Here are 1-3 brief analogies for Income Opportunity Realty Investors (IOR):

• Like a Texas-focused Weyerhaeuser, but investing in a broader range of undeveloped land and general equity real estate rather than just timberland.
• Imagine a smaller, more investment-focused Howard Hughes Corporation, primarily acquiring and holding undeveloped land and other properties in Texas.
• Think of it as a much smaller, publicly traded version of Blackstone's real estate funds, but solely focused on owning and investing in properties and undeveloped land in Texas.

• Equity Real Estate Portfolio: Income Opportunity Realty Investors acquires, holds, and manages a portfolio of equity real estate, including undeveloped land, primarily in Texas.
• Real Estate Investment Partnerships: The company invests in real estate ventures through partnerships to expand its portfolio and investment reach.

Major Customers of Income Opportunity Realty Investors (IOR)

Income Opportunity Realty Investors, Inc. is a real estate investment company that holds a portfolio of equity real estate, including undeveloped land. Due to the nature of its business as a real estate investor and owner, it does not typically have a few identifiable "major customer companies" with recurring transactions or publicly listed symbols. Instead, its customer base consists of various categories of entities and individuals that interact with its real estate assets.

The company serves the following categories of customers:

• Real Estate Developers and Investors: These are typically other companies, investment funds, or high-net-worth individuals who purchase undeveloped land for future development (residential, commercial, industrial) or acquire existing equity properties for their own investment portfolios or redevelopment projects.
• Commercial Tenants: Businesses of various sizes that lease office, retail, industrial, or other commercial spaces within Income Opportunity Realty Investors' portfolio of developed equity real estate.
• Residential Tenants: Individuals and families who lease residential units (e.g., apartments, houses) if Income Opportunity Realty Investors' equity real estate portfolio includes multi-family or other residential rental properties.

• Basic Capital Management, Inc.
• RSM US LLP

Erik L. Johnson President and Chief Executive Officer

Erik L. Johnson was appointed President and Chief Executive Officer of Income Opportunity Realty Investors, Inc. effective May 28, 2024. He had served as the company's Principal Executive Officer since April 2023. Previously, Mr. Johnson held the role of Executive Vice President and Chief Financial Officer of Income Opportunity Realty Investors, Inc. since December 2021. He also served as Executive Vice President and Chief Financial Officer for American Realty Investors, Inc. and Transcontinental Realty Investors, Inc. since August 2020. Additionally, he was the Executive Vice President, Chief Financial Officer, and Interim President of Pillar Income Asset Management, Inc., which serves as the contractual advisor to Income Opportunity Realty Investors, Inc. Prior to June 2020, Mr. Johnson was the Vice President of Financial Reporting at Macerich (NYSE:MAC), a company focused on owning and developing major retail real estate. His experience also includes serving as the Chief Accounting Officer of North American Scientific, Inc., and he began his career as an auditor at PricewaterhouseCoopers. Mr. Johnson is a Certified Public Accountant.

Alla Dzyuba Senior Vice President and Chief Accounting Officer

Alla Dzyuba serves as the Senior Vice President and Chief Accounting Officer for Income Opportunity Realty Investors, Inc.

Louis Joseph Corna Executive Vice President, General Counsel, Tax Counsel & Secretary

Louis Joseph Corna holds the positions of Executive Vice President, General Counsel, Tax Counsel, and Secretary at Income Opportunity Realty Investors, Inc.

Michael K. Lane Vice President of Human Resources

Michael K. Lane is the Vice President of Human Resources for Income Opportunity Realty Investors, Inc.

Henry A. Butler Chairman of the Board

Henry A. Butler was re-elected as Chairman of the Board of Income Opportunity Realty Investors, Inc. on December 11, 2025. He has served as an Independent Director of the company since November 2005 and as Chairman of the Board since May 2009. Mr. Butler retired on April 30, 2019, having previously served as Vice President for Pillar Income Asset Management, Inc. from April 2011 to April 30, 2019.

The key risks to Income Opportunity Realty Investors (IOR) primarily stem from its unique operational structure and the nature of its income streams.

