EX-99.1 2 d67816exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
     
NEWS RELEASE
    
 
  Contact:
FOR IMMEDIATE RELEASE
  Income Opportunity Realty Investors, Inc.
 
  Investor Relations
 
  (800) 400-6407
 
  investor.relations@primeasset.com
Income Opportunity Realty Investors, Inc. Reports First Quarter 2009 Results
DALLAS (May 15, 2009) 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, 2009. IOT announced today that the company reported a net loss applicable to common shares of ($0.4 million) or ($0.09) per diluted earnings per share, as compared to a net income of $20.0 million or $4.79 per diluted earnings per share which includes $29.4 million gain on sale from discontinued operations for the same period ended 2008.
Results of operations for the three months ended March 31, 2009 as compared to the same period ended 2008.
Rental and other property revenues increased slightly due to an increase within our commercial property portfolio. Our commercial portfolio experienced an increase in occupancy as compared to prior year.
Property operating expenses decreased by $0.6 million as compared to the same period ended 2008. The decrease is due to property tax adjustments made in 2008 that were not applicable in 2009.
Interest income decreased by $0.3 million as compared to the same period ended 2008. The decrease is due the receipt of cash on the receivables from Unified Housing Foundation, Inc. in the prior period.
Mortgage loan and interest expense decreased by $0.2 million as compared to prior year. The decrease is due to the continued pay down on the mortgage balance and thus effectively reducing the interest expense.
Discontinued operations relate to seven apartment complexes sold in 2008. No apartment complexes were sold or held for sale during the first quarter ended March 31, 2009.
Income Opportunity Realty Investors, Inc., a Dallas-based real estate investment company, holds a portfolio of equity real estate in Texas, including office buildings, and undeveloped land. For more information, go to IOT’s website at www.incomeopp-realty.com.

 

 

INCOME OPPORTUNITY REALTY INVESTORS, INC
STATEMENTS OF OPERATIONS
(unaudited)
                 
    For the Three Months Ended  
    March 31,  
    2009     2008  
    (dollars in thousands, except share  
    and per share amounts)  
Revenues:
                
Rental and other property revenues
   $ 387     $ 324  
 
                
Expenses:
                
Property operating expenses
     205       775  
Depreciation and amortization
     60       63  
General and administrative
     49       246  
Advisory fee to affiliate
     225       227  
 
            
Total operating expenses
     539       1,311  
 
            
Operating loss
     (152 )     (987 )
 
                
Other income (expense):
                
Interest income
     434       699  
Other income (expense)
     (5 )     —  
Mortgage and loan interest
     (727 )     (882 )
 
            
Total other expenses
     (298 )     (183 )
 
            
 
                
Loss before gain on land sales, non-controlling interest, and taxes
     (450 )     (1,170 )
 
            
Loss from continuing operations before tax
     (450 )     (1,170 )
Income tax benefit
     82       7,397  
 
            
Net income (loss) from continuing operations
     (368 )     6,227  
 
                
Discontinued operations:
                
Loss from discontinued operations
     —       (8,232 )
Gain on sale of real estate from discontinued operations
     —       29,367  
Income tax benefit (expense) from discontinued operations
     —       (7,397 )
 
            
Net income (loss)
     (368 )     19,965  
Preferred dividend requirement
     —       —  
 
            
Net income (loss) applicable to common shares
   $ (368 )   $ 19,965  
 
            
 
                
Earnings per share — basic
                
Income (loss) from continuing operations
   $ (0.09 )   $ 1.49  
Discontinued operations
     —       3.30  
 
            
Net income (loss) applicable to common shares
   $ (0.09 )   $ 4.79  
 
            
 
                
Earnings per share — diluted
                
Income (loss) from continuing operations
   $ (0.09 )   $ 1.49  
Discontinued operations
     —       3.30  
 
            
Net income (loss) applicable to common shares
   $ (0.09 )   $ 4.79  
 
            
 
                
Weighted average common share used in computing earnings per share
     4,168,214       4,162,774  
Weighted average common share used in computing diluted earnings per share
     4,168,214       4,162,774  

 

INCOME OPPORTUNITY REALTY INVESTORS, INC.
BALANCE SHEETS
(unaudited)
                 
    March 31,     December 31,  
    2009     2008  
    (dollars in thousands, except share and  
    par value amounts)  
Assets
Real estate, at cost
   $ 39,255     $ 39,255  
Less accumulated depreciation
     (2,372 )     (2,313 )
 
            
Total real estate
     36,883       36,942  
 
                
Notes and interest receivable
     39,566       41,432  
Less allowance for doubtful accounts
     (1,826 )     (1,826 )
 
            
Total notes and interest receivable
     37,740       39,606  
Cash and cash equivalents
     2       52  
Investments in unconsolidated subsidiaries and investees
     74       74  
Affiliate receivable
     35,523       38,203  
Other assets
     3,182       676  
 
            
Total assets
   $ 113,404     $ 115,553  
 
            
Liabilities and Shareholders’ Equity
Liabilities:
                
Notes and interest payable
   $ 42,251     $ 42,319  
Accounts payable and other liabilities
     747       2,460  
 
            
 
     42,998       44,779  
Commitments and contingencies:
                
Shareholders’ equity:
                
Common Stock, $.01 par value, authorized 10,000,000 shares; issued 4,173,675 and 4,168,214 outstanding shares in 2009 and 2008
     42       42  
Treasury stock at cost
     (39 )     (39 )
Paid-in capital
     61,955       61,955  
Retained earnings
     8,448       8,816  
 
            
Total shareholders’ equity
     70,406       70,774  
 
            
Total liabilities and equity
   $ 113,404     $ 115,553