JOPLIN, Mo., January 15, 2009
MONOPOLY I, L.L.C. (M1), a real estate investment company, today announced financial results for its fourth quarter ended December 31, 2008.
Revenue increased 38% over 2007 to $165,058.
Reinvested in property renovations of $61,200
Total assets increased $754,483, compared to total liabilities increasing $479,849.
Capital raised since inception of the company is $644,470 vs. goal of $550,000.
Our share price ended the year at 12.92, a 2.3% increase for 2008.
Fourth quarter 2008 and 2008 financial results
Revenue: M1’s 2008 revenue was $165,058 compared to $119,182 in 2007, an increase of 38%.
Net Operating Income: During the 4Q of 2008, M1’s net operating loss was $13,286. 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 annual budget for repairs. 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. M1 operated well within the 2008 budget guidelines in each area except for repairs/maintenance. 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. This is evident as our current liabilities (other than security deposits) are only $127. Our management team will operate to our repairs/maintenance budget for 2009.
Net income: As of December 31, 2008 taxable net loss is $90,600. Our taxable net loss is a reflection of our break even operating budget, aggressive property renovation plan, 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 $51,666 or $.93 per share.
Balance sheet: Cash, cash equivalents, and short-term investments as of December 31, 2008 were $108,489 compared to $59,305 as of December 31, 2007. The increase is largely due to investor contributions. During 2008, M1 grew total assets from $1,424,532 to $2,179,016 an increase of $754,483. The company’s long-term debt increased $495,550 to $1,462,962 due to our new loan on 1505 Michigan. Our total debt ratio is 74%, we will continue to manage our ratio between 70-75%. Share members investments increased $259,920 to $644,470. As of December 31, 2008, M1 has issued 55,446 member shares. No shares have been repurchased by the company in 2008.
Other developments during the 2008
Acquisition:
1505 Michigan Avenue, Joplin, MO. A 20-unit brick apartment building. Each unit consists of 2 bed-room apartments. The cost of the property was $650,000 with an annual gross income of $96,000 resulting in a GRM of 6.77, well below the market average of 8.0.
Guidance for 2009: For 2009, total revenue is expected to be $193,500. 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 $155,000 as we continue to execute our preventive maintenance and renovation plan. Net income and earnings per share for 2009 are expected to be breakeven, assuming a weighted average share count of 63,400 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 December 31, 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/CEO
630.649.1837
wholstine@aol.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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