DALLAS--(BUSINESS WIRE)--Income Opportunity Realty Investors, Inc. (NYSE American: IOR), a Dallas-based real estate investment company, reported results of operations for the third quarter ended September 30, 2017. IOR announced today that the Company reported net income applicable to common shares of $0.6 million or $0.15 per diluted earnings per share for the three months ended September 30, 2017, as compared to net income applicable to common shares of $0.8 million or $0.18 per diluted earnings per share for the same period ended 2016.
In June 2017, the Company changed its trading symbol from (“IOT”) to (“IOR”).
Revenues
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 September 30, 2017 and 2016.
Expenses
General and administrative expenses were $93,000 for the three months ended September 30, 2017. This represents a decrease of $21,000 compared to the prior period general and administrative expenses of $114,000.
Net income fee to related party decreased $14,000 to $53,000 for the three months ended September 30, 2017 compared to the prior period. The net income fee paid to our Advisor is calculated at 7.5% of net income.
Other income (expense)
Interest income decreased to $0.9 million for the three months ended September 30, 2017 compared to $1.1 million for the same period of 2016. The decrease of $0.2 million was due primarily to the payoff, during 2017, of notes receivable related to three income-producing properties sold in a prior year.
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 |
Nine Months Ended |
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| 2017 | 2016 | 2017 | 2016 | ||||||||||||||||||
| (dollars in thousands, except per share amounts) | |||||||||||||||||||||
| Revenues: | |||||||||||||||||||||
| Rental and other property revenues | $ | - | $ | - | $ | - | $ | - | |||||||||||||
| Expenses: | |||||||||||||||||||||
| General and administrative (including $63 and $47 for the three months and $174 and $127 for the nine months ended 2017 and 2016, respectively, from related parties) | 93 | 114 | 342 | 333 | |||||||||||||||||
| Net income fee to related party | 53 | 67 | 189 | 193 | |||||||||||||||||
| Advisory fee to related party | 166 | 162 | 493 | 475 | |||||||||||||||||
| Total operating expenses | 312 | 343 | 1,024 | 1,001 | |||||||||||||||||
| Net operating loss | (312 | ) | (343 | ) | (1,024 | ) | (1,001 | ) | |||||||||||||
| Other income: | |||||||||||||||||||||
| Interest income from related parties | 924 | 1,095 | 3,133 | 3,389 | |||||||||||||||||
| Other Income | - | - | 250 | - | |||||||||||||||||
| Total other income | 924 | 1,095 | 3,383 | 3,389 | |||||||||||||||||
| Net income | $ | 612 | $ | 752 | $ | 2,359 | $ | 2,388 | |||||||||||||
| Earnings per share - basic and diluted | |||||||||||||||||||||
| Net income | $ | 0.15 | $ | 0.18 | $ | 0.57 | $ | 0.57 | |||||||||||||
| 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 | ||||||||||
| (Unaudited) | ||||||||||
| September 30, | December 31, | |||||||||
| 2017 | 2016 | |||||||||
| (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 | 15,403 | 25,485 | ||||||||
| Less allowance for doubtful accounts | (1,826 | ) | (1,826 | ) | ||||||
| Total notes and interest receivable | 13,577 | 23,659 | ||||||||
| Cash and cash equivalents | 4 | 1 | ||||||||
| Receivable and accrued interest from related parties | 50,391 | 37,768 | ||||||||
| Other assets | 2,049 | 2,257 | ||||||||
| Total assets | $ | 88,738 | $ | 86,402 | ||||||
| Liabilities and Shareholders’ Equity | ||||||||||
| Liabilities: | ||||||||||
| Accounts payable and other liabilities | $ | - | $ | 23 | ||||||
| Total liabilities | - | 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 | 26,780 | 24,421 | ||||||||
| Total shareholders' equity | 88,738 | 86,379 | ||||||||
| Total liabilities and shareholders' equity | $ | 88,738 | $ | 86,402 | ||||||
