DALLAS, Aug. 14, 2002 (PRIMEZONE) -- Transcontinental Realty Investors, Inc. (NYSE:TCI) announced Wednesday 2002 second quarter and six months net losses of $1.90 million and $3.28 million, or ($.24) per share and ($.41) per share, on revenues of $30.65 million and $58.96 million, as compared to net incomes of $14.32 million and $14.63 million, or $1.64 per share and $1.68 per share, on revenues of $28.05 million and $53.42 million for the comparable periods in 2001, due to decreased occupancy rates, lower gains on the sale of properties and increased expenses.
Income for the second quarter and six months of 2002 included:
-- Increased rents in the second quarter and six months due to the
purchase of five apartments and a shopping center in 2002 and
2001, increased rental rates and steady occupancy at the
apartments, and construction completed on an apartment complex and
a hotel, offset in the six months by decreases in occupancy at the
commercial properties and U.S. hotels.
-- Increased interest and other income due to 14 loans funded in 2001
and 2002.
-- Decreased equity in losses of equity investees of $291,000 and
$1.57 million, compared to $1.02 million and $2.39 million in the
comparable periods of 2001.
Total expenses increased for second quarter and six months 2002 to $39.13 million and $73.30 million, from $34.91 million and $66.59 million for the same periods in 2001. Total expenses included:
-- Operations expense of $18.92 million and $36.28 million, up from
$15.02 million and $30.37 million in the 2001 periods, due to the
completion of construction of an apartment and a hotel in 2002,
the purchase of five apartments and a shopping center in 2001 and
higher repairs, taxes, insurance and personnel expense.
-- Provision for asset impairment of $1.88 million, representing the
write down of four apartments and one land parcel; no provision
for asset impairment was recorded in the 2001 periods.
-- Interest expense of $9.63 million and $17.99 million, up from
$8.15 million and $16.55 million in the 2001 periods, due to costs
related to refinancing properties in 2002 and the 2001-2002
purchase of eight properties subject to debt, partially offset by
lower variable interest rates and principal paydowns.
-- Depreciation of $4.89 million and $9.78 million, up from $4.10
million and $8.06 million in the 2001 periods, due to the purchase
of apartments in 2001-2002, the completion of construction of an
apartment and a hotel and capital improvements in the office
buildings and hotels.
-- General and administrative expenses of $2.21 million and $4.41
million, down from $3.50 million and $5.92 million in the 2001
periods, due to decreased legal and other professional fees.
-- Advisory fees, net income fees and incentive fees totaled $1.28
million and $2.69 million, down from $4.12 million and $5.65
million in the 2001 periods. No net income or incentive fees were
paid in the first six months of 2002.
Discontinued operations on properties sold for the second quarter and six months of 2002 included:
-- Gains on the sale of operations of $7.09 million and $9.59
million, down from $20.62 million and $25.83 million in the 2001
periods. The 2002 gains were the result of sales of four
apartments, three office buildings and a warehouse.
-- Equity in investees gain on sale of real estate of $183,000 and
$3.10 million, compared to $1.64 million and $2.92 million in the
2001 periods.
Transcontinental Realty Investors, Inc., a Dallas-based real estate investment company, invests in real estate through direct equity ownership and partnerships nationwide. For more information, go to the web site at www.transconrealty-invest.com.
FINANCIAL HIGHLIGHTS
(dollars in thousands, except share and per share data)
Three months ended Six months ended
June 30, June 30,
2002 2001 2002 2001
---------- ---------- ---------- ----------
Income from rents $ 29,960 $ 28,402 $ 58,476 $ 54,502
Expense from
operations 18,916 15,020 36,276 30,371
---------- ---------- ---------- ----------
Operating income 11,044 13,382 22,200 24,131
Other income
(loss) $ 693 $ (349) $ (484) $ (1,084)
Other expense 20,213 19,887 37,020 36,221
---------- ---------- ---------- ----------
Net loss from
continuing
operations (8,476) (6,854) (14,336) (13,174)
Net loss from
discontinued
operations (645) (1,080) (1,550) (928)
Gain on sale of
operations 7,085 20,623 9,593 25,833
Equity in investees
gain on sale of
operations 183 1,642 3,104 2,916
---------- ---------- ---------- ----------
6,623 21,185 11,147 27,821
Net income
(loss) $ (1,853) $ 14,331 $ (3,189) $ 14,647
Preferred dividend
requirement (45) (8) (90) (15)
---------- ---------- ---------- ----------
Net income (loss)
applicable to
Common shares $ (1,898) $ 14,323 $ (3,279) $ 14,632
========== ========== ========== ==========
Earnings Per Share
Net loss from
continued
operations $ (1.05) $ (.79) $ (1.78) $ (1.52)
Net income from
discontinued
operations .82 2.45 1.39 3.21
Net income
applicable to
Common shares $ (.24) $ 1.65 $ (.41) $ 1.69
========== ========== ========== ==========
Diluted earnings
per share
Net loss from
continued
operations $ (1.05) $ (.79) $ (1.78) $ (1.52)
Net income from
discontinued
operations .80 2.43 1.34 3.19
---------- ---------- ---------- ----------
Net income
applicable to
Common shares $ (.24) $ 1.64 $ (.41) $ 1.68
========== ========== ========== ==========
Weighted average
common shares
used to compute
earnings per share
Basic 8,042,594 8,661,091 8,042,594 8,661,217
Diluted 8,291,884 8,734,388 8,296,082 8,734,514