# EDGAR Filing Document

**Accession Number:** 0000949961
**File Stem:** 0001999371-26-005688
**Filing Date:** 2026-3
**Character Count:** 124054
**Document Hash:** 6e07c35882ec57dbe9e786ecfaf8cd0e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001999371-26-005688.hdr.sgml**: 20260312

**ACCESSION NUMBER**: 0001999371-26-005688

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 51

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260312

**DATE AS OF CHANGE**: 20260312

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** INCOME OPPORTUNITY REALTY INVESTORS INC /TX/
- **CENTRAL INDEX KEY:** 0000949961
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE INVESTMENT TRUSTS [6798]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 752615944
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-14784
- **FILM NUMBER:** 26747013

**BUSINESS ADDRESS:**
- **STREET 1:** 1603 LBJ FREEWAY
- **STREET 2:** SUITE 800
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75234
- **BUSINESS PHONE:** 4685224200

**MAIL ADDRESS:**
- **STREET 1:** 1603 LBJ FREEWAY
- **STREET 2:** SUITE 800
- **CITY:** DALLAS
- **STATE:** TX
- **ZIP:** 75234

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 10-K**

☒ **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**For the fiscal year ended December 31, 2025**

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**Commission File Number 001-14784**

**Income Opportunity Realty Investors, Inc.**

**(Exact name of registrant as specified in its charter)**

---

| | |
|:---|:---|
| **Nevada** | **75-2615944** |
| (State or other jurisdiction of <br> Incorporation or organization) | (IRS Employer <br> Identification Number) |
| **1603 LBJ Freeway, Suite 800 Dallas TX** | **75234** |
| (Address of principal executive offices) | (Zip Code) |

---

**(469) 522-4200**

Registrant's Telephone Number, including area code

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock | IOR | NYSE American |

---

Securities registered pursuant to Section 12(g) of the Act: NONE

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.&nbsp;&nbsp;&nbsp;&nbsp;Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.&nbsp;&nbsp;&nbsp;&nbsp;Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.&nbsp;&nbsp;&nbsp;&nbsp;Yes ☒&nbsp;&nbsp;&nbsp;&nbsp;No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒&nbsp;&nbsp;&nbsp;&nbsp; No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.) Yes ☐ No ☒

The aggregate market value of voting and non-voting common equity held by non-affiliates of the registrant was approximately $6.8 million as of the last business day of the registrant's most recently completed second fiscal quarter based upon the price at which the common stock was last sold on that day.

As of March 10, 2026, there were 4,066,178 shares of common stock outstanding.

**Documents Incorporated By Reference:**

None

**INDEX TO**

**ANNUAL REPORT ON FORM 10-K**

---

| | | |
|:---|:---|:---|
| | | **Page** |
| [**PART I**](#ior10ka001) | [**PART I**](#ior10ka001) |  |
| [Item 1.](#ior10ka002) | [Business](#ior10ka002) | 3 |
| [Item 1A.](#ior10ka003) | [Risk Factors](#ior10ka003) | 4 |
| [Item 1B.](#ior10ka004) | [Unresolved Staff Comments](#ior10ka004) | 5 |
| [Item 1C.](#ior10ka005) | [Cybersecurity](#ior10ka005) | 5 |
| [Item 2.](#ior10ka006) | [Properties](#ior10ka006) | 5 |
| [Item 3.](#ior10ka007) | [Legal Proceedings](#ior10ka007) | 6 |
| [Item 4.](#ior10ka008) | [Mine Safety Disclosures](#ior10ka008) | 6 |
| [**PART II**](#ior10ka009) | [**PART II**](#ior10ka009) |  |
| [Item 5.](#ior10ka010) | [Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](#ior10ka010) | 7 |
| [Item 6.](#ior10ka011) | [Reserved](#ior10ka011) | 7 |
| [Item 7.](#ior10ka012) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#ior10ka012) | 7 |
| [Item 7A.](#ior10ka013) | [Quantitative and Qualitative Disclosures About Market Risk](#ior10ka013) | 10 |
| [Item 8.](#ior10ka014) | [Financial Statements and Supplementary Data](#ior10ka014) | 11 |
| [Item 9.](#ior10ka015) | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#ior10ka015) | 25 |
| [Item 9A.](#ior10ka016) | [Controls and Procedures](#ior10ka016) | 25 |
| [Item 9B.](#ior10ka017) | [Other Information](#ior10ka017) | 25 |
| [Item 9C.](#ior10ka018) | [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#ior10ka018) | 25 |
| [**PART III**](#ior10ka019) | [**PART III**](#ior10ka019) |  |
| [Item 10.](#ior10ka020) | [Directors, Executive Officers and Corporate Governance](#ior10ka020) | 26 |
| [Item 11.](#ior10ka021) | [Executive Compensation](#ior10ka021) | 31 |
| [Item 12.](#ior10ka022) | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](#ior10ka022) | 31 |
| [Item 13.](#ior10ka023) | [Certain Relationships and Related Transactions, and Director Independence](#ior10ka023) | 32 |
| [Item 14.](#ior10ka024) | [Principal Accounting Fees and Services](#ior10ka024) | 33 |
| [**PART IV**](#ior10ka025) | [**PART IV**](#ior10ka025) |  |
| [Item 15.](#ior10ka026) | [Exhibits and Financial Statement Schedules](#ior10ka026) | 35 |
| [Item 16.](#ior10ka027) | [Form 10-K Summary](#ior10ka027) | 37 |
| [Signatures](#ior10ka028) | [Signatures](#ior10ka028) | 38 |

---

**FORWARD-LOOKING STATEMENTS**

Certain Statements in this Form 10-K are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. The words "estimate," "plan," "intend," "expect," "anticipate," "believe," and similar expressions are intended to identify forward-looking statements. The forward-looking statements are found at various places throughout this Report and in the documents incorporated herein by reference. The Company disclaims any intention or obligations to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Although we believe that our expectations are based upon reasonable assumptions, we can give no assurance that our goals will be achieved. Important factors that could cause our actual results to differ from estimates or projections contained in any forward-looking statements are described in Part I, Item 1A. "Risk Factors".

**PART I**

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| | |
|:---|:---|
| **ITEM 1.** | **BUSINESS** |

---

**General**

Income Opportunity Realty Investors, Inc. (the "Company"), a Nevada Corporation, is an externally managed company that invests in mortgage notes receivables and real property. As used herein, the terms "IOR", "the Company", "We", "Our", or "Us" refer to the Company.

*Controlling Shareholder*

Transcontinental Realty Investors, Inc. ("TCI"), whose common stock is traded on the New York Stock Exchange ("NYSE") under the symbol "TCI", is our controlling shareholder. As of December 31, 2025, TCI owned 84.6% of our stock and with its affiliates owned 91.2% of our common stock. Accordingly our financial results are included in the consolidated financial statements of TCI in its Form 10-K and in its tax filings. American Realty Investors, Inc. ("ARL"), whose common stock is traded on the NYSE under the symbol "ARL", in turn, owns approximately 78.4% of TCI.

As described in Part III, Item 13. "Certain Relationships and Related Transactions, and Director Independence", our officers and directors also serve as officers and directors of TCI and ARL.

*Management*

Our business is managed by Pillar Income Asset Management, Inc. ("Pillar") in accordance with an Advisory Agreement that is reviewed annually by our Board of Directors. Pillar is a wholly-owned affiliate of ARL's controlling stockholder.

Pillar's duties include, but are not limited to, locating, evaluating and recommending real estate and real estate-related investment opportunities. Pillar also arranges our debt and equity financing with unaffiliated independent third party lenders and investors. Pillar also serves as the contractual Advisor and Cash Manager to TCI. As the contractual advisor, Pillar is compensated by us under an Advisory Agreement that is more fully described in Part III, Item 10. "Directors, Executive Officers and Corporate Governance – The Advisor". We have no employees. Employees of Pillar render services to us in accordance with the terms of the Advisory Agreement.

In addition, as described in Part III, Item 13. "Certain Relationships and Related Transactions, and Director Independence", we compete with related parties of Pillar having similar investment objectives related to investment in mortgage notes receivables. In resolving any potential conflicts of interest which may arise, Pillar has informed us that it intends to exercise its best judgment as to what is fair and reasonable under the circumstances in accordance with applicable law.

**Business Plan and Investment Policy**

We invest in notes receivables that are collateralized by investments in land and/or multifamily properties. These investments have included notes receivables from Unified Housing Foundation, Inc. ("UHF") Due to our ongoing relationship and the significant investment in the performance of the collateral secured under the notes receivable, we consider UHF to be a related party.

**Human Capital**

We have no employees. Employees of Pillar render services to us in accordance with the terms of the Advisory Agreement.

**Available Information**

We maintain a website at www.incomeopp-realty.com. We make available through our website free of charge Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, reports filed pursuant to Section 16, and amendments to those reports, as soon as reasonably practicable after we electronically file or furnish such materials to the Securities and Exchange Commission. In addition, we have posted the charters for our Audit Committee, Compensation Committee, and Governance and Nominating Committee, as well as our Code of Business Conduct and Ethics, Corporate Governance Guidelines on Director Independence and other information on the website. These charters and principles are not incorporated in this Report by reference. We will also provide a copy of these documents free of charge to stockholders upon written request. The Company issues Annual Reports containing audited financial statements to its common shareholders.

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| | |
|:---|:---|
| **ITEM 1A.** | **RISK FACTORS** |

---

The following discusses those risk factors that we believe could have a material effect on our business, operations and financial condition. If any of these risks, as well as other risks and uncertainties that we have not yet identified or that we currently believe are not material, become realized, we could be materially adversely affected. In addition, the following risk factors may contain "forward looking statements" and should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations, and the financial statements and related notes in this Annual Report on Form 10-K. An investment in our securities involves various risks. All investors should carefully consider the following risk factors, applicable to us and our assets in conjunction with the other information in this report before investing in our securities.

***Our business may be impacted as a result of any health emergency.***

Epidemics, pandemics or other outbreaks of an illness, disease or virus, such as COVID-19, can severely disrupt general economic activities in a variety of ways that are difficult to predict. For example, governments and businesses may take actions to mitigate the public health crisis, including quarantines, stay-at-home orders, density limitations, social distancing measures, and/or restrictions on types of business that may continue to operate. The extent to which an outbreak could impact our business will depend on factors such as the duration and spread, its severity, the actions taken to contain the virus, the emergence and impact of future virus variants, and how quickly and to what extent normal economic and operating conditions resume. The impacts to our business could impact our financial condition, results of operations, cash flows, liquidity and our ability to meet our debt service obligations.

