Business Wire | Aug 12, 2020 04:35PM EDT

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

Aug. 12, 2020

DALLAS--(BUSINESS WIRE)--Aug. 12, 2020--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 Six Months Ended June 30, June 30,

2020 2019 2020 2019

(dollars in thousands, except per share amounts)

Expenses: General and administrative (including $120 and $147 for the six $ 128 $ 175 $ 267 $ 308 months ended 2020 and 2019, respectively, to related parties) Net income fee 112 90 198 190 to related party Advisory fee 191 183 380 364 to related party Total 431 448 845 862 operating expenses Net operating (431 ) (448 ) (845 ) (862 ) loss Other income(expenses): Interest income from 1,290 1,677 2,769 3,319 related parties Other Income 742 147 742 147

Total other 2,032 1,824 3,511 3,466 income Income before 1,601 1,376 2,666 2,604 taxes Income tax 336 289 560 547 expense 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 4,168,214 4,168,214 4,168,214 4,168,214 computing earnings per share

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)

AssetsNotes 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' EquityLiabilities:Accounts payable and other liabilities $ 8 $ 14

Total liabilities 8 14

Shareholders' equity:Common stock, $0.01 par value, authorized 10,000,000 42 42 shares; issued 4,173,675 and outstanding 4,168,214shares in 2020 and 2019Treasury stock at cost, 5,461 shares in 2020 and (39 ) (39 )2019Paid-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

View source version on businesswire.com: https://www.businesswire.com/news/home/20200812005701/en/

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