-----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, KHGykNdqIx73JIGXsB3QI/4LADFyDMwsTJEFiFyIe3DlDfdVOXFEhONUPX4dlvY1 8HrKyRXOqA9usTOalx532g== 0001047469-98-028788.txt : 19980803 0001047469-98-028788.hdr.sgml : 19980803 ACCESSION NUMBER: 0001047469-98-028788 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980630 FILED AS OF DATE: 19980730 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CONAM REALTY INVESTORS 81 L P CENTRAL INDEX KEY: 0000350023 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 133069026 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-10223 FILM NUMBER: 98674093 BUSINESS ADDRESS: STREET 1: 1764 SAN DIEGO AVE CITY: SAN DIEGO STATE: CA ZIP: 92110 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 REALTY INVESTORS 81 DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: HUTTON CONAM PROPERTIES 81 DATE OF NAME CHANGE: 19810616 10-Q 1 COVER United States Securities and Exchange Commission Washington, D.C. 20549 FORM 10-Q (Mark One) Quarterly Report Pursuant to Section 13 or 15(d) of the X Securities Exchange Act of 1934 - ---------- FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1998 or - ---------- Transition Report Pursuant to Section 13 of 15(d) of the Securities Exchange Act of 1934 For the transition period from ____ to ____ COMMISSION FILE NUMBER: 0-10223 CONAM REALTY INVESTORS 81 L.P. ---------------------------------------------------- EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER CALIFORNIA 13-3069026 ---------- ---------- STATE OR OTHER JURISDICTION OF I.R.S. INCORPORATION OR ORGANIZATION EMPLOYER IDENTIFICATION NO. 1764 San Diego Avenue San Diego, CA Attn. Robert J. Svatos 92110-1906 ------------------------------------- ---------- ADDRESS OF PRINCIPAL EXECUTIVE OFFICES ZIP CODE (619)-297-6771 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 ------ ------ CONAM REALTY INVESTORS 81 L.P. AND CONSOLIDATED VENTURES
CONSOLIDATED BALANCE SHEETS AT JUNE 30, AT DECEMBER 31, 1998 1997 - ----------------------------------------------------------------------------- ASSETS Investments in real estate: Land $ 3,630,176 $ 3,630,176 Buildings and improvements 17,977,572 17,975,266 -------------------------- 21,607,748 21,605,442 Less accumulated depreciation (11,379,848) (11,022,393) -------------------------- 10,227,900 10,583,049 Cash and cash equivalents 1,590,508 1,388,845 Restricted cash 369,012 430,849 Mortgage fees, net of accumulated amortization of $296,288 in 1998 and $270,880 in 1997 83,429 84,837 Other assets 32,789 7,162 - ----------------------------------------------------------------------------- TOTAL ASSETS $ 12,303,638 $ 12,494,742 - ----------------------------------------------------------------------------- - ----------------------------------------------------------------------------- LIABILITIES AND PARTNERS' CAPITAL Liabilities: Mortgages payable 9,780,378 9,830,261 Distribution payable 173,978 160,929 Accounts payable and accrued expenses 200,310 202,484 Due to general partner and affiliates 14,083 13,797 Interest payable 69,278 - Security deposits 71,283 78,834 -------------------------- Total Liabilities 10,309,310 10,286,305 -------------------------- Partners' Capital (Deficit): General Partner (287,126) (265,715) Limited Partners (78,290 Units outstanding) 2,281,454 2,474,152 -------------------------- Total Partners' Capital 1,994,328 2,208,437 - ----------------------------------------------------------------------------- TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 12,303,638 $ 12,494,742 - ----------------------------------------------------------------------------- - -----------------------------------------------------------------------------
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, 1998 1997 1998 1997 - ------------------------------------------------------------------------------------ INCOME Rental $ 845,161 $ 773,527 $ 1,694,013 $ 1,577,737 Interest and other 18,711 20,550 30,336 57,973 ------------------------------------------------------ Total Income 863,872 794,077 1,724,349 1,635,710 - ------------------------------------------------------------------------------------ EXPENSES Property operating 352,669 398,412 699,635 708,858 Depreciation and amortization 192,457 192,457 384,913 384,913 Interest 208,047 210,513 416,731 421,610 General and administrative 46,287 45,621 87,331 95,258 Write-off of assets 1,892 - 1,892 - ------------------------------------------------------ Total Expenses 801,352 847,003 1,590,502 1,610,639 - ------------------------------------------------------------------------------------ NET INCOME (LOSS) $ 62,520 $ (52,926) $ 133,847 $ 25,071 - ------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------ NET INCOME (LOSS) ALLOCATED: To the General Partner $ (4,013) $ (529) $ 13,385 $ 32,186 To the Limited Partners 66,533 (52,397) 120,462 (7,115) ------------------------------------------------------ NET INCOME (LOSS) $ 62,520 $ (52,926) $ 133,847 $ 25,071 - ------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------ PER LIMITED PARTNERSHIP UNIT (78,290 UNITS OUTSTANDING) NET INCOME (LOSS) $ 0.85 $ (0.67) $ 1.54 $ (0.09) - ------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL FOR THE SIX MONTHS ENDED JUNE 30, 1998