***We may not be able to access financial markets to obtain capital on a timely basis, or on acceptable terms.***

We may need to rely on third party capital sources for a portion of our capital needs, including capital for acquisitions and development. The public debt and equity markets are among the sources on which we rely. There is no guarantee that we will be able to access these markets, or any other source of capital. The ability to access the public debt and equity markets depends on a variety of factors, including:

● general economic conditions affecting these markets;

● our own financial structure and performance;

***Our degree of reliance on the operations of certain businesses to collect receivables can affect our cash flow.***

The collection of our receivables are dependent upon the ability of the assets held by others that secure the notes or fund receivable payments to produce sufficient cash flow to service these notes and receivables. Changes in general or local economic conditions in the southwestern United States can have an adverse effect on the payment of these notes or other receivables.

***Our degree of leverage could limit our ability to obtain additional financing or affect the market price of our common stock.***

The degree of leverage available to the Company could affect our ability to obtain additional financing for working capital, capital expenditures, acquisitions, development or other general corporate purposes. The degree of leverage could also make us more vulnerable to a downturn in business or the economy.

***An increase in interest rates would increase our interest costs on variable rate debt and could adversely impact our ability to refinance existing debt.***

We may incur indebtedness that bears interest at variable rates. If interest rates increase, so may our interest costs, which would adversely affect our cash flow and our ability to pay principal and interest on our debt. Further, rising interest rates could limit our ability to refinance any existing debt when it matures.

***Substantially all of our assets are receivables from related parties.***

We are the payee and holder of a note receivable secured by real properties owned by one entity and its affiliates which is payable through their cash flow, which can vary significantly from time to time. Payment on this note is dependent upon the successful operations of the organizations. Should the maker of the note be unable to produce the cash flow necessary to service the note, our collection of note and interest payment receipts could be adversely affected. The maker is in the business of making available affordable multi-family housing and is therefore subject to the challenges from governmental and non-governmental assistance organizations. The entity is determined to be a "related party" under ASC 850 due to our significant investment and that of our controlling shareholder in the performance of the collateral secured by the note receivable. In addition, we have a substantial receivable from our controlling shareholder.

We engage in a number of business transactions with related parties, including investment in notes and accounts receivable which related party transactions may not always be favorable to our business and may include terms, conditions and agreements that are not necessarily in our best interests. If a related party is unable to, or prevented from payment of any such note or account receivable in accordance with its terms, that event could have a material adverse effect upon our cash flow, profits and value of our assets. While such notes and accounts receivable are set forth in our financial statements at full value, such assumption is based solely upon our projection of the ability of the related party to fund payments on such assets in accordance with their respective terms and conditions but does not provide any allowance or suggested offset for any industry experience considerations. If any event occurs which might prevent or delay compliance by makers of such notes or accounts receivable, same could have an adverse impact upon our revenue collections.

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| | |
|:---|:---|
| **ITEM 1B** | **UNRESOLVED STAFF COMMENTS** |

---

None.

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| | |
|:---|:---|
| **ITEM 1C.** | **CYBERSECURITY** |

---

We rely on the information technology and systems maintained by Pillar and their employees to identify and manage material risks from cybersecurity threats. Pillar takes various actions, and incurs significant costs, to maintain and manage the operation and security of information technology and systems, including the data maintained in those systems. We believe that Pillar's Director of Information Technology and his associates endeavor to evaluate and address cyber risks in alignment with our business objectives, operational needs and industry-accepted standards, such as the National Institute of Standards and Technology and CIS Critical Security Controls frameworks. Since we rely on accounting, financial, operational, management and other information systems, including the Internet and third-party hosted services to conduct our operations, store personal and sensitive data, process financial information and results of operations for internal reporting purposes and comply with financial reporting, legal and tax requirements, we have processes and procedures in place to monitor the prevention, detection, mitigation and remediation of cybersecurity risks. These include, but are not limited to (i) maintaining a defined and practiced incident response plan; (ii) employing appropriate incident prevention and detection safeguards; (iii) maintaining a defined disaster recovery policy and employing disaster recovery software, where appropriate; (iv) educating, training and testing our user community on information security practices and identification of potential cybersecurity risks and threats; and (v) reviewing and evaluating new developments in the cyber threat landscape. Recognizing the complexity and evolving nature of cybersecurity risk, we engage with a range of external support in evaluating, monitoring and testing our cybersecurity management systems and related cyber risks.

The Audit Committee of the Board of Directors oversees cybersecurity matters, including the material risks related thereto, and regularly receives updates from Pillar's Director of Information Technology regarding the development and advancement of its cybersecurity strategy, as well as the related risks. In the event of a cybersecurity incident, a detailed incident response plan is in place for contacting authorities and informing key stakeholders, including management. We do not believe we are reasonably likely to be materially affected from cybersecurity threats, including as a result of previous incidents.

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| | |
|:---|:---|
| **ITEM 2.** | **PROPERTIES** |

---

At present, we don't own any real estate.

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| | |
|:---|:---|
| **ITEM 3.** | **LEGAL PROCEEDINGS** |

---

None.

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| | |
|:---|:---|
| **ITEM 4.** | **MINE SAFETY DISCLOSURES** |

---

Not applicable.

**PART II**

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| | |
|:---|:---|
| **ITEM 5.** | **MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES** |

---

Our common stock is listed and traded on the NYSE American Exchange under the symbol "IOR". The following table sets forth the high and low sales prices as reported in the consolidated reporting system of the NYSE American for the quarters ended:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** | **2024** |
|  | High | Low | High | Low |
| First Quarter | $19.00 | $16.05 | $17.82 | $13.11 |
| Second Quarter | $19.30 | $16.10 | $17.00 | $16.00 |
| Third Quarter | $19.69 | $17.75 | $19.00 | $15.69 |
| Fourth Quarter | $19.47 | $17.50 | $18.96 | $16.01 |

---

On March 10, 2026, the closing market price of our common stock on the NYSE American Exchange was $19.00 per share, and was held by 281 stockholders of record.

Our Board of Directors established a policy that dividend declarations on common stock would be determined on an annual basis following the end of each year. In accordance with that policy, the board determined not to pay any dividends on common stock in 2025, 2024 or 2023. Future distributions to common stockholders will be determined by the Board of Directors in light of conditions then existing, including our financial condition and requirements, future prospects, restrictions in financing agreements, business conditions and other factors deemed relevant by the Board.

On December 16, 2024, TCI announced an offer ("Tender Offer") to purchase up to 100,000 shares of our outstanding common shares at a price of $18 per share, subject to certain conditions. The Tender Offer was completed on January 29, 2025, which resulted in TCI's acquisition of 21,678 of our common shares. Upon completion of the Tender Offer, TCI ownership of our shares increased to 83.7%.

We have a stock repurchase program that allows for the repurchase of up to 1,650,000 shares of our common stock. This repurchase program has no termination date. During the year ended December 31, 2025, we repurchased a total of 44,536 shares in two block transactions at $18 per share. As of December 31, 2025, there were 513,003 shares remaining for repurchase.

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| | |
|:---|:---|
| **ITEM 6.** | **[RESERVED]** |

---

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| | |
|:---|:---|
| **ITEM 7.** | **MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS** |

---

The following discussion should be read in conjunction with our consolidated financial statements and related notes in Part II, Item 8 of this Report.

**Management's Overview**

We are an externally advised and managed company that invests in notes receivable that are collateralized by income-producing properties in the Southern United States and in the past, real property. Our current principal source of income is interest income on note receivables from related parties.

We have historically engaged in and may continue to engage in certain business transactions with related parties, including but not limited to asset acquisition, dispositions and financings. Transactions involving related parties cannot be presumed to be carried out on an arm's length basis due to the absence of free market forces that naturally exist in business dealings between two or more unrelated entities. Related party transactions may not always be favorable to our business and may include terms, conditions and agreements that are not necessarily beneficial to or in our best interest.

Our operations are managed by Pillar in accordance with an Advisory Agreement. Pillar's duties include, but are not limited to, locating, evaluating and recommending investment opportunities. We have no employees. Employees of Pillar render services to us in accordance with the terms of the Advisory Agreement. Pillar is considered to be a related party due to its common ownership with TCI, who is our controlling stockholder.

**Critical Accounting Policies**

The preparation of our consolidated financial statements in conformity with United States generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Some of these estimates and assumptions include judgments on the provisions for uncollectible accounts and fair value measurements. Our significant accounting policies are described in more detail in Note 2—Summary of Significant Accounting Policies in our notes to the consolidated financial statements. However, the following policies are deemed to be critical.

*Non-performing Notes Receivable*

The Company considers a note receivable to be non-performing when the maturity date has passed without principal repayment and the borrower is not making interest payments in accordance with the terms of the agreement.

*Interest recognition on Notes Receivable*

We record interest income as earned in accordance with the terms of the related loan agreements.

*Allowance for Estimated Losses*

We assess the collectability of notes receivable on a periodic basis, of which the assessment consists primarily of an evaluation of cash flow projections of the borrower to determine whether estimated cash flows are sufficient to repay principal and interest in accordance with the contractual terms of the note. We recognize impairments on notes receivable when it is probable that principal and interest will not be received in accordance with the contractual terms of the loan. The amount of the impairment to be recognized generally is based on the fair value of the partnership's real estate that represents the primary source of loan repayment (See Note 3 - Notes Receivable of our consolidated financial statements).

*Fair Value of Financial Instruments*

We apply the guidance in ASC Topic 820, "Fair Value Measurements and Disclosures," to the valuation of real estate assets. These provisions define fair value as the price that would be received to sell an asset or paid to transfer a liability in a transaction between market participants at the measurement date, establish a hierarchy that prioritizes the information used in developing fair value estimates and require disclosure of fair value measurements by level within the fair value hierarchy. The hierarchy gives the highest priority to quoted prices in active markets (Level 1 measurements) and the lowest priority to unobservable data (Level 3 measurements), such as the reporting entity's own data.

The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date and includes three levels defined as follows:

Level 1—Unadjusted quoted prices for identical and unrestricted assets or liabilities in active markets.

Level 2—Quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

Level 3—Unobservable inputs that are significant to the fair value measurement.

A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

*Related Parties*

We apply ASC Topic 805, "Business Combinations", to evaluate business relationships. Related parties are persons or entities who have one or more of the following characteristics, which include entities for which investments in their equity securities would be required, trust for the benefit of persons including principal owners of the entities and members of their immediate families, management personnel of the entity and members of their immediate families and other parties with which the entity may deal if one party controls or can significantly influence the decision making of the other to an extent that one of the transacting parties might be prevented from fully pursuing our own separate interests, or affiliates of the entity.

*Inflation*

The effects of inflation on our operations are not quantifiable. Revenues from property operations tend to fluctuate proportionately with inflationary increases and decreases in housing costs. Fluctuations in the rate of inflation also affect sales values of properties and the ultimate gain to be realized from property sales. To the extent that inflation affects interest rates, our earnings from short-term investments, the cost of new financings and the cost of variable interest rate debt will be affected.

