Income Opportunity Realty Investors, Inc. Reports Fourth Quarter and Full Year 2020 Results

Income Opportunity Realty Investors, Inc. (NYSE American: IOR), a Dallas-based real estate investment company, today reported results of operations for the fourth quarter ended December 31, 2020. For the three months ended December 31, 2020, we reported a net income applicable to common shares of $1.3 million or $0.32 per share, as compared to net income of $1.1 million or $0.25 per diluted share for the same period ended 2019.

For the full year ended December 31, 2020 the Company reported net income applicable to common shares of $4.2 million or $1.01 per diluted earnings per share for the year ended December 31, 2020, compared to a net income applicable to common shares of $4.1 million or $.99 per diluted earnings per share for the same period ended 2019.

Our primary business is investing in mortgage and note receivables.

Expenses

General and administrative expenses were $450,000 for the year ended December 31, 2020. General and administrative expenses were $494,000 for the year ended December 31, 2019.

Net income fee to related party was $371,000 for the year ended December 31, 2020. This represents an increase of $14,000, compared to the net income fee of $357,000 for the year ended December 31, 2019. The net income fee paid is calculated at the rate of 7.5% of net income.

Advisory fees were $768,000 for the year ended December 31, 2020. This represents an increase of $31,000 compared to advisory fees of $737,000 for the year ended December 31, 2019. Advisory fees are computed based on a gross asset fee of 0.0625% per month (0.75% per annum) of the average of the gross asset value.

Other income (expense)

Interest income was $5.4 million for the year ended December 31, 2020. This represents a decrease of $1.2 million, compared to interest income of $6.6 million for the year ended December 31, 2019. This decrease was primarily due to a decrease in the prime rate.

Other income was $1.5 million for the year ended December 31, 2020. This represents an increase of $1.3 million compared to other income of $237 thousand for the year ended December 31, 2019. This increase was primarily due to collection of a note previously written off.

Income tax expense was $1.1 million for both 2020 and 2019.

About Income Opportunity Realty Investors, Inc.

Income Opportunity Realty Investors, Inc., a Dallas based company that holds both mortgages and notes receivable. For more information, visit the Company’s website at www.incomeopp-realty.com.

INCOME OPPORTUNITY REALTY INVESTORS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

For the Years Ended December 31,

2020

 

2019

 

2018

(dollars in thousands, except per share amounts)

Revenues:

Revenue from operations

$

-

 

$

-

 

$

-

 

Expenses:

General and administrative (including $247, $260, and $284 for the year ended 2020, 2019, and 2018 respectively, to related parties)

 

450

 

 

494

 

 

494

 

Net income fee to related party

 

371

 

 

357

 

 

631

 

Advisory fee to related party

 

768

 

 

737

 

 

685

 

Total operating expenses

 

1,589

 

 

1,588

 

 

1,810

 

Net operating loss

 

(1,589

)

 

(1,588

)

 

(1,810

)

Other income / expenses:

Interest income from related parties

 

5,373

 

 

6,574

 

 

4,880

 

Other Income

 

1,550

 

 

237

 

 

-

 

Total other income

 

6,923

 

 

6,811

 

 

4,880

 

Income before gain on sale of real estate land

 

5,334

 

 

5,223

 

 

3,070

 

Gain on sale of real estate land

 

-

 

 

-

 

 

7,323

 

Income before taxes

 

5,334

 

 

5,223

 

 

10,393

 

Income tax expense - current

 

1,120

 

 

1,078

 

 

1,391

 

Income tax expense - deferred

 

-

 

 

-

 

 

792

 

Net income

$

4,214

 

$

4,145

 

$

8,210

 

Earnings per share - basic and diluted

Net income

$

1.01

 

$

0.99

 

$

1.97

 

 


Weighted average common shares used in computing earnings per share

 

4,168,414

 

 

4,168,414

 

 

4,168,214

 

INCOME OPPORTUNITY REALTY INVESTORS, INC.

CONSOLIDATED BALANCE SHEETS

December 31,

December 31,

2020

2019

(dollars in thousands, except par value amount)

Assets

 


Current assets






Cash and cash equivalents

 

12

 

 

5

 

Receivable and accrued interest from related parties

 

90,526

 

 

86,221

 

Total current assets

 

90,538

 

 

86,226

 

 


Non current assets






Notes and interest receivable from related parties

 

13,930

 

 

14,030

 

Total non current assets

 

13,930

 

 

14,030

 

 


Other assets

 

-

 

 

-

 

Total Assets

$

104,468

 

$

100,256

 

Liabilities and Shareholders' Equity

Liabilities






Accounts payable

$

12

 

$

14

 

Total liabilities

 

12

 

 

14

 

Shareholders’ equity






Common stock, $.01 par value, authorized 10,000,000 shares; issued 4,173,675 and outstanding 4,168,414 shares in 2020 and 2019

 

42

 

 

42

 

Treasury stock at cost, 5,261 shares in 2020 and 2019

 

(39

)

 

(39

)

Paid-in capital

 

61,955

 

 

61,955

 

Retained Earnings

 

42,498

 

 

38,284

 

Total shareholders' equity

 

104,456

 

 

100,242

 

Total liabilities and shareholders' equity

$

104,468

 

$

100,256

 

 

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Income Opportunity Realty Investors, Inc. Investor Relations Gene Bertcher [phone] [e-mail]