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American Realty Investors(ARL) - 2024 Q1 - Quarterly Report
ARLAmerican Realty Investors(ARL)2024-05-09 17:53

Revenue and Income - Multifamily segment revenue increased to 8.053millioninQ12024from8.053 million in Q1 2024 from 7.373 million in Q1 2023, a growth of approximately 9.2%[105] - Commercial segment revenue decreased to 3.226millioninQ12024from3.226 million in Q1 2024 from 3.636 million in Q1 2023, a decline of approximately 11.3%[105] - Net income for Q1 2024 was 2.302million,downfrom2.302 million, down from 4.219 million in Q1 2023, representing a decrease of about 45.5%[105] - Net income for the three months ended March 31, 2024, decreased by 1.9millioncomparedtothesameperiodin2023,primarilyduetoadeclineinoccupancyatBrowningPlaceinthecommercialsegment[107]−FundsFromOperations(FFO)forthethreemonthsendedMarch31,2024,was1.9 million compared to the same period in 2023, primarily due to a decline in occupancy at Browning Place in the commercial segment[107] - Funds From Operations (FFO) for the three months ended March 31, 2024, was 4.98 million, down from 6.13millioninthesameperiodin2023[116]−FFOadjustedforthethreemonthsendedMarch31,2024,was6.13 million in the same period in 2023[116] - FFO adjusted for the three months ended March 31, 2024, was 4.98 million, compared to 5.16millioninthesameperiodin2023[116]Expenses−Operatingexpensesforthemultifamilysegmentroseto5.16 million in the same period in 2023[116] Expenses - Operating expenses for the multifamily segment rose to 4.219 million in Q1 2024, up from 3.708millioninQ12023,anincreaseofabout13.83.708 million in Q1 2023, an increase of about 13.8%[105] - General, administrative, and advisory expenses decreased to 3.610 million in Q1 2024 from 5.566millioninQ12023,areductionofapproximately35.25.566 million in Q1 2023, a reduction of approximately 35.2%[105] - Interest income decreased to 3.811 million in Q1 2024 from 5.155millioninQ12023,adeclineofabout26.05.155 million in Q1 2023, a decline of about 26.0%[105] - The decrease in interest income was 2.6 million, partially offset by a 1.2milliondecreaseininterestexpenseduetochangesininterestratesandrepaymentofbonds[107]DevelopmentandFinancing−Thecompanyincurred1.2 million decrease in interest expense due to changes in interest rates and repayment of bonds[107] Development and Financing - The company incurred 18.9 million in development costs for the Lake Wales multifamily property as of March 31, 2024, with total expected costs of approximately 55.3million[95]−A55.3 million[95] - A 33.0 million construction loan was secured for the Lake Wales development, which is expected to be completed in 2025[95] - The company entered into a 25.4millionconstructionloanfortheMeranodevelopment,expectedtobecompletedin2025[96]−Atotalof25.4 million construction loan for the Merano development, expected to be completed in 2025[96] - A total of 24.3 million is allocated for the development of 470 land lots in Windmill Farms, with completion expected over a two-year period starting Q3 2024[94] - The net cash used in financing activities decreased significantly by 87.67million,primarilyduetotherepaymentofbondsin2023[111]−Thecompanyplanstoselectivelyselllandandincome−producingassetsandrefinanceexistingrealestatedebttomeetliquidityrequirements[109]CashFlow−Cashprovidedbyoperatingactivitiesincreasedto87.67 million, primarily due to the repayment of bonds in 2023[111] - The company plans to selectively sell land and income-producing assets and refinance existing real estate debt to meet liquidity requirements[109] Cash Flow - Cash provided by operating activities increased to 3.87 million in Q1 2024 from 1.54millioninQ12023,avarianceof1.54 million in Q1 2023, a variance of 2.33 million attributed to a decrease in interest payments[110] - The company anticipates that cash and cash equivalents as of March 31, 2024, will be sufficient to meet all cash requirements, supported by cash generated from notes receivable and short-term investments[109] - The cash flow from investing activities changed by 35.8million,mainlyduetoa35.8 million, mainly due to a 51.1 million increase in net purchases of short-term investments[111] Profitability - The multifamily segment saw a profit increase of $0.1 million due to the lease-up of the Redevelopment Property[107]