Income Opportunity Realty Investors, Inc. (IOR): Business Model Canvas [Dec-2025 Updated]

You're looking to dissect a real estate investment vehicle that flies a bit under the radar, and honestly, understanding Income Opportunity Realty Investors, Inc.'s (IOR) engine room is key to seeing where the risk and reward truly lie. As someone who's spent two decades mapping these structures, I can tell you this firm, with a market capitalization around $\mathbf{\$73.36 \text{ million}}$ and an almost unbelievable $\mathbf{90.32\%}$ insider ownership, runs a tight, externally-managed ship primarily focused on notes receivable-which brought in $\mathbf{\$1.395\text{M}}$ in interest income in Q3 2025 alone, while keeping Q3 operating expenses lean at just $\mathbf{\$90K}$. This isn't your typical REIT; it's a specialized play on debt and strategic equity, and the full Business Model Canvas below shows exactly how Pillar Income Asset Management, Inc. keeps the lights on and aligns interests for you, the investor.

Income Opportunity Realty Investors, Inc. (IOR) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep Income Opportunity Realty Investors, Inc. (IOR) running, especially how they manage assets and secure funding. These partnerships are critical because IOR is externally managed, meaning its day-to-day operations rely heavily on outside expertise.

Pillar Income Asset Management, Inc. for external management

Pillar Income Asset Management, Inc. is the external manager for Income Opportunity Realty Investors, Inc.. This relationship generates specific financial flows between the two related parties.

• Advisory fee paid to related party (Q3 2025): $27 thousand.
• Interest income from related parties (Q3 2025): $1.395 million.
• Interest income from related parties (Q2 2025): $1.355 million.

This interest income from related parties is the primary driver of IOR's earnings power; for instance, it represented a year-over-year decline to $1.355 million in Q2 2025 from $1.585 million in Q2 2024. The total assets managed or related to IOR's structure as of late 2024/early 2025 were around $0.12 billion.

Unified Housing Foundation, Inc. as a major note debtor

Income Opportunity Realty Investors, Inc. invests in notes receivable collateralized by investments in land and/or multifamily properties. These investments explicitly include notes receivable from Unified Housing Foundation, Inc. The financial performance of IOR is tied to the performance of these underlying assets.

The weighted average common shares used in computing earnings per share for Q3 2025 was 4,066,178.

Strategic partners for direct equity real estate ventures

Income Opportunity Realty Investors, Inc. invests in real estate through direct equity ownership and partnerships. Specific names of these strategic partners for direct equity ventures are not detailed in the latest disclosures, so no specific financial amounts can be attached to this category.

Financial institutions for debt financing and capital

Pillar Income Asset Management, Inc. arranges the debt and equity financing for the company, using unaffiliated independent third-party lenders and investors. The company's balance sheet as of a recent period showed total liabilities of $4,000.00 and common equity of $124.94 million, resulting in a total capitalization of $124.94 million. No specific financial institution names or associated debt amounts are itemized in the recent earnings reports.

Real estate brokers for asset acquisition and disposition

The role of real estate brokers for asset acquisition and disposition is inherent in the investment strategy of acquiring notes receivable and investing in real estate. However, specific compensation figures, transaction volumes, or the names of the brokerage firms used by Income Opportunity Realty Investors, Inc. are not publicly itemized in the recent financial statements.

Here is a snapshot of the core financial results tied to these related-party activities for the quarter ended September 30, 2025:

Finance: review the Q4 2025 related-party interest income projection against the Q3 2025 actual of $1.395 million by next Tuesday.

Income Opportunity Realty Investors, Inc. (IOR) - Canvas Business Model: Key Activities

You're looking at the core engine of Income Opportunity Realty Investors, Inc. (IOR) for late 2025. The key activities are all geared toward generating that interest income and managing the underlying assets, all while keeping the lights on for the NYSE American listing.

Managing the portfolio of notes receivable for interest income is the primary driver. This activity centers on the debt side of real estate, specifically notes collateralized by investments in land and/or multifamily properties. The success of this is directly reflected in the interest income figures.

For the three months ended September 30, 2025, the interest income from related parties was reported at $1.395 million. This is the core revenue stream supporting the business. The overall revenue for the quarter was reported as $1.40 million.

Strategic asset management to enhance property value and Acquiring undervalued real estate with turnaround potential are the activities that feed the long-term health of the notes receivable portfolio and any direct equity holdings. The company states it invests in real estate through direct equity ownership and partnerships, aiming to capitalize on undervalued and underperforming properties. While specific acquisition costs for new undervalued assets aren't itemized here, the overall profitability shows the current state of the managed portfolio.

