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 UNITED
STATES

 SECURITIES
AND EXCHANGE COMMISSION

 WASHINGTON,
D.C. 20549

 FORM

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

 For
the fiscal year ended December 31, 2023

 OR

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

 Commission
File Number 001-14784

Opportunity Realty Investors, Inc.

 (Exact
name of registrant as specified in its charter)

 Nevada

 75-2615944

 (State
or other jurisdiction of

 Incorporation
or organization)

 (IRS
 Employer Identification Number)

 1603
 LBJ Freeway,

 Suite

 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

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

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

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

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. Yes No

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 No

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

 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.

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.

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).

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 $ 6.6 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 19, 2024, there were 4,110,714 shares of common stock outstanding.

 Documents
Incorporated By Reference:

 None

TO

 ANNUAL
REPORT ON FORM 10-K

 Page

 Item
 1.

 Business

 Item 1A.

 Risk Factors

 Item
 1B.

 Unresolved Staff Comments

 Item
 1C.

 Cybersecurity

 Item
 2.

 Properties

 Item
 3.

 Legal Proceedings

 Item
 4.

 Mine Safety Disclosures

 Item
 5.

 Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities

 Item
 6.

 Selected Financial Data

 Item
 7.

 Management's Discussion and Analysis of Financial Condition and Results of Operations

 Item
 7A.

 Quantitative and Qualitative Disclosures About Market Risk

 Item
 8.

 Consolidated Financial Statements and Supplementary Data

 Item
 9.

 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 Item 9A.

 Controls and Procedures

 Item
 9B.

 Other Information

 Item
 10.

 Directors, Executive Officers and Corporate Governance

 Item
 11.

 Executive Compensation

 Item
 12.

 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 Item
 13.

 Certain Relationships and Related Transactions, and Director Independence

 Item
 14.

 Principal Accounting Fees and Services

 Item
 15.

 Exhibits, Financial Statement Schedules

 Item
 16.

 Form 10-K Summary

 Signatures

 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

 ITEM 1.
 BUSINESS

 General

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 NYSE under the symbol "TCI", owns 82.3% of
our stock and with its affiliates owns approximately 88.8% of our common stock. 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.

 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. They also serve 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
also 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 an internet site 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.

 ITEM 1A.
 RISK
 FACTORS

 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 like the pandemic impact the coronavirus.

 Considerable
uncertainty still surrounds the recent Covid-19 pandemic, including its conclusion, the availability of and effectiveness of vaccines,
the potential short-term and long term effects, including but not limited to shifts in consumer housing demand based on geography, affordability,
housing type (e.g., multi-family vs. single family) and unit type (e.g., office studio vs. multi-bedroom), mainly resulting from the
paradigm shift of work culture, the decentralization of corporate headquarters and the success of "work from home" models.
Moreover, local, state and national measures taken to limit the spread of the recent pandemic have already resulted in significant economic
impacts and mortality rates, the duration and scope of which cannot currently be predicted. The extent to which our financial condition
or operating results will be effected in the future by any future pandemic will largely depend on future demand and developments, which
are highly uncertain and cannot be accurately predicted.

 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 to produce sufficient
cash flow to service these notes. Changes in general or local economic conditions in the southwestern United States and, in particular,
the Dallas, Texas area can have an adverse effect on the payment of these notes.

 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. Accordingly, if interest rates increase, so will our interest costs, which
would adversely affect our cash flow and our ability to pay principal and interest on our debt and our ability to make distributions
to our stockholders. Further, rising interest rates could limit our ability to refinance any existing debt when it matures.

 All
of our assets are receivables from a 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.

 ITEM
 1B
 UNRESOLVED
 STAFF COMMENTS

 None.

 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.

 ITEM 2.
 PROPERTIES

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

 ITEM
 3.
 LEGAL
 PROCEEDINGS

 None.

 ITEM
 4.
 MINE
 SAFETY DISCLOSURES

 Not
applicable.