*Environmental Matters*

Under various federal, state and local environmental laws, ordinances and regulations, we may be potentially liable for removal or remediation costs, as well as certain other potential costs, relating to hazardous or toxic substances (including governmental fines and injuries to persons and property) where property-level managers have arranged for the removal, disposal or treatment of hazardous or toxic substances. In addition, certain environmental laws impose liability for release of asbestos-containing materials into the air, and third parties may seek recovery for personal injury associated with such materials.

We are not aware of any environmental liability relating to the above matters that would have a material adverse effect on our business, assets or results of operations.

**Results of Operations**

The following discussion is based on our Consolidated Financial Statements Consolidated Statement of Operations, for the years ended December 31, 2025, 2024, and 2023 from Part II, Item 8. Financial Statements and Supplementary Data and is not meant to be an all-inclusive discussion of the changes in our net income applicable to common shares. Instead, we have focused on significant fluctuations within our operations that we feel are relevant to obtain an overall understanding of the change in income applicable to common shareholders.

Our operating expenses consist primarily of general and administrative costs such as audit and legal fees and administrative fees paid to a related party.

We also have other income and expense items. We receive interest income from the funds deposited with our Advisor at an interest rate indexed to the Secured Overnight Financing Rate ("SOFR"). We have receivables from related parties which also provide interest income.

*Comparison of the year ended December 31, 2025 to the year ended December 31, 2024:*

Our $0.7 million decrease in net income during the year ended December 31, 2025 is primarily attributed to the following:

● The $0.9 million decrease in interest income was primarily due to a decrease in interest rates in 2025 and 2024 .

● The $0.2 million decrease in income tax provision was primarily due to a decrease in interest income.

*Comparison of the year ended December 31, 2024 to the year ended December 31, 2023:*

See Item 7 of Part II in our Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on March 21, 2025 for a discussion of our results of operations for the year ended December 31, 2024.

**Liquidity and Capital Resources**

Our principal liquidity needs are to fund normal recurring expenses. Our principal sources of cash are and will continue to be the collection of mortgage notes receivables, and the collections of receivables and interests from related companies.

We anticipate that our cash and cash equivalents as of December 31, 2025, along with cash that will be generated in 2026 from notes and interest receivables, will be sufficient to meet all of our cash requirements.

*Cash Flow Summary*

The following summary discussion of our cash flows is based on the consolidated statements of cash flows in Part II, Item 8. "Consolidated Financial Statements and Supplementary Data" and is not meant to be an all-inclusive discussion of the changes in our cash flows for the periods presented below (dollars in thousands):

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | |
|  | **2025** | **2024** |<br>**Incr /(Decr)** |
| Net cash (used in) provided by operating activities | $(77) | $713 | $(790) |
| Net cash provided by investing activities | $74 | $27 | $47 |
| Net cash used in financing activities | $— | $(802) | $802 |

---

The decrease in cash from operating activities is primarily due to a change in related party receivables.

---

| | |
|:---|:---|
| **ITEM 7A.** | **QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.** |

---

Optional and not included.

---

| | |
|:---|:---|
| <br> **ITEM 8.** | **FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA** |

---

**INDEX TO FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
|  | **Page** |
| **Financial Statements** |  |
| [Report of Independent Registered Public Accounting Firm](#ior10kb001) (PCAOB ID 782) | 12 |
| [Consolidated Balance Sheets at December 31, 2025 and 2024](#ior10kb002) | 14 |
| [Consolidated Statements of Operations for the Years Ended December 31, 2025, 2024 and 2023](#ior10kb003) | 15 |
| [Consolidated Statements of Shareholders' Equity for the Years Ended December 31, 2025, 2024 and 2023](#ior10kb004) | 16 |
| [Consolidated Statements of Cash Flows for the Years Ended December 31, 2025, 2024 and 2023](#ior10kb005) | 17 |
| [Notes to Consolidated Financial Statements](#ior10kb006) | 18 |
| **Financial Statement Schedules** |  |
| [Schedule IV—Mortgage Loan Receivables on Real Estate](#ior10kb007) | 23 |

---

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors of and

Stockholders of Income Opportunity Realty Investors, Inc.

Dallas, Texas

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of Income Opportunity Realty Investors, Inc. and Subsidiaries as of December 31, 2025 and 2024, and the related consolidated statements of operations, comprehensive income, stockholders' equity, and cash flows for each of the years in the three years ended December 31, 2025, and the related notes and schedules (collectively referred to as the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Income Opportunity Realty Investors, Inc. as of December 31, 2025 and 2024 and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America.

**Basis of Opinion**

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Critical Audit Matters**

The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

**Transactions with and Balances Due from Related Parties**

Description of the Matter

The Company has significant transactions with and balances due from related parties. The Company performs an assessment as to whether substantially all the amounts due under these receivables are deemed probable of collection. When the Company concludes that it is not probable that it will collect amounts, the Company creates an allowance for the amount not probable of the collection.

Auditing the Company's collectability assessment is complex due to the judgment involved in the Company's determination of the collectability of these receivables. The determination involves consideration of the terms of the receivable, whether the receivable is currently performing, and any security for the receivable.

*How We addressed the Matter in Our Audit*

We obtained an understanding of the Company's controls over related party receivables and their collectability assessment. Our testing included, among other things, confirmation of the receivables, reviewing selected financial information of the related parties, reviewing subsequent collections and evaluating transactions documentation. The relevant financial statement accounts are receivables, notes and interest receivable from related parties and interest income from related parties.

**Emphasis of Related Party Transactions**

As described in the notes to the consolidated financial statements, Income Opportunity Realty Investors, Inc. and Subsidiaries has significant transactions with and balances due from related parties.

**Supplemental Information**

The supplemental information contained in Schedules IV has been subjected to audit procedures performed in conjunction with the audit of the Company's consolidated financial statements. The supplemental information is the responsibility of the Company's management. Our audit procedures included determining whether the supplemental information reconciles to the consolidated financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with the Security and Exchange Commission's rules. In our opinion, the supplemental information is fairly stated, in all material respects, the financial data required to be set forth therein in relation to the consolidated financial statements as a whole.

FARMER, FUQUA & HUFF, PC

Richardson, Texas

Auditor ID: 782

March 12, 2026

We have served as the Company's auditor since 2024.

**INCOME OPPORTUNITY REALTY INVESTORS, INC.**

**CONSOLIDATED BALANCE SHEETS**

**(Dollars in thousands, except par value amounts)**

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Assets |  |  |
| Current assets |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $6 | $9 |
| &nbsp;&nbsp;&nbsp;Interest receivable from related parties | 244 | 291 |
| &nbsp;&nbsp;&nbsp;Receivable from related party | 114595 | 110481 |
| &nbsp;&nbsp;&nbsp;Total current assets | 114845 | 110781 |
| Non-current assets |  |  |
| &nbsp;&nbsp;&nbsp;Note receivable from related party | 11072 | 11146 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $125917 | $121927 |
| Shareholders' equity |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, $0.01 par value, 10,000,000 shares authorized; 4,173,675 shares issued; and 4,066,178 and 4,066,178 outstanding at December 31, 2025 and 2024, respectively | 42 | 42 |
| &nbsp;&nbsp;&nbsp;Treasury stock at cost, 107,497 shares and 107,497 shares at December 31, 2025 and 2024, respectively | (1749) | (1749) |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 61955 | 61955 |
| &nbsp;&nbsp;&nbsp;Retained earnings | 65669 | 61679 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity | 125917 | 121927 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and equity | $125917 | $121927 |

---

The accompanying notes are an integral part of these consolidated financial statements.

**INCOME OPPORTUNITY REALTY INVESTORS, INC.**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

**(Dollars in thousands, except per share amounts)**

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Years Ended<br> December 31,** | **For the Years Ended<br> December 31,** | **For the Years Ended<br> December 31,** |
|  | **2025** | **2024** | **2023** |
| Revenues: |  |  |  |
| &nbsp;&nbsp;Other income | $— | $— | $— |
| Expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative (including $53, $52 and $254 for 2025, 2024 and 2023, respectively, from related parties) | 280 | 304 | 490 |
| &nbsp;&nbsp;&nbsp;Advisory fee to related party | 103 | 108 | 970 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 383 | 412 | 1460 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net operating loss | (383) | (412) | (1460) |
| Interest income from related parties | 5434 | 6299 | 10070 |
| Income tax provision | (1061) | (1236) | (1609) |
| Net income | $3990 | $4651 | $7001 |
| Earnings per share - basic and diluted | $0.98 | $1.14 | $1.68 |
| Weighted average common shares used in computing earnings per share | 4066178 | 4080369 | 4162516 |

---

The accompanying notes are an integral part of these consolidated financial statements.

**INCOME OPPORTUNITY REALTY INVESTORS, INC.** 

**CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY** 

**(Dollars in thousands, except share amounts)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Shares <br> Outstanding** | **Common <br> Stock** | **Treasury**<br> **Stock**  | **Paid-in**<br> **Capital**  | **Retained**<br> **Earnings** | **Total <br> Shareholders'<br> Equity** |
| Balance, January 1, 2023 | 4168414 | $42 | $(39) | $61955 | $50027 | $111985 |
| Net income |  |  |  |  | 7001 | 7001 |
| Repurchase of common shares | (57700) |  | (908) |  |  | (908) |
| Balance, December 31, 2023 | 4110714 | 42 | (947) | 61955 | 57028 | 118078 |
| Net income |  |  |  |  | 4651 | 4651 |
| Repurchase of common shares | (44536) |  | (802) |  |  | (802) |
| Balance, December 31, 2024 | 4066178 | 42 | (1749) | 61955 | 61679 | 121927 |
| Net income |  |  |  |  | 3990 | 3990 |
| Balance, December 31, 2025 | 4066178 | $42 | $(1749) | $61955 | $65669 | $125917 |

---

The accompanying notes are an integral part of these consolidated financial statements.

**INCOME OPPORTUNITY REALTY INVESTORS, INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Dollars in thousands)**

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **2023** |
| Cash Flow From Operating Activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | $3990 | $4651 | $7001 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash (used in) provided by operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest on related party notes receivable | 47 | 2 | 383 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Related party receivables | (4114) | (3940) | (6407) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable |  |  | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by operating activities | (77) | 713 | 973 |
| Cash Flow From Investing Activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Collection of notes receivable | 74 | 27 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by investing activities | 74 | 27 |  |
| Cash Flow From Financing Activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Repurchase of common shares |  | (802) | (908) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities |  | (802) | (908) |
| Net (decrease) increase in cash and cash equivalents | (3) | (62) | 65 |
| Cash and cash equivalents, beginning of year | 9 | 71 | 6 |
| Cash and cash equivalents, end of year | $6 | $9 | $71 |

---

The accompanying notes are an integral part of these consolidated financial statements.

**INCOME OPPORTUNITY REALTY INVESTORS, INC.**

**NOTES TO FINANCIAL STATEMENTS**

**(Dollars in thousands, except per share amounts)**

**1.** **Organization** 

Income Opportunity Investors, Inc. (the "Company") is an externally managed company that invests in mortgage notes receivables. As used herein, the terms "IOR", "the Company", "We", "Our", or "Us" refer to the Company.

