Income Opportunity Realty Investors, Inc. (NYSE American: IOR), a Dallas-based real estate investment company, today reported results of operations for the fourth quarter ended December 31, 2020. For the three months ended December 31, 2020, we reported a net income applicable to common shares of $1.3 million or $0.32 per share, as compared to net income of $1.1 million or $0.25 per diluted share for the same period ended 2019.
For the full year ended December 31, 2020 the Company reported net income applicable to common shares of $4.2 million or $1.01 per diluted earnings per share for the year ended December 31, 2020, compared to a net income applicable to common shares of $4.1 million or $.99 per diluted earnings per share for the same period ended 2019.
Our primary business is investing in mortgage and note receivables.
Expenses
General and administrative expenses were $450,000 for the year ended December 31, 2020. General and administrative expenses were $494,000 for the year ended December 31, 2019.
Net income fee to related party was $371,000 for the year ended December 31, 2020. This represents an increase of $14,000, compared to the net income fee of $357,000 for the year ended December 31, 2019. The net income fee paid is calculated at the rate of 7.5% of net income.
Advisory fees were $768,000 for the year ended December 31, 2020. This represents an increase of $31,000 compared to advisory fees of $737,000 for the year ended December 31, 2019. Advisory fees are computed based on a gross asset fee of 0.0625% per month (0.75% per annum) of the average of the gross asset value.
Other income (expense)
Interest income was $5.4 million for the year ended December 31, 2020. This represents a decrease of $1.2 million, compared to interest income of $6.6 million for the year ended December 31, 2019. This decrease was primarily due to a decrease in the prime rate.
Other income was $1.5 million for the year ended December 31, 2020. This represents an increase of $1.3 million compared to other income of $237 thousand for the year ended December 31, 2019. This increase was primarily due to collection of a note previously written off.
Income tax expense was $1.1 million for both 2020 and 2019.
About Income Opportunity Realty Investors, Inc.
Income Opportunity Realty Investors, Inc., a Dallas based company that holds both mortgages and notes receivable. For more information, visit the Company’s website at www.incomeopp-realty.com.
INCOME OPPORTUNITY REALTY INVESTORS, INC. | ||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
(dollars in thousands, except per share amounts) | ||||||||||||
Revenues: | ||||||||||||
Revenue from operations | $ | - | $ | - | $ | - | ||||||
Expenses: | ||||||||||||
General and administrative (including $247, $260, and $284 for the year ended 2020, 2019, and 2018 respectively, to related parties) | 450 | 494 | 494 | |||||||||
Net income fee to related party | 371 | 357 | 631 | |||||||||
Advisory fee to related party | 768 | 737 | 685 | |||||||||
Total operating expenses | 1,589 | 1,588 | 1,810 | |||||||||
Net operating loss | (1,589 | ) | (1,588 | ) | (1,810 | ) | ||||||
Other income / expenses: | ||||||||||||
Interest income from related parties | 5,373 | 6,574 | 4,880 | |||||||||
Other Income | 1,550 | 237 | - | |||||||||
Total other income | 6,923 | 6,811 | 4,880 | |||||||||
Income before gain on sale of real estate land | 5,334 | 5,223 | 3,070 | |||||||||
Gain on sale of real estate land | - | - | 7,323 | |||||||||
Income before taxes | 5,334 | 5,223 | 10,393 | |||||||||
Income tax expense - current | 1,120 | 1,078 | 1,391 | |||||||||
Income tax expense - deferred | - | - | 792 | |||||||||
Net income | $ | 4,214 | $ | 4,145 | $ | 8,210 | ||||||
Earnings per share - basic and diluted | ||||||||||||
Net income | $ | 1.01 | $ | 0.99 | $ | 1.97 | ||||||
Weighted average common shares used in computing earnings per share | 4,168,414 | 4,168,414 | 4,168,214 |
INCOME OPPORTUNITY REALTY INVESTORS, INC. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
December 31, | December 31, | |||||||
2020 | 2019 | |||||||
(dollars in thousands, except par value amount) | ||||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | 12 | 5 | ||||||
Receivable and accrued interest from related parties | 90,526 | 86,221 | ||||||
Total current assets | 90,538 | 86,226 | ||||||
Non current assets | ||||||||
Notes and interest receivable from related parties | 13,930 | 14,030 | ||||||
Total non current assets | 13,930 | 14,030 | ||||||
Other assets | - | - | ||||||
Total Assets | $ | 104,468 | $ | 100,256 | ||||
Liabilities and Shareholders' Equity | ||||||||
Liabilities | ||||||||
Accounts payable | $ | 12 | $ | 14 | ||||
Total liabilities | 12 | 14 | ||||||
Shareholders’ equity | ||||||||
Common stock, $.01 par value, authorized 10,000,000 shares; issued 4,173,675 and outstanding 4,168,414 shares in 2020 and 2019 | 42 | 42 | ||||||
Treasury stock at cost, 5,261 shares in 2020 and 2019 | (39 | ) | (39 | ) | ||||
Paid-in capital | 61,955 | 61,955 | ||||||
Retained Earnings | 42,498 | 38,284 | ||||||
Total shareholders' equity | 104,456 | 100,242 | ||||||
Total liabilities and shareholders' equity | $ | 104,468 | $ | 100,256 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210330005927/en/
Contacts:
Investor Relations
Gene Bertcher (800) 400-6407
investor.relations@incomeopp-realty.com