Cover
Cover - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Mar. 24, 2022 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Period End Date | Dec. 31, 2021 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-14784 | |
Entity Registrant Name | Income Opportunity Realty Investors, Inc. | |
Entity Central Index Key | 0000949961 | |
Entity Tax Identification Number | 75-2615944 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 1603 LBJ Freeway | |
Entity Address, Address Line Two | Suite 800 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75234 | |
City Area Code | 469 | |
Local Phone Number | 522-4200 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | IOR | |
Security Exchange Name | NYSE | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Public Float | $ 6,600,000 | |
Entity Common Stock, Shares Outstanding | 4,168,414 | |
Auditor Name | Swalm & Associates, P.C. | |
Auditor Location | Richardson, Texas | |
Auditor Firm ID | 1820 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 2 | $ 12 |
Interest receivable | 591 | 804 |
Receivable from related parties | 96,300 | 90,526 |
Total current assets | 96,893 | 91,342 |
Non-current assets | ||
Notes receivable from related parties | 11,173 | 13,126 |
Total assets | 108,066 | 104,468 |
Liabilities: | ||
Accounts payable | 12 | 12 |
Shareholders' equity | ||
Common stock, $0.01 par value, 10,000,000 shares authorized; 4,173,675 shares issued and 4,168,414 outstanding | 42 | 42 |
Treasury stock at cost, 5,261 shares | (39) | (39) |
Additional paid-in capital | 61,955 | 61,955 |
Retained earnings | 46,096 | 42,498 |
Total shareholders’ equity | 108,054 | 104,456 |
Total liabilities and equity | $ 108,066 | $ 104,468 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized | 10,000,000 | 10,000,000 |
Common stock, issued | 4,173,675 | 4,173,675 |
Common stock, outstanding | 4,168,414 | 4,168,414 |
Treasury stock | 5,261 | 5,261 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Other income | |||
Expenses: | |||
General and administrative (including $282, $247 and $260 for 2021, 2020 and 2019, respectively, from related parties) | 470 | 450 | 494 |
Advisory fee to related party | 1,108 | 1,139 | 1,094 |
Total operating expenses | 1,578 | 1,589 | 1,588 |
Net operating loss | (1,578) | (1,589) | (1,588) |
Interest income from related parties | 4,953 | 5,373 | 6,574 |
Other income | 1,179 | 1,550 | 237 |
Income tax provision | (956) | (1,120) | (1,078) |
Net income | $ 3,598 | $ 4,214 | $ 4,145 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
General and administrative, related parties | $ 282 | $ 247 | $ 260 |
Earnings Per Share, Basic | $ 0.86 | $ 1.01 | $ 0.99 |
Earnings Per Share, Diluted | $ 0.86 | $ 1.01 | $ 0.99 |
Weighted Average Number of Shares Outstanding, Basic | 4,168,414 | 4,168,414 | 4,168,414 |
Weighted Average Number of Shares Outstanding, Diluted | 4,168,414 | 4,168,414 | 4,168,414 |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2018 | $ 42 | $ (39) | $ 61,955 | $ 34,139 | $ 96,097 |
Beginning balance, shares at Dec. 31, 2018 | 4,173,675 | ||||
Net income | 4,145 | 4,145 | |||
Ending balance, value at Dec. 31, 2019 | $ 42 | (39) | 61,955 | 38,284 | 100,242 |
Ending balance, shares at Dec. 31, 2019 | 4,173,675 | ||||
Net income | 4,214 | 4,214 | |||
Ending balance, value at Dec. 31, 2020 | $ 42 | (39) | 61,955 | 42,498 | $ 104,456 |
Ending balance, shares at Dec. 31, 2020 | 4,173,675 | 4,173,675 | |||
Net income | 3,598 | $ 3,598 | |||
Ending balance, value at Dec. 31, 2021 | $ 42 | $ (39) | $ 61,955 | $ 46,096 | $ 108,054 |
Ending balance, shares at Dec. 31, 2021 | 4,173,675 | 4,173,675 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flow From Operating Activities: | |||
Net income | $ 3,598 | $ 4,214 | $ 4,145 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Recovery of doubtful accounts | (1,017) | ||
Changes in assets and liabilities, net of dispositions: | |||
Accrued interest on related party notes receivable | 213 | 100 | |
Related party receivables | (5,774) | (4,305) | (4,132) |
Accounts payable | (2) | (12) | |
Net cash (used in) provided by operating activities | (2,980) | 7 | 1 |
Cash Flow From Investing Activities: | |||
