Income Opportunity Realty Investors Reports Q2 2025 Financial Results with Decreased Net Income

Income Opportunity Realty Investors, Inc. reported its financial results for the second quarter of 2025, revealing a net income of $994,000, or $0.24 per share, compared to a net income of $1.162 million, or $0.28 per share, for the same period in 2024. For the first half of 2025, the company recorded a net income of $1.983 million, down from $2.340 million in the prior year. The decrease in profitability is attributed to a reduction in operating income, which was impacted by a decline in interest income from related parties, totaling $1.355 million for the quarter, compared to $1.585 million in the previous year.

Total operating expenses for the second quarter of 2025 were $97,000, a decrease from $114,000 in the same quarter of 2024. The company reported a net operating loss of $97,000 for the quarter, an improvement from a loss of $114,000 in the prior year. The reduction in expenses was primarily due to lower general and administrative costs, which decreased to $74,000 from $93,000 year-over-year. The company’s total assets increased to $123.912 million as of June 30, 2025, up from $121.927 million at the end of 2024, driven by an increase in cash and cash equivalents.

In terms of operational developments, Income Opportunity Realty Investors continues to focus on its investment strategy in mortgage notes receivables, primarily from related parties. The company’s receivables from related parties increased slightly to $112.332 million from $110.481 million at the end of 2024. The company has no employees, as its operations are managed by Pillar Income Asset Management, Inc., which is also a related party. Advisory fees paid to Pillar remained stable at $23,000 for the second quarter of 2025, compared to $21,000 in the same quarter of 2024.

Looking ahead, the company anticipates generating excess cash from property operations in the next twelve months, although it cautions that this may not be sufficient to meet all obligations as they come due. The company has a stock repurchase program in place, allowing for the repurchase of up to 1.65 million shares, with 513,003 shares remaining available for repurchase as of June 30, 2025. Management remains focused on evaluating investment opportunities and managing its portfolio effectively, while also navigating potential risks associated with market conditions and financing availability.