(Source: Business Wire)
Income Opportunity Realty Investors, Inc. (AMEX:IOT), a Dallas-based
real estate investment company, today reported a net loss applicable to
common shares of ($1.2) million or ($0.27) per diluted earnings per
share for the nine months ended September 30, 2009, as compared to a net
income of $26.2 million or $6.30 per diluted earnings per share which
includes a $29.8 million gain on sale from discontinued operations
before tax expense for the same period ended 2008.
Our net loss applicable to common shares for the three months ended
September 30, 2009 was ($399,000) or ($.09) per diluted earnings per
shares as compared to a net income of $6.4 million or $1.54 diluted
earnings per share for the same period ended 2008.
Results of operations for the three months ended September 30,
2009 as compared to the same period ended 2008
Rental and other property revenues decreased $47,000 due to an $18,000
decrease within our storage property and in other miscellaneous income
fees in 2008 of $29,000.
Property operating expenses increased by $43,000 as compared to the same
period ended 2008. The increase is principally due to a third quarter
refund of prior year's real estate taxes in 2008.
Interest income decreased by $121,000 as compared to the same period
ended 2008. The decrease is due to the receipt of cash on the
receivables from Unified Housing Foundation, Inc. The notes are excess
cash flow notes. Interest on the notes is recorded as cash is received.
Less cash was received in the current period as compared to the prior
period.
Mortgage loan and interest expense decreased by $68,000 as compared to
prior year. The decrease is due to the continued pay down on the
mortgage balance and thus effectively reducing the interest expense.
Gain on involuntary conversion in 2008 was due to insurance proceeds
received from the claim filed for tornado damage incurred.
Discontinued operations relate to seven apartment complexes sold in
2008, an office building and a shopping center held for sale during the
three months ended September 30, 2009.
Results of operations for the nine months ended September 30, 2009
as compared to the same period ended 2008
Rental and other property revenues decreased by $39,000 due to an
increase of $15,000 within our storage property and a decrease of
$54,000 in other miscellaneous fee income.
Property operating expenses decreased by $180,000 as compared to the
same period ended 2008. The decrease is principally due to property tax
refunds received in 2009 for taxes paid in 2008 and electricity was
$10,000 higher in 2008 than 2009.
General and administration expenses decreased by $86,000. The decrease
was due to accounting and professional fees less in 2009.
Interest income decreased by $904,000 as compared to the same period
ended 2008. The decrease is due to the receipt of cash on the
receivables from Unified Housing Foundation, Inc. The notes are excess
cash flow notes. Interest on the notes is recorded as cash is received.
Less cash was received in the current period as compared to the prior
period.
Mortgage loan and interest expense decreased by $787,000 as compared to
the prior year. The decrease is due to the continued pay down on the
mortgage balance and thus effectively reducing the interest expense.
Net income fee to affiliates for 2008 was due to net income and sale of
properties in 2008. No fee is booked in 2009 due to a net loss as of
October 2009.
Gain on involuntary conversion in 2008 was due to insurance proceeds
received from the claim filed for tornado damage incurred.
Discontinued operations relate to seven apartment complexes sold in 2008
and an office building and a shopping center held for sale during the
nine months ended September 30, 2009.
Income Opportunity Realty Investors, Inc., a Dallas-based real
estate investment company, holds a portfolio of equity real estate in
Texas, including office buildings, and undeveloped land. For more
information, go to IOT's website at www.incomeopp-realty.com.
INCOME OPPORTUNITY REALTY INVESTORS, INC.