 PART
II

 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:

 2023

 2022

 High

 Low

 High

 Low

 First Quarter

 $
 12.40

 $
 10.58

 $
 16.99

 $
 10.05

 Second Quarter

 $
 11.68

 $
 10.75

 $
 15.06

 $
 10.59

 Third Quarter

 $
 13.39

 $
 11.09

 $
 13.99

 $
 10.11

 Fourth Quarter

 $
 13.99

 $
 11.09

 $
 13.50

 $
 11.35

 On
 March 19, 2024, the closing market price of our commo n
stock on the NYSE American Exchange was $16.50 per share, and was held by 342 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 2023, 2022 or 2021.
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.

 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, 2023, we repurchased a total of 57,700 shares in three block transactions
at $15.75 per share. As of December 31, 2023, there are 557,539 shares remaining that can be repurchased.

 ITEM
 6.
 SELECTED
 FINANCIAL DATA

 Optional
and not included.

 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, below,
Notes and Interest Receivable from Related Parties, for details on our notes receivable.)

 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.

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,
2023, 2022, and 2021 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 a rate of prime plus
1.0%. We have receivables from related parties which also provide interest income.

 Comparison
of the year ended December 31, 2023 to the year ended December 31, 2022:

 Our
$3.1 million increase in net income during the year ended December 31,
2023 is primarily attributed to the following:

 The
 $3.5 million increase in interest income was primarily due to an increase in interest rates
 in 2022 and 2023.

 The
 $0.6 million increase in income tax provision was primarily due to an increase in interest
 income.

 Comparison
of the year ended December 31, 2022 to the year ended December 31, 2021:

 See
Item 7 of Part II in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on March 23, 2023
for a discussion of our results of operations for the year ended December 31, 2022.

 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, 2023, along with cash that will be generated in 2024 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):

 Year Ended December 31,

 2023

 2022

 Incr /(Decr)

 Net cash provided by operating activities

 $

 $

 $

 Net cash provided by investing activities

 $
 —

 $
 —

 $
 —

 Net cash used in financing activities

 $
 (908
)

 $
 —

 $
 (908
)

 The
increase 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.

 ITEM 8.
 FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

TO FINANCIAL STATEMENTS

 Page

 Financial
 Statements

 Report of Independent Registered Public Accounting Firm for the Year Ended December 31, 2023

 Report of Independent Registered Public Accounting Firm for the Years Ended December 31, 2022 and 2021

 Consolidated Balance Sheets at December 31, 2023 and 2022

 Consolidated Statements of Operations for the Years Ended December 31, 2023, 2022 and 2021

 Consolidated Statements of Shareholders' Equity for the Years Ended December 31, 2023, 2022 and 2021

 Consolidated Statements of Cash Flows for the Years Ended December 31, 2023, 2022 and 2021

 Notes to Consolidated Financial Statements

 Financial
 Statement Schedules

 Schedule IV—Mortgage Loan Receivables on Real Estate

 REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 To
the Board of Directors of and

 Stockholders
of Income Opportunity Realty Investors, Inc.

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,
2023, and the related consolidated statements of operations, comprehensive income, stockholders' equity, and cash flows for the
year ended December 31, 2023, 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
Investors, Inc. as of December 31, 2023 and the results of its operations and its cash flows for the year ended December 31,
2023 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 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 21,
2024

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

 REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 To
the Board of Directors of and

 Stockholders
of Income Opportunity Realty Investors, Inc.

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,
2022, and the related consolidated statements of operations, comprehensive income, stockholders' equity, and cash flows for each
of the years in the two-year period ended December 31, 2022, 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 Investors, Inc. as of December 31, 2022 and the results of its operations and its cash
flows for each of the two years ended December 31, 2022 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 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 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 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 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 financial statements as a whole.

 Swalm
& Associates, P.C.

 Richardson,
Texas

 March
23, 2023

 We
served as the Company's auditor from 2004 through 2023.

 INCOME
OPPORTUNITY REALTY INVESTORS, INC.

