-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AwXzjShMvrOQ/MbkZ+Cu1oZrT4BT/8t6NcSUOyZp9bg7RS2q+1YekxSNUZJxiBYB RM9nDDhXreVTc9cqM7vPCA== 0000912057-96-005638.txt : 19960401 0000912057-96-005638.hdr.sgml : 19960401 ACCESSION NUMBER: 0000912057-96-005638 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960229 ITEM INFORMATION: Acquisition or disposition of assets ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19960329 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: PACIFIC REAL ESTATE INVESTMENT TRUST INC CENTRAL INDEX KEY: 0000230437 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 941572930 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-08725 FILM NUMBER: 96542003 BUSINESS ADDRESS: STREET 1: 1010 EL CAMINO REAL STE 210 CITY: MENLO PARK STATE: CA ZIP: 95025 BUSINESS PHONE: 4143277147 MAIL ADDRESS: STREET 1: 1010 EL CAMINO REAL STREET 2: STE 210 CITY: MENLO PARK STATE: CA ZIP: 95025 FORMER COMPANY: FORMER CONFORMED NAME: PACIFIC REAL ESTATE INVESTMENT TRUST DATE OF NAME CHANGE: 19920703 8-K/A 1 8-K/A FORM 8-K/A SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 FEBRUARY 29, 1996 Date of Report (Date of Earliest Event Reported) PACIFIC REAL ESTATE INVESTMENT TRUST (Exact name of registrant as specified in its charter) 0-8725 CALIFORNIA 94-1572930 (Registration (State or Other (IRS Employer file Jurisdiction of Identification Number) Incorporation) Number) 1010 EL CAMINO REAL #210, MENLO PARK CA 94025 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (415) 327-7147 (800) 366-6707...Wats line for all states ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS (a) The Trust was organized to acquire, manage and ultimately sell income-producing real properties. In the course of its business, Menlo Center, located in Menlo Park, California, was sold on February 29, 1996. TERMS OF ORIGINAL ACQUISITION The Trust acquired redevelopment project over a four-year period from 1984 to 1988. The Trust acquired four adjacent parcels of land for $3,210,000 and ground leased a fifth parcel of land at an annual ground rent of approximately $75,000. The Trust's mortgage loan encumbering the property owned by the Trust was from Prudential Insurance Company for $11,000,000, secured by a first Deed of Trust on the property. TERMS OF DISPOSITION AND FINANCING Menlo Center was sold for $16,200,000. After payment of the existing first loan balance of approximately $10,730,102, estimated expense related to the sale of $550,000 the proceeds to the Trust were approximately $4,934,920. The Trust remains liable to the buyers for an annual net operating income subsidy. This subsidy represents a minimum yield to the buyers of 8.50% pa on its invested equity capital at acquisition. CARRYING AMOUNT AT DATE OF SALE At the date of sale, the carrying amount of land and improvements, depreciation and deferred financing fees for financial statement purposes was $14,617,000.
PACIFIC REAL ESTATE INVESTMENT TRUST ------------ PRO FORMA CONSOLIDATED BALANCE SHEET (UNAUDITED) DECEMBER 31,1995 ASSETS HISTORICAL PRO FORMA PRO FORMA ---------- --------- --------- ADJUSTMENTS ----------- (NOTE 1) ----------- Investment in commercial properties: Land ............................ $ 14,308,000 $ (9,707,000) $ 14,308,000 Buildings and improvements ...... 56,345,000 (21,307,000) 56,214,000 Accumulated depreciation ........ (18,375,000) 956,000 (16,040,000) ------------ ----------- ----------- Operating properties - net ...... 52,278,000 (30,058,000) 54,478,000 Mortgage notes receivable .................... 6,565,000 0 5,190,000 Tenant and other notes receivable - net ....... 246,000 0 1,596,000 Cash .......................................... 308,000 0 666,000 Restricted cash ............................... 100,000 0 100,000 Accounts receivable (net of allowance of $146,000 in 1995 and $103,000 in 1994) ........ 891,000 (90,000) 801,000 Deferred lease commissions - net .............. 742,000 200,000 542,000 Deferred financing costs - net ................ 440,000 (142,000) 298,000 Other assets .................................. 1,305,000 0 1,305,000 ----------- ----------- ---------- Total ................. $ 62,875,000 $ (14,993,000) $ 47,882,000 ----------- ----------- ---------- ----------- ----------- ---------- LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Mortgage loans .......................... $ 36,818,000 $ (10,738,000) $ 26,080,000 Short-term notes ........................ 11,190,000 500,000 10,690,000 Security deposits ....................... 