<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE QUARTER ENDED MARCH 31, 1996
----------------
Commission File Number 1-9240
TRANSCONTINENTAL REALTY INVESTORS, INC.
-------------------------------------------------------------
(Exact Name of Registrant as Specified in Its Charter)
Nevada 94-6565852
- --------------------------------- ---------------------
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
10670 North Central Expressway, Suite 300, Dallas, Texas 75231
- ------- ------------------------------------------------------------------------
(Address of Principal Executive Office) (Zip Code)
(214) 692-4700
(Registrant's Telephone Number,
Including Area Code)
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X . No .
---- ----
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
Common Stock, as of the latest practicable date.
Common Stock, $.01 par value 4,012,275
- ---------------------------- -------------------------------------
(Class) (Outstanding at April 30, 1996
1
<PAGE> 2
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The accompanying Consolidated Financial Statements have not been examined by
independent certified public accountants, but in the opinion of the management
of Transcontinental Realty Investors, Inc. (the "Company"), all adjustments
(consisting of normal recurring accruals) necessary for a fair presentation of
the Company's consolidated financial position, consolidated results of
operations and consolidated cash flows at the dates and for the periods
indicated, have been included.
TRANSCONTINENTAL REALTY INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
-------------- --------------
(dollars in thousands)
Assets
------
<S> <C> <C>
Notes and interest receivable
Performing........................................ $ 9,064 $ 9,916
Nonperforming, nonaccruing........................ 1,150 1,150
-------------- --------------
10,214 11,066
Less - allowance for estimated losses.............. (989) (1,049)
-------------- --------------
9,225 10,017
Foreclosed real estate held for sale, net of
accumulated depreciation ($33 in 1996 and 1995)... 2,460 2,460
Real estate held for sale, net of accumulated
depreciation ($0 in 1996 and $1,684 in 1995)...... 1,252 3,415
-------------- --------------
12,937 15,892
Real estate held for investment, net of
accumulated depreciation ($44,521 in 1996 and
$42,455 in 1995).................................. 218,703 220,249
Investment in real estate entities................. 5,132 5,086
Cash and cash equivalents.......................... 5,089 9,620
Other assets (including $808 in 1996 and $733 in
1995 from affiliates)............................. 8,362 9,333
-------------- --------------
$ 250,223 $ 260,180
============== ==============
</TABLE>
The accompanying notes are an integral part of these Consolidated Financial
Statements.
2
<PAGE> 3
TRANSCONTINENTAL REALTY INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS - Continued
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
-------------- --------------
(dollars in thousands)
<S> <C> <C>
Liabilities and Stockholders' Equity
------------------------------------
Liabilities
Notes and interest payable........................................... $ 155,298 $ 159,889
Other liabilities (including $677 in 1995 to
affiliates)......................................................... 7,095 11,107
-------------- --------------
162,393 170,996
Stockholders' equity
Common stock, $.01 par value, authorized, 10,000,000
shares; issued and outstanding, 4,012,275 shares.................... 40 40
Paid-in capital...................................................... 219,036 219,036
Accumulated distributions in excess of
accumulated earnings................................................ (131,246) (129,892)
-------------- --------------
87,830 89,184
-------------- --------------
$ 250,223 $ 260,180
============== ==============
</TABLE>
The accompanying notes are an integral part of these Consolidated Financial
Statements.
3
<PAGE> 4
TRANSCONTINENTAL REALTY INVESTORS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
For the Three Months
Ended March 31,
-----------------------------------
1996 1995
-------------- --------------
(dollars in thousands,
except per share)
<S> <C> <C>
Income
Rents............................................ $ 11,158 $ 11,140
Interest......................................... 412 374
-------------- --------------
11,570 11,514
Expenses
Property operations.............................. 7,417 7,337
Equity in (income) loss of investees............. 45 (71)
Interest......................................... 3,754 3,554
Depreciation..................................... 2,067 1,989
Advisory fee to affiliate........................ 478 488
General and administrative....................... 580 461
-------------- --------------
14,341 13,758
-------------- --------------
(Loss) before gain on sale of real estate and
extraordinary gain............................... (2,771) (2,244)
Gain on sale of real estate....................... 1,650 -
Extraordinary gain................................ 48 1,293
-------------- --------------
Net (loss)........................................ $ (1,073) $ (951)
============== ==============
Earnings Per Share
(Loss) before extraordinary gain.................. $ (.28) $ (.56)
Extraordinary gain................................ .01 .32
------------- -------------
Net (loss)........................................ $ (.27) $ (.24)
============= =============
Common shares used in computing earnings per
share............................................ 4,012,275 4,012,275
============== ==============
</TABLE>
The accompanying notes are an integral part of these Consolidated Financial
Statements.
