Transcontinental Realty Investors, Inc. (TCI): Business Model Canvas [Dec-2025 Updated]

You're digging into Transcontinental Realty Investors, Inc. (TCI) to see how they actually make money, and honestly, mapping out their Business Model Canvas is the clearest way to cut through the noise. As someone who's spent two decades dissecting these structures, I can tell you TCI is balancing a $1.083 billion asset base-a mix of land, commercial, and multifamily-while pushing significant capital expenditure, like the $26.3 million seen in Q1 2025. The key tension right now is clear: stellar multifamily occupancy at 94% versus a softer commercial side at 58% in Q3 2025, all managed through their external partner. If you want to see exactly how they generate that $12.8 million revenue stream and where the risks lie in their land development sales, dive into the full breakdown below; it shows their entire operational blueprint.

Transcontinental Realty Investors, Inc. (TCI) - Canvas Business Model: Key Partnerships

Pillar Income Asset Management, Inc. (External Manager)

Pillar Income Asset Management, Inc. serves as the external manager for Transcontinental Realty Investors, Inc. under an Advisory Agreement and a Cash Management Agreement, reviewed annually by the Board of Directors. Pillar arranges debt and equity financing with third party lenders and investors.

Majority ownership in Income Opportunity Realty Investors, Inc. (IOR)

Transcontinental Realty Investors, Inc. holds a significant ownership position in Income Opportunity Realty Investors, Inc. (IOR). The company's intention in early 2025 was to increase its current ownership investment of over 80% of IOR common stock.

Financial institutions for debt financing and mortgage notes

Transcontinental Realty Investors, Inc. utilizes financial institutions for debt financing, including construction loans and mortgage notes. The company also holds mortgage receivables.

Institutional investors and large funds

The level of institutional investment in Transcontinental Realty Investors, Inc. as of the first quarter of 2025 was:

• Institutional Ownership: 3.71%

Single-family home builders for land development sales

Transcontinental Realty Investors, Inc. engages in land development sales, including transactions with single-family home builders. The company holds land for development sales.

• Lots Sold from Windmill Farms: 30 lots
• Sale Proceeds (Q2 2025): $1.4 million
• Gain on Sale (Q2 2025): $1.1 million
• Lots Sold from Windmill Farms (Q1 2025): 30 lots
• Sale Proceeds (Q1 2025): $1.4 million

Transcontinental Realty Investors, Inc. (TCI) - Canvas Business Model: Key Activities

You're looking at the core actions Transcontinental Realty Investors, Inc. (TCI) takes to run its business, grounded in their latest reported numbers.

Acquisition and development of new real estate assets

The development pipeline is active, though recent acquisitions were not reported for the three months ended September 30, 2025. Development activity is focused on multifamily projects, specifically Alera, Bandera Ridge, and Merano, which reached a milestone in Q3 2025.

• Development projects receiving initial completed units (Q3 2025): Alera, Bandera Ridge, Merano.
• Shares of common stock acquired via Tender Offer (completed January 29, 2025): 21,678 shares for a total cost of $0.5 million.

Active management of multifamily and commercial properties

Active management centers on driving occupancy and rental revenue across the existing portfolio of multifamily and commercial properties located throughout the Southern United States. Performance metrics as of September 30, 2025, show strong multifamily performance.

Strategic disposition of non-core properties and land lots

Transcontinental Realty Investors, Inc. (TCI) strategically sells assets, including land lots and stabilized properties, to realize gains and manage the portfolio. The activity of selling land lots is tied to infrastructure development in Windmill Farms.

• Gain on sale from 30 single family lots in Windmill Farms (Q1 2025): $1.1 million.
• Sale price for 30 single family lots in Windmill Farms (Q1 2025): $1.4 million.
• Sale of Villas at Bon Secour (200 unit multifamily property) on October 10, 2025, for $28,000.
• Loan paid off from Villas at Bon Secour sale: $18,767.

Managing mortgage notes receivable portfolio

The company maintains an investment in mortgage notes receivable, which are instruments that can be converted into full ownership of the underlying development properties at Transcontinental Realty Investors, Inc. (TCI)'s option. While specific portfolio size as of late 2025 isn't explicitly stated, the activity involves managing these notes which fund development.

