-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ho3OYjwv9Ot2tQ+M6Cc7LBJaVQ/2c9wXVXVH2g2HJgxLaW4pnL/b61OL1/UJ3IzN zwxx+XX6xEtY31Ij0HYY4A== 0000930661-00-001297.txt : 20000516 0000930661-00-001297.hdr.sgml : 20000516 ACCESSION NUMBER: 0000930661-00-001297 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000331 FILED AS OF DATE: 20000515 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INCOME OPPORTUNITY REALTY INVESTORS INC /TX/ CENTRAL INDEX KEY: 0000949961 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 752615944 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-14784 FILM NUMBER: 631926 BUSINESS ADDRESS: STREET 1: 10670 N CENTRAL EXPRSWY STE 300 CITY: DALLAS STATE: TX ZIP: 75231 BUSINESS PHONE: 2146924700 MAIL ADDRESS: STREET 1: 10670 NORTH CENTRAL EXPRESSWAY STREET 2: SUITE 600 CITY: DALLAS STATE: TX ZIP: 75231 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTER ENDED MARCH 31, 2000 -------------- Commission File Number 1-14784 ------- INCOME OPPORTUNITY REALTY INVESTORS, INC. ------------------------------------------------------ (Exact Name of Registrant as Specified in Its Charter) NEVADA 75-2615944 - ------------------------------- ------------------- (State or Other Jurisdiction of (I.R.S. Employer Incorporation or Organization) Identification No.) 10670 North Central Expressway, Suite 300, Dallas, Texas, 75231 ----------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) (214) 692-4700 ------------------------------ (Registrant's Telephone Number, Including Area Code) Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X . No . --- --- Common Stock, $.01 par value 1,531,673 - ---------------------------- -------------------------------- (Class) (Outstanding at April 28, 2000) 1 PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS - ----------------------------- The accompanying Consolidated Financial Statements have not been audited by independent certified public accountants, but in the opinion of the management of Income Opportunity Realty Investors, Inc. ("IORI"), all adjustments (consisting of normal recurring accruals) necessary for a fair presentation of the IORI's consolidated financial position, consolidated results of operations and consolidated cash flows at the dates and for the periods indicated, have been included. INCOME OPPORTUNITY REALTY INVESTORS, INC. CONSOLIDATED BALANCE SHEETS March 31, December 31, 2000 1999 ----------- -------------- (dollars in thousands, except per share) Assets ------ Real estate held for investment, net of accumulated depreciation ($9,980 in 2000 and $9,509 in 1999).................................... $ 82,314 $ 86,542 Investment in partnerships.......................... 105 907 Cash and cash equivalents........................... 1,731 722 Other assets (including $421 in 2000 and $107 in 1999 from affiliates).............................. 2,980 3,014 -------- -------- $ 87,130 $ 91,185 ======== ======== Liabilities and Stockholders' Equity ------------------------------------ Liabilities Notes and interest payable.......................... $ 58,809 $ 62,852 Other liabilities (including $359 in 2000 and $721 in 1999 to affiliates)........................ 3,960 4,342 -------- -------- 62,769 67,194 Commitments and contingencies Stockholders' equity Common Stock, $.01 par value; authorized, 10,000,000 shares; issued and outstanding, 1,530,500 shares in 2000 and 1,528,908 in 1999.................................. 15 15 Paid-in capital..................................... 64,882 64,874 Accumulated distributions in excess of accumulated earnings........................................... (40,536) (40,898) -------- -------- 24,361 23,991 -------- -------- $ 87,130 $ 91,185 ======== ======== The accompanying notes are an integral part of these Consolidated Financial Statements. 2 INCOME OPPORTUNITY REALTY INVESTORS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS For the Three Months Ended March 31, ------------------------- 2000 1999 ----------- ---------- (dollars in thousands, except per share) Property revenue Rents..................................... $ 4,115 $ 3,728 Property expense Property operations...................... 1,848 1,672 ---------- ---------- Operating income........................ 2,267 2,056 Other income Interest.................................. 7 7 Equity in income/(loss) of partnerships.. (46) 52 Gain on sale of real estate.............. 903 -- ---------- ---------- 864 59 Other expense Interest.................................. 1,415 1,371 Depreciation.............................. 711 643 Advisory fee to affiliate................. 