Securities Portfolio
Wednesday, November 9, 2011
Securities Portfolio Report as of September 30, 2011
As of September 30, 2011, M1’s securities portfolio was valued at $328,794, approximately 9.7% of total assets. The portfolio is comprised of real estate investment trusts and mutual funds, allocating 17% in residential REITs, 14% in office and industrial REITs, 15% in mortgage REITs, 13% in retail REITs, 6% in student housing REITs, and 35% in CGM Realty fund. Our three largest holdings were in the following mutual fund/REITs: CGM Realty fund (CGMRX), Annaly Capital (NLY), and Realty Income (O). During the 3Q, we added to our positions in American Campus (ACC), Annaly Capital (NLY), Home Properties (HME), UDR (UDR), Washington Real Estate Trust (WRE), and CGM Realty (CGMRX). We eliminated our positions in Digital Realty (DLR) and Investor RE Trust (IRET). Our securities portfolio performance during the quarter was -10.54%; since inception our securities portfolio has returned 6.97%.
Monday, September 26, 2011
Home Properties, Inc. Acquires Baltimore-Area Property
Company Release - 09/21/2011 11:35
ROCHESTER, N.Y., Sept. 21, 2011 /PRNewswire/ -- Home Properties, Inc. (NYSE: HME) today announced that, on August 23, 2011, it purchased an apartment community in White Marsh, Maryland, for a total purchase price of $90.4 million.
(Logo: http://photos.prnewswire.com/prnh/20101026/NY89070LOGO)
"This acquisition in the Mid-Atlantic region is immediately accretive to earnings, as were the other acquisitions completed this year, and offers revenue-generating interior improvement opportunities, which will contribute to future value," said Edward J. Pettinella, President and CEO of Home Properties.
The Apartments at Cambridge Court (544 units), located in the heart of White Marsh, Maryland, was purchased for $90.4 million in cash, which equates to approximately $166,000 per apartment unit. At closing, the property was 90.8% occupied at monthly rents averaging $1,314. Current occupancy is 92.2%. Centrally situated in eastern Baltimore County, the property has direct access to I-95, is two miles from I-695 (the Baltimore Beltway) and 10 miles from downtown Baltimore. It is in close proximity to major employment centers and corporate campuses. It also is adjacent to the retail complex White Marsh Town Center, which contains five anchor stores and 190 specialty shops. The area has seen a 21% population growth between the 2000 and 2010 census. The Apartments at Cambridge Court is well-positioned to capitalize on the growth at nearby Aberdeen Proving Ground (APG) where 8,500 high-paying jobs are slated for relocation as a result of Base Realignment and Closure (BRAC) required by September, 2011. As a result of BRAC growth, defense contractors and supporting firms in related industries are expanding in the area.
The Apartments at Cambridge Court was built in 1999 and 2002. It consists of 544 units in 18 three-story garden-style buildings (432 units) and two four-story mid-rise buildings (112 units). The buildings are brick and vinyl sided and of wood-frame construction with concrete slab and poured foundations. Roofs are pitched with decorative dormers covered with architectural-style asphalt shingles. There are 218 one-bedroom units, 272 two-bedroom units and 54 three-bedroom units. The average unit size is 962 square feet. The property has all PVC plumbing and 100 amp electric service in each unit. All units have individual gas-fired forced hot air and pad-mounted condensing units. Electric service is individually metered. Amenities include a swimming pool, clubhouse, fitness center, community gardens, children's playground, dog park, carports, in-unit washers and dryers and, in some units, fireplaces.
During the first three years of ownership, the Company expects to spend a total of approximately $2.6 million, in addition to normal capital expenditures, to upgrade units upon turnover. Full upgrades will include new cabinets, countertops and appliances as well as a combination sink/vanity in bathrooms. Management anticipates a 5.4% first year capitalization rate on this acquisition. (The return is calculated after allocating 2.7% of rental revenues for management and overhead expenses and before normalized capital expenditures.)
Acquisition costs of approximately $110,000 will be included in other expense in the 2011 third quarter.
ROCHESTER, N.Y., Sept. 21, 2011 /PRNewswire/ -- Home Properties, Inc. (NYSE: HME) today announced that, on August 23, 2011, it purchased an apartment community in White Marsh, Maryland, for a total purchase price of $90.4 million.
(Logo: http://photos.prnewswire.com/prnh/20101026/NY89070LOGO)
"This acquisition in the Mid-Atlantic region is immediately accretive to earnings, as were the other acquisitions completed this year, and offers revenue-generating interior improvement opportunities, which will contribute to future value," said Edward J. Pettinella, President and CEO of Home Properties.
