Financial Performance - Net income for the three months ended September 30, 2023, was $1,643,000, representing an increase of 38.2% from $1,188,000 in the same period of 2022[12] - Earnings per share for the nine months ended September 30, 2023, rose to $1.09, up from $0.64 in the prior year, indicating a growth of 70.3%[12] - Interest income from related parties for the nine months ended September 30, 2023, was $7,160,000, a significant increase of 58.8% compared to $4,506,000 in the same period of 2022[12] - The company reported a net operating loss of $437,000 for the three months ended September 30, 2023, compared to a loss of $397,000 in the same period of 2022, indicating a decline of 10.1%[12] - Total operating expenses for the three months ended September 30, 2023, were $437,000, which is a 10.1% increase from $397,000 in the same period of 2022[12] Assets and Liabilities - Total assets increased to $116,513,000 as of September 30, 2023, compared to $111,989,000 at December 31, 2022, reflecting a growth of approximately 4.6%[9] - Cash and cash equivalents increased to $12,000 at the end of the period, compared to $11,000 at the same time last year, showing a growth of 9.1%[18] - Retained earnings increased to $54,554,000 as of September 30, 2023, up from $50,027,000 at the end of 2022, reflecting a growth of 9.9%[9] - As of September 30, 2023, related party receivables amounted to $104,808, an increase from $100,134 as of December 31, 2022, representing a growth of approximately 1.67%[33] Interest Income - Interest income from related parties for the three months ended September 30, 2023, increased by $695 compared to the same period in 2022, primarily due to rising interest rates[49] - For the nine months ended September 30, 2023, interest income from related parties rose by $2,654 compared to the same period in 2022, also attributed to increased interest rates[50] - Interest income on notes receivable from Unified Housing Foundation was $338 for the three months ended September 30, 2023, consistent with the same period in 2022[32] Advisory Fees and Related Parties - The company’s advisory fee to related parties increased to $1,045,000 for the nine months ended September 30, 2023, compared to $824,000 in the same period of 2022, marking a rise of 27%[12] - Advisory fees paid to Pillar were $346 for the three months ended September 30, 2023, compared to $283 for the same period in 2022, reflecting an increase of approximately 22.3%[31] - The company operates under an Advisory Agreement with Pillar, which manages its operations and is considered a related party due to common ownership with TCI[41] - The advisory agreement with Pillar Income Asset Management, LLC, dated April 30, 2011, suggests a strategic partnership for asset management[60] Cash Management and Future Outlook - The company anticipates that cash and cash equivalents as of September 30, 2023, along with cash generated from notes and interest receivables, will be sufficient to meet current cash requirements[52] - The company expects to generate excess cash from property operations in the next twelve months, although it may not be sufficient to cover all obligations as they become due[34] Share Repurchase and Risk Factors - The company has a share repurchase program allowing for the repurchase of up to 1,637,000 shares, with 1,230,535 shares already purchased as of September 30, 2023[57] - The company has no material changes in risk factors from those previously disclosed in the 2022 10-K, indicating stability in its risk profile[38] Compliance and Governance - The filing includes certifications by the Principal Executive and Financial Officer, ensuring compliance with regulatory standards[62] - The report is signed by Erik L. Johnson, Executive Vice President and Chief Financial Officer, indicating leadership accountability[64] - The report includes various exhibits related to the company's preferred stock and advisory agreements, indicating ongoing financial structuring efforts[60] - The company has made amendments to its settlement stipulations, reflecting ongoing legal and financial adjustments[60]
me Opportunity Realty Investors(IOR) - 2023 Q3 - Quarterly Report