Transcontinental Realty Investors, Inc. — Q2 2026 Earnings Summary

Financial Performance

• Reported a net loss of $1.1 million ($0.13 per share) for the three months ended June 30, 2026, compared to net income of $0.2 million ($0.02 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 $2.3 million for the three months ended June 30, 2026, from $0.8 million in the prior year period.
• Operating expenses increased $1.6 million to $15.2 million for the quarter, primarily driven by lease-up properties.
• Interest income decreased $0.8 million to $3.2 million, while interest expense increased $1.0 million to $2.8 million.
• A gain on sale of $0.8 million was recorded from the sale of 21 lots at Windmill Farms.
• For the six months ended June 30, 2026, the company reported a net loss of $0.7 million ($0.11 per share) compared to net income of $5.1 million ($0.55 per share) in the prior year period.

Business Segments and Product Lines

• Total occupancy for stabilized properties was 81% as of June 30, 2026, comprising 93% at multifamily properties and 58% at commercial properties.
• Development properties occupancy stood at 86% for Alera, 85% for Bandera Ridge, and 77% for Merano.
• Revenue growth was driven by a $0.5 million increase in multifamily properties due to the lease-up of Development Properties and a $0.2 million increase in commercial properties due to higher occupancy at Stanford Center.

Other Key Points

• The company sold 21 lots from its Windmill Farms holdings during the quarter for $1.0 million.
• The tax provision decreased by $2.2 million year-over-year, partially offsetting the decline in net income.
• Noncontrolling interest net income was $0.1 million for the quarter ended June 30, 2026, compared to $0.2 million in the prior year period.