Transcontinental Realty Investors, Inc. ("TCI"), whose common stock is traded on the NYSE under the symbol "TCI", owned 84.6% of our stock at December 31, 2025. In addition, an affiliate of TCI owned approximately 6.6% of our common stock at December 31, 2025. Accordingly our financial results are included in the consolidated financial statements of TCI's in their Form 10-K and in their tax filings. American Realty Investors, Inc. ("ARL"), whose common stock is traded on the NYSE under the symbol "ARL", in turn, own approximately 78.4% of TCI at December 31, 2025.

Our business is managed by Pillar Income Asset Management, Inc. ("Pillar") in accordance with an Advisory Agreement that is reviewed annually by our Board of Directors. Pillar is considered to be a related party (See Note 4 – Related Party Transactions).

Pillar's duties include, but are not limited to, locating, evaluating and recommending real estate and real estate-related investment opportunities. Pillar also arranges our debt and equity financing with third party lenders and investors.

**2.** **Summary of Significant Accounting Policies** 

*Basis of presentation*

These consolidated financial statements have been prepared in accordance with generally accepted accounting principles ("GAAP") in the United States of America.

We consolidate entities in which we are considered to be the primary beneficiary of a variable interest entity ("VIE") or have a majority of the voting interest of the entity. We have determined that we are a primary beneficiary of the VIE when we have (i) the power to direct the activities of a VIE that most significantly impacts its economic performance, and (ii) the obligations to absorb losses or the right to receive benefits that could potentially be significant to the VIE. In determining whether we are the primary beneficiary, we consider qualitative and quantitative factors, including ownership interest, management representation, ability to control decision and other contractual rights. We account for entities in which we have less than a controlling financial interest or entities where we are not deemed to be the primary beneficiary under the equity method of accounting. Accordingly, we include our share of the net earnings or losses of these entities in our results of operations.

We operate as a single reportable segment since operations principal source of income is interest on notes receivable from related parties. Our Chief Operating Decision Maker evaluates financial performance and allocates resources on a consolidated basis, rather than evaluating distinct business segments, and we provide enhanced disclosures related to significant expense categories in our financial statement footnotes.

Certain prior year amounts have been reclassified to conform to the current year presentation on the consolidated balance sheets, consolidated statements of operations and the consolidated statements of cash flows.

*Fair value measurement*

Fair value represents the price that would be received to sell an asset or paid to transfer a liability in a transaction between market participants at the measurement date. In determining fair value we apply the following hierarchy:

Level 1 —Unadjusted quoted prices for identical and unrestricted assets or liabilities in active markets.

Level 2 —Quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

Level 3 —Unobservable inputs that are significant to the fair value measurement.

**INCOME OPPORTUNITY REALTY INVESTORS, INC.**

**NOTES TO FINANCIAL STATEMENTS**

**(Dollars in thousands, except per share amounts)**

A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

*Related parties*

Related parties are persons or entities who have one or more of the following characteristics, which include entities for which investments in their equity securities would be required, trusts for the benefit of persons including principal owners of the entities and members of their immediate families, management personnel of the entity and members of their immediate families and other parties with which the entity may deal if one party controls or can significantly influence the decision making of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests, or affiliates of the entity.

*Cash and Cash Equivalents and Restricted Cash*

We consider all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents, for which cost approximates fair value.

*Concentration of credit risk*

We maintain our cash balances at commercial banks and through investment companies, the deposits that are insured by the Federal Deposit Insurance Corporation (FDIC). During the years ended December 31, 2025 and 2024, the Company did not maintain balances in excess of the insured amount.

*Income taxes*

We are a "C" corporation" for U.S. federal income tax purposes. However, we are included in the May Realty Holdings, Inc. (the "MRHI"). consolidated group for tax purposes. We have a tax sharing agreement that specifies the manner in which the group will share the consolidated tax liability and also how certain tax attributes are to be treated among members of the group.

*Comprehensive income*

Net income and comprehensive income (loss) are the same for the years ended December 31, 2025, 2024 and 2023.

*Use of estimates*

In the preparation of consolidated financial statements in conformity with GAAP, it is necessary for management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expense for the year ended. Actual results could differ from those estimates.

**3.** **Notes Receivable** 

We had four notes receivable issued by Unified Housing Foundation, Inc. ("UHF") with an aggregate balance of $11,146. Each of the notes bore interest at 12.0% and was to mature on December 31, 2032. Principal and interest payments on the notes from UHF are funded from surplus cash flow from operations, sale or refinancing of the underlying properties and are cross collateralized to the extent that any surplus cash available from any of the properties underlying the notes.

On October 1, 2023, we agreed to an amendment of the four UHF notes. Under the provisions of the amendment, the four notes were consolidated into a single note and the 12.0% fixed interest rate was replaced with a floating rate indexed to the Secured Overnight Financing Rate ("SOFR") in effect on the last day of the preceding calendar quarter. In connection with the amendment, $605 of accrued interest was forgiven in exchange for an increased participation in the proceeds from any future refinancing of the property by UHF.

**INCOME OPPORTUNITY REALTY INVESTORS, INC.**

**NOTES TO FINANCIAL STATEMENTS**

**(Dollars in thousands, except per share amounts)**

UHF is determined to be a related party due to our significant investment in the performance of the collateral secured by the note receivable. Principal and interest payments on the note are funded from surplus cash flow from operations, sale or refinancing of the underlying property and are cross collateralized to the extent that any surplus cash available from any of other property owned by UHF.

**4.** **Related Party Transactions** 

We engage in certain business transactions with related parties, including investment in notes receivables. Transactions involving related parties cannot be presumed to be carried out on an arm's length basis due to the absence of free market forces that naturally exist in business dealings between two or more unrelated entities. Related party transactions may not always be favorable to our business and may include terms, conditions and agreements that are not necessarily beneficial to or in our best interest.

Pillar is wholly owned by an affiliate of the MRHI, which owns approximately 90.8% of ARL, which owns approximately 78.4% of TCI, which owns 84.6% of the Company.

Advisory fees paid to Pillar were $103, $108 and $970 for the years ended December 31, 2025, 2024 and 2023, respectively.

Note receivable is an amount held by UHF (See Note 3 – Notes Receivable). UHF is determined to be a related party due to TCI's significant investment in the performance of the collateral secured by their notes receivable. Interest income on our note with UHF was $488, $588 and $547 for the years ended December 31, 2025, 2024 and 2023, respectively.

Receivable from related party was $114,595 and $110,481 at December 31, 2025 and 2024, respectively; which represents amounts outstanding advanced to Pillar net of unreimbursed fees ("Pillar Receivable"), which bears interest at SOFR. Interest income on Pillar Receivable was $4,946, $5,711 and $9,523 for the years ended December 31, 2025, 2024 and 2023, respectively.

**5.** **Stockholders Equity** 

Our decision to declare dividends on common stock is determined on an annual basis following the end of each year. In accordance with that policy, no dividends on our common stock were declared for 2025, 2024, or 2023. Future distributions to common stockholders will be determined in light of conditions then existing, including our financial condition and requirements, future prospects, restrictions in financing agreements, business conditions and other factors deemed relevant by our board of directors.

We have a stock repurchase program that allows for the repurchase of up to 1,650,000 shares of our common stock. This repurchase program has no termination date. We repurchased 57,700 and 44,536 shares during the years ended December 31, 2023 and 2024, respectively. As of December 31, 2025, there are 513,003 shares remaining that can be repurchased.

On December 16, 2024, TCI announced an offer ("Tender Offer") to purchase up to 100,000 shares of our outstanding common shares at a price of $18 per share, subject to certain conditions. The Tender Offer was completed on January 29, 2025, which resulted in the acquisition of 21,678 of our common shares. Upon completion of the Tender Offer, TCI ownership of our shares increased to 83.7%. TCI subsequently purchased an additional 32,845 of our common shares in the open market during the remainder of the year for an additional cost of $583.

TCI owned approximately 84.6% and 83.2% of our common shares at December 31, 2025 and December 31, 2024, respectively.

**INCOME OPPORTUNITY REALTY INVESTORS, INC.**

**NOTES TO FINANCIAL STATEMENTS**

**(Dollars in thousands, except per share amounts)**

**6.** **Income Taxes** 

We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. We recognize deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority.

The provision for income taxes consists of:

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** | **2023** |
| Current: |  |  |  |
| &nbsp;&nbsp;Federal | $1061 | $1236 | $1609 |
| &nbsp;&nbsp;State |  |  |  |
|  | $1061 | $1236 | $1609 |

---

**7.** **Commitments and Contingencies** 

We believe that we will generate excess cash from our notes receivables in the next twelve months; such excess, however, might not be sufficient to discharge all of our obligations as they become due.

**8.** **Quarterly Results of Operations** 

The following is a tabulation of our quarterly results of operations for the years 2025 and 2024. Quarterly results presented may differ from those previously reported in our Form 10-Q due to the reclassification of the operations:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025 Quarter Ended** | **2025 Quarter Ended** | **2025 Quarter Ended** | **2025 Quarter Ended** |
|  | **March 31,** | **June 30,** | **September 30,** | **December 31** |
| Net operating loss | $(95) | $(97) | $(90) | $(101) |
| Net income | 989 | 994 | 1031 | 976 |
| Net income per share - basic and diluted | $0.24 | $0.24 | $0.25 | $0.25 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2024 Quarter Ended** | **2024 Quarter Ended** | **2024 Quarter Ended** | **2024 Quarter Ended** |
|  | **March 31,** | **June 30,** | **September 30,** | **December 31** |
| Net operating loss | $(95) | $(114) | $(97) | $(106) |
| Net income | 1178 | 1162 | 1198 | 1113 |
| Net income per share - basic and diluted | $0.29 | $0.28 | $0.29 | $0.27 |

---

**INCOME OPPORTUNITY REALTY INVESTORS, INC.**

**NOTES TO FINANCIAL STATEMENTS**

**(Dollars in thousands, except per share amounts)**

**9.** **Subsequent Events** 

The date to which events occurring after December 31, 2025, the date of the most recent balance sheet, have been evaluated for possible adjustments to the financial statements or disclosure is March 12, 2026, which is the date of which the financial statements were available to be issued. There are no subsequent events that would require an adjustment to the financial statements.

