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Income Opportunity Realty Investors, Inc. Reports Third Quarter 2020 Results

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

  

Contacts:

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

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