Exhibit 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE | Contact: Income Opportunity Realty Investors, Inc. Investor Relations (800) 400-6407 investor.relations@primeasset.com |
Income Opportunity Realty Investors, Inc. Reports Fourth Quarter and Full Year 2009 Financial Results
DALLAS (April 1, 2010) Income Opportunity Realty Investors, Inc. (AMEX:IOT), a Dallas-based real estate investment company, today reported results of operations for the year ended December 31, 2009. IOT announced today that the company reported net income applicable to common shares of $920,000 or $0.22 per share for the year ended December 31, 2009, as compared to a net income applicable to common shares of $26.7 million or $6.41 per share for the same period ended 2008. Net income for the last three months ended December 31, 2009 was $2.1 million or $0.49 per share, as compared to prior year net income applicable to common shares of $479,000 or $0.12 per share.
Results of the year ended December 31, 2009 to the year ended December 31, 2008
In 2009, IOT sold two commercial properties and in 2008, sold seven apartment complexes. These sales have liquidated IOT’s ownership of income-producing properties, resulting in land available for development or sale remaining as IOT’s sole operating segment.
The Company’s primary source of revenue is from the interest payments received on notes receivable. Interest income was $4.7 million for the twelve months ended December 31, 2009. Interest income for 2009, in comparison to the same period in 2008, has increased by $1.7 million. The increase is due to payments received on our notes receivable from Unified Housing Foundation, Inc., an affiliated entity. The receivables are from surplus cash flow notes. The entity is required to pay on the notes when they generate surplus cash flow, thus interest income is recorded when received.
Mortgage and loan interest expense was $1.9 million for the twelve months ended December 31, 2009. The mortgage and loan interest expense for 2009, in comparison to the same period in 2008, has decreased by $0.2 million due to a reduction of loan fees and interest expense.
Earnings from unconsolidated subsidiaries and investees were $18,000 for the twelve months ended December 31, 2009. Earnings from unconsolidated subsidiaries and investees in 2009, as compared to the same period in 2008, increased by $0.5 million due to the current earnings recorded on our investment in TCI Eton Square, LP and the prior year write off of the investment in Nakash Investment Associates.
There was no recorded income from involuntary conversion for the twelve months ended December 31, 2009. Income from involuntary conversion, in the prior year, was $7.4 million due to insurance proceeds received relating to the tornado damage incurred on the Falcon Point apartments.
Income from discontinued operations was $3,000 for the year ended 2009, as compared to $14.0 million for the same period ended 2008. Included in income from discontinued operations were two and nine properties for the years ended 2009 and 2008, respectively.
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 atwww.incomeopp-realty.com.
INCOME OPPORTUNITY REALTY INVESTORS, INC.
BALANCE SHEETS
BALANCE SHEETS
December 31, | December 31 | |||||||
2009 | 2008 | |||||||
(dollars in thousands, except share and | ||||||||
par value amounts) | ||||||||
Assets | ||||||||
Real estate, at cost | $ | 29,503 | $ | 39,255 | ||||
Less accumulated depreciation | — | (2,313 | ) | |||||
Total real estate | 29,503 | 36,942 | ||||||
Notes and interest receivable from related parties | 38,818 | 39,841 | ||||||
Less allowance for doubtful accounts | (1,826 | ) | (1.826 | ) | ||||
Total notes and interest receivable | 36,992 | 380 | ||||||
Cash and cash equivalents | 2 | 52 | ||||||
Investments in unconsolidated subsidiaries and investees | 92 | 74 | ||||||
Receivable and accrued interest from related parties | 46,676 | 38,203 | ||||||
Other assets | 2,400 | 676 | ||||||
Total assets | $ | 115,665 | $ | 113,962 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Liabilities: | ||||||||
Notes and interest payable | $ | 37,080 | $ | 42,319 | ||||
Liabilities related to assets held for sale | — | — | ||||||
Accounts payable and other liabilities | 6,891 | 869 | ||||||
43,971 | 43,188 | |||||||
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 | 9,736 | 8,816 | ||||||
Total shareholders’ equity | 71,694 | 70,774 | ||||||
Total liabilities and shareholders’ equity | $ | 115,665 | $ | 113,962 | ||||
INCOME OPPORTUNITY REALTY INVESTORS, INC
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS
For the Years Ended December 31, | ||||||||
2009 | 2008 | |||||||
(dollars in thousands, except share and | ||||||||
per share amounts) | ||||||||
Revenues: | ||||||||
Rental and other property revenues | $ | 246 | $ | 310 | ||||
Expenses: | ||||||||
Property operating expenses | 191 | 381 | ||||||
Depreciation and amortization | 40 | 60 | ||||||
General and administrative | 405 | 599 | ||||||
Advisory fee to affiliates | 881 | 895 | ||||||
Total operating expenses | 1,517 | 1,935 | ||||||
Operating loss | (1,271 | ) | (1,625 | ) | ||||
Other income (expense): | ||||||||
Interest income | 4,661 | 2,993 | ||||||
Mortgage and loan interest | (1,883 | ) | (2,043 | ) | ||||
Gain on involuntary conversion | — | 7,356 | ||||||
Earnings from unconsolidated subsidiaries and investees | 18 | (458 | ) | |||||
Net income fee to affiliates | (115 | ) | (1,011 | ) | ||||
Total other income (expenses) | 2,681 | 6,837 | ||||||
Income (loss) before gain on land sales, non-controlling interest, and taxes | 1,410 | 5,212 | ||||||
Income (loss) from continuing operations before tax | 1,410 | 5,212 | ||||||
Income tax benefit (expense) | (493 | ) | 7,524 | |||||
Net income (loss) from continuing operations | 917 | 12,736 | ||||||
Discontinued operations: | ||||||||
Income (loss) from discontinued operations | 5 | 21,497 | ||||||
Income tax benefit (expense) from discontinued operations | (2 | ) | (7,524 | ) | ||||
Net income (loss) | 920 | 26,709 | ||||||
Net income (loss) attributable to non-controlling interests | — | — | ||||||
Net income (loss) attributable to common shares | 920 | 26,709 | ||||||
Earnings per share — basic | ||||||||
Income (loss) from continuing operations | $ | 0.22 | $ | 3.06 | ||||
Discontinued operations | — | 3.35 | ||||||
Net income (loss) applicable to common shares | $ | 0.22 | $ | 6.41 | ||||
Earnings per share — diluted | ||||||||
Income (loss) from continuing operations | $ | 0.22 | $ | 3.06 | ||||
Discontinued operations | — | 3.35 | ||||||
Net income (loss) applicable to common shares | $ | 0.22 | $ | 6.41 | ||||
Weighted average common share used in computing earnings per share | 4,168,214 | 4,168,264 | ||||||
Weighted average common share used in computing diluted earnings per share | 4,168.214 | 4,168,264 |