DALLAS, March 20, 2002 (PRIMEZONE) -- Transcontinental Realty Investors, Inc. (NYSE:TCI) Wednesday announced 2001 fourth quarter net loss of $6.10 million and 12 months net income of $19.64 million, or a loss of $.74 per share and income of $2.28 per share, on revenues of $31.45 million and $134.91 million, compared to net incomes of $12.76 million and $29.76 million, or $1.48 per share and $3.45 per share, on revenues of $35.81 million and $139.66 million for the same periods in 2000.
Net income for the fourth quarter and 12 months of 2001 included:
* Gains on the sale of real estate decreased to $6.74 million and $54.27 million, from $20.99 million and $50.55 million in the comparable periods of 2000.
* Rents decreased due to property sales in 2000 and 2001. This was partially offset by increased rental and occupancy rates at the commercial properties and rents generated by properties purchased in 2000 and 2001. Operations revenue from the hotels, increased by $4.4 million in 2001.
* Interest income increased due to loans funded in 2000 and 2001.
* Loss from equity investees increased to $1.42 million and $5.95 million, from $79,000 and $556,000 in the 2000 periods.
Total expenses increased in the fourth quarter and 12 months 2001 to $43.39 million and $166.37 million, as compared to $44.40 million and $162.24 million for the same periods in 2000. Expenses included:
* Operations expense that decreased in the fourth quarter and increased in the 12 months 2001 to $20.48 million and $80.56 million, from $21.51 million and $78.17 million in 2000, due to property sales, partially offset by properties purchased in 2000 and 2001, as well as increases in utilities, maintenance costs, leasing costs, and taxes. Hotel operation expenses increased to $1.1 million and $4.6 million.
* Interest expense decreased to $9.68 million and $41.06 million, from $12.71 million and $48.11 million in 2000, due to sales of property subject to debt, loan payoffs, refinancings, principal paydowns and lower variable interest rates.
* Incentive fees increased due to increased property sales, the basis for such fees.
* General and administrative expenses increased to $3.88 million and $11.41 million, from $2.79 million and $8.51 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)
Year ended Three months ended
Dec. 31, Dec. 31,
2001 2000 2001 2000
Income from rents $ 134,911 $ 139,662 $ 31,446 $ 35,807
Expense from
operations 80,562 78,170 20,478 21,510
Operating income 54,349 61,492 10,968 14,297
Other income $ (3,002) $ 1,814 $ (747) $ 363
Other expense 85,806 84,074 22,914 22,888
Gain on sale
of real estate 54,270 50,550 6,741 20,988
(34,538) (31,710) (16,920) (1,537)
Net Income $ 19,811 $ 29,782 $ (5,952) $ 12,760
Preferred
dividend
requirement (172) (22) (150) --
Net income
applicable to
common shares $ 19,639 $ 29,760 $ (6,102) $ 12,760
Earnings Per Share
Net Income
Basic $ 2.32 $ 3.45 $ (.76) $ 1.48
Diluted $ 2.28 $ 3.45 $ (.74) $ 1.48
Weighted average
common shares
used to compute
earnings per
share
Basic 8,478,377 8,631,621 8,042,610 8,633,436
Diluted 8,615,465 8,637,290 8,316,685 8,658,436