During 2009 MONOPOLY 1, LLC (M1) accomplished many key financial objectives. We experienced 9.34% growth in revenue over 2008. Our total assets grew $405,655 (18%) and by managing our liabilities we reduced our debt to asset ratio to 61.8%. Also, during 2009 M1 raised $260,309 in capital investments and their share price increased to $13.06, a $.14 increase.
JOPLIN, Mo., January 6, 2010
MONOPOLY 1, LLC (M1), a real estate investment company, today announced financial results for 2009.
-Revenue increased 9.34% year over year to $181,875.
-Net loss for 2009 is $86,806 after property depreciation.
-Capital raised since inception of the company is $904,779 vs. goal of $805,000.
-Total assets are $2,584,671 ahead of the company’s “revised” goal of $1,750,000.
2009 Financial Results
Revenue Growth: M1’s revenue growth outpaced the industry average of 4.2%. Since the end of 2008, revenues increased 9.34% growing from $166,338 to $181,875. However, revenue fell short of 2009’s goal of $193,500 due to tenant job loss and higher than normal turnover experienced during the last 9 months of 2009. M1’s revenue goal for 2010 is $213,000. We expect to achieve our goal through property acquisitions, rental rate increases, and improved economic conditions.
Net Operating Income/Expenses: M1’s net operating income was $32,674, $6,000 shy of our 2009 goal. Although, we did not meet our goal M1 reduced its repairs/maintenance costs by 63% year over year and was $12,000 under budget. M1 experienced higher than expected property insurance, real estate tax and utility costs. These items caused M1 to miss its operating income goal. In 2010, M1 has adjusted the budget for these items as well as plans to keep our repair/maintenance costs to a level that will balance our budget.
Total Return: M1 began 2009 with a share price of $12.92, our ending share price is $13.06 a .14 increase. There were no dividends paid in 2009.
Net income: Taxable net loss was $86,806; however, in backing out property depreciation the company experienced a net cash flow of ($14,095). During 2009 we improved our net cash from ($37,435) to ($14,095) a $23,340 improvement.
Solvency: M1 ended 2008 with a debt/equity ratio of 2.04 and a debt/asset ratio of 67.1%. During 2009, M1’s primary focus was to reduce our debt and strengthen our balance sheet. At the end of 2009, our debt/equity ratio is 1.62 and our debt/asset ratio is 61.8%. The debt/equity industry average is 3.72, and the debt/asset ratio is .71. Both measurements are a significant decrease and positions M1 as a strong candidate for future growth and financing.
Balance sheet: Cash, cash equivalents, and short-term investments as of December 31, 2009 were $136,261. In 2009, M1’s total assets increased $405,655 to $2,584,671, while total liabilities increased $136,252 to $1,598,686. Share member’s equity increased to $904,779. During 2009, M1 issued 20,060 member shares. No shares were repurchased by the company in 2009.
Acquisition(s)during 4Q09:
NONE
Guidance for 2010: M1’s 2010 revenue goal is $213,000. We expect our rental income to grow through property acquisitions, rental rate increases and a better tenancy rate due to improved economic conditions. Operating expenses are expected to be $159,829 as we continue to execute our preventive maintenance and property rehabilitation plan. Net income and earnings per share for 2010 are expected to be break even, assuming a weighted average share count of 80,000 shares.
About MONOPOLY 1, LLC
MONOPOLY 1, LLC (M1), a limited liability company, engages in the ownership, operation, acquisition, development, and rehabilitation of residential and commercial properties in the United States. The company’s properties are regionally focused in Joplin, Missouri. As of Dec. 31, 2009, M1 owned a real estate portfolio of nine rental properties containing 69 apartment units. 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, LLC All rights reserved. MONOPOLY 1, LLC is a registered trademark in the state of Missouri.
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