Transcontinental Realty Q2 swings to net loss on higher operating expenses, lower interest income

• Multifamily lease-up — Revenue growth was driven by the lease-up of development multifamily properties.
• Commercial occupancy — Higher commercial property revenue was primarily due to increased occupancy at Stanford Center.
• Operating expenses — Net operating loss increased due to higher operating expenses from lease-up properties.

Transcontinental Realty said second-quarter revenue rose year over year, driven by higher multifamily and commercial occupancy. The company posted a Q2 net loss, mainly due to higher operating expenses and lower interest income.

The company reported Q2 rental revenues of $12.24 million and a net loss attributable to the company of $1.12 million. Operating income was -$2.34 million, while property operating expenses were $8.18 million.

The company said it sold 21 Windmill Farms lots in the second quarter, generating a $0.8 million gain on sale.

The company did not provide specific guidance or an outlook for future periods.