American Realty Investors (ARL)) Q4 2025 earnings summary

Executive summary

• Reported net income attributable to common shares of $9.8 million ($0.60 per diluted share) for Q4 2025, compared to a net loss of $0.2 million ($0.01 per diluted share) in Q4 2024.

• Significant turnaround driven by a $15.0 million increase in gain on sale of assets, primarily from the sale of Villas at Bon Secour.

Financial highlights

• Revenues increased to $13.0 million in Q4 2025 from $12.0 million in Q4 2024, mainly due to higher commercial property occupancy and other income.

• Net operating loss widened to $3.0 million from $1.8 million year-over-year, due to higher operating expenses, especially from lease-up properties.

• Net income attributable to common shares rose to $9.8 million from a net loss of $0.2 million year-over-year.

• Earnings per share improved to $0.60 from $(0.01) year-over-year.

Outlook and guidance

• Proceeds from the property sale were used to pay off related debt and for general corporate purposes, indicating a focus on strengthening the balance sheet.