Transcontinental Realty Reports Q2 2025 Revenue Growth to $12.16 Million

Transcontinental Realty Investors, Inc. reported its financial results for the second quarter and first half of 2025, revealing a total revenue of $12.16 million for the three months ended June 30, 2025, a 3.3% increase from $11.77 million in the same period of 2024. For the first half of 2025, total revenue reached $24.17 million, up from $23.67 million year-over-year. The company’s net income for the second quarter was $324,000, a decrease from $1.70 million in the prior year, while net income for the first half increased to $5.11 million from $4.45 million.

The company experienced notable changes in its financial performance compared to the previous fiscal period. Rental revenues rose to $11.51 million in Q2 2025 from $11.19 million in Q2 2024, contributing to the overall revenue growth. However, the increase in operating expenses, which totaled $12.99 million for the second quarter, slightly outpaced revenue growth, leading to a net operating loss of $825,000 for the quarter, an improvement from a loss of $1.08 million in the same period last year. The company attributed the decrease in net income primarily to a reduction in profit from its multifamily segment and a significant drop in interest income.

In terms of strategic developments, Transcontinental Realty has been actively engaged in real estate development, particularly in its Windmill Farms project in Kaufman County, Texas. The company is developing infrastructure for single-family lots, multifamily properties, and retail spaces, with $55.45 million in District Receivables reported as of June 30, 2025. The company also reported a gain of $4.84 million from asset sales during the first half of 2025, which included proceeds from a condemnation settlement and the sale of land.

Operationally, the company’s portfolio included four office buildings and fourteen multifamily properties, totaling 2,328 units, with an additional four multifamily properties under development. The total assets increased to $1.13 billion as of June 30, 2025, compared to $1.07 billion at the end of 2024, driven by growth in real estate holdings. The company’s liabilities also rose to $269.64 million, up from $217.73 million, primarily due to increased mortgages and notes payable. The equity attributable to shareholders increased to $837.67 million, reflecting retained earnings growth.

Looking ahead, Transcontinental Realty anticipates that its cash and cash equivalents, along with cash generated from operations and notes receivable, will be sufficient to meet its liquidity requirements. The company plans to continue its development activities and may selectively sell assets to manage its cash flow needs. The management remains optimistic about the potential for growth in its multifamily and commercial segments, despite the challenges posed by market conditions and operational costs.