Transcontinental Realty Investors, Inc. (NYSE:TCI) is reporting its results of operations for the three months ended June 30, 2026. For the three months ended June 30, 2026, we reported net loss attributable to common shares of $1.1 million or $0.13 per share, compared to net income $0.2 million or $0.02 per share for the same period in 2025.

Financial Highlights

Total occupancy for stabilized properties was 81% at June 30, 2026, which includes 93% at our multifamily properties and 58% at our commercial properties.
Occupancy for our Alera, Bandera Ridge and Merano (collectively, our "Development Properties") at June 30, 2026 was 86%, 85% and 77%, respectively.
During the three months ended June 30, 2026, we sold an additional 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 $0.7 million from $12.2 million for the three months ended June 30, 2025 to $12.9 million for the three months ended June 30, 2026. The increase in revenue is primarily due to an increase of $0.5 million from our multifamily properties and $0.2 million from our commercial properties. The increase in revenue from our multifamily properties is due to the lease-up of our Development Properties and the increase from our commercial properties is primarily due to an increase in occupancy at Stanford Center.

Net operating loss increased approximately $1.5 million from $0.8 million for the three months ended June 30, 2025 to $2.3 million for the three months ended June 30, 2026. Our increase in net operating loss was primarily due to a $1.6 million increase in operating expenses from the lease-up properties for the three months ended June 30, 2026.

Net (loss) income attributable to the Company changed approximately $1.3 million from net income of $0.2 million for the three months ended June 30, 2025 to a net loss of $1.1 million for the three months ended June 30, 2026. The decrease in net income is primarily attributed to a $1.5 million increase in net operating loss and a $1.9 million decrease in interest income, net offset in part by a $2.2 million decrease in tax provision.

About Transcontinental Realty Investors, Inc.

Transcontinental 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. For more information, visit the Company’s website at www.transconrealty-invest.com.


TRANSCONTINENTAL 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,
		2026			2025			2026			2025

Revenues:
Rental revenues	$	12,236		$	11,510		$	23,892		$	22,937
Other income		630			650			1,315			1,231
Total revenue		12,866			12,160			25,207			24,168
Expenses:
Property operating expenses		8,176			6,535			15,509			12,512
Depreciation and amortization		3,697			3,062			7,327			5,945
General and administrative		1,351			1,383			2,678			2,735
Advisory fee to related party		1,986			2,005			3,999			4,436
Total operating expenses		15,210			12,985			29,513			25,628
Net operating loss		(2,344	)		(825	)		(4,306	)		(1,460	)
Interest income		3,155			3,982			7,559			8,610
Interest expense		(2,772	)		(1,738	)		(5,706	)		(3,519	)
Gain on sale or write-down of assets, net		814			947			1,199			4,838
Income tax provision		127			(2,042	)		558			(3,364	)
Net (loss) income		(1,020	)		324			(696	)		5,105
Net income attributable to noncontrolling interest		(107	)		(155	)		(263	)		(318	)
Net (loss) income attributable to the Company	$	(1,127	)	$	169		$	(959	)	$	4,787
Earnings per share
Basic and diluted	$	(0.13	)	$	0.02		$	(0.11	)	$	0.55
Weighted average common shares used in computing earnings per share
Basic and diluted		8,639,316			8,639,316			8,639,316			8,639,316

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Transcontinental Realty Investors, Inc.

Investor Relations

Erik Johnson (469) 522-4200

investor.relations@transconrealty-invest.com