DALLAS, Nov. 9, 2001 (PRIMEZONE) -- Income Opportunity Realty Investors, Inc. (AMEX:IOT) announced Friday third quarter and nine months 2001 net losses of $1.75 million and $3.20 million, or losses of $1.16 and $2.11 per share, on revenues of $3.22 million and $9.76 million, as compared to net incomes of $2.89 million and $17.92 million, or $1.88 and $11.70 per share, on revenues of $2.99 million and $10.73 million, for the comparable periods in 2000. The 2000 periods reported gains on the sale of real estate of $3.86 million and $20.88 million, respectively; no gains were reported in the 2001 periods.
Funds from operations (FFO) for the third quarter and nine months 2001 improved to losses of $1.14 million and $1.41 million, as compared to losses of $402,000 and $1.07 million in the comparable periods in 2000. FFO is defined as net income minus extraordinary gains and gain from the sale of property, plus depreciation and amortization.
Revenue in the first nine months of 2001 increased to $3.22 million for the third quarter, but decreased to $9.76 million for the nine months period. Revenues of $2.99 million and $10.73 million were reported for the comparable periods in 2000. In the third quarter and nine months of 2001:
-- Rental incomes increased to $3.22 million in the third quarter,
but decreased to $9.76 million in the nine months, from $2.99
million and $10.73 million reported in 2000. The increase in
rents was due to increased rental and occupancy rates at the
commercial properties and apartments. Sales of two commercial
properties and three apartments in 2000 offset the increased
rental rates for the nine months in 2001.
-- Interest income decreased to $8,000 and $142,000 from $108,000
and $206,000 in the 2000 periods due to a $1 million pay down on
IOT's only note receivable in 2001.
-- Equities in the income of partnerships were losses of $30,000 and
$27,000, as compared to losses of $2,000 and $71,000 in 2000. The
decrease for the nine months was due to decreased operating
expenses at a commercial property.
Total expenses increased to $4.95 million in the third quarter and decreased to $13.07 million for the nine months, from $4.07 million and $13.82 million in the 2000 comparable periods. In 2001:
-- Net income fees to affiliate decreased to zero, as compared to
$234,000 and $1.50 million for the periods in 2000, due to net
losses for the first nine months in 2001.
-- Expense from operations increased to $2.27 million in the third
quarter, from $1.67 million in the 2000 comparable period; $5.29
million for the nine months was comparable to 2000 period. The
increase was due to increased utilities, leasing and
administrative costs and taxes.
-- Interest expense increased to $1.50 million and $4.60 million,
from $1.30 million and $4 million in the comparable 2000 periods
due to property purchases and the refinancing of a loan. The 2001
increases were partially offset by property sales, lower variable
interest rates and decreased principal balances.
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 Nine months ended
September 30, September 30,
2001 2000 2001 2000
Income from
rents $ 3,219 $ 2,994 $ 9,759 $ 10,732
Expense from
operations 2,272 1,667 5,292 5,286
Operating
income 947 1,327 4,467 5,446
Other
income (22) 106 115 135
Other
expenses 2,674 2,401 7,780 8,537
Gain on sale
of real estate ---- 3,856 ---- 20,878
(2,669) 1,561 (7,665) 12,476
Net income
(loss) $ (1,749) $ 2,888 $ (3,198) $ 17,922
Earnings Per
Share
Net income
(loss) $ (1.16) $ 1.88 $ (2.11) $ 11.70
Weighted
average
common
shares
used to
compute
earnings
per share 1,508,331 1,532,602 1,512,119 1,531,177
Funds (loss
of funds)
from
operations $ (1,135) $ (402) $ (1,406) $ (1,066)