Income Opportunity Realty Investors, Inc. (IOR) Bundle
A Brief History of Income Opportunity Realty Investors, Inc.
Income Opportunity Realty Investors, Inc. (IOR) is an externally managed company that primarily invests in mortgage notes receivable, focusing on income-producing properties in the Southern United States. The company is significantly owned by Transcontinental Realty Investors, Inc. (TCI), which holds approximately 83.2% of IOR's stock, and its financial results are consolidated within TCI's filings.
Company Structure and Management
As of 2024, IOR is managed by Pillar Income Asset Management, Inc. under an advisory agreement, which is reviewed annually by the Board of Directors. Pillar is considered a related party due to its common ownership structure.
Financial Overview
As of September 30, 2024, IOR reported total assets of $120.8 million, an increase from $118.1 million at the end of 2023. The company’s current assets include cash and cash equivalents amounting to $14, and receivables from related parties totaling $109.5 million.
| Financial Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $120.8 million | $118.1 million |
| Cash and Cash Equivalents | $14,000 | $71,000 |
| Receivables from Related Parties | $109.5 million | $106.5 million |
| Total Liabilities | $1,003,000 | $3,000 |
| Total Shareholders' Equity | $120.8 million | $118.1 million |
Performance Metrics
In the nine months ended September 30, 2024, IOR reported a net income of $3.5 million, compared to $4.5 million in the same period of the previous year. The earnings per share for the same period were $0.87, a decrease from $1.09.
| Performance Metrics | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|
| Net Income | $3.5 million | $4.5 million |
| Earnings Per Share | $0.87 | $1.09 |
Stock Repurchase Program
IOR has an ongoing stock repurchase program allowing the buyback of up to 1.65 million shares. As of September 30, 2024, the company has repurchased a total of 1,136,997 shares, with 513,003 shares remaining available for repurchase.
Recent Developments
The company amended its notes receivable agreements with Unified Housing Foundation, Inc. (UHF) on October 1, 2023, consolidating four notes into a single note with a new interest rate indexed to SOFR.
Liquidity and Cash Flow
For the nine months ending September 30, 2024, IOR reported net cash provided by operating activities of $718,000, a significant increase from $6,000 in the prior year. The cash flow from investing activities was $27,000, while the cash flow from financing activities was a net outflow of $802,000.
| Cash Flow Metrics | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $718,000 | $6,000 |
| Net Cash Provided by Investing Activities | $27,000 | $0 |
| Net Cash Used in Financing Activities | ($802,000) | $0 |
As of November 7, 2024, IOR had 4,066,178 shares of common stock outstanding.
A Who Owns Income Opportunity Realty Investors, Inc. (IOR)
Major Shareholders
As of 2024, the primary ownership structure of Income Opportunity Realty Investors, Inc. (IOR) is as follows:
- Transcontinental Realty Investors, Inc. (TCI) owns 83.2% of IOR's stock.
- With its affiliates, TCI collectively owns approximately 89.8% of IOR's common stock.
- American Realty Investors, Inc. (ARL) owns approximately 78.4% of TCI.
| Entity | Ownership Percentage |
|---|---|
| Transcontinental Realty Investors, Inc. (TCI) | 83.2% |
| TCI and Affiliates | 89.8% |
| American Realty Investors, Inc. (ARL) | 78.4% of TCI |
Related Party Management
The management of IOR is conducted by Pillar Income Asset Management, Inc. (Pillar), which is considered a related party. Pillar is responsible for locating, evaluating, and recommending real estate investments.
Financial Overview
The financial results of IOR are consolidated within TCI's financial statements, thus reflecting the significant ownership structure:
- Total assets as of September 30, 2024: $120.8 million
- Total shareholders’ equity as of September 30, 2024: $120.8 million
- Net income for the nine months ended September 30, 2024: $3.5 million
| Financial Metric | Value (in thousands) |
|---|---|
| Total Assets | 120,817 |
| Total Shareholders' Equity | 120,814 |
| Net Income (9 months ended Sep 30, 2024) | 3,538 |
Recent Activities
IOR has a stock repurchase program allowing for the repurchase of up to 1,650,000 shares. As of September 30, 2024, 44,536 shares were repurchased for a total of $802,000.
| Repurchase Activity | Details |
|---|---|
| Total Shares Authorized for Repurchase | 1,650,000 |
| Shares Repurchased (as of Sep 30, 2024) | 44,536 |
| Total Amount Spent on Repurchases | $802,000 |
| Remaining Shares Available for Repurchase | 513,003 |
Ownership Summary
Overall, the ownership of IOR is significantly concentrated, with TCI and ARL holding the majority of shares, indicating a strong influence over the company's strategic direction and financial outcomes.