BALANCE SHEETS

 (dollars
in thousands, except par value amounts)

 December 31,

 2023

 2022

 Assets

 Current assets

 Cash and cash equivalents

 $

 $

 Interest receivable from related parties

 Receivable from related parties

 106,541

 100,134

 Total current assets

 106,905

 100,816

 Non-current assets

 Notes receivable from related parties

 Total assets

 $
 118,078

 $
 111,989

 Liabilities and Equity

 Liabilities:

 Accounts payable

 $
 —

 $

 Shareholders' equity

 Common stock, $ 0.01 par value, 10,000,000 shares authorized; 4,173,675 shares issued; and 4,110,714 and 4,168,414 outstanding at December 31, 2023 and 2022, respectively

 Treasury stock at cost, 62,961 shares and 5,261 shares at December 31, 2023 and 2022, respectively

 ( 947
)

 ( 39
)

 Additional paid-in capital

 Retained earnings

 57,028

 50,027

 Total shareholders' equity

 118,078

 111,985

 Total liabilities and equity

 $
 118,078

 $
 111,989

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

 INCOME
OPPORTUNITY REALTY INVESTORS, INC.

STATEMENTS OF OPERATIONS

 (Dollars
in thousands, except per share amounts)

 For the Years Ended December 31,

 2023

 2022

 2021

 Revenues:

 Other income

 $
 —

 $
 —

 $
 —

 Expenses:

 General and administrative (including $ 254, $ 268 and $ 282 for 2023, 2022 and 2021, respectively, from related parties)

 Advisory fee to related party

 1,175

 1,108

 Total operating expenses

 1,460

 1,626

 1,578

 Net operating loss

 ( 1,460
)

 ( 1,626
)

 ( 1,578
)

 Interest income from related parties

 10,070

 6,602

 4,953

 Other income

 —

 —

 1,179

 Income tax provision

 ( 1,609
)

 ( 1,045
)

 ( 956
)

 $
 7,001

 $
 3,931

 $
 3,598

 Earnings per share - basic and diluted

 $
 1.68

 $
 0.94

 $
 0.86

 Weighted average common shares used in computing earnings per share

 4,162,516

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

 INCOME
OPPORTUNITY REALTY INVESTORS, INC.

STATEMENT OF SHAREHOLDERS' EQUITY

 (dollars
in thousands, except share amounts)

 Shares Outstanding

 Common Stock

 Treasury
 Stock

 Paid-in
 Capital

 Retained
 Earnings

 Total Shareholders' Equity

 Balance, January 1, 2021

 $

 $
 ( 39
)

 $

 $
 42,498

 $
 104,456

 —

 —

 —

 —

 3,598

 3,598

 Balance, December 31, 2021

 ( 39
)

 46,096

 108,054

 Net loss

 —

 —

 —

 —

 3,931

 3,931

 Balance, December 31, 2022

 ( 39
)

 50,027

 111,985

 —

 —

 —

 —

 7,001

 7,001

 Repurchase of common shares

 ( 57,700
)

 —

 ( 908
)

 —

 —

 ( 908
)

 Balance, December 31, 2023

 4,110,714

 $

 $
 ( 947
)

 $

 $
 57,028

 $
 118,078

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

 INCOME
OPPORTUNITY REALTY INVESTORS, INC.

STATEMENTS OF CASH FLOWS

 (Dollars
in thousands)

 2023

 2022

 2021

 Cash Flow From Operating Activities:

 $
 7,001

 $
 3,931

 $
 3,598

 Adjustments to reconcile net income to net cash provided by (used in) by operating activities:

 Recovery of doubtful accounts

 —

 —

 ( 1,017
)

 Changes in assets and liabilities, net of dispositions:

 Accrued interest on related party notes receivable

 ( 85
)

 Related party receivables

 ( 6,407
)

 ( 3,834
)

 ( 5,774
)

 Accounts payable

 ( 4
)

 ( 8
)

 —

 Net cash provided by (used in) operating activities

 ( 2,980
)

 Cash Flow From Investing Activities:

 Collection of notes receivable

 —

 —

 2,970

 Net cash provided by investing activities

 —

 —

 2,970

 Cash Flow From Financing Activities:

 Repurchase of common shares

 ( 908
)

 —

 —

 Net cash used in financing activities

 ( 908
)

 —

 —

 Net increase (decrease) in cash and cash equivalents

 ( 10
)

 Cash and cash equivalents, beginning of year

 Cash and cash equivalents, end of year

 $

 $

 $

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

 1.
 Organization

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", owns 82.3 % of
our stock and with its affiliates owns approximately 88.8 % of our common stock. 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.

