-----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, VLy+QFJcx+BTKr+gXwHmg6jSrIzaY+3fShhqD4yt4bVFFVJEY1Jwkm/Sxn0hostK g8hs4PL+UQzYogM2U9MLHg== 0000950134-96-005398.txt : 19961016 0000950134-96-005398.hdr.sgml : 19961016 ACCESSION NUMBER: 0000950134-96-005398 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960927 ITEM INFORMATION: Acquisition or disposition of assets ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19961015 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: NATIONAL INCOME REALTY TRUST CENTRAL INDEX KEY: 0000277577 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 942537061 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-09211 FILM NUMBER: 96643481 BUSINESS ADDRESS: STREET 1: 3878 OAK LAWN AVE STREET 2: SUITE 300 CITY: DALLAS STATE: TX ZIP: 75219 BUSINESS PHONE: 2146924700 MAIL ADDRESS: STREET 1: 3878 OAK LAWN AVE STREET 2: STE 300 CITY: DALLAS STATE: TX ZIP: 75219 FORMER COMPANY: FORMER CONFORMED NAME: CONSOLIDATED CAPITAL INCOME TRUST DATE OF NAME CHANGE: 19890726 8-K 1 FROM 8-K DATED SEPTEMBER 27, 1996 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 September 27, 1996 Date of Report (Date of earliest event reported) . . . . . . . . . . . . . . . NATIONAL INCOME REALTY TRUST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (Exact name of registrant as specified in its charter) California 0-9211 94-2537061 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File No.) Identification No.) 280 Park Avenue, East Building, 20th Floor, New York, NY 10017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (Address of principal executive offices) (Zip Code) (212) 949-5000 Registrant's telephone number, including area code . . . . . . . . . . . . . . Not Applicable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (Former name or former address, if changed since last report) 1 2 ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS On August 27, 1996, National Income Realty Trust (the "Trust") entered into a Purchase and Sale Agreement with Massachusetts Mutual Life Insurance Company, a major east coast life insurance company not affiliated with the Trust or any of its officers or trustees, pursuant to which the Trust agreed to sell Century Centre II (the "Property"), a fully leased 171,000 square foot office building located in San Mateo, California, for $28.2 million. The carrying value of the Property, which was subject to a $21.0 million first lien mortgage loan, exceeded 10% of the Trust's total assets. The sale closed on September 27, 1996, with the Trust receiving net cash proceeds of $6.2 million after the payoff of the $21.0 million mortgage loan and funding closing costs and prorations. As a result of the disposition, the Trust recorded a gain of $3.7 million. ITEM 5. OTHER EVENTS At its September 1996 meeting, the Board of Trustees authorized the Trust to repurchase up to 150,000 additional shares of its beneficial interest. In May 1994, the Board of Trustees had authorized the Trust to repurchase up to 300,000 additional shares of beneficial interest, of which 294,702 had been purchased through October 2, 1996. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (b) Pro forma financial information: Pro forma statements of operations are presented for the year ended December 31, 1995, and the six months ended June 30, 1996. A pro forma balance sheet as of June 30, 1996, is also presented. The pro forma statements of operations present the Trust's operations as if the transaction described in Item 2. had occurred at the beginning of each of the periods presented. Pro forma adjustments related to the pro forma balance sheet have been computed assuming the transaction was consummated on June 30, 1996. 2 3 NATIONAL INCOME REALTY TRUST PRO FORMA CONSOLIDATED BALANCE SHEET JUNE 30, 1996 (Unaudited)
Sale of Century Actual Centre II (1) Pro forma --------------- --------------- -------------- (dollars in thousands) Assets ------ Real estate Held for investment, net of accumulated depreciation . . . $ 176,891 $ - $ 176,891 Held for sale, net of accumulated depreciation . . . 35,447 (23,191) 12,256 --------------- ---------------- -------------- 212,338 (23,191) 189,147 Notes and interest receivable Performing . . . . . . . . . . . 2,700 - 2,700 Nonperforming, nonaccruing . . . 977 - 977 --------------- ---------------- -------------- 3,677 - 3,677 Less - allowance for estimated losses . . . . . . . . . . . . . (3,274) - (3,274) ---------------- ---------------- -------------- 403 - 403 Investments in partnerships . . . . . 4,245 - 4,245 Cash and cash equivalents . . . . . . 1,315 6,156 7,471 Restricted cash . . . . . . . . . . . 5,760 - 5,760 Other assets . . . . . . . . . . . . 5,308 (683) 4,625 --------------- ---------------- -------------- $ 229,369 $ (17,718) $ 211,651 =============== ================ ==============
