Filing Details

Accession Number:
0001010549-18-000064
Form Type:
13D Filing
Publication Date:
2018-02-14 17:55:52
Filed By:
Transcontinental Realty Investors Inc
Company:
American Realty Investors Inc (NYSE:ARL)
Filing Date:
2018-02-15
SEC Url:
13D Filing
Ownership Summary

Please notice the below summary table is generated without human intervention and may contain errors. Please refer to the complete filing displayed below for exact figures.

Name Sole Voting Power Shared Voting Power Sole Dispositive Power Shared Dispositive Power Aggregate Amount Owned Power Percent of Class
Realty Advisors 7,921,508 0 7,921,508 0 9,381,336 58.64%
RA Stock Holdings, Inc. (formerly, Prime Stock Holdings, Inc.) 1,459,828 0 1,459,828 0 1,459,828 9.13%
Realty Advisors, Inc 4,471,687 0 4,471,687 0 13,853,023 86.60%
Transcontinental Realty Investors, Inc 229,214 0 229,214 0 229,214 1.43%
The Gene E. Phillips Children s Trust 27,602 0 27,602 0 27,602 0.172%
May Realty Holdings, Inc. (formerly, Realty Advisors Management, Inc.) 0 0 0 0 13,370,307 86.60%
Filing

 

SECURITIES AND EXCHANGE COMMISSION

 

Washington, D.C. 20549

 

SCHEDULE 13D

 

Under the Securities Exchange Act of 1934

 

(Amendment No. 16)

 

AMERICAN REALTY INVESTORS, INC.


(Name of Issuer) 

 

Common Stock, $0.01 par value


(Title of Class of Securities) 

 

029174-10-9


(CUSIP Number) 

 

Gene S. Bertcher

1603 LBJ Freeway, Suite 300

Dallas, Texas 75234

(469) 522-4200

(469) 522-4360 (Facsimile)


(Name, Address and Telephone Number of Person Authorized to Receive Notices and

Communications) 

 

January 12, 2018


(Date of Event which Requires Filing of this Statement)

 

If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this Schedule 13D, and is filing this schedule because of Rules 13d-1(b)(3) or (4), check the following box [ ].

 

NOTE: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent.

 

The remainder of this cover page shall be filled out for a reporting persons's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

 

The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). 

 

  1  
 

 

 

CUSIP No. 029174-10-9

1

name of reporting person

 

Realty Advisors, LLC

2 check the appropriate box if a member of a group

(A)

(B)

 

 

3

sec use only

 

 
4

source of funds

WC and OO

5

check if disclosure of legal proceedings is required pursuant to items 2(d) or 2(e)

 

o
6

citizenship or place of organization

nevada

 

number of

shares

beneficially

owned by

each

reporting

person

with

7

sole voting power

7,921,508

8

shared voting power

                -0-

9

sole dispositive power

7,921,508

10

shared dispositive power

                -0-

11

aggregate amount beneficially owned by each reporting person

9,381,336

12

check box if the aggregate amount in row (11) excludes certain shares

 

o
13

percent of class represented by amount in row (11)

58.64%

14

type of reporting person

OO

               

 

  2  
 

 

 

 

CUSIP No. 029174-10-9

1

name of reporting person

 

RA Stock Holdings, Inc. (formerly, Prime Stock Holdings, Inc.)

2 check the appropriate box if a member of a group

(A)

(B)

 

 

3

sec use only

 

 
4

source of funds

WC

5

check if disclosure of legal proceedings is required pursuant to items 2(d) or 2(e)

 

o
6

citizenship or place of organization

nevada

 

number of

shares

beneficially

owned by

each

reporting

person

with

7

sole voting power

1,459,828

8

shared voting power

                -0-

9

sole dispositive power

1,459,828

10

shared dispositive power

               -0-

11

aggregate amount beneficially owned by each reporting person

1,459,828

12

check box if the aggregate amount in row (11) excludes certain shares

 

o
13

percent of class represented by amount in row (11)

9.13%

14

type of reporting person

CO

               

 

  3  
 

 

 

 

CUSIP No. 029174-10-9

1

name of reporting person

 

Realty Advisors, Inc.

