Exhibit 99.1
NEWS RELEASE FOR IMMEDIATE RELEASE | Contact: Income Opportunity Realty Investors,Inc. InvestorRelations GeneBertcher(800)400-6407 investor.relations@incomeopp-realty.com |
Income Opportunity Realty Investors, Inc. Reports First Quarter 2019 Results
DALLAS (May 15, 2019) Income Opportunity Realty Investors, Inc. (NYSE American: IOT), a Dallas-based real estate investment company, today reported results of operations for the first quarter ended March 31, 2019. The Company reportednet income applicable to common shares for the three months ended March 31, 2019 of $970,000 or $0.23 per share, as compared to net income applicable to common shares of $702,000 or $0.17 per share for the three months ended March 31, 2018.
Our primary business is investing in real estate and financing real estate and real estate related activities through investments in mortgage loans.
Revenues
At March 31, 2019 the Company had no real estate holdings. The principal source of income for the Company is interest income.
Expenses
General and administrative expenses were $133 thousand for the three months ended March 31, 2019. This represents an increase of $10 thousand, compared to general and administrative expenses of $123 thousand for the three months ended March 31, 2018. This increase was primarily driven by an increase in administrative fees of approximately $22 thousand offset by a decrease in legal and regulatory fees of $10 thousand.
Advisory fees were $181 thousand for the three months ended March 31, 2019 compared to $164 thousand for the same period in 2018 for an increase of $17 thousand. Advisory fees are computed based on a percentage of gross assets
Net income fee to related party was $100 thousand for the three months ended March 31, 2019. This represents an increase of $47 thousand, compared to the net income fee of $53 thousand for the three months ended March 31, 2018. The net income fee paid to our Advisor is calculated as a percentage of net income.
Other income (expense)
Interest income increased to $1.6 million for the three months ended March 31, 2019 compared to $1.0 million for the same period in 2018. The increase of $600 thousand was primarily due to an increase in the receivable amount owed from our Advisor and other related parties.
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) | | | |
| | | For the Three Months Ended March 31, |
| | | 2019 | | 2018 |
| | | (dollars in thousands, except per share amounts) |
| |
| Expenses: | | | | |
| General and administrative (including $87 and $64 for the three months ended 2019 and 2018, respectively, to related parties) | | $ | 133 | | | $ | 123 | |
| Net income fee to related party | | | 100 | | | | 53 | |
| Advisory fee to related party | | | 181 | | | | 164 | |
| Total operating expenses | | | 414 | | | | 340 | |
| Net operating loss | | | (414 | ) | | | (340 | ) |
| | | | | | | | | |
| Other income (expenses): | | | | | | | | |
| Interest income from related parties | | | 1,642 | | | | 1,042 | |
| Total other income | | | 1,642 | | | | 1,042 | |
| Income before taxes | | | 1,228 | | | | 702 | |
| Income tax expense | | | 258 | | | | — | |
| Net income | | $ | 970 | | | $ | 702 | |
| | | | | | | | | |
| Earnings per share - basic and diluted | | | | | | | | |
| Net income | | $ | 0.23 | | | $ | 0.17 | |
| | | | | | | | | |
| Weighted average common shares used in computing earnings per share | | | 4,168,214 | | | | 4,168,214 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| The accompanying notes are an integral part of these consolidated financial statements. |
| INCOME OPPORTUNITY REALTY INVESTORS, INC. |
| CONSOLIDATED BALANCE SHEETS |
| |
| | | March 31, | | December 31, |
| | | 2019 | | 2018 |
| | | (Unaudited) | | (Audited) |
| | | (dollars in thousands, except par value amount) |
| Assets | | | | |
| Notes and interest receivable from related parties | | $ | 13,568 | | | $ | 14,030 | |
| Total notes and interest receivable | | | 13,568 | | | | 14,030 | |
| Cash and cash equivalents | | | 4 | | | | 4 | |
| Receivable and accrued interest from related parties | | | 83,498 | | | | 82,089 | |
| Total assets | | $ | 97,070 | | | $ | 96,123 | |
| | | | | | | | | |
| Liabilities and Shareholders’ Equity | | | | | | | | |
| Liabilities: | | | | | | | | |
| Accounts payable and other liabilities | | $ | 3 | | | $ | 26 | |
| Total liabilities | | | 3 | | | | 26 | |
| Shareholders’ equity: | | | | | | | | |
| Common stock, $0.01 par value, authorized 10,000,000 shares; issued 4,173,675 and outstanding 4,168,214 shares in 2019 and 2018 | | | 42 | | | | 42 | |
| Treasury stock at cost, 5,461 shares in 2019 and 2018 | | | (39 | ) | | | (39 | ) |
| Paid-in capital | | | 61,955 | | | | 61,955 | |
| Retained earnings | | | 35,109 | | | | 34,139 | |
| Total shareholders' equity | | | 97,067 | | | | 96,097 | |
| Total liabilities and shareholders' equity | | $ | 97,070 | | | $ | 96,123 | |
| | | | | | | | | |
| The accompanying notes are an integral part of these consolidated financial statements. |
