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

DALLAS--(BUSINESS WIRE)--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 March 31, 2020.

For the three months ended March 31, 2020, the Company reported a net income per diluted share of $841,000 or $0.20 per diluted share, as compared to net income of $970,000 or $0.23 per diluted share for the same period ended 2019.

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

Expenses

General and administrative expenses were $139 thousand for the three months ended March 31, 2020. This represents an increase of $6 thousand, compared to general and administrative expenses of $133 thousand for the three months ended March 31, 2019. This increase was primarily driven by an increase in legal fees of approximately $8 thousand.

Advisory fees were $189 thousand for the three months ended March 31, 2020 compared to $181 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 $86 thousand for the three months ended March 31, 2020. This represents a decrease of $14 thousand, compared to the net income fee of $100 thousand for the three months ended March 31, 2019. The net income fee paid to our Advisor is calculated at 7.5% of net income.

Other income (expense)

Interest income decreased to $1.5 million for the three months ended March 31, 2020 compared to $1.6 million for the same period in 2019. The decrease of $100 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)
	For the Three Months Ended March 31,
	2020	2019
	(dollars in thousands, except per share amounts)
Expenses:
General and administrative (including $72 and $87 for the three months ended 2020 and 2019, respectively, to related parties)	$ 139	$ 133
Net income fee to related party	86	100
Advisory fee to related party	189	181
Total operating expenses	414	414
Net operating loss	(414)	(414)
Other income (expenses):
Interest income from related parties	1,479	1,642
Total other income	1,479	1,642
Income before taxes	1,065	1,228
Income tax expense	224	258
Net income	$ 841	$ 970
Earnings per share - basic and diluted
Net income	$ 0.20	$ 0.23
Weighted average common shares used in computing earnings per share	4,168,214	4,168,214

INCOME OPPORTUNITY REALTY INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS
	March 31,	December 31,
	2020	2019
	(Unaudited)	(Audited)
	(dollars in thousands, except par value amount)
Assets
Notes and interest receivable from related parties	$ 13,573	$ 14,030
Total notes and interest receivable	13,573	14,030
Cash and cash equivalents	14	5
Receivable and accrued interest from related parties	87,496	86,221
Total assets	$ 101,083	$ 100,256
Liabilities and Shareholders’ Equity
Liabilities:
Accounts payable and other liabilities	$ -	$ 14
Total liabilities	-	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 2019	42	42
Treasury stock at cost, 5,461 shares in 2020 and 2019	(39)	(39)
Paid-in capital	61,955	61,955
Retained earnings	39,125	38,284
Total shareholders' equity	101,083	100,242
Total liabilities and shareholders' equity	$ 101,083	$ 100,256