Executive Summary

Q4 2024 printed modest profitability: net income attributable to common shareholders was $0.1M ($0.01 diluted EPS) vs a loss of $(2.6)M (=$(0.30) EPS) in Q4 2023, driven by lower depreciation and fewer asset write-downs despite softer rental revenue from lower commercial occupancy .
Revenue mix remained pressured by commercial vacancies; rental revenues fell to $11.2M from $12.8M YoY, though total revenue of $11.8M was roughly flat sequentially vs Q3’s $11.6M as multifamily strength and interest income provided support .
Operational catalysts into 2025: a 45k sf Stanford Center lease (commencing April 2025) lifts occupancy by 14 pts at that asset and boosts rent psf by 20%; a $27.5M construction loan funds the 234‑unit “Mountain Creek” multifamily development expected to complete in 2026; 30 Windmill Farms lots sold for $1.4M with a $1.1M gain .
No formal guidance or earnings call transcript was provided; Street consensus from S&P Global was not available at the time of analysis, limiting beat/miss assessment (consensus unavailable) . Consensus via S&P Global unavailable at the time of analysis.

What Went Well and What Went Wrong

What Went Well

Return to profitability: Net income attributable to the Company improved to $0.1M ($0.01 EPS) from a $(2.6)M loss (=$(0.30) EPS) a year ago, aided by a $1.2M YoY decline in depreciation and fewer asset write-downs .
Leasing momentum at Stanford Center: New 45k sf lease raises property occupancy by 14 pts and rent psf by 20% vs recent expirations; commencement in April 2025 creates near-term NOI uplift visibility .
Capital formation for growth: Secured a $27.5M construction loan (SOFR+3.45%, maturing Oct 20, 2026) to fund the 234‑unit Mountain Creek multifamily development, supporting forward pipeline value creation .

What Went Wrong

Commercial softness: Rental revenues declined $1.6M YoY to $11.2M, primarily from lower commercial occupancy (commercial occupancy 53% at 12/31/24) .
Operating results still show losses at the property level: Net operating loss was $(1.7)M in Q4 (vs $(2.1)M LY), reflecting ongoing pressure from vacancies and operating costs despite lower depreciation .
Interest income normalization and taxes: Interest income was $4.6M (down vs Q3’s $5.9M) while tax provision rose vs LY, partially offsetting operating improvements .

Financial Results

P&L snapshot (USD millions, except per-share)

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Rental revenues	$12.787	$11.188	$11.074	$11.222
Total revenue	$13.453	$11.773	$11.607	$11.791
Total operating expenses	$15.584	$12.855	$13.276	$13.481
Net operating loss	$(2.131)	$(1.082)	$(1.669)	$(1.690)
Interest income	$3.022	$5.200	$5.917	$4.642
Interest expense	$(1.876)	$(1.862)	$(2.075)	$(1.836)
Net income attributable to the Company	$(2.561)	$1.498	$1.707	$0.108
Diluted EPS	$(0.30)	$0.17	$0.20	$0.01

Notes:

Q4 YoY rental revenue decrease of $1.6M reflected lower commercial occupancy; operating loss narrowed YoY primarily from lower depreciation .
Sequentially, total revenue was slightly higher vs Q3 ($11.8M vs $11.6M), while interest income stepped down from Q3’s elevated level .

Occupancy and leasing KPIs

KPI	Q2 2024	Q3 2024	Q4 2024
Total occupancy	78%	79%	81%
Multifamily occupancy	93%	95%	94%
Commercial occupancy	49%	48%	53%
Stanford Center lease	—	Executed Oct 18, 2024; +14 pts occupancy and +20% rent psf, starts Apr 2025	As noted; commencement Apr 2025

No segment revenue breakout was disclosed in press materials .

Estimate comparison

Consensus EPS and revenue for Q4 2024 from S&P Global were unavailable at the time of analysis (API access limit). As a result, we cannot quantify beat/miss vs Street for this quarter. Consensus via S&P Global unavailable at the time of analysis.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Company guidance	FY 2025/Quarterly	N/A	No formal guidance provided in Q4 press release/8‑K	Maintained (no guidance)

No discussion of revenue, margin, OpEx, OI&E, tax rate, segment targets, or dividends was provided in the Q4 2024 materials .

Earnings Call Themes & Trends

No earnings call transcript was found for Q4 2024 (none listed in document catalog) [List: 0 earnings-call-transcript].