The Apartments at Cambridge Court (544 units), located in the heart of White Marsh, Maryland, was purchased for $90.4 million in cash, which equates to approximately $166,000 per apartment unit. At closing, the property was 90.8% occupied at monthly rents averaging $1,314. Current occupancy is 92.2%. Centrally situated in eastern Baltimore County, the property has direct access to I-95, is two miles from I-695 (the Baltimore Beltway) and 10 miles from downtown Baltimore. It is in close proximity to major employment centers and corporate campuses. It also is adjacent to the retail complex White Marsh Town Center, which contains five anchor stores and 190 specialty shops. The area has seen a 21% population growth between the 2000 and 2010 census. The Apartments at Cambridge Court is well-positioned to capitalize on the growth at nearby Aberdeen Proving Ground (APG) where 8,500 high-paying jobs are slated for relocation as a result of Base Realignment and Closure (BRAC) required by September, 2011. As a result of BRAC growth, defense contractors and supporting firms in related industries are expanding in the area.
The Apartments at Cambridge Court was built in 1999 and 2002. It consists of 544 units in 18 three-story garden-style buildings (432 units) and two four-story mid-rise buildings (112 units). The buildings are brick and vinyl sided and of wood-frame construction with concrete slab and poured foundations. Roofs are pitched with decorative dormers covered with architectural-style asphalt shingles. There are 218 one-bedroom units, 272 two-bedroom units and 54 three-bedroom units. The average unit size is 962 square feet. The property has all PVC plumbing and 100 amp electric service in each unit. All units have individual gas-fired forced hot air and pad-mounted condensing units. Electric service is individually metered. Amenities include a swimming pool, clubhouse, fitness center, community gardens, children's playground, dog park, carports, in-unit washers and dryers and, in some units, fireplaces.
During the first three years of ownership, the Company expects to spend a total of approximately $2.6 million, in addition to normal capital expenditures, to upgrade units upon turnover. Full upgrades will include new cabinets, countertops and appliances as well as a combination sink/vanity in bathrooms. Management anticipates a 5.4% first year capitalization rate on this acquisition. (The return is calculated after allocating 2.7% of rental revenues for management and overhead expenses and before normalized capital expenditures.)
Acquisition costs of approximately $110,000 will be included in other expense in the 2011 third quarter.
Monday, August 15, 2011
MACK-CALI (CLI) TO DEVELOP OFFICE BUILDING FOR WYNDHAM WORLDWIDE’S CORPORATE HEADQUARTERS CONSOLIDATION
Edison, New Jersey—August 15, 2011—Mack-Cali Realty Corporation (NYSE: CLI), a position in MONOPOLY I, LLC’s securities portfolio, today announced that it will develop a 203,000-square-foot class A office building for Wyndham Worldwide Corporation (NYSE: WYN), enabling the hospitality company to consolidate its Parsippany, NJ-based workforce within a single campus.
The new building will be constructed adjacent to the 250,000-square-foot Wyndham Worldwide corporate headquarters at 22 Sylvan Way in the Mack-Cali Business Campus. Upon completion, the two buildings will provide a single, cohesive location for the thousands of associates based in Parsippany, and bring the total square feet leased in the Campus to 453,000, an increase of 14 percent.
The existing class A office building at 22 Sylvan was completed in 2009 by Mack-Cali during phase one of the campus project for Wyndham Worldwide. As part of phase two, the Company has pre-leased the new building for 15 years and three months, with both phases now having a co terminus lease.
Mack-Cali president and chief executive officer Mitchell E. Hersh, commented, “When we acquired the Campus in 1998, we were attracted to its existing premier buildings and exceptional tenants. The property also offered additional attractive development sites to accommodate the growth needs of first-class companies in this barrier constrained market. We’re pleased that we are able to extend our strong relationship with Wyndham Worldwide in the Campus.”
While specifics are still to be determined, the new building is anticipated to increase efficiencies, and support the culture and core values of Wyndham Worldwide, which include a strong commitment to sustainability and responsible environmental practices. The Wyndham Worldwide corporate headquarters at 22 Sylvan Way has received numerous recognitions, including earning the prestigious silver LEED certification for Corporate Interiors by the U.S. Green Building Council.
The three-story granite and glass building is expected to be completed in first quarter 2013 and ready for occupancy by late third quarter 2013. The architect on the core and shell portion of the project is HLW International.
About Mack-Cali Realty Corporation
Mack-Cali Realty Corporation is a fully integrated, self-administered, self-managed real estate investment trust (REIT) providing management, leasing, development, construction and other tenant-related services for its class A real estate portfolio. Mack-Cali owns or has interests in 278 properties, primarily office and office/flex buildings located in the Northeast, totaling approximately 32.4 million square feet. The properties enable the Company to provide a full complement of real estate opportunities to its diverse base of over 2,000 tenants.
