Income Opportunity Realty Investors, Inc. Reports Third Quarter 2021 Results

DALLAS--(BUSINESS WIRE)-- Income Opportunity Realty Investors, Inc. (NYSE American: IOR), a Dallas-based real estate investment company, today reported results of operations for the quarter ended September 30, 2021.

During the three months ended September 30, 2021, the Company reported net income of $712,000 thousand or $0.17 per diluted share, as compared to net income of $761,000 thousand or $0.18 per diluted share for the same period ended 2020.

Our primary business is investing in real estate and mortgage note receivables.

Expenses

General and administrative expenses were $88,000 thousand for the three months ended September 30, 2021. This represents a decrease of $6,000 thousand, compared to general and administrative expenses of $94,000 thousand for the three months ended September 30, 2020. This decrease was primarily driven by a decrease in cost reimbursements to our Advisor of approximately $5,000 thousand.

Advisory fees were $201,000 thousand for the three months ended September 30, 2021, compared to $194,000 thousand for the same period in 2020 for an increase of $7,000 thousand. 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 was $56,000 thousand for the three months ended September 30, 2021. This represents an increase of $5,000 thousand, compared to the net income fee of $51,000 thousand for the three months ended September 30, 2020. The net income fee paid to our Advisor is calculated at 7.5% of net income.

Other income (expense)

Interest income decreased to $1,248 thousand for the three months ended September 30, 2021, compared to $1.302 thousand for the same period in 2020. The decrease of $54,000 thousand was primarily due to a decrease in interest recognized due to some notes being paid off in 1Q 2021.

Other income was $1,179 thousand for the nine months ended September 30, 2021, due to the collection of a note previously written off. Other income of $742 thousand for the nine months ended September 30, 2020, was due to a tax increment reimbursement from the City of Farmers Branch, Texas for previous infrastructure development performed by the Company.

About Income Opportunity Realty Investors, Inc.

Income Opportunity Realty Investors, Inc., a Dallas-based real estate investment company, currently holds a portfolio of notes receivable. 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 September 30,				For the Nine Months Ended September 30,
			2021		2020		2021		2020
		(dollars in thousands, except per share amounts)				(dollars in thousands, except per share amounts)

Revenues:
	Revenue from operations	$	-	$	-	$	-	$	-


Expenses:
	General and administrative (including $220 and $190 for the nine months ended 2021 and 2020, respectively, to related parties)		88		94		376		361
	Net income fee to related party		56		51		250		249
	Advisory fee to related party		201		194		599		574
	Total operating expenses		345		339		1,225		1,184
	Net operating loss		(345)		(339)		(1,225)		(1,184)

Other income (expenses):
	Interest income from related parties		1,248		1,302		3,697		4,071
	Other income		-		-		1,179		742
	Total other income		1,248		1,302		4,876		4,813
	Income before taxes		903		963		3,651		3,629
	Income tax expense		191		202		768		762
	Net income	$	712	$	761	$	2,883	$	2,867

	Earnings per share - basic and diluted
	Net income	$	0.17	$	0.18	$	0.69	$	0.69

	Weighed average common shares used in computing earnings per share	4,168,414		4,168,414		4,168,414		4,168,414

INCOME OPPORTUNITY REALTY INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS

	September 30,		December 31,
	2021		2020
	(Unaudited)		(Audited)
	(dollars in thousands, except par value amount)

Assets

Current assets
Cash and cash equivalents	$	13	$	12
Receivable and accrued interest from related parties		95,827		90,526
Total current assets		95,840		90,538

Non current assets
Notes and interest receivable from related parties		11,510		13,930
Total non current assets		11,510		13,930

Total Assets	$	107,350	$	104,468


Liabilities and Shareholders' Equity
Liabilities:
Accounts payable and other liabilities	$	11	$	12
Total liabilities		11		12
Shareholders’ equity:
Common stock, $0.01 par value, authorized 10,000,000 shares; issued 4,173,675 and outstanding 4,168,414 shares in 2021 and 2020		42		42
Treasury stock at cost, 5,261 shares in 2021 and 2020		(39)		(39)
Paid-in capital		61,955		61,955
Retained earnings		45,381		42,498
Total shareholders' equity		107,339		104,456
Total liabilities and shareholders' equity	$	107,350	$	104,468