Executive Summary

Q4 2024 delivered net income of $1.11M ($0.27 EPS), down sharply year over year from $2.47M ($0.60 EPS) on lower related-party interest income; sequentially modestly lower vs Q3 2024’s $1.20M ($0.29 EPS) .
Interest income from related parties—the primary earnings driver—fell to $1.51M in Q4 2024 from $2.91M in Q4 2023 and $1.61M in Q3 2024; operating expenses remained modest at ~$0.11M .
Management attributed the year-over-year decline primarily to “a decrease in interest income,” partially offset by changes in advisory fees .
No formal guidance was provided; near-term stock reaction catalysts center on trajectories in related-party interest income and variability in advisory fees, given the company’s lean cost base .

What Went Well and What Went Wrong

What Went Well
- Cost discipline: General & Administrative was $0.07M in Q4 2024 vs $0.11M in Q4 2023, keeping total operating expenses to ~$0.11M .
- Profitability sustained despite lower income: Net income remained positive at $1.11M with EPS of $0.27, supported by interest income and controlled expenses .
- Stable tax provisioning pattern: Q4 tax provision of $0.30M was consistent with a pattern seen through 2024, suggesting limited volatility in the effective tax burden .
What Went Wrong
- Material YoY earnings decline: Net income fell to $1.11M vs $2.47M in Q4 2023; EPS decreased to $0.27 from $0.60 on substantially lower related-party interest income .
- Core income pressure: Interest income from related parties decreased to $1.51M from $2.91M YoY and from $1.61M QoQ, pressuring profitability .
- Advisory fees offset limited: Management noted results were impacted by lower interest income, only “offset in part by an increase in advisory fees,” indicating offsets were insufficient to neutralize the income decline .

Financial Results

Consolidated Results (selected line items)

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
Revenue / Other income ($M)	$0.00	$0.00	$0.00	$0.00
Interest income from related parties ($M)	$2.91	$1.59	$1.61	$1.51
Total operating expenses ($M)	$0.03	$0.11	$0.10	$0.11
Income tax provision ($M)	$0.41	$0.31	$0.32	$0.30
Net income ($M)	$2.47	$1.16	$1.20	$1.11
Diluted EPS ($)	$0.60	$0.28	$0.29	$0.27
Weighted avg shares (basic & diluted)	4,145,016	4,107,131	4,070,327	4,070,327

Notes:

The company reports no operating “Revenue,” with earnings driven primarily by “Interest income from related parties” and a lean expense base .
YoY Q4: EPS $0.27 vs $0.60; Net income $1.11M vs $2.47M, driven by the decline in interest income ($1.51M vs $2.91M) .
QoQ: EPS $0.27 vs $0.29; Net income $1.11M vs $1.20M as interest income softened ($1.51M vs $1.61M) .

Results vs Consensus (S&P Global)

Metric	Q4 2024 Actual	Q4 2024 Consensus	Surprise
EPS ($)	$0.27	N/A (Unavailable via S&P Global)	N/A
Revenue ($M)	$0.00	N/A (Unavailable via S&P Global)	N/A

Estimates context: Wall Street consensus for IOR’s Q4 2024 EPS and revenue was unavailable via S&P Global at the time of this analysis.

Operating Detail (expense components)

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
General & Administrative ($M)	$0.11	$0.09	$0.07	$0.07
Advisory fee to related party ($M)	($0.08) credit	$0.02	$0.03	$0.03

Segment breakdown: Not applicable; the company reports consolidated results only .
KPI focus: “Interest income from related parties” is the core income driver, supplemented by consistently low operating expenses .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
All metrics	N/A	None provided	None provided	Maintained (no formal guidance)

No formal guidance was provided in the Q4 2024 press release/8-K .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 2024)	Trend
Interest income trend	Q2: “Decrease in net income… attributable to a decrease in interest income…” ; Q3: same driver cited	Continued YoY decline; management again cites reduced interest income as the primary headwind	Negative YoY, modestly lower QoQ
Advisory fees	Q2/Q3: changes in advisory fees partially offset lower income	Partial offset noted again (“increase in advisory fees”), but insufficient to counter lower interest income	Mixed; small positive offset
Cost discipline	G&A low and stable in Q2 and Q3	G&A remains modest at $0.07M	Stable/positive

Management Commentary

“Our decrease in net income is attributable to a decrease in interest income, offset in part by an increase in advisory fees.” — IOR press release for quarter ended December 31, 2024 .
Company profile reminder: “a Dallas-based real estate investment company [that] currently holds a portfolio of notes receivable,” investing through direct equity ownership and partnerships .

Q&A Highlights

The company announced results via press release; no additional Q&A disclosures were provided in the filing materials reviewed .

Estimates Context

S&P Global consensus estimates for Q4 2024 EPS and revenue were unavailable for IOR at the time of this analysis; therefore, we cannot assess beats/misses versus Street expectations using S&P Global data.

Key Takeaways for Investors

Earnings remain a function of related-party interest income and a lean operating model; Q4 2024 EPS of $0.27 reflects continued YoY pressure from lower interest income .
Sequential drift in interest income (Q4 vs Q3) modestly compressed EPS ($0.27 vs $0.29); cost controls remain supportive with operating expenses ~ $0.11M .
With no formal guidance, investors should track the trajectory of the notes receivable portfolio and related-party interest income for directional cues on EPS sustainability .
Advisory fees can move quarter-to-quarter and have provided only partial offsets to income declines; watch for changes in advisory fee arrangements or levels .
Tax provision has been relatively consistent through 2024, limiting volatility from below-the-line items .
Absent Street estimates, positioning may hinge on absolute trends: stabilization or improvement in interest income would be the primary upside catalyst; further declines would likely pressure EPS.
Medium-term thesis: a continuation of low operating expenses provides downside protection, but the earnings outlook is fundamentally tied to interest income on related-party notes .

INCOME OPPORTUNITY REALTY INVESTORS INC /TX/ (IOR)·Q4 2024 Earnings Summary