**INCOME OPPORTUNITY REALTY INVESTORS, INC.**

**NOTES TO FINANCIAL STATEMENTS**

**(Dollars in thousands, except per share amounts)**

**SCHEDULE IV - MORTGAGE LOANS**

****

**December 31, 2025**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Description** | **Interest <br> Rate** | **Maturity <br> Date** | **Periodic Payment Terms** | **Prior <br> Liens** | **Face <br> Amount** | **Carrying <br> Value** |
| UHF - Timbers at The Park | 4.24% | 12/31/2032 | Payments from excess property cash flows | $12594 | $11072 | $11072 |

---

**INCOME OPPORTUNITY REALTY INVESTORS, INC.**

**NOTES TO FINANCIAL STATEMENTS**

**(Dollars in thousands, except per share amounts)** 

**SCHEDULE IV - MORTGAGE LOANS** 

**As of December 31, **

---

| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **2023** |
| Balance at January 1, | $11146 | $11173 | $11173 |
| Additions |  |  |  |
| Deductions | (74) | (27) |  |
| Balance at December 31, | $11072 | $11146 | $11173 |

---

---

| | |
|:---|:---|
| **ITEM 9.** | **CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE** |

---

None.

---

| | |
|:---|:---|
| **ITEM 9A.** | **CONTROLS AND PROCEDURES** |

---

**Evaluation of Disclosure Controls and Procedures**

Under the supervision and with the participation of our management, including our Principal Executive Officer and our Principal Financial Officer, we conducted an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e)) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our Principal Executive Officer and our Principal Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Based on this evaluation, our Principal Executive and our Principal Financial Officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report.

**Management's Report on Internal Control over Financial Reporting**

Management is responsible for establishing and maintaining adequate internal control over financial reporting for the Company. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with generally accepted accounting principles. There are inherent limitations to the effectiveness of any system of internal control over financial reporting. These limitations include the possibility of human error, the circumvention of overriding of the system and reasonable resource constraints. Because of its inherent limitations, our internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with policies or procedures may deteriorate.

Management assessed the effectiveness of our internal control over financial reporting as of December 31, 2025. In making this assessment, management used the criteria set forth in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013). Based on management's assessments and those criteria, management has concluded that Company's internal control over financial reporting was effective as of December 31, 2025.

This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial report. Management's report was not subject to attestation by our registered public accounting firm pursuant to temporary rules of the SEC that permit us to provide only management's report in this annual report.

**Changes in Internal Control over Financial Reporting**

In preparation for management's report on internal control over financial reporting, we documented and tested the design and operating effectiveness of our internal control over financial reporting. There were no changes in our internal controls over financial reporting (as such term is defined in Exchange Act Rule 13a-15(f)) that occurred during the year ended December 31, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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| | |
|:---|:---|
| **Item 9B.** | **OTHER INFORMATION** |

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Not applicable.

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| | |
|:---|:---|
| **Item 9C.** | **DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS** |

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Not applicable.

**PART III**

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| | |
|:---|:---|
| **ITEM 10.** | **DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE** |

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**Directors**

The affairs of the Company are managed by our Board of Directors ("Directors"). The Directors are elected at the annual meeting of stockholders or appointed by the incumbent Board and serve until the next annual meeting of stockholders or until a successor has been elected or approved.

An objective is for a majority of our Board to be independent directors. For a director to be considered independent, the Board must determine that the director does not have any direct or indirect material relationship with the Company. The Board has established guidelines to assist it in determining director independence which conform to, or are more exacting than, the independence requirements in the New York Stock Exchange ("NYSE") listing rules. The independence guidelines are set forth in our "Corporate Governance Guidelines". The text of this document has been posted on our website at www.incomeopp-realty.com ("Investor Relations Website") and is available in print to any shareholder who requests it. In addition to applying these guidelines, the Board will consider all relevant facts and circumstances in making an independence determination.

We have adopted a code of conduct that applies to all Directors, officers and employees, including our principal executive officer, principal financial officer and principal accounting officer. Stockholders may find our code of conduct on our website by going to our Investor Relations Website. We will post any amendments to the code of conduct, as well as any waivers that are required to be disclosed by the rules of the Security Exchange Commission (the "SEC") or the NYSE on our website.

Our Board of Directors has adopted charters for our Audit, Compensation and Governance and Nominating Committees of the Board of Directors. Stockholders may find these documents on our website by going to our Investor Relations Website. You may also obtain a printed copy of the materials referred to by contacting us at the following address:

Income Opportunity Realty Investors, Inc.

Attn: Investor Relations

1603 LBJ Freeway, Suite 800

Dallas, Texas 75234

Telephone: 469-522-4200

All members of the Audit Committee and Nominating and Corporate Governance Committees must be independent directors. Members of the Audit Committee must also satisfy additional independence requirements, which provide (i) that they may not accept, directly or indirectly, any consulting, advisory, or compensatory fee from the Company or any of its subsidiaries other than their director's compensation (other than in their capacity as a member of the Audit Committee, the Board of Directors, or any other committee of the Board), and (ii) no member of the Audit Committee may be an "affiliated person" of the Company or any of its subsidiaries, as defined by the SEC.

Our current Directors are listed below, together with their ages, terms of service, all positions and offices with us and our current advisor, Pillar, their principal occupations, business experience and directorships with other companies during the last five years or more. The designation "affiliated", when used below with respect to a director, means that the director is an officer, director or employee of Pillar, an officer of the Company, or an officer or director of a related party of the Company. The designation "independent", when used below with respect to a Director, means that the Director is neither an officer of the Company nor a director, officer or employee of Pillar but may be a director of the Company, although the Company may have certain business or professional relationships with such Director as discussed in Item 13. Certain Relationships and Related Transactions, and Director Independence.

HENRY A. BUTLER, age 75, Director, Independent, since February 2011 and Chairman of the Board since May 2011

Retired (since April 30, 2019); Mr. Butler served as Vice President for Pillar from April 2011 to April 30, 2019. He also served as Chairman of the Board since May 2009 and as a Director since November 2005 of ARL, and Chairman of the Board since May 2009 and a Director since November 2005 of TCI.

ROBERT A. JAKUSZEWSKI, age 63, Director, Independent, since March 2004

Mr. Jakuszewski has been Business Development Manager of Ivy Rehab since May 2025. He was a Territory Manager for Artesa Labs from April 2015 to May 2025, a Medical Specialist from January 2014 to April 2015 for VAYA Pharma, Inc., Senior Medical Liaison from January 2013 to July 2013 for Vein Clinics of America, and the Vice President of Sales and Marketing from September 1998 to December 2012 for New Horizons Communications, Inc. Mr. Jakuszewski has been a Director of the Company since March 2004. He has also been a Director of TCI since November 2005 and a Director of ARL since November 2005.

FERNANDO V. LARA CELIS, age 59, Director, Independent, since October 2023

Mr. Lara is an entrepreneur and the former General Manager and President of FY A Project, LLC, a Schlotzsky's Deli Franchisee (Restaurant and Fast Food) which owned and operated nine locations in the North Dallas, Texas area. He is also the General Manager and President of UDF de Mexico S.de R.L. de C. V., a Dallas, Texas based independent contractor which manages real estate projects Loma Bonita and La Laguna in Tampico, Mexico. Prior to 2006, Mr. Lara was employed by the Mexico State Superior Control Authority in Veracruz, Mexico as a General Auditor and/or Information Manager. He has also been a Director of ARL and TCI since October 2023.

TED R. MUNSELLE, age 70, Director, Independent, since May 2009

Mr. Munselle has been Vice President and Chief Financial Officer of Landmark Nurseries, Inc. since October 1998. On February 17, 2012, he was appointed as a member of the Board of Directors for Spindletop Oil & Gas Company and as Chairman of their Audit Committee. Spindletop's stock is traded on the Over-the-Counter (OTC) market. Mr. Munselle has been a Director of the Company since May 2009. He has also served as Director of TCI since February 2004 and Director of ARL since February 2004. Mr. Munselle is qualified as an Audit Committee financial expert within the meaning of SEC regulations and the Board of Directors has determined that he has accounting and related financial management expertise within the meaning of the listing standards of the NYSE. Mr. Munselle is a Certified Public Accountant.

**Board Meetings and Committees**

The Board of Directors held five meetings during 2025. For such year, no incumbent director attended fewer than 75% of the aggregate of (1) the total number of meetings held by the Board during the period for which he or she had been a director and (2) the total number of meetings held by all committees of the Board on which he or she served during the period that he served. Under our Corporate Governance Guidelines, each Director is expected to dedicate sufficient time, energy and attention to ensure the diligent performance of his or her duties, including by attending meetings of the stockholders of the Company, the Board and Committees of which he is a member. The Board of Directors has standing Audit, Compensation and Governance and Nominating Committees.

The members of the Board of Directors on the date of this Report and the Committees of the Board on which they serve are identified below:

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| | | | |
|:---|:---|:---|:---|
| **Director** | **Audit Committee** | **Governance and <br> Nominating**<br> **Committee** | **Compensation <br> Committee** |
| Henry A. Butler |  |  |  |
| Robert A. Jakuszewski | X | Chair | X |
| Ted R. Munselle | Chair | X | X |
| Fernando V. Lara Celis | X | X | Chair |

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Audit Committee.&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee is responsible for review and oversight of our operating and accounting procedures. Our Audit Committee charter is available on our Investor Relations Website. The Audit Committee is an "audit committee" for purposes of Section 3(a)(58) of the Exchange Act. All of the current members of the Audit Committee are independent within the meaning of the SEC Regulations, the listing standards of the NYSE and our Corporate Governance Guidelines. Ted R. Munselle, the chairman of our Audit Committee, is qualified as an Audit Committee financial expert within the meaning of SEC Regulations, and the Board has determined that he has accounting and related financial management expertise within the meaning of the listing standards of the NYSE. All of the members of the Audit Committee meet the experience requirements of the listing standards of the NYSE. The Audit Committee met five times during 2025.

Governance and Nominating Committee.&nbsp;&nbsp;&nbsp;&nbsp;The Governance and Nominating Committee is responsible for developing and implementing policies and practices relating to corporate governance, including reviewing and monitoring implementation of our Corporate Governance Guidelines. In addition, the Committee develops and reviews background information on candidates for the Board and makes recommendations to the Board regarding such candidates. The Committee also prepares and supervises the Board's annual review of director independence and the Board's performance self-evaluation. The Charter of the Governance and Nominating Committee is available on our Investor Relations Website. The Governance and Nominating Committee met two times during 2025.

Compensation Committee.&nbsp;&nbsp;&nbsp;&nbsp;The Compensation Committee is responsible for overseeing the policies of the Company relating to compensation to be paid by the Company to our principal executive officer and any other officers designated by the Board and make recommendations to the Board with respect to such policies, produce necessary reports and executive compensation for inclusion in our Proxy Statement in accordance with applicable rules and regulations and to monitor the development and implementation of succession plans for the principal executive officers and other key executives and make recommendations to the Board with respect to such plans. The charter of our Compensation Committee is available on our Investor Relations Website. All of the members of the Compensation Committee are independent within the meaning of the listing standards of the NYSE and our Corporate Governance Guidelines. The Compensation Committee is to be comprised of at least two directors who are independent of Management and the Company. The Compensation Committee met two times during 2025.