The land management activity is linked to infrastructure development, resulting in receivables.

• District Receivables balance related to Windmill Farms infrastructure (as of December 31, 2024): $55.7 million.

Lease-up and stabilization of new development units

This activity begins once development tranches are completed, as seen with the Q3 2025 projects. The costs associated with this are reflected in operating expenses.

• Increase in operating expenses for Q3 2025 was primarily due to an increase in the cost of the lease-up properties.
• Net operating loss decreased from $1.7 million (Q3 2024) to $1.4 million (Q3 2025), partially offset by revenue increases.

Transcontinental Realty Investors, Inc. (TCI) - Canvas Business Model: Key Resources

You're looking for the hard numbers that back up Transcontinental Realty Investors, Inc.'s (TCI) foundation, so let's get straight to the assets that power the operation as of mid-2025.

The core of Transcontinental Realty Investors, Inc.'s (TCI) Key Resources is its tangible real estate holdings and strategic investments. The company operates high quality multifamily and commercial properties, mainly in the Southern United States, and also holds land for appreciation or future development. This mix of income-producing assets and long-term land plays is central to its strategy.

Here are the latest figures we have on the balance sheet and key holdings:

The total value of the company's holdings is substantial. As reported for the first quarter ending March 31, 2025, Transcontinental Realty Investors, Inc. (TCI) reported Total Assets valued at over $1.083 billion. This was an increase from $1.070 billion at the close of Q4 2024. Shareholders' Equity also saw a bump, reaching $837.259 million as of Q1 2025.

The physical portfolio metrics from the end of Q1 2025 give you a clearer picture of the operational base:

• Total occupancy across the portfolio stood at 80%.
• Multifamily properties maintained a strong 94% occupancy rate.
• Commercial properties reported a 53% occupancy rate.
• Multifamily segment revenue for Q1 2025 was $8.764 million.
• Commercial segment revenue for Q1 2025 was $3.244 million.

Transcontinental Realty Investors, Inc. (TCI) also maintains a significant financial resource through its strategic Investment in Income Opportunity Realty Investors, Inc. (IOR). TCI is a major shareholder, owning approximately 83.2% of IOR's common stock as of December 31, 2024. The accumulation continued into 2025; for instance, in January 2025, TCI purchased 21,678 shares of IOR for $390,204. By May 2025, total holdings had increased to 3,435,222 shares. Honestly, one report noted TCI invested over $800,000 in IOR shares over the six months leading up to July 2025.

The management structure itself is a key resource, relying on External management expertise from Pillar Income Asset Management. Pillar Income Asset Management, Inc. ("Pillar") acts as the contractual Advisor and Cash Manager for Transcontinental Realty Investors, Inc. (TCI) under an Advisory Agreement. Pillar is responsible for locating, evaluating, and recommending real estate investment opportunities, plus arranging debt and equity financing.

For capital access, Transcontinental Realty Investors, Inc. (TCI) leverages its dual listing structure. TCI itself is listed on the New York Stock Exchange (NYSE) under the symbol "TCI". Furthermore, substantially all of its assets are held by its wholly-owned subsidiary, Southern Properties Capital Ltd. ("SPC"), which was formed specifically to raise funds by issuing non-convertible bonds that are listed and traded on the Tel-Aviv Stock Exchange ('TASE').

Here's a quick snapshot of the latest reported financial and asset scale:

To give you a sense of the underlying portfolio composition as of late 2022, which informs the current asset base, the portfolio included:

• Four office buildings, totaling approximately 1,056,793 square feet.
• Fourteen multifamily properties, comprising 2,328 units.
• Approximately 1,858 acres of developed and undeveloped land.

Finance: draft 13-week cash view by Friday.

Transcontinental Realty Investors, Inc. (TCI) - Canvas Business Model: Value Propositions

Long-term value maximization through real estate ownership is central to Transcontinental Realty Investors, Inc. (TCI)'s proposition. This is supported by a balance sheet showing $1.083 billion in Total Assets as of March 31, 2025.

The value is derived from a diversified portfolio approach. Transcontinental Realty Investors, Inc. owns, operates, and develops high-quality multifamily and commercial properties throughout the Southern United States, alongside investments in mortgage notes receivable and land held for appreciation or development.

