EX-99.1 2 d72028exv99w1.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 Fourth Quarter and Full Year 2009 Financial Results
DALLAS (April 1, 2010) Income Opportunity Realty Investors, Inc. (AMEX:IOT), a Dallas-based real estate investment company, today reported results of operations for the year ended December 31, 2009. IOT announced today that the company reported net income applicable to common shares of $920,000 or $0.22 per share for the year ended December 31, 2009, as compared to a net income applicable to common shares of $26.7 million or $6.41 per share for the same period ended 2008. Net income for the last three months ended December 31, 2009 was $2.1 million or $0.49 per share, as compared to prior year net income applicable to common shares of $479,000 or $0.12 per share.
Results of the year ended December 31, 2009 to the year ended December 31, 2008
In 2009, IOT sold two commercial properties and in 2008, sold seven apartment complexes. These sales have liquidated IOT’s ownership of income-producing properties, resulting in land available for development or sale remaining as IOT’s sole operating segment.
The Company’s primary source of revenue is from the interest payments received on notes receivable. Interest income was $4.7 million for the twelve months ended December 31, 2009. Interest income for 2009, in comparison to the same period in 2008, has increased by $1.7 million. The increase is due to payments received on our notes receivable from Unified Housing Foundation, Inc., an affiliated entity. The receivables are from surplus cash flow notes. The entity is required to pay on the notes when they generate surplus cash flow, thus interest income is recorded when received.
Mortgage and loan interest expense was $1.9 million for the twelve months ended December 31, 2009. The mortgage and loan interest expense for 2009, in comparison to the same period in 2008, has decreased by $0.2 million due to a reduction of loan fees and interest expense.
Earnings from unconsolidated subsidiaries and investees were $18,000 for the twelve months ended December 31, 2009. Earnings from unconsolidated subsidiaries and investees in 2009, as compared to the same period in 2008, increased by $0.5 million due to the current earnings recorded on our investment in TCI Eton Square, LP and the prior year write off of the investment in Nakash Investment Associates.
There was no recorded income from involuntary conversion for the twelve months ended December 31, 2009. Income from involuntary conversion, in the prior year, was $7.4 million due to insurance proceeds received relating to the tornado damage incurred on the Falcon Point apartments.
Income from discontinued operations was $3,000 for the year ended 2009, as compared to $14.0 million for the same period ended 2008. Included in income from discontinued operations were two and nine properties for the years ended 2009 and 2008, respectively.
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.
BALANCE SHEETS
                 
    December 31,     December 31  
    2009     2008  
    (dollars in thousands, except share and  
    par value amounts)  
Assets
                
Real estate, at cost
   $ 29,503     $ 39,255  
Less accumulated depreciation
     —       (2,313 )
 
            
Total real estate
     29,503       36,942  
Notes and interest receivable from related parties
     38,818       39,841  
Less allowance for doubtful accounts
     (1,826 )     (1.826 )
 
            
Total notes and interest receivable
     36,992     380
Cash and cash equivalents
     2       52  
Investments in unconsolidated subsidiaries and investees
     92       74  
Receivable and accrued interest from related parties
     46,676       38,203  
Other assets
     2,400       676  
 
            
Total assets
   $ 115,665     $ 113,962  
 
            
Liabilities and Shareholders’ Equity
                
Liabilities:
                
Notes and interest payable
   $ 37,080     $ 42,319  
Liabilities related to assets held for sale
     —       —  
Accounts payable and other liabilities
     6,891       869  
 
            
 
     43,971       43,188  
Commitments and contingencies:
                
Shareholders’ equity:
                
Common Stock, $.01 par value, authorized 10,000,000 shares; issued 4,173,675 shares in 2009 and 2008
     42       42  
Treasury Stock at cost
     (39 )     (39 )
Paid-in capital
     61,955       61,955  
Retained earnings
     9,736       8,816  
 
            
Total shareholders’ equity
     71,694       70,774  
 
            
Total liabilities and shareholders’ equity
   $ 115,665     $ 113,962  
 
            

 

 

INCOME OPPORTUNITY REALTY INVESTORS, INC
STATEMENTS OF OPERATIONS
                 
    For the Years Ended December 31,  
    2009     2008  
    (dollars in thousands, except share and  
    per share amounts)  
Revenues:
                
Rental and other property revenues
   $ 246     $ 310  
Expenses:
                
Property operating expenses
     191       381  
Depreciation and amortization
     40       60  
General and administrative
     405       599  
Advisory fee to affiliates
     881       895  
 
            
Total operating expenses
     1,517       1,935  
 
            
Operating loss
     (1,271 )     (1,625 )
Other income (expense):
                
Interest income
     4,661       2,993  
Mortgage and loan interest
     (1,883 )     (2,043 )
Gain on involuntary conversion
     —       7,356  
Earnings from unconsolidated subsidiaries and investees
     18       (458 )
Net income fee to affiliates
     (115 )     (1,011 )
 
            
Total other income (expenses)
     2,681       6,837  
 
            
Income (loss) before gain on land sales, non-controlling interest, and taxes
     1,410       5,212  
 
            
Income (loss) from continuing operations before tax
     1,410       5,212  
Income tax benefit (expense)
     (493 )     7,524  
 
            
Net income (loss) from continuing operations
     917       12,736  
 
            
Discontinued operations:
                
Income (loss) from discontinued operations
     5       21,497  
Income tax benefit (expense) from discontinued operations
     (2 )     (7,524 )
 
            
Net income (loss)
     920       26,709  
Net income (loss) attributable to non-controlling interests
     —        —   
 
            
Net income (loss) attributable to common shares
     920       26,709  
Earnings per share — basic
                
Income (loss) from continuing operations
   $ 0.22     $ 3.06  
Discontinued operations
     —       3.35  
 
            
Net income (loss) applicable to common shares
  $ 0.22     $ 6.41  
 
            
Earnings per share — diluted
                
Income (loss) from continuing operations
   $ 0.22     $ 3.06  
Discontinued operations
     —       3.35  
 
            
Net income (loss) applicable to common shares
   $ 0.22     $ 6.41  
 
            
Weighted average common share used in computing earnings per share
     4,168,214       4,168,264  
Weighted average common share used in computing diluted earnings per share
     4,168.214       4,168,264