Check the appropriate box
below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following
provisions:
Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of
1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the
extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section
13(a) of the Exchange Act.
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf
by the undersigned, hereunto duly authorized.
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Dated: August 14, 2020
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TRANSCONTINENTAL REALTY INVESTORS, INC.
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By:
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/s/ Daniel J. Moos
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Daniel J. Moos
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President and
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Chief Executive Officer
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Exhibit "99.1"
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NEWS RELEASE
FOR IMMEDIATE RELEASE
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Contact:
Transcontinental Realty Investors, Inc.
Investor Relations
Daniel Moos (469) 522-4200
investor.relations@transconrealty-invest.com
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Transcontinental Realty
Investors, Inc. reports Earnings for Q2 2020
DALLAS
(August 14, 2020) - Transcontinental Realty Investors, Inc. (NYSE: TCI), is reporting its results of operations for the
quarter ended June 30, 2020. For the three months ended June 30, 2020, The Company reported a net loss applicable to common
shares of $4.2 million or $0.48 per diluted share, compared to a net loss applicable to common shares of $6.3 million or
$0.73 per diluted share for the same period in 2019.
COVID-19
The
Company continues to closely monitor the impact of the COVID-19 pandemic on all aspects of its business. COVID-19 did not have
a significant on the Company’s results of operations or cash flows during the three months ended June 30, 2020.
The Company collected approximately 97% of its second quarter rents, comprised
of approximately 95% from multi-family tenants and approximately 98% from office tenants.
The Company did not grant any abatements or significant deferments of rents.
Occupancy at its non-lease up properties remains stable at 87% at June
30, 2020 in comparison to 89% at June 30, 2019.
The Company continued to obtain positive leasing spreads for new leases
and renewals at it properties.
Ongoing development projects continued during the quarter unabated without
work stoppages. In addition, the Company is evaluating several new development projects.
The
future impact of COVID-19 on the Company’s business and financial activities will depend on future developments, which at
this stage are unpredictable considering the fluctuations of COVID-19 outbreaks and the resulting changes in the markets.
Financial
Results
Rental
and other property revenues were $11.9 million for the three months ended June 30, 2020 and 2019. For the quarter ended June 30,
2020, the Company generated revenues of $7.9 million and $4.0 million from its commercial and residential segments, respectively.
Property
operating expenses decreased to $5.8 million for the three months ended June 30, 2020 from $7.3 million for the same period in
2019. The decrease of $1.5 million in property operating expenses was primarily due to a reduction in property taxes and maintenance
costs.
General
and administrative expense decreased to $1.4 million for the three months ended June 30, 2020 from $2.2 million for the same period
in 2019. The decrease of $0.8 million in general and administrative expenses was primarily due to a reduction in professional
fees.
Interest
income decreased to $4.2 million for the three months ended June 30, 2020 from $4.9 million for the same period in 2019. The decrease
of $0.7 million in interest income was due to a decrease in notes receivable from related parties.
Other
income increased to $1.5 million for the three months ended June 30, 2020, compared to $0.7 million for the same period in 2019.
The increase in other income was primarily due to an increase in tax incentive finance proceeds.
Foreign
currency transaction was a loss of $5.6 million for the three months ended June 30, 2020 as compared to a loss of $2.3 million
for the same period in 2019. The increase is foreign currency loss was due to a decrease in the exchange rate from U.S. Dollars
to the Israel Shekel offset in part by a reduction in the bonds outstanding.
Loss
from unconsolidated investments was $0.7 million for the three months ended June 30, 2020, compared to a loss of $0.2 million
for the same period in 2019. The increase in loss from unconsolidated investments during the quarter was primarily due to an increase
in depreciation and amortization expense related to the VAA Joint Venture.
Gain
on land sales was $5.3 million for the three months ended June 30, 2020, compared to $2.1 million for the same period in 2019.
In the current period the Company sold approximately 25.9 acres of land for an aggregate sales price of $6.6 million which resulted
in a gain of $5.3 million. For the same period in 2019, the Company sold approximately 41.6 acres of land for an aggregate sales
price of $7.6 million which resulted in a gain of $2.1 million.
About
Transcontinental Realty Investors, Inc.
Transcontinental
Realty Investors, Inc., a Dallas-based real estate investment company, holds a diverse portfolio of equity real estate located
across the U.S., including apartments, office buildings, 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. For more information,
visit the Company’s website at www.transconrealty-invest.com.