DALLAS, March 30, 2001 (PRIMEZONE) -- Transcontinental Realty Investors, Inc. (NYSE:TCI) Friday reported increased income resulting from acquired properties, higher rent and occupancy rates at the residential and commercial properties and large gains on the sale of real estate produced net income of $29.8 million, or $3.45 per share, on revenue of $141.2 million, as compared to 1999 net income of $30.2 million, or $7.05 per share, on revenue of $82.6 million.
Earnings per share amounts were computed on 8.6 million common shares in 2000 compared to 4.3 million common shares in 1999.
Fourth quarter 2000 net income was $12.8 million, or $1.48 per share, on revenue of $36 million, compared to fourth quarter 1999 net income of $17.2 million, or $3.70 per share, on revenue of $24.6 million.
Rental income increased to $139.4 million in 2000, from $82 million in 1999. The increase was due to rents from newly constructed apartments, rents from income producing property acquired in 2000 and 1999 and from properties acquired through merger late in fourth quarter 1999, as well as higher rental and occupancy rates at TCI's apartments, office buildings and one warehouse. The increase was partially offset by a $10.6 million decrease in rents due to property sales in 2000 and 1999.
Interest and other income increased to $2.4 million in 2000, from $453,000 in 1999 due to the funding of notes receivable in 2000. Equity losses from investees were $556,000 in 2000 compared to income of $102,000 in 1999, primarily due to increased operating expenses of an equity investee.
Gains on sales of real estate of $50.6 million were recognized in 2000, compared to $40.5 million in 1999. The gain resulted from sales of 14 apartments, an office building, a warehouse, a hotel and three sales of undeveloped land, comprising eight parcels, totaling 284.6 acres.
Property operating expense increased to $78.1 million in 2000, from $44.5 million in 1999, due to the properties acquired in 2000 and 1999 through purchases and the merger with Continental Mortgage. The increase was partially offset by a decrease of $10.6 million due to properties sold in 2000 and 1999.
Interest expense increased to $48 million in 2000, from $27.7 million in 1999, due to properties purchased or obtained through merger, and financings and refinancings during 2000 and 1999. The increases were partially offset by a $3.3 million decrease due to property sales and mortgages paid off in 2000 and 1999.
Depreciation expense increased to $19.7 million in 2000 from $11.7 million in 1999 due to 2000-1999 property purchases, acquisitions through merger and property additions and tenant improvements. The increase was partially offset by a $1.7 million decrease due to properties sold in 2000 and 1999.
Advisory and net income fees increased to $7.7 million in 2000 from $5.7 million in 1999 due to increased net income and gross assets, the basis for the fee. The advisory fee increased partially due to the merger with Continental Mortgage.
General and administrative expenses increased to $8.5 million in 2000 from $3.3 million in 1999, primarily due to legal fees incurred on litigation-related costs, taxes and increased advisory cost reimbursements.
Transcontinental Realty Investors, Inc. is a real estate investment company based in Dallas that owns and operates commercial and residential properties nationwide. For more information on TCI, go to the company Web site at www.transconrealty-invest.com .
FINANCIAL HIGHLIGHTS
(in thousands, except share and per share data)
For the year ended For the quarter ended
Dec. 31, Dec. 31,
2000 1999 2000 1999
Income from
rents $ 139,357 $ 82,039 $ 35,636 $ 24,428
Expense
from
operations 78,061 44,497 21,472 14,343
Operating
income 61,296 37,542 14,164 10,085
Other
income 1,814 555 363 160
Other
expense 83,878 48,395 22,755 15,496
Gain on
sale of
real estate 50,550 40,517 20,988 22,462
Net
income $ 29,782 $ 30,219 $ 12,760 $ 17,211
Preferred
dividend
requirement (22) (30) --- (7)
Net income
applicable
to Common
shares $ 29,760 $ 30,189 $ 12,760 $ 17,204
Earnings per
share $ 3.45 $ 7.05 $ 1.48 $ 3.70
Weighted average
Common shares
used to compute
earnings per
share 8,631,621 4,283,574 8,621,622 4,649,730
-0-
Contact: Transcontinental Realty Investors, Inc., Dallas
Phyllis Wolper, Investor Relations
(800) 400-6407, (469) 522-4245
investor.relations@bcminc.com