Topic	Previous Mentions (Q2, Q3)	Current Period (Q4 2024)	Trend
Occupancy & leasing	Total occupancy 78% (Q2) and 79% (Q3); commercial 49%→48%; Stanford Center lease executed in Oct (Q3)	Total occupancy up to 81%; commercial improved to 53%; Stanford lease to commence Apr 2025	Improving (commercial vacancy easing)
Development pipeline	Forest Grove loan refinancing (Q3)	$27.5M construction loan for 234‑unit Mountain Creek; completion expected 2026	Building backlog (multifamily)
Capital structure/cost of capital	Forest Grove loan at SOFR+1.85% (matures 2031)	Mountain Creek loan at SOFR+3.45% (matures 2026)	Higher spreads on new construction
Dispositions	No material lot sales noted in Q2/Q3 press releases	Sold 30 lots at Windmill Farms for $1.4M; $1.1M gain	Opportunistic monetization
Interest income	$5.2M (Q2) and $5.9M (Q3) from investments/receivables	$4.6M in Q4; remains a material earnings lever	Moderating QoQ

Management Commentary

“Rental revenues decreased $1.6 million from $12.8 million for the three months ended December 31, 2023 to $11.2 million for the three months ended December 31, 2024. The decrease in rental revenue is primarily due to a decrease in occupancy at our commercial properties.” (Press release) .
“Net operating loss decreased $0.4 million... due to a $2.1 million decrease in operating expenses offset in part by a $1.7 million decrease in revenues.” (Press release) .
“Net income (loss) attributable to the Company increased $2.7 million... primarily attributed to a decrease in loss on sale or write down of assets and an increase in interest income offset in part by an increase in the provision for income tax.” (Press release) .
Stanford Center leasing milestone: “first new lease... following our major renovation... 14% increase in occupancy... 20% increase in rent per square foot... expected to commence in April 2025.” (Press release) .
Growth funding: “obtained a $27.5 million construction loan... Mountain Creek... expected to be completed in 2026... bears interest at SOFR plus 3.45%.” (Press release) .

Q&A Highlights

No earnings call transcript was available; no Q&A commentary to report for Q4 2024 [List: 0 earnings-call-transcript].

Estimates Context

Street consensus from S&P Global for Q4 2024 EPS and revenue was not available at time of analysis due to data access limits, so we cannot determine a beat/miss versus consensus for this quarter. Consensus via S&P Global unavailable at the time of analysis.

Where estimates may need to adjust:

Given improved commercial occupancy into quarter-end and the forthcoming Stanford Center lease commencement in April 2025, sell-side models may modestly raise forward rent assumptions and occupancy for that asset; however, interest income moderation vs Q3 could temper EPS carry-over absent additional income drivers .

Key Takeaways for Investors

Q4 marked a return to marginal profitability, with operating losses narrowing YoY and less drag from depreciation and asset write-downs; EPS was $0.01 vs $(0.30) LY, indicating stabilization despite commercial softness .
Commercial occupancy inflected to 53% at year-end from 48% in Q3, aided by Stanford Center progress; this, plus a locked-in new lease starting April 2025, sets up sequential rent recovery in 2025 .
Multifamily remains the anchor (mid‑90s occupancy), while Mountain Creek’s funded development adds medium‑term NAV growth potential into 2026 completion .
Interest income remains a material contributor ($4.6M in Q4) but moderated from Q3 levels; monitoring this line is key for near-term EPS sensitivity .
No formal guidance or call; trading likely keys off leasing execution, commercial occupancy trajectory, and visibility into development milestones and capital markets (loan terms/spreads) .
Near-term setup: watch for Stanford Center lease commencement and additional leasing wins to drive occupancy and rent psf uplift; disposition activity (e.g., lot sales) could provide incremental gains .
Risk checks: lingering commercial vacancies, higher construction loan spreads (SOFR+3.45%), and variability in interest income/tax can introduce earnings volatility .

Citations:

Q4 2024 8‑K and press release (Item 2.02; EX‑99.1)
Q4 2024 standalone press release (duplicative content)
Q3 2024 press release and 8‑K (EX‑99.1)
Q2 2024 press release and 8‑K (EX‑99.1)

TRANSCONTINENTAL REALTY INVESTORS INC (TCI)·Q4 2024 Earnings Summary