Collection of notes receivable | 2,970 | ||
Net cash provided by investing activities | 2,970 | ||
Net (decrease) increase in cash and cash equivalents | (10) | 7 | 1 |
Cash and cash equivalents, beginning of year | 12 | 5 | 4 |
Cash and cash equivalents, end of year | $ 2 | $ 12 | $ 5 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | 1. Organization Income Opportunity Investors, Inc. (the “Company”) is an externally managed company that invests in mortgage notes receivables. As used herein, the terms “IOR”, “the Company”, “We”, “Our”, or “Us” refer to the Company. Transcontinental Realty Investors, Inc. (“TCI”), whose common stock is traded on the NYSE under the symbol “TCI”, owns 81.1 87.6 78.4 Our business is managed by Pillar Income Asset Management, Inc. (“Pillar”) in accordance with an Advisory Agreement that is reviewed annually by our Board of Directors. Pillar is considered to be related parties (See Note 12 – Related Party Transactions). Pillar’s duties include, but are not limited to, locating, evaluating and recommending real estate and real estate-related investment opportunities. Pillar also arranges our debt and equity financing with third party lenders and investors. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of presentation These consolidated financial statements have been prepared in accordance with generally accepted accounting principles ("GAAP") in the United States of America. We consolidate entities in which we are considered to be the primary beneficiary of a variable interest entity (“VIE”) or have a majority of the voting interest of the entity. We have determined that we are a primary beneficiary of the VIE when we have (i) the power to direct the activities of a VIE that most significantly impacts its economic performance, and (ii) the obligations to absorb losses or the right to receive benefits that could potentially be significant to the VIE. In determining whether we are the primary beneficiary, we consider qualitative and quantitative factors, including ownership interest, management representation, ability to control decision and other contractual rights. We account for entities in which we have less than a controlling financial interest or entities where we are not deemed to be the primary beneficiary under the equity method of accounting. Accordingly, we include our share of the net earnings or losses of these entities in our results of operations. Certain prior year amounts have been reclassified to conform to the current year presentation on the consolidated balance sheets, consolidated statements of operations and the consolidated statements of cash flows. Fair value measurement Fair value represents the price that would be received to sell an asset or paid to transfer a liability in a transaction between market participants at the measurement date. In determining fair value we apply the following hierarchy: Level 1 —Unadjusted quoted prices for identical and unrestricted assets or liabilities in active markets. Level 2 —Quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 —Unobservable inputs that are significant to the fair value measurement. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Related parties Related parties are persons or entities who have one or more of the following characteristics, which include entities for which investments in their equity securities would be required, trust for the benefit of persons including principal owners of the entities and members of their immediate families, management personnel of the entity and members of their immediate families and other parties with which the entity may deal if one party controls or can significantly influence the decision making of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests, or affiliates of the entity. Cash and Cash Equivalents and Restricted Cash We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents, for which cost approximates fair value. Concentration of credit risk We maintain our cash balances at commercial banks and through investment companies, the deposits that are insured by the Federal Deposit Insurance Corporation (FDIC). At December 31, 2021 and 2020, the Company maintained balances