-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, nxqcBp3WgUQ/vtRtLCn0GAQ45M99Xl/iMDGdpXpF7oOnKM0Ic+ThN1d8l5HHc0b1 m9HUqd3Y2o2B98atn8vq/g== 0000928790-95-000046.txt : 19950530 0000928790-95-000046.hdr.sgml : 19950530 ACCESSION NUMBER: 0000928790-95-000046 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950515 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: HUTTON CONAM REALTY INVESTORS 81 CENTRAL INDEX KEY: 0000350023 STANDARD INDUSTRIAL CLASSIFICATION: 6500 IRS NUMBER: 133069026 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-10223 FILM NUMBER: 95538744 BUSINESS ADDRESS: STREET 1: 388 GREENWICH ST CITY: NEW YORK STATE: NY ZIP: 10013 BUSINESS PHONE: 2125263237 MAIL ADDRESS: STREET 1: 3 WORLD FINANCIAL CENTER STREET 2: 29TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10285 FORMER COMPANY: FORMER CONFORMED NAME: HUTTON CONAM PROPERTIES 81 DATE OF NAME CHANGE: 19810616 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1995 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 0-10223 HUTTON/CONAM REALTY INVESTORS 81 (Exact name of registrant as specified in its charter) California 13-3069026 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 3 World Financial Center, 29th Floor, New York, NY 10285 (Address of principal executive offices) (Zip Code) (212) 526-3237 (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No Consolidated Balance Sheets March 31, December 31, Assets 1995 1994 Investments in real estate: Land $ 5,255,820 $ 5,255,820 Buildings and improvements 28,473,477 28,473,477 33,729,297 33,729,297 Less- accumulated depreciation (14,160,285) (13,875,550) 19,569,012 19,853,747 Cash and cash equivalents 1,679,180 1,535,391 Restricted cash 671,166 659,076 Mortgage fees, net of accumulated amortization of $224,611 in 1995 and $202,797 in 1994 386,200 408,014 Other assets 25,658 41,055 Total Assets $ 22,331,216 $ 22,497,283 Liabilities and Partners' Capital Liabilities: Mortgages payable $ 15,565,367 $ 15,601,031 Distribution payable 173,978 173,978 Accounts payable and accrued expenses 260,095 183,869 Security deposits 134,180 141,408 Due to general partners and affiliates 32,596 44,814 Total Liabilities 16,166,216 16,145,100 Partners' Capital (Deficit): General Partners (1,334,445) (1,316,915) Limited Partners 7,499,445 7,669,098 Total Partners' Capital 6,165,000 6,352,183 Total Liabilities and Partners' Capital $ 22,331,216 $ 22,497,283 Consolidated Statement of Partners' Capital (Deficit) For the three months ended March 31, 1995 General Limited Partners Partners Total Balance at January 1, 1995 $ (1,316,915) $ 7,669,098 $ 6,352,183 Net loss (132) (13,073) (13,205) Cash distributions (17,398) (156,580) (173,978) Balance at March 31, 1995 $ (1,334,445) $ 7,499,445 $ 6,165,000 See accompanying notes to the consolidated financial statements Consolidated Statements of Operations For the three months ended March 31, 1995 and 1994 Income 1995 1994 Rental $ 1,228,790 $ 1,162,104 Interest 23,807 11,407 Total Income 1,252,597 1,173,511 Expenses Property operating 590,414 546,039 Interest 330,067 332,953 Depreciation and amortization 306,549 306,796 General and administrative 38,772 46,252 Total Expenses 1,265,802 1,232,040 Net Loss $ (13,205) $ (58,529) Net Loss Allocated: To the General Partners $ (132) $ (585) To the Limited Partners (13,073) (57,944) $ (13,205) $ (58,529) Per limited partnership unit (78,290 outstanding) $ (.17) $ (.74) See accompanying notes to the consolidated financial statements Consolidated Statements of Cash Flows For the three months ended March 31, 1995 and 1994 Cash Flows from Operating Activities: 1995 1994 Net loss $ (13,205) $ (58,529) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 306,549 306,796 Increase (decrease) in cash arising from changes in operating assets and liabilities: Fundings to restricted cash (161,509) (149,609) Release of restricted cash to property operations 149,419 133,694 Other assets 15,397 14,041 Accounts payable and accrued expenses 76,226 (7,341) Security deposits (7,228) (4,921) Due to general partners and affiliates (12,218) (2,950) Net cash provided by operating activities 353,431 231,181 Cash Flows from Financing Activities: Distributions (173,978) (173,978) Mortgage principal payments (35,664) (32,778) Net cash used for financing activities (209,642) (206,756) Net increase in cash and cash equivalents 143,789 24,425 Cash and cash equivalents at beginning of period 1,535,391 1,418,054 Cash and cash equivalents at end of period $ 1,679,180 $ 1,442,479 Supplemental Disclosure of Cash Flow Information: Cash paid during the period for interest $ 330,067 $ 332,953 See accompanying notes to the consolidated financial statements Notes to the Consolidated Financial Statements The unaudited interim financial statements should be read in conjunction with the Partnership's annual 1994 financial statements within Form 10-K. The unaudited financial statements include all adjustments which are, in the opinion of management, necessary to present a fair statement of financial position as of March 31, 1995 and the results of operations and cash flows for the three months ended March 31, 1995 and 