Home » MBJ FEATURE » Jackson hotel partner showed a $12.2 million loss at Q1 close

Jackson hotel partner showed a $12.2 million loss at Q1 close

Dallas-based Transcontinental Realty Investors, Inc. (NYSE:TCI), parent of TCI Investments, ended the first quarter with a net loss applicable to common shares of $12.2 million, compared to a loss of $10.5 million for the same period ended 2010.

Transcontinental Realty took an impairment on notes receivable and real estate of $24.5 million in the fourth quarter of 2010, compared to $14 million for the same period ended 2009, the company said in an earnings report issued April 1.

Transcontinental Realty also saw a $1 million rental revenue drop in the fourth quarter, it said.

As of March 31, 2011, Transcontinental owned 8,309 units in 46 residential apartment communities and 24 commercial properties of about 4.8 million rentable square feet. In addition, it owns 5,461 acres of land held for development and has four apartment complexes in development.

Addressing liquidity in a recent 8-K filing with the Securities & Exchange Commission, Transcontinental said it expects to generate excess cash from property operations in 2011. But the extra cash will not be sufficient to discharge all of TCI’s obligations as they become due, the company said.

Management intends to sell income-producing assets, refinance real estate and obtain additional borrowings primarily secured by real estate to meet its liquidity requirements, Transcontinental said.

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