Transcontinental Realty Investors, Inc. — Q3 2026 Earnings Summary

Financial Performance:

• Total revenue increased $1.1 million to $13.9 million for the three months ended September 30, 2026, compared to $12.8 million in the same period in 2025.
• Rental revenues rose to $13.3 million from $11.9 million year-over-year.
• Net operating loss widened to $2.4 million from $1.4 million in the prior year period, driven by a $1.4 million increase in operating expenses related to lease-up properties.
• Net loss attributable to common shares was $0.1 million ($0.02 per share) for the quarter, a shift from net income of $0.7 million ($0.08 per share) in 2025.
• Interest income decreased $0.7 million to $4.0 million, while interest expense increased $0.7 million to $2.3 million.
• Gain on sale of assets was $0.8 million, resulting from the sale of 21 lots at Windmill Farms.
• For the nine months ended September 30, 2026, total revenue was $39.1 million compared to $37.0 million in 2025, while net loss attributable to the company was $1.1 million compared to net income of $5.5 million in the prior year.

Business Segments and Product Lines:

• Total occupancy for stabilized properties was 82% as of September 30, 2026, comprising 95% at multifamily properties and 57% at commercial properties.
• Revenue growth in multifamily properties was driven by the lease-up of Development Properties, offsetting a $0.4 million revenue decline in commercial properties.
• The company holds a diverse portfolio including office buildings, apartments, shopping centers, developed and undeveloped land, and mortgage receivables.

Other Key Points:

• On October 2, 2026, the company entered into an agreement to acquire four multifamily properties totaling 782 units (Bellwether Ridge, Parc at Ingleside, Parc at Opelika, and Parc at Windmill Farms) 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 paid an advisory fee to a related party of $2.1 million for the quarter, down from $2.2 million in the prior year period.