DALLAS, Aug. 13, 2001 (PRIMEZONE) -- Income Opportunity Realty Investors, Inc. (AMEX:IOT) announced Monday that lower rents and no gains on real estate sales produced second quarter and six months 2001 net losses of $732,000 and $1.45 million, or losses of $.49 and $.95 per share, on revenues of $3.35 million and $6.68 million, as compared to net incomes of $14.44 million and $15.03 million, or $9.43 and $9.82 per share, on revenues of $3.63 million and $7.75 million, for the comparable periods in 2000. During 2001:
-- Rental incomes decreased to $3.29 million and $6.54 million from
the $3.63 million and $7.75 million for the same periods in 2000.
Decreased rents due to property sales in 2000 were offset by rents
from properties purchased in 2000 and increased rental and
occupancy rates at the commercial properties.
-- No gains on the sale of real estate were recognized in 2001, as
compared to gains of $16.12 million and $17.02 million in the 2000
periods.
Total expenses decreased to $4.08 million and $8.13 million for the second quarter and six months of 2001, from $5.37 million and $9.76 million in the 2000 comparable periods. In 2001:
-- Net income fees to affiliate decreased to zero, as compared to
$1.17 million and $1.22 million for both periods in 2000, due to
no net income, the basis for such fee.
Funds from operations (FFO) for the second quarter and six months 2001 were losses of $138,000 and $271,000, as compared to losses of $1.06 million and $664,000 in the comparable periods in 2000. 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,
2001 2000 2001 2000
Income from rents $ 3,289 $ 3,630 $ 6,540 $ 7,745
Expense from
operations 1,541 1,771 3,021 3,619
Operating income 1,748 1,859 3,519 4,126
Other income 56 61 137 22
Other expenses 2,536 3,597 5,105 6,136
Gain on sale
of real estate -- 16,119 -- 17,022
(2,480) 12,583 (4,968) 10,908
Net income (loss) $ (732) $ 14,442 $ (1,449) $ 15,034
Earnings Per Share
Net income (loss) $ (.49) $ 9.43 $ (.95) $ 9.82
Weighted average
common shares used
to compute earnings
per share 1,514,045 1,530,345 1,514,045 1,530,379
Funds (loss of funds)
from operations $ (138) $ (1,064) $ (271) $ (664)