4
<PAGE> 5
TRANSCONTINENTAL REALTY INVESTORS, INC.
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
For the Three Months Ended March 31, 1996
<TABLE>
<CAPTION>
Accumulated
Distributions
Common Stock in Excess of
----------------------- Paid-in Accumulated Stockholders'
Shares Amount Capital Earnings Equity
--------- ----------- -------------- -------------- --------------
(dollars in thousands)
<S> <C> <C> <C> <C> <C>
Balance, January 1,
1996............................ 4,012,275 $ 40 $ 219,036 $ (129,892) $ 89,184
Dividends ($.07 per share)...... - - - (281) (281)
Net (loss)...................... - - - (1,073) (1,073)
--------- ----------- -------------- -------------- --------------
Balance, March 31, 1996......... 4,012,275 $ 40 $ 219,036 $ (131,246) $ 87,830
========= =========== ============== ============== ==============
</TABLE>
The accompanying notes are an integral part of these
Consolidated Financial Statements.
5
<PAGE> 6
TRANSCONTINENTAL REALTY INVESTORS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
For the Three Months
Ended March 31,
-----------------------------------
1996 1995
-------------- --------------
(dollars in thousands)
<S> <C> <C>
Cash Flows from Operating Activities
Rents collected.................................. $ 11,286 $ 10,991
Interest collected............................... 334 302
Interest paid.................................... (3,598) (3,226)
Payments for property operations................. (8,151) (7,404)
Advisory fee paid to affiliate................... (491) (449)
General and administrative expenses paid......... (546) (451)
Distributions from equity investees' operating
cash flow..................................... 41 73
Other............................................ (1,770) 395
-------------- --------------
Net cash provided by (used in) operating
activities................................. (2,895) 231
Cash Flows from Investing Activities
Collections on notes receivable.................. 844 36
Real estate improvements......................... (548) (3,553)
Acquisition of real estate....................... (891) (166)
Contributions to equity investees................ (132) (384)
Proceeds from sale of real estate................ 1,754 -
-------------- --------------
Net cash provided by (used in) investing
activities................................. 1,027 (4,067)
Cash Flows from Financing Activities
Payments on notes payable........................ (1,631) (440)
Proceeds from notes payable...................... - 6,150
Payoffs of notes payable......................... - (5,014)
Debt issue costs................................. - (191)
Advances from (repayments to) advisor............ (751) 3,523
Distributions to shareholders.................... (281) -
-------------- --------------
Net cash provided by (used in) financing
activities................................. (2,663) 4,028
Net increase (decrease) in cash and cash
equivalents...................................... (4,531) 192
Cash and cash equivalents, beginning of period.... 9,620 563
-------------- --------------
Cash and cash equivalents, end of period.......... $ 5,089 $ 755
============== ==============
</TABLE>
The accompanying notes are an integral part of these Consolidated Financial
Statements.
6
<PAGE> 7
TRANSCONTINENTAL REALTY INVESTORS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS - Continued
<TABLE>
<CAPTION>
For the Three Months
Ended March 31,
-----------------------------------
1996 1995
--------------- --------------
(dollars in thousands)
<S> <C> <C>
Reconciliation of net (loss) to net cash
provided by (used in) operating activities
Net (loss)................................................. $ (1,073) $ (951)
Adjustments to reconcile net (loss) to net
cash provided by (used in) operating activities
Depreciation and amortization............................. 2,156 2,105
Gain on sale of real estate............................... (1,650) -
Extraordinary gain........................................ (48) (1,293)
Equity in (income) loss of investees...................... 45 (71)
Distributions from equity investees in excess of
current period earnings................................ 41 73
(Increase) in interest receivable......................... (1) (11)
Decrease in other assets.................................. 804 227
Increase in interest payable.............................. 9 151
Increase (decrease) in other liabilities.................. (3,178) 1
--------------- --------------
Net cash provided by (used in) operating
activities.......................................... $ (2,895) $ 231
============== ==============
</TABLE>
The accompanying notes are an integral part of these Consolidated Financial
Statements.
