JOPLIN, Mo., October 8, 2008 MONOPOLY I, L.L.C. (M1), a real estate investment company, today announced financial results for its third quarter ended September 30, 2008.
Revenue increased 23% over 2Q08 to $50,528.
Taxable loss YTD for 2008 is $62,065 after property depreciation.
Capital raised since inception of the company is $617,486 vs. goal of $495,000.
Total assets are $2,170,513 in line with company’s goal.
Third quarter 2008 and 2008 financial results
Revenue:
M1’s third quarter revenue was $50,528 compared to $43,109 in the second quarter, an increase of 23%. For 2008, M1’s revenue is $125,594 which exceeds our pro-rata 2008 goal.
Net Operating Income:
During the 3Q of 2008, M1’s net operating loss was $9,465. With our latest purchase occurring on June 30, 2008 we undertook a substantial renovation project. Along with our continued focus on reinvesting in our properties we exceeded our quarterly budget for repairs. We will reduce our 4Q budget to make up for the over expenditure we experienced during the 3Q. We remain confident that our renovation plan will continue to increase the value of our properties and attract tenants. Our long-term focus is to continue to breakeven utilizing our free cash flow to improve our property portfolio.
Operating expenses:
Our management team has done an excellent job in managing our operating expenses as they relate to our annual budget. Out of 10 expense categories, we are under budget in six categories. Most notably we have only $166 in bad debt expense, we budgeted $6,525 for the year which reflects the national average. Our strategy will continue to reinvest cash flow and use investor dollars for new purchases. Although we took an aggressive renovation approach with our latest purchase, we remain loyal to our cash management model of not spending more than what we receive. Our management team will limit our repair expenses for 4Q.
Net income:
As of September 30, 2008 taxable net loss is $62,065. Our taxable net loss is a reflection of our break even operating budget and property depreciation, allowing us as share members to experience a tax deduction at the end of the year while increasing the value of our shares.
EBITA & Earnings per share: Earnings before interest, taxes and amortization were $36,651 or $.69 per share an increase of 53% over 2Q08.
Balance sheet:
Cash, cash equivalents, and short-term investments as of September 30, 2008 were $107,391 compared to $59,305 as of December 31, 2007. The increase is largely due to investor contributions. During 3Q2008, M1 grew total assets from $2,130,325 to $2,170,513 an increase of $40,188. The company’s long-term debt decreased $7,276 to $1,462,962 due to principal pay down on mortgages. Share members investments increased $49,684 to $617,486. As of September 30, 2008, M1 has issued 53,372 member shares. No shares have been repurchased by the company in 2008.
Other developments during the 3Q2008
Acquisition:
None
Guidance for fourth quarter 2008
For the fourth quarter, ending December 31, 2008, total revenue is expected to be $52,000. We expect an increase in rental income as we complete apartment renovations and achieve full occupancy in our latest purchase. Operating expenses are expected to be $52,000 as we continue to execute our preventive maintenance and renovation plan. Net income and earnings per share for the fourth quarter are expected to be breakeven, assuming a weighted average share count of 55,200 shares.
About MONOPOLY I, L.L.C.
MONOPOLY I, L.L.C. (M1), a limited liability company, is engaged in the acquisition, ownership, management, and redevelopment of rental properties. The company rents and leases its rental units to a diverse base of residents. As of September 30, 2008, M1 owned a real estate portfolio of 8 rental properties containing approximately 59 apartment units located in Joplin, Missouri. M1 was founded in 2006 and is headquartered in Joplin, Missouri.
For more information about M1, please visit our blog at:
www. monopoly1llc.blogspot.com
Editorial Contact:William R. HolstinePresident/CEO630.649.1837
wholstine@monopoly1llc.com
© 2006 MONOPOLY I, L.L.C. All rights reserved. MONOPOLY I, L.L.C. is a registered trademark in the state of Missouri.
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