Transcontinental Realty Reports 2001 Net Income of $2.28; Fourth Quarter Net Loss of $.74


DALLAS, March 20, 2002 (PRIMEZONE) -- Transcontinental Realty Investors, Inc. (NYSE:TCI) Wednesday announced 2001 fourth quarter net loss of $6.10 million and 12 months net income of $19.64 million, or a loss of $.74 per share and income of $2.28 per share, on revenues of $31.45 million and $134.91 million, compared to net incomes of $12.76 million and $29.76 million, or $1.48 per share and $3.45 per share, on revenues of $35.81 million and $139.66 million for the same periods in 2000.

Net income for the fourth quarter and 12 months of 2001 included:

* Gains on the sale of real estate decreased to $6.74 million and $54.27 million, from $20.99 million and $50.55 million in the comparable periods of 2000.

* Rents decreased due to property sales in 2000 and 2001. This was partially offset by increased rental and occupancy rates at the commercial properties and rents generated by properties purchased in 2000 and 2001. Operations revenue from the hotels, increased by $4.4 million in 2001.

* Interest income increased due to loans funded in 2000 and 2001.

* Loss from equity investees increased to $1.42 million and $5.95 million, from $79,000 and $556,000 in the 2000 periods.

Total expenses increased in the fourth quarter and 12 months 2001 to $43.39 million and $166.37 million, as compared to $44.40 million and $162.24 million for the same periods in 2000. Expenses included:

* Operations expense that decreased in the fourth quarter and increased in the 12 months 2001 to $20.48 million and $80.56 million, from $21.51 million and $78.17 million in 2000, due to property sales, partially offset by properties purchased in 2000 and 2001, as well as increases in utilities, maintenance costs, leasing costs, and taxes. Hotel operation expenses increased to $1.1 million and $4.6 million.

* Interest expense decreased to $9.68 million and $41.06 million, from $12.71 million and $48.11 million in 2000, due to sales of property subject to debt, loan payoffs, refinancings, principal paydowns and lower variable interest rates.

* Incentive fees increased due to increased property sales, the basis for such fees.

* General and administrative expenses increased to $3.88 million and $11.41 million, from $2.79 million and $8.51 million in 2000, due to increased legal and other professional fees.

Transcontinental Realty Investors, Inc., a Dallas-based real estate investment company, invests in real estate through direct equity ownership and partnerships nationwide.




        FINANCIAL HIGHLIGHTS
        (dollars in thousands, except share and per share data)

                           Year ended             Three months ended
                             Dec. 31,                  Dec. 31,
                         2001        2000          2001         2000

 Income from rents  $  134,911   $  139,662   $   31,446   $   35,807
 Expense from
  operations            80,562       78,170       20,478       21,510
   Operating income     54,349       61,492       10,968       14,297

 Other income       $   (3,002)  $    1,814   $     (747)  $      363
 Other expense          85,806       84,074       22,914       22,888
 Gain on sale
  of real estate        54,270       50,550        6,741       20,988
                       (34,538)     (31,710)     (16,920)      (1,537)
 Net Income         $   19,811   $   29,782   $   (5,952)  $   12,760
 Preferred
  dividend
  requirement             (172)         (22)        (150)        --

 Net income
  applicable to
  common shares     $   19,639   $   29,760   $   (6,102)  $   12,760

 Earnings Per Share
  Net Income
   Basic            $     2.32   $     3.45   $     (.76)  $     1.48
   Diluted          $     2.28   $     3.45   $     (.74)  $     1.48

 Weighted average
  common shares
  used to compute
  earnings per
  share
   Basic             8,478,377    8,631,621    8,042,610    8,633,436
   Diluted           8,615,465    8,637,290    8,316,685    8,658,436

            

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