7
<PAGE> 8
TRANSCONTINENTAL REALTY INVESTORS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. BASIS OF PRESENTATION
The Company, a Nevada corporation, is successor to a California business trust
which was organized on September 6, 1983. The Company invests in real estate
through direct equity ownership, leases and partnerships and also has invested
in mortgage loans on real estate, including first, wraparound and junior
mortgage loans. The Company is no longer seeking to fund or acquire new
mortgage loans other than those which it may originate in conjunction with
providing purchase money financing of a property sale.
The accompanying Consolidated Financial Statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-Q and Article 10 of Regulation
S-X. Accordingly, they do not include all of the information and footnotes
required by generally accepted accounting principles for complete financial
statements. Operating results for the three month period ended March 31, 1996
are not necessarily indicative of the results that may be expected for the year
ending December 31, 1996. For further information, refer to the Consolidated
Financial Statements and notes thereto included in the Company's Annual Report
on Form 10-K for the year ended December 31, 1995 (the "1995 Form 10-K").
Certain balances for 1995 have been reclassified to conform to the 1996
presentation. Shares and per share data have been restated for the three for
two forward stock split effected February 15, 1996.
NOTE 2. NOTES AND INTEREST RECEIVABLE
In March 1996, the Company accepted a discounted payoff of $825,000 in full
settlement of a mortgage note receivable with a principal balance of $875,000.
The Company recorded no loss on the settlement in excess of the reserve
previously established.
NOTE 3. REAL ESTATE AND ACCUMULATED DEPRECIATION
In January 1996, the Company sold the Cheyenne Mountain land, a 7 acre held for
sale parcel of land in Colorado Springs, Colorado for $330,000 in cash. The
Company recognized a gain of $218,000 on the sale.
Also in January 1996, the Company purchased a 4.7 acre parcel of partially
developed land in Las Colinas, Texas for $941,000 in cash. The Company paid a
real estate acquisition commission of $38,000 to Carmel Realty, Inc. ("Carmel
Realty"), an affiliate of Basic Capital Management, Inc. ("BCM"), the Company's
advisor, and a real estate acquisition fee of $9,000 to BCM based upon the
$941,000 purchase price.
In March 1996, the Company sold the Park Forest Apartments, a 44 unit held for
sale apartment complex in Dearborn Heights, Michigan, for $4.8 million in cash.
The Company received net cash of $1.6 million after paying off the existing
first mortgage of $2.9 million and various closing costs associated with the
sale. The Company paid a real estate
8
<PAGE> 9
TRANSCONTINENTAL REALTY INVESTORS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued
NOTE 3. REAL ESTATE AND ACCUMULATED DEPRECIATION (Continued)
sales commission of $165,000 to Carmel Realty based upon the $4.8 million sales
price. The Company recognized a gain on the sale of $1.4 million.
NOTE 4. INVESTMENTS IN EQUITY METHOD REAL ESTATE ENTITIES
Set forth below is summarized results of operations for the real estate
entities the Company accounts for using the equity method for the three months
ended March 31, 1996 (dollars in thousands):
<TABLE>
<CAPTION>
1996
------
<S> <C>
Rents and interest income............................. 2,868
Depreciation.......................................... (393)
Property operations................................... (2,039)
Interest expense...................................... (598)
------
Net (loss)............................................ (162)
======
</TABLE>
NOTE 5. COMMITMENTS AND CONTINGENCIES
The Company is involved in various lawsuits arising in the ordinary course of
business. The Company's management is of the opinion that the outcome of these
lawsuits will have no material impact on the Company's financial condition,
results of operations or liquidity.
______________________________________
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Introduction
Transcontinental Realty Investors, Inc. (the "Company") invests in real estate
through direct ownership, leases and partnerships and has invested in mortgage
loans, including first, wraparound and junior mortgage loans. The Company is
the successor to a business trust which was organized on September 6, 1983 and
commenced operations on January 31, 1984.
