Transcontinental Realty Investors Narrows Third-Quarter Loss

The Tip Desk · November 12, 2026 · 2 min read

The Dallas REIT posted a $0.1 million net loss, or $0.02 a share, as multifamily lease-up lifted revenue to $13.9 million.

Transcontinental Realty Investors, Inc. (TCI) reported a net loss attributable to common shares of $0.1 million, or $0.02 a share, for the three months ended September 30, 2026, compared with net income of $0.7 million, or $0.08 a share, a year earlier.

The Dallas-based real estate investment company said the swing reflected a $1.0 million increase in net operating loss and a $1.4 million decrease in interest income, net, offset in part by a $1.4 million decrease in tax provision. Sequentially, the loss narrowed from $1.1 million, or $0.13 a share, in the three months ended June 30, 2026.

Total revenue rose to $13.9 million from $12.8 million a year earlier. The company said the increase was primarily due to a $1.5 million rise from multifamily properties, offset in part by a $0.4 million decline from commercial properties. Multifamily revenue rose as Development Properties continued to lease up. Commercial revenue had increased $0.2 million year over year in the second quarter.

Net operating loss widened to $2.4 million from $1.4 million a year earlier. The company attributed the increase primarily to a $1.4 million rise in operating expenses from lease-up properties. Property operating expenses were $8.9 million. Depreciation and amortization was $3.7 million. General and administrative expenses were $1.5 million. The advisory fee to a related party was $2.1 million.

Interest income was $4.0 million. Interest expense was $2.3 million. Gain on sale or write down of assets, net, was $0.8 million. During the quarter, TCI sold 21 lots from Windmill Farms for $1.0 million, producing a gain on sale of $0.8 million.

Stabilized-property occupancy was 82% at September 30, 2026, including 95% at multifamily properties and 57% at commercial properties. Multifamily occupancy at the Development Properties had been 86% at Alera, 85% at Bandera Ridge and 77% at Merano as of June 30, 2026.

On October 2, 2026, TCI agreed to purchase Bellwether Ridge, a 150-unit multifamily property in DeSoto, Texas; Parc at Ingleside, a 192-unit property in Ingleside, Texas; Parc at Opelika, a 168-unit property in Opelika, Alabama; and Parc at Windmill Farms, a 272-unit property in Forney, Texas, in exchange for settlement of four notes receivable and a cash payment of $12.0 million. The company said it is working with lenders to assume existing mortgage notes payable on the properties.

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