1. High Dependence on Related Party Transactions and Management: A significant portion of IOR's business, including its financial results and operational activities, is intertwined with related parties. Transcontinental Realty Investors, Inc. (TCI) and its affiliates own a substantial majority of IOR's stock, influencing its consolidated financial statements. Furthermore, the company's primary source of income is interest income from related party receivables. A related-party advisor, Pillar, also provides significant advisory and management services, affecting sourcing and operations. This high degree of reliance creates potential for conflicts of interest, limits independent operational control, and could impact financial performance if these related-party relationships change or face adverse conditions.
2. Exposure to Interest Rate Fluctuations: IOR's profitability is significantly influenced by interest rate changes, as its main revenue stream is interest income derived from notes receivable. Declines in interest rates have directly led to a decrease in interest income, consequently reducing the company's net income. This makes the company's financial performance highly sensitive to macroeconomic shifts in interest rate environments.
3. Volatility of Cash Flows and Concentration in Real Estate Market: The company has experienced volatile cash flows, which could recur, particularly during economic recessions. While the company primarily earns interest income from notes, it also invests in equity real estate, including undeveloped land, in Texas. This investment in real estate exposes IOR to market cycles and potential downturns in the real estate sector. The geographic concentration of its equity real estate in Texas further adds a regional risk factor.

Income Opportunity Realty Investors (IOR) focuses its investments in equity real estate, including undeveloped land, and in notes receivable collateralized by land and multifamily properties, primarily within Texas.

The addressable markets for Income Opportunity Realty Investors' main products and services in Texas are as follows:

• Equity Real Estate (General Commercial Real Estate): The commercial real estate market in Texas generated an estimated $203.4 billion in 2025. This market encompasses various property types in which IOR might hold direct equity ownership or partnerships.
• Undeveloped Land: The total dollar volume for the Texas rural land market was approximately $1.39 billion in the second quarter of 2025, with 279,850 acres sold statewide.
• Notes Receivable collateralized by Multifamily Properties: While a specific market size for notes receivable collateralized by multifamily properties is not readily available, the underlying multifamily real estate market in Texas is substantial. Major metropolitan areas like Dallas-Fort Worth, Houston, Austin, and San Antonio exhibit significant activity in multifamily properties. As of November 2025, Dallas-Fort Worth led the state in multifamily volume, with rents averaging around $1,500 per unit, while Houston saw rents at approximately $1,400.

1. Favorable Interest Rate Environment: Income Opportunity Realty Investors' primary revenue source is interest income from notes receivable. The company experienced a decline in interest income in 2025 due to lower interest rates. Therefore, a reversal of this trend, leading to higher prevailing interest rates, would directly increase the revenue generated from new and repriced notes receivable.
2. Growth in the Portfolio of Notes Receivable: Expanding the total volume and principal amount of notes receivable held by the company is a direct driver of increased interest income. This growth can occur through the origination of new loans, particularly those collateralized by land and/or multifamily properties in the Southern U.S..
3. Expansion of Lending Activities within the Southern U.S. Real Estate Market: With a current focus on the Southern United States, increased market penetration or the identification of new lending opportunities within this region for real estate-backed notes could contribute to revenue growth.
4. Strategic Deployment of Capital into Opportunistic Real Estate-Backed Lending: Analyst commentary suggests that "opportunistic deals" could be a driver for earnings per share (EPS). This implies the company may actively seek out high-yield lending opportunities or notes with attractive risk-adjusted returns, thereby boosting future revenue.

Share Repurchases

• Income Opportunity Realty Investors repurchased 44,536 shares in two block transactions for approximately $801,648 in 2025.
• In 2024, the company repurchased a total of 44,436 shares for approximately $799,848 across two block transactions.
• The company repurchased 57,700 shares for approximately $908,775 in three block transactions during 2023.

Outbound Investments

• The company primarily invests in notes receivable collateralized by income-producing properties located in the Southern United States.
• As of December 31, 2025, significant outbound investments included a $114.6 million receivable from its advisor, Pillar, and an $11.1 million note from Unified Housing Foundation.
• The company's annual total receivables were $110.481 million in 2024 and $106.541 million in 2023, reflecting its primary investment activities.