AMERICAN REALTY INVESTORS Business Summary

American Realty Investors Inc. (ARL) operates as a diversified real estate investment company primarily focused on the acquisition, development, and management of income-producing properties across the Southern United States. The company generates revenue through a multi-pronged model centered on rental income from its two primary reportable segments: Residential and Commercial. The Residential segment, which accounts for approximately 65% of total revenue, manages a portfolio of over 11,000 multifamily apartment units, while the Commercial segment oversees office buildings, retail centers, and industrial facilities leased to corporate and government tenants. Beyond traditional leasing, ARL derives income from strategic land sales, ancillary tenant services such as parking and storage, and investments in mortgage notes receivable. In the competitive landscape, ARL contends with firms such as Armada Hoffler Properties (AHH), Kennedy-Wilson Holdings (KW), and Tejon Ranch Co. (TRC). The company distinguishes itself as a value-oriented operator that specializes in repositioning undervalued assets within high-growth Southern markets, maintaining a leaner operational profile through its external advisory structure. The company is led by President and Chief Executive Officer Erik L. Johnson, a Certified Public Accountant with an extensive pedigree in real estate finance, including previous roles as Vice President of Financial Reporting at Macerich and an auditor at PricewaterhouseCoopers. Supporting the executive suite are Louis J. Corna, who serves as Executive Vice President, General Counsel, and Tax Counsel, and Alla Dzyuba, the Senior Vice President and Chief Accounting Officer. Founded in 1970, ARL is a subsidiary of Realty Advisors, Inc. and is externally managed by Pillar Income Asset Management, Inc., reflecting a long-standing institutional framework. The Board of Directors is chaired by Henry A. Butler, a veteran leader with over two decades of experience within the company’s affiliated entities, alongside Presiding Director Ted R. Munselle. This leadership team is characterized by exceptional stability, with an average board tenure exceeding 20 years, ensuring deep institutional knowledge in navigating complex real estate cycles and asset repositioning strategies.