2 check the appropriate box if a member of a group

(A)

(B)

 

 

3

sec use only

 

 
4

source of funds

WC

5

check if disclosure of legal proceedings is required pursuant to items 2(d) or 2(e)

 

o
6

citizenship or place of organization

nevada

 

number of

shares

beneficially

owned by

each

reporting

person

with

7

sole voting power

4,471,687

8

shared voting power

               -0-

9

sole dispositive power

4,471,687

10

shared dispositive power

               -0-

11

aggregate amount beneficially owned by each reporting person

13,853,023

12

check box if the aggregate amount in row (11) excludes certain shares

 

o
13

percent of class represented by amount in row (11)

86.60%

14

type of reporting person

CO

               

  

 

  4  
 

 

  

CUSIP No. 029174-10-9

1

name of reporting person

 

Transcontinental Realty Investors, Inc.

2 check the appropriate box if a member of a group

(A)

(B)

 

 

3

sec use only

 

 
4

source of funds

OO

5 check if disclosure of legal proceedings is required pursuant to items 2(d) or 2(e) o
6

citizenship or place of organization

nevada

 

number of

shares

beneficially

owned by

each

reporting

person

with

7

sole voting power

229,214

8

shared voting power

               -0-

9

sole dispositive power

229,214

10

shared dispositive power

               -0-

11

aggregate amount beneficially owned by each reporting person

229,214

12

check box if the aggregate amount in row (11) excludes certain shares

 

o
13

percent of class represented by amount in row (11)

1.43%

14

type of reporting person

CO

               

 

  5  
 

 

 

 

CUSIP No. 029174-10-9

1

name of reporting person

 

The Gene E. Phillips Children’s Trust

2 check the appropriate box if a member of a group

(A)

(B)

 

 

3

sec use only

 

 
4

source of funds

OO

5 check if disclosure of legal proceedings is required pursuant to items 2(d) or 2(e) o
6

citizenship or place of organization

texas

 

number of

shares

beneficially

owned by

each

reporting

person

with

7

sole voting power

27,602

8

shared voting power

               -0-

9

sole dispositive power

27,602

10

shared dispositive power

               -0-

11

aggregate amount beneficially owned by each reporting person

27,602

12

check box if the aggregate amount in row (11) excludes certain shares

 

o
13

percent of class represented by amount in row (11)

0.172%

14

type of reporting person

OO

               

 

  6  
 

 

 

CUSIP No. 029174-10-9

 

1

name of reporting person

  May Realty Holdings, Inc. (formerly, Realty Advisors Management, Inc.)

 

2 check the appropriate box if a member of a group

(A)

(B)

 

 

3 sec use only  
4

source of funds

WC

5 check if disclosure of legal proceedings is required pursuant to items 2(d) or 2(e) o
6

citizenship or place of organization

nevada

 

number of

shares

beneficially

owned by

each

reporting

person

with

7

sole voting power

-0-

8

shared voting power

             -0-

9

sole dispositive power

-0-

10

shared dispositive power

                -0-

11

aggregate amount beneficially owned by each reporting person

13,370,307

12

check box if the aggregate amount in row (11) excludes certain shares

 

o
13

percent of class represented by amount in row (11)

86.60%

14

type of reporting person

CO

               

 

  

  7  
 

Item 1. Security and Issuer

 

This Amendment No. 16 to Statement on Schedule 13D (this “Amendment No. 16”) relates to shares of Common Stock, par value $0.01 per share (the “Shares”) of American Realty Investors, Inc., a Nevada corporation (the “Issuer” or “ARL”), and further amends the original Statement on Schedule 13D as amended by Amendment Nos. 1 through 15 thereto (the “Amended Statement”) previously filed with the Securities and Exchange Commission (the “Commission”) by the “Reporting Persons” described below. The principal executive offices of the Issuer are located at 1603 LBJ Freeway, Suite 800, Dallas, Texas 75234. The Shares are listed and traded on the New York Stock Exchange (“NYSE”). The CUSIP number of the Shares is 029174-10-9.

 

This Amendment No. 16 to Schedule 13D is being filed to reflect the acquisition through conversion of 200,000 shares of Series A Cumulative Convertible Preferred Stock (the “Series A Preferred”) and receipt, on January 12, 2018, of 482,716 Shares (3.012% of the outstanding Shares, after giving effect to the conversion) by one of the Reporting Persons. See item 5(c) below.

