Income Opportunity Realty Investors, Inc. (NYSE MKT: IOT), a Dallas-based real estate investment company, reported results of operations for the third quarter ended September 30, 2015. IOT announced today that the Company reported net income applicable to common shares of $680,000 or $0.16 per diluted earnings per share for the three months ended September 30, 2015, as compared to net income applicable to common shares of $623,000 or $0.16 per diluted earnings per share for the same period ended 2014.
Our primary business is investing in real estate and mortgage receivables. Land held for development or sale is our sole operating segment and as of September 30, 2015, our land consisted of approximately 185 acres of contiguous land located in Farmers Branch, Texas. There was no income generated from this segment for the three months ended September 30, 2015, nor for the prior period ended 2014. The land is part of 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 land is in a prime location for future growth and development.
The principal source of revenue for the Company is interest income on over $25.3 million of note receivables due from related parties. Interest income was $1.1 million for the three months ended September 30, 2015. This represents a decrease of $0.1 million as compared to interest income of $1.2 million for the three months ended September 30, 2014. This decrease was due to a reduction in the notes and interest receivable amount owed from related parties.
General and administrative expenses were $62,000 for the three months ended September 30, 2015. This represents a decrease of $81,000, as compared to the prior period general and administrative expenses of $143,000. This decrease was primarily due to a decrease in legal fees and professional fees.
Mortgage and loan interest was $112,000 for the three months ended September 30, 2015. This represents a decrease of $64,000 as compared to the prior period mortgage and loan interest expense of $176,000. This reduction is due to reductions in the outstanding debt obligations from the 2014 balances.
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 | For the Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
(dollars in thousands, except per share amounts) | |||||||||||||||||||||
Revenues: | |||||||||||||||||||||
Rental and other property revenues | $ | - | $ | - | $ | - | $ | - | |||||||||||||
Expenses: | |||||||||||||||||||||
Property operating expenses (including $11 and $13 for the three months and $25 and $37 for the nine months ended 2015 and 2014, respectively, from related parties) | 56 | 13 | 71 | 42 | |||||||||||||||||
General and administrative (including $45 and $61 for the three months and $171 and $198 for the nine months ended 2015 and 2014, respectively, from related parties) | 62 | 143 | 359 | 422 | |||||||||||||||||
Net income fee to related party | 51 | 51 | 142 | 152 | |||||||||||||||||
Advisory fee to related party | 176 | 173 | 526 | 516 | |||||||||||||||||
Total operating expenses | 345 | 380 | 1,098 | 1,132 | |||||||||||||||||
Net operating loss | (345 | ) | (380 | ) | (1,098 | ) | (1,132 | ) | |||||||||||||
Other income (expenses): | |||||||||||||||||||||
Interest income from related parties | 1,137 | 1,179 | 3,376 | 3,547 | |||||||||||||||||
Mortgage and loan interest | (112 | ) | (176 | ) | (441 | ) | (538 | ) | |||||||||||||
Total other income | 1,025 | 1,003 | 2,935 | 3,009 | |||||||||||||||||
Income tax expense | - | - | - | - | |||||||||||||||||
Net income | $ | 680 | $ | 623 | $ | 1,837 | $ | 1,877 | |||||||||||||
Earnings per share - basic | |||||||||||||||||||||
Net income from continuing operations | $ | 0.16 | $ | 0.15 | $ | 0.44 | $ | 0.45 | |||||||||||||
Net income applicable to common shares | $ | 0.16 | $ | 0.15 | $ | 0.44 | $ | 0.45 | |||||||||||||
Earnings per share - diluted | |||||||||||||||||||||
Net income from continuing operations | $ | 0.16 | $ | 0.15 | $ | 0.44 | $ | 0.45 | |||||||||||||
Net income applicable to common shares | $ | 0.16 | $ | 0.15 | $ | 0.44 | $ | 0.45 | |||||||||||||
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 | |||||||||||
(unaudited) | |||||||||||
September 30, | December 31, | ||||||||||
2015 | 2014 | ||||||||||
(dollars in thousands, except par value amount) | |||||||||||
Assets | |||||||||||
Real estate land holdings, at cost | $ | 22,717 | $ | 25,717 | |||||||
Total real estate | 22,717 | 25,717 | |||||||||
Notes and interest receivable from related parties | 26,143 | 27,461 | |||||||||
Less allowance for doubtful accounts | (1,826 | ) | (1,826 | ) | |||||||
Total notes and interest receivable | 24,317 | 25,635 | |||||||||
Cash and cash equivalents | 2 | 7 | |||||||||
Receivable and accrued interest from related parties | 46,135 | 40,460 | |||||||||
Other assets | 1,067 | 1,257 | |||||||||
Total assets | $ | 94,238 | $ | 93,076 | |||||||
Liabilities and Shareholders’ Equity | |||||||||||
Liabilities: | |||||||||||
Notes and interest payable - related parties | $ | 9,581 | $ | 10,240 | |||||||
Accounts payable and other liabilities | 21 | 37 | |||||||||
Total liabilities | 9,602 | 10,277 | |||||||||
Shareholders’ equity: | |||||||||||
Common stock, $0.01 par value, authorized 10,000,000; issued 4,173,675 and outstanding 4,168,214 shares in 2015 and 2014 | 42 | 42 | |||||||||
Treasury stock at cost, 5,461 shares in 2015 and 2014 | (39 | ) | (39 | ) | |||||||
Paid-in capital | 61,955 | 61,955 | |||||||||
Retained earnings | 22,678 | 20,841 | |||||||||
Total shareholders' equity | 84,636 | 82,799 | |||||||||
Total liabilities and shareholders' equity | $ | 94,238 | $ | 93,076 |
View source version on businesswire.com: http://www.businesswire.com/news/home/20151113005763/en/
Contacts:
Investor
Relations
Gene Bertcher, 800-400-6407
investor.relations@incomeopp-realty.com