TRANSCONTINENTAL REALTY INVESTORS INC

Transcontinental Realty Investors, Inc. (NYSE: TCI) operates as a fully integrated externally managed real estate company focused on acquiring, developing, and managing income-producing properties throughout the Southern United States. The company maintains its website at www.transconrealty-invest.com.

The company operates two primary business segments: multifamily residential properties and commercial office properties. As of December 31, 2025, TCI's multifamily portfolio comprises thirteen operating properties with 2,128 units, three properties in lease-up containing 672 units, and one property under development with 234 units. The commercial segment includes four office buildings totaling approximately 1.0 million rentable square feet. Additionally, TCI holds approximately 1,792 acres of developed and undeveloped land, including significant holdings in Windmill Farms in Kaufman County, Texas.

TCI is externally managed by Pillar Income Asset Management, Inc., which handles property acquisition, evaluation, financing arrangements, and overall strategic direction. The company has no employees and relies entirely on Pillar's personnel to execute its business operations. All multifamily properties and one commercial property are managed by third-party management companies, while three commercial properties are managed by Regis Realty Prime, LLC.

The company is controlled by American Realty Investors, Inc. (NYSE: ARL), which owns approximately 78.4 percent of TCI's common stock. TCI in turn owns approximately 84.6 percent of Income Opportunity Realty Investors, Inc. (NYSE American: IOR), creating a vertically integrated real estate investment structure. This corporate arrangement allows for coordinated investment strategies while maintaining separate public entities.

TCI's business strategy emphasizes long-term value creation through property ownership in secondary markets, with a focus on maintaining high occupancy rates and controlling operating costs. The company finances operations through cash flow from property operations, proceeds from property dispositions, and debt financing primarily consisting of property-specific first-lien mortgage loans. A significant portion of multifamily debt is insured by the Department of Housing and Urban Development, providing favorable interest rates and extended loan terms.