Company Website:
http://www.americanrealtyinvest.com/
DALLAS -- (Business Wire)
American Realty Investors, Inc. (NYSE:ARL) is reporting its results of operations for the three months ended September 30, 2026. For the three months ended September 30, 2026, we reported net loss attributable to common shares of $0.7 million or $0.04 per share, compared to a net income attributable to common shares of $0.1 million or $0.01 per share for the same period in 2025.
Financial Highlights
-
Total occupancy was 82% at September 30, 2026, which includes 95% at our multifamily properties and 57% at our commercial properties.
-
On October 2, 2026, we entered into an agreement to purchase Bellwether Ridge, a 150 unit multifamily property in DeSoto, Texas; Parc at Ingleside, a 192 unit multifamily property in Ingleside, Texas; Parc at Opelika, a 168 unit multifamily property in Opelika, Alabama; and Parc at Windmill Farms, a 272 unit multifamily property in Forney, Texas in exchange for the settlement of our four notes receivable and a cash payment of $12.0 million. We are currently working with lenders to assume the existing mortgage notes payable on the properties.
-
On October 28, 2026, we exercised our option to extend the maturity of our loan on Alera at Hunters Glen to November 5, 2027.
-
During the three months ended September 30, 2026, we sold 21 lots from our holdings in Windmill Farms for $1.0 million, resulting in a gain on sale of $0.8 million.
Financial Results
Revenues increased $1.1 million from $12.8 million for the three months ended September 30, 2025 to $13.9 million for the three months ended September 30, 2026. The increase in revenue is primarily due to an increase of $1.5 million from our multifamily properties offset in part by a decrease of $0.4 million from our commercial properties. The increase in revenue from our multifamily properties is due to the lease-up of our Development Properties.
Net operating loss increased $1.0 million from $1.6 million for the three months ended September 30, 2025 to $2.6 million for the three months ended September 30, 2026. Our increase in net operating loss was primarily due to a $1.4 million increase in operating expenses from the lease-up properties for the three months ended September 30, 2026.
Net (loss) income attributable to common shares changed approximately $0.8 million from net income of $0.1 million for the three months ended September 30, 2025 to a net loss of $0.7 million for the three months ended September 30, 2026. The decrease in net income is primarily attributed to a $1.0 million increase in net operating loss and a $1.2 million decrease in interest income, net offset in part by a $1.2 million decrease in tax provision.
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
September 30, |
| Nine Months Ended
September 30, |
| 2026 |
| 2025 |
| 2026 |
| 2025 |
| | | | | | |
| Revenues: | | | | | | |
| Rental revenues |
$
|
13,288
|
|
$
|
11,919
|
|
$
|
37,180
|
|
$
|
34,856
|
| Other income |
|
618
|
|
|
916
|
|
|
1,933
|
|
|
2,147
|
| Total revenue |
|
13,906
|
|
|
12,835
|
|
|
39,113
|
|
|
37,003
|
| Expenses: | | | | | |
| Property operating expenses |
|
8,927
|
|
|
7,550
|
|
|
24,436
|
|
|
20,062
|
| Depreciation and amortization |
|
3,726
|
|
|
2,936
|
|
|
11,053
|
|
|
8,881
|
| General and administrative |
|
1,617
|
|
|
1,719
|
|
|
4,601
|
|
|
4,745
|
| Advisory fee to related party |
|
2,206
|
|
|
2,203
|
|
|
6,333
|
|
|
6,714
|
| Total operating expenses |
|
16,476
|
|
|
14,408
|
|
|
46,423
|
|
|
40,402
|
| Net operating loss |
|
(2,570)
| |
|
(1,573)
| |
|
(7,310)
| |
|
(3,399)
|
| Interest income |
|
3,548
|
|
|
4,099
|
|
|
10,182
|
|
|
11,462
|
| Interest expense |
|
(2,354)
| |
|
(1,691)
| |
|
(8,125)
| |
|
(5,288)
|
| Equity in income from unconsolidated joint ventures |
|
-
|
|
|
116
|
|
|
412
|
|
|
(24)
|
| Gain on real estate transactions |
|
822
|
|
|
755
|
|
|
2,021
|
|
|
5,593
|
| Income tax (provision) benefit |
|
(177)
| |
|
(1,386)
| |
|
328
|
|
|
(1,197)
|
| Net (loss) income |
|
(731)
| |
|
320
|
|
|
(2,492)
| |
|
7,147
|
| Net loss (income) attributable to noncontrolling interest |
|
29
|
|
|
(191)
| |
|
229
|
|
|
(1,226)
|
| Net (loss) income attributable to the common shares |
$
|
(702)
| |
$
|
129
|
|
$
|
(2,263)
| |
$
|
5,921
|
| Earnings per share | | | | | |
| Basic and diluted |
$
|
(0.04)
| |
$
|
0.01
|
|
$
|
(0.14)
| |
$
|
0.37
|
| Weighted average common shares used in computing earnings per share | | | | | |
| Basic and diluted |
|
16,152,043
|
|
|
16,152,043
|
|
|
16,152,043
|
|
|
16,152,043
|
| | | | | |
View source version on businesswire.com: https://www.businesswire.com/news/home/20261112792251/en/
Contacts:
American Realty Investors, Inc.
Investor Relations
Erik Johnson (469) 522-4200
investor.relations@americanrealtyinvest.com
Source: American Realty Investors, Inc.
© 2026 Canjex Publishing Ltd. All rights reserved.