Attached files
| file | filename |
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| 8-K - FORM 8-K - INCOME OPPORTUNITY REALTY INVESTORS INC /TX/ | d81192e8vk.htm |
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 2010 Results
Dallas (April 1, 2011) — Income
Opportunity Realty Investors, Inc. (AMEX:IOT), a Dallas-based real
estate investment company, today reported results of operations for the fourth quarter ended
December 31, 2010. The Company reported net income applicable to common shares of $1.84 million or
$0.44 per share, as compared to a net income applicable to common shares of $0.92 million or $0.22
per share for the same period ended 2009.
Net income for the three months ended December 31, 2010 was $1.7 million or $0.41 per share, as
compared
to a net income applicable to common shares of $2.1 million or $0.49 per share for the same period
ended 2009. The company has surplus cash flow notes receivable and interest income is recorded upon the receipt
of cash. In the
fourth quarter, the Company received $2.6 million during the three months ended December 31, 2010
and $3.2
million during the same period ended 2009.
Rental revenues were $313,000 for the twelve months ended December 31, 2010. This represents an
increase of $67,000 as compared to the prior period revenues of $246,000, due to an increase in our
rental income received from the leasing of our storage warehouse.
Property operations expenses were $164,000 for the twelve months ended December 31, 2010. This
represents a decrease of $27,000, as compared to the prior period operating expenses of $l91,000,
due to an overall decrease in costs and additional repairs and maintenance incurred in our storage
warehouse.
There was no depreciation or amortization expense for the twelve months ended December 31, 2010, as
compared to $40,000 in the prior period. In 2009, we divested ourselves of our commercial segment
with the sale of the 2010 Valley View office building and the Parkway Centre retail shopping
center, resulting in land held for development or sale remaining as our sole operating segment.
Our interest income was $4.3 million for the twelve months ended December 31, 2010. This represents
a decrease of $0.4 million in the current year, as compared to interest income of $4.7 million in
the prior period. The decrease is due to fewer payments received on our notes receivables from
Unified Housing Foundation, an affiliated entity. The receivables are 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.
Less surplus cash flow was generated in the current year, as compared to the prior year.
Mortgage loan interest expense was $1.3 million for the twelve months ended December 31, 2010. This
represents a decrease of $0.6 million in the current year, as compared to interest expense of $1.9
million in the prior period. The majority of this decrease is due to the modification a large land
loan, lowering the interest rate and reducing our interest obligations to the lender.
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.
Due to the overall positive income, we had a net income fee expense due to our advisor. This fee is
based on a percentage of total net income.
About Income Opportunity Realty Investors, Inc.
Income Opportunity Realty Investors, Inc., a Dallas-based real estate investment company, holds a
diverse portfolio of equity real estate located across the U.S., including office buildings,
apartments, hotels, shopping centers and developed and undeveloped land. The Company invests in
real estate through direct equity ownership and partnerships nationwide. For more information,
visit the Company’s website at www.incomeopp-realty.com.
INCOME OPPORTUNITY REALTY INVESTORS, INC.
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS
| For the Years Ended December 31, 2010 | ||||||||||||
| 2010 | 2009 | 2008 | ||||||||||
| (dollars in thousands, except share and per share amounts) | ||||||||||||
Revenues: |
||||||||||||
Rental and other property revenues(including $313 and $243
and $282 for the year ended 2010 and 2009 and
2008 respectively from affiliates and related parties) |
$ | 313 | $ | 246 | $ | 310 | ||||||
Expenses: |
||||||||||||
Property operating expenses (including $2 and $5 and $8
