JOPLIN, Mo., October 9, 2007 MONOPOLY I, L.L.C. (M1), a real estate investment company, today announced financial results for its third quarter ended September 30, 2007.
Revenue increased 9.2% over 2Q07 to $31,038.
Net loss YTD for 2007 is $20,717 after property depreciation.
Capital raised since inception of the company is $362,178 vs. goal of $300,000.
Total assets are $1,410,143, in line with company’s goal.
Third quarter 2007 and YTD 2007 financial results:
Revenue: M1’s third quarter revenue was $31,038 compared to $28,424 in the second quarter, an increase of 9.2% surpassing the company's prior guidance of $30,000.
Net Operating Income: M1’s net operating income was $6,624 compared to $4,282 in 2Q07. The increase in net operating income is due in part to an increase in rental income and a reduction in repairs and maintenance as the majority of our 2007 maintenance budget was spent during the 2Q.
Operating expenses: Operating expenses were $24,414 compared to $24,143 in 2Q07. Spending was below the company's prior guidance ($26,500) due to less advertising, bad debt and maintenance expenditures.
Net income: Net loss was $7,262 compared to $9,724 in 2Q07. However, in backing out property depreciation the company has experienced a positive cash flow for 2007.
EBITA & Earnings per share: Earnings before interest, taxes and amortization were $22,027 compared to $19,538 in 2Q. Year to date, EBITA is $60,624 or $1.82 per share.
Balance sheet: Cash, cash equivalents, and short-term investments at the end of the third quarter of 2007 were $48,128 compared to $58,574 as of December 31, 2006. The decrease is largely due to our recent cash outlays for property purchases. However, we did experience an increase of $7,097 in the value of our CGM Realty fund during the 3Q. Also, since June 30, 2007, long-term assets increased $406,015 to $1,362,015. The increase includes the purchase of 1300 E. 15th Street and 822 Grand. The company’s debt increased $264,733 to $980,464 also due to the above acquisitions. M1 issued 6,828 member shares. No shares were repurchased during the first half of 2007.
Other developments during the 3rd quarter:
Acquisition: During 3Q07, MONOPOLY made two property purchases. Both properties are within the city limits of Joplin, Missouri. On September 1, MONOPOLY purchased 822 Grand Street. This property is a duplex with (1) 2 bedroom and (1) 1 bedroom apartment. The purchase price of the property was $54,000 and it produces a total income of $7,500 per year. On September 28, MONOPOLY purchased 1300 E. 15th Street. This property is an 11-unit apartment building consisting of (1) 3 bedroom, (6) 2 bedroom, and (4) 1 bedroom apartments. The purchase price of the property was $327,000 and it produces a total income of $54,000 per year.
Guidance for the fourth quarter and full year 2007: For the fourth quarter, ending December 31, 2007, total revenue is expected to be $36,000. We expect an increase in rental income due to our annual rental rate increase that took effect on September 1, 2007 as well as from our recent property purchases. Operating expenses are expected to be $34,000 as we continue to execute our preventive maintenance plan and establish an office. Net income and earnings per share for the third quarter are expected to be break even, assuming a weighted average share count of 35,300 shares.
About MONOPOLY I, L.L.C.:
MONOPOLY I, L.L.C. (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 October 1, 2007, M1 owned a real estate portfolio of 7 rental properties containing approximately 39 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@monopoly1llc.com
© 2007 MONOPOLY I, L.L.C. All rights reserved. MONOPOLY I, L.L.C. is a registered trademark in the state of Missouri.
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