DALLAS, Aug. 14, 2002 (PRIMEZONE) -- Income Opportunity Realty Investors, Inc. (AMEX:IOT) announced Wednesday that lower rents from commercial properties contributed to a second quarter 2002 net loss of $889,000, or ($.62) per share, on revenue of $2.89 million, as compared to a net loss of $732,000, or ($.49) per share, on revenue of $2.81 million for the comparable period in 2001. In the six months ended June 30, 2002, a $7.11 million gain on the sale of real estate contributed net income of $4.18 million, or $2.90 per share, on revenue of $5.58 million, as compared to a net loss of $1.45 million, or ($.95) per share, on revenue of $5.56 million for the 2001 period.
Income in the 2002 second quarter and six months, compared to the same periods in 2001, included:
-- Decreased rental incomes of $2.53 million and $5.20 million, as
compared to $2.76 million and $5.43 million in 2001, due to lower
occupancy at the commercial properties. Most of the decrease
occurred at the commercial properties in California, where
occupancy fell by 24 percent.
-- Increased interest income of $310,000 and $348,000, compared to
$62,000 and $134,000 in 2001.
Expense in the second quarter and six months of 2002 increased to $3.78 million and $8.21 million, from $3.60 million and $7.20 million in the 2001 comparable periods, and included:
-- A provision for loss of $767,000 on a note receivable was recorded
in the six months; no such provision for loss was reported in the
2001 period.
-- A net income fee to affiliate of $411,000 was paid to the advisor
in the six months; no such fee was paid in the first six months of
2001. The fee is based on 7.5 percent of net income.
-- General and administrative expenses were $352,000 and $637,000, as
compared to $161,000 and $472,000 in 2001, due to increased
insurance and investor relations costs.
Total gain and income (loss) from properties sold was $6.81 million or $4.73 per share for the six months ended June 30, 2002, versus $188,000 or $.12 per share for the comparable period in 2001.
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. For more information, go to the web site at www.incomeopp-realty.com.
FINANCIAL HIGHLIGHTS
(dollars in thousands, except share and per share data)
Three months ended Six months ended
June 30, June 30,
2002 2001 2002 2001
---------- ---------- ---------- ----------
Income from rents $ 2,531 $ 2,756 $ 5,202 $ 5,425
Expense from
operations 1,432 1,335 2,725 2,649
---------- ---------- ---------- ----------
Operating income 1,099 1,421 2,477 2,776
Other income 358 56 378 137
Other expense 2,346 2,266 5,484 4,550
---------- ---------- ---------- ----------
Net loss from
continuing
operations (889) (789) (2,629) (1,637)
Net income (loss)
from discontinued
operations -- 57 (292) 188
Gain on sale of
real estate -- -- 7,105 --
---------- ---------- ---------- ----------
-- 57 6,813 188
Net income (loss) $ (889) $ (732) $ 4,184 $ (1,449)
========== ========== ========== ==========
Earnings Per Share
Net loss from
continuing
operations $ (.62) $ (.52) $ (1.83) $ (1.08)
========== ========== ========== ==========
Discontinued
operations -- .04 4.73 .12
---------- ---------- ---------- ----------
Net income
(loss) $ (.62) $ (.49) $ 2.90 $ (.95)
========== ========== ========== ==========
Weighted average
common shares used
to compute earnings
per share 1,438,945 1,514,045 1,438,945 1,514,045