Letter from our President-March 31, 2013

To our M1 family members,

MONOPOLY I, LLC (M1) is off to another record-breaking year. We grew our assets to $4,853,089, set a new company record for rental income in 1Q13, increased the size of our securities portfolio to $1,041,926, and reduced our liabilities, decreasing our debt-to-asset ratio to 58%.

The “Review of 1Q 2013 Financial Results” section of this report will identify many trends, but here are some highlights:

-Quarterly rental income remains on a positive trend.  During 1Q13 our rental revenue exceeded $100,000 for the first time, ending the quarter at $106,388—a New Company Record.  Compare these results to a year ago—our 1Q12 rental income was $81,728. Now that our apartment renovations are complete and our four new properties purchased in December are ready to be rented, 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 $257,245 during 1Q13 to $1,041,926. Dividends received in 1Q13 were $12,811, an increase of 99.89% over 4Q12.

 

-Stronger balance sheet and financial leverage. Our assets grew to $4,853,089 and we are carrying $2,819,392 in total liabilities.  During 1Q13 we reduced our credit card debt by $29,509 and restructured several bonds, lowering our cost of capital to 5.04% overall while maintaining a debt-to-asset ratio of 58%, well below our stated goal of 70%.

With our operational initiatives in mind, M1 continues 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 continue 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