MONOPOLY I, LLC (M1) experienced growth in many areas during the 3Q2010 as they increased their revenue, net income, and share price. Also, property value surpasses $3,000,000.
JOPLIN, Mo., October 5, 2010
MONOPOLY I, LLC (M1), a real estate investment company, today announced financial results for its third quarter ended September 30, 2010.
-Revenue was $55,948, 24% higher than 3Q09 and 11% higher than 2Q10.
-Net income was $3,322, this compares to a net loss of $10,025 in 3Q09.
-Net taxable loss was $18,524 after property depreciation.
-Property value increased to $3,090,000, a 13% increase since 2Q10—positioning the company ahead of our “revised goal” of $2,125,000.
-Share price increased to $13.29, a .22 cent increase over 2Q10.
-Capital raised since inception of the company is $1,204,194.
Third quarter 2010 financial results
Revenue: M1’s third quarter revenue was $55,948 compared to $45,261 in the third quarter 2009, an increase of 24%. At the end of three quarters, M1’s revenue is $159,346—slightly lower than our revenue goal of $159,750—however 16% higher than revenue during the same period in 2009. Higher revenue is a direct result of the improved rental environment in Joplin as well as our additional properties purchased on 8/1/10.
Net Operating Income: M1’s net operating income was $34,102 during the quarter; a 13% increase over 2Q10 and 30% increase over 3Q09. NOI continues to improve as we begin to capitalize more property improvements instead of expensing in the same year. Our short-term goal remains—Improve our units to increase rental rates. Success of our short-term goal will lead to longer tenant retention and consistent dividends in the future.
Operating expenses: Based on feedback from our financial partners, we have begun to capitalize a higher percentage of our property renovation expenses in order to show improvement in operating income. Although, we will capture these “expenses” through depreciation, the company’s operating income will improve with this accounting change. Therefore, our operating expenses are well below our initial budget. For example, our repair/maintenance budget for 2010 is $25,000; to date we have recorded $12,839 in current year expenses. Caution: Although this accounting change will show lower repair/maintenance costs—we are continuing to invest money to improve our properties—thus maintaining our “pre-dividend” goal of reinvesting cash flow into property improvements.
Net income: M1’s taxable net loss for the 3Q was $18,524, however in backing out property depreciation the company experienced a net positive cash flow of $3,322—compared to net negative cash flow for the same period in 2009 of $10,025.
EBITA & Earnings per share: Earnings before interest, taxes and amortization were $.38 per share.
Balance sheet: Cash, cash equivalents, and short-term investments as of September 30, 2010 were $238,941—short-term investments account for $204,076. The company’s total liabilities increased to $2,022,867—as a result of our property acquisition during the quarter. Share members equity increased $53,858 to $1,306,074—reflecting member share purchases, property renovations and appreciation in market securities. During the 3Q10, M1 issued 2,399 member shares. No shares were repurchased by the company in 3Q2010.
Other developments during the 3rd quarter
Property Management: Greetings from Joplin, Missouri. I am excited to inform you about what is occurring with Monopoly. We renovated several apartments this quarter, renting all of them and giving us the ability to raise rents as well. We continue to maintain a 93% occupancy rate and improve the overall quality and appearance of our properties. On the challenging side the job market is difficult in Joplin, with some clients losing employment and increasing our turn-over rate. Fortunately, demand is high for rental property at this time.
Woodrow Friel
Senior VP of Property Management
Monopoly I, LLC
Acquisition: M1 purchased 2 buildings consisting of 3 units each in Macomb, IL during the quarter. The addresses are 308 W. Adams and 320 N. McArthur. Five of the six units are currently leased. The properties are located in the heart of the Western Illinois University (WIU) campus and we plan to establish a relationship with the ROTC unit at WIU in order to lease the units to ROTC cadets beginning in the Fall 2011. We have hired a current WIU cadet, Nick Fergusson to be our on-site manager.
Guidance for fourth quarter 2010: For the fourth quarter, ending December 31, 2010, total revenue is expected to be $60,000. We expect an increase in rental income as we achieve full occupancy in Macomb and as we lease our recently renovated units in Joplin. Operating expenses are expected to be $38,000 as we continue to execute our preventive maintenance plan—and continue to “capitalize” our renovation expenses. Net income and earnings per share for the fourth quarter are expected to be break even, assuming a weighted average share count of 100,500 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 September 30, 2010, M1 owned a real estate portfolio of 12 rental properties containing approximately 85 apartment units located in Illinois and 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
Company website:
www.monopoly1.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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