**Presiding Director**

The primary responsibility of our presiding director is to preside over periodic executive sessions of the Board in which any Management directors and other members of Management do not participate. The presiding director also advises the Chairman of the Board and, as appropriate, Committee Chairs with respect to agendas and information needs relating to Board and Committee meetings, provides advice with respect to the selection of Committee Chairs and performs other duties that the Board may from time to time delegate to assist the Board in fulfillment of its responsibilities.

The day following the annual meeting of stockholders held December 10, 2025 for all stockholders of record dated November 3, 2025, the full Board met and re-appointed Mr. Munselle as Presiding Director, to serve in such position until the Company's next annual meeting of stockholders to be held subsequently in 2026.

**Determination of Director's Independence**

Our Corporate Governance Guidelines ("Guidelines") meet or exceed the new listing standards adopted during that year by the NYSE. The full text of our Guidelines can be found on our Investor Relations Website.

Pursuant to the Guidelines, the Board undertook its annual review of director independence in May 2025 and during this review, the Board considered transactions and relationships between each director or any member of his or her immediate family and the Company and its subsidiaries and related parties, including those reported under Certain Relationships and Related Transactions below. The Board also examined transactions and relationship between directors or their related parties and members of our senior management or their related parties. As provided in the Guidelines, the purpose of such review was to determine whether such relationships or transactions were inconsistent with the determination that the director is independent.

As a result of these reviews, the Board affirmatively determined of the then directors, Messrs. Butler, Jakuszewski, Lara and Munselle are each independent of the Company and its Management under the standards set forth in the Corporate Governance Guidelines.

**Executive Officers**

Executive officers of the Company are listed below, all of whom are employed by Pillar. None of the executive officers receive any direct remuneration from the Company nor do any hold any options granted by the Company. Their positions with the Company are not subject to a vote of stockholders. In addition to the following executive officers, the Company has several vice presidents and assistant secretaries who are not listed herein. The ages, terms of service and all positions and offices with the Company, Pillar, other related entities, other principal occupations, business experience and directorships with other publicly-held companies during the last five years or more are set forth below. No family relationships exist among any of the executive officers or directors of the Company.

ERIK L. JOHNSON, 58

Mr. Johnson has served as President and Chief Executive Officer of the Company since May 2024. Previously, he served as the Interim Chief Executive Officer from April 2023 and as Executive Vice President and Chief Financial Officer from December 2021. Mr. Johnson also serves as President and Chief Executive Officer of Pillar, ARL and TCI. Prior to joining the Company and its affiliates, he served as Vice President of Financial Reporting at Macerich (NYSE: MAC) and has served as the Chief Accounting Officer of North American Scientific, Inc. He began his career as an auditor with PricewaterhouseCoopers and is a CPA.

LOUIS J. CORNA, 78

Mr. Corna has served as Executive Vice President, General Counsel/Tax Counsel and Secretary of the Company, ARL and TCI since February 2004. He has also been Executive Vice President since March 2011 and Secretary since December 2010 of Pillar. Mr. Corna was also a Director and Vice President from June 2004 to December 2010 and Secretary from January 2005 to December 2010 of First Equity Properties, Inc. He is also a CPA.

ALLA DZYUBA, 48

Mrs. Dzyuba has served as the Senior Vice President and Chief Accounting Officer of the Company since December 2024. She also serves as Senior Vice President and Chief Accounting Officer of ARL and TCI. Mrs. Dzyuba has over twenty-two years of real estate accounting and financial reporting experience, including six years of broker-dealer regulatory reporting experience.

**Code of Ethics**

We have adopted a code of ethics entitled "Code of Business Conduct and Ethics" that applies to all directors, officers, and employees (including those of our Advisor). In addition, we have adopted a code of ethics entitled "Code of Ethics for Senior Financial Officers" that applies to the principal executive officer, president, principal financial officer, chief financial officer, chief accounting officer, and controller. The text of these documents has been posted on our Investor Relations Website and are available in print to any stockholder who requests them.

**Compliance with Section 16(a) of the Exchange Act**

Under the securities laws of the United States, the directors, executive officers, and any persons holding more than 10% of our shares of Common stock are required to report their share ownership and any changes in that ownership to the SEC. Specific due dates for these reports have been established and we are required to report any failure to file by these dates. All of these filing requirements were satisfied by our directors, executive officers, and 10% holders during the fiscal year ending December 31, 2025. In making these statements, we have relied on the written representations of our incumbent directors and executive officers, 10% holders and copies of the reports that they have filed with the SEC. In December 2021, the Board of Directors adopted the Company's Insider Trading Policy, a copy of which is available on our website at www.incomeopp-realty.com, at Investor Relations.

**The Advisor**

Pillar has been our Advisor and Cash Manager since April 30, 2011 in accordance with an Advisory Agreement and a Cash Management Agreement. On May 7, 2024, the Advisory Agreement was amended and restated to clarify and revised several separate fees into a single gross asset value fee and a net income fee plus certain specified allocated reimbursements. The Amended Agreement, did not change any duties or responsibilities of either Pillar or the Company.

Although the Board of Directors is directly responsible for managing the affairs of the Company, and for setting the policies which guide it, our day-to-day operations are performed by Pillar, as the contractual advisor, under the supervision of the Board. Pillar's duties include, but are not limited to accounting, legal, capital market, administrative and executive services. Additionally, Pillar serves as a consultant to the Board with regard to their decisions in connection with our business plan and investment policy. Pillar also serves as an Advisor and Cash Manager to ARL and TCI.

Pillar, a Nevada corporation, is owned by Realty Advisors, Inc. ("RAI"), a Nevada corporation, which is owned by May Realty Holdings, Inc. ("MRHI"), a Delaware corporation, which is owned by and/or for the benefit of, the children and grandchildren of the late Gene E. Phillips.

Under the Advisory Agreement, Pillar is required to annually formulate and submit, for Board approval, a budget and business plan containing a twelve-month forecast of operations and cash flow, a general plan for asset sales and purchases, lending, foreclosure and borrowing activity, and other investments. Pillar is required to report quarterly to the Board on the Company's performance against the business plan. In addition, all transactions with Pillar require prior Board approval, unless they are explicitly provided for in the approved business plan or are made pursuant to authority expressly delegated to Pillar by the Board.

The Advisory Agreement also requires prior Board approval for the retention of all consultants and third party professionals, other than legal counsel. The Advisory Agreement provides that Pillar shall be deemed to be in a fiduciary relationship to our stockholders; contains a broad standard governing Pillar's liability for losses incurred by us; and contains guidelines for Pillar's allocation of investment opportunities as among itself, the Company and other entities it advises.

The Advisory Agreement provides for Pillar to receive, as compensation for basic management and advisory services, a gross asset fee ("GAV Fee") of 0.0625% per month (0.75% per annum) of the average of the gross asset value (total assets less allowance for amortization, depreciation or depletion and valuation reserves) and excludes receivables from Pillar. In addition, Pillar receives an annual net income fee ("Net Income Fee") equal to 7.5% of our adjusted net income, which is defined as our net income before effect of income tax and interest on any receivables from the Advisor. The GAV Fee and the Net Income Fee are collectively referred to herein as the Advisory Fee.

The Advisory Agreement further provides that Pillar shall bear the cost of certain employee expenses; rent and other office expenses of both Pillar and us (unless we maintains office space separate from that of Pillar); costs not directly identifiable to our business; and miscellaneous administrative expenses relating to the performance by Pillar of its duties under the Advisory Agreement.

We do not have any employees and rely upon Pillar for employee related services, including but not limited to asset management, legal services, accounting services, capital markets, administrative and executive services. We reimburse the Advisor on a monthly basis, for our pro-rata portion (as reasonably agreed to between the Advisor and a majority of the Company's Independent Directors) of all expenses related to (i) employment of the Advisor's personnel who are actively engaged in the services to the Company ("Service Employees") and (ii) the reasonable travel and other out-of-pocket costs of the Service Employees. Such expenses shall include, but are not limited to, salary, wages, payroll taxes and the cost of employee benefit plans.

We have a Cash Management Agreement with Pillar that provides that our funds may be delivered to Pillar which has a deposit liability to us and is responsible for payment of all payables and investment of all excess funds which earned interest at the Secured Overnight Financing Rate ("SOFR"), as set quarterly on the first day of each calendar quarter. Borrowings from Pillar for our benefit bear the same interest rate. The term of the Cash Management Agreement is coterminous with the Advisory Agreement, and is automatically renewed each year unless terminated with the Advisory Agreement. We believe that the terms of the Advisory Agreement are at least as fair as terms that could be obtained from unaffiliated third parties.

Situations may develop in which our interests are in conflict with those of one or more directors or officers in their individual capacities, or of Pillar, or of their respective related parties. In addition to services performed for us, as described above, Pillar actively provides similar services as agent for, and advisor to, other real estate enterprises, including persons and entities involved in real estate development and financing, including ARL and TCI. The Advisory Agreement provides that Pillar may also serve as advisor to other entities.

As advisor, Pillar is a fiduciary of our public investors. In determining to which entity a particular investment opportunity will be allocated, Pillar will consider the respective investment objectives of each entity and the appropriateness of a particular investment in light of each such entity's existing mortgage note and real estate portfolios and business plan. To the extent any particular investment opportunity is appropriate to more than one such entity, such investment opportunity will be allocated to the entity that has had funds available for investment for the longest period of time, or, if appropriate, the investment may be shared among various entities. Refer to Part III, Item 13 "Certain Relationships and Related Transactions, and Director Independence".

Pillar may assign the Advisory Agreement only with our prior consent.

The principal executive officers of Pillar are set forth below:

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| | |
|:---|:---|
| **Name** | **Officers** |
| Erik L. Johnson | President and Chief Executive Officer |
| Louis J. Corna | Executive Vice President and Secretary |
| Gina H. Kay | Executive Vice President and Chief Accounting Officer |

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Mr. Johnson is one of two directors of Pillar.

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| | |
|:---|:---|
| **ITEM 11.** | **EXECUTIVE COMPENSATION** |

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We have no employees, payroll or benefit plans and pay no compensation to our executive officers. Our executive officers are also officers and employees of Pillar, our Advisor, and are compensated by Pillar. Such executive officers perform a variety of services for Pillar and the amount of their compensation is determined solely by Pillar. Under the terms of the Advisory Agreement, we do reimburse Pillar for certain expenses - See Item 10, "Directors, Executive Officers and Corporate Governance" for a more detailed discussion of the compensation payable to Pillar by us.

The only remuneration paid by us is to our directors who are not officers or employees of Pillar or its related companies. The Independent Directors (1) review our business plan to determine that it is in the best interest of our stockholders, (2) review the advisory contract, (3) supervise the performance of the advisor and review the reasonableness of the compensation paid to the advisor in terms of the nature and quality of services performed, (4) review the reasonableness of our total fees and expenses and (5) select, when necessary, a qualified independent real estate appraiser to appraise properties acquired.