Income Opportunity Realty Investors, Inc. (IOR) Mission Statement
Company Overview
Income Opportunity Realty Investors, Inc. (IOR) is an externally managed real estate investment company that primarily invests in mortgage notes receivables. The company's operations are managed by Pillar Income Asset Management, Inc., which is considered a related party due to shared ownership with Transcontinental Realty Investors, Inc.
Mission Statement
As of 2024, the mission of Income Opportunity Realty Investors, Inc. is to maximize returns for its shareholders through strategic investments in income-producing properties and related mortgage notes, while maintaining a commitment to prudent financial management and responsible investment practices.
Financial Performance
In the third quarter of 2024, IOR reported the following financial results:
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Net Income | $1,198,000 | $1,643,000 | $3,538,000 | $4,527,000 |
| Earnings Per Share (Basic and Diluted) | $0.29 | $0.39 | $0.87 | $1.09 |
| Total Assets | $120,817,000 | N/A | $120,817,000 | N/A |
| Total Shareholders' Equity | $120,814,000 | N/A | $120,814,000 | N/A |
| Cash and Cash Equivalents | $14,000 | $12,000 | $14,000 | $12,000 |
Investment Strategy
IOR focuses on investing in mortgage notes receivables that are secured by income-producing properties, particularly in the Southern United States. The company aims to generate consistent income through interest from these notes, leveraging its relationship with Pillar for investment opportunities.
Related Party Transactions
As of September 30, 2024, the company reported receivables from related parties amounting to $109,493,000. Interest income from related party receivables for Q3 2024 was $1,464,000, compared to $2,178,000 in Q3 2023.
Stock Repurchase Program
IOR has a stock repurchase program allowing for the repurchase of up to 1,650,000 shares of its common stock. As of September 30, 2024, 44,536 shares were repurchased for a total of $802,000, with 513,003 shares remaining eligible for repurchase.
How Income Opportunity Realty Investors, Inc. (IOR) Works
Company Overview
Income Opportunity Realty Investors, Inc. (IOR) is an externally managed real estate investment company that primarily invests in mortgage notes receivable. The company is managed by Pillar Income Asset Management, Inc., which is a related party due to common ownership with Transcontinental Realty Investors, Inc. (TCI), the controlling shareholder of IOR.
Financial Performance
As of September 30, 2024, IOR reported a net income of $1,198,000 for the three months ended, compared to $1,643,000 for the same period in 2023. For the nine months ended September 30, 2024, the net income was $3,538,000, down from $4,527,000 in 2023.
| Financial Metrics | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Income | $1,198,000 | $1,643,000 | $3,538,000 | $4,527,000 |
| Earnings per Share (Basic and Diluted) | $0.29 | $0.39 | $0.87 | $1.09 |
| Weighted Average Common Shares | 4,070,327 | 4,168,414 | 4,085,134 | 4,168,414 |
Revenue and Expenses
During the three months ended September 30, 2024, IOR reported total operating expenses of $97,000, down from $437,000 in the prior year. The decrease in expenses was primarily due to lower general and administrative costs and advisory fees paid to related parties.
Interest income from related parties was reported at $1,614,000 for the three months ended September 30, 2024, compared to $2,516,000 in 2023.
Balance Sheet Insights
As of September 30, 2024, IOR's total assets amounted to $120,817,000, with total liabilities of $3,000 and total shareholders’ equity of $120,814,000.
| Balance Sheet Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $120,817,000 | $118,078,000 |
| Total Liabilities | $3,000 | $0 |
| Total Shareholders’ Equity | $120,814,000 | $118,078,000 |
Cash Flow Analysis
For the nine months ended September 30, 2024, IOR reported net cash provided by operating activities of $718,000. The net cash used in financing activities was $802,000 due to the repurchase of common shares. The cash and cash equivalents at the end of the period were $14,000.
| Cash Flow Metrics | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|
| Net Income | $3,538,000 | $4,527,000 |
| Net Cash Provided by Operating Activities | $718,000 | $6,000 |
| Net Cash Used in Financing Activities | ($802,000) | $0 |
| Cash and Cash Equivalents, End of Period | $14,000 | $12,000 |
Shareholder Equity and Stock Repurchase Program
As of September 30, 2024, IOR had repurchased a total of 44,536 shares during the nine months ended September 30, 2024, for a total of $802,000. The company maintains a stock repurchase program with a remaining capacity to repurchase 513,003 shares.