231,000 (85,000) 146,000 Accounts payable and other liabilities .. 566,000 (6,000) 560,000 ----------- ----------- ----------- Total liabilities .... 48,805,000 (11,329,000) 37,476,000 ----------- ----------- ---------- Commitments and contingencies ................ Minority interest in joint venture ........... 3,321,000 0 3,321,000 Shareholders' Equity: Shares of beneficial interest, $10 par value, authorized: 1995 and 1994, 10,611,863; shares issued and outstanding: 1995 and 1994; 3,706,845 Additional paid-in capital .................. 11,009,000 0 11,009,000 Distributions in excess of net income ....... (37,328,000) (3,664,000) (40,992,000) ----------- --------- ---------- Shareholders' equity - net .................. 10,749,000 (3,664,000) 7,085,000 ----------- ---------- ---------- Total ............... $ 62,875,000 $ (14,993,000) $ 47,882,000 ---------- ---------- ---------- ---------- ---------- ----------
See note to pro forma consolidated financial statements. PACIFIC REAL ESTATE INVESTMENT TRUST -------------- PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED) FOR THE YEAR ENDED DECEMBER 31, 1995
Historical Pro Forma Pro Forma -------------- ----------- ------------- Adjustments ----------- (Note 1) ----------- Rental revenues. . . . . . . . . . . . . . . . . . . . . . . . . $ 9,183,000 $ 1,888,000 $ 7,295,000 -------------- ----------- ------------- Operating expenses (including related party amounts of $694,000, $996,000 and $391,000 in 1995, 1994 and 1993 respectively): Operating . . . . . . . . . . . . . . . . . . . . . . . . . . 2,145,000 425,000 1,720,000 Property tax. . . . . . . . . . . . . . . . . . . . . . . . . 1,194,000 157,000 1,037,000 General and administrative. . . . . . . . . . . . . . . . . . 609,000 0 609,000 Depreciation and amortization . . . . . . . . . . . . . . . . 2,886,000 607,000 2,279,000 Property management fees. . . . . . . . . . . . . . . . . . . 318,000 69,000 249,000 -------------- ----------- ------------- Total operating expenses . . . . . . . . . . . . . . . . 7,152,000 1,258,000 5,894,000 -------------- ----------- ------------- Operating income . . . . . . . . . . . . . . . . . . . . . . . . 2,031,000 603,000 1,401,000 -------------- ----------- ------------- Other income/(expense) Interest income . . . . . . . . . . . . . . . . . . . . . . . 637,000 0 637,000 Interest expense. . . . . . . . . . . . . . . . . . . . . . . (5,364,000) (1,021,000) (4,343,000) Gain (loss) on sale of options. . . . . . . . . . . . . . . . (213,000) 0 (213,000) Reincorporation expenses. . . . . . . . . . . . . . . . . . . (139,000) 0 (139,000) Property acquisition expenses . . . . . . . . . . . . . . . . (75,000) 0 (75,000) -------------- ----------- ------------- Total other income/(expense) . . . . . . . . . . . . . . (5,154,000) (1,021,000) (4,133,000) -------------- ----------- ------------- Net loss before minority interest. . . . . . . . . . . . . . . . (3,123,000) (391,000) (2,732,000) Minority interest in joint venture . . . . . . . . . . . . . . . (325,000) 0 (325,000) -------------- ----------- ------------- Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (3,448,000) $ (391,000) $ (3,057,000) -------------- ----------- ------------- -------------- ----------- -------------
See notes to consolidated financial statements. BASIS OF PRESENTATION NOTE 1. The unaudited statements present: (1) the pro forma consolidated balance sheet at December 31, 1995 as if the Trust had sold Menlo Center on that date, and (2) the pro-forma consolidated statement of operations for the year ended December 31, 1995 as if the Trust had sold Menlo Center on January 1, 1995. The unaudited statements also present the historical figures as previously reported in the appropriate Form 10-K. Accounts related to Menlo Center have been eliminated as presented by the pro forma adjustments. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (a) Financial statements. Not applicable. (b) Pro forma Financial Information. Historical financial information and pro forma financial information relating to the sale of Menlo Center will be included within 30 days of this Form 8-K. (c) Exhibits. Upon their receipt the Trust will amend its Form 8-K to include the disposition documents for Menlo Center. /s/ Wilcox Patterson 3/25/96 ------------------------ -------------- Wilcox Patterson Date /s/ Robert Ch. Gould 3/25/96 ------------------------ -------------- Robert Ch. Gould Date /s/ Harry E. Kellogg 3/25/96 ------------------------ -------------- Harry E. Kellogg Date -----END PRIVACY-ENHANCED MESSAGE-----