American Realty Investors, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, revealing significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

As of September 30, 2024, the company’s total assets increased to $1,042,718,000 from $1,023,484,000 at the end of 2023. Real estate assets rose to $527,562,000, up from $501,586,000. However, total liabilities also increased to $240,232,000 from $206,973,000, primarily due to a rise in accounts payable and other liabilities, which surged to $43,545,000 from $11,866,000. Total shareholders' equity decreased to $602,172,000 from $617,003,000.

For the three months ended September 30, 2024, total revenue fell to $11,607,000 from $12,526,000 in the same period of 2023. Rental revenues specifically decreased to $11,074,000 from $11,838,000. The company reported a net loss of $(17,016,000) for the quarter, a stark contrast to a net income of $4,025,000 in the prior year. This resulted in a loss attributable to common shares of $(17,460,000), compared to a profit of $2,988,000 in Q3 2023. Earnings per share for the quarter were $(1.08), down from $0.18.

For the nine months ended September 30, 2024, total revenue also declined to $35,052,000 from $39,073,000. The net loss for this period was $(13,223,000), compared to a net income of $8,547,000 in the same period of 2023. The loss attributable to common shares was $(14,542,000), compared to a profit of $6,091,000 in the prior year, resulting in an earnings per share of $(0.90), down from $0.38.

The multifamily segment showed resilience, with revenues increasing slightly to $7,967,000 for Q3 2024 from $7,899,000 in Q3 2023, and to $23,947,000 for the nine months from $22,930,000. However, the commercial segment experienced a decline, with revenues dropping to $3,107,000 in Q3 2024 from $3,939,000 and to $9,594,000 for the nine months from $11,306,000.

Strategically, the company has been active in development projects, including the Alera multifamily property in Florida and the Merano and Bandera Ridge projects in Texas, with total expected costs of approximately $55,330,000, $51,910,000, and $49,603,000, respectively. A significant litigation settlement of $23,400,000 was also recorded during the period, impacting the financial results.

Overall, American Realty Investors, Inc. faced challenges in profitability and revenue generation while continuing to invest in development projects and manage its asset portfolio.