Business Wire | Nov 10, 2021 04:30PM EST

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

Nov. 10, 2021

DALLAS--(BUSINESS WIRE)--Nov. 10, 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 September 30, 2021.

During the three months ended September 30, 2021, the Company reported net income of $712,000 thousand or $0.17 per diluted share, as compared to net income of $761,000 thousand or $0.18 per diluted 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 $88,000 thousand for the three months ended September 30, 2021. This represents a decrease of $6,000 thousand, compared to general and administrative expenses of $94,000 thousand for the three months ended September 30, 2020. This decrease was primarily driven by a decrease in cost reimbursements to our Advisor of approximately $5,000 thousand.

Advisory fees were $201,000 thousand for the three months ended September 30, 2021, compared to $194,000 thousand for the same period in 2020 for an increase of $7,000 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 $56,000 thousand for the three months ended September 30, 2021. This represents an increase of $5,000 thousand, compared to the net income fee of $51,000 thousand for the three months ended September 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 $1,248 thousand for the three months ended September 30, 2021, compared to $1.302 thousand for the same period in 2020. The decrease of $54,000 thousand was primarily due to a decrease in interest recognized due to some notes being paid off in 1Q 2021.

Other income was $1,179 thousand for the nine months ended September 30, 2021, due to the collection of a note previously written off. Other income of $742 thousand for the nine months ended September 30, 2020, was due to a tax increment reimbursement from the City of Farmers Branch, Texas for previous infrastructure development performed by the Company.

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 For the Nine Months Ended September 30, Ended September 30, 2021 2020 2021 2020

(dollars in (dollars in thousands, except thousands, except per per share amounts) share amounts)

Revenues: Revenue from operations $ - $ - $ - $ -

Expenses: General and administrative (including $220 and $190 for the nine 88 94 376 361 months ended 2021 and 2020, respectively, to related parties)

Net income fee to related 56 51 250 249 party Advisory fee to related party 201 194 599 574

Total operating expenses 345 339 1,225 1,184

Net operating loss (345) (339) (1,225) (1,184)

Other income (expenses): Interest income from related 1,248 1,302 3,697 4,071 parties Other income - - 1,179 742

Total other income 1,248 1,302 4,876 4,813

Income before taxes 903 963 3,651 3,629

Income tax expense 191 202 768 762

Net income $ 712 $ 761 $ 2,883 $ 2,867

Earnings per share - basic and diluted Net income $ 0.17 $ 0.18 $ 0.69 $ 0.69

Weighed average common shares used in computing earnings per 4,168,414 4,168,414 4,168,414 4,168,414 share

INCOME OPPORTUNITY REALTY INVESTORS, INC.CONSOLIDATED BALANCE SHEETSSeptember 30,December 31,2021

2020

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

13

$

12

Receivable and accrued interest from related parties95,827

90,526

Total current assets95,840

90,538

Non current assetsNotes and interest receivable from related parties11,510

13,930

Total non current assets11,510

13,930

Total Assets$

107,350

$

104,468

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

11

$

12

Total liabilities11

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 2020

42

42

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

(39)

Paid-in capital61,955

61,955

Retained earnings45,381

42,498

Total shareholders' equity107,339

104,456

Total liabilities and shareholders' equity$

107,350

$

104,468

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