Liquidity and Capital Resources
Cash and cash equivalents aggregated $5.1 million at March 31, 1996 compared
with $9.6 million at December 31, 1995. The Company's principal sources of
cash have been and will continue to be from property operations, proceeds from
property and mortgage note sales, the collection of mortgage notes receivable
and borrowings. The Company anticipates that its cash on hand, as well as cash
generated from the collection of mortgage notes receivable, sales of
properties, borrowings against certain of the Company's unencumbered properties
and refinancing or extensions of certain of its mortgage debt will be
sufficient to meet all of the Company's cash requirements for the remainder of
1996, including debt service obligations and expenditures for property
maintenance and improvements.
9
<PAGE> 10
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
Liquidity and Capital Resources (Continued)
In the three months ended March 31, 1996, the Company received $330,000 in cash
from the sale of the Cheyenne Mountain land in Colorado Springs, Colorado, net
cash of $1.6 million from the sale of the Park Forest Apartments in Dearborn
Heights, Michigan after paying off the existing first mortgage, both of which
properties were held for sale, and $825,000 in full settlement of a mortgage
note receivable.
Also in the three months ended March 31, 1996, the Company purchased 4.7 acres
of partially developed land in Las Colinas, Texas for $941,000 in cash and
paid off at maturity the underlying lien on the property securing one of its
wraparound mortgage notes receivable in the amount of $893,000.
In the first quarter of 1996, the Company paid its regular quarterly dividend
of $.07 per share, or a total of $281,000.
The Company's Board of Directors has approved the Company's repurchase of a
total of 458,000 shares of its Common Stock. Through April 30, 1996, the
Company had purchased a total of 233,725 shares, for an aggregate purchase
price of $1.7 million. The Company has repurchased none of its shares during
1996.
On a quarterly basis, the Company's management reviews the carrying value of
the Company's mortgage notes receivable and properties held for sale and
periodically, but no less than annually its properties held for investment.
Generally accepted accounting principles require that the carrying value of
such assets cannot exceed the lower of their respective carrying amounts or
estimated net realizable value. In the initial instance when estimated net
realizable value of a mortgage note receivable or a property held for sale is
less than the carrying amount at the time of evaluation, a reserve is
established and a corresponding provision for loss is recorded by a charge
against earnings. A subsequent revision to estimated net realizable value
either increases or decreases such reserve with a corresponding charge against
or credit to earnings. In the case of properties held for investment the
carrying value of the property is written down and a provision for loss is
recorded. The estimate of net realizable value of the Company's mortgage notes
receivable is based on management's review and evaluation of the collateral
property securing the mortgage note. The property review generally includes
selective property inspections, a review of the property's current rents
compared to market rents, a review of the property's expenses, a review of
maintenance requirements, discussions with the manager of the property and a
review of the surrounding area. See "Recent Accounting Pronouncement," below.
Results of Operations
The Company's net loss for the three months ended March 31, 1996 was $1.1
million as compared to net loss of $951,000 in the corresponding period in
1995. The Company's 1996 net loss includes an extraordinary gain of $48,000
and gains on sales of real estate of $1.7 million and its 1995 net loss
includes an extraordinary gain of $1.3 million. Fluctuations in the major
components of the Company's revenues and expenses between the 1995 and 1996
periods are discussed below.
10
<PAGE> 11
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
Results of Operations (Continued)
Rents in the three months ended March 31, 1996 were $11.2 million as compared
to $11.1 million in the corresponding period in 1995. Of this increase,
$458,000 is due to the acquisition of 100% ownership of Shadow Run Associates,
$206,000 is due to the obtaining, through foreclosure, of the Gladstell Forest
Apartments, $1.4 million is due to increases in rental rates and occupancy,
$187,000 is due to increases in common area maintenance assessments and
$245,000 is due to decreases in discounts, all at the Company's commercial
properties. These increases are partially offset by a decrease of $1.1 million
due to four properties being sold subsequent to March 31, 1995 and $1.4 million
due to increases in discounts and concessions at two of the Company's
commercial properties.
