Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 14, 2019 | |
Net income fee to related party | ||
Entity Registrant Name | INCOME OPPORTUNITY REALTY INVESTORS INC /TX/ | |
Entity Central Index Key | 0000949961 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Trading Symbol | IOR | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity's Reporting Status Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 4,168,214 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2019 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Notes and interest receivable from related parties | $ 13,568 | $ 14,030 |
Total notes and interest receivable | 13,568 | 14,030 |
Cash and cash equivalents | 4 | 4 |
Receivable and accrued interest from related parties | 83,498 | 82,089 |
Total assets | 97,070 | 96,123 |
Liabilities: | ||
Accounts payable and other liabilities | 3 | 26 |
Total liabilities | 3 | 26 |
Shareholders' equity: | ||
Common stock, $0.01 par value, authorized 10,000,000 shares; issued 4,173,675 and outstanding 4,168,214 shares in 2019 and 2018 | 42 | 42 |
Treasury stock at cost, 5,461 shares in 2019 and 2018 | (39) | (39) |
Paid-in capital | 61,955 | 61,955 |
Retained earnings | 35,109 | 34,139 |
Total shareholders' equity | 97,067 | 96,097 |
Total liabilities and shareholders' equity | $ 97,070 | $ 96,123 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized | 10,000,000 | 10,000,000 |
Common stock, issued | 4,173,675 | 4,168,214 |
Common stock, outstanding | 4,173,675 | 4,168,214 |
Treasury stock, | 5,461 | 5,461 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Expenses: | ||
General and administrative (including $87 and $64 for the three months ended 2019 and 2018, respectively, to related parties) | $ 133 | $ 123 |
Net income fee to related party | 100 | 53 |
Advisory fee to related party | 181 | 164 |
Total operating expenses | 414 | 340 |
Net operating loss | (414) | (340) |
Other income (expenses): | ||
Interest income from related parties | 1,642 | 1,042 |
Total other income | 1,642 | 1,042 |
Income before taxes | 1,228 | 702 |
Income tax expense | 258 | |
Net income | $ 970 | $ 702 |
Earnings per share - basic and diluted | ||
Net income (in dollars per share) | $ 0.23 | $ 0.17 |
Weighted average common shares used in computing earnings per share (in shares) | 4,168,214 | 4,168,214 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
General and administrative | $ 133 | $ 123 |
Related Parties [Member] | ||
General and administrative | $ 87 | $ 64 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Paid-in Capital [Member] | Retained Earnings [Member] |
Beginning balance at Dec. 31, 2017 | $ 87,887 | $ 42 | $ (39) | $ 61,955 | $ 25,929 |
Beginning balance (in shares) at Dec. 31, 2017 | 4,173,675 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 702 | 702 | |||
Ending balance at Mar. 31, 2018 | 88,589 | $ 42 | (39) | 61,955 | 26,231 |
Ending balance (in shares) at Mar. 31, 2018 | 4,173,675 | ||||
Beginning balance at Dec. 31, 2018 | $ 96,097 | $ 42 | (39) | 61,955 | 34,139 |
Beginning balance (in shares) at Dec. 31, 2018 | 4,168,214 | 4,173,675 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | $ 970 | 970 | |||
Ending balance at Mar. 31, 2019 | $ 97,067 | $ 42 | $ (39) | $ 61,955 | $ 35,109 |
Ending balance (in shares) at Mar. 31, 2019 | 4,173,675 | 4,173,675 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Flow From Operating Activities: | ||
Net income | $ 970 | $ 702 |
(Increase) decrease in assets: | ||
Accrued interest receivable from related parties | 462 | 462 |
Increase (decrease) in other liabilities | (23) | (5) |
Net cash provided by operating activities | 1,409 | 1,159 |
Cash Flow From Investing Activities: | ||
Related Party Receivables | (1,409) | (1,159) |
Net cash used in investing activities | (1,409) | (1,159) |
Net (decrease) increase in cash and cash equivalents | ||
Cash and cash equivalents, beginning of period | 4 | 2 |
