DALLAS, May 15, 2000 (PRIMEZONE) -- Transcontinental Realty Investors, Inc. (NYSE:TCI) Monday announced increased rental and interest income and larger gains from the sale of real estate resulted in 2000 first quarter net income of $4.3 million, or $.50 per share, on revenue of $34 million as compared to $289,000, or $.07 per share, on revenues of $19.1 million for first quarter 1999.
Income from operations rose to $15.6 million in first quarter 2000, compared to $8.8 million for the same period in 1999 due to a $14.9 million increase in rents. This income growth, resulting from the purchase of nine income producing properties in 1999 and 2000 and the properties acquired through merger with Continental Mortgage and Equity Trust in 1999, was partially offset by sales of 10 properties in 1999 and 2000.
Interest and other income increased in the first quarter of 2000 to $411,000, from $127,000 for first quarter 1999. This revenue growth is due to gaining two mortgage notes receivable in the CMET merger, as well as TCI providing purchase money financing for two property sales in 1999.
In first quarter 2000, $9 million in gains were realized from the sale of two apartments and a $4.8 million previously deferred gain on a land parcel sold in 1999, as compared to $1.9 million in 1999.
Total expenses for first quarter 2000 were $39 million, as compared to $20.8 million for the same period in 1999 due to nine properties purchased in 1999 and 2000 and properties acquired in the merger. The increase was partially offset by sales of 10 properties in 1999 and 2000.
-- Operations expense was $18.4 million, up from $10.3 million in
1999.
-- Interest expense was $11.2 million, up from $6.2 million in 1999
due to debt incurred or assumed on the 1999-2000 acquisitions,
refinancings where debt balances were increased and the merger
with CMET.
-- Depreciation increased to $5.3 million, from $2.9 million in 1999.
-- The advisory and net income fees were $1.2 million and $352,000,
respectively, compared to $715,000 and $18,000 in 1999. These fees
paid to TCI's advisor rose due to increases in gross assets and
net income.
-- General and administrative expense was $2.7 million, from $632,000
in 1999, due to the merger.
Funds from operations (FFO) for first quarter 2000 decreased to $658,000 from $1.3 million for the same period last year. FFO is defined as net income minus extraordinary gains and gains from the sale of property, plus depreciation and amortization
Transcontinental Realty Investors, Inc., a Dallas-based real estate investment trust, invests in real estate through direct equity ownership and partnerships nationwide.
FINANCIAL HIGHLIGHTS
(dollars in thousands, except share and per share data)
Three months ended March 31,
2000 1999
Income from rents $ 34,041 $ 19,093
Expense from operations 18,396 10,320
Operating income 15,645 8,773
Other income 411 127
Other expense 20,651 10,479
Gain on sale of real estate 8,951 1,868
(11,289) (8,484)
Net Income 4,356 289
Preferred dividend requirement (7) (7)
Net income applicable to
Common shares $ 4,339 $ 282
Earnings Per Share
Net income $ .50 $ .07
Weighted average common
shares used to compute
earnings per share 8,627,545 3,878,463
Funds from operations $ 685 $ 1,298