in excess of the insured amount. Income taxes We are a “C” corporation” for U.S. federal income tax purposes. However, we are included in the May Realty Holdings, Inc. (the "MRHI"). consolidated group for tax purposes. We have a tax sharing agreement that specifies the manner in which the group will share the consolidated tax liability and also how certain tax attributes are to be treated among members of the group. Comprehensive income Net income and comprehensive income (loss) are the same for the year ended December 31, 2021, 2020 and 2019. Use of estimates In the preparation of consolidated financial statements in conformity with GAAP, it is necessary for management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expense for the year ended. Actual results could differ from those estimates. |
Notes Receivable
Notes Receivable | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Notes Receivable | 3. Notes Receivable The following table summarizes our notes receivables at December 31, 2021 and 2020: Carrying Value Interest Maturity Borrower / Project 2021 2020 Rate Date United Housing Foundation ( Echo Station $ 1,481 $ 1,481 12.00 % 12/31/2032 United Housing Foundation ( Lakeshore Villas 2,000 2,000 12.00 % 12/31/2032 United Housing Foundation ( Lakeshore Villas 6,369 6,369 12.00 % 12/31/2032 United Housing Foundation ( Limestone Ranch — 1,953 12.00 % 12/31/2032 United Housing Foundation ( Timbers of Terrell 1,323 1,323 12.00 % 12/31/2032 $ 11,173 $ 13,126 The borrower is determined to be a related party due to our significant investment in the performance of the collateral secured by the notes receivable. Principal and interest payments on the notes from Unified Housing Foundation, Inc. (“UHF”) are funded from surplus cash flow from operations, sale or refinancing of the underlying properties and are cross collateralized to the extent that any surplus cash available from any of the properties underlying the notes. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 4. Related Party Transactions We engage in certain business transactions with related parties, including investment in notes receivables. Transactions involving related parties cannot be presumed to be carried out on an arm’s length basis due to the absence of free market forces that naturally exist in business dealings between two or more unrelated entities. Related party transactions may not always be favorable to our business and may include terms, conditions and agreements that are not necessarily beneficial to or in our best interest. Pillar is a wholly owned by an affiliates of the MRHI, which owns approximately 90.8 78.4 81.1 Advisor fees paid to Pillar were $ 1,108 1,139 1,094 Notes receivable are amounts held by UHF (See Note 3 – Notes Receivable). UHF is determined to be a related party due to our significant investment in the performance of the collateral secured by the notes receivable. Interest income on these notes was $ 1,371 1,790 1,794 Interests income on related party receivables from TCI 3,582 3,583 4,780 Related party receivables represents amounts outstanding from TCI for loans and advances, net of unreimbursed fees, expenses and costs as provided above. |
Shareholders Equity
Shareholders Equity | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Shareholders Equity | 5. Shareholders Equity Our decision to declare dividends on common stock are determined on an annual basis following the end of each year. In accordance with that policy, no |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 6. Income Taxes We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We recognize deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The (benefit) expense for income taxes consists of: Years Ended December 31, 2021 2020 2019 Current: Federal $ 956 $ 1,120 $ 1,078 State — — — Total tax (benefit) expense $ 956 $ 1,120 $ 1,078 The reconciliation between our effective tax rate on income from operations and the statutory rate is as follows: Years Ended December 31, 2021 2020 2019 Income tax (benefit) expense at federal statutory rate $ 956 $ 1,120 $ 1,078 State and local income taxes net of federal tax (benefit) expense — — — Permanent tax differences — — — Temporary tax differences — — — Reported tax (benefit) expense $ 956 $ 1,120 $ 1,078 Effective tax rate 4.7 % — % 0.7 % We assess the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 7. Commitments and Contingencies We believe that we will generate excess cash from property operations in the next twelve months; such excess, however, might not be sufficient to discharge all of our obligations as they become due. We intend to sell income-producing assets, refinance real estate and obtain additional borrowings primarily secured by real estate to meet our liquidity requirements. In February 2019, we were charged in a lawsuit brought by Paul Berger (“Berger”) that alleges that we completed improper sales and/or transfers of property with IOR. Berger requests that we pay off various related party loans to IOR and that IOR then distribute the funds to its shareholders. We intend to vigorously defend against the allegations. |
Quarterly Results of Operations
Quarterly Results of Operations | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations | 8. Quarterly Results of Operations The following is a tabulation of our quarterly results of operations for the years 2021 and 2020. 2021 Quarter Ended March 31, June 30, September 30, December 31 Net operating loss $ (524 ) $ (356 ) $ (345 ) $ (353 ) Net income 1,352 819 712 715 Net income per share - basic and diluted $ 0.32 $ 0.20 $ 0.17 $ 0.17 2020 Quarter Ended March 31, June 30, September 30, December 31 Net operating loss $ (414 ) $ (431 ) $ (339 ) $ (405 ) Net income 841 1,265 761 1,347 Net income per share - basic and diluted $ 0.20 $ 0.30 $ 0.18 $ 0.33 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 9. Subsequent Events The date to which events occurring after December 31, 2021, the date of the most recent balance sheet, have been evaluated for possible adjustments to the financial statements or disclosure is March 24, 2022, which is the date of which the financial statements were available to be issued. There are no subsequent events that would require an adjustment to the financial statements. |
SCHEDULE IV - MORTGAGE LOANS
SCHEDULE IV - MORTGAGE LOANS | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
SCHEDULE IV - MORTGAGE LOANS | SCHEDULE IV - MORTGAGE LOANS SCHEDULE IV Mortgage Loans Receivable December 31, 2021 Description Interest Maturity Periodic Payment Terms Prior Face Carrying United Housing Foundation ( Echo Station 12.00% 12/31/2032 Payments from excess property cash flows $ 13,738 $ 1,481 $ 1,481 United Housing Foundation ( Lakeshore Villas 12.00% 12/31/2032 Payments from excess property cash flows 26,645 2,000 2,000 United Housing Foundation ( Lakeshore Villas 12.00% 12/31/2032 Payments from excess property cash flows — 6,369 6,369 United Housing Foundation ( Timbers of Terrell 12.00% 12/31/2032 Payments from excess property cash flows 13,680 1,323 1,323 $ 54,063 $ 11,173 $ 11,173 SCHEDULE IV Mortgage Loans Receivable Roll Forward SCHEDULE IV - MORTGAGE LOANS As of December 31, 2021 2020 2019 Balance at January 1, $ 13,126 $ 13,126 $ 13,126 Additions — — — Deductions (1,953 ) — — Balance at December 31, $ 11,173 $ 13,126 $ 13,126 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation These consolidated financial statements have been prepared in accordance with generally accepted accounting principles ("GAAP") in the United States of America. We consolidate entities in which we are considered to be the primary beneficiary of a variable interest entity (“VIE”) or have a majority of the voting interest of the entity. We have determined that we are a primary beneficiary of the VIE when we have (i) the power to direct the activities of a VIE that most significantly impacts its economic performance, and (ii) the obligations to absorb losses or the right to receive benefits that could potentially be significant to the VIE. In determining whether we are the primary beneficiary, we consider qualitative and quantitative factors, including ownership interest, management representation, ability to control decision and other contractual rights. We account for entities in which we have less than a controlling financial interest or entities where we are not deemed to be the primary beneficiary under the equity method of accounting. Accordingly, we include our share of the net earnings or losses of these entities in our results of operations. Certain prior year amounts have been reclassified to conform to the current year presentation on the consolidated balance sheets, consolidated statements of operations and the consolidated statements of cash flows. |