Related Party Transactions
The company engages in several transactions with related parties, notably with Pillar Income Asset Management. Advisory fees paid to Pillar were $26,000 for the three months ended September 30, 2024, compared to $346,000 in the previous year. For the nine-month period, advisory fees were $76,000 compared to $1,045,000 in 2023.
| Related Party Transactions | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Advisory Fees | $26,000 | $346,000 | $76,000 | $1,045,000 |
Liquidity and Capital Resources
As of September 30, 2024, IOR's cash and cash equivalents, alongside expected cash generated from related party receivables, are anticipated to be sufficient to meet current cash requirements.
How Income Opportunity Realty Investors, Inc. (IOR) Makes Money
Revenue Sources
Income Opportunity Realty Investors, Inc. primarily generates revenue through interest income from mortgage notes receivable. The company has a significant investment in these notes, particularly from related parties.
Interest Income
For the three months ended September 30, 2024, IOR reported interest income from related parties amounting to $1,614,000. In comparison, for the same period in 2023, the interest income was $2,516,000. For the nine months ending September 30, 2024, the interest income totaled $4,785,000, down from $7,160,000 in 2023.
| Period | Interest Income from Related Parties |
|---|---|
| Q3 2024 | $1,614,000 |
| Q3 2023 | $2,516,000 |
| 9 Months 2024 | $4,785,000 |
| 9 Months 2023 | $7,160,000 |
Operating Expenses
Operating expenses for IOR include general and administrative costs and advisory fees. For the three months ended September 30, 2024, the total operating expenses were $97,000, compared to $437,000 for the same period in 2023. For the nine-month period, expenses were $306,000 in 2024, down from $1,430,000 in 2023.
| Period | Total Operating Expenses |
|---|---|
| Q3 2024 | $97,000 |
| Q3 2023 | $437,000 |
| 9 Months 2024 | $306,000 |
| 9 Months 2023 | $1,430,000 |
Net Income
Net income for the three months ended September 30, 2024, was $1,198,000, compared to $1,643,000 in 2023. For the nine months ended September 30, 2024, net income stood at $3,538,000, down from $4,527,000 in the previous year.
| Period | Net Income |
|---|---|
| Q3 2024 | $1,198,000 |
| Q3 2023 | $1,643,000 |
| 9 Months 2024 | $3,538,000 |
| 9 Months 2023 | $4,527,000 |
Liquidity and Capital Resources
As of September 30, 2024, IOR reported total assets of $120,817,000, which includes $109,671,000 in current assets and $11,146,000 in notes receivable from related parties. The company’s total liabilities were minimal, with accounts payable reported at $3,000.
| Category | Amount |
|---|---|
| Total Assets | $120,817,000 |
| Current Assets | $109,671,000 |
| Notes Receivable from Related Parties | $11,146,000 |
| Accounts Payable | $3,000 |
Stock Repurchase Program
IOR has a stock repurchase program allowing the buyback of up to 1,650,000 shares of common stock. As of September 30, 2024, there were 513,003 shares remaining that could be repurchased. During the nine months ended September 30, 2024, a total of 44,536 shares were repurchased for $802,000.
| Detail | Amount |
|---|---|
| Total Shares Authorized for Repurchase | 1,650,000 |
| Shares Repurchased (9 Months 2024) | 44,536 |
| Total Cost of Shares Repurchased | $802,000 |
| Remaining Shares for Repurchase | 513,003 |
Overall, IOR's revenue generation is primarily driven by interest income from related party mortgage notes, with a focus on managing operating expenses effectively to maintain profitability.
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Resources:
- Income Opportunity Realty Investors, Inc. (IOR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Income Opportunity Realty Investors, Inc. (IOR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Income Opportunity Realty Investors, Inc. (IOR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.