Cash and cash equivalents, end of period | $ 4 | $ 2 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND BASIS OF PRESENTATION | NOTE 1. ORGANIZATION AND BASIS OF PRESENTATION Organization As used herein, the terms “IOR”, “the Company”, “we”, “our”, “us” refer to Income Opportunity Realty Investors, Inc., 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, which commenced operations on April 10, 1985. The Company is headquartered in Dallas, Texas, and its common stock trades on the NYSE American under the symbol (“IOR”). Transcontinental Realty Investors, Inc. (“TCI”) owns approximately 81.25% of the Company’s common stock. Effective July 17, 2009, IOR’s financial results were consolidated with those of American Realty Investors, Inc. (“ARL”) and TCI and their subsidiaries. IOR is a “C” corporation for U.S. federal income tax purposes and files an annual consolidated income tax return with ARL and its ultimate parent, May Realty Holdings, Inc. (“MRHI”). We have no employees. IOR invests in real estate through direct ownership, leases and partnerships and also invests in mortgage loans on real estate. Pillar Income Asset Management, Inc. (“Pillar”) is the Company’s external Advisor and Cash Manager. Although the Board of Directors is directly responsible for managing the affairs of IOR, and for setting the policies which guide it, the day-to-day operations of IOR are performed by Pillar, as the contractual Advisor, under the supervision of the Board. Pillar’s duties include, but are not limited to, locating, evaluating and recommending real estate and real estate-related investment opportunities and arranging debt and equity financing for the Company with third party lenders and investors. Additionally, Pillar serves as a consultant to the Board with regard to their decisions in connection with IOR’s business plan and investment policy. Pillar also serves as an Advisor and Cash Manager to TCI and ARL. Our primary business is investing in real estate and financing real estate and real estate-related activities through investments in mortgage loans. As of March 31, 2019 and December 31, 2018, we had no real estate holdings. At March 31, 2019, the principal source of revenue for the Company is interest income on approximately $95.4 million of notes receivable due from related parties, out of which, $13.1 million are due from United Housing Foundation, Inc. (“UHF”) (Refer to Note 2). Basis of Presentation The accompanying unaudited Consolidated 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 (“U.S. GAAP”) have been condensed or omitted in accordance with such rules and regulations, although management believes the disclosures are adequate to prevent the information presented from being misleading. In the opinion of management, all adjustments (consisting of normal recurring matters) considered necessary for a fair presentation have been included. The results of operations for the three months ended March 31, 2019, are not necessarily indicative of the results that may be expected for other interim periods or for the full fiscal year. As of March 31, 2019 and December 31, 2018, IOR was not the primary beneficiary of a variable interest entity (“VIE”). The year-end Consolidated Balance Sheet at December 31, 2018, was derived from the audited Consolidated Financial Statements at that date, but does not include all of the information and disclosures required by U.S. GAAP for complete financial statements. For further information, refer to the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. Real Estate, Depreciation and Impairment Real estate assets are stated at the lower of depreciated 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). The Company continually evaluates 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 theoretical sale of the asset) over its estimated holding period are in excess of the asset’s net book value at the balance sheet date. If any real estate asset held for investment is considered impaired, a loss is provided to reduce the carrying value of the asset 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, after an active program to sell the asset has commenced and if the sale is probable. One of the deciding factors in determining whether a sale is probable is whether a firm purchase commitment is obtained and whether the sale is probable within the year. Upon the classification of a real estate asset as held for sale, the carrying value of the asset is reduced to the lower 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 accompanying Consolidated Balance Sheets. Upon a decision that the sale is no longer probable, the asset is classified as an operating asset and depreciation expense is reinstated. Cost Capitalization The cost of buildings and improvements includes the purchase price of the property, legal fees and other acquisition costs. Costs directly related to planning, developing, initial leasing and constructing a property are capitalized and classified as Real Estate in the Consolidated Balance