4Q11 revenue was $78,155, 26.4% higher than 3Q11
4Q11 FFO was $12,398 vs. $600 in 3Q11
4Q11 dividends from securities portfolio was $4,358 vs. $3,403 in 3Q11
Securities portfolio’s return was 11.48% during 4Q11
Share price increased 1.2% to $12.00 per share during 4Q11
2011 revenue was $241,175, 9.82% higher than 2010
2011 interest expense decreased 23.2% YOY, $107K vs. $140K
Assets increased $89,726 to $3,425,999 in 2011
Liabilities decreased $130,968 to $1,709,901 in 2011
Securities portfolio’s return for 2011 was 5.18%
Member shares issued since inception: 143,006 (60 share members)
Revenue: M1’s fourth quarter rental revenue was $69,190 compared to $52,472 and $42,756 during the 3Q and 2Q respectively. The completion of Macomb renovations and fully leased available apartments in Joplin have both contributed to this positive trend. Our rental income for 2011 was $217,982 a slight increase over 2010’s income of $214,368. Our securities portfolio generated $4,358 in dividends compared to $3,403 during 3Q11. We expect dividend income to continue to increase as we focus on growing our securities portfolio.
Operating expenses: Our operating expenses for the year were $226,179. During 2012 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 operating expenses were in line with our budget. Depreciation accounted for $90,663 of operating expenses.
Funds From Operations (FFO): M1’s taxable net loss for the year was $92,606; however by backing out property depreciation the company experienced a minimum negative FFO of $1,943. Interest expense for 2011 was $107,628 vs. $140,285 in 2010. Management will continue to refinance or decrease liabilities to lower interest expense, allowing the company to use those savings for property renovations.
Balance sheet: Cash, cash equivalents, and short-term investments as of December 31, 2011 were $364,999. Short-term investments account for $363,199. Property values remained stable. We anticipate that once the apartments at 1505 Michigan Ave. in Joplin are renovated and able to be rented, the value will return to pre-tornado market values. The company’s total liabilities are $1,709,901, a reduction of $130,968 during the year through mortgage reduction. Share members’ equity increased $221,477 during 2011 to $1,716,098 reflecting member share purchases. During 2011, M1 issued 31,068 member shares. Due to the passing of a share member, the company repurchased 461 shares during the 4Q11.
Securities portfolio: As of December 31, 2011, M1’s securities portfolio was valued at $363,199, approximately 10.6% of total assets. The portfolio is comprised of real estate investment trusts and mutual funds, allocating 17% in residential REITs, 11% in office and industrial REITs, 12% in mortgage REITs, 13% in retail REITs, 7% in student housing REITs, and 40% 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 4Q, we added to our positions in American Campus (ACC) and CGM Realty (CGMRX). Our securities portfolio performance during the fourth quarter was 11.48%; since inception our securities portfolio has returned 19.22%.
Property management: During the fourth quarter we focused on routine maintenance. During the 1Q12, we plan to begin renovations on 10 apartments located at 1505 Michigan Ave, Joplin. These are the last apartments that are in need of repair following the tornado from last May. In addition, we have three apartments at Highland Ave, Joplin and one apartment at 1501 6th Street, Joplin to renovate during 2012. Upon completion of these 14 apartment renovations we will be done with our renovations. During the second half of 2012, we will turn our focus on routine maintenance and repair as well as exterior appearance improvement of our properties.
Acquisition: No property acquisitions during this year.
Guidance for 2012: M1’s 2012 revenue goal is $250,000. 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 renovation and preventive maintenance plans. During the first half of 2012, funds from operations are expected to be break even as we fully reinvest our funds from operations. As we approach our first dividend payment (to be paid in January 2013) we will set aside a portion of our net income to be distributed to share members.
Property management: During the fourth quarter we focused on routine maintenance. During the 1Q12, we plan to begin renovations on 10 apartments located at 1505 Michigan Ave, Joplin. These are the last apartments that are in need of repair following the tornado from last May. In addition, we have three apartments at Highland Ave, Joplin and one apartment at 1501 6th Street, Joplin to renovate during 2012. Upon completion of these 14 apartment renovations we will be done with our renovations. During the second half of 2012, we will turn our focus on routine maintenance and repair as well as exterior appearance improvement of our properties.
Acquisition: No property acquisitions during this year.
Guidance for 2012: M1’s 2012 revenue goal is $250,000. 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 renovation and preventive maintenance plans. During the first half of 2012, funds from operations are expected to be break even as we fully reinvest our funds from operations. As we approach our first dividend payment (to be paid in January 2013) we will set aside a portion of our net income to be distributed to share members.
No comments:
Post a Comment