DALLAS, May 15, 2002 (PRIMEZONE) -- Transcontinental Realty Investors, Inc. (NYSE:TCI) Wednesday announced decreased rent income and lower gains on real estate sales resulted in a first quarter 2002 net loss of $1.38 million, or $.17 per share, on revenue of $30.66 million, as compared to net income of $309,000, or $.04 per share, on revenue of $34.53 million for the first quarter of 2001.
In the first three months of 2002: * Rents decreased to $30.87 million, from $35.27 million in 2001, due to sales of 25 properties in 2001 and 2002 and lower occupancy in the hotels, partially offset by six properties purchased in 2001 and 2002, and higher occupancy rates in the apartments and commercial properties in 2002. * Gains of $5.4 million were recognized on sales of two apartments and a warehouse and from gains of equity investees, as compared to gains totaling $6.5 million on real estate sales in 2001. * Interest and other income increased to $1.1 million, from $638,000, primarily due to loans funded in 2001 and first quarter 2002.
Total expenses for first quarter 2002 decreased to $37.42 million, from $40.70 million in 2001, primarily due to property sales in 2001 and 2002:
* Property operations expense decreased to $19.47 million, from $20.40 million in 2001, due to 2001 and 2002 property sales and lower hotel expenses, mostly offset by property purchases and increased leasing costs and utilities at the apartments and commercial properties. * Interest expense decreased to $9.16 million, from $11.21 million in 2001, due to property sales, principal paydowns and lower variable interest rates. * Advisory fee decreased to $1.42 million, from $1.50 million in 2001. * General and administrative expense decreased to $2.20 million, from $2.43 million in 2001, due to lower legal and other professional fees.
Transcontinental Realty Investors, Inc., a Dallas-based real estate investment company, invests in real estate through direct equity ownership and partnerships nationwide.
FINANCIAL HIGHLIGHTS
(dollars in thousands, except share and per share data)
Three months ended
March 31,
2002 2001
Income from rents $ 30,869 $ 35,265
Expense from operations 19,468 20,395
Operating income 11,401 14,870
Other income (209) (735)
Other expense 17,956 20,303
Gain on sale of real estate 5,429 6,484
(12,736) (14,554)
Net income (loss) $ (1,335) $ 316
Preferred dividend requirement (45) (7)
Net income (loss) applicable to
Common shares $ (1,380) $ 309
Earnings Per Share
Net income $ (.17) $ .04
Weighted average common
shares used to compute
earnings per share 8,042,594 8,686,346