 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 related parties (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.

 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.

 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.

parties

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, 2023 and 2022, the Company did not maintain balances in excess
of the insured amount.

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, 2023, 2022 and 2021.

 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

 At
December 31, 2022, we had four notes receivable issued by Unified Housing Foundation, Inc. ("UHF") with an aggregate
balance of $ 11,173. 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 amendments of the four UHF notes. Under the provisions of the amendment, the fours 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.

 The
borrower is determined to be a related party due to our significant investment in the performance of the collateral secured by the notes
receivable.

 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.

is a wholly owned by an affiliate of the MRHI, which owns approximately 90.8 % of ARL, which owes approximately 78.4 % of TCI, which owns
 82.3 % of the Company.

 Advisory
fees paid to Pillar were $ 970, $ 1,175 and $ 1,108 for the years ended December 31, 2023, 2022 and 2021, respectively.

 Notes
receivable are amounts held by UHF (See Note 3 – Notes Receivable). UHF is determined to be a related party due to our significant
investment in the performance of the collateral secured by the notes receivable. Interest income on these notes was $ 547, $ 1,003 and
$ 1,371 for the years ended December 31, 2023, 2022 and 2021, respectively.

party receivables were $ 106,541 and
 $ 100,134 at December 31, 2023 and 2022,
respectively; which represents amounts outstanding from TCI for loans and advances, net of unreimbursed fees and bear interest at prime
plus one percent. Interest income on these receivables were $ 9,523, $ 5,599 and
 $ 3,582 for the years ended December 31, 2023, 2022 and 2021, respectively.

 5.
 Stockholders Equity

 Our
decision to declare dividends on common stock are 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 2023, 2022, or 2021. 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. During the year ended December 31, 2023, we repurchased a total of 57,700 shares in three block transactions.
As of December 31, 2023, there are 557,539 shares remaining that can be repurchased.

 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,

 2023

 2022

 2021

 Current:

 Federal

 $
 1,609

 $
 1,045

 $

 State

 —

 —

 —

 Total tax

 $
 1,609

 $
 1,045

 $

 The
reconciliation between our effective tax rate on income from operations and the statutory rate is as follows:

 Years Ended December 31,

 2023

 2022

 2021

 Income tax expense at federal statutory rate

 $
 1,609

 $
 1,045

 $

 State and local income taxes net of federal tax expense

 —

 —

 —

 Permanent tax differences

 —

 —

 —

 Temporary tax differences

 —

 —

 —

 Reported tax expense

 $
 1,609

 $
 1,045

 $

 Effective tax rate

 21.0
 %

 21.0
 %

 4.6
 %

 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 2023 and 2022. Quarterly results presented may differ
from those previously reported in our Form 10-Q due to the reclassification of the operations:

 2023 Quarter Ended

 March 31,

 June 30,

 September 30,

 December 31

 Net operating loss

 $
 ( 537
)

 $
 ( 456
)

 $
 ( 437
)

 $
 ( 30
)

 1,050

 1,834

 1,643

 2,474

 Net income per share - basic and diluted

 $
 0.25

 $
 0.44

 $
 0.39

 $
 0.60

 2022 Quarter Ended

 March 31,

 June 30,

 September 30,

 December 31

 Net operating loss

 $
 ( 460
)

 $
 ( 341
)

 $
 ( 397
)

 $
 ( 428
)

 1,188

 1,269

 Net income per share - basic and diluted

 $
 0.15

 $
 0.20

 $
 0.29

 $
 0.30

 9.
 Subsequent Events

 The
date to which events occurring after December 31, 2023, the date of the most recent balance sheet, have been evaluated for possible
adjustments to the financial statements or disclosure is March 21, 2024, 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.

