DALLAS, April 1, 2003 (PRIMEZONE) -- Transcontinental Realty Investors, Inc. (NYSE:TCI) Tuesday reported net income of $6.15 million, or $.75 per share, on revenue of $20.84 million, for the fourth quarter ended Dec. 31, 2002, compared to a net loss of $6.10 million, or ($.74) per share, on revenue of $23.63 million for fourth quarter 2001.
For the twelve months ended Dec. 31, 2002, TCI reported net income of $4.66 million, or $.58 per share, on revenue of $110.04 million, compared to net income of $19.64 million, or $2.28 per share, on revenue of $117.74 million, for the comparable 12-month period in 2001.
Income for the fourth quarter and twelve months of 2002 declined, compared to the same periods in 2001, and included:
- Rental income of $20.59 million and $109.73 million, compared to $21.79 million and $115.44 million in 2001, due to sales of six commercial properties and 15 apartments in 2001 and decreased occupancy at the commercial properties and U.S. hotels, partially offset by the completion of construction of four apartments and a European hotel and higher rental rates at the commercial properties. - Interest and other income of $1.32 million and $4.1 million, compared to $671,000 and $2.92 million, due to funding seven loans in 2002. - Equity in income (loss) of investees of ($1.07) million and ($3.82) million, compared to $1.16 million and ($628,000) in the 2001 comparable periods.
Total expenses for the fourth quarter and twelve months of 2002 were $31.27 million and $146.94 million, compared to $34.51 million and $147.59 million for the 2001 periods. Total expenses included:
- Operating expenses of $13.71 million and $71.02 million, compared to $14.85 million and $68.51 million in the 2001 periods. - Provision for asset impairments of $700,000 and $2.58 million that represented the write down of five apartments and one land parcel to current estimated fair value. No provision for asset impairment was recorded in the 2001 periods. - Interest expense of $10.78 million and $38.96 million, compared to $7.72 million and $36.81 million in the 2001 periods, due to costs related to refinancing properties in 2002, the 2001-2002 purchase of 14 properties subject to debt and an interest swap agreement on newly built apartments. The 2002 increases were partially offset by lower variable interest rates, principal paydowns and sales of property subject to debt. - Depreciation of $4.91 million and $19.04 million increased, compared to $3.73 million and $17.14 million in the 2001 periods, due to the purchase of seven properties subject to depreciation in 2001-2002, the completion of five construction projects and capital improvements in the office buildings and hotels. - General and administrative expenses of $2.09 million and $8.77 million declined, compared to $3.90 million and $11.50 million in the 2001 periods, due to decreases in consultant fees and taxes and cost reimbursements to the advisor. - Advisory, net income and incentive fees totaling $619,000 and $4.84 million, compared to $1.18 million and $10.36 million in the 2001 periods. The lower total fees were due to a decrease in net income and incentive fees in 2002.
Properties sales in the fourth quarter and twelve months of 2002 included:
- Loss from operations of $1.04 million and $2.21 million, compared to income of $989,000 and $703,000 in 2001. - Gains of $16.63 million and $38.95 million, compared to $4.12 million and $48.96 million in the 2001 periods. Sold in 2002 were 12 apartments, three office buildings, two industrial warehouses and four parcels of land. - Equity in investees gains on sale of real estate of $1.91 million and $5.01 million in 2002.
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 Twelve months ended
December 31, December 31,
2002 2001 2002 2001
---------- ---------- ---------- ----------
Income from
rents $ 20,585 $ 21,793 $ 109,726 $ 115,439
Expense from
operations 13,708 14,845 71,018 68,510
---------- ---------- ---------- ----------
Operating income 6,877 6,948 38,708 46,929
Other income
(loss) $ 254 $ 1,832 $ 313 $ 2,296
Gain on the sale
of real estate -- 4,118 -- 48,961
Other expense 17,559 19,660 75,923 79,078
---------- ---------- ---------- ----------
Net income (loss)
from continuing
operations (10,428) (6,762) (36,902) 19,108
Discontinued
operations 16,628 810 41,753 703
Net income
(loss) $ 6,200 $ (5,952) $ 4,851 $ 19,811
Preferred
dividend
requirement (55) (150) (190) (172)
---------- ---------- ---------- ----------
Net income (loss)
applicable to
Common shares $ 6,145 $ (6,102) $ 4,661 $ 19,639
========== ========== ========== ==========
Basic Earnings
Per Share
Net income (loss)
from continued
operations $ (1.28) $ (.84) $ (4.60) $ 2.24
Net income from
discontinued
operations 2.03 .10 5.18 .08
---------- ---------- ---------- ----------
Net income
applicable to
Common shares $ .75 $ (.74) $ .58 $ 2.32
========== ========== ========== ==========
Diluted Earnings
Per Share
Net income (loss)
from continued
operations $ (1.28) $ (.84) $ (4.60) $ 2.20
Net income from
discontinued
operations 2.03 .10 5.18 .08
---------- ---------- ---------- ----------
Net income
applicable to
Common shares $ .75 $ (.74) $ .58 $ 2.28
========== ========== ========== ==========
Weighted average
common shares
used to compute
earnings per
share
Basic 8,193,333 8,245,946 8,057,361 8,478,377
Diluted 8,193,333 8,245,946 8,057,361 8,615,465