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 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 for the year ended 2020, 2019, and 2018 respectively, to related parties) |
|
450 |
|
|
494 |
|
|
494 |
|
|||
| 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 parties |
|
5,373 |
|
|
6,574 |
|
|
4,880 |
|
|||
| Other Income |
|
1,550 |
|
|
237 |
|
|
- |
|
|||
| Total other income |
|
6,923 |
|
|
6,811 |
|
|
4,880 |
|
|||
| Income before gain on sale of real estate land |
|
5,334 |
|
|
5,223 |
|
|
3,070 |
|
|||
| Gain 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 and diluted | ||||||||||||
| Net income | $ |
1.01 |
|
$ |
0.99 |
|
$ |
1.97 |
|
|||
| Weighted average common shares used in computing earnings per share |
|
4,168,414 |
|
|
4,168,414 |
|
|
4,168,214 |
|
|||
| INCOME OPPORTUNITY REALTY INVESTORS, INC. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
December 31, |
December 31, |
|||||||
2020 |
2019 |
|||||||
| (dollars in thousands, except par value amount) | ||||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents |
|
12 |
|
|
5 |
|
||
| Receivable and accrued interest from related parties |
|
90,526 |
|
|
86,221 |
|
||
| Total current assets |
|
90,538 |
|
|
86,226 |
|
||
| Non current assets | ||||||||
| Notes and interest receivable from related parties |
|
13,930 |
|
|
14,030 |
|
||
| Total non current assets |
|
13,930 |
|
|
14,030 |
|
||
| Other assets |
|
- |
|
|
- |
|
||
| Total Assets | $ |
104,468 |
|
$ |
100,256 |
|
||
| Liabilities and Shareholders' Equity | ||||||||
| Liabilities | ||||||||
| Accounts payable | $ |
12 |
|
$ |
14 |
|
||
| Total liabilities |
|
12 |
|
|
14 |
|
||
| Shareholders’ equity | ||||||||
| Common stock, $.01 par value, authorized 10,000,000 shares; issued 4,173,675 and outstanding 4,168,414 shares in 2020 and 2019 |
|
42 |
|
|
42 |
|
||
| Treasury stock at cost, 5,261 shares in 2020 and 2019 |
|
(39 |
) |
|
(39 |
) |
||
| Paid-in capital |
|
61,955 |
|
|
61,955 |
|
||
| Retained Earnings |
|
42,498 |
|
|
38,284 |
|
||
| Total shareholders' equity |
|
104,456 |
|
|
100,242 |
|
||
| Total liabilities and shareholders' equity | $ |
104,468 |
|
$ |
100,256 |
|
||