Except for Henry A. Butler, who is paid a fee per meeting attended, each non-affiliated Director is entitled to receive an annual retainer of $5,000, with the Chairman of the Audit Committee to receive a one-time annual fee of $500. Directors who are also employees of the Company or its advisor receive no additional compensation for service as a Director.

During the year ended December 31, 2025, $17,930 was paid to non-employee Directors in total Directors' fees. The fees paid to the directors are as follows: Henry A. Butler $2,430; Robert A. Jakuszewski, $5,000; Fernando V. Lara Celis, $5,000; and Ted R. Munselle, $5,500.

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|:---|:---|
| **ITEM 12.** | **SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS** |

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**Security Ownership of Certain Beneficial Owners**

The following table sets forth the ownership of our common stock, both beneficially and of record, both individually and in the aggregate, for those persons or entities known to be beneficial owners of more than 5.0% of the outstanding shares of our common stock as of the close of business on March 10, 2026.

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| | | |
|:---|:---|:---|
| | **Amount and**<br> **Nature of**<br> **Beneficial**<br> **Ownership\*** | **Approximate<br> Percent** <br> **of Class\*\*** |
| **Transcontinental Realty Investors, Inc.** | 3438587 | 84.6% |
| 1603 LBJ Freeway, Suite 800 |  |  |
| Dallas, Texas 75234 |  |  |
| **Realty Advisors, Inc.** | 269299 | 6.6% |
| 1603 LBJ Freeway, Suite 800 |  |  |
| Dallas, Texas 75234 |  |  |

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\* "Beneficial Ownership" means the sole or shared power to vote, or to direct the voting of, a security or investment power with respect to a security, or any combination thereof.

\*\* Percentage is based upon 4,066,178 shares of Common stock outstanding at March 10, 2026.

**Security Ownership of Management.**

The following table sets forth the ownership of our common stock, both beneficially and of record, both individually and in the aggregate, for our directors and executive officers as of the close of business on March 10, 2026.

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| | | |
|:---|:---|:---|
| **Name of Beneficial Owner** | **Amount and**<br> **Nature of**<br> **Beneficial**<br> **Ownership\*** | **Approximate**<br> **Percent** <br> **of Class\*\*** |
| Henry A. Butler |  | —% |
| Fernando V. Lara Celis |  | —% |
| Louis J. Corna |  | —% |
| Alla Dzyuba |  | —% |
| Robert A. Jakuszewski |  | —% |
| Erik L. Johnson |  | —% |
| Ted R. Munselle |  | —% |
| All Directors and Executive Officers as a group (7 individuals) |  | —% |

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\* Beneficial Ownership" means the sole power to vote, or to direct the voting of, a security or investment power with respect to a security, or any combination thereof.

\*\* Percentages are based upon 4,066,178 shares of Common Stock outstanding at March 10, 2026.

Messrs. Butler, Jakuszewski, Lara and Munselle are also directors of TCI and each expressly disclaims any beneficial ownership of any securities of the Company owned by TCI.

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| | |
|:---|:---|
| **ITEM 13.** | **CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE** |

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**Policies with Respect to Certain Activities**

Article 14 of our Articles of Incorporation provides that we shall not, directly or indirectly, contract or engage in any transaction with (1) any director, officer or employee of the Company, (2) any director, officer or employee of the advisor, (3) the advisor, or (4) any affiliate or associate (as such terms are defined in Rule 12b-2 under the Exchange Act of any of the aforementioned persons, unless (a) the material facts as to the relationship among or financial interest of the relevant individuals or persons and as to the contract or transaction are disclosed to or are known by our Board of Directors or the appropriate committee thereof and (b)our Board of Directors or committee thereof determines that such contract or transaction is fair to the Company and simultaneously authorizes or ratifies such contract or transaction by the affirmative vote of a majority of our independent directors entitled to vote thereon.

Article 14 defines an "Independent Director" (for purposes of that Article) as one who is neither an officer or employee of the Company, nor a director, officer or employee of our advisor.

Our policy is to have such contracts or transactions approved or ratified by a majority of the disinterested Directors with full knowledge of the character of such transactions, as being fair and reasonable to the stockholders at the time of such approval or ratification under the circumstances then prevailing. Such Directors also consider the fairness of such transactions to the Company. We believe that, to date, such transactions have represented the best investments available at the time and they were at least as advantageous to us as other investments that could have been obtained.

We may enter into future transactions with entities, the officers, directors, or stockholders of which are also officers, directors, or stockholders of the Company, if such transactions would be beneficial to our operations and consistent with our then-current investment objectives and policies, subject to approval by a majority of disinterested Directors as discussed above.

We do not prohibit its officers, directors, stockholders, or related parties from engaging in business activities of the types conducted by the Company.

**Certain Business Relationships**

Pillar has been our Advisor and Cash Manager since April 30, 2011. Although the Board of Directors is directly responsible for managing our affairs, and for setting the policies which guide it, our day-to-day operations are performed by Pillar, as the contractual advisor, under the supervision of the Board. Pillar's duties include, but are not limited to, locating, evaluating and recommending real estate and real estate-related investment opportunities and arranging debt and equity financing for the Company with third party lenders and investors. Additionally, Pillar serves as a consultant to the Board with regard to their decisions in connection with our business plan and investment policy. Pillar also serves as an Advisor and Cash Manager to ARL and TCI. As the contractual advisor, Pillar is compensated under an Advisory Agreement that is more fully described in Part III, Item 10. "Directors, Executive Officers and Corporate Governance – The Advisor". We have no employees and as such, employees of Pillar render services to us in accordance with the terms of the Advisory Agreement.

Pillar is owned by RAI, which is owned by MRHI, which is owned by the May Trust.

All of our directors also serve as Directors of ARL and TCI. Our executive officers also serve as executive officers of ARL and TCI. As such, they owe fiduciary duties to that entity as well as to Pillar under applicable law. ARL and TCI have the same relationship with Pillar, as does the Company.

We are part of a tax sharing and compensating agreement with respect to federal income taxes among the Company, ARL and TCI. In accordance with the agreement, our expense (benefit) in each year is calculated based on the amount of losses absorbed by taxable income multiplied by the maximum statutory tax rate of 21%.

**Related Party Transactions**

The Company has historically engaged in and may continue to engage in certain business transactions with related parties, including but not limited to asset acquisition and dispositions. Transactions involving related parties cannot be presumed to be carried out on an arm's length basis due to the absence of free market forces that naturally exist in business dealings between two or more unrelated entities. Related party transactions may not always be favorable to our business and may include terms, conditions and agreements that are not necessarily beneficial to or in the best interest of our company.

In 2025, we paid Pillar advisory fees of $0.1 million.

As of December 31, 2025, we had notes and interest receivables of $11.1 million and $0.2 million, respectively, due from related parties. Refer to Part 2, Item 8. Note 3 – Notes Receivable of our consolidated financial statements. During the current period, we recognized interest income of $0.6 million from this related party notes receivable.

From time to time, we have made advances and/or borrowings to/from Pillar in accordance with our Cash Management Agreement. These borrowings bear interest at SOFR, as set quarterly on the first day of each calendar quarter. At December 31, 2025, we had a receivable from related parties of $114.6 million and recognized interest income of $4.9 million during the year.

**Director Independence**

See "Determination of Director Independence" under Item 10 above to which reference is made.

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| | |
|:---|:---|
| **ITEM 14.** | **PRINCIPAL ACCOUNTING FEES AND SERVICES** |

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On January 2, 2024 of Swalm & Associates P.C. ("Swalm") notified us that they were ceasing to be our auditors due to the upcoming retirement of their principle. Effective January 4, 2024, our Audit Committee engaged Farmer Fuqua & Huff P.C. ("FFH") to audit our consolidated financial statements for the year ending December 31, 2023.

We were billed by FFH for the services for the years ended December 31, 2025 and 2024 as follows:

Audit Fees. Fees for audit services were $43,200 and $55,200 for the years ended December 31, 2025 and 2024, respectively. These are fees for professional services performed by the principal auditor for the audit of the Company's annual financial statements and review of financial statements included in the Company's 10-Q filings and services that are normally provided in connection with statutory and regulatory filing or engagement.

Audit-Related Fees. No fees for audit-related services were paid for the years ended December 31, 2025 and 2024. These are fees for assurance and related services performed by the principal auditor that are reasonably related to the performance of the audit or review of the Company's financial statements. These services include attestations by the principal auditor that are not required by statute or regulation and consulting on financial accounting/reporting standards.

Tax Fees. No fees for tax services were paid for the years ended December 31, 2025 and 2024, respectively. These are fees for professional services performed by the principal auditor with respect to tax compliance, tax planning, tax consultation, returns preparation and review of returns.

All Other Fees. No other fees were paid for the years ended December 31, 2025 and 2024. These are fees for other permissible work performed by the principal auditor that do not meet the above category descriptions.

All services rendered by the principal auditors are permissible under applicable laws and regulations and were pre-approved by either the Board of Directors or the Audit Committee, as required by law. The fees paid to the principal auditors for the services described in the above table fall under the categories listed below:

These services are actively monitored (as to both spending level and work content) by the Audit Committee to maintain the appropriate objectivity and independence in the principal auditor's core work, which is the audit of the Company's consolidated financial statements.

The Audit Committee has established policies and procedures for the approval and pre-approval of audit services and permitted non-audit services. The Audit Committee has the responsibility to engage and terminate our independent auditors, to pre-approve their performance of audit services and permitted non-audit services, to approve all audit and non-audit fees, and to set guidelines for permitted non-audit services and fees. All fees for December 31, 2025 and 2024 were pre-approved by the Audit Committee or were within the pre-approved guidelines for permitted non-audit services and fees established by the Audit Committee, and there were no instances of waiver of approved requirements or guidelines during the same periods.

Our Audit Committee has adopted a pre-approval policy of audit and non-audit services (the "Policy"), which sets forth the procedures and conditions pursuant to which services to be performed by the independent auditor are to be pre-approved. Consistent with the SEC rules establishing two different approaches to pre-approving non-prohibited services, the Policy of the Audit Committee covers Pre-approval of audit services, audit-related services, international administration tax services, non-U.S. income tax compliance services, pension and benefit plan consulting and compliance services, and U.S. tax compliance and planning. At the beginning of each fiscal year, the Audit Committee will evaluate other known potential engagements of the independent auditor, including the scope of work proposed to be performed and the proposed fees, and will approve or reject each service, taking into account whether services are permissible under applicable law and the possible impact of each non-audit service on the independent auditor's independence from management. Typically, in addition to the generally pre-approved services, other services would include due diligence for an acquisition that may or may not have been known at the beginning of the year. The Audit Committee has also delegated to any member of the Audit Committee designated by the Board or the financial expert member of the Audit Committee responsibilities to pre-approve services to be performed by the independent auditor not exceeding $25,000 in value or cost per engagement of audit and non-audit services, and such authority may only be exercised when the Audit Committee is not in session.