BALANCE SHEETS
(unaudited)
September 30, December 31,
2009 2008
(dollars in thousands, except share and par value amounts)
Assets
Real estate, at cost $ 29,504 $ 31,765
Less accumulated depreciation - (250 )
Total real estate 29,504 31,515
Real estate held for sale at cost, net of depreciation 5,375 5,427
Notes and interest receivable from related parties 38,971 41,432
Less allowance for doubtful accounts (1,826 ) (1,826 )
Total notes and interest receivable 37,145 39,606
Cash and cash equivalents 108 52
Investments in unconsolidated subsidiaries and investees 74 74
Receivable and accrued interest from related parties 42,082 38,203
Other assets 3,363 676
Total assets $ 117,651 $ 115,553
Liabilities and Shareholders' Equity
Liabilities:
Notes and interest payable $ 37,440 $ 37,618
Liabilities related to assets held for sale 4,646 4,701
Accounts payable and other liabilities 5,944 2,460
48,030 44,779
Commitments and contingencies:
Shareholders' equity:
Common Stock, $.01 par value, authorized 10,000,000 shares; issued 4,173,675 shares in 2009 and 2008 42 42
Treasury Stock at cost (39 ) (39 )
Paid-in capital 61,955 61,955
Retained earnings 7,663 8,816
Total shareholders' equity 69,621 70,774
Total liabilities and equity $ 117,651 $ 115,553
-------------------------------------------------------------------------------
INCOME OPPORTUNITY REALTY INVESTORS, INC
STATEMENTS OF OPERATIONS
(unaudited)
For the Three Months EndedSeptember 30, For the Nine Months EndedSeptember 30,
2009 2008 2009 2008
(dollars in thousands, except share and per share amounts)
Revenues:
Rental and other property revenues $ 68 $ 115 $ 208 $ 247
Expenses:
Property operating expenses 65 22 148 328
Depreciation and amortization - 12 40 36
General and administrative 31 4 189 275
Advisory fee to affiliates 213 218 660 667
Total operating expenses 309 256 1,037 1,306
Operating loss (241 ) (141 ) (829 ) (1,059 )
Other income (expense):
Interest income 364 485 1,115 2,019
Mortgage and loan interest (507 ) (575 ) (1,608 ) (2,395 )
Gain on involuntary conversion - 7,434 - 7,434
Earnings from unconsolidated subsidiaries and investees - (2 ) - (434 )
Net income fee to affiliates - (1,055 ) - (873 )
Total other income (expenses) (143 ) 6,287 (493 ) 5,751
Income (loss) before gain on land sales, non-controlling interest, and taxes (384 ) 6,146 (1,322 ) 4,692
Income (loss) from continuing operations before tax (384 ) 6,146 (1,322 ) 4,692
Income tax benefit (expense) (5 ) 86 66 7,538
Net income (loss) from continuing operations (389 ) 6,232 (1,256 ) 12,230
Discontinued operations:
Income (loss) from discontinued operations (15 ) 248 159 (8,251 )
Gain on sale of real estate from discontinued operations - - - 29,789
Income tax benefit (expense) from discontinued operations 5 (87 ) (56 ) (7,538 )
Net income (loss) (399 ) 6,393 (1,153 ) 26,230
Preferred dividend requirement - - - -
Net income (loss) applicable to common shares $ (399 ) $ 6,393 $ (1,153 ) $ 26,230
Earnings per share - basic
Income (loss) from continuing operations $ (0.09 ) $ 1.50 $ (0.29 ) $ 2.94
Discontinued operations - 0.04 0.02 3.36
Net income (loss) applicable to common shares $ (0.09 ) $ 1.54 $ (0.27 ) $ 6.30
Earnings per share - diluted
Income (loss) from continuing operations $ (0.09 ) $ 1.50 $ (0.29 ) $ 2.94
Discontinued operations - 0.04 0.02 3.36
Net income (loss) applicable to common shares $ (0.09 ) $ 1.54 $ (0.27 ) $ 6.30
Weighted average common share used in computing earnings per share 4,168,214 4,162,574 4,168,214 4,162,640
Weighted average common share used in computing diluted earnings per share 4,168,214 4,162,574 4,168,214 4,162,640
-------------------------------------------------------------------------------
A service of YellowBrix, Inc.
