DALLAS, May 15, 2001 (PRIMEZONE) -- Income Opportunity Realty Investors, Inc. (AMEX:IOT) Tuesday announced that decreased rental income due to property sales, increased interest expense and no gain on the sale of real estate resulted in a net loss of $717,000, or $.47 per share, on revenue of $3.3 million for first quarter 2001, compared to net income of $592,000, or $.39 per share, on revenue of $4.1 million, for the same period in 2000.
In the first quarter of 2001:
-- Rents decreased by $864,000 to $3.3 million; a $2 million decrease
resulted from the sale of six income producing properties in 2000,
partially offset by an $834,000 increase from the five properties
purchased in 2000, as well as a $400,000 increase in rental rates
and decreased vacancies.
-- Operating income decreased to $1.8 million, from $2.3 million.
-- No gain was realized from property sales, compared to a $903,000
gain in 2000.
-- Interest income increased to $72,000, from $7,000 in 2000.
-- Income of equity partnerships increased to $9,000, from a $46,000
loss in 2000.
Total expenses decreased to $4 million, from $4.4 million, for the
three months ended March 31, 2001 and 2000, respectively, due to
properties sold in 2000. In the first quarter of 2001:
-- Property operations expense declined by $369,000.
-- Interest expense increased by $102,000 due to property purchases.
-- Advisory fee expense was comparable; net income fee decreased by
$48,000.
-- Depreciation declined by $126,000.
-- General and administrative expense increased by $113,000 due to
legal and consulting fees.
Funds from operations (FFO) decreased to a negative $132,000, from a positive $400,000, for the three months ending March 31, 2001 and 2000, respectively. 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,
2001 2000
Income from rents $ 3,251 $ 4,115
Expense from operations 1,479 1,848
Operating income 1,772 2,267
Other income 81 (39)
Other expenses 2,570 2,539
Gain on sale of real estate -- 903
2,651 (1,675)
Net income (loss) $ (717) $ 592
Earnings Per Share
Net income (loss) $ (.47) $ .39
Weighted average common
share used to compute
earnings per share 1,514,045 1,530,413
Funds from operations $ (132) $ 400