DALLAS, Nov. 14, 2000 (PRIMEZONE) -- Income Opportunity Realty Investors, Inc. (AMEX:IOT) announced Tuesday that large gains on sales of real estate and increased interest income caused third quarter and nine month 2000 net income to rise by $2.1 million and $17.1 million, respectively, over the same periods in 1999, which reported no gains on sales of real estate.
Third quarter and nine month 2000 net incomes were $2.9 million and $17.9 million, or $1.88 and $11.70 per share, on revenues of $3.1 million and $10.9 million, as compared to net income of $779,000 and $805,000 or $.51 and $.53 per share, on revenues of $5.1 million and $13.2 million, for the same periods in 1999. In the three and nine months ended Sept. 30, 2000:
- Rental income of $3 million and $10.7 million declined from the
$4.1 million and $12 million rents for the same periods in 1999, due to
sales of three apartments and two office buildings in 2000, partially
offset by the purchase of a six-apartment portfolio during 2000.
- Interest income of $108,000 and $206,000 increased from $10,000 and
$23,000 for the same periods in 1999, due to the investment of funds
received from property sales in 2000.
- Gains of $3.9 million and $20.9 million were recognized from sales of
three apartments, two office buildings and two parcels of land, as well
as a deferred gain on a property sold by an affiliate that had
purchased the property from IORI. No gains were reported in the 1999
periods.
- Equity in partnerships losses were $2,000 and $71,000, as compared to
incomes of $850,000 and $1.2 million in the 1999 periods, due to IORI's
equity share of a 1999 gain recognized by a partnership in which IORI
has an interest.
Expenses for the third quarter and nine months of 2000 totaled $4.1 million and $13.8 million, as compared to $4.3 million and $12.4 million in 1999. In the three and nine months ended Sept. 30, 2000:
- Property operation expenses approximated those of the 1999 periods;
increases due to acquisitions offset decreases resulting from property
sales in 2000.
- Net income fees to affiliate increased to $234,000 and $1.5 million, as
compared to $63,000 and $65,000 for the periods in 1999, due to
increased net incomes, the basis for such fees.
- Higher general and administrative expenses were due to increased legal
and professional fees, shareholder relations expenses and advisory cost
reimbursements.
Funds from operations (FFO) for the third quarter and nine months decreased to losses of $1.1 million and $664,000 from incomes of $922,000 and $1.3 million for 1999. 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 interests in real estate through direct ownership and partnerships.
FINANCIAL HIGHLIGHTS
(dollars in thousands, except share and per share data)
Three months ended Nine months ended
September 30, September 30,
2000 1999 2000 1999
---------- ---------- ---------- ----------
Income from rents $ 2,994 $ 4,199 $ 10,732 $ 12,016
Expense from
operations 1,677 1,783 5,286 5,076
---------- ---------- ---------- ----------
Operating income 1,327 2,416 5,446 6,940
Other income 106 860 135 1,178
Other expenses 2,401 2,497 8,537 7,313
Gain on sale of
real estate 3,856 -- 20,878 --
---------- ---------- ---------- ----------
1,561 (1,637) 12,476 (6,135)
Net income $ 2,888 $ 779 $ 17,922 $ 805
========== ========== ========== ==========
Earnings Per
Share
Net income $ 1.88 $ .51 $ 11.70 $ .53
========== ========== ========== ==========
Weighted average
common share used
to compute
earnings per
share 1,532,602 1,527,751 1,531,177 1,526,873
Funds (loss of
funds) from
operations $ (402) $ 1,449 $ (1,066) $ 2,813
---------- ---------- ---------- ----------
*T*T
CONTACT: Phyllis Wolper
Director, Investor Relations
(469) 522-4245, (800) 400-6407
investor.relations@bcminc.com