American Realty Investors | 10-Q: FY2026 Q1 Revenue: USD 12.34 M

Revenue: As of FY2026 Q1, the actual value is USD 12.34 M.

EPS: As of FY2026 Q1, the actual value is USD -0.03.

EBIT: As of FY2026 Q1, the actual value is USD -3.047 M.

Segment Revenue

• Multifamily Segment Revenue: For the three months ended March 31, 2026, revenue was $8,433 thousand, a decrease from $8,764 thousand for the same period in 2025 .
• Commercial Segment Revenue: For the three months ended March 31, 2026, revenue was $3,908 thousand, an increase from $3,244 thousand for the same period in 2025 .

Operational Metrics

• Multifamily Segment Net Operating Income (NOI): The multifamily segment reported an NOI of $3,039 thousand for the three months ended March 31, 2026, down from $4,725 thousand in the prior year period. This $1,686 thousand decrease was attributed to decreases of $700 thousand from Development Properties, $600 thousand from Same Properties, and $400 thousand from Disposition Property .
• Multifamily Operating Expenses: These expenses were $5,394 thousand in Q1 2026, up from $4,039 thousand in Q1 2025 .
• Commercial Segment Net Operating Income (NOI): The commercial segment’s NOI increased to $1,969 thousand for the three months ended March 31, 2026, compared to $1,306 thousand for the same period in 2025. This $663 thousand increase was primarily due to increased occupancy at Browning Place and Stanford Center .
• Commercial Operating Expenses: These expenses were $1,939 thousand in Q1 2026, remaining stable compared to $1,938 thousand in Q1 2025 .
• Total Net Operating Loss: The company reported a net operating loss of - $2,191 thousand for the three months ended March 31, 2026, compared to - $813 thousand for the same period in 2025 .
• Net (Loss) Income: American Realty Investors, Inc. reported a net loss of - $516 thousand for the three months ended March 31, 2026, a decrease from a net income of $3,963 thousand for the same period in 2025. The $4,479 thousand decrease was primarily due to a $1,700 thousand decrease in multifamily NOI, a $1,300 thousand decrease in net interest income, and a $3,500 thousand decrease in gain on sale or write-down of assets .
• General, Administrative and Advisory Expenses: These expenses amounted to - $3,569 thousand for the three months ended March 31, 2026, an improvement from - $3,961 thousand in the prior year period .
• Depreciation and Amortization: Depreciation and amortization expenses were - $3,630 thousand for the three months ended March 31, 2026, an increase from - $2,883 thousand for the same period in 2025 .

Cash Flow

• Net cash provided by operating activities: For the three months ended March 31, 2026, net cash provided by operating activities was $876 thousand, a significant improvement from net cash used in operating activities of - $7,408 thousand in the prior year period .
• Net cash used in investing activities: Net cash used in investing activities was - $4,436 thousand for the three months ended March 31, 2026, an improvement from - $16,630 thousand in the prior year period .
• Net cash (used in) provided by financing activities: Net cash used in financing activities was - $2,830 thousand for the three months ended March 31, 2026, a decrease from net cash provided by financing activities of $15,600 thousand in the prior year period .

Unique Metrics

• Funds From Operations (FFO): FFO for the three months ended March 31, 2026, was $3,292 thousand, down from $5,162 thousand for the same period in 2025 .

Future Outlook and Strategy

American Realty Investors, Inc. anticipates that its cash and cash equivalents, along with cash generated from notes receivable and short-term investments, will be sufficient to meet all cash requirements . The company plans to selectively sell land and income-producing assets, refinance or extend real estate debt, and seek additional borrowings secured by real estate to fulfill its liquidity needs . Development activities include the ongoing construction of Mountain Creek, a 234-unit multifamily property expected to be completed in 2027, and the stabilization of Alera, Bandera Ridge, and Merano properties in lease-up during 2026 .