Letter from our President--December 31, 2012

MONOPOLY I, LLC (M1) has had a banner year!  We grew our assets to $4,794,480, set new company records for rental income in each quarter during 2012, increased the size of our securities portfolio to $784,681, and implemented debt conversions lowering our cost of capital to 5.16% as well as strengthening our balance sheet, decreasing our debt-to-asset ratio to 59%.

The “Review of 4Q 2012 Financial Results” section of this report will identify many trends, but here are some highlights:

-Quarterly rental income remains on a positive trend.  During 4Q12 our rental revenue was $95,924-New Company Record.  Compare these results to a year ago—our 4Q11 rental income was $69,189.  Since 4Q11 we have been on a positive trend, setting record revenue of $81,728 in the 1Q12, and then followed it up with $82,883 in 2Q12 and $83,723 in 3Q12. Now that our apartment renovations are complete and as we bring our four new properties to market we expect to continue to deliver consistent rental income increases.

-Securities portfolio growth is in line with our goal.  Our securities portfolio’s value increased $265,535 during 4Q12 to $784,681. The dividends earned in our securities portfolio will be used to fund distributions to our share members with our first payment on January 31, 2013.  Dividends received in 4Q12 were $6,409, an increase of 28% over 3Q12. Total dividends received in 2012 were $20,361.

-Stronger balance sheet and financial leverage. Our assets grew to $4,794,480 and we are carrying $2,850,387 in total liabilities.  During the quarter we acquired $640,000 of new debt at an interest rate of 3.25%, reducing our cost of capital to 5.16% overall and maintaining a debt-to-asset ratio of 59%, well below our stated goal of 70%.

With our operational initiatives in mind, in 2013 M1 will continue to focus on sharing our story—attracting share members committed to our company’s business plan.  We will look for opportunities to grow our assets, both properties and market securities, with a goal of increasing the quality of our overall portfolio.  We will manage our financial statements to meet our stated goals and ensure we remain fiscally conservative but have the flexibility to take advantage of timely opportunities. We will continue to invest in our properties improving their quality and attracting good tenants.  Lastly, we will begin to make distributions, rewarding our share members for their commitment to and involvement in our M1 family.

As always, thank you for your continued support. I am humbled to be the leader of M1 and if you would like a more detailed conversation, I would welcome an opportunity to talk.

God bless,       BILL