General American Realty Investors, Inc.

Company profile

General American Realty Investors, Inc. is a Nevada corporation that operates as a fully integrated, externally managed real estate company. Its core activities include acquisition, development, ownership and management of income-producing multifamily and commercial properties, investments in mortgage notes receivable, and holdings of land for appreciation or development.

Corporate structure (as of December 31, 2025)

• Owns approximately 78.4% of the common stock of Transcontinental Realty Investors, Inc. (TCI) and conducts most operations through TCI.
• TCI owns about 84.6% of Income Opportunity Realty Investors, Inc. (IOR), which is publicly listed on NYSE American as IOR.
• Controlling stockholder Realty Advisors, Inc. (RAI) owns about 90.8% of the Company’s common stock.
• Officers and directors of the Company also serve as officers or directors of TCI.

Management

• Pillar Income Asset Management, Inc. (Pillar) manages the Company under an Advisory Agreement and a Cash Management Agreement, which the Board reviews annually.
• Pillar is wholly owned by RAI and also serves as the Advisor and Cash Manager to TCI and IOR.
• Pillar locates, evaluates and recommends real estate-related investment opportunities and arranges debt and equity financing.
• The Company has no employees; it relies on Pillar’s personnel to provide services under the agreements.
• The Company competes with related parties of Pillar for investment opportunities; Pillar has stated it will act in a fair and reasonable manner under applicable law.

Portfolio overview (as of December 31, 2025)

Residential properties

• In operation: 13 properties, 2,128 units.
• In lease-up: 3 properties, 672 units.
• Under development: 1 property, 234 units.
• Occupancies for listed properties range from 84.0% to 98.6% (examples in the property table).

Commercial properties

• 4 properties with a combined rentable area of 1,001,549 square feet.

Land investments

• Approximately 1,792 acres of land, both developed and undeveloped.
• Held for development: 1,691 acres (including Windmill Farms with 1,482 acres).
• Held subject to sales contract: 101 acres.

The portfolio includes multifamily and office properties, with some assets managed by third-party managers (including Regis Realty Prime, LLC) and others managed under Pillar’s oversight.

Recent activity (2025)

Dispositions

• March 25, 2025: Condemnation settlement produced $3.5 million in proceeds and a $3.1 million gain on sale related to 11.2 acres conveyed from Windmill Farms.
• October 10, 2025: Sold Villas at Bon Secour (200-unit multifamily property in Gulf Shores, AL) for $28.0 million; gain on sale of $12.2 million.
• 2025: Sold 72 single-family lots from Windmill Farms for $3.3 million; gain on sale of $2.6 million.

Financing

• May 30, 2025: Paid off $10.8 million loan on 770 South Post Oak with cash on hand.
• October 10, 2025: Paid off $18.8 million loan on Villas at Bon Secour in connection with the sale.

Development

• 2025 development expenditures: $69.0 million for Alera (240 units, Lake Wales, FL), Bandera Ridge (216 units, Temple, TX), Merano (216 units, McKinney, TX), and Mountain Creek (234 units, Dallas, TX).
• Construction loan borrowings for development: $63.8 million.
• Alera, Bandera Ridge and Merano were substantially completed in 2025; Mountain Creek is expected to complete in 2026.

Business plan and investment policy

• Strategy: Maximize long-term value for stockholders by acquiring, developing and owning income-producing multifamily properties, with a geographic focus in the Southern United States and generally long-term holdings.
• Operating emphasis: Maintain high occupancy, competitive rents and controlled costs; opportunistically acquire commercial properties and land for future development; occasional sales of land or income-producing properties.
• Investments include mortgage receivables, including notes from Unified Housing Foundation, Inc. (UHF), which is treated as a related party due to an ongoing relationship.
• Financing sources: Operating cash flow, proceeds from sales and debt (primarily property-specific first-lien mortgage loans from banks and institutional lenders).
• A substantial portion of debt is insured by HUD, which offers lower rates and longer maturities but requires extensive regulatory compliance.
• Development approach: Increased use of partnerships or joint ventures and collaboration with third-party developers. Pillar may act as Developer on some projects. In certain arrangements, convertible loans to developers may be used with potential conversion to ownership.

Segments

• Two primary operating segments:
  • Multifamily properties: acquisition, development, ownership and management.
  • Commercial properties (office): acquisition, development, ownership and management.
• See Note 5 to the consolidated financial statements for segment reporting detail.

Employees

• The Company has no employees. Pillar’s personnel provide management and administrative services under the Advisory and Cash Management Agreements.

Financial highlights (as of December 31, 2025)

• Total indebtedness: approximately $277.6 million.
• HUD-insured mortgage notes payable: $123.6 million (about 58% of mortgage notes payable).
• 2025 development expenditures: $69.0 million.
• Construction loan borrowings for development: $63.8 million.
• Notable gains from dispositions in 2025: $3.1 million (condemnation-related), $12.2 million (Villas at Bon Secour), $2.6 million (Windmill Farms lot sales).
• Example property-level occupancy: 770 South Post Oak — 61.7%; Browning Place — 55.4%; Senlac — 100.0%; Stanford Center — 64.9%.
• Commercial lease expirations: The lease expirations table shows annual expirations through 2030 and thereafter, with a total of 63 leases representing 588,185 square feet expiring across 2026–Thereafter.

Access to information

• Website: www.americanrealtyinvest.com
• The Company posts annual reports (Form 10-K), quarterly reports (Form 10-Q), current reports (Form 8-K) and other filings, along with governance documents, on its website.