Income Opportunity Realty Investors Reports $4.7 Million Net Income for Fiscal Year 2024

Income Opportunity Realty Investors, Inc. reported a net income of $4.7 million for the fiscal year ending December 31, 2024, a decrease from $7.0 million in 2023. The decline in profitability was primarily attributed to a $3.8 million drop in interest income, which was influenced by lower interest rates during the year. The company’s total operating expenses decreased to $412,000 from $1.5 million in the previous year, reflecting a reduction in general and administrative costs and advisory fees paid to related parties.

The company’s financial position showed a slight increase in total assets, rising to $121.9 million from $118.1 million in 2023. This growth was driven by a marginal increase in receivables from related parties, which amounted to $110.5 million at the end of 2024, compared to $106.5 million in the prior year. The company’s cash and cash equivalents, however, decreased to $9,000 from $71,000, indicating tighter liquidity conditions.

Strategically, Income Opportunity Realty Investors continues to focus on its core business of investing in mortgage notes receivable, particularly from related parties such as Unified Housing Foundation, Inc. (UHF). The company amended its existing notes with UHF, consolidating four notes into a single note with a floating interest rate indexed to the Secured Overnight Financing Rate (SOFR). This change aims to enhance the company’s financial flexibility and align its interest income with current market conditions.

Operationally, the company has no employees, relying entirely on Pillar Income Asset Management, Inc. for management services. As of December 31, 2024, the company had a total of 4,066,178 shares outstanding, with Transcontinental Realty Investors, Inc. holding an 83.7% ownership stake. The company has also implemented a stock repurchase program, repurchasing 44,536 shares during the year, which reflects its strategy to manage capital effectively.

Looking ahead, Income Opportunity Realty Investors anticipates that its cash flow from notes receivable will be sufficient to meet its operational needs. However, the company acknowledges potential risks, including reliance on related party transactions and market conditions that could impact its financial performance. The management remains committed to monitoring these factors closely as it navigates the evolving economic landscape.