Additional information on Mack-Cali Realty Corporation is available on the Company’s website at www.mack-cali.com.
The new building will be constructed adjacent to the 250,000-square-foot Wyndham Worldwide corporate headquarters at 22 Sylvan Way in the Mack-Cali Business Campus. Upon completion, the two buildings will provide a single, cohesive location for the thousands of associates based in Parsippany, and bring the total square feet leased in the Campus to 453,000, an increase of 14 percent.
The existing class A office building at 22 Sylvan was completed in 2009 by Mack-Cali during phase one of the campus project for Wyndham Worldwide. As part of phase two, the Company has pre-leased the new building for 15 years and three months, with both phases now having a co terminus lease.
Mack-Cali president and chief executive officer Mitchell E. Hersh, commented, “When we acquired the Campus in 1998, we were attracted to its existing premier buildings and exceptional tenants. The property also offered additional attractive development sites to accommodate the growth needs of first-class companies in this barrier constrained market. We’re pleased that we are able to extend our strong relationship with Wyndham Worldwide in the Campus.”
While specifics are still to be determined, the new building is anticipated to increase efficiencies, and support the culture and core values of Wyndham Worldwide, which include a strong commitment to sustainability and responsible environmental practices. The Wyndham Worldwide corporate headquarters at 22 Sylvan Way has received numerous recognitions, including earning the prestigious silver LEED certification for Corporate Interiors by the U.S. Green Building Council.
The three-story granite and glass building is expected to be completed in first quarter 2013 and ready for occupancy by late third quarter 2013. The architect on the core and shell portion of the project is HLW International.
About Mack-Cali Realty Corporation
Mack-Cali Realty Corporation is a fully integrated, self-administered, self-managed real estate investment trust (REIT) providing management, leasing, development, construction and other tenant-related services for its class A real estate portfolio. Mack-Cali owns or has interests in 278 properties, primarily office and office/flex buildings located in the Northeast, totaling approximately 32.4 million square feet. The properties enable the Company to provide a full complement of real estate opportunities to its diverse base of over 2,000 tenants.
Additional information on Mack-Cali Realty Corporation is available on the Company’s website at www.mack-cali.com.
Tuesday, July 12, 2011
2Q11 Securities Portfolio Report
As of June 30, 2011, M1’s securities portfolio was valued at $321,408, approximately 9.6% of total assets. The portfolio is comprised of real estate investment trusts and mutual funds, allocating 13.58% in residential REITs, 13.95% in office and industrial REITs, 12.82% in specialty REITs, 11.5% in retail REITs, 3.3% in student housing REITs, and 44.85% in CGM Realty fund. Our three largest holdings were in the following mutual fund/REITs: CGM Realty fund (CGMRX), Realty Income (O), and Mack-Cali Realty (CLI). During the 2Q, we added to our positions in Annaly Capital, Washington Real Estate Trust, UDR, Investor Real Estate Trust, and CGM Realty fund. Our securities portfolio performance during the quarter was 2.34%; since inception our portfolio has returned 23.30%.
Tuesday, July 5, 2011
10 Stocks Using Real Cash To Pay Higher Dividends
On June 24, 2011, Dividend Growth Stocks published an article on their blog, www.dividend-growth-stocks.com discussing 10 stocks using real cash to pay higher dividends. Out of the 10 stocks mentioned, two are current holdings in our securities portfolio. The following is an excerpt of the article:
“You can’t spend earnings! At first glance, this seems like an odd statement, possibly even incorrect. However, it is not only correct, but an important axiom for all types of investors. Through fraud and manipulation financial statements can be made to look quite impressive, but the cash that arrives in your brokerage account is real.
An increasing cash dividend keeps pressure on management to ensure the company is well run. If there are too many missteps, eventually the dividend will slip. Here are several stocks where management recently met the challenge by raising their cash dividends:
Realty Income Corporation (O) engages in the acquisition and ownership of commercial retail real estate properties in the United States. June 21st the company increased its monthly dividend 0.2% to $0.144875 per share. The dividend is payable on July 15, 2011 to shareholders of record as of July 1, 2011. This is the 55th consecutive quarterly increase and the 62nd dividend increase since Realty Income went public in 1994. The yield based on the new payout is 5.2%.
Annaly Capital Management, Inc. (NLY), a real estate investment trust, engages in the ownership, management, and financing of a portfolio of investment securities. June 20th the company increased its quarterly dividend 5% to $0.65 per share. This dividend is payable July 28, 2011 to common shareholders of record on June 30, 2011. The ex-dividend date is June 28, 2011. The yield based on the new payout is 13.9%.
Selecting stocks with increasing dividends is critical for an income growth strategy.”
