Income Opportunity Realty Investors, Inc. Reports Second Quarter 2020 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 June 30, 2020.

For the three months ended June 30, 2020, the Company reported net income of $1.3 million or $0.30 per diluted share, as compared to $1.1 million or $0.26 per diluted share for the same period in 2019.

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

Expenses

General and administrative expenses decreased $47,000 to $128,000 for the three months ended June 30, 2020 from $175,000 for the same period in 2019. The decrease in general and administrative expenses was primarily due a decrease in professional fees.

Net income fee to related party increased $22,000 to $112,000 for the three months ended June 30, 2020 from $90,000 for the same period in 2019. The net income fee paid to our Advisor is calculated at 7.5% of net income.

Advisory fee to related parties was $191,000 for the three months ended June 30, 2020, compared to $183,000 for the same period in 2019. Advisory fee is 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 from related party decreased to $1.3 million for the three months ended June 30, 2020, compared to $1.7 million for the same period in 2019. The decrease of $0.4 million was primarily due to a decrease in the prime interest rate used to calculate interest on 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)

Three Months Ended
June 30,

Six Months Ended
June 30,

2020

2019

2020

2019

(dollars in thousands, except per share amounts)

 
Expenses:
General and administrative (including $120 and $147 for the six months ended 2020 and 2019, respectively, to related parties)

$

128

 

$

175

 

$

267

 

$

308

 

Net income fee to related party

 

112

 

 

90

 

 

198

 

 

190

 

Advisory fee to related party

 

191

 

 

183

 

 

380

 

 

364

 

Total operating expenses

 

431

 

 

448

 

 

845

 

 

862

 

Net operating loss

 

(431

)

 

(448

)

 

(845

)

 

(862

)

 
Other income (expenses):
Interest income from related parties

 

1,290

 

 

1,677

 

 

2,769

 

 

3,319

 

Other Income

 

742

 

 

147

 

 

742

 

 

147

 

Total other income

 

2,032

 

 

1,824

 

 

3,511

 

 

3,466

 

Income before taxes

 

1,601

 

 

1,376

 

 

2,666

 

 

2,604

 

Income tax expense

 

336

 

 

289

 

 

560

 

 

547

 

Net income

$

1,265

 

$

1,087

 

$

2,106

 

$

2,057

 

 
Earnings per share - basic and diluted
Net income

$

0.30

 

$

0.26

 

$

0.51

 

$

0.49

 

 
Weighted average common shares used in computing earnings per share

 

4,168,214

 

 

4,168,214

 

 

4,168,214

 

 

4,168,214

 

 
 

PART I. FINANCIAL INFORMATION  

ITEM 1. FINANCIAL STATEMENTS

INCOME OPPORTUNITY REALTY INVESTORS, INC.

CONSOLIDATED BALANCE SHEETS

 

June 30,

December 31,

2020

2019

(Unaudited)

(Audited)

(dollars in thousands, except par value amount)

Assets
Notes and interest receivable from related parties

$

14,020

 

$

14,030

 

Total notes and interest receivable

 

14,020

 

 

14,030

 

Cash and cash equivalents

 

44

 

 

5

 

Receivable and accrued interest from related parties

 

88,292

 

 

86,221

 

Total assets

$

102,356

 

$

100,256

 

 
Liabilities and Shareholders’ Equity
Liabilities:
Accounts payable and other liabilities

$

8

 

$

14

 

Total liabilities

 

8

 

 

14

 

Shareholders’ equity:
Common stock, $0.01 par value, authorized 10,000,000 shares; issued 4,173,675 and outstanding 4,168,214 shares in 2020 and 2019

 

42

 

 

42

 

Treasury stock at cost, 5,461 shares in 2020 and 2019

 

(39

)

 

(39

)

Paid-in capital

 

61,955

 

 

61,955

 

Retained earnings

 

40,390

 

 

38,284

 

Total shareholders' equity

 

102,348

 

 

100,242

 

Total liabilities and shareholders' equity

$

102,356

 

$

100,256

 

 

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