Income Opportunity Realty Investors (IOR) 8-K Income Opportunity Realty Investors, Inc. Reports Third Quarter 2017 Results

NEWS RELEASE   FOR IMMEDIATE RELEASE       Contact: Income Opportunity Realty Investors, Inc. Investor Relations Gene Bertcher (800) 400-6407 investor.relations@incomeopp-realty.com  

Income Opportunity Realty Investors, Inc. Reports Third Quarter 2017 Results

DALLAS (November 14, 2017) Income Opportunity Realty Investors, Inc. (NYSE American: IOR), a Dallas-based real estate investment company, reported results of operations for the third quarter ended September 30, 2017. IOR announced today that the Company reported net income applicable to common shares of $0.6 million or $0.15 per diluted earnings per share for the three months ended September 30, 2017, as compared to net income applicable to common shares of $0.8 million or $0.18 per diluted earnings per share for the same period ended 2016.

In June 2017, the Company changed its trading symbol from (“IOT”) to (“IOR”).

Revenues

Land held subject to a sales contract is our sole operating segment. There was no income generated from this segment for the three months ended September 30, 2017 and 2016.

Expenses

General and administrative expenses were $93,000 for the three months ended September 30, 2017. This represents a decrease of $21,000 compared to the prior period general and administrative expenses of $114,000.

Net income fee to related party decreased $14,000 to $53,000 for the three months ended September 30, 2017 compared to the prior period. The net income fee paid to our Advisor is calculated at 7.5% of net income.

Other income (expense)

Interest income decreased to $0.9 million for the three months ended September 30, 2017 compared to $1.1 million for the same period of 2016. The decrease of $0.2 million was due primarily tothe payoff, during 2017, of notes receivable related to three income-producing properties sold in a prior year.

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 atwww.incomeopp-realty.com.

INCOME OPPORTUNITY REALTY INVESTORS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
		(dollars in thousands, except per share amounts)
Revenues:
Rental and other property revenues	$	—		$	—		$	—		$	—
Expenses:
General and administrative (including $63 and $47 for the three months and $174 and $127 for the nine months ended 2017 and 2016, respectively, from related parties)		93			114			342			333
Net income fee to related party		53			67			189			193
Advisory fee to related party		166			162			493			475
Total operating expenses		312			343			1,024			1,001
Net operating loss		(312	)		(343	)		(1,024	)		(1,001	)
Other income:
Interest income from related parties		924			1,095			3,133			3,389
Other Income		—			—			250			—
Total other income		924			1,095			3,383			3,389
Net income	$	612		$	752		$	2,359		$	2,388
Earnings per share - basic and diluted
Net income	$	0.15		$	0.18		$	0.57		$	0.57
Weighted average common shares used in computing earnings per share		4,168,214			4,168,214			4,168,214			4,168,214

INCOME OPPORTUNITY REALTY INVESTORS, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	September 30,			December 31,
	2017			2016
	(dollars in thousands, except par value amount)
Assets
Real estate land holdings subject to sales contract, at cost	$	22,717		$	22,717
Total real estate		22,717			22,717
Notes and interest receivable from related parties		15,403			25,485
Less allowance for doubtful accounts		(1,826	)		(1,826	)
Total notes and interest receivable		13,577			23,659
Cash and cash equivalents		4			1
Receivable and accrued interest from related parties		50,391			37,768
Other assets		2,049			2,257
Total assets	$	88,738		$	86,402
Liabilities and Shareholders’ Equity
Liabilities:
Accounts payable and other liabilities	$	—		$	23
Total liabilities		—			23
Shareholders’ equity:
Common stock, $0.01 par value, authorized 10,000,000 shares; issued 4,173,675 and outstanding 4,168,214 shares in 2017 and 2016		42			42
Treasury stock at cost, 5,461 shares in 2017 and 2016		(39	)		(39	)
Paid-in capital		61,955			61,955
Retained earnings		26,780			24,421
Total shareholders’ equity		88,738			86,379
Total liabilities and shareholders’ equity	$	88,738		$	86,402