Market Overview

Income Opportunity Realty Investors, Inc. Reports Fourth Quarter and Full Year 2016 Results

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Income Opportunity Realty Investors, Inc. (NYSE MKT: IOT), a
Dallas-based real estate investment company, today reported results of
operations for the fourth quarter ended December 31, 2016. For the three
months ended December 31, 2016, the Company reported net loss of $0.3
million or a loss of ($0.07) per share for the period ended December 31,
2016, as compared to a net loss of $0.3 million or a loss of ($0.08) per
share for the same period ended 2015.

We had net income applicable to common shares of $2.1 million or $0.50
per diluted earnings per share for the year ended December 31, 2016
compared to a net income applicable to common shares of $1.5 million or
$0.36 per diluted earnings per share for the same period ended 2015.

Land held subject to sales contract is our sole operating segment. In
November 2015, the Company entered into a sales contract with an
unrelated party. The contract was for all of the developable land owned
by the Company. Due to the continuing involvement of the seller,
including the level of seller financing involved, the transaction is
being accounted for under the deposit method. Under the deposit method,
no revenue is recognized and the asset remains on the books until the
criteria for full revenue recognition are met. There was no income
generated from this segment for the years ended December 31, 2016 and
December 31, 2015.

The Company incurred no property operating expenses for the year ended
December 31, 2016 compared to property operating expenses of $61,000 for
the year ended December 31, 2015. This decrease was a direct result of
the sale of the land in 2015.

General and administrative expenses were $396,000 for the year ended
December 31, 2016. This represents a decrease of $70,000 compared to
general and administrative expenses of $466,000 for the year ended
December 31, 2015. This decrease was primarily due to a decrease in
legal expenses.

Net income fee to related party was $257,000 for the year ended December
31, 2016. This represents an increase of $70,000, as compared to the net
income fee of $187,000 for the year ended December 31, 2015. The net
income fee paid is calculated at the rate of 7.5% of net income.

Advisory fees were $639,000 for the year ended December 31, 2016, for a
decrease of $65,000 compared to advisory fees of $704,000 for the year
ended December 31, 2015. 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.

Interest income was $4.5 million for the year ended December 31, 2016,
an increase of $0.1 million compared to interest income of $4.4 million
for the year ended December 31, 2015.

The Company incurred no mortgage and loan interest expense for the year
ended December 31, 2016 compared to $652,000 for the year ended December
31, 2015. This decrease was due to the payoff of the mortgage
obligations 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
 
For the Years Ended December 31,
2016 2015 2014
(dollars in thousands, except per share amounts)
Revenues:
Rental and other property revenues $ - $ - $ -
 
Expenses:
Property operating expenses (including $0 ,$10 and $46 for the year
ended 2016, 2015 and 2014, respectively, from related parties)
- 61 50
General and administrative (including $213, $240 and $237 for the
year ended 2016, 2015 and 2014, respectively, from related parties)
396 466 573
Net income fee to related party 257 187 203
Advisory fee to related party   639     704     692  
Total operating expenses   1,292     1,418     1,518  
Net operating loss (1,292 ) (1,418 ) (1,518 )
 
Other income (expenses):
Interest income from related parties 4,494 4,376 4,729
Mortgage and loan interest   -     (652 )   (706 )
Total other income   4,494     3,724     4,023  
 
Income before taxes 3,202 2,306 2,505
Income tax expense   (1,121 )  
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