DALLAS, August 14, 2000 (PRIMEZONE)-- Income Opportunity Realty Investors, Inc. (AMEX:IOT) announced Monday that large gains on the sale of real estate caused second quarter and six month 2000 net income to rise by $14.2 million and $15 million, respectively, over the same periods in 1999, which reported no gains on sales of real estate.
Second quarter and six month 2000 net incomes were $14.4 million and $15 million, or $9.43 and $9.82 per share, on revenues of $3.6 million and $7.7 million, as compared to net income of $247,000 and $26,000 or $.16 and $.02 per share, on revenues of $4.1 million and $7.8 million for the same periods in 1999.
-- Rental incomes of $3.6 million and $7.7 million approximated the $4.1 million and $7.8 million rents for the same periods in 1999.
-- Gains on the sale of real estate of $16.1 million and $17 million were recognized; no gains were reported in the 1999 periods.
Total expenses increased to $ 5.4 million and $9.8 million, from $4.1 million and $8.1 million in 1999.
-- Net income fees to affiliate increased to $1.2 million for both the second quarter and six months as compared to $2,000 for both periods in 1999, due to an increase in net income, the basis for such fee.
-- 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 second quarter and six months decreased to losses of $1.1 million and $664,000 from income 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 interest in real estate through direct ownership and partnerships.
FINANCIAL HIGHLIGHTS
(dollars in thousands, except share and per share data)
Three months ended Six months ended
June 30, June 30,
2000 1999 2000 1999
Income from rents $ 3,623 $ 4,089 $ 7,738 $ 7,817
Expense from
operations 1,771 1,621 3,619 3,293
Operating income 1,852 2,468 4,119 4,524
Other income 68 259 29 318
Other expenses 3,597 2,480 6,136 4,816
Gain on sale of
real estate 16,119 -- 17,022 --
12,590 (2,221) 10,915 (4,498)
Net income (loss) $ 14,442 $ 247 $ 15,034 $ 26
Earnings Per Share
Net income (loss) $ 9.43 $ .16 $ 9.82 $ .02
Weighted average common
share used to compute
earnings per share 1,530,345 1,526,785 1,530,379 1,526,416
Funds (loss of funds)
from operations $ (1,064) $ 922 $ (664) $ 1,344
CONTACT: Phyllis Wolper
Director, Investor Relations
(214) 692-4902 (800) 400-6407
investor.relations@bcminc.com