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American Realty Investors(ARL) - 2024 Q2 - Quarterly Report
ARLAmerican Realty Investors(ARL)2024-08-08 16:02

Financing Activities - The company paid off 67.5millionofSeriesCbondsonJanuary31,2023[90].−A67.5 million of Series C bonds on January 31, 2023[90]. - A 33.0 million construction loan was secured on March 15, 2023, for the development of a 240-unit multifamily property in Lake Wales, Florida, with an expected total cost of approximately 55.3million[93].−A55.3 million[93]. - A 25.4 million construction loan was entered into on November 6, 2023, for the development of a 216-unit multifamily property in McKinney, Texas, with an expected total cost of approximately 51.9million[94].−A51.9 million[94]. - A 23.5 million construction loan was secured on December 15, 2023, for the development of a 216-unit multifamily property in Temple, Texas, with an expected total cost of approximately 49.6million[95].−ThecompanyextendedthematurityofitsloanonWindmillFarmstoFebruary28,2026,ataninterestrateof7.5049.6 million[95]. - The company extended the maturity of its loan on Windmill Farms to February 28, 2026, at an interest rate of 7.50%[90]. - The company spent 3.2 million on reimbursable infrastructure investments during 2024[92]. Development Costs - The company has incurred a total of 25.1millionindevelopmentcostsfortheAleraprojectasofJune30,2024[93].−Thecompanyhasincurredatotalof25.1 million in development costs for the Alera project as of June 30, 2024[93]. - The company has incurred a total of 11.8 million in development costs for the Merano project as of June 30, 2024[94]. - The company has incurred a total of 6.2millionindevelopmentcostsfortheBanderaRidgeprojectasofJune30,2024[95].RevenueandIncome−Multifamilysegmentrevenueincreasedby6.2 million in development costs for the Bandera Ridge project as of June 30, 2024[95]. Revenue and Income - Multifamily segment revenue increased by 269 million to 7,927millionin2024comparedto7,927 million in 2024 compared to 7,658 million in 2023, while commercial segment revenue decreased by 470millionto470 million to 3,261 million[103]. - Net income for the three months ended June 30, 2024, was 1,491million,anincreaseof1,491 million, an increase of 1,188 million compared to 303millioninthesameperiodof2023[103].−FundsFromOperations(FFO)forthesixmonthsendedJune30,2024,was303 million in the same period of 2023[103]. - Funds From Operations (FFO) for the six months ended June 30, 2024, was 9,365 million, compared to 10,251millionin2023,reflectingadecreaseof10,251 million in 2023, reflecting a decrease of 886 million[118]. Cash Flow - Net cash provided by operating activities was 3,364millionforthesixmonthsendedJune30,2024,avarianceof3,364 million for the six months ended June 30, 2024, a variance of 11,819 million compared to (8,455)millionin2023[111].−Cashusedinfinancingactivitiesdecreasedby(8,455) million in 2023[111]. - Cash used in financing activities decreased by 132.9 million to (2,354)millionin2024,primarilyduetotherepaymentofbondsin2023[112].−ThecompanyanticipatessufficientcashandcashequivalentstomeetallcashrequirementsasofJune30,2024[108].Expenses−Interestincomedecreasedby(2,354) million in 2024, primarily due to the repayment of bonds in 2023[112]. - The company anticipates sufficient cash and cash equivalents to meet all cash requirements as of June 30, 2024[108]. Expenses - Interest income decreased by 2,537 million to 2,881millionin2024,primarilyduetolowerinterestratesonUHFnotesandPillarReceivable[105].−General,administrative,andadvisoryexpensesdecreasedby2,881 million in 2024, primarily due to lower interest rates on UHF notes and Pillar Receivable[105]. - General, administrative, and advisory expenses decreased by 2,578 million to 3,289millionin2024,attributedtoreducedlegalandauditingcosts[105].FuturePlans−Thecompanyplanstocontinuefundingliquidityneedsthroughpropertyoperations,sales,andrefinancingofexistingmortgagenotes[107].−Themultifamilysegment′sprofitincreasewasdrivenbya3,289 million in 2024, attributed to reduced legal and auditing costs[105]. Future Plans - The company plans to continue funding liquidity needs through property operations, sales, and refinancing of existing mortgage notes[107]. - The multifamily segment's profit increase was driven by a 0.4 million rise from the Redevelopment Property due to lease-up[106]. Property Transactions - The company reported no Acquisition Properties or Disposition Properties for the comparison of the three and six months ended June 30, 2024, to the same periods in 2023[102].