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

DALLAS--()--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, 2019. The Company reported net income applicable to common shares for the three months ended March 31, 2019 of $970,000 or $0.23 per share, as compared to net income applicable to common shares of $702,000 or $0.17 per share for the three months ended March 31, 2018.

Our primary business is investing in real estate and financing real estate and real estate related activities through investments in mortgage loans.

Revenues

At March 31, 2019 the Company had no real estate holdings. The principal source of income for the Company is interest income.

Expenses

General and administrative expenses were $133 thousand for the three months ended March 31, 2019. This represents an increase of $10 thousand, compared to general and administrative expenses of $123 thousand for the three months ended March 31, 2018. This increase was primarily driven by an increase in administrative fees of approximately $22 thousand offset by a decrease in legal and regulatory fees of $10 thousand.

Advisory fees were $181 thousand for the three months ended March 31, 2019 compared to $164 thousand for the same period in 2018 for an increase of $17 thousand. Advisory fees are computed based on a percentage of gross assets.

Net income fee to related party was $100 thousand for the three months ended March 31, 2019. This represents an increase of $47 thousand, compared to the net income fee of $53 thousand for the three months ended March 31, 2018. The net income fee paid to our Advisor is calculated as a percentage of net income.

Other income (expense)

Interest income increased to $1.6 million for the three months ended March 31, 2019 compared to $1.0 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.

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,
2019 2018
(dollars in thousands, except per share amounts)
 
Expenses:
General and administrative (including $87 and $64 for the three months ended 2019 and 2018, respectively, to related parties) $ 133 $ 123
Net income fee to related party 100 53
Advisory fee to related party   181     164  
Total operating expenses   414     340  
Net operating loss (414 ) (340 )
 
Other income (expenses):
Interest income from related parties   1,642     1,042  
Total other income   1,642     1,042  
Income before taxes 1,228 702
Income tax expense   258     -  
Net income $ 970   $ 702  
 
Earnings per share - basic and diluted
Net income $ 0.23   $ 0.17  
 
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,
2019 2018
(Unaudited) (Audited)
(dollars in thousands, except par value amount)
Assets
Notes and interest receivable from related parties $ 13,568   $ 14,030  
Total notes and interest receivable 13,568 14,030
Cash and cash equivalents 4 4
Receivable and accrued interest from related parties   83,498     82,089  
Total assets $ 97,070   $ 96,123  
 
Liabilities and Shareholders’ Equity
Liabilities:
Accounts payable and other liabilities $ 3   $ 26  
Total liabilities 3 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   35,109     34,139  
Total shareholders' equity   97,067     96,097  
Total liabilities and shareholders' equity $ 97,070   $ 96,123  

Contacts

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

Contacts

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