DALLAS, March 20, 2002 (PRIMEZONE) -- Income Opportunity Realty Investors, Inc. (AMEX:IOT) Wednesday announced fourth quarter and 12 month 2001 net losses of $254,000 and $3.46 million, or $.18 per share and $2.32 per share, on revenues of $3.31 million and $13.19 million, respectively, as compared to a 2000 fourth quarter net loss of $1.13 million and a 12 month net income of $16.79 million, or a loss of $.67 per share and income of $11.03 per share, on revenues of $3.12 million and $34.87 million, respectively. Income in 2000 included $20.88 million in gains on the sale of real estate; no gain was reported in 2001.
Funds from operations (FFO) for fourth quarter and 12 months 2001 were $381,000 and a loss of $1.04 million, as compared to losses of $568,000 and $1.63 million in the comparable periods in 2000. FFO is defined as net income minus extraordinary gains and gain from the sale of property, plus depreciation and amortization.
Revenues increased in the fourth quarter to $3.31 million and decreased in the 12 months to $13.19 million in 2001, from $3.12 million and $34.87 million, respectively in 2000. In the fourth quarter and 12 months of 2001:
-- Rental income increased to $3.24 million in the fourth quarter,
but decreased to $13.0 million in the 12 months, from $2.99
million and $13.73 million in 2000. The fourth quarter increase
in rents was due to increased rental and occupancy rates at the
commercial properties and apartments. Lower 2001 rental income
was due to the sale of five income-producing properties in 2000.
-- Interest income decreased to $53,000 and $194,000 from $113,000
and $319,000 in the 2000 periods, due to a decrease in short-term
investments and a $1 million pay down on IOT's only note
receivable in 2001.
-- Equity in the income or loss of partnerships was income of
$19,000 in the fourth quarter and a loss of $9,000 in the 12
months, as compared to income of $10,000 and loss of $61,000 in
2000. The decrease was due to decreased operating expenses at a
commercial property.
Total expenses decreased to $3.57 million in the fourth quarter and $16.65 million in 2001, from $4.25 million and $18.07 million in the 2000 comparable periods, due to decreased property expense, lower general and administrative expense and no net income fee to affiliate in 2001. In fourth quarter and 12 months 2001:
-- Expense from operations decreased to $1.30 million and $6.59
million from $1.68 million and $6.97 million in the 2000
comparable periods. The 2001 decreases were due to properties
sold in 2000, mostly offset by increased utilities, maintenance
and insurance costs.
-- General and administrative expense decreased to $739,000 from
$1.5 million in 2000 due to a decrease in taxes.
-- Net income fees to affiliate decreased to zero in 2001, as
compared to $1.36 million in 2000.
-- Interest expense increased to $6.1 million in 2001, from $5.1
million in 2000 due to property purchases and the refinancing of
a loan. The 2001 increases were partially offset by property
sales, lower variable interest rates and decreased principal
balances.
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)
Year ended Quarter ended
Dec. 31, Dec. 31,
2001 2000 2001 2000
Income from rents $ 13,001 $ 13,731 $ 3,242 $ 2,999
Expense from operations 6,591 6,969 1,299 1,683
Operating income 6,410 6,762 1,943 1,316
Other income 185 258 72 123
Other expenses 10,057 11,104 2,269 2,567
Gain on sale of real
estate -- 20,878 -- --
(9,872) 10,032 (2,197) (2,444)
Net income (loss) $ (3,462) $ 16,794 $ (254) $ (1,128)
Earnings Per Share
Net income (loss) $ (2.32) $ 11.03 $ (.18) $ (.67)
Weighted average
common shares used
to compute earnings
per share 1,493,675 1,522,510 1,438,945 1,513,943
Funds (loss of funds)
from operations $ (1,035) $ (1,634) $ 381 $ (568)