Transcontinental Realty Investors, Inc. (NYSE: TCI), a Dallas-based real estate investment company, today reported results of operations for the second quarter ended June 30, 2012. TCI announced today that the Company reported net income applicable to common shares of $2.0 million or $0.21 per diluted earnings per share, as compared to a net loss applicable to common shares of $14.5 million or $1.72 per diluted earnings per share for the same period ended 2011. Included in the net income applicable to common shares of $2.0 million is $5.4 million in depreciation and amortization expense for the three months ended June 30, 2012. For the same period ending June 30, 2011, included in the net loss applicable to common shares of $14.5 million is $3.6 million in depreciation and amortization expense and $0.4 million of impairment reserves on real estate assets and notes receivable.
Rental and other property revenues were $30.2 million for the three months ended June 30, 2012. This represents an increase of $1.9 million, as compared to the prior period revenues of $28.3 million. The change, by segment, is an increase in the apartment portfolio of $3.2 million, a decrease in the commercial portfolio of $1.2 million and a decrease in the land portfolio of $0.1 million. Within the apartment portfolio, there was an increase of $2.3 million due to the developed properties in the lease-up phase and an increase of $0.9 million in the same property portfolio. Our apartment portfolio continues to thrive in the current economic conditions with occupancies averaging over 95%. Within our commercial portfolio, the same properties decreased by $1.2 million. We continue to market our properties aggressively to attract new tenants and strive for continuous improvement of our properties in order to maintain our existing tenants.
Depreciation and amortization expenses were $5.4 million for the three months ended June 30, 2012. This represents an increase of $1.8 million, as compared to the prior period expenses of $3.6 million. This change is primarily due to an adjustment in the prior period, to reflect the cost basis for acquisitions from our parent, ARL. This adjustment reduced depreciation and amortization by $1.6 million. There was an increase of $0.2 million within the developed properties in the apartment portfolio as the buildings became substantially complete and depreciation began.
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