Income Opportunity Realty Investors, Inc. (AMEX:IOT), a Dallas-based real estate investment company, today reported results of operations for the first quarter ended March 31, 2010. IOT announced today that the Company reported a net income applicable to common shares of $163,000 or $0.04 per share for the period ended March 31, 2010, as compared to a net income applicable to common shares of ($368,000) or ($0.09) per share for the same period ended 2009.
In October 2009, IOT sold two commercial properties, thereby liquidating their ownership of income-producing properties. IOT continues to invest in their land holdings, which is currently comprised of approximately 203 acres of land located in Texas. The Company’s primary source of revenue is interest income on over $38.7 million of notes receivable. There is also a warehouse located on one of the land parcels that is used for storage and generates some revenues from the leasing of that space. Operating expenses relate mainly to the administration and maintenance costs associated with their land holdings and storage space.
Rental and other property revenues were $61,000 for the three months ended March 31, 2010. This represents a decrease of $8,000, as compared to the prior period revenues of $69,000, due to a decrease in rental income received from leasing of the storage warehouse.
Property operating expenses were $52,000 for the three months ended March 31, 2010. This represents an increase of $10,000, as compared to the prior period operating expenses of $42,000. There was a decrease of $17,000 from the storage warehouse expenses and an increase in the expenses related to land holdings of $27,000. The land portfolio increase in expenses related to professional services and POA fees.
General and administrative expenses were $56,000 for the three months ended March 31, 2010. This represents an increase of $94,000, as compared to the prior period, of which had a credit balance of ($38,000). This increase was due to the over accrual of 2008 franchise taxes, adjusted in 2009, in the amount of $82,000 and $16,000 in accounting fees accrued for the first three months of 2010, without a similar accrual in the prior period. The remaining decrease was due to decreases in various corporate related expenses. General and administrative costs did not increase in the current period, although due to the credits recorded in the prior period, by comparison, there was an increase in expenses.