Business Wire | Aug 13, 2021 04:00PM EDT

Income Opportunity Realty Investors, Inc. Reports Second Quarter 2021 Results

Aug. 13, 2021

DALLAS--(BUSINESS WIRE)--Aug. 13, 2021--Income Opportunity Realty Investors, Inc. (NYSE American: IOR), a Dallas-based real estate investment company, today reported results of operations for the quarter ended June 30, 2021.

For the three months ended June 30, 2021, the Company reported net income of $819,000 or $0.20 per share, as compared to net income of $1,352,000 or $0.30 per share for the same period ended 2020.

Our primary business is investing in real estate and mortgage note receivables.

Expenses

General and administrative expenses were $100 thousand for the three months ended June 30, 2021. This represents a decrease of $28 thousand, compared to general and administrative expenses of $128 thousand for the three months ended June 30, 2020. This decrease was primarily driven by a decrease in legal fees of $12 thousand and audit fees of approximately $15 thousand.

Advisory fees were $201 thousand for the three months ended June 30, 2021 compared to $191 thousand for the same period in 2020 for an increase of $10 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 $55 thousand for the three months ended June 30, 2021. This represents a decrease of $57 thousand, compared to the net income fee of $112 thousand for the three months ended June 30, 2020. The net income fee paid to our Advisor is calculated at 7.5% of net income.

Other income (expense)

Interest income decreased to $1.2 million for the three months ended June 30, 2021 compared to $1.3 million for the same period in 2020. The decrease of $100 thousand was primarily due to a decrease in interest recognized due to some notes being paid off in 1Q 2021.

Other income was $162 thousand for the three months ended June 30, 2021 compared to $742 thousand for the three months ended June 30, 2020. The decrease was due to a tax increment reimbursement from City of Farmers Branch received in 2020.

About Income Opportunity Realty Investors, Inc.

Income Opportunity Realty Investors, Inc., a Dallas-based real estate investment company, currently holds a portfolio of notes receivable. 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) For the Three Months Ended For the Six Months Ended June 30, June 30, 2021 2020 2021 2020

(dollars in thousands, (dollars in thousands, except per share amounts) except per share amounts) Revenues:Revenue from $ - $ - $ - $ - operations Expenses:General andadministrative(including $155 and$120 for the six 100 128 288 267 months ended 2021and 2020,respectively, torelated parties)Net income fee to 55 112 194 198 related partyAdvisory fee to 201 191 398 380 related partyTotal operating 356 431 880 845 expensesNet operating loss (356 ) (431 ) (880 ) (845 )

Other income(expenses):Interest income 1,231 1,290 2,449 2,769 from relatedpartiesOther income 162 742 1,179 742

Total other income 1,393 2,032 3,628 3,511

Income before taxes 1,037 1,601 2,748 2,666

Income tax expense 218 336 577 560

Net income $ 819 $ 1,265 $ 2,171 $ 2,106

Earnings per share- basic and dilutedNet income $ 0.20 $ 0.30 $ 0.52 $ 0.51

Weighted averagecommon shares used 4,168,414 4,168,414 4,168,414 4,168,414 in computingearnings per shareINCOME OPPORTUNITY REALTY INVESTORS, INC.CONSOLIDATED BALANCE SHEETSJune 30,December 31,2021

2020

(Unaudited)(Audited)(dollars in thousands, except par value amount)AssetsCurrent assetsCash and cash equivalents$

2

$

12

Receivable and accrued interest from related parties94,797

90,526

Total current assets94,799

90,538

Non current assetsNotes and interest receivable from related parties11,837

13,930

Total non current assets11,837

13,930

Total Assets$

106,636

$

104,468

Liabilities and Shareholders' EquityLiabilities:Accounts payable and other liabilities$

9

$

12

Total liabilities9

12

Shareholders' equity:Common stock, $0.01 par value, authorized 10,000,000 shares; issued 4,173,675 and outstanding 4,168,414 shares in 2021 and 202042

42

Treasury stock at cost, 5,261 shares in 2021 and 2020(39

)

(39

)

Paid-in capital61,955

61,955

Retained earnings44,669

42,498

Total shareholders' equity106,627

104,456

Total liabilities and shareholders' equity$

106,636

$

104,468

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