DALLAS, March 29, 2001 (PRIMEZONE) -- Income Opportunity Realty Investors, Inc. (AMEX:IOT) Thursday reported large gains on sales of real estate, increased interest income and higher rent and occupancy rates for its commercial properties boosted IORI's 2000 net income to $16.8 million, or $11.03 per share, on revenue of $14 million, as compared to a net income of $1.3 million, or 87 cents per share, on revenue of $16.1 million in 1999. Fourth quarter 2000 reported a net loss of $1.1 million, or $.67 per share, on revenue of $3.1 million, as compared to 1999 fourth quarter net income of $519,000, or $.34 per share, on revenue of $4 million.
Gains on sales of real estate totaling $20.9 million were recognized in 2000, as compared to $1.5 million in 1999. The 2000 gains resulted from sales of three apartments, two office buildings and two land parcels, as well as recognition of a $1.3 million deferred gain.
Rental income decreased to $13.7 million in 2000 from $16 million in 1999 due to sales of six income-producing properties in 2000 and the fourth quarter of 1999, partially offset by an increase of $1.4 million from acquisitions of income producing properties during the same periods, as well as increased rental and occupancy rates from IORI's apartments and office buildings
Interest income for 2000 increased to $319,000 from $29,000 in 1999 due to increased short-term investments and the funding of a note receivable in 2000.
Equity in income of partnerships was a loss of $61,000, from income of $147,000 in 1999 due to the sale of two commercial properties held in an equity partnership.
Funds from operations decreased to a $1.6 million loss in 2000, from $2.5 million in 1999. (FFO is defined as net income/loss excluding extraordinary gains and gains from sales of real estate, plus depreciation and amortization.)
Property operations expense increased to $7 million in 2000, from $6.8 million in 1999, which was attributable increased expenses from properties acquired in 2000 and the fourth quarter of 1999.
Interest expense decreased by $600,000 in 2000 due to sales of properties in 2000 that were subject to debt.
General and administrative expense increased to $1.5 million in 2000, from $747,000 in 1999 due to increased legal fees, consultant fees and advisory cost reimbursements.
The advisory fee increased to $664,000, from $371,000 in 1999 due to a decrease in the operating expense limitation refund. The net income fee increased to $1.4 million in 2000, from $81,000 in 1999, due to increased net income.
Income Opportunity Realty Investors, Inc. is a real estate investment trust based in Dallas that owns and operates commercial and residential properties nationwide. For more information, go to www.incomeopp-realty.com.
FINANCIAL HIGHLIGHTS
(in thousands, except share and per share data)
For the year For the quarter
ended Dec. 31, ended Dec. 31,
2000 1999 2000 1999
Income from rents $ 13,731 $ 15,968 $ 2,999 $ 3,952
Property expense 6,969 6,768 1,683 1,691
Operating income 6,762 9,200 1,316 2,261
Other income 258 177 123 35
Other expense 11,104 9,580 2,567 2,267
Gain on sale of
real estate 20,878 1,525 -- 490
Net income (loss) $ 16,794 $ 1,322 $ (1,128) $ 519
Earnings per share
Net income (loss) $ 11.03 $ .87 $ (.67) $ .34
Funds (loss of funds)
from operations $ (1,634) $ 2,520 $ (568) $ 744
Weighted average
common shares
used to compute
earnings per share 1,522,510 1,527,386 1,513,943 1,526,470