Business Wire | Nov 12, 2020 05:20PM EST

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

Nov. 12, 2020

DALLAS--(BUSINESS WIRE)--Nov. 12, 2020--Income Opportunity Realty Investors, Inc. (NYSE American: IOR), a Dallas-based real estate investment company, today reported results of operations for the third quarter ended September 30, 2020.

For the three months ended September 30, 2020, the Company reported net income of $761 thousand or $0.18 per diluted share, as compared to $1.0 million or $0.25 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 were $94 thousand for the three months ended September 30, 2020. This represents a decrease of $5 thousand, compared to general and administrative expenses of $99 thousand for the three months ended September 30, 2019. This decrease was primarily driven by a decrease in professional fees.

Advisory fees were $194 thousand for the three months ended September 30, 2020 compared to $186 thousand for the same period in 2019 for an increase of $8 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 $51 thousand for the three months ended September 30, 2020. This represents a decrease of $32 thousand, compared to the net income fee of $83 thousand for the three months ended September 30, 2019. The net income fee paid to our Advisor is calculated at 7.5% of net income.

Other income (expense)

Interest income decreased to $1.3 million for the three months ended September 30, 2020 compared to $1.7 million for the same period in 2019. The decrease of $400 thousand 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 Nine Months Ended September 30, September 30, 2020 2019 2020 2019

(dollars in thousands, except per share amounts) Expenses: General andadministrative(including$190 and $209 for the nine $ 94 $ 99 $ 361 $ 407 months ended2020 and 2019,respectively,to relatedparties)Net income fee 51 83 249 273 to related partyAdvisory fee 194 186 574 550 to related partyTotal 339 368 1,184 1,230 operating expensesNet operating (339 ) (368 ) (1,184 ) (1,230 )loss Other income (expenses): Interestincome from 1,302 1,672 4,071 4,991 relatedpartiesOther Income - - 742 147

Total other 1,302 1,672 4,813 5,138 incomeIncome before 963 1,304 3,629 3,908 income taxesIncome tax 202 274 762 821 expenseNet income $ 761 $ 1,030 $ 2,867 $ 3,087

Earnings pershare - basic and dilutedNet income $ 0.18 $ 0.25 $ 0.69 $ 0.74

Weightedaverage commonshares used in 4,168,214 4,168,214 4,168,214 4,168,214 computingearnings pershareINCOME OPPORTUNITY REALTY INVESTORS, INC.CONSOLIDATED BALANCE SHEETSSeptember 30,December 31,2020

2019

(Unaudited)(Audited)(dollars in thousands, except par value amount)Assets

Notes and interest receivable from related parties$

13,577

$

14,030

Total notes and interest receivable13,577

14,030

Cash and cash equivalents58

5

Receivable and accrued interest from related parties89,475

86,221

Total assets$

103,110

$

100,256

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

1

$

14

Total liabilities1

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 201942

42

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

)

(39

)

Paid-in capital61,955

61,955

Retained earnings41,151

38,284

Total shareholders' equity103,109

100,242

Total liabilities and shareholders' equity$

103,110

$

100,256

View source version on businesswire.com: https://www.businesswire.com/news/home/20201112006108/en/

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