The accompanying notes are an integral part of these financial statements.

INCOME OPPORTUNITY REALTY INVESTORS, INC.

STATEMENTS OF CASH FLOWS

(unaudited)

The accompanying notes are an integral part of these financial statements.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION

Organization

As used herein, the terms “IOT,” “the Company,” “we,” “our,” “us” refer to Income Opportunity Realty Investors, Inc. (“IOT”, “We”, “Us”, “Our” or “the Company”) a Nevada corporation, individually or together with its subsidiaries. Income Opportunity Realty Investors, Inc. is the successor to a California business trust organized on December 14, 1984. The Company invests in equity interests in real estate through acquisitions, leases and partnerships and in mortgage loans.1984, which commenced operations on April 10, 1985. The Company is headquartered in Dallas, Texas and its Common Stockcommon stock trades on the American Stock Exchange under the symbol “IOT.”

Syntek West, Inc. (“SWI”), an affiliated entity, owned approximately 60.4% of the Company’s outstanding stock until July 16, 2009.“IOT”.

On July 17, 2009, Transcontinental Realty Investors, Inc. (“TCI”), acquired from Syntek West, Inc., (“SWI”), 2,518,934 shares of common stock, par value $0.01 per share of Income Opportunity Realty Investors, Inc. (“IOT”)IOT at an aggregate price of $17,884,431 (approximately $7.10 per share), the full amount of which was paid by TCI through an assumption of an aggregate amount of indebtedness of $17,884,431 on the outstanding balance owed by SWI to IOT. The 2,518,934 shares of IOT common stock acquired by TCI constituted approximately 60.4% of the issued and outstanding common stock of IOT. TCI has owned, for several years, an aggregate of 1,037,184 shares of common stock of IOT (approximately 25% of the issued and outstanding stock). After giving effect to the transaction on July 17, 2009, TCI owns an aggregate of 3,556,118 shares of IOT common stock which constitutes approximately 85.3% of the shares of common stock of IOT outstanding (which is a total of 4,168,214 shares). Shares of IOT are traded on the American Stock Exchange.

SWI served as the Company’s external advisor until July 1, 2009. Effective July 1, 2009, the Advisory Agreement and the Cash Management Agreement with Syntek waswere terminated. IOT has engaged Prime Income Asset Management, LLC (“Prime”) as our ExternalContractual Advisor and Cash Manager under the substantially same terms as under the SWI Agreement. Prime also serves as an Advisor and Cash Manager to TCI and American Realty Investors, Inc. (“ARL”). We are an externally advised and managed real estate company. We have no employees.

Properties

At September 30, 2009,Our primary business is investing in real estate. We divested ourselves of our commercial segment with the Company owned or had owned interests in ansale of the 2010 Valley View office building aand the Parkway Centre retail shopping center 18.59in October 2009, resulting in land held for development or sale remaining as our sole operating segment. As of March 31, 2010, our land consisted of 203.31 acres of land held for future development which includesor sale. There is a warehouse currently beinglocated on one of the land parcels that is used for storage and 184.72 acresstorage. All of undeveloped land.our land holdings are located in Texas.

Basis of presentation

The accompanying interim financial statements are unaudited; however, theunaudited financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States, of America for interim financial information andor GAAP, have been condensed or omitted in conjunctionaccordance with thesuch rules and regulations, of the Securities and Exchange Commission. Accordingly, they do not include all ofalthough management believes the disclosures required by accounting principles generally accepted inare adequate to prevent the United States of America for complete financial statements.information presented from being misleading. In the opinion of management, all adjustments (consisting solely of normal recurring matters) considered necessary for a fair statement of the financial statements for these interim periodspresentation have been included. The results of operations for the interim periodsthree months ended March 31, 2010, are not necessarily indicative of the results tothat may be obtainedexpected for other interim periods or for the full fiscal year.

The yearend consolidated balance sheet datayear-end Balance Sheet at December 31, 2009, was derived from the audited financial statements at that date, but does not include all disclosureof the information and disclosures required by accounting principles generally accepted inGAAP for complete financial statements. For further information, refer to the United States of America. These financial statements should be read in conjunction with the Company’s financial statements and notes thereto containedincluded in the Company’s Annual Report in the Company’son Form 10-K for its fiscalthe year ended December 31, 2008.

Dollar amounts in tables are in thousands, except per share amounts.

2009. Certain prior period2009 financial statement amounts have been reclassified to conform to current periodthe 2010 presentation, and to reflectincluding adjustments for discontinued operations.

