DALLAS, April 1, 2003 (PRIMEZONE) -- Income Opportunity Realty Investors, Inc. (AMEX:IOT) Tuesday reported net income of $2.09 million, or $1.45 per share, on revenue of $11.02 million for the year ending December 31, 2002, as compared to a net loss of $3.46 million, or ($2.32) per share, on revenue of $10.36 million for the comparable period in 2001.
IORI reported a fourth quarter 2002 net loss of $860,000, or ($.60) per share, on revenue of $2.92 million, compared to a fourth quarter 2001 net loss of $264,000, or ($.18) per share, on revenue of $2.57 million.
In the twelve months of 2002, a $7.15 million gain on the sale of certain real estate contributed to a net income from discontinued operations of $6.68 million, or $4.64 per share.
Income in the 2002 fourth quarter and twelve months, compared to the same periods in 2001, included:
- Rental income of $2.41 million and $9.88 million, compared to $2.50 million and $10.18 million in 2001, due to lower occupancy at the commercial properties. Commercial property occupancy rates fell 7.8 percent in the twelve months between December 31, 2002, and 2001. - Equity in the income of equity partnerships of $771,000 and $862,000, compared to $18,000 and a loss of $9,000 in the 2001 periods.
Expense in the fourth quarter and 12 months of 2002 increased to $4.12 million and $15.61 million, from $2.87 million and $14.05 million in 2001, due to increased other expense. Total 2002 expense for the three months and twelve months included
- Property operations expense of $1.50 million and $5.65 million, compared to $926,000 and $5.42 million in 2001, due to increased property taxes, utilities and insurance. - Interest expense of $1.36 million and $4.72 million, compared to $1.33 million and $5.20 million in 2002.
The twelve month period 2002 included:
- A provision for loss of $1.57 million on a receivable. No such provision was reported in the 2001 period. - A net income fee to affiliate of $169,000 and an advisory fee to affiliate of $714,000 were paid to the advisor in the 2002 period. Only the advisory fee of $817,000 was paid in 2001. The net income fee is based on 7.5 percent of net income and the advisory fee is based on gross assets.
Income Opportunity Realty Investors, Inc. is a Dallas-based real estate investment company that invests in equity interests in real estate through direct ownership and partnerships. For more information, go to the web site at www.incomeopp-realty.com.
FINANCIAL HIGHLIGHTS
(dollars in thousands, except share and per share data)
Three months ended Twelve months ended
December 31, December 31,
2002 2001 2002 2001
---------------------- ----------------------
Income from rents $ 2,410 $ 2,500 $ 9,884 $ 10,179
Expense from
operations 1,496 926 5,647 5,416
---------- ---------- ---------- ----------
Operating income 914 1,574 4,237 4,763
Other income 509 70 1,132 185
Other expense 2,621 1,946 9,966 8,638
---------- ---------- ---------- ----------
Net loss from
continuing
operations (1,198) (302) (4,597) (3,690)
Net income (loss)
from discontinued
operations 338 38 (470) 228
Gain on sale of
real estate -- -- 7,152 --
---------- ---------- ---------- ----------
338 38 6,682 228
Net income (loss) $ (860) $ (264) $ 2,085 $ (3,462)
========== ========== ========== ==========
Earnings (Loss)
Per Share
Net loss from
continuing
operations $ (.83) $ (.20) $ (3.19) $ (2.47)
========== ========== ========== ==========
Discontinued
operations .23 .02 4.64 .15
---------- ---------- ---------- ----------
Net income (loss) $ (.60) $ (.18) $ 1.45 $ (2.32)
========== ========== ========== ==========
Weighted average
common shares used
to compute earnings
per share 1,438,945 1,493,675 1,438,945 1,493,675