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 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 June 30, | For the Six Months Ended June 30, | |||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
| (dollars in thousands, except per share amounts) | (dollars in thousands, except per share amounts) | |||||||||||||||
| Revenues: | ||||||||||||||||
| Revenue from operations | $ |
- |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
||||
| Expenses: | ||||||||||||||||
| General and administrative (including $155 and $120 for the six months ended 2021 and 2020, respectively, to related parties) |
|
100 |
|
|
128 |
|
|
288 |
|
|
267 |
|
||||
| Net income fee to related party |
|
55 |
|
|
112 |
|
|
194 |
|
|
198 |
|
||||
| Advisory fee to related party |
|
201 |
|
|
191 |
|
|
398 |
|
|
380 |
|
||||
| Total operating expenses |
|
356 |
|
|
431 |
|
|
880 |
|
|
845 |
|
||||
| Net operating loss |
|
(356 |
) |
|
(431 |
) |
|
(880 |
) |
|
(845 |
) |
||||
| Other income (expenses): | ||||||||||||||||
| Interest income from related parties |
|
1,231 |
|
|
1,290 |
|
|
2,449 |
|
|
2,769 |
|
||||
| Other 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 diluted | ||||||||||||||||
| Net income | $ |
0.20 |
|
$ |
0.30 |
|
$ |
0.52 |
|
$ |
0.51 |
|
||||
| Weighted average common shares used in computing earnings per share |
|
4,168,414 |
|
|
4,168,414 |
|
|
4,168,414 |
|
|
4,168,414 |
|
||||
| INCOME OPPORTUNITY REALTY INVESTORS, INC. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
|
||||||||
| June 30, | December 31, | |||||||
2021 |
2020 |
|||||||
| (Unaudited) | (Audited) | |||||||
| (dollars in thousands, except par value amount) | ||||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ |
2 |
|
$ |
12 |
|
||
| Receivable and accrued interest from related parties |
|
94,797 |
|
|
90,526 |
|
||
| Total current assets |
|
94,799 |
|
|
90,538 |
|
||
| Non current assets | ||||||||
| Notes and interest receivable from related parties |
|
11,837 |
|
|
13,930 |
|
||
| Total non current assets |
|
11,837 |
|
|
13,930 |
|
||
| Total Assets | $ |
106,636 |
|
$ |
104,468 |
|
||
| Liabilities and Shareholders' Equity | ||||||||
| Liabilities: | ||||||||
| Accounts payable and other liabilities | $ |
9 |
|
$ |
12 |
|
||
| Total liabilities |
|
9 |
|
|
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 capital |
|
61,955 |
|
|
61,955 |
|
||
| Retained earnings |
|
44,669 |
|
|
42,498 |
|
||
| Total shareholders' equity |
|
106,627 |
|
|
104,456 |
|
||
| Total liabilities and shareholders' equity | $ |
106,636 |
|
$ |
104,468 |
|
||
