EX-99.1 2 arl20210930ex991earnings.htm EX-99.1 Document


NEWS RELEASEContact:
American Realty Investors, Inc. Investor Relations
FOR IMMEDIATE RELEASEErik Johnson (469) 522-4200 investor.relations@transconrealty-invest.com


American Realty Investors, Inc. reports Earnings for Q3 2021

DALLAS (November 10, 2021) -- American Realty Investors, Inc. (NYSE:ARL) is reporting its results of operations for the quarter ended September 30, 2021. For the three months ended September 30, 2021, we reported a net loss attributable to common shares of $19.4 million or $1.20 per diluted share, compared to $8.0 million or $0.50 per diluted share for the same period in 2020.

Financial Highlights

•We collected approximately 94% of our rents for the three months ended September 30, 2021, comprised of approximately 94% from multifamily tenants and approximately 97% from office tenants.
•Total occupancy was 93% at September 30, 2021, which includes 97% at our multifamily properties and 70% at our commercial properties.
•On August 26, 2021, we sold 600 Las Colinas, a 512,173 square foot office building in Irving, Texas for $74.8 million, resulting in gain on sale of $27.3 million. After repayment of the mortgage note payable on the property, we realized approximately $38.8 million in net cash proceeds.
•On August 25, 2021, we replaced the existing loan on Villas at Bon Secour with a new $20.0 million loan that bears interest at 3.08% and matures on August 25, 2028. As a result of the transaction we generated $8.9 million in additional proceeds and reduced the rate by 92 basis points.
Financial Results

Rental revenues decreased $1.8 million from $11.5 million for the three months ended September 30, 2020 to $9.6 million for the three months ended September 30, 2021. The decrease in rental revenue is primarily due to the sale of 600 Las Colinas and a decrease in revenue from our commercial properties due to a decline in occupancy.

Net operating loss increased $2.9 million from $2.3 million for three months ended September 30, 2020 to $5.2 million for the three months ended September 30, 2021. The increase in net operating loss is primarily due to an increase in legal fees from prior litigation and advisory fees from the sale of 600 Las Colinas and Villas at Bon Secour.

Net income attributable to common shares increased $11.4 million from $8.0 million for the three months ended September 30, 2020 to $19.4 million for the three months ended September 30, 2021. The increase in net income is primarily attributed to the increase in gain on sale of assets offset in part by the increase in operating loss.



About American Realty Investors, Inc.
American Realty Investors, Inc., a Dallas-based real estate investment company, holds a diverse portfolio of equity real estate located across the U.S., including office buildings, apartments, shopping centers, and developed and undeveloped land. The Company invests in real estate through direct ownership, leases and partnerships and invests in mortgage loans on real estate. The Company also holds mortgage receivables. The Company’s primary asset and source of its operating results is its investment in Transcontinental Realty Investors, Inc. (NYSE:TCI). For more information, visit the Company’s website at www.americanrealtyinvest.com.



AMERICAN REALTY INVESTORS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Revenues:
Rental revenues$9,628 $11,454 $30,183 $34,461 
Other income866 483 3,242 5,347 
   Total revenue10,494 11,937 33,425 39,808 
Expenses:
Property operating expenses5,610 6,388 16,500 18,507 
Depreciation and amortization2,935 3,526 9,473 10,338 
General and administrative3,698 1,997 12,799 7,958 
Advisory fee to related party3,419 2,329 11,594 7,055 
   Total operating expenses15,662 14,240 50,366 43,858 
   Net operating (loss) income(5,168)(2,303)(16,941)(4,050)
Interest income6,128 5,421 17,388 16,459 
Interest expense(7,057)(7,622)(22,476)(26,295)
(Loss) gain on foreign currency transactions(1,639)(1,470)1,185 774 
Loss on extinguishment of debt(1,451)— (1,451)— 
Equity in income (loss) from unconsolidated joint ventures3,543 337 11,451 (642)
Gain on sale or write-down of assets, net31,312 15,325 24,265 24,802 
Income tax provision(605)(50)1,196 (346)
Net income25,063 9,638 14,617 10,702 
Net income attributable to noncontrolling interest(5,652)(1,651)(4,466)(2,075)
Net income attributable to common shares$19,411 $7,987 $10,151 $8,627 
Earnings per share - basic
Basic and diluted$1.20 $0.50 $0.63 $0.54 
Weighted average common shares used in computing earnings per share
Basic and diluted16,152,043 15,997,076 16,152,043 15,997,076