**PART IV**

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| | |
|:---|:---|
| **ITEM 15.** | **EXHIBITS AND FINANCIAL STATEMENT SCHEDULES** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The following documents are filed as part of this Report:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. *Financial Statements* 

Report of Independent Registered Public Accounting Firm

Consolidated Balance Sheets as of December 31, 2025 and 2024

Consolidated Statements of Operations for the Years Ended December 31, 2025, 2024, and 2023

Consolidated Statements of Stockholders' Equity for the Years Ended December 31, 2025, 2024, and 2023

Consolidated Statements of Cash Flows for the Years Ended December 31, 2025, 2024, and 2023

Notes to Financial Statements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. *Financial Statement Schedules* 

Schedule IV—Mortgage Loan Receivables on Real Estate

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*c.* *Exhibits* 

The following documents are filed as Exhibits to this Report:

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| | |
|:---|:---|
| 3.1 | [Certificate of Restatement of Articles of Incorporation of Income Opportunity Realty Investors, Inc., dated August 3, 2000 (incorporated by reference to Exhibit 3.0 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2000)](http://www.sec.gov/Archives/edgar/data/949961/000093066100002898/0000930661-00-002898-index.htm). |
| 3.2 | [Certificate of Correction of Restated Articles of Incorporation of Income Opportunity Realty Investors, Inc., dated August 29, 2000 (incorporate by reference to Exhibit 3.1 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2000).](http://www.sec.gov/Archives/edgar/data/949961/000093066100002898/0000930661-00-002898-index.htm) |
| 3.3 | [Articles of Amendment to the Restated Articles of Incorporation of Income Opportunity Realty Investors, Inc. decreasing the number of authorized shares of and eliminating Series B Cumulative Convertible Preferred Stock dated August 26, 2003 (incorporated by reference to Exhibit 3.3 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2003).](http://www.sec.gov/Archives/edgar/data/949961/000095013403015349/0000950134-03-015349-index.htm) |
| 3.4 | [Articles of Amendment to the Restated Articles of Incorporation of Income Opportunity Realty Investors, Inc. decreasing the number of authorized shares of and eliminating Series I Cumulative Preferred Stock dated October 1, 2003 (incorporated by reference to Exhibit 3.4 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2003).](http://www.sec.gov/Archives/edgar/data/949961/000095013403015349/0000950134-03-015349-index.htm) |
| 3.5 | [Certificate of Amendment to the Articles of Incorporation of Income Opportunity Realty Investors, Inc. amending Article TENTH, Subpart C (incorporated by reference to Exhibit 3.5 to the Registrant's Current Report on Form 8-K for event occurring on December 28, 2023, filed January 30, 2024).](http://www.sec.gov/Archives/edgar/data/949961/000121465924001447/ex3_5.htm) |
| 3.6 | By-laws of Income Opportunity Realty Investors, Inc. (incorporated by reference to Exhibit 3.2 to the Registrant's Registration Statement on Form S-4, filed on December 30, 1999). |
| 4.1 | [Certificate of Designations, Preferences and Relative Participating or Optional or Other Special Rights, and Qualifications, Limitations or Restrictions Thereof of Series F Redeemable Preferred Stock of Income Opportunity Realty Investors, Inc., dated June 11, 2001 (incorporated by reference to Exhibit 4.1 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2001).](http://www.sec.gov/Archives/edgar/data/949961/000093066102000784/0000930661-02-000784-index.htm) |
| 4.2 | [Certificate of Withdrawal of Preferred Stock, Decreasing the Number of Authorized Shares of and Eliminating Series F Redeemable Preferred Stock, dated June 18, 2002 (incorporated by reference to Exhibit 3.0 to the Registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2002).](http://www.sec.gov/Archives/edgar/data/949961/000093066102002927/0000930661-02-002927-index.htm) |
| 4.3 | [Certificate of Designation, Preferences and Rights of the Series I Cumulative Preferred Stock of Income Opportunity Realty Investors, Inc., dated February 3, 2003 (incorporated by reference to Exhibit 4.3 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2002).](http://www.sec.gov/Archives/edgar/data/949961/000093066103001383/0000930661-03-001383-index.htm) |
| 4.4 | [Certificate of Designation for Nevada Profit Corporations designating the Series J 8% Cumulative Convertible Preferred Stock as filed with the Secretary of State of Nevada on March 16, 2006 (incorporated by reference to Registrant current report on Form 8-K for event of March 16, 2006).](http://www.sec.gov/Archives/edgar/data/949961/000118143106021077/0001181431-06-021077-index.htm) |
| 10.1 | [Amended and Restated Advisory Agreement between Income Opportunity Realty Investors, Inc. and Pillar Income Asset Management, LLC, dated May 7, 2024 (incorporated by reference to Exhibit 10.0 to the Registrant's Current Report on Form 8-K, dated May 7, 2024).](http://www.sec.gov/Archives/edgar/data/949961/000199937124005726/ex10-1.htm) |
| 14.0 | Code of Ethics for Senior Financial Officers (incorporated by reference to Exhibit 14.0 to the Registrant's Annual Report on Form 10-K for the year ended December 31, 2004). |
| 21.1 \* | Subsidiaries of the Registrant. |
| 31.1 \* | [Section 302 Certification of Erik L. Johnson, Chief Executive Officer.](ex31-1.htm) |

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| | |
|:---|:---|
| 31.2 \* | [Section 302 Certification of Alla Dzyuba, Chief Accounting Officer.](ex31-2.htm) |
| 32.1 \* | [Section 906 Certifications of Erik L. Johnson and Alla Dzyuba.](ex32-1.htm) |
| 101.INS | XBRL Instance Document |
| 101.SCH | XBRL Taxonomy Extension Schema Document |
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB | XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |

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\* Filed herewith.

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| | |
|:---|:---|
| **ITEM 16.** | **FORM 10-K SUMMARY** |

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Optional and not included herein.

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

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| | | |
|:---|:---|:---|
|  | INCOME OPPORTUNITY REALTY INVESTORS, INC. | INCOME OPPORTUNITY REALTY INVESTORS, INC. |
| Dated: March 12, 2026 | By: | &nbsp;&nbsp;/s/ ERIK L. JOHNSON |
|  |  | &nbsp;&nbsp;Erik L. Johnson |
|  |  | &nbsp;&nbsp;President and Chief Executive Officer |
|  |  | &nbsp;&nbsp;(Principal Executive Officer) |

---

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Signature** | &nbsp;&nbsp;**Title** | **Date** |
| &nbsp;&nbsp;/s/ HENRY A. BUTLER | &nbsp;&nbsp;Chairman of the Board and Director | &nbsp;&nbsp;March 12, 2026 |
| &nbsp;&nbsp;Henry A. Butler |  |  |
| &nbsp;&nbsp;/s/ ROBERT A. JAKUSZEWSKI | &nbsp;&nbsp;Director | &nbsp;&nbsp;March 12, 2026 |
| &nbsp;&nbsp;Robert A. Jakuszewski |  |  |
| &nbsp;&nbsp;/s/ FERNANDO V. LARA CELIS | &nbsp;&nbsp;Director | &nbsp;&nbsp;March 12, 2026 |
| &nbsp;&nbsp;Fernando V. Lara Celis |  |  |
| &nbsp;&nbsp;/s/ TED R. MUNSELLE | &nbsp;&nbsp;Director | &nbsp;&nbsp;March 12, 2026 |
| &nbsp;&nbsp;Ted R. Munselle |  |  |
| &nbsp;&nbsp;/s/ ERIK L. JOHNSON | &nbsp;&nbsp;President and Chief Executive Officer | &nbsp;&nbsp;March 12, 2026 |
| &nbsp;&nbsp;Erik L. Johnson | &nbsp;&nbsp;(Principal Executive Officer) |  |
| &nbsp;&nbsp;/s/ ALLA DZYUBA | &nbsp;&nbsp;Senior Vice President and Chief Accounting Officer | &nbsp;&nbsp;March 12, 2026 |
| &nbsp;&nbsp;Alla Dzyuba | &nbsp;&nbsp;(Principal Financial Officer) |  |

---

## Exhibit 31.1

[Income Opportunity Realty Investors, Inc. 10-K](ior-10k_123125.htm)

**Exhibit 31.1**

**CERTIFICATION**

I, Erik L. Johnson, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Income Opportunity Realty Investors, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this
report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant
as of, and for, the period presented in this report;

4. The registrant's other certifying officers(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control
over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures
to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being
prepared;

&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal controls over financial reporting, or caused such internal control over
financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented
in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered
by this report based on such evaluations; and

&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in the report any change in the registrant's internal control over financial reporting
that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case
of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal
control over financial reporting; and

5. The registrant's other certifying officers(s) and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's
board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control
over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize
and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant
role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Dated: March 12, 2026 | By: | /s/ ERIK L. JOHNSON |
|  |  | Erik L. Johnson |
|  |  | President and Chief Executive Officer |

---

## Exhibit 31.2

[Income Opportunity Realty Investors, Inc. 10-K](ior-10k_123125.htm)

**Exhibit 31.2**

**CERTIFICATION**

I, Alla Dzyuba, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Income Opportunity Realty Investors, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this
report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant
as of, and for, the period presented in this report;

4. The registrant's other certifying officers(s) and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control
over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures
to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being
prepared;

&nbsp;&nbsp;&nbsp;&nbsp;(b) Designed such internal controls over financial reporting, or caused such internal control over
financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented
in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered
by this report based on such evaluations; and

&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in the report any change in the registrant's internal control over financial reporting
that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case
of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal
control over financial reporting; and

5. The registrant's other certifying officers(s) and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's
board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control
over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize
and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant
role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Dated: March 12, 2026 | By: | /s/ ALLA DZYUBA |
|  |  | Alla Dzyuba |
|  |  | Senior Vice President and Chief Accounting Officer |

---

## Exhibit 32.1

[Income Opportunity Realty Investors, Inc. 10-K](ior-10k_123125.htm)

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906**

**OF THE SARBANES-OXLEY ACT OF 2002**

The undersigned officer of Income Opportunity Realty Investors, Inc., a Nevada corporation (the "Company") hereby certifies that:

&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company's Quarterly Report on Form 10-Q for the three months ended December 31,
2025 fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;(ii) The information contained in the Company's Quarterly Report on Form 10-Q for the three months
ended December 31, 2025 fairly presents in all material respects, the financial condition and results of operations of the
Company, at and for the period indicated.

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dated: March 12, 2026 | By: | /s/ ERIK L. JOHNSON |
|  |  | Erik L. Johnson |
|  |  | President and Chief Executive Officer |
|  |  | /s/ ALLA DZYUBA |
|  |  | Alla Dzyuba |
|  |  | Senior Vice President and Chief Accounting Officer |

---