Fair value measurement | Fair value measurement Fair value represents the price that would be received to sell an asset or paid to transfer a liability in a transaction between market participants at the measurement date. In determining fair value we apply the following hierarchy: Level 1 —Unadjusted quoted prices for identical and unrestricted assets or liabilities in active markets. Level 2 —Quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 —Unobservable inputs that are significant to the fair value measurement. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. |
Related parties | Related parties Related parties are persons or entities who have one or more of the following characteristics, which include entities for which investments in their equity securities would be required, trust for the benefit of persons including principal owners of the entities and members of their immediate families, management personnel of the entity and members of their immediate families and other parties with which the entity may deal if one party controls or can significantly influence the decision making of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests, or affiliates of the entity. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents, for which cost approximates fair value. |
Concentration of credit risk | Concentration of credit risk We maintain our cash balances at commercial banks and through investment companies, the deposits that are insured by the Federal Deposit Insurance Corporation (FDIC). At December 31, 2021 and 2020, the Company maintained balances in excess of the insured amount. |
Income taxes | Income taxes We are a “C” corporation” for U.S. federal income tax purposes. However, we are included in the May Realty Holdings, Inc. (the "MRHI"). consolidated group for tax purposes. We have a tax sharing agreement that specifies the manner in which the group will share the consolidated tax liability and also how certain tax attributes are to be treated among members of the group. |
Comprehensive income | Comprehensive income Net income and comprehensive income (loss) are the same for the year ended December 31, 2021, 2020 and 2019. |
Use of estimates | Use of estimates In the preparation of consolidated financial statements in conformity with GAAP, it is necessary for management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expense for the year ended. Actual results could differ from those estimates. |
Notes Receivable (Tables)
Notes Receivable (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
The following table summarizes our notes receivables at December 31, 2021 and 2020: | The following table summarizes our notes receivables at December 31, 2021 and 2020: Carrying Value Interest Maturity Borrower / Project 2021 2020 Rate Date United Housing Foundation ( Echo Station $ 1,481 $ 1,481 12.00 % 12/31/2032 United Housing Foundation ( Lakeshore Villas 2,000 2,000 12.00 % 12/31/2032 United Housing Foundation ( Lakeshore Villas 6,369 6,369 12.00 % 12/31/2032 United Housing Foundation ( Limestone Ranch — 1,953 12.00 % 12/31/2032 United Housing Foundation ( Timbers of Terrell 1,323 1,323 12.00 % 12/31/2032 $ 11,173 $ 13,126 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
The (benefit) expense for income taxes consists of: | The (benefit) expense for income taxes consists of: Years Ended December 31, 2021 2020 2019 Current: Federal $ 956 $ 1,120 $ 1,078 State — — — Total tax (benefit) expense $ 956 $ 1,120 $ 1,078 |
The reconciliation between our effective tax rate on income from operations and the statutory rate is as follows: | The reconciliation between our effective tax rate on income from operations and the statutory rate is as follows: Years Ended December 31, 2021 2020 2019 Income tax (benefit) expense at federal statutory rate $ 956 $ 1,120 $ 1,078 State and local income taxes net of federal tax (benefit) expense — — — Permanent tax differences — — — Temporary tax differences — — — Reported tax (benefit) expense $ 956 $ 1,120 $ 1,078 Effective tax rate 4.7 % — % 0.7 % |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
