Subject: EARNINGS
Income Opportunity Realty Investors, Inc. Reports Second 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 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. |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||||||
(Unaudited) |
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Three Months Ended
|
Six Months Ended
|
|||||||||||||||||||
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 |
|
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PART I. FINANCIAL INFORMATION |
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ITEM 1. FINANCIAL STATEMENTS |
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INCOME OPPORTUNITY REALTY INVESTORS, INC. |
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CONSOLIDATED BALANCE SHEETS |
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|
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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 |
|
|
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