Income Opportunity Realty Investors, Inc. Reports Earnings for Quarter Ended September 30, 2024

Rhea-AI Summary

Income Opportunity Realty Investors (NYSE American:IOR) reported financial results for Q3 2024. The company posted net income of $1.2 million, or $0.29 per diluted share, compared to $1.6 million, or $0.39 per share in Q3 2023. The decline in net income was primarily due to decreased interest income, partially offset by lower advisory fees.

Positive

• Reduced advisory fees contributing to cost savings

Negative

• Net income decreased by 25% from $1.6M to $1.2M year-over-year
• Earnings per share declined from $0.39 to $0.29
• Interest income decreased

Insights

Financial Analyst

The Q3 2024 earnings report shows concerning trends for Income Opportunity Realty Investors. Net income dropped by 25% year-over-year to $1.2 million ($0.29 per share) from $1.6 million ($0.39 per share). The decline was primarily driven by lower interest income, though partially offset by reduced advisory fees. For a small-cap REIT with a market cap of $73.4 million, this 25% earnings decline is significant and suggests potential challenges in their investment portfolio's performance. The reduced interest income could indicate either lower yields on investments or a smaller investment base, both of which warrant investor attention.

DALLAS--(BUSINESS WIRE)-- Income Opportunity Realty Investors, Inc. (NYSE American:IOR) is reporting its results of operations for the quarter ended September 30, 2024. For the three months ended September 30, 2024, we reported net income attributable to common shares of $1.2 million or $0.29 per diluted share compared to a net income of $1.6 million or $0.39 per share for the same period in 2023. Our decrease in net income is attributable to a decrease in interest income offset in part by a decrease in advisory fees.

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
(Dollars in thousands, except per share amounts)
(Unaudited)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
Revenues:
Other Income		$	-			$	-			$	-			$	-
Expenses:
General and administrative			71				91				230				385
Advisory fee to related party			26				346				76				1,045
Total operating expenses			97				437				306				1,430
Net operating loss			(97	)			(437	)			(306	)			(1,430	)
Interest income from related parties			1,614				2,516				4,785				7,160
Income tax provision			(319	)			(436	)			(941	)			(1,203	)
Net income			1,198				1,643				3,538				4,527
Earnings per share
Basic and diluted		$	0.29			$	0.39			$	0.87			$	1.09
Weighted average common shares used in computing earnings per share
Basic and diluted			4,070,327				4,168,414				4,085,134				4,168,414

 

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Income Opportunity Realty Investors, Inc.

Investor Relations

Erik Johnson (469) 522-4200

investor.relations@incomeopp-invest.com

Source: Income Opportunity Realty Investors, Inc.

FAQ

What was Income Opportunity Realty Investors (IOR) earnings per share in Q3 2024?

Income Opportunity Realty Investors reported earnings of $0.29 per diluted share for Q3 2024.

How much did Income Opportunity Realty Investors (IOR) net income change in Q3 2024 vs Q3 2023?

IOR's net income decreased from $1.6 million in Q3 2023 to $1.2 million in Q3 2024.

What factors affected Income Opportunity Realty Investors (IOR) Q3 2024 earnings?

IOR's earnings were negatively affected by decreased interest income, partially offset by lower advisory fees.