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

For the three months ended September 30, 2024, total revenue decreased to $11,607,000 from $12,525,000 in the same period of 2023. Rental revenues also saw a decline, falling to $11,074,000 from $11,838,000. The company reported a net income of $1,910,000, a significant drop from $4,762,000 in the prior year, resulting in earnings per share of $0.20, down from $0.52. For the nine-month period, net income decreased to $6,363,000 from $9,353,000, with earnings per share dropping from $0.98 to $0.67.

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

Total operating expenses for the three months ended September 30, 2024, were reduced to $13,276,000 from $14,300,000, contributing to a net operating loss of $(1,669,000), an improvement from $(1,775,000) in the prior year. The decrease in general, administrative, and advisory expenses was attributed to lower legal and auditing costs associated with previously repaid bonds.

On the balance sheet, total assets increased to $1,056,589,000 as of September 30, 2024, up from $1,043,044,000 at the end of 2023. Real estate assets also rose to $527,562,000 from $501,586,000. Total liabilities increased to $204,074,000 from $196,090,000, while total shareholders' equity grew slightly to $832,170,000 from $826,007,000.

Strategically, the company is advancing several development projects, including the Alera multifamily project in Florida, with total costs expected to reach approximately $55,330,000, and the Merano and Bandera Ridge projects in Texas, with respective costs of $51,910,000 and $49,603,000. As of September 30, 2024, total development costs incurred for these projects were $31,878,000, $15,588,000, and $11,087,000, respectively.

Overall, while Transcontinental Realty Investors, Inc. faced challenges in revenue and net income, it continues to invest in its multifamily segment and expand its real estate portfolio.