Newly issued accounting standardsPrinciples of consolidation

The accompanying financial statements include the accounts of the Company, its subsidiaries, generally all of which are wholly-owned, and all entities in which the Company has a controlling interest. Arrangements that are not controlled through voting or similar rights are accounted for as a Variable Interest Entity (VIE), in accordance with the provisions and guidance of ASC Topic 810 “Consolidation”, whereby we have determined that we are a primary beneficiary of the VIE and meet certain criteria of a sole general partner or managing member as identified in accordance with Emerging Issues Task Force (“EITF”) Issue 04-5, Investor’s Accounting for an Investment in a Limited Partnership when the Investor is the Sole General Partner and the Limited Partners have Certain Rights (“EITF 04-5”). VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders as a group lack adequate decision making ability, the obligation to absorb expected losses or residual returns of the entity, or have voting rights that are not proportional to their economic interests. The primary beneficiary generally is the entity that provides financial support and bears a majority of the financial risks, authorizes certain capital transactions, or makes operating decisions that materially affect the entity’s financial results. All significant intercompany balances and transactions have been eliminated in consolidation.

In June 2009,determining whether we are the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update No. 2009-01 (“ASU No. 2009-01”) was issued to amend topic Accounting Standard Codification 105 (“ASC 105”) “Generally Accepted Accounting Principles” an amendment based on Statement of Financial Accounting Standard No. 168 “the FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles”. This amendment establishes the “FASB Accounting Standards Codification” (“Codification”) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with GAAP. Rules and interpretive releases of the Securities and Exchange Commission (SEC) under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. The Codification is effective for interim and annual periods ending on or after September 15, 2009.

On January 1, 2009, the FASB issued SFAS No. 160 now referred to as ASC 810 “Consolidations”. The statement is to establish accounting and reporting standards for the non-controlling interest in a subsidiary and for the deconsolidationprimary beneficiary of a subsidiary. This standard defines a non-controlling interest, previously called a minority interest, as the portion of equity in a subsidiaryVIE, we consider qualitative and quantitative factors, including, but not

attributable, directlylimited to: the amount and characteristics of our investment; the obligation or indirectly,likelihood for us or other investors to provide financial support; our and the other investors’ ability to control or significantly influence key decisions for the VIE; and the similarity with and significance to the business activities of us and the other investors. Significant judgments related to these determinations include estimates about the current future fair values and performance of real estate held by these VIEs and general market conditions. As of March 31, 2010, IOT is not the primary beneficiary of a parent. It requires, among other items, thatVIE.

For entities in which we have less than a non-controllingcontrolling financial interest or entities where we are not deemed to be the primary beneficiary, the entities are accounted for using the equity method of accounting. Accordingly, our share of the net earnings or losses of these entities is included in net income. Our investment in Eton Square is accounted for under the consolidated statementequity method.

Real estate, depreciation, and impairment

Real estate assets are stated at the lower of financial position within equity separatedepreciated cost or fair value, if deemed impaired. Major replacements and betterments are capitalized and depreciated over their estimated useful lives. Depreciation is computed on a straight-line basis over the useful lives of the properties (buildings and improvements – 10-40 years; furniture, fixtures and equipment – 5-10 years). We continually evaluate the recoverability of the carrying value of our real estate assets using the methodology prescribed in ASC Topic 360, “Property, Plant and Equipment”. Factors considered by management in evaluating impairment of our existing real estate assets held for investment include significant declines in property operating profits, annually recurring property operating losses and other significant adverse changes in general market conditions that are considered permanent in nature. Under ASC Topic 360, a real estate asset held for investment is not considered impaired if the undiscounted, estimated future cash flows of an asset (both the annual estimated cash flow from future operations and the estimated cash flow from the parent’s equity; consolidatedtheoretical sale of the asset) over its estimated holding period are in excess of the asset’s net incomebook value at the balance sheet date. If any real estate asset held for investment is considered impaired, a loss is provided to be reported at amounts inclusivereduce the carrying value of both the parent’sasset to its estimated fair value.

