Attached files
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| 8-K - INCOME OPPORTUNITY - INCOME OPPORTUNITY REALTY INVESTORS INC /TX/ | iot8k051515.htm |
EXHIBIT "99.1"
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NEWS RELEASE
FOR IMMEDIATE RELEASE
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Contact:
Income Opportunity Realty Investors, Inc.
Investor Relations (800) 400-6407
investor.relations@incomeopp-realty.com
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Income Opportunity Realty Investors, Inc. Reports First Quarter 2015 Results
DALLAS (May 13, 2015) Income Opportunity Realty Investors, Inc. (NYSE MKT: IOT), a Dallas-based real estate investment company, today reported results of operations for the first quarter ended March 31, 2015. For the three months ended March 31, 2015, the Company reported net income of $0.6 million or $0.13 per share for the period ended March 31, 2015, as compared to net income of $0.6 million or $0.13 per share for the same period ended 2014.
Our primary business is investing in real estate and mortgage note receivables. Land held for development or sale is our sole operating segment. The Company has invested in over 170 acres of land held for development or sale in the Mercer Crossing development located in Farmers Branch, Texas. The Mercer Crossing development is a 1,200 acre assembly of properties at the demographic center of the Dallas — Fort Worth Metroplex. Surrounded by three major highways and adjacent to current and future public transportation systems, Mercer Crossing is in a prime location for future growth and development.
The principal source of revenue for the Company is interest income on over $25.4 million of mortgage note receivables due from related parties. During the three months ended March 31, 2015 and 2014, these notes generated $0.7 million of interest income, respectively.
Operating expenses of $174,000 were $12,000 higher in the current period as compared with the equivalent prior period ending March 31, 2014, due to an increase in legal and professional fees. Additionally, Advisory Fees paid to related parties of $175,000 were $10,000 higher in the current period as compared with the equivalent prior period ending March 31, 2014, due to an increase in the gross asset values of our portfolio.
Interest expense of $165,000 was $19,000 less in the current period as compared with the equivalent prior period ending March 31, 2014, due to principal payments made in prior periods, thereby requiring less interest to be paid on our debt obligation for the three months ended March 31, 2015.
About Income Opportunity Realty Investors, Inc.
Income Opportunity Realty Investors, Inc., a Dallas-based real estate investment company, holds a portfolio of equity real estate in Texas, including undeveloped land. The Company invests in real estate through direct equity ownership and partnerships. For more information, visit the Company's website at www.incomeopp-realtv.com.
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INCOME OPPORTUNITY REALTY INVESTORS, INC.
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(unaudited)
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For the Three Months Ended
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March 31,
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2015
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2014
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(dollars in thousands, except
per share amounts)
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Revenues:
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Rental and other property revenues
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$ | - | $ | - | ||||
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Expenses:
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Property operating expenses (including $7 and $14 for the three months ended 2015 and
2014, respectively, from related parties)
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7 | 18 | ||||||
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General and administrative (including $68 and $64 for the three months ended 2015 and
2014, respectively, from related parties)
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174 | 162 | ||||||
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Net income fee to related party
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45 | 45 | ||||||
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Advisory fee to related party
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175 | 165 | ||||||
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Total operating expenses
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401 | 390 | ||||||
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Net operating loss
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(401 | ) | (390 | ) | ||||
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Other income (expenses):
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Interest income from related parties
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1,120 | 1,133 | ||||||
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Mortgage and loan interest
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(165 | ) | (184 | ) | ||||
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Total other income
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955 | 949 | ||||||
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Net income from continuing operations before tax
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554 | 559 | ||||||
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Income tax expense
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- | - | ||||||
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Net income from continuing operations
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554 | 559 | ||||||
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Net income
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$ | 554 | $ | 559 | ||||
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Earnings per share - basic
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Net income from continuing operations
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$ | 0.13 | $ | 0.13 | ||||
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Net income applicable to common shares
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$ | 0.13 | $ | 0.13 | ||||
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Earnings per share - diluted
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Net income from continuing operations
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$ | 0.13 | $ | 0.13 | ||||
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Net income applicable to common shares
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$ | 0.13 | $ | 0.13 | ||||
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Weighted average common shares used in computing earnings per share
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4,168,214 | 4,168,214 | ||||||
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Weighted average common shares used in computing diluted earnings per share
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4,168,214 | 4,168,214 | ||||||
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INCOME OPPORTUNITY REALTY INVESTORS, INC.
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CONSOLIDATED BALANCE SHEETS
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(unaudited)
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March 31,
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December 31,
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2015
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2014
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(dollars in thousands, except
par value amount)
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Assets
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Real estate land holdings, at cost
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$ | 25,717 | $ | 25,717 | ||||
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Total real estate
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25,717 | 25,717 | ||||||
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Notes and interest receivable from related parties
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26,142 | 27,461 | ||||||
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Less allowance for doubtful accounts
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(1,826 | ) | (1,826 | ) | ||||
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Total notes and interest receivable
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24,316 | 25,635 | ||||||
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Cash and cash equivalents
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3 | 7 | ||||||
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Receivable and accrued interest from related parties
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42,193 | 40,460 | ||||||
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Other assets
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1,245 | 1,257 | ||||||
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Total assets
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$ | 93,474 | $ | 93,076 | ||||
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Liabilities and Shareholders’ Equity
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Liabilities:
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Notes and interest payable - related parties
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$ | 10,025 | $ | 10,240 | ||||
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Accounts payable and other liabilities
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96 | 37 | ||||||
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Total liabilities
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10,121 | 10,277 | ||||||
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Shareholders’ equity:
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Common stock, $0.01 par value, authorized 10,000,000; issued 4,173,675 and
outstanding 4,168,214 shares in 2015 and 2014
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42 | 42 | ||||||
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Treasury stock at cost, 5,461 shares in 2015 and 2014
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(39 | ) | (39 | ) | ||||
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Paid-in capital
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61,955 | 61,955 | ||||||
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Retained earnings
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21,395 | 20,841 | ||||||
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Total shareholders' equity
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83,353 | 82,799 | ||||||
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Total liabilities and shareholders' equity
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$ | 93,474 | $ | 93,076 | ||||