 (Dollars in thousands, except per share amounts)

 SCHEDULE
IV - MORTGAGE LOANS

 SCHEDULE IV Mortgage Loans Receivable

 December 31,
2023

 Description

 Interest Rate

 Maturity Date

 Periodic Payment
 Terms

 Prior Liens

 Face Amount

 Carrying Value

 UHF - Timbers at The Park

 5.38
 %

 12/31/2032

 Payments from excess property cash flows

 $
 13,156

 $

 $

 INCOME OPPORTUNITY REALTY INVESTORS, INC.
 (Dollars in thousands, except per share amounts)

 SCHEDULE
IV - MORTGAGE LOANS

 As
of December 31,

 SCHEDULE IV Mortgage Loans Receivable Roll Forward

 2023

 2022

 2021

 Balance at January 1,

 $

 $

 $
 13,126

 Additions

 —

 —

 —

 Deductions

 —

 —

 ( 1,953
)

 Balance at December 31,

 $

 $

 $

 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 and 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 and Financial Officer, as appropriate to allow timely decisions
regarding required disclosure. Based on this evaluation, our Principal Executive and 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

 Our
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, 2023. 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, 2023.

 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, 2023 that have materially
affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 Item
 9B.
 OTHER
 INFORMATION

 Not
applicable.

 PART
III

 ITEM
 10.
 DIRECTORS,
 EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

 Directors

 The
affairs of the Company are managed by our Board of 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 internet 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:

Opportunity Realty Investors, Inc.

 Attn:
Investor Relations

 1603
LBJ Freeway, Suite 800

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 73, 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.

 FERNANDO
V. LARA CELIS, age 58, Director, Independent, since October
2023

 Mr.
Lara is an entrepreneur and the General Manager and President of FYA Project, LLC, a Schlotzsky's Deli Franchisee (Restaurant and
Fast Food) which owns and operates seven 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. Mr. Lara joined the board on October 11, 2023 to replace Raymond D. Roberts, Sr., who
had resigned from the board.

 ROBERT
A. JAKUSZEWSKI, age 61, Director, Independent, since March 2004

 Mr.
Jakuszewski has served as a Territory Manager for Artesa Labs since April 2015. He was 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.

 TED
R. MUNSELLE, age 68, 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 six meetings during 2023. 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:

 Audit
 Committee

 Governance
and Nominating

 Committee

 Compensation
 Committee

 Henry
 A. Butler

 Robert
 A. Jakuszewski

 X

 Chair

 X

 Ted
 R. Munselle

 Chair

 X

 X

 Fernando
 V. Lara Celis

 X

 X

 Chair

 Audit
Committee. 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 (www.transconrealty-invest.com). 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 2023.

 Governance
and Nominating Committee. 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 was adopted on March 17,
2004 and is available on our Investor Relations Website. The Governance and Nominating Committee met two times during 2023.

 Compensation
Committee. 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 2023.

 Presiding

 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 13, 2023 for all stockholders of record dated November 8, 2023,
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 2024.

 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 2023 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, Munselle, Jakuszewski and Roberts
are each independent of the Company and its Management under the standards set forth in the Corporate Governance Guidelines.

Officers

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, 56

 Mr.
Johnson has served as Executive Vice President and Chief Financial Officer of the Company since December 2021. He has also served Pillar
as Chief Financial Officer since June 2020 and as Interim President since April 2023. In addition, he has served as Executive Vice President
and Chief Financial Officer of ARL and TCI since August 2020. Prior to joining the Company, 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, 76

 Mr.
Corna has served as Executive Vice President, General Counsel/Tax Counsel and Secretary of the Company, ARL and IOR 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.

 In
addition to the foregoing executive officers, we have several vice presidents and assistant secretaries that are not listed herein. Since
the April 14, 2023 resignation of Bradley J. Muth, age 67, the offices of President and Chief Executive Officer has been vacant.
Mr. Johnson currently serves as the principal executive officer of the Company. At the time of his resignation, Mr. Muth advised that
his resignation was not the result of any disagreement with the Company, its management, the Board of Directors, or any committee of
the Board with respect to procedure, policies or operations.

 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, 2023. 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.

