During the 2Q2009 MONOPOLY I, L.L.C. (M1) focused on debt reduction and balance sheet strength. M1 reduced total liabilities by $52,467 and increased total assets by $33,062. Also, during the quarter M1 issued 6,815 shares raising $88,595 in capital. The most significant corporate actions were made to the company’s long-term growth and capital investment plans.
JOPLIN, Mo., July 6, 2009
MONOPOLY I, L.L.C. (M1), a real estate investment company, today announced financial results for its second quarter ended June 30, 2009.
-2Q09 revenue increased 3.3% over 2Q08
-First half 2009 Revenue increased 25.6% over the same period 2008.
-Net loss YTD for 2009 is $58,388 after property depreciation.
-Capital raised since inception of the company is $797,720.
-Total assets are $2,548,049 slightly behind the “old” company’s goal of $3,000,000.
Second quarter 2009 financial results
Revenue: M1’s second quarter revenue was $41,856 compared to $50,014 in the first quarter 2009, a decrease of 7.3% and well below the company's prior guidance of $52,000. M1’s revenue decrease is due to the larger than normal turnover of tenants during the quarter as tenants lost their jobs. We have been able to re-lease the majority of the apartments; however we had a significant decrease in rental income (compared to April) during the month of May ($4,322) and June ($3,800) due to the transition.
Net Operating Income: M1’s net operating income was $6,296 for the first half of 2009, below our goal of $19,250. Again the decrease in net operating income is due to the reduction of rental income. Our management team has continued to take steps to reduce all operating expenses in an effort to keep a balanced budget. We expect this trend to occur until the economy recovers, therefore our team will continue to focus on necessary repairs and set aside our renovations plans for the short-term. We understand this will slow down our long-term renovation plans, but we believe this is a prudent decision.
Operating expenses: Operating expenses were slightly higher than our budget; however our repair/maintenance expense is on target. With the purchase of 301 Highland during the 1Q our depreciation expense, insurance expenses and real estate property taxes are higher than initially budgeted.
Net income: Taxable net loss was $58,388; however, in backing out property depreciation the company experienced a net cash flow of ($22,212). Again, our negative cash flow is due to the acquisition of 301 Highland and the reduction of rental income experienced during this quarter. We expect that our net income will be below our initial budget for the remainder of the year.
EBITA & Earnings per share: Earnings before interest, taxes and amortization were $47,104 or $0.70 per share.
Balance sheet: Cash, cash equivalents, and short-term investments as of June 30, 2009 were $115,497 an increase of 25% over 1Q09. M1 grew total assets to $2,548,049. The company’s total liabilities decreased $52,467 to $1,676,806 or 3%—as the company focuses on using investor capital to reduce debt and strengthen our balance sheet. Share members equity increased $85,529 to $871,243. During the 1Q09, M1 issued 6,815 member shares. No shares were repurchased by the company in 2009.
Other developments during the 2nd quarter
Acquisition:
None
Corporate:
The managing share members presented three recommendations to the share members of MONOPOLY 1, LLC for vote during 2Q09. The following three recommendations were approved:
1. MONOPOLY 1, LLC will continue to accept new investors until we reach 100 share members.
2. MONOPOLY 1, LLC will reduce their 10 year growth plan from $1 million of property purchased per year to $500,000 of property purchased per year. This decision will be revisited each year and adjusted based on the number of investors.
3. MONOPOLY 1, LLC will allow a single investor to invest a life-time maximum of $400,000 in member shares. This is an increase from the original life-time limit of $200,000.
Guidance for third quarter 2009:
For the third quarter, ending September 30, 2009, total revenue is expected to be $45,000. We expect an increase in rental income as we continue to release our vacated apartments. Operating expenses are expected to be $42,000 as we continue to execute our preventive maintenance plan and limit renovations. Net income and earnings per share for the third quarter are expected to be break even, assuming a weighted average share count of 72,000 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 June 30, 2009, M1 owned a real estate portfolio of nine rental properties containing 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 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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