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Income Opportunity Realty Investors, Inc. Reports First Quarter 2017 Results

Income Opportunity Realty Investors, Inc. (NYSE MKT: IOT), a Dallas-based real estate investment company, today reported results of operations for the first quarter ended March 31, 2017.

Our primary business is investing in real estate and mortgage note receivables. Land held for development or sale is our sole operating segment. The Company has invested in over 170 acres of land held for development or sale in Farmers Branch, Texas. The project, in total, is a 1,200 acre assembly of properties at the demographic center of the Dallas – Fort Worth Metroplex. Surrounded by three major highways and adjacent to current and future public transportation systems, the project is in a prime location for future growth and development.

Revenues

We had net income of $737,000 or $0.18 per diluted earnings per share for the three months ended March 31, 2017 compared to net income of $893,000 or $0.21 per diluted earnings per share for the same period ended 2016.

Land held subject to a sales contract is our sole operating segment. There was no income generated from this segment for the three months ended March 31, 2017, nor for the prior period ended 2016.

Expense

General and administrative expenses were $130,000 for the three months ended March 31, 2017. This represents an increase of $37,000 compared to the prior period general and administrative expenses of $93,000. This increase was primarily due to an increase in the administration expense paid to a related party.

Net income fee decreased $12,000 for the three months ended March 31, 2017 as compared to the prior period.

Advisory fees were $162,000 for the three months ended March 31, 2017. This represents an increase of $9,000 compared to the prior period advisory fees of $153,000.

Other income (expense)

Interest income was $1.1 million for the three months ended March 31, 2017. This represents a decrease of $119,000 compared to interest income of $1.2 million for the three months ended March 31, 2016.

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)
For the Years Ended March 31,
20172016
(dollars in thousands, except per share amounts)
Revenues:
Rental and other property revenues $ - $ -
Expenses:
Property operating expenses (including $0 and $0 for the three months ended 2017 and 2016, respectively, from related parties) - -
General and administrative (including $54 and $43 for the three months ended 2017 and 2016, respectively, from related parties) 130 93
Net income fee to related party 60 72
Advisory fee to related party 162 153
Total operating expenses 352 318
Net operating loss (352 ) (318 )
Other income (expenses):
Interest income from related parties 1,089 1,208
Other Income - 3
Total other income 1,089 1,211
Income before taxes 737 893
Income tax expense - -
Net income $ 737 $ 893
Earnings per share - basic and diluted
Net income $ 0.18 $ 0.21
Weighted average common shares used in computing earnings per share 4,168,214 4,168,214
INCOME OPPORTUNITY REALTY INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31,December 31,
20172016
(dollars in thousands, except par value amount)
Assets
Real estate land holdings subject to sales contract, at cost $ 22,717 $ 22,717
Total real estate 22,717 22,717
Notes and interest receivable from related parties 24,742 25,485
Less allowance for doubtful accounts (1,826 ) (1,826 )
Total notes and interest receivable 22,916 23,659
Cash and cash equivalents 4 1
Receivable and accrued interest from related parties 39,255 37,768
Other assets 2,257 2,257
Total assets $ 87,149 $ 86,402
Liabilities and Shareholders’ Equity
Liabilities:
Accounts payable and other liabilities $ 33 $ 23
Total liabilities 33 23
Shareholders’ equity:

Common stock, $0.01 par value, authorized 10,000,000 shares; issued 4,173,675 and outstanding 4,168,214 shares in 2017 and 2016

42

42

Treasury stock at cost, 5,461 shares in 2017 and 2016 (39 ) (39 )
Paid-in capital 61,955 61,955
Retained earnings 25,158 24,421
Total shareholders' equity 87,116 86,379
Total liabilities and shareholders' equity $ 87,149 $ 86,402

Contacts:

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

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