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

Rhea-AI Summary

Income Opportunity Realty Investors, Inc. (IOR) reported a net income of $712,000 for Q3 2021, translating to $0.17 per diluted share, a slight decrease from $761,000 or $0.18 per share in Q3 2020. General and administrative expenses fell to $88,000, down $6,000 from the previous year, primarily due to reduced cost reimbursements. Advisory fees rose to $201,000, up from $194,000 year-over-year. Interest income decreased to $1,248,000, attributed to early note payoffs. As of September 30, 2021, total assets increased to $107.35 million from $104.47 million a year prior.

Positive

• General and administrative expenses decreased by $6,000, indicating cost control.
• Total assets increased to $107.35 million from $104.47 million, showing growth.

Negative

• Net income decreased from $761,000 in Q3 2020 to $712,000 in Q3 2021.
• Interest income fell by $54,000 due to some notes being paid off.

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

 

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Income Opportunity Realty Investors, Inc.

Investor Relations

Gene Bertcher, (800) 400-6407

Investor.relations@incomeopp-realty.com

Source: Income Opportunity Realty Investors, Inc.

FAQ

What were the Q3 2021 net income results for IOR?

Income Opportunity Realty Investors, Inc. reported a net income of $712,000 for Q3 2021.

How did IOR's general and administrative expenses change in Q3 2021?

General and administrative expenses decreased to $88,000 in Q3 2021 from $94,000 in Q3 2020.

What was the earnings per share for IOR in Q3 2021?

Earnings per diluted share for IOR in Q3 2021 were $0.17.

How did advisory fees change from Q3 2020 to Q3 2021 for IOR?

Advisory fees increased from $194,000 in Q3 2020 to $201,000 in Q3 2021.

What was the interest income for IOR in Q3 2021?

Interest income for IOR in Q3 2021 was $1,248,000.