Property operations expense in the three months ended March 31, 1996 was $7.4
million as compared to $7.3 million in the corresponding period in 1995. Of
this increase, $226,000 is due to the acquisition of 100% ownership of Shadow
Run Associates, $128,000 is due to the obtaining of the Gladstell Forest
Apartments, and $348,000 is due to an increase in expenses at several of the
Company's commercial properties. These increases are partially offset by a
decrease of $601,000 due to four properties being sold subsequent to March 31,
1995 and $74,000 due to decreases in tax and insurance expense at several of
the Company's commercial and land properties.
Interest income increased to $412,000 in the three months ended March 31, 1996
from $374,000 in the corresponding period in 1995. The increase is due
primarily to an increase in short-term investment income.
Equity in income (loss) of investees was a loss of $45,000 for the three months
ended March 31, 1996 compared to income of $71,000 for the corresponding period
in 1995. The decrease is primarily due to a decrease in interest income at one
of the Company's partnerships and higher expenses at Income Opportunity Realty
Investors, Inc.
Interest expense for the three months ended March 31, 1996 was $3.8 million as
compared to $3.6 million for the corresponding period in 1995. Of this
increase, $345,000 is attributable to property financings and refinancings
subsequent to March 31, 1995 and $238,000 is due to the acquisition of
properties subject to debt in 1995. These increases are partially offset by a
decrease of $382,000 due to four properties being sold subsequent to March 31,
1995.
Depreciation expense increased to $2.1 million in the three months ended March
31, 1996 as compared to $2.0 million in the corresponding period in 1995. Of
this increase, $77,000 is due to two property acquisitions during 1995 and
$161,000 is due to capital and tenant improvements. These increases are
partially offset by a decrease of $161,000 due to four properties being sold
subsequent to March 31, 1995.
Advisory fee to affiliate of $478,000 in the three months ended March 31, 1996
approximated the $488,000 in the corresponding period in 1995.
11
<PAGE> 12
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
Results of Operations (Continued)
General and administrative expenses increased to $580,000 for the three months
ended March 31, 1996 compared to $461,000 in the corresponding period in 1995.
The increase is primarily attributable to increased legal fees primarily
related to litigation where the Company is the plaintiff and increased advisor
cost reimbursements.
In the three months ended March 31, 1996, the Company recognized gains on sale
of real estate totaling $1.7 million on the sales of the Cheyenne Mountain land
and the Park Forest Apartments, both of which were held for sale. No such
gains were recognized in 1995. In the three months ended March 31, 1996, the
Company recognized an extraordinary gain of $48,000 on the paydown of the
mortgage debt secured by the Dunes Plaza Shopping Center. In the three months
ended March 31, 1995, the Company recognized an extraordinary gain of $1.3
million on the payoff of the mortgage debt secured by the Fountain Village
Apartments.
Tax Matters
As more fully discussed in the Company's 1995 Form 10-K, the Company has
elected and, in the opinion of the Company's management, qualified to be taxed
as a Real Estate Investment Trust ("REIT"), as defined under Sections 856
through 860 of the Internal Revenue Code of 1986, as amended, (the "Code"). To
continue to qualify for federal taxation as a REIT under the Code, the Company
is required to hold at least 75% of the value of its total assets in real
estate assets, government securities, cash and cash equivalents at the close of
each quarter of each taxable year. The Code also requires a REIT to distribute
at least 95% of its REIT taxable income, plus 95% of its net income from
foreclosure property, all as defined in Section 857 of the Code, on an annual
basis to stockholders.
Inflation
The effects of inflation on the Company's operations are not quantifiable.
Revenues from property operations generally fluctuate proportionately with
inflationary increases and decreases in housing costs. Fluctuations in the
rate of inflation also affect the sales values of properties, and
correspondingly, the ultimate gains to be realized by the Company from property
sales. To the effect that inflation affects interest rates, the Company's
earnings from short- term investments and the cost of new financings as well as
the cost of its variable note financing will be affected.