 The
Advisor

has been our Advisor and Cash Manager since April 30, 2011. 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, 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 TCI and IOR. 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.

is a Nevada corporation, the sole stockholder of which is Realty Advisors, LLC, a Nevada limited liability company, the sole member of
which is RAI, a Nevada corporation, the sole shareholder of which is May Realty Holdings, Inc. ("MRHI"), he sole shareholder
of which is a trust known as the May Trust. The beneficiaries of the May Trust are the children 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 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. Pillar is a company of which Messrs. Johnson
and Corna serve as executive officers.

 The
Advisory Agreement provides for Pillar to be responsible for our day-to-day operations and to receive, as compensation for basic management
and advisory services, a gross asset 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).

 In
addition to base compensation, Pillar receives the following forms of additional compensation:

 (1)
 an
 annual net income fee equal to 7.5% of our net income as an incentive for successful investment
 and management of our assets;

 (2)
 an
 annual incentive sales fee to encourage periodic sales of appreciated real property at optimum
 value equal to 10.0% of the amount, if any, by which the aggregate sales consideration for
 all real estate sold by us during such fiscal year exceeds the sum of:

 (a)
 the
 cost of each such property as originally recorded in our books for tax purposes (without
 deduction for depreciation, amortization or reserve for losses);

 (b)
 capital
 improvements made to such assets during the period owned; and

 (c)
 all
 closing costs (including real estate commissions) incurred in the sale of such real estate;
 provided however, no incentive fee shall be paid unless (a) such real estate sold in
 such fiscal year, in the aggregate, has produced an 8.0% simple annual return on the net
 investment including capital improvements, calculated over the holding period before depreciation
 and inclusive of operating income and sales consideration, and (b) the aggregate net
 operating income from all real estate owned for each of the prior and current fiscal years
 shall be at least 5.0% higher in the current fiscal year than in the prior fiscal year;

 (3)
 an
 acquisition commission, from an unaffiliated party of any existing mortgage or loan, for
 supervising the acquisition, purchase or long-term lease of real estate equal to the lesser
 of:

 (a)
 up
 to 1.0% of the cost of acquisition, inclusive of commissions, if any, paid to non-affiliated
 brokers; or

 (b)
 the
 compensation customarily charged in arm's-length transactions by others rendering similar
 property acquisition services as an ongoing public activity in the same geographical location
 and for comparable property, provided that the aggregate purchase price of each property
 (including acquisition fees and real estate brokerage commissions) may not exceed such property's
 appraised value at acquisition;

 (4)
 reimbursement
 of certain expenses incurred by the advisor in the performance of advisory services.

 The
Advisory Agreement also provides that Pillar receive the following forms of compensation:

 (1)
 a
 mortgage or loan acquisition fee with respect to the acquisition or purchase from an unaffiliated
 party of any existing mortgage loan by us equal to the lesser of:

 (a)
 1.0%
 of the amount of the mortgage or loan purchased; or

 (b)
 a
 brokerage or commitment fee which is reasonable and fair under the circumstances. Such fee
 will not be paid in connection with the origination or funding of any mortgage loan by us;
 and

 (2)
 a
 mortgage brokerage and equity refinancing fee for obtaining loans or refinancing on properties
 equal to the lesser of:

 (a)
 1.0%
 of the amount of the loan or the amount refinanced; or

 (b)
 a
 brokerage or refinancing fee which is reasonable and fair under the circumstances; provided,
 however, that no such fee shall be paid on loans from Pillar, or a related party of Pillar,
 without the approval of our Board of Directors. No fee shall be paid on loan extensions.

 Under
the Advisory Agreement, all or a portion of the annual advisory fee must be refunded by the Advisor if our operating expenses (as defined
in the Advisory Agreement) exceed certain limits specified in the Advisory Agreement based on our book value, net asset value and net
income during the fiscal year.

 The
Advisory Agreement requires Pillar to pay us, one-half of any compensation received from third parties with respect to the origination,
placement or brokerage of any loan made by us; provided, however, that the compensation retained by Pillar, or any affiliate of Pillar,
shall not exceed the lesser of (1) 2.0% of the amount of the loan commitment or (2) a loan brokerage and commitment fee which
is reasonable and fair under the circumstances.

