DALLAS, March 15, 2000 (PRIMEZONE) --Income Opportunity Realty Investors, Inc. (AMEX:IOT) Wednesday reported increased income from higher rent and occupancy rates at its commercial properties and a larger gain on the sale of real estate boosted 1999 net income to $1.3 million, or 87 cents per share, on revenue of $16 million as compared to the 1998 net loss of $679,000, or 44 cents per share, on revenue of $14.5 million.
Rental income increased to $16 million in 1999 from $14.3 million in 1998 due to increased rental and occupancy rates and a full year of operations of a commercial property constructed in 1998. The increase was partially offset by a decrease of $82,000 due to sale of one commercial property in 1999. Rents are expected to increase further in 2000 due to a full year of operations of an apartment complex purchased in 1999, as well as increased occupancy and rental rates at IORI's other residential and commercial properties.
A gain on the sale of real estate of $1.5 million was recognized in 1999, as compared to $180,000 in 1998. The 1999 gain was IORI's equity share of gains from the sale of two partnership commercial properties.
Funds from operations increased to $2.5 million, or $1.65 per share, up from $1.5 million, or 99 cents per share, in 1998. (FFO is defined as net income/loss excluding extraordinary gains and gains from sales of real estate, plus depreciation and amortization.)
Property operations expense increased to $6.8 million in 1999, as compared to $6.5 million in 1998, which was attributable to a full year of operations of the commercial property constructed in 1998. This also resulted in increases in 1999 depreciation expense primarily due to increased tenant improvements.
General and administrative expense of $747,000 in 1999 approximated that of 1998.
Equity in income of partnerships increased to $147,000 in 1999 from $113,000 in 1998 due to the 1999 acquisition of one commercial property by the equity partnership and increased rental rates at partnership commercial properties.
The advisory and net income fees increased to $371,000 and $81,000 in 1999 from $329,000 and no fee in 1998. The 1999 increases were due to increased gross assets, the basis for the advisory fee, and recorded net income. No net income was recorded for 1998.
Income Opportunity Realty Investors, Inc. is a real estate investment trust based in Dallas that owns and operates commercial and residential properties nationwide.
FINANCIAL HIGHLIGHTS
(in thousands, except share and per share data)
For the year For the quarter
ended Dec. 31, ended Dec. 31,
1999 1998 1999 1998
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Revenue $ 15,997 $ 14,498 $ 3,958 $ 3,829
Expenses 16,348 15,470 3,958 4,039
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(Loss) from operations (351) (972) 0 (210)
Equity in income of
partnerships 148 113 29 44
Gain on sale of
real estate 1,525 180 490 ---
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Net income (loss) $ 1,322 $ (679) 519 (166)
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Earnings per share
Net income (loss) $ .87 $ (.44) $ .34 $ (.10)
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Funds from operations $ 2,520 $ 1,529 $ 744 $ 429
Weighted average
common shares used
to compute earnings
per share 1,527,386 1,521,832 1,528,558 1,524,377
CONTACT: Phyllis Wolper
Investor Relations
(800) 400-6407 (214) 692-4800
investor.relations@bcminc.com