Transcontinental Realty Investors (TCI) investor relations material

Executive summary

• Report covers the quarter ended June 30, 2026, with 8,773,965 shares outstanding as of August 6, 2026.

• The company is externally managed, focusing on income-producing multifamily and commercial properties, with ongoing development projects and recent asset sales.

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

• Reported net loss attributable to common shares of $1.1 million ($0.13 per share) for Q2 2026, compared to net income of $0.2 million ($0.02 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 of development properties.

Financial highlights

• Total assets were $1.13 billion at June 30, 2026, compared to $1.13 billion at December 31, 2025.

• Net loss attributable to the company was $1.13 million for Q2 2026, compared to net income of $0.17 million in Q2 2025.

• For the six months ended June 30, 2026, net loss was $0.96 million, down from net income of $4.79 million in the prior year period.

• Rental revenues for Q2 2026 were $12.24 million, up from $11.51 million in Q2 2025.

• Funds from Operations (FFO) for Q2 2026 was $2.57 million, down from $3.23 million in Q2 2025.

• Total revenue for Q2 2026 was $12.9 million, up $0.7 million year-over-year.

• Net operating loss increased to $2.3 million in Q2 2026 from $0.8 million in Q2 2025, mainly due to higher operating expenses from lease-up properties.

• Gain on sale of assets was $0.8 million from the sale of 21 lots at Windmill Farms.

Outlook and guidance

• Management expects cash and equivalents, along with proceeds from receivables and investments, to be sufficient for liquidity needs.

• Plans include selective asset sales, refinancing, and additional borrowings to meet future obligations.

• Three multifamily properties in lease-up are expected to stabilize in 2026; Mountain Creek development is expected to complete in 2027.

• Lease-up of development properties contributed to revenue growth, indicating ongoing focus on increasing occupancy and property performance.