733590--3/31/2006--TRANSCONTINENTAL_REALTY_INVESTORS

related topics

{loan, real, estate}

{debt, indebtedness, cash}

{cost, contract, operation}

{investment, property, distribution}

{acquisition, growth, future}

{competitive, industry, competition}

{capital, credit, financial}

{stock, price, share}

Adverse events concerning TCI s existing tenants or negative market conditions affecting TCI s existing tenants could have an adverse impact on TCI s ability to attract new tenants, release space, collect rent or renew leases, and thus could adversely affect cash flow from operations and inhibit growth. Cash flow from operations depends in part on the ability to lease space to tenants on economically favorable terms. TCI could be adversely affected by various facts and events over which the Company has limited or no control, such as: TCI may not be able to compete successfully with other entities that operate in our industry. TCI may experience increased operating costs which could adversely affect our financial results and the value of our properties. TCI s ability to achieve growth in operating income depends in part on its ability to develop additional properties. TCI faces risks associated with property acquisitions. Many of TCI s properties are concentrated in our primary markets and the Company may suffer economic harm as a result of adverse conditions in those markets. TCI is leveraged and may not be able to meet our debt service obligations. TCI may not be able to access financial markets to obtain capital on a timely basis, or on acceptable terms. TCI may suffer adverse effects as a result of terms and covenants relating to the Company s indebtedness. TCI s degree of leverage could limit our ability to obtain additional financing or affect the market price of our common stock. An increase in interest rates would increase interest costs on variable rate debt and could adversely impact the ability to refinance existing debt. Unbudgeted capital expenditures or cost overruns could adversely affect business operations and cash flow. TCI may need to sell properties from time-to-time for cash flow purposes. The Company intends to devote resources to the development of new projects. The overall business is subject to all of the risks associated with the real estate industry. Real estate investments are illiquid, and the Company may not be able to sell properties if and when it is appropriate to do so.

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733590--3/31/2006--TRANSCONTINENTAL_REALTY_INVESTORS_INC