Le Lézard
Classified in: Business
Subject: EARNINGS

American Realty Investors, Inc. reports Earnings for Quarter Ended June 30, 2022


American Realty Investors, Inc. (NYSE:ARL) is reporting its results of operations for the quarter ended June 30, 2022. For the three months ended June 30, 2022, we reported net income attributable to the Company of $16.3 million or $1.01 per diluted share, compared to net loss of $27.3 million or $1.69 per diluted share for the same period in 2021.

Financial Highlights

Financial Results

Rental revenues decreased $2.9 million from $10.2 million for the three months ended June 30, 2021 to $7.3 million for the three months ended June 30, 2022. The decrease in rental revenue is primarily due to the sale of 600 Las Colinas in 2021 and the sale of Toulon in the first quarter of 2022.

Net operating loss decreased $5.7 million from $8.8 million for three months ended June 30, 2021 to $3.0 million for the three months ended June 30, 2022. The decrease in net operating loss is primarily due to a reduction of legal costs related to the Clapper litigation and arbitration settlement in 2021 offset in part by net operating profit from the sale of 600 Las Colinas in 2021.

Net income attributable to the Company increased $43.6 million from a net loss $27.3 million for the three months ended June 30, 2021 to net income of $16.3 million for the three months ended June 30, 2022. The increase in net income is primarily attributed to the $29.6 million arbitration settlement of the Earn Out Obligation in 2021 and $18.9 million increase in gain on foreign currency transactions due to the improved exchange rate of the U.S. Dollar to the New Israeli Shekel.

About American Realty Investors, Inc.

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, shopping centers, and developed and undeveloped land. The Company invests in real estate through direct ownership, leases and partnerships and invests in mortgage loans on real estate. The Company also holds mortgage receivables. The Company's primary asset and source of its operating results is its investment in Transcontinental Realty Investors, Inc. (NYSE:TCI). For more information, visit the Company's website at www.americanrealtyinvest.com.

AMERICAN REALTY INVESTORS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
 
 

Three Months Ended June 30,

 

Six Months Ended June 30,

2022

 

2021

 

2022

 

2021

 
Revenues:
Rental revenues

$

7,259

 

$

10,194

 

$

14,740

 

$

20,555

 

Other income

 

870

 

 

909

 

 

1,176

 

 

2,376

 

Total revenue

 

8,129

 

 

11,103

 

 

15,916

 

 

22,931

 

Expenses:
Property operating expenses

 

3,812

 

 

5,058

 

 

7,840

 

 

10,890

 

Depreciation and amortization

 

2,298

 

 

3,211

 

 

4,647

 

 

6,538

 

General and administrative

 

2,194

 

 

5,866

 

 

4,914

 

 

9,101

 

Advisory fee to related party

 

2,858

 

 

5,739

 

 

6,043

 

 

8,175

 

Total operating expenses

 

11,162

 

 

19,874

 

 

23,444

 

 

34,704

 

Net operating loss

 

(3,033

)

 

(8,771

)

 

(7,528

)

 

(11,773

)

Interest Income

 

9,419

 

 

5,616

 

 

16,201

 

 

11,260

 

Interest expense

 

(6,389

)

 

(7,681

)

 

(12,556

)

 

(15,419

)

Gain (loss) on foreign currency transactions

 

14,132

 

 

(4,793

)

 

17,904

 

 

2,824

 

Loss on extinguishment of debt

 

-

 

 

-

 

 

(1,639

)

 

-

 

Equity in income from unconsolidated joint venture

 

2,048

 

 

4,572

 

 

7,242

 

 

7,908

 

Gain (loss) on sale or write-down of assets, net

 

3,893

 

 

(24,445

)

 

15,041

 

 

(7,047

)

Income tax provision

 

(40

)

 

1,841

 

 

(68

)

 

1,801

 

Net income (loss)

 

20,030

 

 

(33,661

)

 

34,597

 

 

(10,446

)

Net income (loss) attributable to noncontrolling interest

 

(3,718

)

 

6,333

 

 

(6,971

)

 

1,186

 

Net income (loss) attributable to the Company

$

16,312

 

$

(27,328

)

$

27,626

 

$

(9,260

)

Earnings per share
Basic and diluted

$

1.01

 

$

(1.69

)

$

1.71

 

$

(0.57

)

Weighted average common shares used in computing earnings per share
Basic and diluted

 

16,512,043

 

 

16,152,043

 

 

16,152,043

 

 

16,152,043

 

 

 


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News published on 12 august 2022 at 16:35 and distributed by: