Skip to main content

Income Opportunity Realty Investors, Inc. Reports Third 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 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

Contacts:

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

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.