Income Opportunity Realty Investors, Inc. Reports Second 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 quarter ended June 30, 2019. For the three months ended June 30, 2019, we reported a net income applicable to common shares of $1.0 million or $0.26 per diluted share for the three months ended June 30, 2019, as compared to net income of $707 thousand or $0.17 per diluted share for the same period ended 2018.

For the six months ended June 30, 2019, we reported a net income applicable to common shares of $2.1 million or $0.49 per diluted share, as compared to net income of $1.4 million or $0.34 per diluted share for the same period ended 2018.

Our primary business has most recently been investing in undeveloped real estate and holding mortgage note receivables.

Revenues

There was no income generated from real estate operations for the three months ended June 30, 2019 and the equivalent prior period ended 2018.

Expenses

General and administrative expenses were $175 thousand for the three months ended June 30, 2019. This represents an increase of $22 thousand, compared to general and administrative expenses of $153 thousand for the three months ended June 30, 2018. This increase was primarily driven by an increase in legal fees of approximately $26 and regulatory fees of thousand and $4 thousand, respectively offset by a decrease in cost reimbursements to our Advisor of approximately $8 thousand.

Advisory fees were $183 thousand for the three months ended June 30, 2019 compared to $168 thousand for the same period in 2018 for an increase of $15 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 $90 thousand for the three months ended June 30, 2019. This represents an increase of $37 thousand, compared to the net income fee of $53 thousand for the three months ended June 30, 2018. The net income fee paid to our Advisor is calculated at 7.5% of net income.

Other income (expense)

Interest income increased to $1.7 million for the three months ended June 30, 2019 compared to $1.1 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.

Other income of $147 thousand for the three months ended June 30, 2019, represents a tax increment reimbursement from the City of Farmers Branch, Texas for previous infrastructure development performed by the Company.

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 June 30,

 

Six Months Ended June 30,

 

2019

 

 

 

2018

 

 

 

2019

 

 

 

2018

 

(dollars in thousands, except per share amounts)

 
Expenses:
General and administrative (including $60 and $69 for the three months and $147 and $133 for the six months ended 2019 and 2018, respectively, to related parties)

$

175

 

$

153

 

$

308

 

$

276

 

Net income fee to related party

 

90

 

 

53

 

 

190

 

 

106

 

Advisory fee to related party

 

183

 

 

168

 

 

364

 

 

332

 

Total operating expenses

 

448

 

 

374

 

 

862

 

 

714

 

Net operating loss

 

(448

)

 

(374

)

 

(862

)

 

(714

)

 
Other income (expenses):
Interest income from related parties

 

1,677

 

 

1,081

 

 

3,319

 

 

2,123

 

Other Income

 

147

 

 

-

 

 

147

 

 

-

 

Total other income

 

1,824

 

 

1,081

 

 

3,466

 

 

2,123

 

Income before taxes

 

1,376

 

 

707

 

 

2,604

 

 

1,409

 

Income tax expense

 

289

 

 

-

 

 

547

 

 

-

 

Net income

$

1,087

 

$

707

 

$

2,057

 

$

1,409

 

 
Earnings per share - basic and diluted
Net income

$

0.26

 

$

0.17

 

$

0.49

 

$

0.34

 

 
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

June 30,

 

December 31,

 

2019

 

 

 

2018

 

(Unaudited)

 

(Audited)

(dollars in thousands, except par value amount)

Assets

Notes and interest receivable from related parties

$

14,015

 

$

14,030

 

Total notes and interest receivable

 

14,015

 

14,030

 

Cash and cash equivalents

 

7

 

4

 

Receivable and accrued interest from related parties

 

84,163

 

82,089

 

Total assets

$

98,185

 

$

96,123

 

 

 

 

Liabilities and Shareholders’ Equity

Liabilities:
Accounts payable and other liabilities

$

31

 

$

26

 

Total liabilities

 

31

 

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

 

36,196

 

34,139

 

Total shareholders' equity

 

98,154

 

96,097

 

Total liabilities and shareholders' equity

$

98,185

 

$

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