Transcontinental Realty Investors reports net loss as expenses rise
The real estate firm recorded a net loss of $1.1 million for the quarter ended June 30, 2026.
Transcontinental Realty Investors (TCI), a real estate investment company, reported a net loss of $1.1 million for the quarter ended June 30, 2026. The result follows a profit of $0.2 million in the same period a year ago.
The company's financial performance was weighed down by a widening net operating loss, which reached $2.3 million compared to $0.8 million in the prior-year quarter. This decline was primarily driven by a $1.6 million increase in operating expenses related to lease-up properties.
Revenue rose $0.7 million year-over-year to $12.9 million. The growth was supported by $0.5 million in contributions from multifamily properties and $0.2 million from commercial properties.
Occupancy rates for development properties showed significant gains during the quarter. Occupancy at Alera, Bandera Ridge, and Merano rose to 86%, 85%, and 77% respectively as of June 30, 2026, up from 47%, 44%, and 42% as of March 31, 2026. However, total stabilized occupancy remained flat at 81%, unchanged from the previous two quarters.
Interest expenses for the quarter were $2.77 million. This figure represents an increase from the $1.74 million reported in the prior-year quarter, though it was a decrease from the $2.93 million recorded in the first quarter of 2026. A $1.9 million decrease in interest income further contributed to the quarterly net loss.
Transcontinental Realty Investors continued the sale of Windmill Farms lots, recording a $0.8 million gain from the sale of 21 lots. This matched the $0.8 million gain from 21 lots sold in the preceding quarter.