 

Item 2. Identity and Background

 

Item 2 of the Amended Statement is hereby further amended as follows:

 

(a)-(c) This Amendment No. 16 is filed on behalf of The Gene E. Phillips Children’s Trust, a trust formed under the laws of the State of Texas (the “GEP Trust”), Transcontinental Realty Investors, Inc., a Nevada corporation (“TCI”), May Realty Holdings, Inc. (formerly, Realty Advisors Management, Inc.), a Nevada corporation (“MRHI”), Realty Advisors, Inc., a Nevada corporation (“RAI”), the sole stockholder of which is MRHI, Realty Advisors, LLC, a Nevada limited liability company (“RALLC”), the sole member of which is RAI and RA Stock Holdings, Inc. (formerly, Prime Stock Holdings, Inc.), a Nevada corporation (“Holdings”), which is wholly owned by RALLC. Each of the Reporting Persons has its principal executive offices located at 1603 LBJ Freeway, Suite 300, Dallas, Texas 75234. All of GEP Trust, TCI, MRHI, RAI, RALLC and Holdings are collectively referred to as the “Reporting Persons.” The Reporting Persons may be deemed to constitute a “person” within the meaning of Section 13(d) of the Securities Exchange Act of 1934, as amended, because Holdings is owned by RALLC, the sole member of which is RAI, the sole stockholder of which is MRHI, which is beneficially owned by a trust established for the benefit of Gene E. Phillips’ children. RALLC owns all of the voting securities of Holdings. The executive officers of TCI are also executive officers of MRHI, RAI and RALLC. Mr. Phillips’ son, Bradford A. Phillips, serves as a Vice President of MRHI and is a beneficiary of the GEP Trust. The executive officers of ARL are also executive officers of TCI.

 

Item 3. Source and Amount of Funds or Other Consideration

 

No funds were required of RAI to acquire the 482,716 Shares described in Item 5(c) below from the 200,000 Shares of Series A Preferred.

 

Item 5. Interest in Securities of the Issuer

 

The Amended Statement is hereby further amended as follows:

 

(a)       According to the latest information available from the Issuer, as of January 12, 2018, after giving effect to the conversion, the total number of issued and outstanding Shares was 15,997,076. As of January 12, 2018, after giving effect to the transaction described in item 5(c), the Reporting Persons own and hold directly and beneficially the following Shares as of January 12, 2018:

  

  8  
 

 

Name

 

 

No. of Shares Owned Directly

 

 

Approximate Percent of Class

 

GEP Trust 27,602 0.172%
TCI 229,214 1.43%
RALLC 7,921,508 49.52%
RAI 4,471,687 27.95%
MRHI -0- 0.00%
Holdings 1,459,828 9.13%
  14,109,839 88.20%

 

Pursuant to Rule 13d-3 under the Exchange Act, each of the directors of Holding may be deemed to beneficially own the number of Shares owned by Holdings described above; each of the directors of MRHI may be deemed to beneficially own the number of Shares owned by RAI, RALLC and Holdings described above; each of the managers of RALLC may be deemed to beneficially own the number of Shares beneficially owned by RALLC and Holdings; each of the directors of RAI may be deemed to beneficially own the number of Shares owned by RALLC and Holdings described above; each of the directors of TCI may be deemed to beneficially own the number of Shares owned by TCI described above; the Trustees of the GEP Trust may be deemed to beneficially own the Shares held directly by the GEP Trust. Those individuals and the number of Shares deemed beneficially owned pursuant to Rule 13d-3 and the approximate percent of the class, as well as the relationship, as of January ____, 2018, are set forth in the following table:  

Name of Director

and/or Manager

 

 

Entity

 

 

No. of Shares Beneficially Owned

 

 

Percent of Class

 

 

Donald W. Phillips 

 

 

GEP Trust

 

 

27,602

 

 

0.172%

 

 

Mickey Ned Phillips

 

 

RALLC, RAMI,

Holdings, and RAI

 

 

13,853,0237

 

86.60%

 

 

Henry A. Butler

 

 

TCI

 

 

229,214

 

 

1.43%

 

 

Robert A. Jakuszewski

 

 

TCI

 

 

229,214

 

 

1.43%

 

 

Ted R. Munselle

 

 

TCI

 

 

229,214

 

 

1.43%

 

 

Raymond D. Roberts

 

 

TCI

 

229,214

 

1.43%

 

Gene S. Bertcher

 

 

RALLC and

Holdings 

 

9,381,336

 

 

58.64%

 

 

Daniel J. Moos+

 

 

RALLC and

Holdings 

 

9,381,336

 

 

58.64%

 

 

Total Shares beneficially owned by Reporting

Persons and individuals listed above:

 

 

14,109,839 

 

 

88.20%

   

  9  
 

   + Daniel J. Moos owns directly 5,000 Shares, which are not included in the table.

