Business Wire | Mar 30, 2021 04:30PM EDT

Income Opportunity Realty Investors, Inc. Reports Fourth Quarter and Full Year 2020 Results

Mar. 30, 2021

DALLAS--(BUSINESS WIRE)--Mar. 30, 2021--Income Opportunity Realty Investors, Inc. (NYSE American: IOR), a Dallas-based real estate investment company, today reported results of operations for the fourth quarter ended December 31, 2020. For the three months ended December 31, 2020, we reported a net income applicable to common shares of $1.3 million or $0.32 per share, as compared to net income of $1.1 million or $0.25 per diluted share for the same period ended 2019.

For the full year ended December 31, 2020 the Company reported net income applicable to common shares of $4.2 million or $1.01 per diluted earnings per share for the year ended December 31, 2020, compared to a net income applicable to common shares of $4.1 million or $.99 per diluted earnings per share for the same period ended 2019.

Our primary business is investing in mortgage and note receivables.

Expenses

General and administrative expenses were $450,000 for the year ended December 31, 2020. General and administrative expenses were $494,000 for the year ended December 31, 2019.

Net income fee to related party was $371,000 for the year ended December 31, 2020. This represents an increase of $14,000, compared to the net income fee of $357,000 for the year ended December 31, 2019. The net income fee paid is calculated at the rate of 7.5% of net income.

Advisory fees were $768,000 for the year ended December 31, 2020. This represents an increase of $31,000 compared to advisory fees of $737,000 for the year ended December 31, 2019. 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.

Other income (expense)

Interest income was $5.4 million for the year ended December 31, 2020. This represents a decrease of $1.2 million, compared to interest income of $6.6 million for the year ended December 31, 2019. This decrease was primarily due to a decrease in the prime rate.

Other income was $1.5 million for the year ended December 31, 2020. This represents an increase of $1.3 million compared to other income of $237 thousand for the year ended December 31, 2019. This increase was primarily due to collection of a note previously written off.

Income tax expense was $1.1 million for both 2020 and 2019.

About Income Opportunity Realty Investors, Inc.

Income Opportunity Realty Investors, Inc., a Dallas based company that holds both mortgages and notes receivable. For more information, visit the Company's website at www.incomeopp-realty.com.

INCOME OPPORTUNITY REALTY INVESTORS, INC.CONSOLIDATED STATEMENTS OF OPERATIONS For the Years Ended December 31,

2020 2019 2018

(dollars in thousands, except per share amounts)

Revenues:Revenue from operations $ - $ - $ -

Expenses:General and administrative(including $247, $260, and $284 450 494 494 for the year ended 2020, 2019,and 2018 respectively, torelated parties)Net income fee to related party 371 357 631

Advisory fee to related party 768 737 685

Total operating expenses 1,589 1,588 1,810

Net operating loss (1,589 ) (1,588 ) (1,810 )

Other income / expenses:Interest income from related 5,373 6,574 4,880 partiesOther Income 1,550 237 -

Total other income 6,923 6,811 4,880

Income before gain on sale of 5,334 5,223 3,070 real estate landGain on sale of real estate land - - 7,323

Income before taxes 5,334 5,223 10,393

Income tax expense - current 1,120 1,078 1,391

Income tax expense - deferred - - 792

Net income $ 4,214 $ 4,145 $ 8,210

Earnings per share - basic anddilutedNet income $ 1.01 $ 0.99 $ 1.97

Weighted average common shares 4,168,414 4,168,414 4,168,214 used in computing earnings pershareINCOME OPPORTUNITY REALTY INVESTORS, INC.CONSOLIDATED BALANCE SHEETSDecember 31,

December 31,

2020

2019

(dollars in thousands, except par value amount)AssetsCurrent assetsCash and cash equivalents12

5

Receivable and accrued interest from related parties90,526

86,221

Total current assets90,538

86,226

Non current assetsNotes and interest receivable from related parties13,930

14,030

Total non current assets13,930

14,030

Other assets-

-

Total Assets$

104,468

$

100,256

Liabilities and Shareholders' EquityLiabilitiesAccounts payable$

12

$

14

Total liabilities12

14

Shareholders' equityCommon stock, $.01 par value, authorized 10,000,000 shares; issued 4,173,675 and outstanding 4,168,414 shares in 2020 and 201942

42

Treasury stock at cost, 5,261 shares in 2020 and 2019(39

)

(39

)

Paid-in capital61,955

61,955

Retained Earnings42,498

38,284

Total shareholders' equity104,456

100,242

Total liabilities and shareholders' equity$

104,468

$

100,256

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