DALLAS, Nov. 9, 2001 (PRIMEZONE) -- Transcontinental Realty Investors, Inc. (NYSE:TCI) Friday announced 2001 third quarter and nine months net incomes of $11.12 million and $25.76 million, or $1.29 and $2.98 per share, on revenues of $32.42 million and $103.46 million, compared to net incomes of $6.89 million and $17.02 million, or $.80 and $1.97 per share, on revenues of $35.16 million and $103.86 million for the same periods in 2000.
Net income for the third quarter and nine months of 2001 included:
-- Gains on the sale of real estate that increased to $18.78 million
and $47.53 million, from $11.76 million and $29.56 million in the
2000 comparable periods.
-- Rents that decreased due to property sales in 2000 and 2001 were
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, leased out
prior to January 1, 2001, increased by $1.1 million in the first
nine months of 2001.
-- Interest income increased to $1.02 million and $2.28 million, from
$936,000 and $1.93 million in the 2000 periods, due to loans
funded in 2000 and 2001.
-- Loss of equity investees increased to $2.16 million and $4.53
million, from $185,000 and $477,000 in the 2000 periods.
Total expenses decreased in third quarter and increased in nine months 2001 to $38.94 million and $122.98 million, as compared to $40.78 million and $117.85 million for the same periods in 2000. Expenses included:
-- Operations expenses decreasing in the third quarter and increasing
in the nine months 2001 to $19.64 million and $60.08 million, from
$19.90 million and $56.66 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 by $1.20 million and
$3.40 million.
-- Interest expense decreasing to $9.43 million and $31.38 million,
from $12.25 million and $35.41 million in 2000, due to sales of
property subject to debt, loan payoffs, refinancings, principal
paydowns and lower variable interest rates.
-- Depreciation decreasing to $4.74 million and $14.79 million, from
$5.40 million and $14.87 million in 2000, due to property sales
and fully depreciated building and land improvements at the
apartments.
-- Net income fees, advisory fees, and incentive fees increasing due
to increased net income, gross assets and property sales, the
basis for such fees.
-- General and administrative expenses increasing to $1.61 million
and $7.53 million, from $1.33 million and $5.71 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)
Three months ended Nine months ended
September 30, September 30,
2001 2000 2001 2000
Income from rents $ 32,423 $ 35,164 $ 103,464 $ 103,855
Expense from operations 19,643 19,896 60,084 56,659
Operating income 12,780 15,268 43,380 47,196
Other income (loss) $ (1,147) $ 751 $ (2,254) $ 1,451
Other expense 19,297 20,883 62,892 61,187
Gain on sale
of real estate 18,780 11,755 47,529 29,562
(1,664) (8,377) (17,617) (30,174)
Net Income $ 11,116 $ 6,891 $ 25,763 $ 17,022
Preferred dividend
requirement (7) (7) (22) (22)
Net income applicable
to common shares $ 11,109 $ 6,884 $ 25,741 $ 17,000
Earnings Per Share
Net Income
Basic $ 1.29 $ .80 $ 2.98 $ 1.97
Diluted $ 1.28 $ .80 $ 2.97 $ 1.97
Weighted average common
shares used to compute
earnings per share
Basic 8,603,614 8,633,211 8,625,230 8,630,029
Diluted 8,653,614 8,633,211 8,675,230 8,630,029