Mortgage and loan interest was $14.6 million for the three months ended June 30, 2011. This represents a decrease of $1.1 million, as compared to the prior period interest expense of $15.7 million. This change, by segment, is a decrease in the commercial portfolio of $0.9 million, a decrease in the apartment portfolio of $0.3 million, a decrease in the land portfolio of $0.5 million, offset by an increase in the other portfolio of $0.6 million. The decrease in the apartment portfolio is primarily due to loans refinanced in 2010 at a lower interest rate, offset by the addition of several newly developed residential properties. The commercial portfolio has also had various loans restructured with reduced interest rates. The land portfolio had several land parcels sold during the past year and have satisfied their debt obligations, thereby reducing the interest expense.Provision for impairment was $25.4 million for the three months ended June 30, 2011. Impairment was recorded as an additional loss of $4.4 million in the commercial properties we currently hold and $21.0 million in land parcels that we currently hold. The majority of the impairment losses were taken on the properties that are treated as “subject to sales contract” where, subsequent to sale to a related party under common control, negotiations have occurred for property ownership transfers to the lender and estimated current property values are lower than our current basis.
Transcontinental Realty Investors, Inc. Reports Second Quarter 2011 Results
Check Out Our Best Services for Investors
Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.