During the 1Q2009 MONOPOLY 1, L.L.C. (M1) purchased its ninth property, increased revenue by 46% (1Q09 vs. 1Q08) and successfully managed its repairs to stay within budget. Also, during the quarter M1 raised $54,650 in capital investments and their share price increased to $13.00, a $.08 increase. Company’s assets surpass $2.5 million.
JOPLIN, Mo., April 8, 2009
MONOPOLY 1, L.L.C. (M1), a real estate investment company, today announced financial results for its first quarter ended March 31, 2009.
-Revenue increased 26% over 4Q08 to $50,014.
-Net loss YTD for 2009 is $24,778 after property depreciation.
-Capital raised since inception of the company is $709,120 vs. goal of $605,000.
-Total assets are $2,514,987 slightly behind the company’s goal of $2,750,000.
First quarter 2009 financial results
Revenue: M1’s first quarter revenue was $50,014 compared to $39,463 in the fourth quarter 2008, an increase of 26% exceeding the company's prior guidance of $48,375. For 2009, M1’s revenue goal is $193,500.
Net Operating Income: M1’s net operating income was $9,686 inline with our goal of $9,625. The increase in net operating income is due to a decrease in bad debt expense and management fees. Our management team has taken steps to reduce all operating expenses to include conducting as many repairs and maintenance duties in-house to limit contractor expenses. This action has resulted in additional hours our team has “contributed” to the company, but it has reduced our operating expenses. Our team will continue to focus on necessary repairs and renovations as well as keep an eye on our bottom line, ensuring our financial success both short-term and in the long-term.
Operating expenses: Operating expenses were inline with our budget, however due to our property purchase our general and administrative expenses were higher than normal during the 1Q. Also, during the 1Q we paid an annual insurance premium of $3,500 for 1505 Michigan and we experienced the majority of our professional fees due to expenses for accounting, tax preparation and tax return filing. With that said, overall our operating expenses were still only $59 over budget.
Net income: Taxable net loss was $24,779; however, in backing out property depreciation the company experienced a net cash flow of ($6,912). Again, our negative cash flow is due to the one-time insurance premium for 1505 Michigan and higher general and administrative expenses. These numbers will even out over the remaining of the year.
EBITA & Earnings per share: Earnings before interest, taxes and amortization were $27,685 or $0.46 per share.
Balance sheet: Cash, cash equivalents, and short-term investments as of March 31, 2009 were $92,056. With the purchase of our ninth property, M1 grew total assets to $2,514,987. The company’s total liabilities increased to $1,729,262—also due to the above acquisition. Share members equity increased $54,650 to $709,120. During the 1Q09, M1 issued 5,003 member shares. No shares were repurchased by the company in 2009.
Other developments during the 1st quarter
Acquisition:
M1 purchased 301 Highland Avenue, a 10-unit apartment building for $341,000. Each apartment consists of 1 bedroom/1 bath and rents for $325 per month. The building was appraised for $345,000.
Guidance for second quarter 2009: For the second quarter, ending June 30, 2009, total revenue is expected to be $52,000. We expect an increase in rental income as we achieve full occupancy at our new property. Operating expenses are expected to be $40,000 as we continue to execute our preventive maintenance plan. Net income and earnings per share for the first quarter are expected to be break even, assuming a weighted average share count of 66,000 shares.
About MONOPOLY 1, L.L.C.
MONOPOLY 1, 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 March 31, 2009, M1 owned a real estate portfolio of nine rental properties containing approximately 69 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. Holstine
President/CEO
630.649.1837
wholstine@aol.com
© 2006 MONOPOLY 1, L.L.C. All rights reserved. MONOPOLY I, L.L.C. is a registered trademark in the state of Missouri.
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