Transcontinental Realty Investors, Inc. (NYSE: TCI) is a real estate operating company that acquires, develops, and manages a diverse portfolio of properties primarily located across the southern United States. Headquartered in Dallas, Texas, the company operates through two main business segments: multifamily properties and commercial properties. The multifamily segment serves as the company's primary revenue driver, consisting of over a dozen stabilized apartment communities and several additional properties currently in the lease-up or development phases. The commercial segment comprises a portfolio of office buildings that generate stable leasing revenue.
TCI generates the vast majority of its operating revenue from rental income collected from its residential and commercial tenants. This core income is supplemented by property sales, real estate development activities, and interest income derived from investments in mortgage notes receivable. In addition to its active operating portfolio, the company holds significant acreage of developed and undeveloped land intended for future appreciation or strategic development.
TCI is externally managed by Pillar Income Asset Management, Inc., which oversees its day-to-day operations, and the company is majority-owned by American Realty Investors, Inc. (ARL). Notably, while TCI is a real estate investment company, it does not elect to be taxed as a Real Estate Investment Trust (REIT). Instead, it operates as a traditional corporate entity, allowing it to reinvest its earnings and capital back into property development, acquisitions, and debt reduction rather than distributing the majority of its taxable income as shareholder dividends.
