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.
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