Environmental Matters
Under various federal, state and local environmental laws, ordinances and
regulations, the Company may be potentially liable for removal or remediation
costs, as well as certain other potential costs relating to hazardous or toxic
substances (including governmental fines and injuries
12
<PAGE> 13
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued)
Environmental Matters (Continued)
to persons and property) where property-level managers have arranged for the
removal, disposal or treatment of hazardous or toxic substances. In addition,
certain environmental laws impose liability for release of asbestos-containing
materials into the air, and third parties may seek recovery from the Company
for personal injury associated with such materials.
The Company's management is not aware of any environmental liability relating
to the above matters that would have a material adverse effect on the Company's
business, assets or results of operations.
Recent Accounting Pronouncement
In March 1995, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards ("SFAS") No. 121 - "Accounting for the
Impairment of Long-lived Assets and for Long-lived Assets to Be Disposed Of".
The statement requires that long-lived assets be considered impaired "...if the
sum of the expected future cash flows (undiscounted and without interest
charges) is less than the carrying amount of the asset." If impairment exists,
an impairment loss shall be recognized, by a charge against earnings, equal to
"...the amount by which the carrying amount of the asset exceeds the fair value
of the asset." If impairment of a long-lived asset is recognized, the carrying
amount of the asset shall be reduced by the amount of the impairment, shall be
accounted for as the asset's "new cost" and such new cost shall be depreciated
over the asset's remaining useful life.
SFAS No. 121 further requires that long-lived assets held for sale "...be
reported at the lower of carrying amount or fair value less cost to sell." If
a reduction in a held for sale asset's carrying amount to fair value less cost
to sell is required, a provision for loss shall be recognized by a charge
against earnings. Subsequent revisions, either upward or downward, to a held
for sale asset's fair value less cost to sell shall be recorded as an
adjustment to the asset's carrying amount, but not in excess of the assets
carrying amount when originally classified or held for sale. A corresponding
charge or credit to earnings is to be recognized. Long-lived assets held for
sale are not to be depreciated. The Company adopted SFAS No. 121 effective
January 1, 1996.
The effect of adopting SFAS No. 121 was the discontinuance of depreciation on
the Company's one apartment complex held for sale of $24,000 and a
corresponding reduction in the Company's reported gain on the March 1996 sale
of the property.
THIS SPACE INTENTIONALLY LEFT BLANK.
13
<PAGE> 14
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
<TABLE>
<CAPTION>
Exhibit
Number Description
- ------- ---------------------------------------------------------
<S> <C>
27.0 Financial Data Schedule
(b) Reports on Form 8-K as follows:
NONE.
</TABLE>
14
<PAGE> 15
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
TRANSCONTINENTAL REALTY
INVESTORS, INC.
Date: May 13, 1996 By: /s/ Randall M. Paulson
---------------------------- --------------------------------
Randall M. Paulson
President
Date: May 13, 1996 By: /s/ Thomas A. Holland
---------------------------- --------------------------------
Thomas A. Holland
Executive Vice President and
Chief Financial Officer
(Principal Financial and
Accounting Officer)
15
<PAGE> 16
TRANSCONTINENTAL REALTY INVESTORS, INC.
EXHIBITS TO
QUARTERLY REPORT ON FORM 10-Q
For the Three Months ended March 31, 1996
<TABLE>
<CAPTION>
Exhibit Page
Number Description Number
- ------- --------------------------------------------------- ------
<S> <C> <C>
27.0 Financial Data Schedule 17
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 5,089
<SECURITIES> 0
<RECEIVABLES> 10,214
<ALLOWANCES> 989
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 266,969
<DEPRECIATION> 44,554
<TOTAL-ASSETS> 250,223
<CURRENT-LIABILITIES> 0
<BONDS> 155,298
<COMMON> 40
0
0
<OTHER-SE> 87,790
<TOTAL-LIABILITY-AND-EQUITY> 250,223
<SALES> 0
<TOTAL-REVENUES> 11,158
<CGS> 0
<TOTAL-COSTS> 7,417
<OTHER-EXPENSES> 2,067
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,754
<INCOME-PRETAX> (2,771)
<INCOME-TAX> 0
<INCOME-CONTINUING> (2,771)
<DISCONTINUED> 0
<EXTRAORDINARY> 48
<CHANGES> 0
<NET-INCOME> (1,073)
<EPS-PRIMARY> (.27)
<EPS-DILUTED> (.27)
</TABLE>
