Income Opportunity Reports Three and Six Month Net Incomes Decline


DALLAS, Aug. 13, 2001 (PRIMEZONE) -- Income Opportunity Realty Investors, Inc. (AMEX:IOT) announced Monday that lower rents and no gains on real estate sales produced second quarter and six months 2001 net losses of $732,000 and $1.45 million, or losses of $.49 and $.95 per share, on revenues of $3.35 million and $6.68 million, as compared to net incomes of $14.44 million and $15.03 million, or $9.43 and $9.82 per share, on revenues of $3.63 million and $7.75 million, for the comparable periods in 2000. During 2001:


 -- Rental incomes decreased to $3.29 million and $6.54 million from 
    the $3.63 million and $7.75 million for the same periods in 2000.
    Decreased rents due to property sales in 2000 were offset by rents
    from properties purchased in 2000 and increased rental and 
    occupancy rates at the commercial properties. 
 
 -- No gains on the sale of real estate were recognized in 2001, as 
    compared to gains of $16.12 million and $17.02 million in the 2000
    periods.  

Total expenses decreased to $4.08 million and $8.13 million for the second quarter and six months of 2001, from $5.37 million and $9.76 million in the 2000 comparable periods. In 2001:


 -- Net income fees to affiliate decreased to zero, as compared to 
    $1.17 million and $1.22 million for both periods in 2000, due to
    no net income, the basis for such fee.

Funds from operations (FFO) for the second quarter and six months 2001 were losses of $138,000 and $271,000, as compared to losses of $1.06 million and $664,000 in the comparable periods in 2000. FFO is defined as net income minus extraordinary gains and gains from the sale of property, plus depreciation and amortization.

Income Opportunity Realty Investors, Inc. is a Dallas-based real estate investment trust. IORI invests in equity interest in real estate through direct ownership and partnerships.


                        FINANCIAL HIGHLIGHTS
     (dollars in thousands, except share and per share data)
 
                           Three months ended       Six months ended
                                  June 30,              June 30,
                             2001        2000       2001       2000
 
 Income from rents     $    3,289  $    3,630  $    6,540  $    7,745
 Expense from
   operations               1,541       1,771       3,021       3,619
    Operating income        1,748       1,859       3,519       4,126
 
 Other income                  56          61         137          22
 Other expenses             2,536       3,597       5,105       6,136
 Gain on sale
  of real estate             --        16,119        --        17,022
                           (2,480)     12,583      (4,968)     10,908

 Net income (loss)     $     (732) $   14,442  $   (1,449) $   15,034

 Earnings Per Share
    Net income (loss)  $     (.49) $     9.43  $     (.95) $     9.82

 Weighted average
   common shares used
   to compute earnings
   per share            1,514,045   1,530,345   1,514,045   1,530,379

 Funds (loss of funds)
   from operations     $     (138) $   (1,064) $     (271) $     (664)

            

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