DALLAS, Aug. 13, 2001 (PRIMEZONE) -- Transcontinental Realty Investors, Inc. (NYSE:TCI) announced Monday that increased rents and larger gains on real estate sales resulted in 2001 second quarter and six months net incomes of $14.32 million and $14.63 million, or $1.65 and $1.68 per share, on revenues of $35.72 million and $69.93 million, as compared to net incomes of $5.8 million and $10.1 million, or $.67 and $1.17 per share, on revenues of $34.89 million and $69.39 million for the same periods in 2000.
Net income for the second quarter and six months of 2001 included:
-- Gains on the sale of real estate that increased to $22.27 million
and $28.75 million, from $8.86 million and $17.81 million in the
comparable periods in 2000.
-- Increased rents due to increased rental and occupancy rates at
the commercial properties, mainly office buildings, and the
company's apartments.
-- Increased interest income due to loans funded in 2000 and 2001.
Total expenses increased for second quarter and six months 2001 to $43.65 million and $84.04 million, as compared to $37.98 million and $77.07 million for the same periods in 2000. Total expenses included:
-- Operations expense of $20.2 million and $40.4 million, up from
$18.3 million and $36.8 million in 2000, due to increased hotel
operating expenses and higher office building utility and
maintenance costs.
-- Interest expense of $10.8 million and $22 million, down from
$11.9 million and $23.2 million in 2000, due to sales of property
subject to debt, loan payoffs, principal paydowns and lower
interest rates.
-- Depreciation of $5 million and $10 million, up from $4.2 million
and $9.5 million in 2000, due to capital improvements in the
company's office buildings.
-- Net income fees, advisory fees, and incentive fees up, due to
increases in net income, assets and property sales.
-- General and administrative expenses of $3.5 million and $5.9
million, up from $1.7 million and $4.4 million in 2000, due to
increased legal and other professional fees.
Transcontinental Realty Investors, Inc., a Dallas-based real estate investment company, invests in real estate through direct equity ownership and partnerships nationwide.
FINANCIAL HIGHLIGHTS
(dollars in thousands, except share and per share data)
Three months ended Six months ended
June 30, June 30,
2001 2000 2001 2000
Income from
rents $ 36,074 $ 34,605 $ 71,041 $ 68,691
Expense from
operations 20,194 18,345 40,441 36,763
Operating income 15,880 16,260 30,600 31,928
Other income
(loss) $ (354) $ (289) $ (1,108) $ 700
Other expense 23,460 19,630 43,594 40,304
Gain on sale
of real estate 22,265 8,856 28,749 17,807
(1,549) (11,063) (15,953) (21,797)
Net Income $ 14,331 $ 5,775 $ 14,647 $ 10,131
Preferred
dividend
requirement (8) (7) (15) (14)
Net income
applicable to
Common shares $ 14,323 $ 5,768 $ 14,632 $ 10,117
Earnings Per Share
Net income $ 1.65 $ .67 $ 1.68 $ 1.17
Weighted average
common shares
used to compute
earnings per share 8,686,091 8,629,504 8,686,217 8,628,496