Sheets. Capitalized development costs include interest, property taxes, insurance, and other direct project costs incurred during the period of development. A variety of costs are incurred in the acquisition, development and leasing of properties. After determination is made to capitalize a cost, it is allocated to the specific component of a project that is benefited. Determination of when a development project is substantially complete and capitalization must cease involves a degree of judgment. Our capitalization policy on development properties is guided by ASC 835-20 Interest – Capitalization of Interest Real Estate - General Fair Value Measurement We apply the guidance in ASC Topic 820, “Fair Value Measurements and Disclosures”, to the valuation of real estate assets. These provisions define fair value as the price that would be received to sell an asset or paid to transfer a liability in a transaction between market participants at 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 asset or liability as of the measurement date and includes three levels defined as follows: Level 1 – Unadjusted quoted prices for identical and unrestricted assets or liabilities in active markets. Level 2 – Quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 – Unobservable inputs that are significant to the fair value measurement. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Related Parties We apply ASC Topic 805, “Business Combinations”, to evaluate business relationships. Related parties are persons or entities who have one or more of the following characteristics, which include entities for which investments in their equity securities would be required, trust for the benefit of persons including principal owners of the entities and members of their immediate families, management personnel of the entity and members of their immediate families and other parties with which the entity may deal if one party controls or can significantly influence the decision making of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests, or affiliates of the entity. Newly Issued Accounting Pronouncements We have considered all other newly issued accounting guidance that is applicable to our operations and the preparation of our statements, including that which we have not yet adopted. We do not believe that any such guidance will have a material effect on our financial position or results of operations. |
NOTES AND INTEREST RECEIVABLE F
NOTES AND INTEREST RECEIVABLE FROM RELATED PARTIES | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
NOTES AND INTEREST RECEIVABLE FROM RELATED PARTIES | NOTE 2. NOTES AND INTEREST RECEIVABLE FROM RELATED PARTIES Notes and interest receivable from related parties is comprised of junior mortgage loans, which are loans secured by mortgages that are subordinate to one or more prior liens on the underlying real estate. Recourse on the loans ordinarily includes the real estate which secures the loan, other collateral and personal guarantees of the borrower. The Company has various notes receivable from Unified Housing foundation, Inc. “UHF”. UHF is determined to be a related party due to our significant investment in the performance of the collateral secured under the notes receivable. Payments are due from surplus cash flow from operations, sale or refinancing of the underlying properties. These notes are cross collateralized to the extent that any surplus cash available from any of the properties underlying these notes will be used to repay outstanding interest and principal for the remaining notes. Furthermore, any surplus cash available from any of the properties UHF owns, besides the properties underlying these notes, can be used to repay outstanding interest and principal for these notes. The allowance on the notes was a purchase allowance that was netted against the notes when acquired. At March 31, 2019, we had mortgage loans and accrued interest receivable from related parties, net of allowances, totaling $13.6 million. As of March 31, 2019, we recognized interest income of $442 thousand related to these notes receivable. Below is a summary of notes and interest receivable from related parties (dollars in thousands): Borrower Maturity Interest Amount Collateral Performing loans: Unified Housing Foundation, Inc. (Echo Station) 12/32 12.00 % $ 1,481 Secured Unified Housing Foundation, Inc. (Lakeshore Villas) 12/32 12.00 % 2,000 Secured Unified Housing Foundation, Inc. (Lakeshore Villas) 12/32 12.00 % 6,369 Secured Unified Housing Foundation, Inc. (Limestone Ranch) 12/32 12.00 % 1,953 Secured Unified Housing Foundation, Inc. (Timbers of Terrell) 12/32 12.00 % 1,323 Secured Total Notes Receivable 13,126 Accrued interest 442 Total Performing $ 13,568 All are related party notes. |
