American Realty Investors Reports Third Quarter, Nine Month Profit


DALLAS, Nov. 14, 2000 (PRIMEZONE) -- American Realty Investors, Inc. (NYSE:ARL) announced Tuesday that the company posted third quarter and nine month net incomes of $8.2 million and $1.6 million, or $.76 and $0.0 (zero) per share, on revenues of $49.8 million and $187.9 million, respectively, as compared to net incomes of $10.1 million and $1.9 million, or $.88 and $.02 per share, on revenues of $94.1 million and $224.3 million, respectively, in the comparable periods of 1999.

Details of income and sales for the periods ended Sept. 30, 2000, are as follows:


 - Rental incomes decreased to $34.7 million and $105.2 million, from
   $40.3 million and $122.1 million in the same periods in 1999, due
   to 1999-2000 sales of income producing property.  The decline was
   partially offset by higher commercial property and hotel rents.

 - Interest and other income decreased to $889,000 and $3.7 million,
   from $1.6 million and $4.3 million for the same periods in 1999,
   due to the collection of mortgage notes receivables and their
   related maturity in 2000.

 - Pizza parlor sales increased to $8.1 million and $24.4 million,
   from $7.8 million and $22.8 million, as a result of aggressive
   marketing.  Cost of sales increased to $6.8 million and 
   $20.1 million from $6.7 million and $19.5 million in 1999.  Gross
   margins rose to $1.3 million and $4.3 million, from $1.1 million
   and $3.2 million in 1999.

 - Land sales increased to $89.3 million and $108.2 million, from
   $17.4 million and $62.2 million in 1999.  Costs of land sales were 
   $65.7 million and $81.1 million, up from $11.4 million and $44.7 
   million in 1999. 

Total expenses (excluding costs of sales for pizza and land) decreased to $58.4 million and $193.2 million, from $83.4 million and $220.4 million for the comparable periods in 1999. Details on expenses for the periods in 2000 are below:


 - Property operation expenses decreased to $23.8 million and
   $70.5 million, from $27.4 million and $80.8 million in the same
   periods in 1999, due to sales of income-producing property in 1999
   and 2000.  The decrease was partially offset by increases in
   commercial property and hotel expenses.

 - Interest expenses decreased to $19.6 million and $60.2 million,
   from $23 million and $68.5 million in 1999, due to sales of income
   producing property and land.

 - Depreciation, general and administrative expenses and advisory fees
   approximated those of the 1999 periods.

Total gains on sales of real estate fell to $27.1 million and $78.8 million, from $48.6 million and $87.3 million in the same periods in 1999. Gains for the periods ended Sept. 30, 2000, are detailed below:


 - A third quarter sale of one apartment and nine month sales of seven
   apartments, one office building and a shopping center produced
   gains of $3.4 million and $51.7 million, a decrease from the $42.6
   million and $69.9 million gains for the same periods in 1999.

 -  Sales of 17 land tracts in the third quarter and 31 land tracts in
    the nine months accounted for gains of $23.6 million and
    $27.1 million, an increase over the $6 million and $17.4 million
    gains in 1999.

Equity in income of investees for the third quarter and nine months of 2000 increased to $2.6 million and decreased to $2.9 million, from $1.9 million and $5.3 million in 1999. The third quarter increase was attributable to gains associated with property sales. The nine month decrease was attributable to losses associated with the sale of Transcontinental Realty Investors, Inc. (NYSE:TCI) and Income Opportunity Realty Investors, Inc. (AMEX:IOT) stock.

Minority interest expense decreased to $5 million and $32.2 million for the third quarter and nine months 2000, from $23.2 million and $38.6 million in the comparable 1999 periods. The decrease is attributable to the decreased earnings of National Realty, L.P. in the first seven months of 2000 (ARI acquired the minority interest in NLP upon the business combination with American Realty Trust, Inc., on August 2, 2000).

American Realty Investors, Inc., a Dallas-based real estate investment company, holds a diverse portfolio of equity real estate located across the U.S., including office buildings, apartments, hotels, shopping centers, and developed and undeveloped land. For more information on ARI, go to the company's web site at www.amrealtytrust.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 $    34,708  $    40,260  $   105,211  $   122,125
 Expense from
  operations            23,776       27,377       70,451       80,778
   Operating income     10,932       12,883       34,760       41,347

 Land sales        $    89,285  $    17,434  $   108,238  $    62,158
 Cost of sales          65,674       11,396       81,116       44,741
  Gain on land sales    23,611        6,038       27,122       17,417

 Pizza sales       $     8,124  $     7,800  $    24,388  $    22,753
 Cost of sales           6,798        6,711       20,138       19,509
  Gross margin           1,326        1,089        4,250        3,244

 Income from
  operations       $    35,869  $    20,010  $    66,132  $    62,008

 Other income      $     3,466        3,505        6,587        9,559
 Other expense          32,929       56,011      121,132      139,579
 Gain on sale of
  real estate            3,474       42,552       51,706       69,890

 Income before
  income taxes           9,880       10,056        3,293        1,878
 Provision for
  income taxes          (1,652)        --         (1,652)        --

 Net income        $     8,228  $    10,056  $     1,641  $     1,878
 Preferred
  dividend
  requirement             (590)        (570)      (1,661)      (1,704)

 Net income (loss)
  applicable to
  Common shares    $     7,638  $     9,486  $       (20) $       174

 Earnings Per
  Share
   Net income
    (loss)         $       .76  $       .88  $      --    $       .02

 Weighted average
  common shares
  used to compute
  earnings per
  share             10,013,087   10,759,309   10,496,364   10,753,600


            

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