American Realty Investors, Inc. reported a net income of $9.8 million, or $0.60 per diluted share, for the quarter ended December 31, 2025, a turnaround from the $0.2 million loss ($0.01 per diluted share) recorded in the same quarter of 2024.
Revenue for the quarter rose to $13.0 million, up 8.3% year‑over‑year. The increase was driven by a $0.6 million gain in commercial property income—largely from higher occupancy at Stanford Center—and a $0.7 million gain in other income, partially offset by a $0.3 million decline in multifamily revenue.
Operating loss widened to $3.0 million from $1.8 million in Q4 2024, largely because operating expenses grew by $2.1 million, mainly from lease‑up costs for development properties. A $15.0 million gain on asset sales—primarily from the sale of Villas at Bon Secour—more than offset the operating loss and produced the reported net profit.
Full‑year 2025 revenue totaled $50.0 million, up from $47.3 million in 2024, while full‑year net income attributable to common shares improved to $15.7 million, or $0.97 per share, versus a net loss of $14.7 million ($0.91 per share) in 2024. The turnaround reflects the combined impact of asset disposals and improving occupancy rates.
The results underscore a strategic shift toward asset monetization and operational strengthening. The sale of Villas at Bon Secour not only generated a substantial one‑time gain but also provided liquidity that can support future development and reduce debt. Meanwhile, the rise in lease‑up costs signals ongoing investment in new properties, suggesting that the company is positioning itself for longer‑term growth as those developments reach full occupancy. Overall, the earnings release indicates a positive trajectory for American Realty Investors, with profitability restored and a clearer path to sustainable growth.
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