Transcontinental Realty Investors, Inc. reported net income attributable to common shares of $0.2 million, or $0.02 per diluted share, for the three months ended June 30, 2025. This represents a substantial decrease from the $1.5 million, or $0.17 per diluted share, reported for the same period in 2024. The primary factors behind this earnings drop were a $1.2 million decline in interest income and a significant increase in the income tax provision, which rose from $0.7 million to $2.0 million.
Rental revenues for the second quarter of 2025 increased slightly by $0.3 million, reaching $11.5 million compared to $11.2 million in the prior-year period. This increase was mainly attributed to higher occupancy at the Stanford Center. The company's multifamily occupancy stood at 94% as of June 30, 2025, while overall portfolio occupancy reached 82%, and commercial property occupancy remained lower at 57%.
Despite the decline in net income, the company's net operating loss decreased by $0.3 million to $0.8 million, driven by a $0.1 million decrease in operating expenses, primarily related to insurance and property taxes. A one-time gain of $1.1 million from the sale of 30 residential development lots at Windmill Farms partially offset the pressures on earnings. Additionally, TCI paid off a $10.8 million loan on its South Post Oak property, demonstrating active debt management.
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