Business & Finance
Business and Finance
Business and Finance
Tue, November 16, 2010
Mon, November 15, 2010 Income Opportunity Realty Investors, Inc. Reports Third Quarter 2010 Results
DALLAS--([ BUSINESS WIRE ])--Income Opportunity Realty Investors, Inc. (AMEX:IOT), a Dallas-based real estate investment company, today reported results of operations for the third quarter ended September 30, 2010. IOT announced today that the Company reported a net income applicable to common shares of $112,000 or $0.03 per diluted earnings per share for the period ended September 30, 2010, as compared to a net loss applicable to common shares of $1,153,000 or $0.28 per diluted earnings per share for the same period ended 2009.
Rental revenues and operating expenses remained fairly consistent for the nine months ended September 30, 2010, in comparison to the prior period. Revenues increased by $28,000 in the current year, due to an increase in rental rates on the leasing of our storage warehouse, and expenses decreased by $32,000 in the current year, due to decreases in expenses related to our storage warehouse and our land portfolio.
General and administrative expenses were $250,000 for the nine months ended September 30, 2010. This represents an increase of $71,000, as compared to the prior period expenses of $179,000. This increase was due to advisory fees and accounting fees without a similar accrual in the prior period, offset by decreases in professional services.
Interest income was $1,842,000 for the nine months ended September 30, 2010. This represents an increase of $727,000 as compared to the prior period interest income of $1,115,000. The increase was due to the receipt of cash on the receivables from Unified Housing Foundation, Inc. in the current period. The notes are excess cash flow notes and interest on the notes is recorded as cash is received. More cash was received in the current period as compared to the prior period.
Mortgage loan and interest expense was $992,000 for the nine months ended September 30, 2010. This represents a decrease of $616,000 as compared to the prior period expense of $1,608,000. The decrease is due to the modification of the Mercer Crossing/Travelers land loan, lowering the interest rate for the interest expenses incurred in the current period.
Earnings from unconsolidated subsidiaries and investees relate to IOTa™s 10.0% investment in TCI Eton Square, LP. This investment is accounted for under the equity method and recognizes its portion of the current period earnings.
Discontinued operations consist of an office building and a shopping center that were sold in 2009. As of September 30, 2010, there were no properties held for sale, sold during the nine months ended September 30, 2010 or sold subsequent to that date.
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 Companya™s website at [ www.incomeopp-realty.com ].
| INCOME OPPORTUNITY REALTY INVESTORS, INC | ||||||||||||||||
| STATEMENTS OF OPERATIONS | ||||||||||||||||
| (unaudited) | ||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| (dollars in thousands, except share and per share amounts) | ||||||||||||||||
| Revenues: | ||||||||||||||||
| Rental and other property revenues | $ | 110 | $ | 69 | $ | 236 | $ | 208 | ||||||||
| Expenses: | ||||||||||||||||
| Property operating expenses | 30 | 53 | 117 | 149 | ||||||||||||
| Depreciation and amortization | - | 13 | - | 39 | ||||||||||||
| General and administrative | 71 | 31 | 250 | 179 | ||||||||||||
| Advisory fee to affiliates | 216 | 213 | 650 | 660 | ||||||||||||
| Total operating expenses | 317 | 310 | 1,017 | 1,027 | ||||||||||||
| Operating loss | (207 | ) | (241 | ) | (781 | ) | (819 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 512 | 364 | 1,842 | 1,115 | ||||||||||||
