IOR Income Opportunity Realty Investments

Income Opportunity Realty Investors, Inc. (NYSE American: IOR), a Dallas-based real estate investment company, today reported results of operations for the third quarter ended September 30, 2019. For the three months ended September 30, 2019, we reported a net income applicable to common shares of $ 1.0 million or $0.25 per share, as compared to net income of $6 million or $1.44 per diluted share for the same period ended 2018.

Our primary business is investing in real estate and mortgage note receivables. Land held for development or sale has been our sole operating segment.

Expenses

General and administrative expenses were $99 thousand for the three months ended September 30, 2019. This represents an increase of $16 thousand, compared to general and administrative expenses of $83 thousand for the three months ended September 30, 2018. This increase was primarily driven by an increase in legal fees of approximately $17 thousand.

Net income fee to related party was $83 thousand for the three months ended September 30, 2019. This represents a decrease of $299 thousand, compared to the net income fee of $382 thousand for the three months ended September 30, 2018. The net income fee paid to our Advisor is calculated at 7.5% of net income.

Advisory fees were $186 thousand for the three months ended September 30, 2019 compared to $168 thousand for the same period in 2018 for an increase of $18 thousand. Advisory fees are computed based on a gross asset fee of 0.0625% per month (0.75% per annum) of the average of the gross asset value.

Other income (expense)

Interest income increased to $1.7 million for the three months ended September 30, 2019 compared to $1.2 million for the same period in 2018. The increase of $500 thousand was primarily due to an increase in the receivable amount owed from our Advisor and other related parties. In the third quarter of 2018, we sold our interest in a land development project which resulted in a pre-income tax gain of $7.3 million and an income tax expense of $1.6 million.

About Income Opportunity Realty Investors, Inc.

Income Opportunity Realty Investors, Inc., a Dallas-based real estate investment company, holds a portfolio of equity real estate in Texas, including undeveloped land. The Company invests in real estate through direct equity ownership and partnerships. For more information, visit the Company’s website at www.incomeopp-realty.com.

 

INCOME OPPORTUNITY REALTY INVESTORS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

 

2019

 

 

2018

 

 

2019

 

 

2018

 

(dollars in thousands, except per share amounts)   Expenses: General and administrative (including $61 and $67 for the three months and $209 and $201 for the nine months ended 2019 and 2018, respectively, to related parties)

$

99

 

$

83

 

$

407

 

$

359

 

Net income fee to related party

 

83

 

 

383

 

 

273

 

 

489

 

Advisory fee to related party

 

186

 

 

168

 

 

550

 

 

500

 

Total operating expenses

 

368

 

 

634

 

 

1,230

 

 

1,348

 

Net operating loss

 

(368

)

 

(634

)

 

(1,230

)

 

(1,348

)

  Other income (expenses): Interest income from related parties

 

1,672

 

 

1,201

 

 

4,991

 

 

3,324

 

Other Income

 

-

 

 

-

 

 

147

 

 

-

 

Total other income

 

1,672

 

 

1,201

 

 

5,138

 

 

3,324

 

Income before gain on sale of real estate land

 

1,304

 

 

567

 

 

3,908

 

 

1,976

 

Gain on sale of real estate land

 

-

 

 

7,323

 

 

-

 

 

7,323

 

Income before income taxes

 

1,304

 

 

7,890

 

 

3,908

 

 

9,299

 

Income tax expense

 

274

 

 

1,902

 

 

821

 

 

1,902

 

Net income

$

1,030

 

$

5,988

 

$

3,087

 

$

7,397

 

  Earnings per share - basic and diluted Net income

$

0.25

 

$

1.44

 

$

0.74

 

$

1.77

 

  Weighted average common shares used in computing earnings per share

 

4,168,214

 

 

4,168,214

 

 

4,168,214

 

 

4,168,214

 

  INCOME OPPORTUNITY REALTY INVESTORS, INC. CONSOLIDATED BALANCE SHEETS

September 30,

December 31,

 

2019

 

 

2018

 

(Unaudited)

(Audited)

(dollars in thousands, except par value amount)

Assets

Notes and interest receivable from related parties

$

13,578

 

$

14,030

 

Total notes and interest receivable

 

13,578

 

 

14,030

 

Cash and cash equivalents

 

1

 

 

4

 

Receivable and accrued interest from related parties

 

85,629

 

 

82,089

 

Total assets

$

99,208

 

$

96,123

 

 

Liabilities and Shareholders’ Equity

Liabilities: Accounts payable and other liabilities

$

24

 

$

26

 

Total liabilities

 

24

 

 

26

 

Shareholders’ equity: Common stock, $0.01 par value, authorized 10,000,000 shares; issued 4,173,675 and outstanding 4,168,214 shares in 2019 and 2018

 

42

 

 

42

 

Treasury stock at cost, 5,461 shares in 2019 and 2018

 

(39

)

 

(39

)

Paid-in capital

 

61,955

 

 

61,955

 

Retained earnings

 

37,226

 

 

34,139

 

Total shareholders' equity

 

99,184

 

 

96,097

 

Total liabilities and shareholders' equity

$

99,208

 

$

96,123

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20191114005717/en/

Income Opportunity Realty Investors, Inc. Investor Relations Gene Bertcher (800) 400-6407 investor.relations@incomeopp-realty.com