American Realty Investors (ARL)) Q4 2024 earnings summary

Executive summary

• Reported net loss attributable to common shares of $0.2 million ($0.01 per diluted share) for Q4 2024, improving from $2.1 million loss ($0.13 per share) in Q4 2023.

• Net operating loss narrowed to $1.8 million from $2.2 million year-over-year, driven by lower operating expenses.

Financial highlights

• Rental revenues declined to $11.2 million from $12.8 million year-over-year, mainly due to lower commercial occupancy.

• Total occupancy at 81% as of December 31, 2024; multifamily at 94%, commercial at 53%.

• Operating expenses decreased by $2.4 million, primarily from lower depreciation.

• Gain on sale of 30 single family lots generated $1.1 million.

Outlook and guidance

• 45,000 sq ft lease at Stanford Center signed, increasing property occupancy by 14% and rent per sq ft by 20%; lease commences April 2025.

• Construction loan secured for 234-unit Mountain Creek multifamily project in Dallas, expected completion in 2026.