MONOPOLY I, LLC 1Q13 Financial Report

REVIEW OF 1Q 2013 FINANCIAL RESULTS

Company Operations

Ø  Total revenue (Operating and Investment) was $134,280 for 1Q13 Ø  Rental revenue was $106.4K vs. $95.9K in 4Q12—COMPANY RECORD Ø  Funds from operations (FFO) was $31,434 during 1Q13 Ø  Dividends from securities portfolio in 1Q13 was $12,811 vs. $6,409 in 4Q12 Ø  Share price increased .8% to $12.60 per share Ø  Member shares issued since inception: 161,419 (62 share members)   Revenue: M1’s first quarter total revenue was $134,280, which included rental income, dividends, and short-term and long-term capital gains/losses.  Rental revenue was $106,388 compared to $95,924 and $83,723 during the 4Q12 and 3Q12 respectively. Apartment availability, low turnover and efficient rental operations have contributed to this positive trend and stability. Our securities portfolio generated $12,811 in dividends compared to $6,409 during 4Q12.  We expect dividend income to increase as we continue to focus on growing our securities portfolio.   Operating expenses: Our operating expenses for 1Q13 were $123,532. We will continue to invest money to improve our properties; we invested $25,820 in maintenance and repairs during 1Q13. Our next two largest expenses were utility expense ($8,585) and property insurance ($4,910). All operating expenses were in line with our budget.  Depreciation accounted for $30,038 of operating expenses.   Funds From Operations (FFO):  M1’s taxable gain for 1Q13 was $10,748; however by adding back property depreciation and subtracting capital gains, the company experienced a positive FFO of $31,434.  Interest expense for 1Q13 was $35,566. Our average cost of capital decreased to 5.04%. Management will continue to seek opportunities to refinance liabilities in order to lower interest expense, allowing the company to use those savings for property renovations and REIT investments.   Distributions: M1 paid its first distribution to share members in January. Distributions are based on FFO from the previous six months of operations.  During July 1 – December 31, 2012, FFO was $65,581.  However, considering $30,000 was in maintenance credits we used $35,581 as our baseline for calculating our distribution.  M1 distributed 40% of FFO, resulting in a distribution of $14,232 or .09 per share.  The distribution was paid on January 31, 2013.   Balance sheet:  Cash, cash equivalents, and short-term investments as of March 31, 2013 were $1,055,089. Our REIT portfolio accounts for $1,041,926. Our property portfolio decreased $77,000 due to a re-appraisal of properties in Macomb and Grand Street property in Joplin. The company’s total liabilities decreased to $2,819,390.  This was a result of bonds redeemed and normal debt reduction through mortgage payments. Share members’ equity increased to $2,035,699. During 1Q13, M1 issued 5,923 member shares and increased our M1 family by two.   Property management:  The economy in Joplin is continuing to improve as major reconstruction projects are underway.  We have several apartments rented by contractors/workers who are rebuilding the hospital and high school. Many apartment complexes are also under construction, however until they are complete the demand far outweighs the supply.  Our occupancy rate increased from 93.15% (end of 2012) to 96.55% at the end of 1Q13.  Additionally, this past quarter has seen another record in rents collected. M1 has increased our rental income each quarter for the past five quarters in a row, moving from $81,728 in the 1Q12 to $106,388 in the 1Q13.  We invested $25,820 in repairs/renovations during 1Q13; this represents 24.2% of our rental income.  We expect this percentage to move toward 15% of rental income by the end of 2013.   During the 1Q13 we completed the renovations on our newest properties (Kenser and Marigold).  Six of nine units were rented at the end of 1Q13 and we have two new tenants moving in on April 1st.  The last unit has three approved applications with a move-in date of May 1, 2013.   Acquisition/Disposition: We did not make any acquisitions or dispositions during 1Q13.  However, we are in the final stages of negotiating a 48-unit apartment complex, known as “Oxford Apartments” in Joplin, MO.  The property is a private listing brought to our attention by our banking partner, Community Bank & Trust. After reviewing the property and receiving an appraisal from our realtor we have made an offer of $1,710,000. The operating income is $134,309 making the cap rate of this property 7.9%.  Additionally, the seller financed the loan agreeing to 3.75% interest, 5-year balloon, and 20-year amortization. After debt service the net income is $35,415, resulting in an 11% return on capital, assuming a down payment of $320,000.   Guidance for 2013: M1’s 2013 total revenue goal is increased to $475,000. We have experienced a significant increase in our total income during 1Q13 due to improved tenant payment operations, apartment availability, dividends, and trading activity. We expect our rental income to continue to grow as we rent our newly purchased properties and continue regularly scheduled annual rental rate increases.  Operating expenses are budgeted to remain in line (80%) with our expected revenue as we execute our preventive maintenance plans.  We have begun distributing 40% of our funds from operations and plan to gradually increase the amount as we grow our business, driving higher revenue and increasing our funds from operations.