American Realty Investors (ARL)) investor relations material

Executive summary

• Portfolio includes 13 operating multifamily properties (2,128 units), 3 lease-up multifamily properties (672 units), 1 under development (234 units), 4 office buildings, and 1,786 acres of land as of June 30, 2026.

• Operations are externally managed by Pillar Income Asset Management; no direct employees.

• Reported net loss attributable to common shares of $1.0 million ($0.06 per share) for Q2 2026, compared to net income of $2.8 million ($0.18 per share) in Q2 2025.

• Revenues increased to $12.9 million in Q2 2026 from $12.2 million in Q2 2025, driven by higher occupancy and lease-up at multifamily and commercial properties.

• Recent activities include sale of 42 Windmill Farms lots for $2.0M (gain of $1.6M) and ongoing construction of Mountain Creek multifamily property.

Financial highlights

• Total revenue for Q2 2026 was $12.9M, up from $12.2M in Q2 2025; six-month revenue was $25.2M, up from $24.2M year-over-year.

• Net loss attributable to common shares was $(1.0)M for Q2 2026 (EPS $(0.06)), compared to net income of $2.8M (EPS $0.18) in Q2 2025.

• Six-month net loss attributable to common shares was $(1.6)M (EPS $(0.10)), versus net income of $5.8M (EPS $0.36) in the prior year.

• Funds from Operations (FFO) for Q2 2026 was $2.7M, down from $6.0M in Q2 2025.

• Cash, cash equivalents, and restricted cash totaled $22.1M at June 30, 2026, down from $34.2M at June 30, 2025.

Outlook and guidance

• Lease-up of three new multifamily properties (Alera, Bandera Ridge, Merano) expected to stabilize in 2026.

• Mountain Creek multifamily project in Dallas (234 units) expected to complete in 2027, with $33M in remaining costs to be funded partly by a $27.5M construction loan.

• Management anticipates sufficient liquidity from operations, asset sales, and refinancing to meet obligations.