Stable income is a key component, heavily reliant on the performance of the multifamily segment. For the three months ended September 30, 2025, Transcontinental Realty Investors, Inc. reported a 94% occupancy rate at its multifamily properties. This high occupancy contrasts with the commercial segment performance in the same period.

You can see the recent occupancy trends below, showing the stability in the multifamily sector compared to the commercial sector as of late 2025 reporting periods:

Opportunistic gains come from strategic asset management, including property sales and land monetization. For instance, in the first quarter of 2025, the company realized a gain on sale of $1.1 million from selling 30 single-family lots in Windmill Farms. Furthermore, the net income for Q3 2025 of $0.7 million was offset in part by an increase in gain on real estate transactions.

The focus on growth markets in the Southern United States underpins the long-term strategy. This focus is evidenced by capital deployment, such as obtaining a $27.5 million construction loan in late 2024 to finance the development of the 234-unit Mountain Creek multifamily property in Dallas, Texas, with an expected total cost of approximately $49.8 million. Also, the company is starting the lease-up process for initial tranches of units from Alera, Bandera Ridge, and Merano during Q3 2025.

The value proposition includes:

• Long-term capital preservation through owned real estate assets.
• Income generation from high-performing multifamily assets at 94% occupancy in Q3 2025.
• Strategic realization of value from land holdings, such as the $1.1 million gain in Q1 2025.
• Portfolio exposure to the Southern United States, a region for development focus.
• Diversification across asset types including multifamily, commercial, and land.

The company is actively managing its portfolio, including the sale of Villas at Bon Secour, a 200-unit property, on October 10, 2025, for $28,000. The Q1 2025 results showed a significant net income of $4.6 million on total revenues of $12.008 million.

Transcontinental Realty Investors, Inc. (TCI) - Canvas Business Model: Customer Relationships

You're looking at how Transcontinental Realty Investors, Inc. (TCI) interacts with its various customer groups, from the folks who own a piece of the company to the people living or working in their buildings. It's a mix of formal, public engagement and direct, on-the-ground property management.

Transactional relationship with public shareholders

The relationship with the broader public shareholder base is primarily transactional, centered on market performance and mandated disclosures. Transcontinental Realty Investors, Inc. trades on the NYSE under the symbol TCI. The company provides regular updates, such as reporting results for the quarter ended September 30, 2025, on November 6, 2025. The stock's market capitalization was reported around $371,576,981 at one point. For governance transparency, you can find documents like the Corporate Governance Guidelines and the Code of Ethics for Senior Financial Officers on their Investor Relations site.

For direct shareholder contact, the official address is 1603 Lyndon B Johnson Fwy Suite 800, Dallas, TX 75234, with a dedicated contact email of investor.relations@transconrealty-invest.com and a phone line at 800-400-6407. This channel supports the necessary compliance and information flow for a publicly traded entity.

Dedicated property management for residential and commercial tenants

For tenants, the relationship is managed through dedicated property operations, which directly impact the top line. Occupancy levels are a key metric here. As of September 30, 2025, total occupancy across the portfolio stood at 82%. This breaks down significantly by segment:

• Multifamily properties achieved 94% occupancy.
• Commercial properties were at 58% occupancy.

This operational performance directly translates to revenue. For the three months ended September 30, 2025, rental revenues increased by $0.3 million from multifamily properties and $1.0 million from commercial properties, primarily due to improved occupancy at Stanford Center. Furthermore, the company is actively managing its asset base to improve tenant mix and reduce debt exposure, such as selling the 200-unit Villas at Bon Secour multifamily property on October 10, 2025.

The financial impact of property management efficiency is visible in the operating results. For instance, the net operating loss decreased from $1.7 million in Q3 2024 to $1.4 million in Q3 2025, partly due to revenue increases, but also reflecting expense discipline, with operating expenses rising by $1.0 million but being offset by a $1.2 million revenue increase.

Direct investor relations for institutional stakeholders

Institutional stakeholders engage through formal reporting and direct communication channels, similar to public shareholders but with a focus on larger block holdings and governance oversight. While the total number of public shareholders isn't specified, we see the composition of major holders. BlackRock, Inc., for example, held 81,822 shares, representing 0.95% of the company, as reported on September 29, 2025. Other major institutional holders include The Vanguard Group, Inc. and State Street Corp. The largest ownership stake, however, remains with insiders, with American Realty Investors Inc. holding 176.84% of the company.

