Income Opportunity Realty Investors, Inc. (NYSE MKT: IOT), a Dallas-based real estate investment company, reported results of operations for the second quarter ended June 30, 2016. IOT announced today that the Company reported net income applicable to common shares of $743,000 or $0.18 per diluted earnings per share for the three months ended June 30, 2016, as compared to net income applicable to common shares of $603,000 or $0.14 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, the no revenue is recognized and the asset remains on the books until the criteria for full revenue recognition are met. There was no revenue or operating expenses for this segment for the three months ended June 30, 2016.
IOT has notes receivable of $25.6 million at June 30, 2016. Interest income was $1.1 million for the three months ended June 30, 2016, a decrease of $34,000 from interest income recognized in the first quarter of 2015.
The company incurred no mortgage or loan interest for the three months ended June 30, 2016 as these obligations were paid off in 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) | |||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
| (dollars in thousands, except per share amounts) | |||||||||||||||||||||
| Revenues: | |||||||||||||||||||||
| Rental and other property revenues | $ | - | $ | - | $ | - | $ | - | |||||||||||||
| Expenses: | |||||||||||||||||||||
| Property operating expenses (including $0 and $8 for the three months and $0 and $15 for the six months ended 2016 and 2015, respectively, from related parties) | - | 8 | - | 16 | |||||||||||||||||
| General and administrative (including $47 and $59 for the three months and $90 and $127 for the six months ended 2016 and 2015, respectively, from related parties) | 128 | 122 | 221 | 297 | |||||||||||||||||
| Net income fee to related party | 54 | 46 | 126 | 90 | |||||||||||||||||
| Advisory fee to related party | 160 | 176 | 313 | 350 | |||||||||||||||||
| Total operating expenses | 342 | 352 | 660 | 753 | |||||||||||||||||
| Net operating loss | (342 | ) | (352 | ) | (660 | ) | (753 | ) | |||||||||||||
| Other income (expenses): | |||||||||||||||||||||
| Interest income from related parties | 1,085 | 1,120 | 2,293 | 2,239 | |||||||||||||||||
| Other income | - | - | 3 | - | |||||||||||||||||
| Mortgage and loan interest | - | (165 | ) | - | (329 | ) | |||||||||||||||
| Total other income | 1,085 | 955 | 2,296 | 1,910 | |||||||||||||||||
| Net income | $ | 743 | $ | 603 | $ | 1,636 | $ | 1,157 | |||||||||||||
| Earnings per share - basic | |||||||||||||||||||||
| Net income from continuing operations | $ | 0.18 | $ | 0.14 | $ | 0.39 | $ | 0.28 | |||||||||||||
| Net income applicable to common shares | $ | 0.18 | $ | 0.14 | $ | 0.39 | $ | 0.28 | |||||||||||||
| Earnings per share - diluted | |||||||||||||||||||||
| Net income from continuing operations | $ | 0.18 | $ | 0.14 | $ | 0.39 | $ | 0.28 | |||||||||||||
| Net income applicable to common shares | $ | 0.18 | $ | 0.14 | $ | 0.39 | $ | 0.28 | |||||||||||||
| Weighted average common shares used in computing earnings per share | 4,168,214 | 4,168,214 | 4,168,214 | 4,168,214 | |||||||||||||||||
| Weighted average common shares used in computing diluted 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, | ||||||||||
| 2016 | 2015 | ||||||||||
| (unaudited) | |||||||||||
| (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 | 25,589 | 26,708 | |||||||||
| Less allowance for doubtful accounts | (1,826 | ) | (1,826 | ) | |||||||
| Total notes and interest receivable | 23,763 | 24,882 | |||||||||
| Cash and cash equivalents | 1 | 2 | |||||||||
| Receivable and accrued interest from related parties | 37,219 | 34,313 | |||||||||
| Other assets | 2,257 | 2,390 | |||||||||
| Total assets | $ | 85,957 | $ | 84,304 | |||||||
| Liabilities and Shareholders’ Equity | |||||||||||
| Liabilities: | |||||||||||
| Accounts payable and other liabilities | $ | 23 | $ | 6 | |||||||
| Total liabilities | 23 | 6 | |||||||||
| Shareholders’ equity: | |||||||||||
| Common stock, $0.01 par value, authorized 10,000,000; issued 4,173,675 and outstanding 4,168,214 shares in 2016 and 2015 | 42 | 42 | |||||||||
| Treasury stock at cost, 5,461 shares in 2016 and 2015 | (39 | ) | (39 | ) | |||||||
| Paid-in capital | 61,955 | 61,955 | |||||||||
| Retained earnings | 23,976 | 22,340 | |||||||||
| Total shareholders' equity | 85,934 | 84,298 | |||||||||
| Total liabilities and shareholders' equity | $ | 85,957 | $ | 84,304 | |||||||
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Contacts:
Investor
Relations
Gene Bertcher, 800-400-6407
investor.relations@incomeopp-realty.com
