0001999371-26-010171
SEC filingNet income rose 2.1% to $1.0M, driven by higher interest income from related party receivables, despite a slight widening of the operating loss.
Net income for the three months ended March 31, 2026 was $1.0 million, compared to $989,000 for the same period in 2025, an increase of 2.1%. The increase was primarily due to higher interest income from related party receivables. Diluted earnings per share rose to $0.25 from $0.24. Operating income was a loss of $97,000, compared to a loss of $95,000 in the prior year, as general and administrative costs, including audit, legal, and administrative fees paid to a related party, remained relatively stable.
Our principal liquidity needs are to fund normal recurring expenses. Net cash used in operating activities was $114,000 for the three months ended March 31, 2026, compared to net cash provided by operating activities of $147,000 in the prior year. The change was primarily due to changes in related party receivables. Our principal sources of cash are and will continue to be the collection of mortgage notes receivables and the collections of receivables and interests from related companies. Management believes these sources will be sufficient to meet our liquidity needs.
Pillar is considered a related party due to its common ownership with TCI, our controlling shareholder. Pillar’s duties include locating, evaluating, and recommending investment opportunities. Transactions involving related parties cannot be presumed to be carried out on an arm’s length basis due to the absence of free market forces. Our operating expenses consist primarily of general and administrative costs such as audit, legal, and administrative fees paid to a related party.
Looking ahead, management expects cash flows from collections of mortgage notes and related party receivables to meet liquidity needs. No material changes in risk factors were disclosed, and no shares were repurchased under the existing buyback program during the quarter. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated, or projected.