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, 2016. IOT announced
today that the Company reported net income applicable to common shares
of $752,000 or $0.18 per diluted earnings per share for the three months
ended September 30, 2016, as compared to net income applicable to common
shares of $680,000 or $0.16 per diluted earnings per share for the same
period ended 2015.
"The Company believes there is no reason to adjust our strategic posture
of maintaining a strong focus on our multi-family portfolio. We will
also continue to solidify the portfolio and pay close attention to all
operational details, while at the same time maintaining our commitment
to creating value. We believe our third quarter 2016 operating results,
combined with our recent acquisitions, demonstrates yet another quarter
of stabilized performance for the Company. We believe the portfolio is
well positioned to deliver solid financial returns for the remainder of
2016," said Danny Moos, the Company's Chief Executive Officer and
President. "We are pleased that we are seeing continued improvements in
our operations from these endeavors and will continue to adapt to market
challenges with an eye on both near term economic challenges and
long-term prospects as the real estate market improves."
Land held subject to sales contract is our sole operating segment. In
November 2015 the Company entered into a sales contract with an
unrelated party. The contract was for all of the developable land owned
by the Company. Due to the continuing involvement of the seller
including the level of seller financing involved, the transaction is
being accounted for under the deposit method. Under the deposit method,
the no revenue is recognized and the asset remains on the books until
the criteria for full revenue recognition are met. There was no revenue
or operating expenses for this segment for the three months ended
September 30, 2016.
IOT has notes receivable of $22.9 million at September 30, 2016.
Interest income was $1.1 million for the three months ended September
30, 2016, a decrease of $42,000 from interest income recognized in the
third quarter of 2015.
The company incurred no mortgage or loan interest for the three months
ended September 30, 2016 as these obligations were paid off in 2015.
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)
Three Months Ended September 30,
Nine Months Ended September 30,
2016
2015
2016
2015
(dollars in thousands, except per share amounts)
Revenues:
Rental and other property revenues
$
-
$
-
$
-
$
-
Expenses:
Property operating expenses (including $0 and $11 for the three
months and $0 and $25 for the nine months ended 2016 and 2015,
respectively, from related parties)
-
56
-
71
General and administrative (including $47 and $45 for the three
months and $90 and $171 for the nine months ended 2016 and 2015,
respectively, from related parties)
114
62
333
359
Net income fee to related party
67
51
193
142
Advisory fee to related party
162
176
475
526
Total operating expenses
343
345
1,001
1,098
Net operating loss
(343
)
(345
)
(1,001
)
(1,098
)
Other income (expense):
Interest income from related parties
1,095
1,137
3,389
3,376
Other income
-
-
-
-
Mortgage and loan interest
-
(112
)
-
(441
)
Total other income
1,095
1,025
3,389
2,935
Income before taxes
752
680
2,388
1,837
Net income
$
752
$
680
$
2,388
$
1,837
Earnings per share - basic
Net income
$
0.18
$
0.16
$
0.57
$
0.44
Net income applicable to common shares
$
0.18
$
0.16
$
0.57
$
0.44
Earnings per share - diluted
Net income
$
0.18
$
0.16
$
0.57
$
0.44
Net income applicable to common shares
$
0.18
$
0.16
$
0.57
$
0.44
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
September 30,
December 31,
2016
2015
(unaudited)
(dollars in thousands, except par value amount)
Assets
Real estate land holdings subject to sales contract, at cost
$
22,717
$
22,717
Total real estate
22,717
22,717
Notes and interest receivable from related parties
24,757
26,708
Less allowance for doubtful accounts
(1,826
)
(1,826
)
Total notes and interest receivable
22,931
24,882
Cash and cash equivalents
1
2
Receivable and accrued interest from related parties
38,786
34,313
Other assets
2,257
2,390
Total assets
$
86,692
$
84,304
Liabilities and Shareholders' Equity
Liabilities:
Accounts payable and other liabilities
$
6
$
6
Total liabilities
6
6
Shareholders' equity:
Common stock, $0.01 par value, authorized 10,000,000; issued
4,173,675 and outstanding 4,168,214 shares in 2016 and 2015
42
42
Treasury stock at cost, 5,461 shares in 2016 and 2015
