Market Overview

Income Opportunity Realty Investors, Inc. Reports First Quarter 2016 Results

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DALLAS--(BUSINESS WIRE)--

Income Opportunity Realty Investors, Inc. (NYSE MKT: IOT), a Dallas-based real estate investment company, today reported results of operations for the first quarter ended March 31, 2016.

Our primary business is investing in real estate and mortgage note receivables. Land held for development or sale is our sole operating segment. The Company has invested in over 170 acres of land held for development or sale in Farmers Branch, Texas. The project, in total, is a 1,200 acre assembly of properties at the demographic center of the Dallas – Fort Worth Metroplex. Surrounded by three major highways and adjacent to current and future public transportation systems, the project is in a prime location for future growth and development.

Revenues

We had net income of $893,000 or $0.21 per diluted earnings per share for the three months ended March 31, 2016, as compared to net income of $554,000 or $0.13 per diluted earnings per share for the same period ended 2015.

Land held subject to a sales contract is our sole operating segment. There was no income generated from this segment for the three months ended March 31, 2016, nor for the prior period ended 2015.

Expense

General and administrative expenses were $93,000 for the three months ended March 31, 2016. This represents a decrease of $81,000, as compared to the prior period general and administrative expenses of $174,000. This decrease was primarily due to a decrease in legal fees and a decrease in the administration expense paid to a related party.

Net income fee increased $27,000 for the three months ended March 31, 2016 as compared to the prior period.

Advisory fees were $153,000 for the three months ended March 31, 2016. This represents a decrease of $22,000, as compared to the prior period advisory fees of $175,000.

Other income (expense)

Interest income was $1.2 million for the three months ended March 31, 2016. This represents an increase of $88,000 as compared to interest income of $1.1 million for the three months ended March 31, 2015.

The company did not pay any mortgage and loan interest for the three months ending March 31, 2016. This represents a decrease of $165,000 as compared to the prior period mortgage and loan interest expense of $165,000. This decrease was due to the payoff of the mortgages for Mercer Crossing and Propel during 2015.

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,
2016 2015
 
Revenues:
Rental and other property revenues $ - $ -
 
Expenses:
Property operating expenses (including $0 and $7 for the three months ended 2016 and 2015, respectively, from related parties) - 7
General and administrative (including $43 and $68 for the three months ended 2016 and 2015, respectively, from related parties) 93 174
Net income fee to related party 72 45
Advisory fee to related party   153     175  
Total operating expenses   318     401  
Net operating loss (318 ) (401 )
 
Other income (expenses):
Interest income from related parties 1,208 1,120
Other Income 3 -
Mortgage and loan interest   -     (165 )
Total other income   1,211     955  
Net income $ 893   $ 554  
 
Earnings per share - basic
Net income from continuing operations $ 0.21   $ 0.13  
Net income applicable to common shares $ 0.21   $ 0.13  
 
Earnings per share - diluted
Net income from continuing operations $ 0.21   $ 0.13  
Net income applicable to common shares $ 0.21   $ 0.13  
 
Weighted average common shares used in computing earnings per share 4,168,214 4,168,214
Weighted average common shares used in computing diluted earnings per share 4,168,214 4,168,214
 
         
INCOME OPPORTUNITY REALTY INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
March 31, December 31,
2016 2015
(dollars in thousands, except par value amount)
Assets
Real estate land holdings subject to sales contract, at cost $ 22,717   $ 22,717  
Total real estate 22,717 22,717
 
Notes and interest receivable from related parties 24,870 26,708
Less allowance for doubtful accounts   (1,826 )   (1,826 )
Total notes and interest receivable 23,044 24,882
 
Cash and cash equivalents 1 2
Receivable and accrued interest from related parties 37,043 34,313
Other assets   2,391     2,390  
Total assets $ 85,196   $ 84,304  
 
Liabilities and Shareholders' Equity
Liabilities:
Accounts payable and other liabilities
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