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American Realty Investors(ARL) - 2023 Q4 - Annual Report
ARLAmerican Realty Investors(ARL)2024-03-21 16:52

Sales and Gains - The company sold a 50% ownership interest in Overlook at Allensville Phase II for 2.6million,resultinginagainof2.6 million, resulting in a gain of 1.4 million[79]. - The sale of 600 Las Colinas generated 74.8million,withagainof74.8 million, with a gain of 27.3 million, and proceeds were used to pay off the mortgage[80]. - In 2022, the company sold 134.7 acres of land for 20.2million,resultingingainsof20.2 million, resulting in gains of 10.3 million[80]. - The company received 182.8millionfromVAAasaninitialdistributionfromthesaleoftheVAASalePortfolio,whichtotaled182.8 million from VAA as an initial distribution from the sale of the VAA Sale Portfolio, which totaled 1.8 billion[91]. - Gain on sale of land was 188in2023,significantlylowerthan188 in 2023, significantly lower than 4,752 in 2022[115]. Development Projects - The company spent 5.0millionontheongoingdevelopmentofWindmillFarms,withanagreementtosell276lotsfor5.0 million on the ongoing development of Windmill Farms, with an agreement to sell 276 lots for 13.1 million[85]. - A development agreement for a 240 unit multifamily property in Lake Wales is expected to cost approximately 55.3million,fundedpartlybya55.3 million, funded partly by a 33.0 million construction loan[86]. - The company incurred a total of 16.9millionindevelopmentcostsfortheLakeWalesprojectasofDecember31,2023[86].−Aconstructionloanof16.9 million in development costs for the Lake Wales project as of December 31, 2023[86]. - A construction loan of 25.4 million was entered into for the development of Merano, expected to be completed in 2025[87]. - The company completed the restoration of Landing on Bayou Cane for a total cost of 16.7million,primarilyfundedbyinsuranceproceeds[89].FinancialPerformance−Multifamilysegmentrevenueincreasedto16.7 million, primarily funded by insurance proceeds[89]. Financial Performance - Multifamily segment revenue increased to 32,608,000 in 2023 from 17,828,000in2022,avarianceof17,828,000 in 2022, a variance of 14,780,000[104]. - Operating expenses for the multifamily segment rose to 17,749,000in2023from17,749,000 in 2023 from 9,524,000 in 2022, resulting in an operating income increase of 6,555,000[104].−Commercialsegmentrevenuedecreasedto6,555,000[104]. - Commercial segment revenue decreased to 14,415,000 in 2023 from 16,252,000in2022,adeclineof16,252,000 in 2022, a decline of 1,837,000[104]. - Net income dropped significantly to 5,251,000in2023from5,251,000 in 2023 from 475,317,000 in 2022, a decrease of 470,066,000[104].−Interestincome,netincreasedby470,066,000[104]. - Interest income, net increased by 8,315,000, primarily due to an 8,000,000decreaseininterestexpenseanda8,000,000 decrease in interest expense and a 300,000 increase in interest income[104]. Funds and Cash Flow - Funds From Operations (FFO) for 2023 was 19,997,000comparedto19,997,000 compared to 43,275,000 in 2022, reflecting a decrease of 23,278,000[115].−Thecompanyanticipatessufficientcashandshort−terminvestmentstomeetliquidityrequirementsthrough2024[109].−Cashusedinoperatingactivitiesdecreasedto23,278,000[115]. - The company anticipates sufficient cash and short-term investments to meet liquidity requirements through 2024[109]. - Cash used in operating activities decreased to 31,054,000 in 2023 from 45,386,000in2022,avarianceof45,386,000 in 2022, a variance of 14,332,000[111]. - Cash provided by investing activities fell to 26,813,000in2023from26,813,000 in 2023 from 307,357,000 in 2022, a decrease of 280,544,000[112].−Thecompanyplanstoselectivelyselllandandincome−producingassetstomeetliquidityneeds[109].IncomeandExpenses−NetincomeattributabletotheCompanyfor2023was280,544,000[112]. - The company plans to selectively sell land and income-producing assets to meet liquidity needs[109]. Income and Expenses - Net income attributable to the Company for 2023 was 3,968, compared to 373,349in2022,indicatingasignificantdecrease[115].−FFO−BasicandDilutedfor2023was373,349 in 2022, indicating a significant decrease[115]. - FFO-Basic and Diluted for 2023 was 19,997, down from 43,275in2022[115].−FFO−adjustedfor2023was43,275 in 2022[115]. - FFO-adjusted for 2023 was 20,714, compared to 41,267in2022,reflectingadecline[115].−Depreciationandamortizationonconsolidatedassetsincreasedto41,267 in 2022, reflecting a decline[115]. - Depreciation and amortization on consolidated assets increased to 13,646 in 2023 from 9,686in2022[115].−Lossonearlyextinguishmentofdebtwas9,686 in 2022[115]. - Loss on early extinguishment of debt was 1,710 in 2023, down from 2,805in2022[115].AssetManagement−Loss(gain)onsale,remeasurementorwritedownofassetswas2,805 in 2022[115]. Asset Management - Loss (gain) on sale, remeasurement or write down of assets was 1,923 in 2023, compared to a gain of (87,132)in2022[115].−Lossonforeigncurrencytransactionswas(87,132) in 2022[115]. - Loss on foreign currency transactions was (993) in 2023, an improvement from (20,067)in2022[115].−Depreciationandamortizationonunconsolidatedjointventuresatproratasharewas(20,067) in 2022[115]. - Depreciation and amortization on unconsolidated joint ventures at pro rata share was 272 in 2023, down from 8,424in2022[115].−Gainonsaleofassetsfromunconsolidatedjointventureatproratasharewas8,424 in 2022[115]. - Gain on sale of assets from unconsolidated joint venture at pro rata share was (265,804) in 2022, with no corresponding figure for 2023[115].