167 166 Net income fee to affiliate.............. 48 -- General and administrative................ 198 156 ---------- ---------- 2,539 2,336 ---------- ---------- Net income (loss).......................... $ 592 $ (221) ========== ========== Earnings Per Share Net income (loss)...................... $ .39 $ (.14) ========== ========== Weighted average Common shares used in computing earnings per share..................... 1,530,413 1,526,043 ========== ========== The accompanying notes are an integral part of these Consolidated Financial Statements. 3 INCOME OPPORTUNITY REALTY INVESTORS, INC. CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY For the Three Months Ended March 31, 2000
Accumulated Distributions Common Stock in Excess of ------------------ Paid-In Accumulated Stockholders' Shares Amount Capital Earnings Equity ---------- -------- ---------- -------------- ------------- (dollars in thousands, except per share) Balance, January 1, 2000.. 1,528,908 $ 15 $ 64,874 $ (40,898) $ 23,991 Sale of Common Stock under dividend reinvestment plan.................... 1,592 - 8 - 8 Dividends ($.15 per share) - - - (230) (230) Net income................ - - - 592 592 --------- ----- --------- ---------- --------- Balance, March 31, 2000... 1,530,500 $ 15 $ 64,882 $ (40,536) $ 24,361 ========= ===== ========= ========== =========
The accompanying notes are an integral part of these Consolidated Financial Statements. 4 INCOME OPPORTUNITY REALTY INVESTORS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, ------------------------ 2000 1999 ------- ------- (dollars in thousands) Cash Flows from Operating Activities Rents collected...................................... $ 4,047 $ 3,862 Payments for property operations..................... (1,840) (2,079) Interest collected................................... 7 7 Interest paid........................................ (1,358) (1,330) Advisory fee (to)/refunded from affiliate............ (169) 167 General and administrative expenses paid............. (202) (170) Distributions from equity partnership's operating cash flow......................................... 25 93 Other................................................ 242 431 ------- ------- Net cash provided by operating activities........... 752 981 Cash Flows from Investing Activities Funding of equity partnerships..................... (8) (1) Real estate improvements............................. (488) (866) Proceeds from sale of real estate.................. 906 - ------- ------- Net cash provided by (used in) investing activities....................................... 410 (867) Cash Flows from Financing Activities Payments on notes payable............................ (215) (236) Deferred financing costs........................... - (37) Distributions from equity partnerships' financing cash flow......................................... 739 -- Sale of Common Stock under dividend reinvestment plan.............................................. 8 -- Dividends to stockholders.......................... (230) (225) Advances from/payments (to) advisor................ (455) 486 ------- ------- Net cash (used in) financing activities............. (153) (12) Net increase in cash and cash equivalents............. 1,009 102 Cash and cash equivalents, beginning of period........ 722 103 ------- ------- Cash and cash equivalents, end of period.............. $ 1,731 $ 205 ======= ======= The accompanying notes are an integral part of these Consolidated Financial Statements. 5 INCOME OPPORTUNITY REALTY INVESTORS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS - Continued For the Three Months Ended March 31, ------------------------- 2000 1999 ----------- --------- (dollars in thousands) Reconciliation of net income (loss) to net cash provided by operating activities Net income (loss).................................... $ 592 $ (221) Adjustments to reconcile net income (loss) to net cash provided by operating activities Depreciation and amortization...................... 737 698 Gain on sale of real estate........................ (903) -- Equity in (income)/loss of partnerships............ 46 (52) Distributions from equity partnership's operating cash flow......................................... 25 93 Decrease in other assets............................ 443 875 Increase (decrease) in interest payable............. 31 (14) (Decrease) in other liabilities..................... (219) (398) -------- -------- Net cash provided by operating activities............ $ 752 $ 981 ======== ======== Schedule of noncash investing and financing activities Notes payable assumed by buyer on sale of real estate...................................... $ (3,829) $ -- The accompanying notes are an integral part of these Consolidated Financial Statements. 6 INCOME OPPORTUNITY REALTY INVESTORS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1. BASIS OF PRESENTATION - ----------------------------- The accompanying Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. Operating results for the three month period ended March 31, 2000 are not necessarily indicative of the results that may be expected for the year ending December 31, 2000. For further information, refer to the Consolidated Financial Statements and notes thereto included in IORI's Annual Report on Form 10-K for the year ended December 31, 1999 (the "1999 Form 10-K"). Certain balances for 1999 have been reclassified to conform to the 2000 presentation. NOTE 2. INVESTMENT IN EQUITY METHOD REAL ESTATE ENTITIES - -------------------------------------------------------- IORI owns a 36.3% general partner interest in Tri-City Limited Partnership ("Tri-City"), which owns the 70,275 sq. ft. Chelsea Square Shopping Center in Houston, Texas. In February 2000, Tri-City obtained mortgage financing of $2.1 million secured by the previously unencumbered shopping center. Tri-City received net cash of $2.0 million after the funding of required escrows and the payment of various closing costs. The mortgage bears interest at a fixed rate of 10.24% per annum until February 2001 and thereafter at a variable rate, requires monthly payments of principal and interest of $20,601 and matures in February 2005. IORI received a distribution of $739,000 of the net cash. NOTE 3. REAL ESTATE - ------------------- In March 2000, IORI sold the 128 unit La Monte Park Apartments in Houston, Texas, for $5.0 million, receiving net cash of $1.1 million after the payment of various closing costs. The purchaser assumed the $3.8 million mortgage secured by the property. A gain of $903,000 was recognized on the sale. NOTE 4. OPERATING SEGMENTS - -------------------------- Significant differences among the accounting policies of IORI's operating segments as compared to the Consolidated Financial Statements principally involve the calculation and allocation of general and administrative expenses. Management evaluates the performance of each of the operating segments and allocates resources to each of them based on their net operating income and cash flow. Expenses that are not reflected in the segments are $198,000 and $156,000 of general and administrative expenses for the three months ended March 31, 2000 and 1999, respectively. Excluded from operating segment assets are assets of $4.8 million at March 31, 2000, and $4.2 million at March 31, 1999, 7 INCOME OPPORTUNITY REALTY INVESTORS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued NOTE 4. OPERATING SEGMENTS (Continued) - -------------------------- which are not identifiable with an operating segment. There are no intersegment revenues and expenses and all business is conducted in the United States. Presented below is the operating income of each operating segment for the three months ended March 31, and each segment's assets at March 31. Commercial 2000 Properties Apartments Total ---------- ---------- ------- Rents........................ $ 2,589 $ 1,526 $ 4,115 Property operations.......... 1,007 841 1,848 ---------- ---------- ------- Segment operating income..... $ 1,582 $ 685 $ 2,267 ========== ========== ======= Depreciation................. $ 545 $ 166 $ 711 Interest..................... 919 496 1,415 Real estate improvements..... 488 -- 488 Assets....................... 56,238 26,076 82,314 Property sales: Apartments Total ---------- ------- Sales price................................. $ 5,000 $ 5,000 Cost of sale................................ 4,097 4,097 ---------- ------- Gain on sale................................ $ 903 $ 903 ========== ======= Commercial 1999 Properties Apartments Total ---------- ---------- -------- Rents....................... $ 2,422 $ 1,306 $ 3,728 Property operations......... 1,064 608 1,672 ---------- ---------- ------- Segment operating income.... $ 1,358 $ 698 $ 2,056 ========== ========== ======= Depreciation................ $ 490 $ 153 $ 643 Interest.................... 928 443 1,371 Real estate improvements.... 866 -- 866 Assets...................... 