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Income Opportunity Realty Investors, Inc. Reports Second Quarter 2019 Results

Income Opportunity Realty Investors, Inc. (NYSE American: IOR), a Dallas-based real estate investment company, today reported results of operations for the quarter ended June 30, 2019. For the three months ended June 30, 2019, we reported a net income applicable to common shares of $1.0 million or $0.26 per diluted share for the three months ended June 30, 2019, as compared to net income of $707 thousand or $0.17 per diluted share for the same period ended 2018.

For the six months ended June 30, 2019, we reported a net income applicable to common shares of $2.1 million or $0.49 per diluted share, as compared to net income of $1.4 million or $0.34 per diluted share for the same period ended 2018.

Our primary business has most recently been investing in undeveloped real estate and holding mortgage note receivables.

Revenues

There was no income generated from real estate operations for the three months ended June 30, 2019 and the equivalent prior period ended 2018.

Expenses

General and administrative expenses were $175 thousand for the three months ended June 30, 2019. This represents an increase of $22 thousand, compared to general and administrative expenses of $153 thousand for the three months ended June 30, 2018. This increase was primarily driven by an increase in legal fees of approximately $26 and regulatory fees of thousand and $4 thousand, respectively offset by a decrease in cost reimbursements to our Advisor of approximately $8 thousand.

Advisory fees were $183 thousand for the three months ended June 30, 2019 compared to $168 thousand for the same period in 2018 for an increase of $15 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.

Net income fee to related party was $90 thousand for the three months ended June 30, 2019. This represents an increase of $37 thousand, compared to the net income fee of $53 thousand for the three months ended June 30, 2018. The net income fee paid to our Advisor is calculated at 7.5% of net income.

Other income (expense)

Interest income increased to $1.7 million for the three months ended June 30, 2019 compared to $1.1 million for the same period in 2018. The increase of $600 thousand was primarily due to an increase in the receivable amount owed from our Advisor and other related parties.

Other income of $147 thousand for the three months ended June 30, 2019, represents a tax increment reimbursement from the City of Farmers Branch, Texas for previous infrastructure development performed by the Company.

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 June 30,

Six Months Ended June 30,

2019

2018

2019

2018

(dollars in thousands, except per share amounts)

 
Expenses:
General and administrative (including $60 and $69 for the three months and $147 and $133 for the six months ended 2019 and 2018, respectively, to related parties)

$

175

$

153

$

308

$

276

Net income fee to related party

90

53

190

106

Advisory fee to related party

183

168

364

332

Total operating expenses

448

374

862

714

Net operating loss

(448

)

(374

)

(862

)

(714

)

 
Other income (expenses):
Interest income from related parties

1,677

1,081

3,319

2,123

Other Income

147

-

147

-

Total other income

1,824

1,081

3,466

2,123

Income before taxes

1,376

707

2,604

1,409

Income tax expense

289

-

547

-

Net income

$

1,087

$

707

$

2,057

$

1,409

 
Earnings per share - basic and diluted
Net income

$

0.26

$

0.17

$

0.49

$

0.34

 
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

June 30,

December 31,

2019

2018

(Unaudited)

(Audited)

(dollars in thousands, except par value amount)

Assets

Notes and interest receivable from related parties

$

14,015

$

14,030

Total notes and interest receivable

14,015

14,030

Cash and cash equivalents

7

4

Receivable and accrued interest from related parties

84,163

82,089

Total assets

$

98,185

$

96,123

Liabilities and Shareholders’ Equity

Liabilities:
Accounts payable and other liabilities

$

31

$

26

Total liabilities

31

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

36,196

34,139

Total shareholders' equity

98,154

96,097

Total liabilities and shareholders' equity

$

98,185

$

96,123

Contacts:

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

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