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