59,169 24,745 83,914 NOTE 5. COMMITMENTS AND CONTINGENCIES - ---------------------------------------- IORI is involved in various lawsuits arising in the ordinary course of business. Management is of the opinion that the outcome of these lawsuits will have no material impact on IORI's financial condition, results of operations or liquidity. NOTE 6. SUBSEQUENT EVENTS - ------------------------- In April 2000, IORI purchased, in separate transactions, Etheridge and Fambrough land, 75.1 acre and 75.0 acre parcels of unimproved land in Collin County, Texas, for $1.9 million each. IORI paid $545,000 in cash and obtained seller financing of the remaining $1.4 million of each of the purchase prices. The seller financing bears interest at 10.0% per annum, requires quarterly interest only payments, principal paydowns of $125,000 each in October 2000 and January 2001 and matures in April 2001. 8 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND - ----------------------------------------------------------------------- RESULTS OF OPERATIONS --------------------- Introduction - ------------ IORI invests in equity interests in real estate through direct equity ownership and partnerships and has invested in mortgage loans on real estate. IORI is the successor to a California business trust organized on December 14, 1984, which commenced operations on April 10, 1985. Liquidity and Capital Resources - ------------------------------- Cash and cash equivalents at March 31, 2000, were $1.7 million, compared with $722,000 at December 31, 1999. IORI's principal sources of cash have been, and will continue to be property operations, proceeds from property sales, financings and refinancings, partnership distributions and, to the extent necessary, advances from its advisor. IORI's cash from property operations (rents collected less payments for expenses applicable to rental income) increased to $2.2 million in the three months ended March 31, 2000, from $1.8 million in 1999. The increase was primarily due to the acquisition of the Meridian Apartments in 1999 as well as an increase in rental rates and a decrease in vacancies at IORI's apartment and commercial properties. General and administrative expenses paid of $202,000 in the three months ended March 31, 2000, approximated the $170,000 in 1999. Distributions from equity partnership's operating cash flow were $25,000 for the three months ended March 31, 2000, compared to $93,000 in 1999. Under its advisory agreement, all or a portion of the annual advisory fee must be refunded by the advisor if the operating expenses of IORI exceed certain limits specified in the advisory agreement. IORI did not receive the refund of $289,000 of its 1999 advisory fee until April 2000. In 1999, IORI received the refund of $167,000 of its 1998 advisory fee in March 1999. Other cash from operating activities decreased to $242,000 for the three months ended March 31, 2000, from $431,000 in 1999. In the first quarter of 2000, IORI received distributions from an equity partnerships' financing cash flow of $739,000. In the first quarter of 2000, IORI paid dividends of $.15 per share or a total of $230,000, and 1,592 shares of Common Stock were sold through the dividend reinvestment program for a total of $8,000. In March 2000, IORI sold the 128 unit La Monte Park Apartments in Houston, Texas, for $5.0 million, receiving net cash of $1.1 million after the payment of various closing costs. The purchaser assumed the $3.8 million mortgage secured by the property. In April 2000, IORI purchased, in separate transactions, Etheridge and Fambrough land, 75.1 acre and 75.0 acre parcels of unimproved land in 9 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND - ----------------------------------------------------------------------- RESULTS OF OPERATIONS (Continued) --------------------- Liquidity and Capital Resources (Continued) - ------------------------------- Collin County, Texas, for $1.9 million each. IORI paid $545,000 in cash and obtained seller financing of the remaining $1.4 million of each of the purchase prices. Management reviews the carrying values of IORI's properties at least annually and whenever events or a change in circumstances indicate that impairment may exist. Impairment is considered to exist if, in the case of a property, the future cash flow from the property (undiscounted and without interest) is less than the carrying amount of the property. If impairment is found to exist, a provision for loss is recorded by a charge against earnings. The property review generally includes selective property inspections, discussions with the manager of the property visits to selected properties in the area and a review of the following: (1) the property's current rents compared to market rents, (2) the