The following is a tabulation of our quarterly results of operations for the years 2021 and 2020. | The following is a tabulation of our quarterly results of operations for the years 2021 and 2020. 2021 Quarter Ended March 31, June 30, September 30, December 31 Net operating loss $ (524 ) $ (356 ) $ (345 ) $ (353 ) Net income 1,352 819 712 715 Net income per share - basic and diluted $ 0.32 $ 0.20 $ 0.17 $ 0.17 2020 Quarter Ended March 31, June 30, September 30, December 31 Net operating loss $ (414 ) $ (431 ) $ (339 ) $ (405 ) Net income 841 1,265 761 1,347 Net income per share - basic and diluted $ 0.20 $ 0.30 $ 0.18 $ 0.33 |
SCHEDULE IV - MORTGAGE LOANS (T
SCHEDULE IV - MORTGAGE LOANS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
SCHEDULE IV Mortgage Loans Receivable | SCHEDULE IV Mortgage Loans Receivable December 31, 2021 Description Interest Maturity Periodic Payment Terms Prior Face Carrying United Housing Foundation ( Echo Station 12.00% 12/31/2032 Payments from excess property cash flows $ 13,738 $ 1,481 $ 1,481 United Housing Foundation ( Lakeshore Villas 12.00% 12/31/2032 Payments from excess property cash flows 26,645 2,000 2,000 United Housing Foundation ( Lakeshore Villas 12.00% 12/31/2032 Payments from excess property cash flows — 6,369 6,369 United Housing Foundation ( Timbers of Terrell 12.00% 12/31/2032 Payments from excess property cash flows 13,680 1,323 1,323 $ 54,063 $ 11,173 $ 11,173 |
SCHEDULE IV Mortgage Loans Receivable Roll Forward | SCHEDULE IV Mortgage Loans Receivable Roll Forward SCHEDULE IV - MORTGAGE LOANS As of December 31, 2021 2020 2019 Balance at January 1, $ 13,126 $ 13,126 $ 13,126 Additions — — — Deductions (1,953 ) — — Balance at December 31, $ 11,173 $ 13,126 $ 13,126 |
Organization (Details Narrative
Organization (Details Narrative) | Dec. 31, 2021 |
Transcontinental Realty Investors Inc [Member] | |
Percentage of ownership | 81.10% |
Transcontinental Realty Investors, Inc. and Affiliates [Member] | Common Stock [Member] | |
Percentage of ownership | 87.60% |
American Realty Investors, Inc. [Member] | Transcontinental Realty Investors, Inc. [Member] | |
Percentage of ownership | 78.40% |
The following table summarizes
The following table summarizes our notes receivables at December 31, 2021 and 2020: (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Carrying Value | $ 11,173 | $ 13,126 |
Unified Housing Foundation, Inc. (Echo Station) [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Description of property | Echo Station | |
Carrying Value | $ 1,481 | 1,481 |
Interest Rate | 12.00% | |
Maturity Date | Dec. 31, 2032 | |
Unified Housing Foundation, Inc. (Lakeshore Villas) [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Description of property | Lakeshore Villas | |
Carrying Value | $ 2,000 | 2,000 |
Interest Rate | 12.00% | |
Maturity Date | Dec. 31, 2032 | |
Unified Housing Foundation, Inc. (Lakeshore Villas) | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Description of property | Lakeshore Villas | |
Carrying Value | $ 6,369 | 6,369 |
Interest Rate | 12.00% | |
Maturity Date | Dec. 31, 2032 | |
Unified Housing Foundation, Inc. (Limestone Ranch) [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Description of property | Limestone Ranch | |
Carrying Value | 1,953 | |
Interest Rate | 12.00% | |
Maturity Date | Dec. 31, 2032 | |
Unified Housing Foundation, Inc. (Timbers of Terrell) [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Description of property | Timbers of Terrell | |
Carrying Value | $ 1,323 | $ 1,323 |
Interest Rate | 12.00% | |
Maturity Date | Dec. 31, 2032 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Advisor fees paid | $ 1,108 | $ 1,139 | $ 1,094 |
Interest income from related parties | 4,953 | 5,373 | 6,574 |
TCI [Member] | |||
Related Party Transaction [Line Items] | |||
Advisor fees paid | 1,108 | 1,139 | 1,094 |
