American Realty Investors Reports $2.864 Million Net Income for Q2 2025

American Realty Investors, Inc. reported a net income of $2.864 million for the second quarter of 2025, a significant increase from $1.491 million in the same period of 2024. This translates to earnings per share of $0.18, compared to $0.07 a year earlier. For the first half of 2025, the company achieved a net income of $6.827 million, up from $3.793 million in the first half of 2024. Total revenues for the second quarter reached $12.160 million, a 3.3% increase from $11.773 million in the prior year, driven primarily by higher rental revenues, which rose to $11.510 million from $11.188 million.

The company’s total assets increased to $1.086 billion as of June 30, 2025, up from $1.033 billion at the end of 2024. This growth was largely attributed to an increase in real estate holdings, which rose to $605.862 million from $557.388 million. However, cash and cash equivalents decreased to $15.465 million from $19.918 million, reflecting a strategic shift in asset allocation. Total liabilities also rose to $278.221 million from $230.532 million, primarily due to increased mortgages and notes payable, which climbed to $215.951 million from $185.398 million.

Operationally, American Realty Investors has been active in its development projects, particularly in the Windmill Farms area, which is being developed into multifamily and retail properties. The company reported significant construction costs incurred during the first half of 2025, totaling $52 million, funded in part by $43 million in new borrowings. The firm is also engaged in ongoing development agreements with Pillar Income Asset Management, which manages its day-to-day operations. As of June 30, 2025, the company’s portfolio included 14 multifamily properties and four commercial properties, with ongoing projects expected to enhance its market presence.

Looking ahead, American Realty Investors anticipates continued growth driven by its development projects and strategic asset management. The company plans to leverage its existing properties and explore additional financing options to support its expansion efforts. Management expressed confidence in meeting liquidity needs through property operations and potential asset sales, while also navigating market conditions that may impact occupancy and rental rates. The firm remains focused on enhancing its portfolio and maximizing shareholder value through prudent financial management and strategic investments.