American Realty Investors Swings to a $0.04 a Share Loss

The Tip Desk · November 12, 2026 · 3 min read

Third-quarter revenue reached $13.9 million as multifamily lease-up lifted the top line and occupancy ticked to 82%.

American Realty Investors, Inc. (ARL) reported a net loss attributable to common shares of $0.7 million, or $0.04 a share, for the three months ended September 30, 2026, compared with net income of $0.1 million, or $0.01 a share, a year earlier.

The Dallas-based real estate investment company said total revenue rose $1.1 million from $12.8 million a year earlier to $13.9 million. The year-over-year increase was larger than the $0.7 million year-over-year rise in the second quarter.

The company attributed the year-over-year revenue increase primarily to a $1.5 million rise at multifamily properties, which it said reflected lease-up of its Development Properties, offset in part by a $0.4 million decrease at commercial properties. That mix flipped from the second quarter, when multifamily had contributed a $0.5 million year-over-year increase and commercial a $0.2 million increase.

Net operating loss widened to $2.6 million from $1.6 million a year earlier. The company said the increase was primarily due to a $1.4 million rise in operating expenses from the lease-up properties. Property operating expenses were $8.9 million in the three months ended September 30, 2026. Depreciation and amortization were $3.7 million.

The company said the decline in net income versus a year earlier was primarily attributed to the $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. Interest income was $3.5 million and interest expense was $2.4 million in the quarter.

Total occupancy was 82% at September 30, 2026, including 95% at multifamily properties and 57% at commercial properties, versus 81% total occupancy at June 30, 2026.

During the quarter the company sold 21 lots from its holdings in Windmill Farms for $1.0 million, resulting in a gain on sale of $0.8 million. Gain on real estate transactions was $0.8 million in the three months ended September 30, 2026.

On October 2, 2026, the company 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 four notes receivable and a cash payment of $12.0 million. It said it is working with lenders to assume the existing mortgage notes payable on the properties.

On October 28, 2026, the company exercised its option to extend the maturity of its loan on Alera at Hunters Glen to November 5, 2027.

American Realty Investors holds a diverse portfolio of equity real estate across the United States, including office buildings, apartments, shopping centers, and developed and undeveloped land. Its primary asset and source of operating results is its investment in Transcontinental Realty Investors, Inc. (TCI).