for the year ended 2010 and 2009 and 2008
respectively from affiliates and related parties) |
164 | 191 | 381 | |||||||||
Depreciation and amortization |
— | 40 | 60 | |||||||||
General and administrative (including $178 and $117
and $28 for the year ended 2010 and 2009 and
2008 respectively from affiliates and related parties) |
402 | 405 | 599 | |||||||||
Advisory fee to affiliates |
866 | 881 | 895 | |||||||||
Total operating expenses |
1,432 | 1,517 | 1,935 | |||||||||
Operating loss |
(1,119 | ) | (1,271 | ) | (1,625 | ) | ||||||
Other income (expense): |
||||||||||||
Interest income (including $4,292 and $4,661 and
$2,964 for the year ended 2010 and 2009 and 2008
respectively from affiliates and related parties) |
4,292 | 4,661 | 2,993 | |||||||||
Mortgage and loan interest |
(1,281 | ) | (1,883 | ) | (2,043 | ) | ||||||
Gain on involuntary conversion |
— | — | 7,356 | |||||||||
Earnings from unconsolidated subsidiaries and investees |
(3 | ) | 18 | (458 | ) | |||||||
Net income fee to affiliates |
(99 | ) | (115 | ) | (1,011 | ) | ||||||
Total other income |
2,909 | 2,681 | 6,837 | |||||||||
Income before gain on land sales, non-controlling interest, and taxes |
1,790 | 1,410 | 5,212 | |||||||||
Income from continuing operations before tax |
1,790 | 1,410 | 5,212 | |||||||||
Income tax benefit (expense) |
48 | (493 | ) | 7,524 | ||||||||
Net income from continuing operations |
1,838 | 917 | 12,736 | |||||||||
Discontinued operations: |
||||||||||||
Income from discontinued operations |
— | 5 | 21,497 | |||||||||
Income tax expense from discontinued operations |
— | (2 | ) | (7,524 | ) | |||||||
Net income from discontinued operations |
— | 3 | 13,973 | |||||||||
Net income |
1,838 | 920 | 26,709 | |||||||||
Earnings per share — basic |
||||||||||||
Income from continuing operations |
$ | 0.44 | $ | 0.22 | $ | 3.06 | ||||||
Discontinued operations |
— | — | 3.35 | |||||||||
Net income applicable to common shares |
$ | 0.44 | $ | 0.22 | $ | 6.41 | ||||||
Earnings per share — diluted |
||||||||||||
Income from continuing operations |
$ | 0.44 | $ | 0.22 | $ | 3.06 | ||||||
Discontinued operations |
— | — | 3.35 | |||||||||
Net income applicable to conmon shares |
$ | 0.44 | $ | 0.22 | $ | 6.41 | ||||||
Weighted average common share used in computing earnings per share |
4,168,214 | 4,168,214 | 4,168,264 | |||||||||
Weighted average common share used in computing diluted earning per share |
4,168,214 | 4,168,214 | 4,168,264 | |||||||||
INCOME
OPPORTUNITY REALTY INVESTORS, INC.
BALANCE SHEETS
BALANCE SHEETS
| December 31, | December 31, | |||||||
| 2010 | 2009 | |||||||
| (dollars in thousands,
except share and par value amounts) |
||||||||
| Assets | ||||||||
Real estate
land holdings, at cost |
$ | 29,561 | $ | 29,503 | ||||
Total real estate |
29,561 | 29,503 | ||||||
Notes and interest receivable from related parties |
38,405 | 38,818 | ||||||
Less allowance for doubtful
accounts |
(1,826 | ) | (1,826 | ) | ||||
Total notes
and interest receivable |
36,579 | 36,992 | ||||||
Cash and
cash equivalents |
20 | 2 | ||||||
Investments in unconsolidated
subsidiaries and investees |
89 | 92 | ||||||
Receivable
and accrued interest from
related parties |
48,598 | 46,676 | ||||||
Other assets |
2,240 | 2,400 | ||||||
Total assets |
$ | 117,087 | $ | 115,665 | ||||
| Liabilities and
Shareholders’ Equity |
||||||||
Liabilities: |
||||||||
Notes and
interest payable |
$ | 36,604 | $ | 37,080 | ||||
Deferred
revenue (from sales to
related parties) |
6,550 | 6,550 | ||||||
Accounts
payable and
other liabilities (including $1 in
2010 and $2 in 2009
from affiliated and related parties) |
401 | 341 | ||||||
| 43,555 | 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, 5,461 shares in 2010 and 2009 |
(39 | ) | (39 | ) | ||||
Paid-in capital |
61,955 | 61,955 | ||||||
Retained earnings |
11,574 | 9,736 | ||||||
Total
shareholders’ equity |
73,532 | 71,694 | ||||||
Total liabilities and shareholders’ equity |
$ | 117,087 | $ | 115,665 | ||||
Contact:
Income Opportunity Realty Investors, Inc.
Investor Relations, (800) 400-6407
investor.relations@primeasset.com
Income Opportunity Realty Investors, Inc.
Investor Relations, (800) 400-6407
investor.relations@primeasset.com