- ------------------------- (1) Assumes the Trust sold Century Centre II on June 30, 1996. 3 4 NATIONAL INCOME REALTY TRUST PRO FORMA CONSOLIDATED BALANCE SHEET (Continued) JUNE 30, 1996 (Unaudited)
Sale of Century Actual Centre II (1) Pro forma ------------- ------------- ------------- (dollars in thousands) Liabilities and Shareholders' Equity - ------------------------------------ Liabilities Notes, debentures, and interest payable . . . . . . . . . . . . $ 151,578 $ (21,004) $ 130,574 Other liabilities . . . . . . . . . . 7,727 (349) 7,378 ------------- ------------- ------------- 159,305 (21,353) 137,952 Commitments and contingencies . . . . Shareholders' equity Shares of beneficial interest, no par value; authorized shares, unlimited; issued and outstanding, 3,448,286 shares (after deducting 487,912 shares held in treasury) . . . . . . . . . . . 10,354 - 10,354 Paid-in capital . . . . . . . . . . . 277,071 - 277,071 Accumulated distributions in excess of accumulated earnings . . . . . (217,361) 3,635 (213,726) ------------- ------------- ------------- 70,064 3,635 73,699 ------------- ------------- ------------- $ 229,369 $ (17,718) $ 211,651 ============= ============= =============
- ------------------------- (1) Assumes the Trust sold Century Centre II on June 30, 1996. 4 5 NATIONAL INCOME REALTY TRUST PRO FORMA STATEMENT OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1996 (Unaudited)
Century Actual Centre II (1) Pro forma ------------- --------------- -------------- (dollars in thousands, except per share data) Income Rentals . . . . . . . . . . . . . $ 23,713 $ (1,628) $ 22,085 Interest . . . . . . . . . . . . . 360 - 360 Equity in income of partnerships 1,180 - 1,180 ------------- -------------- -------------- 25,253 (1,628) 23,625 Expenses Property operations . . . . . . . . 13,813 (757) 13,056 Interest . . . . . . . . . . . . . 6,322 (753) 5,569 Depreciation . . . . . . . . . . . 2,643 - 2,643 Advisory fees to affiliate . . . . 536 - 536 General and administrative . . . . 1,066 - 1,066 ------------- -------------- -------------- 24,380 (1,510) 22,870 ------------- -------------- -------------- Income before gains on sale of real estate and insurance settlement . . . . . . . . . . . . 873 (118) 755 Gain on sale of real estate . . . . . 11 - 11 Gain on insurance settlement . . . . 451 - 451 ------------- -------------- -------------- Net income . . . . . . . . . . . . . $ 1,335 $ (118) $ 1,217 ============= ============== ============== Earnings per share Net income . . . . . . . . . . . . . $ .39 $ .35 ============= ============== Weighted average shares of beneficial interest used in computing earnings per share . . . 3,440,058 3,440,058 ============= ==============
- ------------------------- (1) Assumes the Trust sold Century Centre II on January 1, 1996, and accordingly represents operations for the property for the six months ended June 30, 1996. 5 6 NATIONAL INCOME REALTY TRUST PRO FORMA STATEMENT OF OPERATIONS YEAR ENDED DECEMBER 31, 1995
Century Actual Centre II (1) Pro forma -------------- ------------- --------------- (audited) (unaudited) (unaudited) (dollars in thousands, except per share data) Income Rentals . . . . . . . . . . . . . $ 43,381 $ (3,048) $ 40,333 Interest . . . . . . . . . . . . . 1,089 - 1,089 Equity in income of partnerships . 770 - 770 -------------- ----------- --------------- 45,240 (3,048) 42,192 Expenses Property operations . . . . . . . 25,279 (1,402) 23,877 Interest . . . . . . . . . . . . . 12,306 (1,638) 10,668 Depreciation . . . . . . . . . . . 5,959 (802) 5,157 Advisory fees to affiliate . . . . 1,037 - 1,037 General and administrative . . . . 2,058 - 2,058 Provision for losses . . . . . . . (425) - (425) -------------- ----------- --------------- 46,214 (3,842) 42,372 -------------- ----------- --------------- (Loss) before gains on sales of real estate and investments and extraordinary gain . . . . . . . . (974) 794 (180) Gain on sale of real estate . . . . . 533 - 533 Gain on sale of investments . . . . . 412 - 412 -------------- ----------- --------------- (Loss) income from continuing operations . . . . . . . . . . . . $ (29) $ 794 $ 765 ============== =========== =============== Earnings per share (Loss) income from continuing operations . . . . . . . . . . . . $ - .22 ============== =============== Weighted average shares of beneficial interest used in computing earnings per share . . . 3,439,191 3,439,191 ============== ===============
- ------------------------- (1) Assumes the Trust sold Century Centre II on January 1, 1995, and accordingly represents operations for the property for the year ended December 31, 1995. 6 7 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. NATIONAL INCOME REALTY TRUST By:/s/ Robert C. Irvine ------------------------- Robert C. Irvine Chief Financial Officer DATED: October 15, 1996 7 -----END PRIVACY-ENHANCED MESSAGE-----