 The
Advisory Agreement further provides that Pillar shall bear the cost of certain expenses of its employees, excluding fees paid to our
Directors; rent and other office expenses of both Pillar and us (unless we maintain office space separate from that of Pillar); costs
not directly identifiable to our assets, liabilities, operations, business or financial affairs; and miscellaneous administrative expenses
relating to the performance by Pillar of its duties under the Advisory Agreement.

 If
and to the extent that we request Pillar, or any director, officer, partner, or employee of Pillar, to render services for us other than
those required to be rendered by the Advisory Agreement, Pillar separately would be compensated for such additional services on terms
to be agreed upon between such party and us from time to time.

 We
have a Cash Management Agreement with Pillar that provides that all of our funds are 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 Wall Street Journal
prime rate plus 1.0% per annum, as set quarterly on the first day of each calendar quarter. Borrowings 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
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".

may assign the Advisory Agreement only with our prior consent.

 The
principal executive officers of Pillar are set forth below:

 Name

 Officers

 Erik
 L. Johnson

 Interim
 President

 Louis
 J. Corna

 Vice President and Secretary

 Gina
 H. Kay

 Vice President and Chief Accounting Officer

 Bradley
 J. Kyles

 Vice President

 ITEM 11.
 EXECUTIVE
 COMPENSATION

 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. Pillar does not allocate the cash compensation of its officers among
the various entities for which it serves as advisor. Refer to 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, e ach 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, 2023, $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, $1,250; Ted R. Munselle, $5,500
and Raymond D. Roberts, Sr., $3,750.

 ITEM 12.
 SECURITY
 OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

 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 19, 2024.

 Amount and

 Nature
of

 Beneficial

 Ownership*

 Approximate Percent

 of
Class**

 Transcontinental
 Realty Investors, Inc.

 3,381,570

 82.3 %

 1603
 LBJ Freeway, Suite 800

 Texas 75234

 Realty Advisors, Inc.

 269,299

 6.6 %

 1603 LBJ Freeway, Suite 800

 Texas 75234

 *
 "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 4,110,714 shares of Common stock outstanding at March 19, 2024.

 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 19, 2024.

 Name
 of Beneficial Owner

 Amount and

 Nature
of

 Beneficial

 Ownership*

 Approximate

 Percent
of Class**

 Henry
 A. Butler

 —

 — %

 Fernando
 V. Lara Celis

 —

 — %

 Louis
 J. Corna

 —

 — %

 Robert
 A. Jakuszewski

 —

 — %

 Erik
 L. Johnson

 —

 — %

 Ted
 R. Munselle

 —

 — %

 All
 Directors and Executive Officers as a group (7 individuals)

 —

 — %

 *
 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 4,110,714 shares of Common Stock outstanding at March 19, 2024.

 ITEM 13.
 CERTAIN
 RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

 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

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.

is owned by Realty Advisors, LLC, which is owned by RAI, which is owned by MRHI, which is owned by the May Trust.

 All
of our direct ors 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.

 At
December 31, 2023, TCI owned approximately 82.3% of the outstanding common shares of IOR.

 We
are part of a tax sharing and compensating agreement with respect to federal income taxes among ARL, TCI and IOR and their subsidiaries.
In accordance with the agreement, o ur 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%.

 We
have a development agreement with Unified Housing Foundation, Inc. "UHF" a non-profit corporation that provides management
services for the development of residential apartment projects in the future. We have also invested in surplus cash notes receivables
from UHF and have sold several residential apartment properties to UHF in prior years. Due to this ongoing relationship and the significant
investment in the performance of the collateral secured under the notes receivable, UHF has been determined to be a related party.

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
2023, we paid Pillar advisory fees of $1.0 million and cost reimbursements of $0.3 million.

 As
of December 31, 2023, we had notes and interest receivables of $11.2 million and $0.3 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 $0.5 million and received $0.0 million principal payments from these related party notes receivables.