The results of these core income-generating and management activities for the third quarter of 2025 are summarized below:

Financial reporting and compliance for NYSE American listing is a constant, necessary activity. This involves producing timely disclosures to maintain the listing status for the ticker IOR. The company reported its Q3 2025 results via a Business Wire press release on November 6, 2025, fulfilling its public reporting obligations.

The focus on Controlling operating expenses is clearly a near-term lever for profitability, especially when interest income is under pressure. The management team executed well on cost control in the third quarter of 2025, as you can see from the expense breakdown:

• Total operating expenses for Q3 2025 were $90K.
• General and administrative expenses for Q3 2025 were $63K.
• Advisory fee to related party for Q3 2025 was $27,000 (calculated as $90K total operating expenses minus $63K G&A, which aligns with the $27K figure reported for Q3 2025 in other filings).

The weighted average diluted shares count remained stable at 4,066,178 for Q3 2025, which helps stabilize the per-share metrics.

Finance: draft 13-week cash view by Friday.

Income Opportunity Realty Investors, Inc. (IOR) - Canvas Business Model: Key Resources

When you look at the core assets driving Income Opportunity Realty Investors, Inc. (IOR), you see a structure heavily weighted toward real estate-backed income streams and significant internal alignment. These aren't just abstract concepts; they are concrete financial holdings that form the bedrock of the business.

The primary engine for IOR is its portfolio of notes receivable collateralized by real estate. This means the company holds debt instruments secured by property, which generates interest income. This is complemented by direct equity ownership in multi-family and commercial properties, giving IOR a stake in the underlying asset value and rental income potential. For the three months ended September 30, 2025, net income attributable to common shares was $1.0 million. To give you a sense of the income generation, for the quarter ended March 31, 2025, interest income from related parties was reported at $1,347 thousand.

The alignment of interests among the top stakeholders is a major feature of this resource base. You'll notice the high insider ownership at 90.32% of shares. That level of concentration suggests that management and key stakeholders have their capital directly tied to the company's performance, which can be a strong signal for long-term focus, though it also means lower public float.

The operational backbone is provided externally through management expertise from Pillar Income Asset Management. Pillar is a national real estate company specializing in acquisition, development, and management. Their scale, which supports IOR's strategy, includes managing a portfolio for its affiliates of over 65 properties, encompassing more than 8,700 units of multifamily properties and over 1,900,000 square feet of commercial properties. This outsourced expertise is a critical, non-balance sheet resource.

Here's a quick look at the key financial and structural metrics defining these resources as of late 2025:

The nature of the assets dictates the management focus. You can see the company's investment focus through the types of assets Pillar manages on its behalf:

• Notes receivable collateralized by real estate.
• Direct equity in multi-family assets.
• Direct equity in commercial properties.
• Investment in land for development.

The reliance on related-party interest income is a structural element tied to these resources. If that interest income stream tightens, as seen by the year-over-year decline in net income, the overall financial performance of Income Opportunity Realty Investors, Inc. feels the pressure immediately. Finance: draft 13-week cash view by Friday.

Income Opportunity Realty Investors, Inc. (IOR) - Canvas Business Model: Value Propositions

You're looking at the core reasons why Income Opportunity Realty Investors, Inc. (IOR) attracts capital, and honestly, the numbers tell a clear story about their focus.

Consistent income generation from a debt-focused portfolio

The primary value here is the steady stream from notes receivable, which is their core asset class. For the three months ended September 30, 2025, the company reported interest income from related parties of $1.395 million. This income supported a net income attributable to common shares of $1.0 million, translating to $0.25 per diluted share for that quarter. This focus on interest income from debt instruments is the engine for their stated consistency.

Exposure to real estate debt and equity investments

Income Opportunity Realty Investors, Inc. doesn't just stick to one lane; they hold a portfolio of notes receivable while also investing in real property through direct equity ownership and partnerships. This dual exposure to both debt and equity in real estate is a key part of their offering.

Here's a quick look at the financial snapshot supporting this structure as of the third quarter of 2025:

Potential for capital appreciation from undervalued assets

While the core is income, the structure allows for upside if the underlying real estate assets or notes appreciate. The Benzinga Value score for Income Opportunity Realty Investors, Inc. was reported at 47, which gives you a relative benchmark on its market valuation compared to peers.

Alignment of interests due to high insider ownership

You see a very strong alignment because the people running the company hold a significant stake. As of a recent report, insiders owned 90.99% of the company's shares. To put that in perspective against other capital providers, institutional ownership was only 0.26%. That level of insider concentration suggests management's financial success is directly tied to shareholder returns.

Low beta (0.04) suggesting lower stock volatility

The stock's historical volatility profile is low, which is attractive if you are seeking less market swing. The reported beta is 0.04. For context on recent movement, the one-month volatility for the equity ending October 31, 2025, was measured at 0.24%.