RELATED PARTY TRANSACTIONS AND
RELATED PARTY TRANSACTIONS AND FEES | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
RECEIVABLE FROM AND PAYABLE TO RELATED PARTIES | NOTE 3. RECEIVABLE FROM AND PAYABLE TO RELATED PARTIES From time to time, IOR and its 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 Advisor, Pillar, a related party. The table below reflects the various transactions between IOR, Pillar, and TCI (dollars in thousands): TCI Balance, December 31, 2018 $ 82,089 Cash transfers 835 Advisory fees (181 ) Net income fee (100 ) Cost reimbursements (87 ) Interest income 1,200 Income Tax (258 ) Balance, March 31, 2019 $ 83,498 We have historically engaged in and will continue to engage in certain business transactions with related parties, including but not limited to asset acquisitions and dispositions. Transactions involving related parties cannot be presumed to be carried out on an arm’s length basis due to the absence of free market forces that naturally exist in business dealings between two or more unrelated entities. Related party transactions may not always be favorable to our business and may include terms, conditions and agreements that are not necessarily beneficial to or in the best interest of the Company. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 4. COMMITMENTS AND CONTINGENCIES Litigation Berger Litigation On February 4, 2019, an individual claiming to be a stockholder holding 7,900 shares of Common Stock of Income Opportunity Realty Investors, Inc. (“IOR”) filed a Complaint in the United States District Court for the Northern District of Texas, Dallas Division, individually and allegedly derivatively on behalf of IOR, against Transcontinental Realty Investors, Inc. (“TCI”), American Realty Investors, Inc. (“ARL”), (TCI is a shareholder of IOR, ARL is a shareholder of TCI) Pillar Income Asset Management, Inc. (“Pillar”), ( collectively the “Companies”), certain officers and directors of the Companies (“Additional Parties”) and two other individuals. The Complaint filed alleges that the sale and/or exchange of certain tangible and intangible property between the Companies and IOR during the last ten years of business operations constitutes a breach of fiduciary duty by the one or more of Companies, the Additional Defendants and/or the directors of IOR. The case alleges other related claims. The Plaintiff seeks certification as a representative of IOR and all of its shareholders, unspecified damages, a return to IOR of various funds and an award of costs, expenses, disbursements (including Plaintiff’s attorneys’ fees) and prejudgment and post-judgment interest. The named Defendants intend to vigorously defend the action, deny all of the allegations of the Complaint, and believe the allegations to be wholly without any merit. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 5. SUBSEQUENT EVENTS The Company has evaluated subsequent events through May 15, 2019, the date the Consolidated Financial Statements were available to be issued, and has determined that there are none to be reported. |
ORGANIZATION AND BASIS OF PRE_2
ORGANIZATION AND BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Consolidated 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 (“U.S. GAAP”) have been condensed or omitted in accordance with such rules and regulations, although management believes the disclosures are adequate to prevent the information presented from being misleading. In the opinion of management, all adjustments (consisting of normal recurring matters) considered necessary for a fair presentation have been included. The results of operations for the three months ended March 31, 2019, are not necessarily indicative of the results that may be expected for other interim periods or for the full fiscal year. As of March 31, 2019 and December 31, 2018, IOR was not the primary beneficiary of a variable interest entity (“VIE”). The year-end Consolidated Balance Sheet at December 31, 2018, was derived from the audited Consolidated Financial Statements at that date, but does not include all of the information and disclosures required by U.S. GAAP for complete financial statements. For further information, refer to the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. |
