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Income Opportunity Realty Investors, Inc. Reports Third Quarter 2018 Results

November 13, 2018

DALLAS--(BUSINESS WIRE)--Nov 13, 2018--Income Opportunity Realty Investors, Inc. (NYSE American:IOR), a Dallas-based real estate investment company, today reported results of operations for the third quarter ended September 30, 2018. For the three months ended September 30, 2018, we reported a net income applicable to common shares of $5.9 million or $1.44 per diluted share for the three months ended September 30, 2018, as compared to net income of $0.6 million or $0.15 per diluted share for the same period ended 2017.

Our primary business is investing in real estate and mortgage note receivables. Land held for development or sale has been our sole operating segment.

Revenues

Land held subject to a sales contract has been our sole operating segment. There was no operating revenue generated from this segment for the three months ended September 30, 2018, as well as the similar period in 2017. As of September 30, 2018, all land was sold and in the three months ended September 30, 2018 a gain in the amount of $7.3 million was recognized.

Expenses

There were no property operating expenses for the three months ended September 30, 2018 as well as in the similar period in 2017.

General and administrative expenses were $83,000 for the three months ended September 30, 2018. This represents a decrease of $10,000, as compared to the prior period general and administrative expenses of $93,000. This decrease was primarily due to an increase in audit fees and cost reimbursements to our Advisor of approximately $2,000 offset by a decrease in legal fees of approximately $12,000.

Advisory fees were $168,000 for the three months ended September 30, 2018 compared to $166,000 for the same period of 2017 for an increase of $2,000. Advisory fees are computed based on a gross asset fee of 0.0625% per month (0.75% per annum) of the average of the gross asset value.

Net income fee to related party increased $330,000 to $383,000 for the three months ended September 30, 2018 compared to the prior period. The net income fee paid to our Advisor is calculated at 7.5% of net income.

Other income (expense)

Interest income increased to $1.2 million for the three months ended September 30, 2018 compared to $0.9 million for the same period of 2017. The increase of $0.3 million was due primarily to increase in advisory fee balance.

About Income Opportunity Realty Investors, Inc.

Income Opportunity Realty Investors, Inc., a Dallas-based real estate investment company, holds a portfolio of equity real estate in Texas, including undeveloped land. The Company invests in real estate through direct equity ownership and partnerships. For more information, visit the Company’s website at www.incomeopp-realty.com.

View source version on businesswire.com:https://www.businesswire.com/news/home/20181113006204/en/

CONTACT: Income Opportunity Realty Investors, Inc.

Investor Relations

Gene Bertcher (800) 400-6407

investor.relations@incomeopp-realty.com

KEYWORD: UNITED STATES NORTH AMERICA TEXAS

INDUSTRY KEYWORD: REIT CONSTRUCTION & PROPERTY COMMERCIAL BUILDING & REAL ESTATE

SOURCE: Income Opportunity Realty Investors, Inc.

Copyright Business Wire 2018.

PUB: 11/13/2018 04:53 PM/DISC: 11/13/2018 04:53 PM

http://www.businesswire.com/news/home/20181113006204/en

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