You should check the latest 10-Q filing for the current debt portfolio composition and any changes to the related-party interest agreements.

Income Opportunity Realty Investors, Inc. (IOR) - Canvas Business Model: Customer Relationships

For Income Opportunity Realty Investors, Inc. (IOR), the primary customer relationship is purely transactional, defined by its listing on the NYSE American exchange. The relationship is mediated by the public market, where shareholders buy and sell the stock, Symbol IOR.

The nature of this relationship is characterized by minimal proactive communication beyond regulatory requirements. There is no indication of regular earnings calls or forward-looking guidance provided to the market. Communication is heavily weighted toward mandatory disclosures.

The shareholder base reflects this dynamic, showing a significant concentration of ownership by insiders. Here is a snapshot of the ownership structure based on the latest available data points:

Communication with this investor base is primarily channeled through required Securities and Exchange Commission (SEC) filings. Income Opportunity Realty Investors, Inc. adheres to a quarterly reporting schedule for its operational results. For example, the results for the quarter ended September 30, 2025, were reported on November 6, 2025. The three months ended June 30, 2025, results were reported on August 7, 2025. The quarter ended March 31, 2025, results were reported on May 8, 2025.

The types of mandatory filings that constitute the bulk of investor information include:

• 10-Q Quarterly Earnings Report
• 8-K Material Event Reports
• DEF 14A Definitive Proxy Statement
• Form 4 Insider Trading Activity Reports

For direct, standard Investor Relations contact, the company provides specific channels, which you can use for formal inquiries. This represents the minimal direct-to-investor touchpoint available outside of the public exchange mechanism. The contact details are:

• Phone Number: 800-400-6407
• Email Address: investor.relations@incomeopp-realty.com
• Corporate Office Address: 1603 Lyndon B Johnson Fwy Suite 800, Dallas, TX 75234

The financial performance data released through these filings gives the market its only regular look at the company's operations. For instance, for the three months ended September 30, 2025, net income attributable to common shares was $1.0 million, or $0.25 per diluted share. This compares to a net income of $1.2 million, or $0.29 per share, for the same period in 2024. The trailing 12-month revenue as of September 30, 2025, was $5.61M.

Income Opportunity Realty Investors, Inc. (IOR) - Canvas Business Model: Channels

The primary channel for Income Opportunity Realty Investors, Inc. (IOR) to reach the broader investment community is through its listing on the NYSE American stock exchange. This public trading venue dictates a baseline level of disclosure and accessibility for all investors. The company is small, with a reported market capitalization of $72.85 million as of late November 2025.

Key stock market metrics relevant to this channel include:

For official corporate information, including governance documents and mandatory disclosures, Income Opportunity Realty Investors, Inc. directs stakeholders to its corporate website. This is the source for official investor information and the repository for all required SEC filings, such as the 10-Q quarterly reports.

Access points via the corporate channel include:

• Corporate Website URL: www.incomeopp-realty.com
• SEC Filings: Access to 10-Q, 8-K, and other mandatory reports.
• Latest 10-Q Filing Date (Q3 2025): November 6, 2025.

Direct communication is maintained for shareholders, particularly major ones, through dedicated Investor Relations channels. This allows for more targeted information flow outside of the standard public filings, though management did not conduct an earnings call for the third quarter of 2025.

Contact details for direct investor relations are:

• Investor Relations Email: investor.relations@incomeopp-realty.com
• Investor Relations Phone: 800-400-6407
• Corporate Address: 1603 Lyndon B Johnson Fwy Suite 800, Dallas, TX 75234
• Insider Ownership Percentage (as of late 2025): 83.16%

Financial news outlets serve as a critical channel for disseminating timely performance data, such as quarterly earnings announcements. These reports provide the most recent operational figures to the market, often summarizing key year-over-year and sequential changes in profitability.

Recent quarterly financial results reported through these outlets highlight the core revenue drivers:

Income Opportunity Realty Investors, Inc. (IOR) - Canvas Business Model: Customer Segments

You're looking at the ownership structure of Income Opportunity Realty Investors, Inc. (IOR) as of late 2025, and the picture is dominated by a very specific group. This concentration heavily influences the company's strategic direction, which is focused on generating income from its portfolio of notes receivable and direct equity investments.

The primary customer segment, by sheer volume of ownership, is the high-concentration insider group. This segment dictates the near-term governance and operational philosophy.

• High-concentration Insider Shareholders: This group holds an overwhelming majority of the equity, with ownership reported at 90.32% as of the first quarter of 2025 filings.
• Public and retail investors seeking real estate exposure: This segment represents the remaining public float, providing market liquidity.
• Institutional investors with a small 0.24% ownership: This group is minimal, suggesting IOR does not heavily court large asset managers for its core equity structure.
• Accredited investors for potential investment partnerships: While not explicitly detailed in public share ownership, the business model involves strategic partnerships, which often target accredited capital for specific real estate debt or equity deals.

