-----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, Vmd4Kl8cxa4AwXk7STXTw+cHpNo85R+sYdOe5NyUmTKb896xDHdjtx1U1yu2KBW3 p3mfSDbVtqN411GzJLoqAQ== 0000950134-97-000247.txt : 19981116 0000950134-97-000247.hdr.sgml : 19981116 ACCESSION NUMBER: 0000950134-97-000247 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961113 ITEM INFORMATION: FILED AS OF DATE: 19970115 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INCOME OPPORTUNITY REALTY INVESTORS INC /TX/ CENTRAL INDEX KEY: 0000949961 STANDARD INDUSTRIAL CLASSIFICATION: 6798 IRS NUMBER: 752615944 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: SEC FILE NUMBER: 001-14784 FILM NUMBER: 97506240 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 8-K/A 1 AMENDMENT NO. 1 TO FORM 8-K 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K/A CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 November 13, 1996 --------------------------------------------------------- Date of Report (Date of Earliest Event Reported) INCOME OPPORTUNITY REALTY INVESTORS, INC. ------------------------------------------------------------------ (Exact Name of Registrant as Specified in its Charter) Nevada 1-9525 75- 2615944 - - ------------------------------------------------------------------------------- (State of Incorporation) (Commission (IRS Employer File No.) Identification No.) 10670 North Central Expressway, Suite 300, Dallas, TX 75231 - - ------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) Registrant's Telephone Number, Including Area Code: (214) 692-4700 ---------------- Not Applicable ------------------------------------------------------------------ (Former Name or Former Address, if Changed Since Last Report) 1 2 ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS This Form 8-K/A amends a Form 8-K Current Report dated November 13, 1996 and filed November 27, 1996 by Income Opportunity Realty Investors, Inc. (the "Company") and provides required financial statements that were not available at the date of the original filing. (a) Pro forma financial information: Pro forma statements of operations are presented for the year ended December 31, 1995 and the nine months ended September 30, 1996. A pro forma balance sheet as of September 30, 1996 is also presented. A summary of the pro forma transaction follows: On November 13, 1996, the Company purchased the Olympic Building, a 57,000 square foot office building in Los Angeles, California for $6.0 million, exclusive of commissions and closing costs. The Company paid $1.5 million in cash and received mortgage financing of $4.5 million. The mortgage bears interest at a variable rate, currently at 9.25%, requires monthly principal and interest payments of $38,531 and matures November 2003. The purchase price is approximately 12.2% of the Company's assets at December 31, 1995. In addition to the Olympic Building acquisition discussed above, in September 1996, the Company purchased the Daley Plaza Corporate Center, an office building in San Diego, California. The property was purchased for $7.1 million exclusive of commissions and closing costs. The Company paid $3.6 million in cash and financed the remainder of the purchase price. The mortgage secured by the property bears interest at 6% per annum and matures in 1997. These proforma statements of operations present the Company's operations as if the purchase transactions described above had occurred at the beginning of each of the periods presented. [THIS SPACE INTENTIONALLY LEFT BLANK.] 2 3 INCOME OPPORTUNITY REALTY INVESTORS, INC. PRO FORMA CONSOLIDATED BALANCE SHEET SEPTEMBER 30, 1996
Olympic Actual(1) Building (2) Pro forma ----------- ------------- ----------- Assets (dollars in thousands) ------ Notes and interest receivable Performing............................................................... $ 1,995 $ -- $ 1,995 ----------- ----------- ----------- 1,995 -- 1,995 Less - allowance for estimated losses ..................................... -- -- -- ----------- ----------- ----------- 1,995 -- 1,995 Foreclosed real estate held for sale, net of accumulated depreciation ............................................................ 914 -- 914 Less - allowance for estimated losses ..................................... -- -- -- ----------- ----------- ----------- 914 -- 914 Real estate held for investment, net of accumulated depreciation ............................................................ 46,352 6,319 52,671 Investments in partnerships ............................................... 2,351 -- 2,351 Cash and cash equivalents ................................................. 4,725 (1,876) 2,849 Other assets .............................................................. 3,185 -- 3,185 ----------- ----------- ----------- $ 59,522 $ 4,443 $ 63,965 =========== =========== =========== Liabilities and Shareholders' Equity Liabilities Notes and interest payable ................................................ $ 34,472 $ 4,500 $ 38,972 Other liabilities ......................................................... 2,538 -- 2,538 ----------- ----------- ----------- 37,010 4,500 41,510 Commitments and contingencies Shareholders' equity Shares of Beneficial Interest, no par value; authorized shares, unlimited; issued and outstanding, 1,519,888 shares ............. 15 -- 15 Paid-in capital ........................................................... 64,804 -- 64,804 Accumulated distributions in excess of accumulated earnings ................................................................ (42,307) (57) (42,364) ----------- ----------- ----------- 22,512 (57) 22,455 ----------- ----------- ----------- $ 59,522 $ 4,443 $ 63,965 =========== =========== ===========
- - --------------- (1) Includes the Daley Plaza Corporate Center which was acquired in September 1996. (2) Assumes the acquisition of the Olympic Building occurred on September 30, 1996. 3 4 INCOME OPPORTUNITY REALTY INVESTORS, INC. PRO FORMA STATEMENT OF OPERATIONS NINE MONTHS ENDED SEPTEMBER 30, 1996
