DALLAS, May 15, 2000 (PRIMEZONE) -- Income Opportunity Realty Investors, Inc. (AMEX:IOT) Monday announced improved rental income, increased operating income and a gain on the sale of real estate produced an additional $813,000 in net income for first quarter 2000 over the same period in 1999.
First quarter 2000 net income was $592,000, or $.39 per share, on revenue of $4.1 million, as compared to a net loss of $221,000, or $.14 per share, on revenue of $3.7 million for the first three months of 1999.
-- Rental income increased to $4.1 million in the first quarter of
2000, as compared to $3.7 million in the same period in 1999, due
to higher rental rates, improved occupancy and a 1999 acquisition.
-- A $903,000 gain on the sale of real estate was reported; no gains
occurred in the 1999 period.
Total expenses increased to $ 4.4 million, from $4.0 million, for the three months ended March 31, 2000 and 1999, respectively. Interest expense and advisory fee expense approximated those of 1999. Property operations expense, depreciation, net income fee to affiliate and general and administrative expense increased by $176,000, $68,000, $48,000 and $42,000, respectively, over first quarter 1999 levels.
-- Increased operations expense was the result of the 1999
acquisition.
-- Higher depreciation was due to the depreciation of capital and
tenant improvements on commercial properties, as well as the
1999 acquisition.
-- The net income fee was based on IORI's net income; no such fee
occurred in first quarter 1999.
-- G and A expense reflected increased legal, accounting and
reporting fees and insurance costs.
Funds from operations (FFO) decreased to $400,000 from $422,000 for the three months ending March 31, 2000 and 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 interest in real estate through direct ownership and partnerships.
FINANCIAL HIGHLIGHTS
(dollars in thousands, except share and per share data)
Three months ended March 31,
2000 1999
Income from rents $ 4,115 $ 3,728
Expense from operations 1,848 1,672
---------- ----------
Operating income 2,267 2,056
Other income (37) 59
Other expenses 2,539 2,336
Gain on sale of real estate 903 --
---------- ----------
864 59
Net income (loss) $ 592 $ (221)
========== ==========
Earnings Per Share
Net income (loss) $ .39 $ (.14)
========== ==========
Weighted average common
share used to compute
earnings per share $1,530,413 $ 1,526,043
Funds from operations $ 400 $ 422
---------- ----------