DALLAS, Aug. 16, 1999 (PRIMEZONE) -- Income Opportunity Realty Investors, Inc. (AMEX:IOT) Monday announced increased rental and occupancy rates at its commercial properties generated higher revenue and profits for the second quarter and first six months of 1999.
Second quarter 1999 net income was $247,000, or $.16 per share, on revenue of $4.1 million, as compared to net income of $132,000, or $.09 per share, on revenue of $3.7 million for the three months ended June 30, 1998. For the first six months of 1999, net income was $26,000, or $.02 per share, on revenue of $7.8 million as compared to net income of $43,000, or $.03 per share, on revenue $7.3 million for the corresponding period in 1998.
Rental income increased to $4.1 million and $7.8 million in second quarter and first six months of 1999, as compared to $3.6 million and $7.2 million in the same periods in 1998. Contributing to the increase was higher rental rates and increased occupancy in the commercial properties and initial leases from a newly constructed office building. No gains from the sale of real estate were recorded for either three-month or six-month period in 1999 or 1998.
Funds from operations (FFO) increased to $922,000 from $650,000 for the second three months of 1999 and 1998, respectively, and increased to $1.3 million from $1.1 million for the first six months of 1999 and 1998. FFO is defined as net income minus extraordinary gains and gains from the sale of property, plus depreciation and amortization.
Total expenses increased to $4.1 million, from $3.8 million for the three months, and increased to $8.1 million from $7.5 million for the six months ended June 30, 1999 and 1998, respectively. Of the increases, property operations expense rose to $1.6 million and $3.3 million, as compared to $1.5 million and $3 million, and depreciation increased to $675,000 and $1.3 million as compared to $518,000 and $1 million for the three and six months ended June 30, 1999 and 1998. Increased property taxes and higher repair and maintenance costs were experienced at IOT's commercial properties, as well as increased depreciation of capital and tenant improvements. All other expenses were comparable to the three months and six months 1998 levels.
Income Opportunity Realty Investors, Inc. is a Dallas-based real estate investment trust. IOT primarily invests in equity interest in real estate through direct ownership and partnerships.
FINANCIAL HIGHLIGHTS
(dollars in thousands, except share and per share data)
For the 3 months For the 6 months
ended June 30, ended June 30,
1999 1998 1999 1998
Revenue $ 4,095 $ 3,662 $ 7,830 $ 7,315
Expenses 4,101 3,778 8,109 7,533
Loss from operations (7) (116) (279) (218)
Equity in income
of partnerships 253 248 305 261
Net income $ 247 $ 132 $ 26 $ 43
Earnings per share
Net income $ .16 $ .09 $ .02 $ .03
Weighted average common
shares used to compute
earnings per share 1,526,785 1,520,481 1,526,416 1,520,186
Funds from operations $ 922 $ 650 $ 1,340 $ 1,070
CONTACT: Phyllis J. Wolper
Director, Investor Relations
(214) 692-4902/(800) 400-6407