Attached files
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| 8-K - FORM 8-K - INCOME OPPORTUNITY REALTY INVESTORS INC /TX/ | d75658e8vk.htm |
Exhibit 99.1
NEWS RELEASE |
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FOR IMMEDIATE RELEASE
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Contact: Income Opportunity Realty Investors, Inc. Investor Relations (800) 400-6407 investor.relations@primeasset.com |
Income Opportunity Realty Investors, Inc. Reports Second Quarter 2010 Results
DALLAS (August 16, 2010) Income Opportunity Realty Investors, Inc. (AMEX:IOT), a Dallas-based
real estate investment company, today reported results of operations for the second quarter ended
June 30, 2010. IOT announced today that the Company reported a net income applicable to common
shares of $144,000 or $0.03 per share for the period ended June 30, 2010, as compared to a net
loss applicable to common shares of ($754,000) or ($0.18) per share for the same period ended
2009.
Rental and other property revenues were $126,000 for the six months ended June 30, 2010. This
represents a decrease of $13,000, as compared to the prior period revenues of $139,000, due to a
decrease in our rental income received from the leasing of our storage warehouse.
Property operating expenses were $87,000 for the six months ended June 30, 2010. This represents a
decrease of $9,000, as compared to the prior period operating expenses of $96,000 due to a
decrease in overall operating expenses.
General and administrative expenses were $179,000 for the six months ended June 30, 2010. This
represents an increase of $31,000, as compared to the prior period expenses of $148,000. This
increase was due to an accrual of $33,000 for accounting fees without a similar accrual in the
prior period, an increase in legal and professional fees of $9,000, offset by $11,000 decreases in
various corporate related expenses.
Interest income was $1.3 million for the six months ended June 30, 2010. This represents an
increase of $579,000 as compared to the prior period interest income of $751,000. The increase is
due to the receipt of cash on the receivables from Unified Housing Foundation, Inc. in the current
period. The notes are excess cash flow notes and interest on the notes is recorded as cash is
received. More cash was received in the current period as compared to the prior period.
Mortgage loan and interest expense was $663,000 for the six months ended June 30, 2010. This
represents a decrease of $437,000 as compared to the prior period expense of $1.1 million. The
decrease is due to the modification of a current mortgage resulting in a lower interest rate.
Earnings from unconsolidated subsidiaries and investees relate to IOT’s 10.0% investment in TCI
Eton Square, LP. This investment is accounted for under the equity method and recognizes its
portion of the current period earnings.
Discontinued operations consist of an office building and a shopping center that were sold in
2009. As of June 30, 2010, there were no properties held for sale, sold during the six months
ended June 30, 2010 or sold subsequent to that date.
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.
INCOME OPPORTUNITY REALTY INVESTORS, INC.
STATEMENTS OF OPERATIONS
(unaudited)
STATEMENTS OF OPERATIONS
(unaudited)
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| (dollars in thousands, except share and per share amounts) | ||||||||||||||||
Revenues: |
||||||||||||||||
Rental and other property revenues |
$ | 65 | $ | 70 | $ | 126 | $ | 139 | ||||||||
Expenses: |
||||||||||||||||
Property operating expenses |
35 | 54 | 87 | 96 | ||||||||||||
Depreciation and amortization |
— | 13 | — | 26 | ||||||||||||
General and administrative |
123 | 186 | 179 | 148 | ||||||||||||
