During the 1Q2010 MONOPOLY I, LLC (M1) purchased its tenth property, increased revenue by 7% (1Q10 vs. 1Q09), managed all line item expenses to budget and posted positive cash flow. Also, during the quarter M1 raised $133,407 in capital investments and their share price increased to $13.16, a $.10 increase. Company’s assets surpass $3.0 million.
JOPLIN, Mo., April 6, 2010
MONOPOLY I, LLC (M1), a real estate investment company, today announced financial results for its first quarter ended March 31, 2010.
--Quarterly revenue hit an all-time high of $53,588.
--Posted a positive cash flow of $1,640 and a net loss of $18,571 after property depreciation.
--Capital raised since inception of the company is $1,040,314 vs. goal of $825,000.
--Total assets are $3,043,301, ahead of the company’s “revised goal” of $1,875,000.
First quarter 2010 financial results
Revenue: M1’s first quarter revenue was $53,588 compared to $44,743 in the fourth quarter 2009, an increase of 19% exceeding the company's prior guidance of $53,250. For 2010, M1’s revenue goal is $213,000.
Net Operating Income: M1’s net operating income was $14,026, slightly better than our goal of $13,143. The increase in net operating income is due to increased rental rates and tight expense management, specifically a decrease in repairs and maintenance. 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 the annual payment of one property insurance premium (1505 Michigan) our insurance premiums were higher than normal during the 1Q. The insurance premium was offset by lower than normal repair expenses. Also, during the 1Q we have not paid our professional fees for accounting, tax preparation and tax return filing which will be paid during the 2Q.
Net income: Taxable net loss was $18,571; however, in backing out property depreciation the company experienced a net positive cash flow of $1,640.
EBITA & Earnings per share: Earnings before interest, taxes and amortization were $34,237 or $.40 per share.
Balance sheet: Cash, cash equivalents, and short-term investments as of March 31, 2010 were $303,301. Our increase in current assets was a direct result of our capital investment campaign. With the purchase of our tenth property, M1 grew total assets to $3,043,301. The company’s total liabilities increased to $1,914,915—also due to the above acquisition and the issuing of bonds. Share members equity increased $142,401 to $1,128,386. During the 1Q10, M1 issued 10,215 member shares. No shares were repurchased by the company in 1Q2010.
Other developments during the 1st quarter
Acquisition:
--M1 purchased 208-210, 1001-1011 Gray Street, an 8-unit apartment building for $275,000. Each apartment consists of 1 bedroom/1 bath and rents for $350 per month. The building was appraised for $285,000.
--M1 currently has a contract pending for the purchase of a 28-unit (7-building) complex known as the “Westwood Apartments”. There are 16-1 bedroom and 12-2 bedroom apartments. Each unit rents for $400/$550 per month. The building has been appraised for $960,500. The seller has accepted a purchase price of $720,000. We are scheduled to close on May 7, 2010.
Guidance for second quarter 2010: For the second quarter, ending June 30, 2010, total revenue is expected to be $60,000. We expect an increase in rental income as we achieve full occupancy at Gray Street and the acquisition of Westwood Apts. Operating expenses are expected to be $48,000 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 88,080 shares.
About MONOPOLY I, LLC
MONOPOLY I, LLC (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, 2010, M1 owned a real estate portfolio of 10 rental properties containing approximately 78 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, LLC All rights reserved. MONOPOLY I, LLC is a registered trademark in the state of Missouri.
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