1994 and the statement of changes in partners' capital (deficit) for the three months ended March 31, 1995. Results of operations for the periods are not necessarily indicative of the results to be expected for the full year. No significant events have occurred subsequent to fiscal year 1994, which require disclosure in this interim report per Regulation S-X, Rule 10-01, Paragraph (a)(5). Part 1, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources At March 31, 1995, the Partnership had cash and cash equivalents of $1,679,180, which were invested in unaffiliated money market funds. The $143,789 increase in the cash balance from December 31, 1994 was the result of the Partnership's generating cash flow from operations in excess of cash distributions and mortgage principal payments. The Partnership also maintains a restricted cash balance, which totaled $671,166 at March 31, 1995, composed of escrows required by the lender for property improvements, real estate taxes, and insurance. Pursuant to the terms of the loans, as costs are incurred for property improvements or when real estate taxes and insurance are due, reimbursements are made from the escrow accounts maintained by the lender to the Partnership. The General Partners expect sufficient cash to be generated from operations to meet the Partnership's current operating expenses and debt service requirements. Accounts payable and accrued expenses were $260,095 at March 31, 1995 compared to $183,869 at December 31, 1994. The increase is primarily due to the accrual of first quarter real estate taxes. The General Partners have been in extensive negotiations with an institutional buyer to sell Kingston Village and Cedar Bay Village. The General Partners expect to execute a sales contract in the very near future with the objective of closing the sale early in the third quarter. However, there can be no assurance that the sale will be completed or that any particular price for the properties can be obtained. In the event that a sale is completed, the General Partners intend to distribute the net proceeds following a review of the Partnership's cash reserve requirements. The General Partners declared a cash distribution of $2.00 per Unit for the quarter ended March 31, 1995, paid to investors on May 16, 1995. Cumulative cash distributions have totaled $371.15 per $500 Unit including $200 per Unit in return of capital payments. The level and timing of future distributions will be reviewed on a quarterly basis by the General Partners. Results of Operations Partnership operations for the three months ended March 31, 1995 resulted in a net loss of $13,205 compared with a net loss of $58,529 for the three months ended March 31, 1994. After adding back depreciation and amortization, both noncash expenses, and subtracting mortgage amortization, operations generated cash flow of $257,680 for the three months ended March 31, 1995, compared with cash flow of $215,489 for the corresponding period in 1994. The decrease in net loss and higher cash flow in 1995 is primarily attributable to an increase in rental income. Rental income for the three months ended March 31, 1995 and 1994, was $1,228,790 and $1,162,104, respectively. The 6% increase in 1995 reflects higher rental income at all the Partnership's properties, particularly at the Las Colinas property, due primarily to rental rate increases implemented over the past year. Interest income totaled $23,807 and $11,407 for the three months ended March 31, 1995 and 1994, respectively. The increase was due to the Partnership's higher cash balance and higher interest rates in 1995. Total expenses for the three months ended March 31, 1995 and 1994 were $1,265,802 and $1,232,040, respectively. Property operating expenses increased from $546,039 in 1994 to $590,414 in 1995, reflecting higher repair and maintenance and rental administrative expenses primarily at the Las Colinas property. All other expense components remained in line with 1994 levels. The average occupancy levels at each of the Properties for the three months ended March 31, 1995 and 1994 were as follows: Three Months Ended March 31, Property 1995 1994 Las Colinas I & II 96% 97% Tierra Catalina 95% 97% Ridge Park 93% 94% Kingston Village 97% 96% Cedar Bay Village 98% 91% PART II OTHER INFORMATION Items 1-5 Not applicable Item 6 Exhibits and reports on Form 8-K. (a) Exhibits - None (b) Reports on Form 8-K - No reports on Form 8-K were filed during the three month period covered by this report. SIGNATURES 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, thereunto duly authorized. HUTTON/CONAM REALTY INVESTORS 81 BY: RI81 REAL ESTATE SERVICES INC. General Partner Date: May 12, 1995 BY: /s/Paul L. Abbott Name: Paul L. Abbott Title: Director, President, Chief Executive Officer and Chief Financial Officer EX-27 2 RI81 FINANCIAL DATA SCHEDULE FOR 1Q'95 10-Q
5 3-MOS DEC-31-1995 MAR-31-1995 2,350,346 000 000 000 000 000 33,729,297 14,160,285 22,331,216 000 15,565,367 000 000 000 6,165,000 22,331,216 000 1,252,597 000 590,414 345,321 000 330,067 000 000 000 000 000 000 (13,205) (.17) (.17)
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