EX-99.1 2 ex99_1.htm EXHIBIT 99.1 Exhibit 99.1

EXHIBIT 99.1
NEWS RELEASE
 
FOR IMMEDIATE RELEASE
Contact:
Income Opportunity Realty Investors, Inc.
Investors Relations
(800) 400-6407
investor.relations@primeasset.com

Income Opportunity Realty Investors, Inc. Reports 2006 First Quarter Results

DALLAS (May 15, 2006) - Income Opportunity Realty Investors, Inc. (AMEX: IOT), a Dallas-based real estate investment company, today reported net income of $594,000 or $0.14 per share for the three months ended March 31, 2006, compared to $293,000 and $0.07 per share for the same period in 2005.
 
Key items for the three months ended March 31, 2006, compared to the same period in 2005 included:

·  
Rents were $1.7 million in 2006 and $1.5 million in 2005. The increase is due to a combination of increased occupancy and rental increases.

·  
Operating expenses were $804,000 in 2006 and $821,000 in 2005.
 
·  
Interest income was $1.2 million in 2006 and $1 million in 2005. The increase is due to additional interest earned from additional notes receivable.

·  
Interest expense was $896,000 million in 2006 and $871,000 in 2005. The increase was primarily due to the additional debt incurred during 2005.

·  
Depreciation expense was $170,000 in 2006 and $177,000 in 2005. The decrease was due to the sale of properties in 2005 as well as fully depreciated tenant improvements in 2005.

·  
The advisory fee to affiliate was $174,000 in 2006 and $166,000 in 2005 due, primarily, to a net increase in gross assets, which is the basis of the advisory fee. The net income fee was $50,000 in 2006 as compared to $24,000 in 2005 and is based on 7½% of the Company’s net income.

·  
General and administrative expense was $150,000 in 2006 and $142,000 in 2005.

Income Opportunity Realty Investors, Inc., a Dallas-based real estate investment company, holds a diverse portfolio of real estate properties located in Texas, including office buildings, apartments, and undeveloped land. For more information, go to IORI’s website at www.incomeopp-realty.com.

 
 
 

INCOME OPPORTUNITY REALTY INVESTORS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
 



   
For the Three Months
Ended March 31,
  
   
2006
  
2005
  
   
(unaudited)
      
   
(amounts in thousands,
except per share)
  
Property revenue
          
Rents and other property revenues
  
$
1,697
  
$
1,529
  
               
Operating expenses
              
Property operations
    
804
    
821
  
Depreciation
    
170
    
177
  
General and administrative
    
150
    
142
  
Advisory fee
    
174
    
166
  
Total operating expenses
    
1,298
    
1,306
  
               
Operating income
    
399
    
223
  
               
Other income (expense):
              
Interest income
    
1,154
    
974
  
Mortgage and loan interest
    
(896
)
  
(871
)
Net income fee
    
(50
)
  
(24
)
Total other income (expense)
    
208
    
79
  
               
Income before equity in earnings of investees and minority interests
    
607
    
302
  
               
Equity in earnings (loss) of investees
    
—
    
(9
)
Minority interest
    
(13
)
  
—
  
               
Net income
  
$
594
  
$
293
  
 
              
Earnings per share:
              
Net earnings from continuing operations
  
$
0.14
  
$
0.07
  
               
Weighted average common shares used in computing earnings per share
   
4,168,035
    
4,168,035
  


Earnings per share reflect a 3-for-1 forward split of the stock in the form of a 200% stock dividend declared in May 2005.

 
 
 

INCOME OPPORTUNITY REALTY INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS
 
(unaudited)


   
March 31,
2006
  
December 31,
2005
  
   
(dollars in thousands)
  
Assets
      
Real estate held for investment
  
$
38,870
  
$
35,083
  
Less—accumulated depreciation
    
(4,481
)
  
(4,311
)
     
34,389
    
30,772
  
               
Related party receivable (including accrued interest of $2,763 and $2,390 in 2006 and 2005, respectively)
    
63,603
    
63,230
  
Investment in real estate partnerships
    
547
    
547
  
Cash and cash equivalents
    
167
    
201
  
Due from affiliates
    
160
    
1,853
  
Other assets
    
3,404
    
2,738
  
   
$
102,270
  
$
99,341
  
               
Liabilities and Stockholders’ Equity
              
               
Liabilities:
              
Notes payable (including accrued interest of $172 in 2006 and $229 in 2005)
  
$
53,954
  
$
52,817
  
Due to affiliates
    
1,538
    
—
  
Other liabilities
    
991
    
1,344
  
     
56,483
    
54,161
  
               
Commitments and contingencies
              
               
Minority interest
    
526
    
513
  
               
Stockholders’ equity:
              
Common Stock, $.01 par value; authorized, 100,000,000 shares; issued and outstanding 4,168,035 at March 31, 2006 and December 31, 2005
    
42
    
42
  
Additional paid-in capital
    
61,955
    
61,955
  
Accumulated deficit
    
(16,736
)
  
(17,330
)
     
45,261
    
44,667
  
               
   
$
102,270
  
$
99,341