American Realty Investors, Inc. — Q3 2026 Earnings Summary

Financial Performance:

• Reported net loss attributable to common shares of $0.7 million ($0.04 per share) for the three months ended September 30, 2026, compared to net income of $0.1 million ($0.01 per share) in the same period of 2025.
• Total revenue increased $1.1 million to $13.9 million for the three months ended September 30, 2026, from $12.8 million in 2025.
• Rental revenues were $13.3 million for the three months ended September 30, 2026, up from $11.9 million in 2025.
• Net operating loss widened to $2.6 million for the three months ended September 30, 2026, from $1.6 million in 2025.
• Operating expenses increased $1.4 million to $16.5 million for the three months ended September 30, 2026, primarily due to lease-up costs.
• Interest income decreased $0.6 million to $3.5 million for the three months ended September 30, 2026, from $4.1 million in 2025.
• For the nine months ended September 30, 2026, total revenue was $39.1 million compared to $37.0 million in 2025; net loss attributable to common shares was $2.3 million compared to net income of $5.9 million in 2025.
• Gain on real estate transactions was $0.8 million for the three months ended September 30, 2026, resulting from the sale of 21 lots at Windmill Farms for $1.0 million.

Business Segments and Product Lines:

• Multifamily properties achieved 95% occupancy as of September 30, 2026, driving a $1.5 million revenue increase.
• Commercial properties had 57% occupancy as of September 30, 2026, contributing to a $0.4 million revenue decrease.
• Total portfolio occupancy was 82% at September 30, 2026.
• Revenue growth in multifamily properties is attributed to the lease-up of Development Properties.

Other Key Points:

• On October 2, 2026, the Company entered into an agreement to acquire four multifamily properties totaling 782 units (Bellwether Ridge in DeSoto, TX; Parc at Ingleside in Ingleside, TX; Parc at Opelika in Opelika, AL; and Parc at Windmill Farms in Forney, TX) in exchange for the settlement of four notes receivable and a $12.0 million cash payment.
• The Company is currently working with lenders to assume existing mortgage notes payable on the newly acquired properties.
• On October 28, 2026, the Company exercised an option to extend the maturity of its loan on Alera at Hunters Glen to November 5, 2027.
• The Company's primary asset and source of operating results remains its investment in Transcontinental Realty Investors, Inc. (NYSE:TCI).