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 third quarter ended September 30, 2020.
For the three months ended September 30, 2020, the Company reported net income of $761 thousand or $0.18 per diluted share, as compared to $1.0 million or $0.25 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 were $94 thousand for the three months ended September 30, 2020. This represents a decrease of $5 thousand, compared to general and administrative expenses of $99 thousand for the three months ended September 30, 2019. This decrease was primarily driven by a decrease in professional fees.
Advisory fees were $194 thousand for the three months ended September 30, 2020 compared to $186 thousand for the same period in 2019 for an increase of $8 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 $51 thousand for the three months ended September 30, 2020. This represents a decrease of $32 thousand, compared to the net income fee of $83 thousand for the three months ended September 30, 2019. The net income fee paid to our Advisor is calculated at 7.5% of net income.
Other income (expense)
Interest income decreased to $1.3 million for the three months ended September 30, 2020 compared to $1.7 million for the same period in 2019. The decrease of $400 thousand 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 September 30, |
Nine Months Ended September 30, |
|||||||||||||||||
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|||||||||||
| (dollars in thousands, except per share amounts) | ||||||||||||||||||
| Expenses: | ||||||||||||||||||
| General and administrative (including $190 and $209 for the nine months ended 2020 and 2019, respectively, to related parties) | $ |
94 |
|
$ |
99 |
|
$ |
361 |
|
$ |
407 |
|
||||||
| Net income fee to related party |
|
51 |
|
|
83 |
|
|
249 |
|
|
273 |
|
||||||
| Advisory fee to related party |
|
194 |
|
|
186 |
|
|
574 |
|
|
550 |
|
||||||
| Total operating expenses |
|
339 |
|
|
368 |
|
|
1,184 |
|
|
1,230 |
|
||||||
| Net operating loss |
|
(339 |
) |
|
(368 |
) |
|
(1,184 |
) |
|
(1,230 |
) |
||||||
| Other income (expenses): | ||||||||||||||||||
| Interest income from related parties |
|
1,302 |
|
|
1,672 |
|
|
4,071 |
|
|
4,991 |
|
||||||
| Other Income |
|
- |
|
|
- |
|
|
742 |
|
|
147 |
|
||||||
| Total other income |
|
1,302 |
|
|
1,672 |
|
|
4,813 |
|
|
5,138 |
|
||||||
| Income before income taxes |
|
963 |
|
|
1,304 |
|
|
3,629 |
|
|
3,908 |
|
||||||
| Income tax expense |
|
202 |
|
|
274 |
|
|
762 |
|
|
821 |
|
||||||
| Net income | $ |
761 |
|
$ |
1,030 |
|
$ |
2,867 |
|
$ |
3,087 |
|
||||||
| Earnings per share - basic and diluted | ||||||||||||||||||
| Net income | $ |
0.18 |
|
$ |
0.25 |
|
$ |
0.69 |
|
$ |
0.74 |
|
||||||
| 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 | |||||||||
| September 30, | December 31, | ||||||||
2020 |
2019 |
||||||||
| (Unaudited) | (Audited) | ||||||||
| (dollars in thousands, except par value amount) | |||||||||
Assets |
|||||||||
| Notes and interest receivable from related parties | $ |
13,577 |
|
$ |
14,030 |
|
|||
| Total notes and interest receivable |
|
13,577 |
|
|
14,030 |
|
|||
| Cash and cash equivalents |
|
58 |
|
|
5 |
|
|||
| Receivable and accrued interest from related parties |
|
89,475 |
|
|
86,221 |
|
|||
| Total assets | $ |
103,110 |
|
$ |
100,256 |
|
|||
| Liabilities and Shareholders’ Equity | |||||||||
| Liabilities: | |||||||||
| Accounts payable and other liabilities | $ |
1 |
|
$ |
14 |
|
|||
| Total liabilities |
|
1 |
|
|
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, 5,261 shares in 2020 and 2019 |
|
(39 |
) |
|
(39 |
) |
|||
| Paid-in capital |
|
61,955 |
|
|
61,955 |
|
|||
| Retained earnings |
|
41,151 |
|
|
38,284 |
|
|||
| Total shareholders' equity |
|
103,109 |
|
|
100,242 |
|
|||
| Total liabilities and shareholders' equity | $ |
103,110 |
|
$ |
100,256 |
|
|||