Real Estate, Depreciation and Impairment | Real Estate, Depreciation and Impairment Real estate assets are stated at the lower of depreciated 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). The Company continually evaluates 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 theoretical sale of the asset) over its estimated holding period are in excess of the asset’s net book value at the balance sheet date. If any real estate asset held for investment is considered impaired, a loss is provided to reduce the carrying value of the asset to its estimated fair value. |
Real Estate Held For Sale | 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, after an active program to sell the asset has commenced and if the sale is probable. One of the deciding factors in determining whether a sale is probable is whether a firm purchase commitment is obtained and whether the sale is probable within the year. Upon the classification of a real estate asset as held for sale, the carrying value of the asset is reduced to the lower 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 accompanying Consolidated Balance Sheets. Upon a decision that the sale is no longer probable, the asset is classified as an operating asset and depreciation expense is reinstated. |
Cost Capitalization | Cost Capitalization The cost of buildings and improvements includes the purchase price of the property, legal fees and other acquisition costs. Costs directly related to planning, developing, initial leasing and constructing a property are capitalized and classified as Real Estate in the Consolidated Balance Sheets. Capitalized development costs include interest, property taxes, insurance, and other direct project costs incurred during the period of development. A variety of costs are incurred in the acquisition, development and leasing of properties. After determination is made to capitalize a cost, it is allocated to the specific component of a project that is benefited. Determination of when a development project is substantially complete and capitalization must cease involves a degree of judgment. Our capitalization policy on development properties is guided by ASC 835-20 Interest – Capitalization of Interest Real Estate - General |
Fair Value Measurement | Fair Value Measurement We apply the guidance in ASC Topic 820, “Fair Value Measurements and Disclosures”, to the valuation of real estate assets. These provisions define fair value as the price that would be received to sell an asset or paid to transfer a liability in a transaction between market participants at 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 asset or liability as of the measurement date and includes three levels defined as follows: Level 1 – Unadjusted quoted prices for identical and unrestricted assets or liabilities in active markets. Level 2 – Quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 – Unobservable inputs that are significant to the fair value measurement. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. |
Related Parties | Related Parties We apply ASC Topic 805, “Business Combinations”, to evaluate business relationships. Related parties are persons or entities who have one or more of the following characteristics, which include entities for which investments in their equity securities would be required, trust for the benefit of persons including principal owners of the entities and members of their immediate families, management personnel of the entity and members of their immediate families and other parties with which the entity may deal if one party controls or can significantly influence the decision making of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests, or affiliates of the entity. |
Newly Issued Accounting Pronouncements | Newly Issued Accounting Pronouncements We have considered all other newly issued accounting guidance that is applicable to our operations and the preparation of our statements, including that which we have not yet adopted. We do not believe that any such guidance will have a material effect on our financial position or results of operations. |
NOTES AND INTEREST RECEIVABLE_2
