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 Second Quarter 2008 Results
DALLAS (August 15, 2008) Income Opportunity Realty Investors, Inc. (AMEX: I0T), a Dallas-based real estate investment company, reported net income for the six months ended June 30, 2008. IOT reported net income applicable to common shares of $19.8 million or $4.77 per share for the six months ended June 30, 2008 as compared to net loss applicable to common shares of ($885,000) or ($0.21) per share for the same period ended 2007. During the six months ended June 30, 2008, we recorded a gain on sale of $29.8 million for the sale of six apartment complexes.
In addition, the Company reported net income for the three months ended June 30, 2008. IOT reported a net loss applicable to common shares of ($128,000) or ($0.03) per share for the three months ended June 30, 2008 as compared to a net loss applicable to common shares of ($951.000) or ($0.23) per share for the same period ended 2007.
Results of operations for the six months ended June 30, 2008 as compared to the same period ended 2007;
Rental and other property revenues decreased by $70,000 for the six months ended June 30, 2008 as compared to the same period ended 2007, due to a decrease in occupancy within our commercial portfolio.
Property operations increased by $464,000 for the six months ended June 30, 2008 as compared to the same period ended 2007. The increase is due to an adjustment to reflect actual real estate taxes paid for 2007.
General and administrative expenses increased by $131,000 for the six months ended June 30. 2008 as compared to the same period ended 2007, due to nonrecurring adjustments made during the same period ended 2007.
Advisory fees decreased by $129,000 for the six months ended June 30, 2008 as compared to the same period ended 2007, due to a decrease in our asset base.
Interest income decreased by $681,000 for the six months ended June 30, 2008 as compared to the same period ended 2007, due to no longer recording interest income on our notes receivables from Unified Housing Foundation, an affiliated entity.
Other income increased by $230,000 for the six months ended June 30, 2008 as compared to the same period ended 2007, due to a tax refund received in the second quarter of 2008.
Mortgage and loan interest expense decreased by $132,000 for the six month period ended June 30, 2008 as compared to same period ended 2007, due to the continued pay down on our existing mortgage balances.
Net income fee of $182,000 is due to a recapture of previous fees paid.
Equity in investees was a loss of $(432,000) for the six months ended June 30, 2008 due to losses incurred within our equity investments.
Results of operations for the three months ended June 30, 2008 as compared to the same period ended 2007;
Rental and other property revenues decreased by $59,000 for the three months ended June 30, 2008 as compared to the same period ended 2007, due to a decrease in occupancy within our commercial portfolio.
Property operations expense decreased by $64,000 for the three months ended June 30, 2008 as compared to the same period ended 2007, due a decrease in occupancy within our commercial portfolio.
Advisory fees decreased by $ 145,000 for the three months ended June 30, 2008 as compared to the same period ended 2007, due to a decrease in our asset base.
Interest income decreased by $411,000 for the three months ended June 30, 2008 as compared to the same period ended 2007, due to no longer recording interest income on our notes receivables from Unified Housing Foundation, an affiliated entity.
Other income increased by $230,000 for the three months ended June 30, 2008 as compared to the same period ended 2007, due to a tax refund received in the second quarter of 2008.
Mortgage and loan interest expense decreased by $59,000 for the three months ended June 30, 2008 as compared to the prior period ended 2007, due to the continued pay down on our existing mortgage balances.
Net income fee of $182,000 is due to a recapture of previous fees paid.
Equity in investees was a loss of $(432,000) for the three months ended June 30, 2008, due to losses incurred in within our equity investments.
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 office buildings, apartments and undeveloped land. For more information, go to IOT’s website atwww.incomeopp-realty.com.
Income Opportunity Realty Investors, Inc., a Dallas-based real estate investment company, holds a portfolio of equity real estate in Texas, including office buildings, apartments and undeveloped land. For more information, go to IOT’s website atwww.incomeopp-realty.com.