Real estate held for sale

We periodically classify real estate assets as held for sale. An asset is classified as held for sale after the approval of our board of directors and non-controlling interest’s shares and, separately,after an active program to sell the amountsasset has commenced. Upon the classification of consolidated net income attributablea real estate asset as held for sale, the carrying value of the asset is reduced to the parent and non-controlling interest alllower of its net book value or its estimated fair value, less costs to sell the asset. Subsequent to the classification of assets as held for sale, no further depreciation expense is recorded. Real estate assets held for sale are stated separately on the consolidated statementaccompanying Balance Sheets. Upon a decision to no longer market as an asset for sale, the asset is classified as an operating asset and depreciation expense is reinstated. The operating results of operations;real estate assets held for sale and if a subsidiary is deconsolidated, any retained non-controlling equity investmentsold are reported as discontinued operations in the former subsidiary be measured at fair valueaccompanying statements of operations. Income from discontinued operations includes the revenues and expenses, including depreciation and interest expense, associated with the assets. This classification of operating results as discontinued operations applies retroactively for all periods presented. Additionally, gains and losses on assets designated as held for sale are classified as part of discontinued operations.

Cost capitalization

Costs related to planning, developing, leasing and constructing a gain or loss be recognizedproperty are capitalized and classified as real estate in net incomethe balance sheet. We capitalize interest to qualifying assets under development based on such fair value. The presentationaverage accumulated expenditures outstanding during the period. In capitalizing interest to qualifying assets, we first use the interest incurred on specific project debt, if any, and disclosure requirements were applied retrospectively. Other thannext use the change in presentationweighted average interest rate of non-controlling interests, the adoption had no impactnon-project specific debt.

We capitalize interest, real estate taxes and certain operating expenses on the Financial Statements.unoccupied portion of recently completed properties from the date a project receives its certificate of occupancy to the date on which the project achieves 80% economic occupancy.

In April 2009,We capitalize leasing costs which include commissions paid to outside brokers, legal costs incurred to negotiate and document a lease agreement and any internal costs that may be applicable. We allocate these costs to individual tenant leases and amortize them over the FASB issued FSP FAS No. 157-4 now referred to asrelated lease term.

Fair value measurement

We apply the guidance in ASC Topic 820, “Fair Value Measurements and Disclosures”, which provides additional guidance for applyingto the valuation of real estate assets. These provisions that define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderlya transaction between market participants under current market conditions. It requiresat the measurement date, establish a hierarchy that prioritizes the information used in developing fair value estimates and require disclosure of fair value measurements by level within the fair value hierarchy. The hierarchy gives the highest priority to quoted prices in active markets (Level 1 measurements) and the lowest priority to unobservable data (Level 3 measurements), such as the reporting entity’s own data.

The valuation hierarchy is based upon the transparency of inputs to the valuation of an evaluation of whether there has been a significant decrease in the volume and level of activity for the asset or liability in relationas of the measurement date

and includes three levels defined as follows:

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to normal market activity for the asset or liability. If there has been a change, transactions or quoted prices may not be indicative of fair value measurement.

Newly issued accounting pronouncements

We have considered all other newly issued accounting guidance that is applicable to our operations and a significant adjustment may need to be made to those prices to estimate fair value. Additionally, an entity must consider whether the observed transaction was orderly (that is,preparation of our statements, including that which we have not distressed or forced). If the transaction was orderly, the obtained price can be considered a relevant observable input for determining fair value. If the transaction isyet adopted. We do not orderly, other valuation techniques must be used when estimating fair value. It was applied prospectively for interim periods ending after June 15, 2009.

In April 2009, the FASB issued FSP FAS No 107-1 and Accounting Principles Board (APB) No. 28-1 now referred to as ASC 825-10-50 “Disclosure about Fair Value of Financial Instruments”. It required disclosures about fair value of financial instruments in interim financial statements, in addition to the annual financial statements as already required andbelieve that any such guidance will be required for interim periods ending after June 15, 2009. The application of this standard will not have a material impacteffect on our financial statements.

In April 2009, the FASB issued FSP FAS No. 115-2 and FAS No. 124-2 “Recognition and Presentationposition or results of Other-Than-Temporary Impairments”. The standard establishes a different other-than-temporary impairment indicator for debt securities than previously prescribed. If it is more likely than not that an impaired security will be sold before the recovery of its cost basis, either due to the investor’s intent to sell or because it will be required to sell the security, the entire impairment is recognized in earnings. Otherwise, only the portion of the impaired debt security related to estimated credit losses is recognized in earnings, while the remainder of the impairment is recorded in other comprehensive income and recognized over the remaining life of the debt security. In addition, the standard expands the presentation and disclosure requirements for other-than-temporary-impairments for both debt and equity securities. It was applied prospectively for interim periods ending after June 15, 2009.operation.