Interest income from related parties | 3,582 | 3,583 | 4,780 |
Unified Housing Foundation, Inc. [Member] | |||
Related Party Transaction [Line Items] | |||
Interest income from related parties | $ 1,371 | $ 1,790 | $ 1,794 |
May Realty Holdings, Inc. [Member] | American Realty Investors, Inc. [Member] | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership | 90.80% | ||
American Realty Investors, Inc. [Member] | Transcontinental Realty Investors, Inc. [Member] | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership | 78.40% | ||
Transcontinental Realty Investors Inc [Member] | |||
Related Party Transaction [Line Items] | |||
Percentage of ownership | 81.10% |
Shareholders Equity (Details Na
Shareholders Equity (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | |||
Dividends on common stock | $ 0 | $ 0 | $ 0 |
The (benefit) expense for incom
The (benefit) expense for income taxes consists of: (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ 956 | $ 1,120 | $ 1,078 |
State | |||
Total tax (benefit) expense | $ 956 | $ 1,120 | $ 1,078 |
The reconciliation between our
The reconciliation between our effective tax rate on income from operations and the statutory rate is as follows: (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income tax (benefit) expense at federal statutory rate | $ 956 | $ 1,120 | $ 1,078 |
State and local income taxes net of federal tax (benefit) expense | |||
Permanent tax differences | |||
Temporary tax differences | |||
Reported tax (benefit) expense | $ 956 | $ 1,120 | $ 1,078 |
Effective tax rate | 4.70% | 0.70% |
The following is a tabulation o
The following is a tabulation of our quarterly results of operations for the years 2021 and 2020. (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net operating loss | $ (353) | $ (345) | $ (356) | $ (524) | $ (405) | $ (339) | $ (431) | $ (414) | $ (1,578) | $ (1,589) | $ (1,588) |
Net income | $ 715 | $ 712 | $ 819 | $ 1,352 | $ 1,347 | $ 761 | $ 1,265 | $ 841 | $ 3,598 | $ 4,214 | $ 4,145 |
Earnings Per Share, Basic | $ 0.17 | $ 0.17 | $ 0.20 | $ 0.32 | $ 0.33 | $ 0.18 | $ 0.30 | $ 0.20 | $ 0.86 | $ 1.01 | $ 0.99 |
Earnings Per Share, Diluted | $ 0.17 | $ 0.17 | $ 0.20 | $ 0.32 | $ 0.33 | $ 0.18 | $ 0.30 | $ 0.20 | $ 0.86 | $ 1.01 | $ 0.99 |
SCHEDULE IV Mortgage Loans Rece
SCHEDULE IV Mortgage Loans Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Prior liens | $ 54,063 | |||
Face amount | 11,173 | |||
Carrying value | $ 11,173 | $ 13,126 | $ 13,126 | $ 13,126 |
Unified Housing Foundation, Inc. (Echo Station) [Member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Location | Echo Station | |||
Interest Rate | 12.00% | |||
Maturity Date | Dec. 31, 2032 | |||
Periodic Payment Terms | Payments from excess property cash flows | |||
Prior liens | $ 13,738 | |||
Face amount | 1,481 | |||
Carrying value | $ 1,481 | |||
Unified Housing Foundation, Inc. (Lakeshore Villas) [Member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Location | Lakeshore Villas | |||
Interest Rate | 12.00% | |||
Maturity Date | Dec. 31, 2032 | |||
Periodic Payment Terms | Payments from excess property cash flows | |||
Prior liens | $ 26,645 | |||
Face amount | 2,000 | |||
Carrying value | $ 2,000 | |||
Unified Housing Foundation, Inc. (Lakeshore Villas) | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Location | Lakeshore Villas | |||
Interest Rate | 12.00% | |||
Maturity Date | Dec. 31, 2032 | |||
Periodic Payment Terms | Payments from excess property cash flows | |||
Face amount | $ 6,369 | |||
Carrying value | $ 6,369 | |||
Unified Housing Foundation, Inc. (Timbers of Terrell) [Member] | ||||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items] | ||||
Location | Timbers of Terrell | |||
Interest Rate | 12.00% | |||
Maturity Date | Dec. 31, 2032 | |||
Periodic Payment Terms | Payments from excess property cash flows | |||
Prior liens | $ 13,680 | |||
Face amount | 1,323 | |||
Carrying value | $ 1,323 |
SCHEDULE IV Mortgage Loans Re_2
SCHEDULE IV Mortgage Loans Receivable Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |||
Balance at January 1, | $ 13,126 | $ 13,126 | $ 13,126 |
Additions | |||
Deductions | (1,953) | ||
Balance at December 31, | $ 11,173 | $ 13,126 | $ 13,126 |