DALLAS--(BUSINESS WIRE)--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, 2018.
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.
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, 2018, nor for the prior period ended March 31, 2017.
There were no property operating expenses for the three months ended March 31, 2018, as there were no property operating expenses during the prior period.
General and administrative expenses were $123,000 for the three months ended March 31, 2018. This represents a decrease of $7,000, as compared to the prior period general and administrative expenses of $130,000. This decrease was primarily due to a decrease in regular audit and tax fees offset by an increase in administration expenses paid to a related party.
Advisory fees were $164,000 for the three months ended March 31, 2018. This represents an increase of $2,000, as compared to the prior period advisory fees of $162,000. 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 decreased $7,000 for the three months ended March 31, 2018 to $53,000, compared to $60,000 during the prior period. The net income fee paid to our Advisor is calculated at 7.5% of net income.
Other income (expense)
Interest income was $1.0 million for the three months ended March 31, 2018. This represents a decrease of approximately $100,000 as compared to interest income of $1.1 million for the three months ended March 31, 2017. This decrease was primarily due to a decrease in the receivable amount owed from our Advisor.
About Income Opportunity Realty Investors, Inc.
Income Opportunity Realty Investors, Inc., a Dallas-based real estate investment company, holds a portfolio of equity real estate in Texas, including undeveloped land. The Company invests in real estate through direct equity ownership and partnerships. For more information, visit the Company’s website at www.incomeopp-realty.com.
|INCOME OPPORTUNITY REALTY INVESTORS, INC.|
|CONSOLIDATED STATEMENTS OF OPERATIONS|
|For the Three Months Ended March 31,|
|(dollars in thousands, except per share amounts)|
|Rental and other property revenues||$||-||$||-|
|Property operating expenses (including $0 and $0 for the three months ended 2018 and 2017, respectively, from related parties)||-||-|
|General and administrative (including $42 and $54 for the three months ended 2018 and 2017, respectively, from related parties)||123||130|
|Net income fee to related party||53||60|
|Advisory fee to related party||164||162|
|Total operating expenses||340||352|
|Net operating loss||(340||)||(352||)|
|Other income (expenses):|
|Interest income from related parties||1,042||1,089|
|Total other income||1,042||1,089|
|Income before taxes||702||737|
|Earnings per share - basic and diluted|
Weighted average common shares used in computing earnings per share
|INCOME OPPORTUNITY REALTY INVESTORS, INC.|
|CONSOLIDATED BALANCE SHEETS|
|(dollars in thousands, except par value amount)|
|Real estate land holdings subject to sales contract, at cost||$||22,717||$||22,717|
|Total real estate||22,717||22,717|
|Notes and interest receivable from related parties||13,568||14,030|
|Total notes and interest receivable||13,568||14,030|
|Cash and cash equivalents||2||2|
|Receivable and accrued interest from related parties||50,790||49,631|
|Liabilities and Shareholders’ Equity|
|Accounts payable and other liabilities||$||5||$||10|
|Common stock, $0.01 par value, authorized 10,000,000 shares; issued 4,173,675 and outstanding 4,168,214 shares in 2018 and 2017||42||42|
|Treasury stock at cost, 5,461 shares in 2018 and 2017||(39||)||(39||)|
|Total shareholders' equity||88,589||87,887|
|Total liabilities and shareholders' equity||$||88,594||$||87,897|