EX-99.1 2 d82367exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
NEWS RELEASE
     
FOR IMMEDIATE RELEASE
  Contact:
Income Opportunity Realty Investors, Inc.
Investor Relations
(800) 400-6407
investor.relations@primeasset.com
Income Opportunity Realty Investors, Inc. Reports First Quarter 2011 Results
DALLAS (May 16, 2011) Income Opportunity Realty Investors, Inc. (AMEX:IOT), a Dallas-based real estate investment company, today reported results of operations for the first quarter ended March 31, 2011. IOT announced today that the Company reported a net loss applicable to common shares of $307,000 or $0.07 per diluted earnings per share for the period ended March 31, 2011, as compared to net income applicable to common shares of $163,000 or $0.04 per diluted earnings per share for the same period ended 2010.
Rental and other property revenues were $83,000 for the three months ended March 31, 2011. This represents an increase of $22,000, as compared to the prior period revenues of $61,000, due to an increase in rental income received from the leasing of our storage warehouse.
Property operating expenses were $57,000 for the three months ended March 31, 2011. This represents an increase of $5,000, as compared to the prior period operating expenses of $52,000. There was an increase in the expenses relating to the storage warehouse of $27,000, an increase in miscellaneous corporate expenses of $2,000, offset by a decrease in the Mercer Crossing land portfolio of $24,000. The increase in expenses related to the storage warehouse was due to an adjustment to prior year taxes. The decrease in the land portfolio related to professional fees.
Interest income was $294,000 for the three months ended March 31, 2011. This represents a decrease of $415,000 as compared to the prior period interest income of $709,000. The decrease is due to the receipt of cash on the receivables form Unified Housing Foundation, Inc. in the current period. The notes are excess cash flow notes and interest on the notes is recorded as cash is received. Less cash was received in the current period as compared to the prior period.
Mortgage loan and interest expense was $309,000 for the three months ended March 31, 2011. This represents a decrease of $23,000 as compared to the prior period expense of $332,000. This decrease is due to reduction in the interest rate for a land loan, reducing the interest expense incurred in the current period.
Earnings from unconsolidated subsidiaries and investees relate to IOT’s 10.0% investment in TCI Eton Square, LP. This investment is accounted for under the equity method and recognizes its portion of the current period earnings.
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)
                 
    For the Three Months Ended  
    March 31,  
    2011     2010  
    (dollars in thousands, except  
    share and per share amounts)  
Revenues:
                
 
                
Rental and other property revenues (including $77 and $61 for the three months ended 2011 and 2010 respectively from affiliates and related parties)
   $ 83     $ 61  
 
                
Expenses:
                
Property operating expenses (including $2 and $0 for the three months ended 2011 and 2010 respectively from affiliates and related parties)
     57       52  
General and administrative (including $55 and $9 for the three months ended 2011 and 2010 respectively from affiliates and related parties)
     97       56  
Advisory fee to affiliates
     221       218  
 
            
Total operating expenses
     375       326  
 
            
Operating loss
     (292 )     (265 )
 
                
Other income (expense):
                
Interest income (including $294 and $709 for the three months ended 2011 and 2010 respectively from affiliates and related parties)
     294       709  
Mortgage and loan interest
     (309 )     (332 )
Earnings from unconsolidated subsidiaries and investees
     —       3  
 
            
Total other income (expenses)
     (15 )     380  
 
            
 
                
Income (loss) before gain on land sales, non-controlling interest, and taxes
     (307 )     115  
 
            
Income (loss) from continuing operations before tax
     (307 )     115  
Income tax benefit
     —       48  
 
            
Net income (loss)
     (307 )     163  
 
            
 
                
Earnings per share — basic
                
Income (loss) from continuing operations
   $ (0.07 )   $ 0.04  
 
            
Net income (loss) applicable to common shares
   $ (0.07 )   $ 0.04  
 
            
 
                
Earnings per share — diluted
                
Income (loss) from continuing operations
   $ (0.07 )   $ 0.04  
 
            
Net income (loss) applicable to common shares
   $ (0.07 )   $ 0.04  
 
            
 
                
Weighted average common share used in computing earnings per share
     4,168,214       4,168,214  
Weighted average common share used in computing diluted earnings per share
     4,168,214       4,168,214  
The accompanying notes are an integral part of these financial statements.

 

 

INCOME OPPORTUNITY REALTY INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
                 
    March 31,     December 31,  
    2011     2010  
    (dollars in thousands, except share and  
    par value amounts)  
Assets
                
Real estate land holdings, at cost
   $ 24,511     $ 24,511  
Real estate subject to sales contracts, at cost
     5,050       5,050  
 
            
Total real estate
     29,561       29,561  
 
                
Notes and interest receivable from related parties
     35,820       38,405  
Less allowance for doubtful accounts
     (1,826 )     (1,826 )
 
            
Total notes and interest receivable
     33,994       36,579  
Cash and cash equivalents
     35       20  
Investments in unconsolidated subsidiaries and investees, subject to sales contract
     89       89  
Receivable and accrued interest from related parties
     50,677       48,598  
Other assets
     2,249       2,240  
 
            
Total assets
   $ 116,605     $ 117,087  
 
            
 
                
Liabilities and Shareholders’ Equity
                
Liabilities:
                
 
                
Notes and interest payable
   $ 34,041     $ 34,214  
Notes and interest payable related to subject to sales contracts
     2,393       2,390  
Deferred revenue (from sales to related parties)
     6,550       6,550  
Accounts payable and other liabilities (including $1 in 2011 and $1 in 2010 to affiliated and related parties)
     396       401  
 
            
 
     43,380       43,555  
 
                
Commitments and contingencies:
                
Shareholders’ equity:
                
Common stock, $.01 par value, authorized 10,000,000 shares; issued 4,173,675 shares in 2011 and 2010
     42       42  
Treasury stock at cost, 5,461 in 2011 and 2010
     (39 )     (39 )
Paid-in capital
     61,955       61,955  
Retained earnings
     11,267       11,574  
 
            
Total shareholders’ equity
     73,225       73,532  
 
            
Total liabilities and shareholders’ equity
   $ 116,605     $ 117,087  
 
            
The accompanying notes are an integral part of these financial statements.