property's expenses, (3) the property's maintenance requirements, and (4) the property's cash flows. Results of Operations - --------------------- For the three months ended March 31, 2000, IORI had net income of $592,000, including gains on the sale of real estate of $903,000, as compared to a net loss of $221,000 for the three months ended March 31, 1999. Fluctuations in components of revenue and expense between the 1999 and 2000 periods are discussed below. Rents in the three months ended March 31, 2000, increased to $4.1 million from $3.7 million in 1999. The increase in rents was primarily due to the acquisition of the Meridian Apartments in 1999, as well as an increase in rental rates and a decrease in vacancies at IORI's other apartment and commercial properties. Rents for the remainder of 2000 are expected to decline as IORI selectively sells properties. Property operations expense of $1.8 million in the three months ended March 31, 2000, approximated the $1.7 million in 1999. Property operations expenses are expected to decline as IORI selectively sells properties. Interest income was constant at $7,000 in the three months ended March 31, 2000, and 1999. Interest income for the remainder of 2000 is expected to be insignificant. Interest expense was constant at $1.4 million in the three months ended March 31, 2000 and 1999. Interest expense for the remaining quarters of 2000 is expected to decline as IORI selectively sells properties. Depreciation expense increased to $711,000 in the three months ended March 31, 2000, from $643,000 in 1999. The increase was due to increased depreciation of capital and tenant improvements at IORI's commercial properties as well as the acquisition of the Meridian Apartments in 1999. Depreciation expense is expected to decline as IORI selectively sells properties. 10 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND - ----------------------------------------------------------------------- RESULTS OF OPERATIONS (Continued) --------------------- Results of Operations (Continued) - --------------------- Advisory fee expense of $167,000 in the three months ended March 31, 2000, approximated $166,000 in 1999. IORI's gross assets are the basis for such fee. Advisory fee expense is expected to decline as IORI selectively sells properties. General and administrative expense increased to $198,000 in the three months ended March 31, 2000, from $156,000 in 1999. The increase is due to an increase in legal and accounting and reporting fees as well as an increase in insurance expense. General and administrative expense for the remaining quarters of 2000 is expected to approximate that of the first quarter of 2000. Tax Matters - ----------- As more fully discussed in IORI's 1999 Form 10-K, IORI has elected and, in management's opinion, qualified, to be taxed as a real estate investment trust ("REIT"), as defined under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended, (the "Code"). To continue to qualify for federal taxation as a REIT under the Code, IORI is required to hold at least 75% of the value of its total assets in real estate assets, government securities, cash and cash equivalents at the close of each quarter of each taxable year. The Code also requires a REIT to distribute at least 95% of its REIT taxable income plus 95% of its net income from foreclosure property, all as defined in Section 857 of the Code, on an annual basis to shareholders. Inflation - --------- The effects of inflation on IORI's operations are not quantifiable. Revenues from apartment operations tend to fluctuate proportionately with inflationary increases and decreases in housing costs. Fluctuations in the rate of inflation also affect the sales value of properties and the ultimate gain to be realized from property sales. To the extent that inflation affects interest rates, earnings from short-term investments and the cost of new financings, as well as the cost of variable interest rate debt, will be affected. Environmental Matters - --------------------- Under various federal, state and local environmental laws, ordinances and regulations, IORI may be potentially liable for removal or remediation costs, as well as certain other potential costs, relating to hazardous or toxic substances (including governmental fines and injuries to persons and property) where property-level managers have arranged for the removal, disposal or treatment of hazardous or toxic substances. In addition, certain environmental laws impose liability for release of asbestos-containing materials into the air and third parties may seek recovery for personal injury associated with such materials. 