In May 2009, the FASB issued SFAS No. 165 now referred to as ASC 855 “Subsequent Events”, which establishes general standards of accounting and disclosure of events that occur after the balance sheet date but before the financial statements are issued or available to be issued. It was applied prospectively for interim periods ending after June 15, 2009.

In June 2009, the FASB issued SFAS No. 166 “Accounting for Transfers of Financial Assets - an amendment of FASB Statement No. 140”, to improve the relevance, representational faithfulness and comparability of the information that a reporting entity provides in its financial statements about a transfer of financial assets; the effects of a transfer on its financial position, financial performance and cash flows and a transferor’s continuing involvement, if any, in transferred financial assets. This Statement must be applied as of the beginning of each reporting entity’s first annual reporting period that begins after November 15, 2009. Additionally, on and after the effective date, the concept of a qualified special-purpose entity is no longer relevant for accounting purposes.

NOTE 2. REAL ESTATE ACTIVITY

The highlight of our significant real estate transactions forThere were no property sales or acquisitions during the ninethree months ended September 30, 2009 are listed below.

In September 2009, we sold 15.06March 31, 2010. Our properties consist of 203.31 acres of Travelers land located in Farmers Branch, Texasheld for a sales price of $6.9 million. We received $6.9 million in cash. In addition, we recorded a deferred gain on sale of $4.9 million on the property sold to a related party. A gain will be recognized when the property is sold to a third party.future development or sale.

NOTE 3. DISCONTINUED OPERATIONS

The Company appliesWe apply the provisions of SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets. “ SFAS No. 144ASC Topic 360, “Property, Plant and Equipment”, which requires that long-lived assets that are to be disposed of by sale be measured at the lesser of (1) book value or (2) fair value less cost to sell. In addition, it requires that one accounting model be used for long-lived assets to be disposed of by sale and broadens the presentation of discontinued operations to include more disposal transactions.

Income from discontinued operations includes seven propertiesconsists of an office building and a shopping center that were sold in 2008. There was also a commercial building and shopping center2009. As of March 31, 2010 there were no properties held for sale, as of September 30, 2009. The discontinued operations forsold during the three and nine months ended 2008 includes the gain on sale of the properties previously sold.March 31, 2010 or sold subsequent to that date. The following table summarizes income from discontinued operations (dollars in thousands).

The Company’sOur application of SFAS No. 144ASC Topic 360 results in the presentation of the net operating results of these qualifying properties sold or held for sale as of September 30, 2009during 2010 as income from discontinued operations. The applicationIt only impacts the presentation of SFAS No. 144these properties within the Statements of Operations and does not have an impact on net income available to common shareholders. SFAS No. 144 only impacts the presentation of these properties within the Consolidated Statements of Operation.

NOTE 4. NOTES AND INTEREST RECEIVABLE AFFILIATED

The notes receivable consists of twelve notes aggregating $39.0$38.7 million, including accrued interest. The notes accrue interest ranging from Primeprime + 2% to 12.00% with maturity dates ranging from December 2009September 2010 to September 2014. The notes are primarily excess cash flow notes. The allowance on the notes was a purchase allowance that was netted against the notes when acquired (dollars in thousands).:

NOTE 5. NOTES AND INTEREST PAYABLE

The following table lists the mortgage notes payable as of September 30, 2009March 31, 2010 (dollars in thousands):

Project		Maturity			Principal Balance
2010 Valley View		05/22/12			$	2,030		(1	)
Centura Land		09/18/14				6,900
Eagle Crest		11/01/11				2,393
Parkway Center		06/01/36				2,616		(1	)
Travelers Land		08/10/09	(3)			27,994		(2	)
Accrued interest						153
					$	42,086

⁽¹⁾ Held for sale as of September 30, 2009.

⁽²⁾* This mortgage note represents the allocation of a note with an aggregate outstanding balance of $36.5$36.0 million as of September 30, 2009.March 31, 2010. The remaining balance of this note of $8.5$8.4 million is held on the books of TCI,Transcontinental Realty Investors, Inc., an affiliated entity. As a joint grantor of the mortgage loan, we have joint and several liability of the obligations and liabilities of the loan in its entirety, which include but are not limited to payment of all unpaid and accrued interest and principal for the entire outstanding loan balance.

