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IO

INCOME OPPORTUNITY REALTY INVESTORS INC /TX/ (IOR)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 diluted EPS was $0.24 and net income was $0.989 million, down from $0.29 and $1.178 million in Q1 2024, driven by lower interest income from related parties .
  • Sequentially, net income and EPS declined versus Q4 2024 ($1.113 million; $0.27) and Q3 2024 ($1.198 million; $0.29), reflecting a steady reduction in interest income from related parties over the last three quarters .
  • No revenue was reported; operations consist primarily of interest income on related-party notes, with modest operating expenses and tax provision .
  • The company did not issue formal financial guidance, and no earnings call transcript was available in our document set; Wall Street consensus estimates via S&P Global for EPS and revenue were unavailable for Q1 2025 .

What Went Well and What Went Wrong

What Went Well

  • Operating discipline: Total operating expenses remained low at $0.095 million, flat year over year (Q1 2024: $0.095 million), highlighting controlled G&A and advisory fees .
  • Share base stability: Weighted average diluted shares were essentially stable at 4,066,178 (Q1 2025), limiting EPS dilution .
  • Clear attribution of drivers: Management explicitly tied the net income decline to interest income, providing transparency on the primary earnings lever—“Our decrease in net income is attributable to a decrease in interest income” .

What Went Wrong

  • Interest income pressure: Interest income from related parties fell to $1.347 million vs $1.586 million in Q1 2024 and $1.514 million in Q4 2024, compressing bottom-line results .
  • Sequential earnings drift: Net income slipped to $0.989 million vs $1.113 million in Q4 2024 and $1.198 million in Q3 2024; diluted EPS similarly moved from $0.27 (Q4 2024) and $0.29 (Q3 2024) down to $0.24 (Q1 2025) .
  • No revenue growth vectors: The company reported no operating revenues (“Other income: $—”), leaving earnings fully dependent on related-party interest income and tax outcomes .

Financial Results

Summary Metrics (USD, thousands unless noted)

MetricQ3 2024Q4 2024Q1 2025
Other Income (Revenue)$0 $0 $0
Interest Income from Related Parties$1,614 $1,514 $1,347
General & Administrative$71 $74 $68
Advisory Fee to Related Party$26 $32 $27
Total Operating Expenses$97 $106 $95
Income Tax Provision$319 $295 $263
Net Income$1,198 $1,113 $989
Diluted EPS ($)$0.29 $0.27 $0.24
Weighted Avg Diluted Shares4,070,327 4,070,327 4,066,178

Year-over-Year (Q1 2025 vs Q1 2024)

  • Net income: $0.989 million vs $1.178 million (down) .
  • Diluted EPS: $0.24 vs $0.29 (down) .
  • Interest income from related parties: $1.347 million vs $1.586 million (down) .
  • Total operating expenses: $0.095 million vs $0.095 million (flat) .

Versus Estimates

  • S&P Global Wall Street consensus for EPS and revenue was unavailable for IOR for Q1 2025; therefore no beat/miss analysis can be presented. Values retrieved from S&P Global.

Segment Breakdown

  • The company does not present operating segments; earnings are primarily driven by interest income on related-party notes and low operating expenses .

KPIs

  • Interest income from related parties: Core earnings driver, trending lower sequentially: $1.614 million (Q3 2024) → $1.514 million (Q4 2024) → $1.347 million (Q1 2025) .
  • Total operating expenses: Stable and low—$0.097 million (Q3 2024) → $0.106 million (Q4 2024) → $0.095 million (Q1 2025) .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
All metricsFY/Q1 2025NoneNoneMaintained (no guidance issued)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
Interest Income as Primary DriverNet income decrease attributed to lower interest income; interest income $1.614M Net income decrease attributed to lower interest income; interest income $1.514M “Decrease in net income is attributable to a decrease in interest income”; interest income $1.347M Downward sequential
Operating Expenses DisciplineG&A $0.071M; Advisory fee $0.026M; total opex $0.097M G&A $0.074M; Advisory fee $0.032M; total opex $0.106M G&A $0.068M; Advisory fee $0.027M; total opex $0.095M Stable/low
Tax Provision ImpactTax provision $0.319M Tax provision $0.295M Tax provision $0.263M Slightly lower

Management Commentary

  • “For the three months ended March 31, 2025, we reported net income attributable to common shares of $1.0 million or $0.24 per diluted share compared to a net income of $1.2 million or $0.29 per share for the same period in 2024.”
  • “Our decrease in net income is attributable to a decrease in interest income.”
  • Q4 2024 context: “Our decrease in net income is attributable to a decrease in interest income, offset in part by an increase in advisory fees.”
  • Q3 2024 context: “Our decrease in net income is attributable to a decrease in interest income offset in part by a decrease in advisory fees.”

Q&A Highlights

  • No earnings call transcript was available in our document set for Q1 2025; as a result, no Q&A themes or clarifications can be reported .

Estimates Context

  • Wall Street consensus EPS and revenue estimates via S&P Global for Q1 2025 were unavailable for IOR; we cannot provide a beat/miss analysis or estimate-derived deltas. Values retrieved from S&P Global.

Key Takeaways for Investors

  • Earnings remain primarily a function of interest income from related parties; sequential declines in interest income have driven lower EPS and net income in Q3 2024 → Q4 2024 → Q1 2025 .
  • Operating expenses are consistently low and stable, providing limited ability to offset pressure from declining interest income .
  • With no operating revenue and no formal guidance, near-term earnings visibility hinges on the trajectory of related-party interest income and tax provision variability .
  • Share count stability supports EPS resilience, but cannot offset the impact of reduced interest income on net results .
  • In absence of consensus estimates and an earnings call, incremental disclosures around the notes receivable portfolio and interest income drivers would be potential catalysts for stock reaction .
  • Monitoring changes in advisory fees and G&A can help assess efficiency, though these items are small relative to interest income and taxes .
  • Framework: Focus on sequential interest income trends and any corporate actions that could affect the notes receivable portfolio to gauge near-term EPS trajectory .