11 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND - ----------------------------------------------------------------------- RESULTS OF OPERATIONS (Continued) --------------------- Environmental Matters (Continued) - --------------------- Management is not aware of any environmental liability relating to the above matters that would have a material adverse effect on IORI's business, assets or results of operations. Year 2000 - --------- Even though January 1, 2000, has passed, and no adverse impact from the transition to the year 2000 has been experienced, no assurance can be provided that IORI's suppliers and tenants have not been affected in a manner that is not yet apparent. As a result, management will continue to monitor IORI's year 2000 compliance and the year 2000 compliance of IORI's suppliers and tenants. ------------------------------------- PART II. OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS - ------------------------- Olive Litigation. In February 1990, IORI, together with Continental Mortgage and Equity Trust ("CMET"), National Income Realty Trust and Transcontinental Realty Investors, Inc. ("TCI"), three real estate entities with, at the time, the same officers, directors or trustees and advisor as IORI, entered into a settlement (the "Settlement") of a class and derivative action entitled Olive et al. v. National Income Realty Trust et al. relating to the operation and management of each of the entities (the "Olive Litigation"). On April 23, 1990, the Court granted final approval of the terms of the Settlement. On January 27, 1997, the parties entered into an Amendment to the Settlement effective January 9, 1997 (the "Olive Amendment"). The Olive Amendment provided for the settlement of additional matters raised by plaintiffs' counsel in 1996. The Court issued an order approving the Olive Amendment on July 3, 1997. The Olive Amendment provided that IORI's Board of Directors retain a management/compensation consultant or consultants to evaluate the fairness of IORI's advisory contract with Basic Capital Management, Inc. and any contract of its affiliates with TCI, CMET and IORI, including, but no limited to, the fairness to TCI, CMET and IORI of such contracts relative to other means of administration. In 1998, the Board engaged a management/compensation consultant to perform the evaluation which was completed in September 1998. In 1999, plaintiffs' counsel asserted that the Board did not comply with the provision requiring such engagement and requested that the Court 12 ITEM 1. LEGAL PROCEEDINGS (Continued) - ------------------------- exercise its retained jurisdiction to determine whether there was a breach of this provision of the Olive Amendment. Although several status conferences have been held on this matter, there has been no Court order resolving whether there was any breach of the Olive Amendment. In January 2000, the Board engaged another management/compensation consultant to perform the required evaluation again. This evaluation was completed in April 2000 and was provided to plaintiffs' counsel. The Board believes that any alleged breach of the Olive Amendment has been fully remedied by the Board's engagement of the second consultant. The provisions of the Settlement and Olive Amendment terminated on April 28, 1999. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K - ---------------------------------------- (a) Exhibits: Exhibit Number Description - ------- --------------------------------------------------------- 27.0 Financial Data Schedule, filed herewith. (b) Reports on Form 8-K as follows: None. 13 SIGNATURE PAGE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. INCOME OPPORTUNITY REALTY INVESTORS, INC. Date: May 15, 2000 By: /s/ Karl L. Blaha ------------------------ ---------------------------------- Karl L. Blaha President Date: May 15, 2000 By: /s/ Thomas A. Holland ------------------------ ---------------------------------- Thomas A. Holland Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) 14 INCOME OPPORTUNITY REALTY INVESTORS, INC. EXHIBITS TO QUARTERLY REPORT ON FORM 10-Q For the Three Months Ended March 31, 2000 Exhibit Page Number Description Number - ------- ------------------------------------------------ ------ 27.0 Financial Data Schedule. 15 EX-27 2 FINANCIAL DATA SCHEDULE
5 1,000 3-MOS DEC-31-2000 JAN-01-2000 MAR-31-2000 1,731 0 0 0 0 0 92,294 9,980 87,130 0 58,809 0 0 15 24,346 87,130 0 4,115 0 1,848 711 0 1,415 592 0 592 0 0 0 592 .39 .39
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