⁽³⁾ Renegotiating loan

NOTE 6. ADVISORY AGREEMENT

The Company had an Advisory Agreement with Syntek West, Inc. (“SWI”) until July 1, 2009. Effective July 1, 2009, the agreement with Syntek was terminated and an advisory agreement was entered into with Prime on substantially the same terms as the agreement with Syntek. The Advisor is responsible for the Company’s day-to-day operations. The Advisor must formulate and submit to IOT’s Board of Directors for approval an annual budget and business plan containing a twelve-month forecast of operations and cash flow with a general plan for asset sales and purchases, borrowing activity and other investments. The Advisor reports to the Board quarterly on IOT’s performance against the business plan. The Advisory Agreement further placed The Advisor in a fiduciary relationship to IOT’s stockholders and contains a broad standard governing the Advisor’s liability for any losses incurred by IOT.

The Advisor receives, as compensation for its management and advice, monthly advisory fees based on 0.0625% of IOT’s assets annually as well as specific fees for assisting IOT in obtaining financing and completing acquisitions. If IOT’s operating expenses exceed limits specified in the Advisory Agreement, The Advisor is obligated to refund a portion of the advisory fees. The Advisor also receives a net income fee calculated as 7.50% of IOT’s net income.

The Company and SWI entered into a Cash Management Agreement to further define the administration of the Company’s day-to-day investment operations, relationship contacts, flow of funds and deposit and borrowing of funds. Effective July 1, 2009, the Advisory Agreement and the Cash Management Agreement with Syntek was terminated. IOT has engaged Prime as Cash Manager under the substantially same terms as under the SWI Agreement. Under the Cash Management Agreement, all funds of the Company are delivered to the Cash Manager which has a deposit liability to the Company and is responsible for investment of all excess funds, which earn interest at theWall Street Journal Prime rate plus one percent per annum, set quarterly on the first day of each calendar quarter. Borrowings for the benefit of the Company bear the same interest rate. The Cash Management Agreement and the Advisory Agreement are automatically renewed each year unless terminated by either party.

Prime also serves as an advisor and cash manager to TCI and ARL.

Revenues, fees, interest on cash advances and cost reimbursements to SWI and Prime (dollars in thousands):

NOTE 7.6. RECEIVABLE FROM AND PAYABLE TO AFFILIATES

From time to time, IOT and its affiliates and related parties have made unsecured advances to each other which include transactions involving the purchase, sale, and financing of property. In addition, we have a cash management agreement with our advisor. The agreement provides for excess cash to be invested in and managed by our cash management advisor Prime, as of July 1, 2009, an affiliated entity. The table below reflects the various transactions between affiliatesIOT, Prime, and TCI (dollars in thousands).:

* Arcadian Energy, Inc. was formerly known as International Health Products, Inc.

NOTE 8.7. OPERATING SEGMENTS

The Company’sOur segments are based on the Company’sour method of internal reporting which classifies itsour operations by property type. The Company’sOur segments are commercial, apartments, land and other. Significant differences between and among the accounting policies of the operating segments as compared to the Consolidated Financial Statements principally involve the calculation and allocation of administrative expenses. Management evaluates the performance of each of the operating segments and allocates resources to them based on their operating income and cash flow. There are no intersegment revenues and expenses and IOT conducted all of its business within the United States.

Presented below is operating segment information for the three and nine months ended September 30,March 31, 2010 and 2009 and 2008 (dollars in thousands):