Here's a quick look at the distribution of ownership based on the latest available data points, showing just how concentrated the shareholder base is. This concentration is a key feature of the IOR business model.

To be fair, the data on the smaller segments can vary slightly depending on the exact reporting date; for instance, one snapshot showed institutional ownership at 0.03% and retail at 15.47%, but the 90.32% insider figure remains consistent with the overall theme of tight control. The institutional presence is negligible, standing at just 0.24% of the company's shares as of Q1 2025. This structure means that decisions are primarily driven by the interests of the controlling insiders, who are also the management team via the external manager, Pillar Income Asset Management, Inc.

The public and retail investors, who make up the remainder, are seeking exposure to the income-generating side of real estate, primarily through IOR's portfolio of notes receivable collateralized by land and/or multifamily properties. They are buying into a strategy focused on disciplined financial management rather than rapid growth.

• The largest single insider holder, Transcontinental Realty Investors, Inc., held approximately 84.50% of the company as of July 2025 filings.
• The company's market capitalization as of November 2025 was around $75.89 million.
• Net income attributable to common shares for the three months ended September 30, 2025, was $1.0 million, or $0.25 per diluted share.

Finance: draft 13-week cash view by Friday.

Income Opportunity Realty Investors, Inc. (IOR) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive the Income Opportunity Realty Investors, Inc. (IOR) cost base as of late 2025. It's a lean operation, focused heavily on the fees related to its structure and management.

Advisory fees paid to related parties (Pillar Income Asset Management) are a core component of the operating costs. For the three months ended September 30, 2025, this expense was $27K. Looking at the year-to-date trend, the advisory fee for the nine months ended September 30, 2025, totaled $77K.

General and administrative costs show tight control. As you noted, the General and administrative cost for the quarter ended September 30, 2025, was exactly $63K. This figure represented an 11.3% decrease year-over-year for the quarter.

The structure of operating expenses is transparent, showing a clear split between G&A and the related-party advisory fee. The total operating expenses for Q3 2025 were $90K, resulting in a Net operating loss of ($90K) before considering the primary income source, which is interest income from related parties.

The following table breaks down the key known operating costs for the most recently reported periods:

Regarding property management and maintenance expenses, these are not itemized separately in the reported Consolidated Statements of Operations for the three or nine months ended September 30, 2025; they are aggregated within the reported operating expenses.

For compliance and legal fees for public company status, these costs are not broken out and are included within the General and administrative line item, which totaled $63K for the third quarter of 2025.

On the topic of interest expense on any outstanding debt, the Income Opportunity Realty Investors, Inc. public filings for the periods ending September 30, 2025, do not list a separate line item for interest expense. The primary interest line item reported is Interest income from related parties, which was $1,395K for the third quarter of 2025.

The cost structure is further defined by these related figures:

• Weighted average common shares used in computing earnings per share for Q3 2025: 4,066,178.
• Total operating expenses for Q2 2025: $97K.
• General and administrative for Q2 2025: $74K.
• Advisory fee to related party for Q2 2025: $23K.

Finance: draft 13-week cash view by Friday.

Income Opportunity Realty Investors, Inc. (IOR) - Canvas Business Model: Revenue Streams

You're looking at the core ways Income Opportunity Realty Investors, Inc. (IOR) brings money in, and as of late 2025, the notes receivable portfolio is defintely the headline driver.

The most significant component is the interest income from the notes receivable portfolio. For the three months ended September 30, 2025, this stream generated $1.395M in interest income. This compares to the same period in 2024, when interest income from related parties was $1.614 million. This shift is a key reason why the net income for Q3 2025 settled at $1.0 million, or $0.25 per diluted share, compared to $1.2 million, or $0.29 per share, in Q3 2024.

Income Opportunity Realty Investors, Inc. also generates revenue from rental income from direct equity real estate holdings, which represents properties the company owns outright or through partnerships. Additionally, the company realizes income through capital gains from the strategic disposition of properties, meaning profits made when selling assets from that direct equity portfolio. While the search results don't break out the rental income or capital gains for the period, we can look at the aggregate top-line performance.

Here's the quick math on the overall revenue picture as you analyze the nine-month performance:

• Interest income from the notes receivable portfolio (Q3 2025): $1.395M
• Suggested Q3 2025 revenue: $1.4M
• Total revenue for the nine months ended September 30, 2025: approximately $4.2 million
• Trailing Twelve Months (TTM) revenue: approximately $5.61M

The business model relies on servicing debt instruments and managing physical assets. If onboarding takes 14+ days, churn risk rises, which directly impacts that interest income stream.