As you can see Realty Income Corporation (O) and Annaly Capital Management, Inc. (NLY) are performing well and are ideal for MONOPOLY I, LLC’s income growth strategy.
“You can’t spend earnings! At first glance, this seems like an odd statement, possibly even incorrect. However, it is not only correct, but an important axiom for all types of investors. Through fraud and manipulation financial statements can be made to look quite impressive, but the cash that arrives in your brokerage account is real.
An increasing cash dividend keeps pressure on management to ensure the company is well run. If there are too many missteps, eventually the dividend will slip. Here are several stocks where management recently met the challenge by raising their cash dividends:
Realty Income Corporation (O) engages in the acquisition and ownership of commercial retail real estate properties in the United States. June 21st the company increased its monthly dividend 0.2% to $0.144875 per share. The dividend is payable on July 15, 2011 to shareholders of record as of July 1, 2011. This is the 55th consecutive quarterly increase and the 62nd dividend increase since Realty Income went public in 1994. The yield based on the new payout is 5.2%.
Annaly Capital Management, Inc. (NLY), a real estate investment trust, engages in the ownership, management, and financing of a portfolio of investment securities. June 20th the company increased its quarterly dividend 5% to $0.65 per share. This dividend is payable July 28, 2011 to common shareholders of record on June 30, 2011. The ex-dividend date is June 28, 2011. The yield based on the new payout is 13.9%.
Selecting stocks with increasing dividends is critical for an income growth strategy.”
As you can see Realty Income Corporation (O) and Annaly Capital Management, Inc. (NLY) are performing well and are ideal for MONOPOLY I, LLC’s income growth strategy.
Wednesday, May 11, 2011
American Campus Communities building $132M housing project at Northern Illinois University
News release regarding our student housing REIT, American Campus Communities Inc. (ACC):
American Campus Communities Inc. (ACC) won a deal to build a 1,008-bed student housing project in Illinois.
The Austin-based residential developer and manager (NYSE:ACC) was awarded the project through a competitive procurement process. The $132 million build at Northern Illinois University will open in August 2012.
The two, five-story structures will be the school's first new undergraduate residence hall in more than four decades. Units will have a shared living area, study space, kitchenette and washer and dryer. Another 12 units will be completely private. A 32,839-square-foot community center will house a social lounge with gaming area, fitness center and meeting space.
The property will also include a sand volleyball court, basketball half court and bean bag courts.
American Campus (NYSE: ACC) is the ninth-largest public company in Austin and maintains assets worth more than $2.6 billion. Last year, the company acquired 17 properties with 10,417 beds for a total $414.2 million, and broke ground on $190.4 million in projects with 3,314 beds.
RESOURCE: Austin Business Journal
Date: Wednesday, April 20, 2011, 12:01pm CDT - Last Modified: Wednesday, April 27, 2011, 8:39am CDT
American Campus Communities Inc. (ACC) won a deal to build a 1,008-bed student housing project in Illinois.
The Austin-based residential developer and manager (NYSE:ACC) was awarded the project through a competitive procurement process. The $132 million build at Northern Illinois University will open in August 2012.
The two, five-story structures will be the school's first new undergraduate residence hall in more than four decades. Units will have a shared living area, study space, kitchenette and washer and dryer. Another 12 units will be completely private. A 32,839-square-foot community center will house a social lounge with gaming area, fitness center and meeting space.
The property will also include a sand volleyball court, basketball half court and bean bag courts.
American Campus (NYSE: ACC) is the ninth-largest public company in Austin and maintains assets worth more than $2.6 billion. Last year, the company acquired 17 properties with 10,417 beds for a total $414.2 million, and broke ground on $190.4 million in projects with 3,314 beds.
RESOURCE: Austin Business Journal
Date: Wednesday, April 20, 2011, 12:01pm CDT - Last Modified: Wednesday, April 27, 2011, 8:39am CDT
Thursday, April 14, 2011
1Q 2011 Securities Portfolio Report
As of March 31, 2011, M1’s securities portfolio was valued at $280,915, approximately 8.2% of total assets. The portfolio comprises of real estate investment trusts and mutual funds, allocating 8.4% in residential REITs, 12.1% in office and industrial REITs, 11.6% in specialty REITs, 16.9% in retail REITs, 3.5% in student housing REITs, and 47.5% in CGM Realty fund. Our three largest holdings were in the following mutual fund/REITs: CGM Realty fund, Realty Income (retail), and Mack-Cali Realty (office/industrial). During the 1Q, we added to our positions in Mack-Cali Realty, Annaly Capital, Washington Real Estate Trust, and CGM Realty fund. Our securities portfolio performance during the quarter was 3.11%; since inception our portfolio has returned 20.99%.
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