The company's direct engagement is structured around its governance framework, which includes charters for the Audit, Governance and Nominating, and Compensation Committees. This structure is what institutional investors rely on for oversight.

Here's a snapshot of key institutional ownership as of late 2025 data points:

Automated leasing and maintenance systems for properties

Transcontinental Realty Investors, Inc. (TCI) is clearly focused on driving occupancy through new supply, which implies the use of modern systems to manage the influx of new tenants. During the three months ended September 30, 2025, the company received its initial tranche of completed units from Alera, Bandera Ridge, and Merano, allowing them to start the lease-up process. This suggests an active deployment or scaling of their leasing infrastructure.

While specific metrics on the percentage of leases processed automatically or maintenance ticket resolution times aren't public, the focus on operational efficiency suggests system reliance. For instance, a $10.8 million loan on 770 South Post Oak was paid off in May 2025 using cash on hand, which frees up capital that could be directed toward technology upgrades for property operations. Also, Q2 2025 saw a $1.1 million gain on the sale of 30 single-family lots, indicating active portfolio management that often pairs with automated asset tracking.

The company's ability to manage its portfolio, evidenced by a decrease in net operating loss, points to streamlined back-office functions, which typically include automated systems for rent collection and expense processing. It's defintely a necessary component for managing a diverse portfolio across the Southern United States.

Finance: draft 13-week cash view by Friday.

Transcontinental Realty Investors, Inc. (TCI) - Canvas Business Model: Channels

New York Stock Exchange (NYSE: TCI) for common stock trading

Direct property leasing offices and online platforms

• Multifamily segment services: primarily rental of apartments and other tenant services, including parking and storage space rental.
• Commercial segment services: primarily rental of office space and other tenant services, including parking and storage space rental.

Real estate brokers and agents for property sales and acquisitions

SEC filings and Investor Relations website for financial disclosure

• Investor Relations Website: http://www.transconrealty-invest.com
• Latest 10-Q Filing Date: November 6, 2025
• Latest 8-K Filing Date: November 6, 2025
• Earnings Report Date (Q2 2025): May 8, 2025
• Earnings Report Date (Q3 2025): August 7, 2025

Stock trading metrics as of December 7, 2025

Transcontinental Realty Investors, Inc. (TCI) - Canvas Business Model: Customer Segments

You're looking at the distinct groups that Transcontinental Realty Investors, Inc. (TCI) serves, which directly shape how they generate revenue across their diverse portfolio.

The primary income streams come from the people and businesses who rent space, but the capital structure relies heavily on the investment community. Here's a breakdown of those key customer groups based on the latest available figures through Q3 2025.

Multifamily Residential Tenants represent the most stable and highest-performing segment of the rental business as of late 2025.

• Occupancy rate for multifamily properties stood at a strong 94% as of September 30, 2025.
• Multifamily properties contributed to a $0.3 million increase in rental revenue for Q3 2025 compared to Q3 2024.

Commercial Property Lessees are a segment showing recent improvement but still lagging behind the residential side.

• Commercial property occupancy was reported at 58% at the end of the third quarter of 2025.
• This segment saw a significant revenue boost, with a $1.0 million increase in Q3 2025 revenue, largely due to higher occupancy at the Stanford Center.

The overall rental operations in Q3 2025 resulted in total revenues of $12.8 million, with a total occupancy across all properties at 82%.

For the capital-raising side, Transcontinental Realty Investors, Inc. (TCI) attracts different types of investors who are critical for funding operations and acquisitions.

Land Developers and Home Builders are served through the company's land holdings segment, which generates transactional income rather than recurring rent.

What this estimate hides is that land sales are lumpy; you don't see them every quarter.

• In Q2 2025, Transcontinental Realty Investors, Inc. sold 30 single family lots from Windmill Farms.
• The proceeds from those 30 lots totaled $1.4 million in Q2 2025.
• That Q2 2025 transaction resulted in a gain on sale of $1.1 million.

