DALLAS, May 15, 2002 (PRIMEZONE) -- Income Opportunity Realty Investors, Inc. (AMEX:IOT) Wednesday announced that gains on the sales of the real estate resulted in first quarter 2002 net income of $5.07 million or $3.53 per share, on revenue of $2.82 million, compared to a net loss of $717,000, or $.47 per share, on revenue of $3.33 million for first quarter 2001.
In the first quarter of 2002: * Gains realized from property sales were $7.11 million, compared to no gain in 2001. * Rents decreased to $2.80 million, from $3.25 million; due to the sale of a commercial property and decreased occupancy at the commercial properties, offset by increased apartment occupancy. * Operating income decreased to $1.16 million, from $1.77 million in 2001, due to lower rents and higher property expense. * Interest income decreased to $37,000, from $72,000 in 2001, due to a $1 million paydown on a note receivable in 2001.
Total expenses increased to $4.85 million, from $4.05 million in first quarter 2001, due to a provision for loss on a note receivable, payment of a net income fee and increased property operations costs.
In the first quarter of 2002: * Provision for loss of $767,000 was recognized on a note receivable. No provision for loss occurred in first quarter 2001. * Net income fee increased to $411,000, from no fee in 2001, based on 7.5 percent of net income. * Property operations expense increased to $1.6 million, from $1.5 million in first quarter 2001, due to higher leasing costs. * Interest expense decreased to $1.1 million, from $1.5 million in 2001, due to loan refinancing, the sale of a commercial property in 2002 and lower variable interest rates. * Depreciation decreased to $500,000, from $585,000 in 2001, due to a property sold in 2002. * General and administrative expense decreased to $285,000, from $311,000, due to lower professional fees.
Funds from operations (FFO) decreased to a loss of $1.53 million, from a loss $132,000, for first quarter 2002, and 2001, 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, 2002 2001 Income from rents $ 2,800 $ 3,251 Expense from operations 1,641 1,479 Operating income 1,159 1,772 Other income 20 81 Other expenses 3,211 2,570 Gain on sale of real estate 7,105 -- 3,914 2,489 Net income (loss) $ 5,073 $ (717) Earnings Per Share Net income (loss) $ 3.53 $ (.47) Weighted average common shares used to compute earnings per share 1,438,945 1,514,045 Funds from operations $ (1,532) $ (132)