Advisory fee to affiliates |
216 | 222 | 434 | 447 | ||||||||||||
Total operating expenses |
374 | 475 | 700 | 717 | ||||||||||||
Operating loss |
(309 | ) | (405 | ) | (574 | ) | (578 | ) | ||||||||
Other income (expense): |
||||||||||||||||
Interest income |
621 | 317 | 1,330 | 751 | ||||||||||||
Mortgage and loan interest |
(330 | ) | (465 | ) | (663 | ) | (1,101 | ) | ||||||||
Earnings from unconsolidated subsidiaries and investees |
— | — | 3 | — | ||||||||||||
Total other income (expenses) |
291 | (148 | ) | 670 | (350 | ) | ||||||||||
Income (loss) before gain on land sales, non-controlling
interest, and taxes |
(18 | ) | (553 | ) | 96 | (928 | ) | |||||||||
Income
(loss) from continuing operations before tax |
(18 | ) | (553 | ) | 96 | (928 | ) | |||||||||
Income tax benefit |
— | 59 | 48 | 61 | ||||||||||||
Net income (loss) from continuing operations |
(18 | ) | (494 | ) | 144 | (867 | ) | |||||||||
Discontinued operations |
||||||||||||||||
Income from discontinued operations |
— | 167 | — | 174 | ||||||||||||
Income tax expense from discontinued operations |
— | (59 | ) | — | (61 | ) | ||||||||||
Net income from discontinued operations |
— | 108 | — | 113 | ||||||||||||
Net income (loss) |
(18 | ) | (386 | ) | 144 | (754 | ) | |||||||||
Earnings per share — basic |
||||||||||||||||
Income (loss) from continuing operations |
$ | — | $ | (0.12 | ) | $ | 0.03 | $ | (0.21 | ) | ||||||
Discontinued operations |
— | 0.03 | — | 0.03 | ||||||||||||
Net income (loss) applicable to common shares |
$ | — | $ | (0.09 | ) | $ | 0.03 | $ | (0.18 | ) | ||||||
Earnings per share — diluted |
||||||||||||||||
Income (loss) from continuing operations |
$ | — | $ | (0.12 | ) | $ | 0.03 | $ | (0.21 | ) | ||||||
Discontinued operations |
— | 0.03 | — | 0.03 | ||||||||||||
Net income (loss) applicable to common shares |
$ | — | $ | (0.09 | ) | $ | 0.03 | $ | (0.18 | ) | ||||||
Weighted average common share used in computing earnings per share |
4,168,214 | 4,168,214 | 4,168,214 | 4,168,214 | ||||||||||||
Weighted average common share used in computing diluted earnings per
share |
4,168,214 | 4,168,214 | 4,168,214 | 4,168,214 | ||||||||||||
INCOME OPPORTUNITY REALTY INVESTORS, INC.
BALANCE SHEETS
(unaudited)
BALANCE SHEETS
(unaudited)
| June 30, | December 31, | |||||||
| 2010 | 2009 | |||||||
| (dollars in thousands, except share and | ||||||||
| par value amounts) | ||||||||
Assets |
||||||||
Real estate land holdings, at cost |
$ | 29,503 | $ | 29,503 | ||||
Total real estate |
29,503 | 29,503 | ||||||
Notes and interest receivable from related parties |
36,446 | 38,818 | ||||||
Less allowance for doubtful accounts |
(1,826 | ) | (1,826 | ) | ||||
Total notes and interest receivable |
34,620 | 36,992 | ||||||
Cash and cash equivalents |
3 | 2 | ||||||
Investments in unconsolidated subsidiaries and investees |
95 | 92 | ||||||
Receivable and accrued interest from related parties |
48,904 | 46,676 | ||||||
Other assets |
2,535 | 2,400 | ||||||
Total assets |
$ | 115,660 | $ | 115,665 | ||||
Liabilities and Shareholders’ Equity |
||||||||
Liabilities: |
||||||||
Notes and interest payable |
$ | 36,940 | $ | 37,080 | ||||
Deferred revenue (from sales to related parties) |
6,550 | 6,550 | ||||||
Accounts payable and other liabilities |
332 | 341 | ||||||
| 43,822 | 43,971 | |||||||
Commitments and contingencies |
||||||||
Shareholders’ equity: |
||||||||
Common
stock, $.01 par value, authorized 10,000,000 shares, issued 4,173,675
shares in 2010 and 2009 |
42 | 42 | ||||||
Treasury stock at cost |
(39 | ) | (39 | ) | ||||
Paid-in capital |
61,955 | 61,955 | ||||||
Retained earnings |
9,880 | 9,736 | ||||||
Total shareholders’ equity |
71,838 | 71,694 | ||||||
Total liabilities and shareholders’ equity |
$ | 115,660 | $ | 115,665 | ||||