DALLAS, Nov. 14, 2000 (PRIMEZONE) -- Transcontinental Realty Investors, Inc. (NYSE:TCI) announced today that increased property operations and interest income resulted in improved 2000 third quarter and nine month net incomes of $6.9 million and $17.0 million, or $.80 and $1.97 per share, on revenues of $35.9 million and $105.2 million, as compared to net incomes of $5.1 million and $13.0 million or $1.32 and $3.35 per share, on revenues of $20.3 million and $60.3 million for same periods in 1999.
Operating income rose to $15.2 million and $47.1 million in the third quarter and nine months of 2000, compared to $8.8 million and $27.5 million for the same periods in 1999 due to increased rents. Rental income growth resulted from the acquisition of 16 income-producing properties in 1999-2000 and properties gained through merger with Continental Mortgage and Equity Trust, as well as additional rents from newly constructed apartments. The increased income was partially offset by 18 property sales in 1999 and 2000.
Interest and other income in the third quarter and nine months of 2000 increased to $936,000 and $1.9 million from $174,000 and $297,000 in 1999, due to gaining two mortgage notes receivable in the CMET merger, as well as TCI funding two loans in third quarter 2000 and providing purchase money financing for two property sales in 1999. The 2000 increase was partially offset by equity in losses of equity investees of $185,000 and $477,000 during the periods, as compared to the equity in income of equity investees of $1.6 million and $2.1 million reported in 1999.
The third quarter and nine months 2000 gains on sales of real estate of $11.8 million and $29.6 million compared favorably to the $5.9 million and $16.0 million reported in 1999. Gains in 2000 were realized from sales of eight apartments, an office building, a warehouse, two parcels of land, one hotel, a previously deferred gain on a land parcel sold in 1999 and TCI's share of a gain from an equity affiliate.
Total expenses for third quarter and nine month 2000 were $ 40.7 million and $117.7 million, as compared to $21.0 million and $63.1 million for the same periods in 1999, due to properties purchased, acquired by merger, or new apartment construction, partially offset by sales of 18 properties in 1999 and 2000. For the third quarter and nine months ended Sept. 30, 2000:
- Operations expenses were $19.9 million and $56.6 million, up from
$9.7 million and $30.2 million in the same periods in 1999.
- Interest expenses were $12.2 million and $35.3 million, up from
$6.3 million and $18.7 million in 1999, due to debt incurred or
assumed on acquisitions, refinancings where debt balances were
increased and the debt of the merger properties.
- Depreciation rose to $5.4 million and $14.8 million, from
$2.9 million and $8.7 million in 1999.
- Advisory fees increased to $567,000 and $1.3 million, from
$396,000 and $1.1 million in 1999, due to increases in gross
assets. Net income fees also increased over 1999 levels.
- General and administrative expenses were $1.3 million and
$5.7 million, up from $962,000 and $2.2 million in 1999, mostly 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. For more information on TCI, go to the web site at www.transconrealty-invest.com .
FINANCIAL HIGHLIGHTS
(dollars in thousands, except share and per share data)
Three months ended Nine months ended
Sept. 30, Sept. 30,
2000 1999 2000 1999
------ ------ ------ ------
Income from rents $ 35,121 $ 18,445 $103,722 $ 57,628
Expense from operations 19,872 9,676 56,589 30,154
------ ------ ------ ------
Operating income 15,249 8,769 47,133 27,474
Other income $ 751 $ 1,805 $ 1,455 $ 2,432
Other expense 20,864 11,303 61,124 32,899
Gain on sale of
real estate 11,755 5,850 29,562 16,001
------ ------ ------ ------
(8,358) (3,648) (30,107) (14,466)
Net income $ 6,891 $ 5,121 $ 17,022 $ 13,008
Preferred dividend
requirement (7) (9) (22) (23)
------ ------ ------ ------
Net income applicable to
Common shares $ 6,884 $ 5,112 $ 17,000 $ 12,985
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Earnings Per Share
Net income $ .80 $ 1.32 $ 1.97 $ 3.35
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Weighted average common
shares used to compute
earnings per share 8,633,211 3,880,617 8,630,029 3,879,954