Olympic Daley Corporate Actual Building (1) Center (1) Pro forma ----------- ----------- ------------- ----------- (dollars in thousands, except per share) Income Rents ........................... $ 6,149 $ 615 $ 993 $ 7,757 Interest ........................ 248 -- -- 248 ----------- ----------- ----------- ----------- 6,397 615 993 8,005 Expenses Property operations ............. 3,198 239 267 3,704 Equity in (income) of investees .................... (29) -- -- (29) Interest ........................ 1,803 312 161 2,276 Depreciation .................... 792 95 113 1,000 Advisory fee to affiliate ....... 302 -- -- 302 General and administrative ...... 918 -- -- 918 ----------- ----------- ----------- ----------- 6,984 646 541 8,171 Net income (loss) ................. $ (587) $ (31) $ 452 $ (166) =========== =========== =========== =========== Earnings per share Net (loss) ...................... $ (.38) $ (.11) =========== =========== Weighted average shares of Common Stock used in computing earnings per share ........................ 1,533,406 1,533,406 =========== ===========
- - ---------------------- (1) Assumes acquisition by the Company on January 1, 1996. 4 5 INCOME OPPORTUNITY REALTY INVESTORS, INC. PRO FORMA STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1995
Olympic Daley Corporate Actual Building (1) Center (1) Pro forma ----------- ----------- ----------- ----------- (dollars in thousands, except per share) Income Rents ................................ $ 7,688 $ 820 $ 1,324 $ 9,832 Interest ............................. 231 -- -- 231 ----------- ----------- ----------- ----------- 7,919 820 1,324 10,063 Expenses Property operations .................. 4,035 319 356 4,710 Equity in losses of investees ......................... 744 -- -- 744 Interest ............................. 1,979 416 215 2,610 Depreciation ......................... 1,052 126 150 1,328 Advisory fee to affiliate ............ 316 -- -- 316 General and administrative ........... 699 -- -- 699 ----------- ----------- ----------- ----------- 8,825 861 721 10,407 Net income (loss) ...................... $ (906) $ (41) $ 603 $ (344) =========== =========== =========== =========== Earnings per share Net (loss) ........................... $ (.57) $ (.22) =========== =========== Weighted average shares of Common Stock used in computing earnings per share ................................ 1,582,888 1,582,888 =========== ===========
(1) Assumes acquisition by the Company on January 1, 1995. 5 6 ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (b) Financial statements of property acquired: Exhibit Number Description 99.0 Audited Statement of Revenue and Direct Operating Expenses of Olympic Building for the year ended December 31, 1995. ----------------------------------------- SIGNATURE 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 hereto duly authorized. INCOME OPPORTUNITY REALTY INVESTORS INC. Date: January 15, 1997 By: /s/ Thomas A. Holland ------------------------------- ------------------------- Thomas A. Holland Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) 6 7 INCOME OPPORTUNITY REALTY INVESTORS, INC. EXHIBITS TO CURRENT REPORT ON FORM 8-K Dated September 30, 1996
Exhibit Page Number Description Number - - ------ ----------- ------ 99.0 Olympic Building Audited Statement of Revenues 8 and Direct Operating Expenses for the year ended December 31, 1995.
EX-99.0 2 STATEMENT OF REVENUES-DOE FOR YEAR END 12-31-95 1 EXHIBIT 99.0 THE OLYMPIC BUILDING STATEMENT OF REVENUES AND DIRECT OPERATING EXPENSES YEAR ENDED DECEMBER 31, 1995 8 2 Independent Auditors' Report To the Board of Trustees Income Opportunity Realty Investors, Inc. We have audited the accompanying statement of revenues and direct operating expenses of The Olympic Building for the ended December 31, 1995. This statement of revenues and direct operating expenses is the responsibility of the Property's management. Our responsibility is to express an opinion on this statement of revenues and direct operating expenses based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the statement of revenues and direct operating expenses is free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the statement of revenues and direct operating expenses. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall statement of revenues and direct operating expenses presentation. We believe that our audit provides a reasonable basis for our opinion. The accompanying financial statement is prepared for the purpose of complying with the rules and regulations of the Securities and Exchange Commission (for inclusion in Form 8-K of Income Opportunity Realty Investors, Inc.) and, as described in Note 1, is not intended to be a complete presentation of the results of operations. In our opinion, the statement of revenues and direct operating expenses referred to above presents fairly, in all material respects, the revenues and direct operating expenses of The Olympic Building for the year ended December 31, 1995, in conformity with generally accepted accounting principles. Farmer, Fuqua, Hunt & Munselle, P.C. Dallas, Texas January 10, 1997 9 3 THE OLYMPIC BUILDING STATEMENT OF REVENUES AND DIRECT OPERATING EXPENSES YEAR ENDED DECEMBER 31, 1995 REVENUES Net rental revenues $ 747,484 Parking income 72,410 ---------- Total revenues 819,894 OPERATING EXPENSES Property taxes 62,682 Utilities 136,002 Repairs and maintenance 106,877 Insurance 13,021 ---------- Total direct operating expenses 318,582 ---------- REVENUES IN EXCESS OF DIRECT OPERATING EXPENSES $ 501,312 ==========
The accompanying notes are an integral part of this statement. 10 4 THE OLYMPIC BUILDING NOTES TO STATEMENT OF REVENUES AND DIRECT OPERATING EXPENSES DECEMBER 31, 1995 NOTE 1: ORGANIZATION AND BASIS OF PRESENTATION The Olympic Building is a 46,400 square foot office building, located in Los Angeles, California. During 1995, the property was owned by Azusa Properties USA, Inc. The accompanying financial statement does not include a provision for depreciation and amortization, bad debt expense, interest expense or income taxes. Accordingly, this statement is not intended to be a complete presentation of the results of operations. NOTE 2: ACCOUNTING ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. NOTE 3: SUBSEQUENT EVENT The property was sold to Income Opportunity Realty Investors, Inc., a Nevada corporation, on November 13, 1996. 11 -----END PRIVACY-ENHANCED MESSAGE-----