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Great Northern Iron Ore Properties Trust Reports Operating Results (10-Q)

July 24, 2009 | About:
10qk

Great Northern Iron Ore Properties Trust (GNI) filed Quarterly Report for the period ended 2009-06-30.

Great Northern Iron Ore Properties owns interests in fee mineral and nonmineral lands on the Mesabi Iron Range of Minnesota. Income is derived through royalties on iron ore minerals taken from these properties by lessees. They are presently involved solely with the leasing and care of these properties. Great Northern Iron Ore Properties Trust has a market cap of $134.4 million; its shares were traded at around $89.57 with and P/S ratio of 6.5. The dividend yield of Great Northern Iron Ore Properties Trust stocks is 8.1%. Great Northern Iron Ore Properties Trust had an annual average earning growth of 5.7% over the past 10 years.

Highlight of Business Operations:

values as of December 31, 2008, the net monies were approximately $7,345,000 and the Principal Charges account balance was approximately $4,962,000, resulting in a final distribution payable of approximately $12,307,000, or about $8.20 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 $2,946,274 during the six months ended June 30, 2009, as compared to the same period in 2008, due mainly to greater taconite tonnage mined from Trust lands, higher net minimum royalties and an overall higher average earned royalty rate for the year-to-date. Royalties increased $13,304 during the three months ended June 30, 2009, as compared to the same period in 2008, due mainly to higher net minimum royalties, offset in part by less taconite tonnage mined from Trust lands during the quarter.

Interest and other income decreased $101,871 and $40,861 during the six months and three months ended June 30, 2009, respectively, as compared to the same periods in 2008, due mainly to reduced yields on the Trusts investments.

Costs and expenses increased $348,934 and $170,509 during the six months and three months ended June 30, 2009, respectively, as compared to the same periods in 2008, due mainly to increased pension expense and mineral land amortization.

At their meeting held on June 12, 2009, the Trustees declared a distribution of $1.80 per share, amounting to $2,700,000 payable July 31, 2009, to certificate holders of record at the close of business on June 30, 2009. The Trustees have now declared two quarterly distributions in 2009. The first, in the amount of $1.80 per share, was paid on April 30, 2009 to certificate holders of record on March 31, 2009; and the second, that being the current distribution. The first and second quarter 2008 distributions were $2.00 and $2.10 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 October 2009 to certificate holders of record on September 30, 2009.

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