INCOME OPPORTUNITY REALTY INVESTORS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| June 30 | June 30 | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| (dollars in thousands) | (dollars in thousands) | |||||||||||||||
| Property revenue | ||||||||||||||||
| Rents and other property revenues | $ | 304 | $ | 363 | $ | 629 | $ | 699 | ||||||||
| Operating expenses: | ||||||||||||||||
| Property operations | 125 | 189 | 900 | 436 | ||||||||||||
| Depreciation | 60 | 57 | 123 | 114 | ||||||||||||
| General and administrative | 169 | 168 | 414 | 283 | ||||||||||||
| Advisory fee to affiliate | 222 | 367 | 449 | 578 | ||||||||||||
| Total operating expenses | 576 | 781 | 1,886 | 1,411 | ||||||||||||
| Operating income (loss) | (272 | ) | (418 | ) | (1,257 | ) | (712 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 836 | 1,247 | 1,534 | 2,215 | ||||||||||||
| Other income | 230 | — | 230 | — | ||||||||||||
| Mortgage and loan interest | (981 | ) | (1,040 | ) | (1,863 | ) | (1,995 | ) | ||||||||
| Net income fee | 182 | — | 182 | (5 | ) | |||||||||||
| Total other income | 267 | 207 | 83 | 215 | ||||||||||||
| Income (loss) before gain on land sales, equity in earnings of investees and minority interest | (5 | ) | (211 | ) | (1,174 | ) | (497 | ) | ||||||||
| Minority interests | — | (6 | ) | — | (44 | ) | ||||||||||
| Equity in investees | (432 | ) | (15 | ) | (432 | ) | (15 | ) | ||||||||
| Income tax (benefit) expense | 121 | (184 | ) | 7.505 | (115 | ) | ||||||||||
| Net income (loss) from continuing operations | (316 | ) | (416 | ) | 5,899 | (671 | ) | |||||||||
| Discontinued operations | 309 | (719 | ) | 21,443 | (329 | ) | ||||||||||
| Income lax (benefit) expense | (121 | ) | 184 | (7,505 | ) | 115 | ||||||||||
| Net income (loss) from discontinued operations | 188 | (535 | ) | 13,938 | (214 | ) | ||||||||||
| Net income (loss) applicable to common shares | $ | (128 | ) | $ | (951 | ) | $ | 19,837 | $ | (885 | ) | |||||
| Earnings per share | ||||||||||||||||
| Net income (loss) from continuing operations | (0.08 | ) | (0.10 | ) | 1.42 | (0.16 | ) | |||||||||
| Net income (loss) from discontinued operations | 0.05 | (0 13 | ) | 3.35 | (0.05 | ) | ||||||||||
| Net income (loss) applicable to common shares | $ | (0.03 | ) | $ | (0.23 | ) | $ | 4.77 | $ | (021 | ) | |||||
| Weighted average Common shares used in computing earnings | 4,162,574 | 4,166,525 | 4,162,674 | 4,166,525 | ||||||||||||
INCOME OPPORTUNITY REALTY INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
CONSOLIDATED BALANCE SHEETS
(unaudited)
| June 30, | December 31, | |||||||
| 2008 | 2007 | |||||||
| (dollars in thousands) | ||||||||
Assets | ||||||||
| Real estate held for investment | $ | 39,514 | $ | 43,027 | ||||
| Less accumulated depreciation | (2,373 | ) | (2,456 | ) | ||||
| 37,141 | 40,571 | |||||||
| Real estate held for sale | — | 17,032 | ||||||
| Notes and interest receivable from affiliates | 28,000 | 27,441 | ||||||
| Investment in real estate partnerships | 99 | 532 | ||||||
| Cash and cash equivalents | 392 | 267 | ||||||
| Receivables from affiliates | 42,279 | 27,801 | ||||||
| Other assets | 4,258 | 2,663 | ||||||
| $ | 112,169 | $ | 116,307 | |||||
Liabilities and Shareholders’ Equity | ||||||||
| Liabilities: | ||||||||
| Notes and interest payable | $ | 43,423 | $ | 44,354 | ||||
| Liabilities related to assets held for sale | 975 | 25,152 | ||||||
| Other liabilities | 3,869 | 2,057 | ||||||
| 48,267 | 71,563 | |||||||
| Commitments and contingencies | — | — | ||||||
| Minority interest | — | 677 | ||||||
| Shareholders’ equity: | ||||||||
| Common stock. $.01 par value, authorized 10,000,000 shares; issued and outstanding 4,162,574 and 4,162,774 shares at 2008 and 2007, respectively. | 42 | 42 | ||||||
| Treasury stock | (39 | ) | (37 | ) | ||||
| Paid-in capital | 61,955 | 61,955 | ||||||
| Accumulated earnings (deficit) | 1,944 | (17,893 | ) | |||||
| 63,902 | 44,067 | |||||||
| $ | 112,169 | $ | 116,307 | |||||