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Income Opportunity Realty Investors, Inc. Reports Second Quarter 2018 Results

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Income Opportunity Realty Investors, Inc. (NYSE:IOR), a
Dallas-based real estate investment company, today reported results of
operations for the quarter ended June 30, 2018. For the three months
ended June 30, 2018, we reported a net income applicable to common
shares of $0.7 million or $0.17 per diluted share for the three months
ended June 30, 2018, as compared to net income of $1.0 million or $0.24
per diluted share for the same period ended 2017.

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

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 June 30, 2018 and the prior period ended 2017.

Expenses

There were no property operating expenses for the three months ended
June 30, 2018 as well as in the prior period.

General and administrative expenses were $153,000 for the three months
ended June 30, 2018. This represents an increase of $34,000, as compared
to the prior period general and administrative expenses of $119,000.
This increase was primarily due to an increase in professional fees and
cost reimbursements in accordance to an advisory agreement.

Advisory fees were $168,000 for the three months ended June 30, 2018
compared to $164,000 for the same period of 2017 for an increase of
$4,000. 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 decreased $24,000 to $77,000 for the
three months ended June 30, 2018 compared to the prior period. The net
income fee paid to our Advisor is calculated at 7.5% of net income.

Other income (expense)

Interest income remained constant at approximately $1.1 million for the
three months ended June 30, 2018 and 2017.

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)
Three Months Ended June 30, Six Months Ended June 30,
  2018     2017     2018     2017  
(dollars in thousands, except per share amounts)
Revenues:
Rental and other property revenues $ - $ - $ - $ -
 
Expenses:
Property operating expenses 0 - 0 -
General and administrative (including $69 and $57 for the three
months and $133 and $111 for the six months ended 2018 and 2017,
respectively, to related parties)
153 119 276 249
Net income fee to related party 53 77 106 137
Advisory fee to related party   168     164     332     326  
Total operating expenses   374     360     714     712  
Net operating loss (374 ) (360 ) (714 ) (712 )
 
Other income (expenses):
Interest income from related parties 1,081 1,119 2,123 2,208
Other Income   -     250     -     250  
Total other income   1,081     1,369     2,123     2,458  
Income before taxes   707     1,009     1,409     1,746  
Net income $ 707   $ 1,009   $ 1,409   $ 1,746  
 
Earnings per share - basic and diluted
Net income $ 0.17   $ 0.24   $ 0.34   $ 0.42  
 
Weighted average common shares used in computing earnings per share 4,168,214 4,168,214 4,168,214 4,168,214
     
INCOME OPPORTUNITY REALTY INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS
 
June 30, December 31,
  2018     2017  
(unaudited) (audited)
(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   14,015     14,030  
Total notes and interest receivable 14,015 14,030
Cash and cash equivalents - 2
Receivable and accrued interest from related parties 51,783 49,631
Other assets   793     1,517  
Total assets $ 89,308   $ 87,897  
 
Liabilities and Shareholders' Equity
Liabilities:
Accounts payable and other liabilities $ 12   $ 10  
Total liabilities 12 10
Shareholders' equity:
Common stock, $0.01 par value, authorized 10,000,000 shares; issued
4,173,675 and outstanding 4,168,214 shares in 2018 and 2017
42 42
Treasury stock at cost, 5,461 shares in 2018 and 2017 (39 ) (39 )
Paid-in capital 61,955 61,955
Retained earnings   27,338     25,929  
Total shareholders' equity   89,296     87,887  
Total liabilities and shareholders' equity $ 89,308   $ 87,897  

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