | 0.45 | |||||
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Earnings per share - diluted
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Net income (loss) from continuing operations
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$ | (0.79 | ) | $ | (0.46 | ) | $ | (0.83 | ) | $ | (0.65 | ) | ||||
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Net income from discontinued operations
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- | 0.17 | 0.02 | 1.10 | ||||||||||||
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Net income (loss) applicable to common shares
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$ | (0.79 | ) | $ | (0.29 | ) | $ | (0.81 | ) | $ | 0.45 | |||||
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Weighted average common shares used in computing earnings per share
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8,717,767 | 8,688,018 | 8,717,767 | 8,505,991 | ||||||||||||
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Weighted average common shares used in computing diluted earnings per share
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8,717,767 | 8,688,018 | 8,717,767 | 8,505,991 | ||||||||||||
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Amounts attributable to Transcontinental Realty Investors, Inc.
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Net income (loss) from continuing operations
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$ | (6,632 | ) | $ | (3,807 | ) | $ | (6,556 | ) | $ | (4,747 | ) | ||||
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Net income from discontinued operations
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31 | 1,461 | 199 | 9,342 | ||||||||||||
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Net income
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$ | (6,601 | ) | $ | (2,346 | ) | $ | (6,357 | ) | $ | 4,595 | |||||
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TRANSCONTINENTAL REALTY INVESTORS, INC.
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CONSOLIDATED BALANCE SHEETS
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(unaudited)
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September 30,
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December 31,
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2015
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2014
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(dollars in thousands, except share
and par value amounts)
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Assets
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Real estate, at cost
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$ | 939,024 | $ | 781,794 | ||||
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Real estate subject to sales contracts at cost, net of depreciation ($194 for 2015 and $4,278 for 2014)
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10,583 | 20,395 | ||||||
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Less accumulated depreciation
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(133,888 | ) | (113,068 | ) | ||||
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Total real estate
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815,719 | 689,121 | ||||||
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Notes and interest receivable:
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Performing (including $60,443 in 2015 and $77,853 in 2014 from related parties)
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67,626 | 84,863 | ||||||
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Non-performing
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- | 584 | ||||||
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Less allowance for doubtful accounts (including $1,825 in 2015 and 2014 from
related parties)
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(1,825 | ) | (1,990 | ) | ||||
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Total notes and interest receivable
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65,801 | 83,457 | ||||||
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Cash and cash equivalents
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11,958 | 12,201 | ||||||
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Restricted cash
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42,163 | 48,238 | ||||||
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Investments in unconsolidated joint ventures and investees
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2,178 | 1,543 | ||||||
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Receivable from related party
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101,031 | 58,404 | ||||||
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Other assets
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37,727 | 37,441 | ||||||
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Total assets
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$ | 1,076,577 | $ | 930,405 | ||||
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Liabilities and Shareholders’ Equity
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Liabilities:
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Notes and interest payable
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$ | 754,604 | $ | 588,749 | ||||
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Notes related to real estate held for sale
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585 | 1,552 | ||||||
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Notes related to real estate subject to sales contracts
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7,765 | 18,616 | ||||||
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Deferred gain (from sales to related parties)
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51,356 | 51,356 | ||||||
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Accounts payable and other liabilities (including $2,872 in 2015 and $4,909 in 2014 to related parties)
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35,756 | 36,684 | ||||||
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Total liabilities
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850,066 | 696,957 | ||||||
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Shareholders’ equity:
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Preferred stock, Series C: $0.01 par value, authorized 10,000,000 shares; issued and outstanding zero
shares in 2015 and 2014 (liquidation preference $100 per share). Series D: $0.01 par value,
authorized, issued and outstanding 100,000 shares in 2015 and 2014 (liquidation preference $100 per
share)
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1 | 1 | ||||||
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Common stock, $0.01 par value, authorized 10,000,000 shares; issued 8,717,967 shares in 2015 and
2014; outstanding 8,717,767 shares in 2015 and 2014
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87 | 87 | ||||||
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Treasury stock at cost, 200 shares in 2015 and 2014
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(2 | ) | (2 | ) | ||||
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Paid-in capital
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270,976 | 271,649 | ||||||
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Retained earnings
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(62,808 | ) | (56,451 | ) | ||||
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Total Transcontinental Realty Investors, Inc. shareholders' equity
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208,254 | 215,284 | ||||||
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Non-controlling interest
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18,257 | 18,164 | ||||||
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Total shareholders' equity
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226,511 | 233,448 | ||||||
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Total liabilities and shareholders' equity
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$ | 1,076,577 | $ | 930,405 | ||||