0001999371-26-005688
SEC filingIncome Opportunity Realty Investors, Inc. (IOR) reported net income of $4.0 million for fiscal year 2025, a decrease from $4.7 million in 2024 and $7.0 million in 2023. The company's operations generated a net operating loss of $383,000, driven by general and administrative expenses of $280,000 and an advisory fee to a related party of $103,000. Total operating expenses were $383,000. Net income was primarily derived from interest income from related parties of $5.4 million, partially offset by an income tax provision of $1.1 million. Earnings per share were $0.98 (basic and diluted). The company's total assets were $125.9 million, with $114.8 million in current assets, largely consisting of a $114.6 million receivable from a related party and a $244,000 interest receivable from related parties. Cash and cash equivalents were $6,000. Total shareholders' equity was $125.9 million. Cash flow from operating activities was negative $77,000, while investing activities provided $74,000 and financing activities used $908,000, resulting in a net decrease in cash of $3,000. The company's financial performance is heavily dependent on related party transactions, with significant receivables and interest income from these entities.
Income Opportunity Realty Investors, Inc. (IOR) reported net income of $4.0 million for the fiscal year ended December 31, 2025, a decrease from $4.7 million in 2024 and $7.0 million in 2023. The company's operations resulted in a net operating loss of $383,000, consistent with a loss of $412,000 in 2024. Total operating expenses were $383,000, comprising general and administrative expenses of $280,000 and an advisory fee to a related party of $103,000. Net income was primarily driven by interest income from related parties of $5.4 million, down from $6.3 million in 2024, and offset by an income tax provision of $1.1 million. Earnings per share were $0.98 (basic and diluted), compared to $1.14 in 2024. Weighted average common shares used in computing earnings per share were 4,066,178.
The company's revenue is entirely derived from interest income from related parties, which amounted to $5.4 million in 2025, down from $6.3 million in 2024. No other revenues or segment data are disclosed in the filing. The interest income is generated from notes receivable and receivables from related parties, specifically Unified Housing Foundation, Inc. (UHF) and Pillar Income Asset Management, Inc. (Pillar). The decrease in interest income reflects changes in the underlying receivables and interest rates. The company operates as a single reportable segment, with its principal source of income being interest on notes receivable from related parties.
The company reported a net operating loss of $383,000, with total operating expenses of $383,000. Operating expenses include general and administrative expenses of $280,000 and an advisory fee to a related party of $103,000. The net operating loss margin is not calculable as revenues are zero. Profitability is driven by interest income from related parties, which contributed $5.4 million, resulting in a net income margin of approximately 73.7% relative to interest income. The income tax provision was $1.1 million, representing an effective tax rate of approximately 26.5% on pre-tax income. Cost structure remains focused on administrative and advisory expenses, with no significant changes disclosed.
Cash flow from operating activities was negative $77,000, primarily due to changes in related party receivables of $4.1 million, partially offset by net income of $4.0 million and accrued interest adjustments. Cash flow from investing activities provided $74,000 from the collection of notes receivable. Cash flow from financing activities used $908,000 for the repurchase of common shares. Net cash decreased by $3,000, with cash and cash equivalents ending at $6,000. Total assets were $125.9 million, including current assets of $114.8 million, largely composed of a receivable from a related party of $114.6 million and interest receivable from related parties of $244,000. Non-current assets include a note receivable from a related party of $11.1 million. Total shareholders' equity was $125.9 million, with retained earnings of $65.7 million. The company has no disclosed liabilities.
The filing does not provide specific management guidance or forward-looking statements regarding future performance. Key risk factors include the company's reliance on related party transactions, with substantially all assets being receivables from related parties. The collection of receivables is dependent on the cash flow of the related parties, which could be adversely affected by economic conditions or operational challenges. The company notes that its business may be impacted by health emergencies, such as pandemics, and that rising interest rates could increase costs on variable rate debt. The company's ability to access capital markets may be limited by general economic conditions and its financial structure. No dividends were declared for 2025, 2024, or 2023, and future distributions will depend on financial conditions and board discretion.