DALLAS, May 15, 2001 (PRIMEZONE) -- Transcontinental Realty Investors, Inc. (NYSE:TCI) today announced first quarter 2001 net income decreased to $316,000, or $.04 per share, on revenue of $35.6 million, from a net income of $4.4 million, or $.50 per share, on revenue of $34.4 million for the first quarter of 2000. First quarter 2001 results included a $6.5 million gain on the sale of real estate, as compared to a $9 million gain in first quarter 2000.
In the first three months of 2001:
**Rents increased to $35 million, from $34.1 million in 2000, due to
14 properties purchased in 2000, higher rental and occupancy
rates in the office buildings and apartments, and improved hotel
occupancy. The increase was partially offset by the sale of 17
properties in 2001 and 2000.
**Interest and other income increased to $613,000, from $404,000,
primarily due to loans funded in fourth quarter 2000 and first
quarter 2001.
**Equity in investees decreased to a loss of $1.4 million, from
income of $7,000 in 2000.
Expenses for first quarter 2001 increased to $40.4 million, from $39.1 million in 2000, primarily due to higher property operations expense from property purchased in 2000, higher hotel administrative costs and increases in recurring property placements at the apartments. In the first three months of 2001:
**Property operations expense increased to
$20.2 million, from $18.4 million in 2000.
**Interest expense approximated that of 2000.
**Depreciation decreased to $5.1 million,from $5.3 million in 2000,
due to the sale of properties.
**Advisory fee increased to $1.5
million, from $1.2 million in 2000, but net income fee decreased
to $26,000, from $352,000 in 2000.
**General and administrative expense
decreased to $2.4 million, from $2.7 million in 2000, due to
lower franchise taxes.
FINANCIAL HIGHLIGHTS
(dollars in thousands, except share and per share data)
Three months ended March 31,
2001 2000
Income from rents $ 34,968 $ 34,086
Expense from operations 20,247 18,419
Operating income 14,721 15,667
Other income (754) 411
Other expense 20,135 20,673
Gain on sale of
real estate 6,484 8,951
14,405 11,311
Net income $ 316 $ 4,356
Preferred dividend requirement (7) (7)
Net income applicable to
Common shares $ 309 $ 4,349
Earnings Per Share
Net income $ .04 $ .50
Weighted average common
share used to compute
earnings per share 8,686,346 8,627,545
Transcontinental Realty Investors, Inc., a Dallas-based real estate investment company, invests in real estate through direct equity ownership and partnerships nationwide.