| Mortgage and loan interest | (329 | ) | (507 | ) | (992 | ) | (1,608 | ) | ||||||||
| Earnings from unconsolidated subsidiaries and investees | (8 | ) | - | (5 | ) | - | ||||||||||
| Total other income (expenses) | 175 | (143 | ) | 845 | (493 | ) | ||||||||||
| Income (loss) before gain on land sales, non-controlling interest, and taxes | (32 | ) | (384 | ) | 64 | (1,312 | ) | |||||||||
| Income (loss) from continuing operations before tax | (32 | ) | (384 | ) | 64 | (1,312 | ) | |||||||||
| Income tax benefit (expense) | - | (5 | ) | 48 | 56 | |||||||||||
| Net income (loss) from continuing operations | (32 | ) | (389 | ) | 112 | (1,256 | ) | |||||||||
| Discontinued operations: | ||||||||||||||||
| Income (loss) from discontinued operations | - | (15 | ) | - | 159 | |||||||||||
| Income tax benefit (expense) from discontinued operations | - | 5 | - | (56 | ) | |||||||||||
| Net income (loss) from discontinued operations | - | (10 | ) | - | 103 | |||||||||||
| Net income (loss) | (32 | ) | (399 | ) | 112 | (1,153 | ) | |||||||||
| Earnings per share - basic | ||||||||||||||||
| Income (loss) from continuing operations | $ | (0.01 | ) | $ | (0.09 | ) | $ | 0.03 | $ | (0.30 | ) | |||||
| Discontinued operations | - | - | - | 0.02 | ||||||||||||
| Net income (loss) applicable to common shares | $ | (0.01 | ) | $ | (0.09 | ) | $ | 0.03 | $ | (0.28 | ) | |||||
| Earnings per share - diluted | ||||||||||||||||
| Income (loss) from continuing operations | $ | (0.01 | ) | $ | (0.09 | ) | $ | 0.03 | $ | (0.30 | ) | |||||
| Discontinued operations | - | - | - | 0.02 | ||||||||||||
| Net income (loss) applicable to common shares | $ | (0.01 | ) | $ | (0.09 | ) | $ | 0.03 | $ | (0.28 | ) | |||||
| Weighted average common share used in computing earnings per share | 4,168,214 | 4,168,214 | 4,168,214 | 4,168,214 | ||||||||||||
| Weighted average common share used in computing diluted earnings per share | 4,168,214 | 4,168,214 | 4,168,214 | 4,168,214 | ||||||||||||
| INCOME OPPORTUNITY REALTY INVESTORS, INC. | ||||||||
| BALANCE SHEETS | ||||||||
| (unaudited) | ||||||||
| September 30, | December 31, | |||||||
| 2010 | 2009 | |||||||
| (dollars in thousands, except share and par value amounts) | ||||||||
| Assets | ||||||||
| Real estate land holdings, at cost | $ | 29,561 | $ | 29,503 | ||||
| Total real estate | 29,561 | 29,503 | ||||||
| Notes and interest receivable from related parties | 36,446 | 38,818 | ||||||
Less allowance for doubtful accounts | (1,826 | ) | (1,826 | ) | ||||
| Total notes and interest receivable | 34,620 | 36,992 | ||||||
| Cash and cash equivalents | 4 | 2 | ||||||
| Investments in unconsolidated subsidiaries and investees | 87 | 92 | ||||||
| Receivable and accrued interest from related parties | 49,014 | 46,676 | ||||||
| Other assets | 2,241 | 2,400 | ||||||
| Total assets | $ | 115,527 | $ | 115,665 | ||||
| Liabilities and Shareholdersa™ Equity | ||||||||
| Liabilities: | ||||||||
| Notes and interest payable | $ | 36,783 | $ | 37,080 | ||||
| Deferred revenue (from sales to related parties) | 6,550 | 6,550 | ||||||
| Accounts payable and other liabilities | 388 | 341 | ||||||
| 43,721 | 43,971 | |||||||
| Commitments and contingencies: | ||||||||
| Shareholdersa™ equity: | ||||||||
| Common stock, $.01 par value, authorized 10,000,000 shares; issued 4,173,675 shares in 2010 and 2009 | 42 | 42 | ||||||
| Treasury stock at cost | (39 | ) | (39 | ) | ||||
| Paid-in capital | 61,955 | 61,955 | ||||||
| Retained earnings | 9,848 | 9,736 | ||||||
| Total shareholders' equity | 71,806 | 71,694 | ||||||
| Total liabilities and shareholders' equity | $ | 115,527 | $ | 115,665 | ||||
