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Wednesday, July 17, 2013

Letter from our President - June 30, 2013


To our M1 family members,

MONOPOLY I, LLC (M1) continues its revenue and asset growth during 2Q13 with the purchase of a 48-unit apartment complex known as “Oxford Apartments”. Our assets have reached $6,538,930 and we set a new company record for rental income in 2Q13 generating $176,662.

The “Review of 2Q 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 2Q13 our rental revenue was $176,662—a new company record.  Compare these results to a year ago—our 2Q12 rental income was $89,831.

-Securities portfolio is in line with our goal.  Our securities portfolio’s value decreased $57,704 during 2Q13 to $984,222. Much of the reduction is due to the market downturn in June; however we have also eliminated some positions. Dividends received in 2Q13 were $16,951, an increase of 32.31% over 1Q13.

-Balance sheet and financial leverage. Our assets grew to $6,538,930 and we are carrying $4,411,425 in total liabilities.  During 2Q13 we reduced our credit card debt by $12,612 and negotiated an interest rate of 3.75% on Oxford Apartments.  These two items lowered our cost of capital to 4.21%.  Our overall debt-to-asset ratio has increased to 67.5%, but still 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.  During the 3Q, we will focus on debt reduction. Additionally, we will continue to invest in our properties improving their quality and attracting good tenants.  Lastly, we will strive to increase our funds from operations for our next distribution, 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

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