		Commercial
For the Three Months Ended September 30, 2009		Properites				Apartments				Land				Other				Total
Operating revenue		$	-			$	-			$	68			$	-			$	68
Operating expenses			-				-				50				15				65
Depreciation and amortization			-				-				-				-				-
Mortgage and loan interest			-				-				507				-				507
Interest income			-				-				-				364				364
Gain on land sales			-				-				-				-				-
Segment operating income (loss)		$	-			$	-			$	(503	)		$	363			$	(140	)
Capital expenditures			-				-				-				-				-
Assets			-				-				29,504				-				29,504
Property Sales
Sales price		$	-			$	-			$	6,891			$	-			$	6,891
Cost of sale			-				-				1,972				-				1,972
Deferred current gain			-				-				4,919				-				4,919
Recognized prior deferred gain			-				-				-				-				-
Gain on sale		$	-			$	-			$	-			$	-			$	-
		Commercial
		Properites				Apartments				Land				Other				Total
For the Three Months Ended September 30, 2008
Operating revenue		$	-			$	-			$	86			$	29			$	115
Operating expenses			-				-				25				(3	)			22
Depreciation and amortization			-				-				12				-				12
Mortgage and loan interest			-				-				557				18				575
Interest income			-				-				-				485				485
Gain on land sales			-				-				-				-				-
Segment operating income (loss)		$	-			$	-			$	(508	)		$	499			$	(9	)
Capital expenditures			-				-				-				-				-
Assets			-				-				37,082				-				37,082
Property Sales
Sales price		$	-			$	-			$	-			$	-			$	-
Cost of sale			-				-				-				-				-
Deferred current gain			-				-				-				-				-
Recognized prior deferred gain			-				-				-				-				-
Gain on sale		$	-			$	-			$	-			$	-			$	-
The tables below reconcile the segment information to the corresponding amounts in the Consolidated Statements of Operations:
		For the Three Months Ended
		Sep-09				Sep-08
Segment operating loss		$	(140	)		$	(9	)
Other non- segment items of income (expense)
General and administrative			(31	)			(4	)
Gain on involuntary coversion			-				7,434
Equity in income of investee			-				(2	)
Advisory fee			(213	)			(218	)
Net income fee to affiliate			-				(1,055	)
Deferred tax benefit (expense)			(5	)			86
Income (loss) from continuing operations		$	(389	)		$	6,232
SEGMENT ASSET RECONCILIATION TO TOTAL ASSETS
		For the Three Months Ended
		Sep-09				Sep-08
Segment assets		$	29,504			$	37,082
Investments in real estate partnerships			74				98
Other assets and receivables			82,698				81,681
Assets held for sale			5,375				-
Total assets		$	117,651			$	118,861

The table below reconciles the segment information to the corresponding amounts in the Statements of Operations:

		Commercial
For the Nine Months Ended September 30, 2009		Properites				Apartments				Land				Other			Total
Operating revenue		$	-			$	-			$	208			$	-		$	208
Operating expenses			-				-				139				9			148
Depreciation and amortization			-				-				40				-			40
Mortgage and loan interest			-				-				1,608				-			1,608
Interest income			-				-				-				1,115			1,115
Gain on land sales			-				-				-				-			-
Segment operating income (loss)		$	-			$	-			$	(1,579	)		$	1,106		$	(473	)
Capital expenditures			-				-				-				-			-
Assets			-				-				29,504				-			29,504
Property Sales
Sales price		$	-			$	-			$	6,891			$	-		$	6,891
Cost of sale			-				-				1,972				-			1,972
Deferred current gain			-				-				4,919				-			4,919
Recognized prior deferred gain			-				-				-				-			-
Gain on sale		$	-			$	-			$	-			$	-		$	-
		Commercial
		Properites				Apartments				Land				Other			Total
For the Nine Months Ended September 30, 2008
Operating revenue		$	-			$	-			$	218			$	29		$	247
Operating expenses			-				-				328				-			328
Depreciation and amortization			-				-				36				-			36
Mortgage and loan interest			-				-				2,395				-			2,395
Interest income			-				-				-				2,019			2,019
Gain on land sales			-				-				-				-			-
Segment operating income (loss)		$	-			$	-			$	(2,541	)		$	2,048		$	(493	)
Capital expenditures			-				-				-				-			-
Assets			-				-				37,082				-			37,082
Property Sales
Sales price		$	-			$	49,563			$	-			$	-		$	49,563
Cost of sale			-				19,774				-				-			19,774
Deferred current gain			-				-				-				-			-
Recognized prior deferred gain			-				-				-				-			-
Gain on sale		$	-			$	29,789			$	-			$	-		$	29,789
The tables below reconcile the segment information to the corresponding amounts in the Consolidated Statements of Operations:
		For the Nine Months Ended
		Sep-09				Sep-08
Segment operating loss		$	(473	)		$	(493	)
Other non- segment items of income (expense)
General and administrative			(189	)			(275	)
Gain on involuntary coversion			-				7,434
Equity in income of investee			-				(434	)
Advisory fee			(660	)			(667	)
Net income fee to affiliate			-				(873	)
Deferred tax benefit			66				7,538
Income (loss) from continuing operations		$	(1,256	)		$	12,230
SEGMENT ASSET RECONCILIATION TO TOTAL ASSETS
		For the Nine Months Ended
		Sep-09				Sep-08
Segment assets		$	29,504			$	37,082
Investments in real estate partnerships			74				98
Other assets and receivables			82,698				81,681
Assets held for sale			5,375				-
Total assets		$	117,651			$	118,861