 From
time to time, we have made advances and/or borrowing to/from other related parties, which generally have not had specific repayment terms,
did not bear interest, are unsecured, and have been reflected our financial statements as other assets or other liabilities. We charge
interest on the outstanding balance of funds advanced from us. The interest rate during the three years ended December 31, 2023,
set at the beginning of each quarter, was the prime rate plus 1.0% on the average daily cash balances advanced. At December 31,
2023, we had a receivable from related parties of $106.5 million.

Independence

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

 ITEM 14.
 PRINCIPAL
 ACCOUNTING FEES AND SERVICES

 On
January 2, 2024 of Swalm & Associates P.C. 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. to audit our consolidated financial
statements for the year ending December 31, 2023.

 For
the years ended December 31, 2023 and 2022, we were billed by Swalm & Associates, P.C. for services in the following categories:

 Audit
Fees. Fees for audit services were $47,750 and $37,750 for the years ended December 31,
2023 and 2022, 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, 2023 and 2022. 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, 2023 and 2022, 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, 2023 and 2022. 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, 2023 and 2022 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

 ITEM
 15.
 EXHIBITS,
 FINANCIAL STATEMENT SCHEDULES

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

 a.
 Financial
 Statements

 Reports
of Independent Registered Public Accounting Firms

 Consolidated
Balance Sheets as of December 31, 2023 and 2022

 Consolidated
Statements of Operations for the Years Ended December 31, 2023, 2022, and 2021

 Consolidated
Statements of Stockholders' Equity for the Years Ended December 31, 2023, 2022, and 2021

 Consolidated
Statements of Cash Flows for the Years Ended December 31, 2023, 2022, and 2021

 Notes
to Financial Statements

 b.
 Financial
 Statement Schedules

 Schedule
IV—Mortgage Loan Receivables on Real Estate

 c.
 Exhibits

 The
following documents are filed as Exhibits to this Report:

 3.1

 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).

 3.2

 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).

 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).

 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).

 3.5

 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).

 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

 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).

 4.2

 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).

 4.3

 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).

 4.4

 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).

 10.1

 Advisory
 Agreement between Income Opportunity Realty Investors, Inc. and Pillar Income Asset Management, LLC, dated April 30, 2011 (incorporated
 by reference to Exhibit 10.0 to the Registrant's Current Report on Form 8-K, dated April 30, 2011).

 10.2

 Second
 Amendment to Modification of Stipulation of Settlement dated October 17, 2001 (incorporated by reference to Exhibit 10.1 to
 the Registrant's Registration Statement on Form S-4, dated February 24, 2002).

 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.

 26.1*

 Purchases
 of Equity Securities by the Issuer and Affiliated Purchases

 31.1 *

 Rule
 13a-14(a) Certification by Principal Executive and Financial Officer.

 32.1 *

 Certification
 Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

 101.INS

 Instance Document

 101.SCH

 Taxonomy Extension Schema Document

 101.CAL

 Taxonomy Extension Calculation Linkbase Document

 101.DEF

 Taxonomy Extension Definition Linkbase Document

 101.LAB

 Taxonomy Extension Label Linkbase Document

 101.PRE

 Taxonomy Extension Presentation Linkbase Document

 *
Filed herewith.

 ITEM
 16.
 FORM
 10-K SUMMARY

 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.

 Opportunity Realty Investors, Inc.

 Dated:
 March 21, 2024

 By:

 /s/
 ERIK L. JOHNSON

 Erik
 L. Johnson

 Vice President and Chief Financial Officer

 (Principal
 Executive and Financial 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.

 Signature

 Title

 Date

 /s/
 HENRY A. BUTLER

 Chairman
 of the Board and Director

 March

 Henry
 A. Butler

 /s/
 ROBERT A. JAKUSZEWSKI

 March

 Robert
 A. Jakuszewski

 /s/
 FERNANDO V. LARA CELIS

 March

 Fernando
 V. Lara Celis

 /s/
 TED R. MUNSELLE

 March

 Ted
 R. Munselle

 /s/
 ERIK L. JOHNSON

 Vice President and Chief Financial Officer

 March

 Erik
 L. Johnson

 (Principal
 Executive and Financial Officer)