(b)       Each of the managers of RALLC share voting and dispositive power over the 7,921,508 Shares held by RALLC. Each of the directors of Holdings share voting and dispositive power over the 1,459,828 Shares held by Holdings. Each of the directors of TCI share voting and dispositive power over the 229,214 Shares held by TCI. The Trustee of the GEP Trust has complete voting and dispositive power over the 27,602 Shares held by the GEP Trust. Each of the directors of RAI share voting and dispositive power over the 4,471,687 Shares held by RAI.

 

(c)       During the 60 calendar days ended January 12, 2018, the Reporting Persons and their respective executive officers and directors or managers did not engage in any transaction involving the Shares or any other equity interest derivative thereof, except for RAI’s conversion of 200,000 Shares of Series A Preferred stock into 482,716 Shares.

 

(d)       No person other than the Reporting Persons or their respective Board of Directors, Managers or Trustees is known to have the right to receive or the power to direct receipt of dividends from, or proceeds of sale of, the Shares of ARL Common Stock held by RAI, RALLC, Holdings, TCI and/or the GEP Trust.

 

(e)Not applicable.

 

 

Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer

 

Item 6 of the Amended Statement is hereby further amended to read as follows:

 

Of the Shares owned directly by RAI, 3,433,436 Shares are subject to an accommodation pledge for a loan to another entity at First NBC Bank and 405,900 Shares are subject to a pledge for a loan from Shillington to RAI. Of the Shares owned directly by RALLC, 2,450,000 are subject to an accommodation pledge for a loan to another entity at First NBC Bank.

 

Of the Shares owned by TCI, 140,000 Shares are subject to an accommodation pledge for a loan to another entity at First NBC Bank.

 

Of the Shares owned by RALLC, 20,000 Shares are subject to an accommodation pledge for a loan to another entity at United Bank.

 

Of the 149,635 Shares owned directly by RAI, 5,471,508 Shares owned by RALLC and the 1,459,828 Shares owned by Holdings, all are held in bank and brokerage accounts along with other securities owned by each entity and, as such, those Shares may be deemed to be “collateral” for any borrowings made from time to time pursuant to customary margin or other account arrangements with such banks and/or brokers. Such arrangements are standard involving margin securities of up to a specified percentage of market value of the Shares, as well as other securities in such accounts, bear interest at varying rates and contain only standard default and similar provisions, the operation of which should not give any other person immediate voting power or investment power over such Shares.

 

Except as set forth in the preceding paragraphs, the Reporting Persons do not have any contracts, arrangements, understandings or relationships (legal or otherwise) with any person with respect to any securities or the Issuer including, but not limited to, transfer of voting of any of the securities, finders’ fees, joint ventures, loan or option arrangements, puts or calls, guaranties of profits, divisions of profits, divisions of profits or loss, or the giving or withholding of proxies.

  10  
 

 

 

 

 

SIGNATURES

 

After reasonable inquiry and to the best of their knowledge and belief, the undersigned certify that the information set forth in this Amendment No. 15 to Statement on Schedule 13D is true, complete, and correct.

 

Dated: February 14, 2018

 

 

REALTY ADVISORS, INC.

 

 

By: /s/ Gene S. Bertcher

Gene S. Bertcher, Vice President

 

 

 

GENE E. PHILLIPS CHILDREN’S TRUST

 

 

By: /s/ Donald W. Phillips

Donald W. Phillips, Trustee

 

 

 

RA STOCK HOLDINGS, INC.

 

 

By: /s/ Gene S. Bertcher

Gene S. Bertcher, Vice President

 

 

REALTY ADVISORS, LLC

 

 

By: /s/ Gene S. Bertcher

Gene S. Bertcher, Vice President

 

 

 

TRANSCONTINENTAL REALTY INVESTORS, INC.

 

 

By: /s/ Gene S. Bertcher

Gene S. Bertcher, Executive Vice President

 

 

 

REALTY ADVISORS MANAGEMENT, INC.

 

 

By: /s/ Gene S. Bertcher

Gene S. Bertcher, Vice President

 

 

 

 

 

  11