EX-99.1 2 arl20251231ex991earnings.htm EX-99.1 Document


NEWS RELEASEContact:
American Realty Investors, Inc. Investor Relations
FOR IMMEDIATE RELEASE
Erik Johnson (469) 522-4200 investor.relations@americanrealtyinvest.com


American Realty Investors, Inc. reports Earnings for Q4 2025

DALLAS (March 12, 2026) -- American Realty Investors, Inc. (NYSE:ARL) is reporting its results of operations for the three months ended December 31, 2025. For the three months ended December 31, 2025, we reported net income attributable to common shares of $9.8 million or $0.60 per diluted share, compared to a net loss attributable to common shares of $0.2 million or $0.01 per diluted share for the same period in 2024.

Financial Highlights

•Total stabilized occupancy was 81% at December 31, 2025, which includes 93% at our multifamily properties and 59% at our commercial properties. Stabilized occupancy excludes Alera, Bandera Ridge and Merano, which are currently in lease-up.
•On October 10, 2025, we sold Villas at Bon Secour, a 200 unit multifamily property in Gulf Shores, Alabama, for $28.0 million, which resulted in a gain on sale of $12.2 million. We used the proceeds from the sale to pay off the $18.8 million loan on the property and for general corporate purposes.

Financial Results

Revenues increased $1.0 million from $12.0 million for the three months ended December 31, 2024 to $13.0 million for the three months ended December 31, 2025. The increase in revenue is primarily due to an increase of $0.6 million from our commercial properties and $0.7 million in other income offset in part by a decrease of $0.3 million from our multifamily properties. The increase in revenue from our commercial properties is primarily due to an increase in occupancy at Stanford Center and the decrease is to the sale of Villas at Bon Secour in 2025.

Net operating loss increased $1.2 million from $1.8 million for the three months ended December 31, 2024 to $3.0 million for the three months ended December 31, 2025. Our increase in net operating loss was due to a $2.1 million increase in operating expenses offset in part by the $1.0 million increase in revenue. The increase in operating expenses is primarily due to an increase in the cost of the lease-up properties during the three months ended December 31, 2025.

Net income attributable to common shares increased $9.9 million from net loss of $0.2 million for the three months ended December 31, 2024 to net income of $9.8 million for the three months ended December 31, 2025. The increase in net income is primarily attributed to $15.0 million increase in gain on sale of assets offset in part by a $1.5 million increase in tax provision and the $1.2 million increase in net operating loss. The increase in gain on sale of assets is primarily attributed to the sale of Villas at Bon Secour in 2025.



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 December 31,Twelve Months Ended December 31,
2025202420252024
Revenues:
Rental revenues$11,510 $11,222 $46,366 $44,763 
Other income1,501 817 3,648 2,555 
   Total revenue13,011 12,039 50,014 47,318 
Expenses:
Property operating expenses7,823 6,816 27,885 27,063 
Depreciation and amortization3,696 2,847 12,577 12,276 
General and administrative1,714 1,845 6,459 6,395 
Advisory fee to related party2,808 2,315 9,522 8,225 
   Total operating expenses16,041 13,823 56,443 53,959 
   Net operating loss(3,030)(1,784)(6,429)(6,641)
Interest income3,175 3,940 14,637 19,973 
Interest expense(1,537)(1,880)(6,825)(7,838)
Loss on early extinguishment of debt(284)— (284)— 
Equity in income from unconsolidated joint ventures143 42 119 1,449 
Gain (loss) on real estate transactions14,395 (589)19,988 (23,989)
Income tax provision(1,470)55 (2,667)3,607 
Net income (loss)11,392 (216)18,539 (13,439)
Net income attributable to noncontrolling interest(1,610)55 (2,836)(1,264)
Net income (loss) attributable to common shares$9,782 $(161)$15,703 $(14,703)
Earnings per share
Basic and diluted$0.60 $(0.01)$0.97 $(0.91)
Weighted average common shares used in computing earnings per share
Basic and diluted16,152,043 16,152,043 16,152,043 16,152,043