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 first quarter ended March 31, 2020.

For the three months ended March 31, 2020, the Company reported a net income per diluted share of $841,000 or $0.20 per diluted share, as compared to net income of $970,000 or $0.23 per diluted share for the same period ended 2019.

Our primary business is investing in real estate and mortgage note receivables.

Expenses

General and administrative expenses were $139 thousand for the three months ended March 31, 2020. This represents an increase of $6 thousand, compared to general and administrative expenses of $133 thousand for the three months ended March 31, 2019. This increase was primarily driven by an increase in legal fees of approximately $8 thousand.

Advisory fees were $189 thousand for the three months ended March 31, 2020 compared to $181 thousand for the same period in 2019 for an increase of $8 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 $86 thousand for the three months ended March 31, 2020. This represents a decrease of $14 thousand, compared to the net income fee of $100 thousand for the three months ended March 31, 2019. The net income fee paid to our Advisor is calculated at 7.5% of net income.

Other income (expense)

Interest income decreased to $1.5 million for the three months ended March 31, 2020 compared to $1.6 million for the same period in 2019. The decrease of $100 thousand was primarily due to a decrease in the prime interest rate used to calculate interest on the receivable amount owed from our Advisor and other related parties.

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 Three Months Ended March 31,

2020

 

2019

(dollars in thousands, except per share amounts)

  Expenses: General and administrative (including $72 and $87 for the three months ended 2020 and 2019, respectively, to related parties)

$ 139

$ 133

Net income fee to related party

86

100

Advisory fee to related party

189

181

Total operating expenses

414

414

Net operating loss

(414)

(414)

  Other income (expenses): Interest income from related parties

1,479

1,642

Total other income

1,479

1,642

Income before taxes

1,065

1,228

Income tax expense

224

258

Net income

$ 841

$ 970

  Earnings per share - basic and diluted Net income

$ 0.20

$ 0.23

  Weighted average common shares used in computing earnings per share

4,168,214

4,168,214

INCOME OPPORTUNITY REALTY INVESTORS, INC. CONSOLIDATED BALANCE SHEETS

March 31,

 

December 31,

2020

 

2019

(Unaudited)

 

(Audited)

(dollars in thousands, except par value amount)

Assets

Notes and interest receivable from related parties

$ 13,573

$ 14,030

Total notes and interest receivable

13,573

14,030

Cash and cash equivalents

14

5

Receivable and accrued interest from related parties

87,496

86,221

Total assets

$ 101,083

$ 100,256

 

Liabilities and Shareholders’ Equity

Liabilities: Accounts payable and other liabilities

$ -

$ 14

Total liabilities

-

14

Shareholders’ equity: Common stock, $0.01 par value, authorized 10,000,000 shares; issued 4,173,675 and outstanding 4,168,214 shares in 2020 and 2019

42

42

Treasury stock at cost, 5,461 shares in 2020 and 2019

(39)

(39)

Paid-in capital

61,955

61,955

Retained earnings

39,125

38,284

Total shareholders' equity

101,083

100,242

Total liabilities and shareholders' equity

$ 101,083

$ 100,256

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20200513005769/en/

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