Exhibit 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE
Contact:
Income Opportunity Realty Investors, Inc.
Investors Relations
(800) 400-6407
investor.relations@incomeopp-realty.com
INCOME OPPORTUNITY REALTY INVESTORS, INC. REPORTS THIRD QUARTER 2007 RESULTS
DALLAS (November 14, 2007) — Income Opportunity Realty Investors, Inc. (AMEX: IOT), a Dallas-based real estate investment company, today reported a net income (loss) of $180,000 and ($705,000) for the three and nine months ended September 30, 2007 as compared to a net income (loss) of ($229,000) and $430,000 for the corresponding periods in 2006.
• Rental income for the three and nine months ended September 30, 2007 was $2.2 million and $6.5 million, respectively, compared to $2.0 million and $5.6 million in the corresponding periods in 2006. The increase of $186,000 and $815,000 for the three and nine month period, respectively is primarily due to revenue from the Falcon Point Apartments, which was acquired in March 2006, as well as an overall increase in rents at the company’s other residential properties.
• Property operating expense for the three and nine months ended September 30, 2007 was $ 1.2 million and $3.4 million, respectively as compared to $1.2 million and $3.0 million for the corresponding periods in 2006. The $396,000 increase for the nine month period is primarily due to operating expenses from the Falcon Point Apartments.
• Interest income for the three and nine months ended September 30, 2007 was $1.3 million and $3.5 million, respectively, compared to $707,000 and $2.9 million for the corresponding periods in 2006. The increase of $572,000 and $601,000 for the three and nine month period, respectively was due almost entirely to the interest earned on monies advanced to the Company’s external advisor.
• Interest expense for the three and nine months ended September 30, 2007 was $1.5 million and $5.4 million, respectively, compared to $1.3 million and $3.3 million for the corresponding periods in 2006. The increase of $282,000 and $2.1 million for the three and nine month period, respectively was primarily due to additional debt incurred by IORI during 2006 and 2007 due to new loans, refinancings and the acquisition of the Falcon Point Apartments. The increase was also due to increased interest rates for IORI’s variable interest rate debt. The overall increase in interest expense was partially offset by the elimination of interest expense on the debt to Transcontinental Realty Investors, Inc. (“TCI”), which was cancelled when One Hickory Center (an office building located in Dallas, Texas) was transferred to TCI in May 12, 2006.
• Advisory fees for the three and nine months ended September 30, 2007 were $227,000 and $805,000, respectively, compared to $261,000 and $886,000 for the corresponding periods in 2006. The decrease of $34,000 and $81,000 for the three and nine month period, respectively was due to a decrease in fees for refinancing certain mortgage obligations, offset by an increase in the asset-based advisory fee.
About Income Opportunity Realty Investors, Inc.
Income Opportunity Realty Investors, Inc. (“IORI”), a Dallas-based real estate investment company, holds a diverse portfolio of real estate properties located primarily in Texas, including office buildings, apartments, and undeveloped land. For more information, go to IORI’s website at www.incomeopp-realty.com.
