Great Northern Iron Ore Properties Trust has a market cap of $175.5 million; its shares were traded at around $117.02 with a P/E ratio of 16 and P/S ratio of 11.8. The dividend yield of Great Northern Iron Ore Properties Trust stocks is 12.8%.GNI is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations: We have previously provided information in our various Securities and Exchange Commission filings, including our Annual Report, about the final distribution payable to the certificate holders upon the Trusts termination. The exact final distribution, though not determinable at this time, will generally consist of the sum of the Trusts net monies (essentially, total assets less liabilities and properties) and the balance in the Principal Charges account, less any and all expenses and obligations of the Trust upon termination. To offer a hypothetical example, without factoring in any expenses and obligations of the Trust upon its termination, and using the financial statement values as of December 31, 2009, the net monies were approximately $7,867,000 and the Principal Charges account balance was approximately $4,931,000, resulting in a final distribution payable of approximately $12,798,000, or about $8.53 per share. After payment of this final distribution, the certificates of beneficial interest (shares) would be cancelled and have no further value. It is important to note, however, that the actual net monies on hand and the Principal Charges account balance will most likely fluctuate during the ensuing years and will not be final until after the termination and wind-down of the Trust. The Trust offers this example to further inform investors about the conceptual nature of the final distribution and does not imply or guarantee a specific known final distribution amount.
Royalties increased $3,589,296 and $4,004,437 during the nine months and three months ended September 30, 2010, respectively, as compared to the same periods in 2009, due mainly to greater mining from Trust lands, which was the result of overall higher demand for steel and correspondingly taconite, as well as improved royalty rates and greater net minimum royalties.
Interest and other income decreased $36,132 and $7,846 during the nine months and three months ended September 30, 2010, respectively, as compared to the same periods in 2009, due mainly to reduced yields on the Trusts investments.
Costs and expenses increased $42,387 and $43,311 during the nine months and three months ended September 30, 2010, respectively, as compared to the same periods in 2009, due mainly to the passing of one Trustee in July 2009 resulting in less compensation expense in 2009 versus 2010. A successor Trustee was thereafter confirmed by the Ramsey County District Court effective December 2009.
At their meeting held on September 10, 2010, the Trustees declared a distribution of $3.75 per share, amounting to $5,625,000 payable October 29, 2010, to certificate holders of record at the close of business on September 30, 2010. The Trustees have now declared three quarterly distributions in 2010. The first, in the amount of $2.00 per share, was paid on April 30, 2010, to certificate holders of record on March 31, 2010; the second, in the amount of $2.75 per share, was paid on July 30, 2010, to certificate holders of record on June 30, 2010; and the third, that being the current distribution. The first, second and third quarter 2009 distributions were $1.80, $1.80 and $1.80 per share, respectively. The Trustees intend to continue quarterly distributions and set the record date as of the last business day of each quarter. The next distribution will be paid in late January 2011 to certificate holders of record on December 31, 2010.
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