NOTES AND INTEREST RECEIVABLE FROM RELATED PARTIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Summary of notes and interest receivable from related parties | Below is a summary of notes and interest receivable from related parties (dollars in thousands): Borrower Maturity Interest Amount Collateral Performing loans: Unified Housing Foundation, Inc. (Echo Station) 12/32 12.00 % $ 1,481 Secured Unified Housing Foundation, Inc. (Lakeshore Villas) 12/32 12.00 % 2,000 Secured Unified Housing Foundation, Inc. (Lakeshore Villas) 12/32 12.00 % 6,369 Secured Unified Housing Foundation, Inc. (Limestone Ranch) 12/32 12.00 % 1,953 Secured Unified Housing Foundation, Inc. (Timbers of Terrell) 12/32 12.00 % 1,323 Secured Total Notes Receivable 13,126 Accrued interest 442 Total Performing $ 13,568 |
RELATED PARTY TRANSACTIONS AN_2
RELATED PARTY TRANSACTIONS AND FEES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of reconciliation of accounts receivable from related parties | The table below reflects the various transactions between IOR, Pillar, and TCI (dollars in thousands): TCI Balance, December 31, 2018 $ 82,089 Cash transfers 835 Advisory fees (181 ) Net income fee (100 ) Cost reimbursements (87 ) Interest income 1,200 Income Tax (258 ) Balance, March 31, 2019 $ 83,498 |
ORGANIZATION AND BASIS OF PRE_3
ORGANIZATION AND BASIS OF PRESENTATION (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Notes and interest receivable from related parties | $ 13,568 | $ 14,030 | |
Interest income from related parties | $ 1,642 | $ 1,042 | |
Transcontinental Realty Investors, Inc. [Member] | |||
Percentage of ownership | 81.25% | ||
Buildings and Improvements [Member] | Minimum [Member] | |||
Useful life | 10 years | ||
Buildings and Improvements [Member] | Maximum [Member] | |||
Useful life | 40 years | ||
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | |||
Useful life | 5 years | ||
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | |||
Useful life | 10 years |
NOTES AND INTEREST RECEIVABLE_3
NOTES AND INTEREST RECEIVABLE FROM RELATED PARTIES (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Notes and interest receivable from related parties, net | $ 13,568 | $ 14,030 | |
Interest income | 1,642 | $ 1,042 | |
Unified Housing Foundation, Inc. [Member] | |||
Notes and interest receivable from related parties, net | 13,600 | ||
Interest income | $ 442 |
NOTES AND INTEREST RECEIVABLE_4
NOTES AND INTEREST RECEIVABLE FROM RELATED PARTIES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Total | $ 13,568 | $ 14,030 |
Performing Loans [Member] | ||
Accrued interest | 442 | |
Total | $ 13,568 | |
Unified Housing Foundation, Inc. (Lakeshore Villas) [Member] | Performing Loans [Member] | ||
Maturity date | Dec. 31, 2032 | |
Interest Rate | 12.00% | |
Description of property | Lakeshore Villas | |
Amount | $ 2,000 | |
Collateral | Secured | |
QUARTERLY DATA (Tables): | Performing Loans [Member] | ||
Maturity date | Dec. 31, 2032 | |
Interest Rate | 12.00% | |
Description of property | Lakeshore Villas | |
Amount | $ 6,369 | |
Collateral | Secured | |
Unified Housing Foundation, Inc. (Limestone Ranch) [Member] | Performing Loans [Member] | ||
Maturity date | Dec. 31, 2032 | |
Interest Rate | 12.00% | |
Description of property | Limestone Ranch | |
Amount | $ 1,953 | |
Collateral | Secured | |
Unified Housing Foundation, Inc. (Timbers of Terrell) [Member] | Performing Loans [Member] | ||
Maturity date | Dec. 31, 2032 | |
Interest Rate | 12.00% | |
Description of property | Timbers of Terrell | |
Amount | $ 1,323 | |
Collateral | Secured | |
Unified Housing Foundation, Inc. (Echo Station) [Member] | Performing Loans [Member] | ||
Maturity date | Dec. 31, 2032 | |
Interest Rate | 12.00% | |
Description of property | Echo Station | |
Amount | $ 1,481 | |
Collateral | Secured |
RECEIVABLE FROM AND PAYABLE TO
RECEIVABLE FROM AND PAYABLE TO RELATED PARTIES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Related party receivable, beginning | $ 82,089 | |
Advisory fee | (181) | $ (164) |
Net income fee | (100) | $ (53) |
Related party receivable, ending | 83,498 | |
Transcontinental Realty Investors, Inc [Member] | ||
Related party receivable, beginning | 82,089 | |
Cash transfers | 835 | |
Advisory fee | (181) | |
Net income fee | (100) | |
Cost reimbursements | (87) | |
Interest income | 1,200 | |
Income tax | (258) | |
Related party receivable, ending | $ 83,498 |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND LIQUIDITY (Details Narrative) | Feb. 04, 2019shares |
Commitments and Contingencies Disclosure [Abstract] | |
Filing Date | 2/4/19 |
Plantiff | Stockholder holding shares of Common Stock of Income Opportunity Realty Investors, Inc. |
Common stock held by shareholder of lawsuit | 7,900 |