Income Opportunity Realty Investors, Inc. Reports Fourth Quarter and Full Year 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 fourth quarter ended December 31, 2019. For the three months ended December 31, 2019, we reported a net income applicable to common shares of $ 1.1 million or $0.25 per share, as compared to net income of $800,000 or $0.19 per diluted share for the same period ended 2018.

For the full year ended December 31, 2019 the Company reported net income of $4.1 million or ($0.99) per share, compared to net income of $8.2 million or ($1.97) per share for the same period ended December 31, 2018. Included in 2018 is a gain on the sale of land of $7.3 million.

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

Expenses

General and administrative expenses were $494,000 for the year ended December 31, 2019. General and administrative expenses were also $494,000 for the year ended December 31, 2018. This included an increase in Legal expenses of $32,000 and a decrease in reimbursements to Pillar and of $24,000.

Net income fee to related party was $357,000 for the year ended December 31, 2019. This represents a decrease of $274,000, compared to the net income fee of $631,000 for the year ended December 31, 2018. The net income fee paid is calculated at the rate of 7.5% of net income.

Advisory fees were $737,000 for the year ended December 31, 2019. This represents an increase of $52,000 compared to advisory fees of $685,000 for the year ended December 31, 2018. 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.

Other income (expense)

Interest income was $6.6 million for the year ended December 31, 2019. This represents an increase of $1.7 million, compared to interest income of $4.9 million for the year ended December 31, 2018. This increase was primarily due to an increase in the receivable amount owed from our Advisor.

Income tax expense was $1.1 million for the year ended December 31, 2019 compared to income tax expense of $2.2 million for the year ended December 31, 2018. Net income before taxes was $5.1 million for the year ended December 31, 2019. This represents a decrease of $5.3 million compared to net income before taxes of $10.4 million for the year ended December 31, 2018.

Gain on land sales decreased by $7.3 million for the year ended December 31, 2019, compared to the same period a year ago, as a result of the sale of real estate holdings during 2018 for approximately $22.5 million.

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 Years Ended December 31, 

 

 

 

 

 

2019

 

2018

 

2017

 

 

 

 

 

(dollars in thousands, except per share amounts)

Revenues:             
  Rental and other property revenues      

 $

                     -  

 

 

 $

                -  

 

 

 $

                  -  

 

                   
Expenses:              
  Property operating expenses      

 

                        -  

 

 

 

                   -  

 

 

 

                     -  

 

  General and administrative (including $260, $284, and $234 for the year ended 2019, 2018, and 2017 respectively, to related parties)      

 

                     494

 

 

 

                 494

 

 

 

                  438

 

  Net income fee to related party      

 

                     357

 

 

 

                 631

 

 

 

                  250

 

  Advisory fee to related party      

 

                     737

 

 

 

                 685

 

 

 

                  660

 

       Total operating expenses       

 

                  1,588

 

 

 

              1,810

 

 

 

               1,348

 

       Net operating loss        

 

                (1,588

)

   

 

            (1,810

)

 

 

             (1,348

)

                 
Other income / expenses:              
  Interest income from related parties      

 

                  6,574

 

 

 

              4,880

 

 

 

               4,237

 

  Other Income      

 

                     237

 

 

 

                   -  

 

 

 

                  250

 

          Total other income       

 

                  6,811

 

 

 

              4,880

 

 

 

               4,487

 

  Income before gain on sale of real estate land      

 

                  5,223

 

 

 

              3,070

 

 

 

               3,139

 

  Gain on sale of real estate land      

 

                        -  

 

 

 

              7,323

 

 

 

                     -  

 

  Income before taxes        

 

                  5,223

 

   

 

            10,393

 

 

 

               3,139

 

  Income tax expense - current  

 

                  1,078

 

 

 

              1,391

 

 

 

               1,098

 

  Income tax expense - deferred

 

                        -  

 

 

                 792

 

 

 

                  533

 

  Net income      

 $

               4,145

 

 

 $

           8,210

 

 

 $

            1,508

 

                   
  Earnings per share - basic and diluted                
     Net income       

 $

                 0.99

 

 

 $

             1.97

 

 

 $

              0.36

 

                   
  Weighted average common shares used in computing earnings per share      

 

4,173,675

 

 

 

4,168,214

 

 

 

4,168,214

 

 
 
 
 
 

INCOME OPPORTUNITY REALTY INVESTORS, INC.

CONSOLIDATED BALANCE SHEETS

(Audited)

 

 

 

 

December 31,

 

December 31,

 

 

 

2019

 

2018

 

 

 

 

 

 

 

 

 

(dollars in thousands, except par value amount)

Assets

       
Real estate land holdings subject to sales contract, at cost  

 $

                               -

 

 

 $

                                  -

 

  Total real estate  

 

                                  -

 

 

 

                                     -

 

         
Notes and interest receivable from related parties  

 

                        14,030

 

 

 

                            14,030

 

    Total notes and interest receivable  

 

                        14,030

 

 

 

                            14,030

 

Cash and cash equivalents  

 

                                 5

 

 

 

                                     4

 

Receivable and accrued interest from related parties  

 

                        86,221

 

 

 

                            82,089

 

Other assets  

 

                                  -

 

 

 

                                     -

 

Total assets  

 $

                   100,256

 

 

 $

                         96,123

 

       

Liabilities and Shareholders’ Equity

     
Liabilities:      
Accounts payable and other liabilities  

 $

                            14

 

 

 $

                                26

 

Total liabilities  

 

                               14

 

 

 

                                   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   

 

                        38,284

 

 

 

                            34,139

 

Total shareholders' equity  

 

                      100,242

 

 

 

                            96,097

 

Total liabilities and shareholders' equity  

 $

                   100,256

 

 

 $

                         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