Income Opportunity Realty Investors, Inc. Reports Fourth Quarter and Full Year 2020 Results
DALLAS–(BUSINESS WIRE)–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 |
|
Contacts
Income Opportunity Realty Investors, Inc.
Investor Relations
Gene Bertcher (800) 400-6407
[email protected]