EX-99.1 2 income991.htm NEWS RELEASE

Exhibit 99.1

NEWS RELEASE   FOR IMMEDIATE RELEASE     Contact: Income Opportunity Realty Investors, Inc. Investor Relations Gene Bertcher (800) 400-6407 investor.relations@incomeopp-realty.com

Income Opportunity Realty Investors, Inc. Reports First Quarter 2019 Results

DALLAS (May 15, 2019) Income Opportunity Realty Investors, Inc. (NYSE American: IOT), a Dallas-based real estate investment company, today reported results of operations for the first quarter ended March 31, 2019. The Company reported net income applicable to common shares for the three months ended March 31, 2019 of $970,000 or $0.23 per share, as compared to net income applicable to common shares of $702,000 or $0.17 per share for the three months ended March 31, 2018.

Our primary business is investing in real estate and financing real estate and real estate related activities through investments in mortgage loans.

Revenues

At March 31, 2019 the Company had no real estate holdings. The principal source of income for the Company is interest income.

Expenses

General and administrative expenses were $133 thousand for the three months ended March 31, 2019. This represents an increase of $10 thousand, compared to general and administrative expenses of $123 thousand for the three months ended March 31, 2018. This increase was primarily driven by an increase in administrative fees of approximately $22 thousand offset by a decrease in legal and regulatory fees of $10 thousand. 

Advisory fees were $181 thousand for the three months ended March 31, 2019 compared to $164 thousand for the same period in 2018 for an increase of $17 thousand. Advisory fees are computed based on a percentage of gross assets

Net income fee to related party was $100 thousand for the three months ended March 31, 2019. This represents an increase of $47 thousand, compared to the net income fee of $53 thousand for the three months ended March 31, 2018. The net income fee paid to our Advisor is calculated as a percentage of net income.

Other income (expense)

Interest income increased to $1.6 million for the three months ended March 31, 2019 compared to $1.0 million for the same period in 2018.  The increase of $600 thousand was primarily due to an increase in the receivable amount owed from our Advisor and other related parties.

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.

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INCOME OPPORTUNITY REALTY INVESTORS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
		For the Three Months Ended March 31,
		2019				2018
		(dollars in thousands, except per share amounts)
Expenses:
General and administrative (including $87 and $64 for the three months ended 2019 and 2018, respectively, to related parties)		$	133			$	123
Net income fee to related party			100				53
Advisory fee to related party			181				164
Total operating expenses			414				340
Net operating loss			(414	)			(340	)
Other income (expenses):
Interest income from related parties			1,642				1,042
Total other income			1,642				1,042
Income before taxes			1,228				702
Income tax expense			258				—
Net income		$	970			$	702
Earnings per share - basic and diluted
Net income		$	0.23			$	0.17
Weighted average common shares used in computing earnings per share			4,168,214				4,168,214
The accompanying notes are an integral part of these consolidated financial statements.

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INCOME OPPORTUNITY REALTY INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS
		March 31,				December 31,
		2019				2018
		(Unaudited)				(Audited)
		(dollars in thousands, except par value amount)
Assets
Notes and interest receivable from related parties		$	13,568			$	14,030
Total notes and interest receivable			13,568				14,030
Cash and cash equivalents			4				4
Receivable and accrued interest from related parties			83,498				82,089
Total assets		$	97,070			$	96,123
Liabilities and Shareholders’ Equity
Liabilities:
Accounts payable and other liabilities		$	3			$	26
Total liabilities			3				26
Shareholders’ equity:
Common stock, $0.01 par value, authorized 10,000,000 shares; issued 4,173,675 and outstanding 4,168,214 shares in 2019 and 2018			42				42
Treasury stock at cost, 5,461 shares in 2019 and 2018			(39	)			(39	)
Paid-in capital			61,955				61,955
Retained earnings			35,109				34,139
Total shareholders' equity			97,067				96,097
Total liabilities and shareholders' equity		$	97,070			$	96,123
The accompanying notes are an integral part of these consolidated financial statements.