Transcontinental Realty Investors, Inc. reported a net income of $6.7 million for the fiscal year ending December 31, 2024, a decrease from $7.3 million in the previous year. The company's total revenue for 2024 was $47.1 million, down from $49.9 million in 2023. The decline in revenue was primarily attributed to a decrease in rental income from both multifamily and commercial properties, with multifamily revenue falling to $34.1 million from $35.0 million and commercial revenue decreasing to $13.0 million from $14.9 million. Operating expenses also saw a reduction, totaling $52.8 million compared to $59.9 million in 2023, largely due to lower general and administrative costs.
In terms of strategic developments, Transcontinental Realty completed the sale of 30 single-family lots from its Windmill Farms holdings for $1.4 million, resulting in a gain of $1.1 million. The company also engaged in significant financing activities, including a $27.5 million construction loan for the development of a new multifamily property in Dallas, Texas, expected to be completed in 2026. Additionally, the company amended its cash management agreement with Pillar Income Asset Management, changing the interest rate on related party receivables to the Secured Overnight Financing Rate (SOFR).
Operationally, Transcontinental Realty's property portfolio as of December 31, 2024, included 14 multifamily properties with 2,328 units and four commercial properties totaling approximately 1,060,236 rentable square feet. The company is actively developing four multifamily properties, comprising 906 units. The total real estate investment increased to $557.4 million from $501.6 million in 2023, reflecting ongoing development and acquisition efforts. The company reported a total indebtedness of approximately $181.9 million, with a significant portion of its debt insured by the U.S. Department of Housing and Urban Development (HUD).
Looking ahead, Transcontinental Realty expressed cautious optimism regarding its financial outlook, emphasizing its strategy to maximize long-term value through the acquisition and development of income-producing properties in the Southern United States. The company plans to continue leveraging its existing portfolio while exploring opportunities for further growth through strategic acquisitions and developments. However, management acknowledged potential risks, including market fluctuations and competition, which could impact future performance.
About TRANSCONTINENTAL REALTY INVESTORS INC
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