MONOPOLY I, LLC Reports 3Q11 Financial Results

Company Operations

 3Q revenue was $61,822, 36.1% higher than 2Q11
 Interest expense decreased 19.4% YOY, $83K vs. $103K
 3Q FFO was $600 vs. -$13,130 in 2Q11
 Property value is $3,060,000, a $50,000 increase
 Securities portfolio’s return for 3Q11 was -10.54%
 Long-term liabilities have decreased $114,235 YTD to $1,726,635
 Share price decreased 2% or $0.25 to $11.85
 Member shares issued since inception: 140,604 (62 share members)

Revenue: M1’s third quarter rental revenue was $52,472 compared to $42,756 during 2Q11. The completion of Macomb renovations and fully leased available apartments contributed to this 22.7% increase. Our securities portfolio generated $3,403 in dividends compared to $2,648 during 2Q11. We expect dividend income to continue to increase as we focus on growing our securities portfolio. In addition, our rental income will continue to increase as we initiate six new leases on October 1, 2011.

Net Operating Income (NOI): M1’s NOI was $2,170.

Operating expenses: Our operating expenses for the quarter were $59,652. During the third quarter we experienced higher than normal repair costs and we will continue to experience this until all renovation projects are complete. For the remainder of the year we will continue to invest money to improve our properties, thus maintaining our “pre-dividend” goal of reinvesting funds from operations (FFO) into property improvements. All other operating expenses were in line with our budget. Depreciation accounted for $22,665 of operating expenses.

Funds From Operations (FFO): M1’s taxable net loss for the quarter was $22,065; however by backing out property depreciation the company experienced a positive FFO of $600. Interest expense year-to-date is $83,226 vs. $103,259 during the same period in 2010.

Balance sheet: Cash, cash equivalents, and short-term investments as of September 30, 2011 were $332,140. Short-term investments account for $328,794. Property value increased $50,000 to $3,060,000 as a result of higher rent collection at 320 N. McArthur, Macomb. Rental property’s value is based on rents received. We anticipate that once the apartments at 1501 and 1505 Michigan Ave. in Joplin are renovated and able to be rented the value of the properties will return to pre-tornado values. The company’s total liabilities are $1,726,635, a reduction of $114,235 YTD through mortgage reduction. Share members’ equity increased $133,643 during 3Q11 to $1,665,505 reflecting member share purchases. During the first three quarters of 2011, M1 issued 28,667 member shares. No shares were repurchased by the company.

OTHER DEVELOPMENTS DURING 3Q 2011

Securities portfolio: As of September 30, 2011, M1’s securities portfolio was valued at $328,794, approximately 9.7% of total assets. The portfolio is comprised of real estate investment trusts and mutual funds, allocating 17% in residential REITs, 14% in office and industrial REITs, 15% in mortgage REITs, 13% in retail REITs, 6% in student housing REITs, and 35% in CGM Realty fund. Our three largest holdings were in the following mutual fund/REITs: CGM Realty fund (CGMRX), Annaly Capital (NLY), and Realty Income (O). During the 3Q, we added to our positions in American Campus (ACC), Annaly Capital (NLY), Home Properties (HME), UDR (UDR), Washington Real Estate Trust (WRE), and CGM Realty (CGMRX). We eliminated our positions in Digital Realty (DLR) and Investor RE Trust (IRET). Our securities portfolio performance during the quarter was -10.54%; since inception our securities portfolio has returned 6.97%.

Property management: During the 3Q, we completed our two renovation projects in Macomb, IL. Upon completion we were able to achieve 100% occupancy and based on our pro-forma we will have FFO of $2,071 per month. In Joplin, we have completed six apartment renovation projects, each with a signed lease beginning October 1, 2011. We currently have 10 apartments in need of renovations and we plan to begin in January 2012. For the remainder of the year we will focus on general maintenance to improve the overall quality and appearance of our properties.

Acquisition: No property acquisitions during this quarter.

Guidance for 4Q11: M1’s 2011 revenue goal is reduced to $215,000 due to unrecoverable lost rents during the 2Q and 3Q. We expect our rental income to grow through apartment availability upon renovation completion and rental rate increases. Operating expenses are budgeted to remain in line with our expected revenue as we execute our preventive maintenance plans. Funds from operations are expected to be break even as we fully reinvest our funds from operations.