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

Rhea-AI Summary

Income Opportunity Realty Investors (IOR) reported a net income of $819,000 ($0.20 per share) for Q2 2021, down from $1,352,000 ($0.30 per share) in Q2 2020. General and administrative expenses decreased to $100,000 from $128,000, primarily due to reduced legal and audit fees. However, advisory fees increased by $10,000 to $201,000. Other income fell significantly from $742,000 to $162,000, largely due to a prior tax reimbursement. Interest income also decreased to $1.2 million versus $1.3 million in the same quarter last year.

Positive

• General and administrative expenses decreased by $28,000 compared to Q2 2020.
• Total assets increased to $106.6 million from $104.5 million.
• Retained earnings rose to $44.7 million from $42.5 million.

Negative

• Net income dropped to $819,000 from $1,352,000 year-over-year.
• Interest income fell from $1.3 million to $1.2 million.
• Other income decreased significantly from $742,000 to $162,000.

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

For the three months ended June 30, 2021, the Company reported net income of $819,000 or $0.20 per share, as compared to net income of $1,352,000 or $0.30 per 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 $100 thousand for the three months ended June 30, 2021. This represents a decrease of $28 thousand, compared to general and administrative expenses of $128 thousand for the three months ended June 30, 2020. This decrease was primarily driven by a decrease in legal fees of $12 thousand and audit fees of approximately $15 thousand.

Advisory fees were $201 thousand for the three months ended June 30, 2021 compared to $191 thousand for the same period in 2020 for an increase of $10 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 $55 thousand for the three months ended June 30, 2021. This represents a decrease of $57 thousand, compared to the net income fee of $112 thousand for the three months ended June 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 $1.2 million for the three months ended June 30, 2021 compared to $1.3 million for the same period in 2020. The decrease of $100 thousand was primarily due to a decrease in interest recognized due to some notes being paid off in 1Q 2021.

Other income was $162 thousand for the three months ended June 30, 2021 compared to $742 thousand for the three months ended June 30, 2020. The decrease was due to a tax increment reimbursement from City of Farmers Branch received in 2020.

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 June 30,								For the Six Months Ended June 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 $155 and $120 for the six months ended 2021 and 2020, respectively, to related parties)			100				128				288				267
Net income fee to related party			55				112				194				198
Advisory fee to related party			201				191				398				380
Total operating expenses			356				431				880				845
Net operating loss			(356	)			(431	)			(880	)			(845	)
Other income (expenses):
Interest income from related parties			1,231				1,290				2,449				2,769
Other income			162				742				1,179				742
Total other income			1,393				2,032				3,628				3,511
Income before taxes			1,037				1,601				2,748				2,666
Income tax expense			218				336				577				560
Net income		$	819			$	1,265			$	2,171			$	2,106
Earnings per share - basic and diluted
Net income		$	0.20			$	0.30			$	0.52			$	0.51
Weighted 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
		June 30,				December 31,
		2021				2020
		(Unaudited)				(Audited)
		(dollars in thousands, except par value amount)
Assets
Current assets
Cash and cash equivalents		$	2			$	12
Receivable and accrued interest from related parties			94,797				90,526
Total current assets			94,799				90,538
Non current assets
Notes and interest receivable from related parties			11,837				13,930
Total non current assets			11,837				13,930
Total Assets		$	106,636			$	104,468
Liabilities and Shareholders' Equity
Liabilities:
Accounts payable and other liabilities		$	9			$	12
Total liabilities			9				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			44,669				42,498
Total shareholders' equity			106,627				104,456
Total liabilities and shareholders' equity		$	106,636			$	104,468

 

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FAQ

What were the earnings per share for IOR in Q2 2021?

The earnings per share for Income Opportunity Realty Investors (IOR) in Q2 2021 were $0.20.

How did IOR's net income for Q2 2021 compare to Q2 2020?

IOR's net income for Q2 2021 was $819,000, a decrease from $1,352,000 in Q2 2020.

What led to the decrease in IOR's other income in Q2 2021?

The decrease in IOR's other income was primarily due to a tax increment reimbursement received in 2020, which was not repeated in 2021.

What were IOR's general and administrative expenses in Q2 2021?

IOR's general and administrative expenses in Q2 2021 were $100,000, down from $128,000 in Q2 2020.

Did IOR see an increase or decrease in total assets as of June 30, 2021?

As of June 30, 2021, IOR's total assets increased to $106.6 million from $104.5 million.