American Realty Investors, Inc. — Q2 2026 Earnings Summary

Financial Performance

• Reported a net loss attributable to common shares of $1.0 million ($0.06 per share) for the three months ended June 30, 2026, compared to net income of $2.8 million ($0.18 per share) in the same period in 2025.
• Total revenue increased $0.7 million to $12.9 million for the three months ended June 30, 2026, from $12.2 million in the prior year period.
• Net operating loss widened to $2.5 million for the three months ended June 30, 2026, from $1.0 million in the prior year period.
• Operating expenses increased $1.6 million to $15.4 million for the three months ended June 30, 2026, primarily driven by lease-up properties.
• Interest income decreased $0.5 million to $2.8 million for the three months ended June 30, 2026, from $3.4 million in the prior year period.
• Income tax provision decreased $0.6 million to $0.1 million for the three months ended June 30, 2026, from $1.3 million in the prior year period.
• For the six months ended June 30, 2026, total revenue was $25.2 million compared to $24.2 million in 2025, while net loss attributable to common shares was $1.6 million compared to net income of $5.8 million in 2025.

Business Segments and Product Lines

• Total occupancy was 81% at June 30, 2026, comprising 93% at multifamily properties and 58% at commercial properties.
• Development properties (Alera, Bandera Ridge, and Merano) reported occupancy rates of 86%, 85%, and 77%, respectively, at June 30, 2026.
• Revenue growth in multifamily properties was driven by the lease-up of Development Properties.
• Revenue growth in commercial properties was primarily attributed to increased occupancy at Stanford Center.
• Sold 21 lots from Windmill Farms holdings during the quarter for $1.0 million, resulting in a $0.8 million gain on sale.

Other Key Points

• The company's primary asset and source of operating results is its investment in Transcontinental Realty Investors, Inc. (NYSE:TCI).
• The portfolio includes office buildings, apartments, shopping centers, developed and undeveloped land, and mortgage receivables.
• Advisory fees to a related party were $2.0 million for the three months ended June 30, 2026, compared to $2.0 million in the prior year period.
• Equity in loss from unconsolidated joint ventures was $0.4 million for the three months ended June 30, 2026, compared to a loss of $0.0 million in the prior year period.