The company reported a net income attributable to common shares of $0.7 million for the third quarter of 2025. Finance: draft 13-week cash view by Friday.

Transcontinental Realty Investors, Inc. (TCI) - Canvas Business Model: Cost Structure

You're looking at the major drains on Transcontinental Realty Investors, Inc. (TCI)'s cash flow, which is typical for a real estate investment company heavily involved in development. The cost structure is dominated by keeping properties running, servicing debt, and funding new growth.

Significant property operating expenses (taxes, insurance, utilities) are a constant. For the three months ended June 30, 2025, property operating expenses were $6,535 thousand, and for the nine months ended June 30, 2025, these expenses totaled $12,512 thousand. Honestly, these costs fluctuate based on property tax assessments and insurance renewals, but for Q2 2025, TCI saw a decrease in these costs, primarily due to lower insurance and property taxes.

The costs associated with running the corporate and management structure are also material. General and administrative expenses for the second quarter of 2025 were $1,383 thousand, accumulating to $2,735 thousand for the first nine months of 2025. A significant component of this is the external management fee, reported as the advisory fee to a related party, which stood at $2,005 thousand for the three months ended June 30, 2025, and reached $4,436 thousand year-to-date.

Development is a major capital user. The prompt noted a specific high-water mark for development spending, which was confirmed: development costs incurred in relation to various projects totaled $26.3 million in Q1 2025. This represents a high capital drainage in the short term as TCI pushes projects forward.

Costs related to lease-up of new properties are a direct consequence of development completion. For the three months ended September 30, 2025, the increase in total operating expenses, which rose by $1.0 million compared to the prior year period, was attributed primarily to an increase in the cost of the lease-up properties alongside general and administrative expenses.

Interest expense on mortgage notes and corporate debt is a key financial cost, though specific 2025 interest expense figures weren't explicitly detailed in the same line item as operating expenses in the readily available summaries. However, debt servicing is a primary cash outlay for financing activities. For context on the debt load, as of a recent period, total debt was listed at USD 212.41M.

Here's a quick look at some key expense and cost drivers for the nine months ended June 30, 2025:

You should keep an eye on these cost centers:

• Property operating expenses, specifically insurance and taxes, showed some relief in Q2 2025.
• Development spending, exemplified by the $26.3 million in Q1 2025, is a major, lumpy cash user.
• Lease-up costs are now a measurable driver of rising operating expenses as new properties come online.
• Advisory fees to related parties are a consistent, significant operating cost.

Transcontinental Realty Investors, Inc. (TCI) - Canvas Business Model: Revenue Streams

You're looking at the top-line drivers for Transcontinental Realty Investors, Inc. (TCI) as of late 2025. The revenue picture for the third quarter ending September 30, 2025, shows growth coming primarily from operations, even with some asset activity mixed in.

Total Revenue for the three months ended September 30, 2025, hit $12.8 million. That's a nice bump up, increasing by $1.2 million compared to the $11.6 million reported in the same period of 2024.

The core of that increase comes from the rental side of the business. Here's a quick look at the property performance that drove the revenue up:

• Rental revenues from multifamily properties increased by $0.3 million.
• Rental revenues from commercial properties increased by $1.0 million.

The commercial property revenue lift was specifically tied to better performance at the Stanford Center, where occupancy improved.

Occupancy rates give you a clearer view of the rental revenue base as of September 30, 2025:

Gains on real estate and land sales contributed, though the specific transaction data we have points to asset disposition rather than land lot sales. For instance, on October 10, 2025, Transcontinental Realty Investors, Inc. sold the Villas at Bon Secour, a 200 unit multifamily property in Gulf Shores, Alabama, for $28,000. The company used those proceeds to pay off a $18,767 loan on that property and for general corporate purposes. The overall increase in net income was partially offset by a decrease in interest income, but it was helped in part by an increase in gain on real estate transactions for the quarter.

Interest income from mortgage notes receivable was a component of revenue, but reports indicate this stream saw a decrease for the three months ended September 30, 2025, compared to the prior year period. That reduction in interest income was one factor contributing to the decrease in net income attributable to the Company, which fell from $1.7 million in Q3 2024 to $0.7 million in Q3 2025.

Finance: draft 13-week cash view by Friday.