GENERAL LIMITED PARTNER PARTNERS TOTAL - ------------------------------------------------------------------------------------ BALANCE (DEFICIT) AT DECEMBER 31, 1997 $ (265,715) $ 2,474,152 $ 2,208,437 Net income 13,385 120,462 133,847 Distributions ($4.00 per Unit) (34,796) (313,160) (347,956) - ------------------------------------------------------------------------------------ BALANCE (DEFICIT) AT JUNE 30, 1998 $ (287,126) $ 2,281,454 $ 1,994,328 - ------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 1998 1997 - -------------------------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 133,847 $ 25,071 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 384,913 384,913 Write-off of assets 1,892 - Increase (decrease) in cash arising from changes in operating assets and liabilities: Fundings to restricted cash (125,529) (198,283) Release of restricted cash 187,366 174,888 Mortgage fees (24,000) - Other assets (25,627) (6,788) Accounts payable and accrued expenses (2,174) 1,190 Interest payable 69,278 - Due to general partner and affiliates 286 (317) Security deposits (7,551) 4,229 ------------------------- Net cash provided by operating activities 592,701 384,903 - -------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES- Additions to real estate (6,248) - - -------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES: Distributions (334,907) (1,639,740) Mortgage principal payments (49,883) (55,194) ------------------------- Net cash used for financing activities (384,790) (1,694,934) - -------------------------------------------------------------------------------- Net increase (decrease) in cash and cash equivalents 201,663 (1,310,031) Cash and cash equivalents, beginning of period 1,388,845 2,741,077 - -------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS, END OF PERIOD $1,590,508 $ 1,431,046 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION- Cash paid during the period for interest $ 347,453 $ 421,610 - -------------------------------------------------------------------------------- SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING ACTIVITIES: Write-off of buildings and improvements $ (3,942) $ - Write-off of accumulated depreciation $ 2,050 $ - - --------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. CONAM REALTY INVESTORS 81 L.P. AND CONSOLIDATED VENTURES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS The unaudited interim consolidated financial statements should be read in conjunction with the Partnership's annual 1997 audited consolidated financial statements within Form 10-K. The unaudited interim consolidated financial statements include all normal and recurring adjustments which are, in the opinion of management, necessary to present a fair statement of financial position as of June 30, 1998 and the results of operations and cash flows for the three and six months ended June 30, 1998 and 1997 and the consolidated statement of partners' capital for the six months ended June 30, 1998. Results of operations are not necessarily indicative of the results to be expected for the full year. No significant events have occurred subsequent to the year ended December 31, 1997, and no material contingencies exist, which would require disclosure in this interim report per Regulation S-X, Rule 10-01, Paragraph (a)(5). CONAM REALTY INVESTORS 81 L.P. AND CONSOLIDATED VENTURES PART I, ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS LIQUIDITY AND CAPITAL RESOURCES At June 30, 1998, the Partnership had cash and cash equivalents of $1,590,508 which were invested in unaffiliated money market funds, compared with $1,388,845 at December 31, 1997. The increase reflects the excess of cash provided from operations net of distributions and mortgage principal payments. The Partnership's restricted cash balance totaled $369,012 at June 30, 1998 compared to $430,849 at December 31, 1997. The decrease is primarily attributable to the net effect of contributions to an escrow account less payments made from that escrow account for the purpose of funding insurance, real estate taxes, and property replacements and repairs as required under the terms of the current mortgage loans. The General Partner declared a regular cash distribution of $2.00 per Unit for the quarter ended June 30, 1998 which is to be paid in August, 1998. The General Partner will determine the amount of future quarterly distributions based on the Partnership's available cash flow and future cash needs. RESULTS OF OPERATIONS Partnership operations for the three and six months ended June 30, 1998 generated net income of $62,520 and $133,847, respectively, compared with a net loss of $(52,926) and net income of $25,071, respectively, for the corresponding periods in 1997. The increase for the three and six month periods is primarily attributable to an increase in rental revenue and a decrease in property operating and general and administrative expenses. Rental income totaled $845,161 and $1,694,013 for the three and six months ended June 30, 1998 compared with $773,527 and $1,577,737, respectively, for the corresponding periods in 1997. The increase is due to higher overall occupancy levels at both properties and increased rents at Las Colinas Apartments I & II. Interest and other income totaled $18,711 and $30,336, respectively, for the three and six months ended June 30, 1998 compared with $20,550 and $57,973 for the corresponding periods in 1997. The decrease for the three and six month periods ended June 30, 1998 is primarily due to lower average cash balances than the corresponding period in 1997 which included the proceeds from the sale of Ridge Park prior to their distribution. Property operating expenses for the three and six months ended June 30, 1998 totaled $352,669 and $699,635, respectively, compared with $398,412 and $708,858, respectively, for the corresponding periods in 1997. The decrease is primarily attributable to lower repair and maintenance expenses partially offset by higher utilities expenses. During the first six months of 1998 and 1997, average occupancy levels at the Partnership's properties were as follows:
PROPERTY 1998 1997 ------------------------------------------------- Las Colinas Apartments I & II 97% 96% Tierra Catalina Apartments 96% 89% -------------------------------------------------
CONAM REALTY INVESTORS 81 L.P. AND CONSOLIDATED VENTURES PART II OTHER INFORMATION ITEMS 1-5 Not applicable ITEMS 6 Exhibits and reports on Form 8-K (a) Exhibits - (27) Financial Data Schedule (b) Reports on Form 8-K - No reports on Form 8-K were filed during the quarter ended June 30, 1998. 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 hereunto duly authorized. CONAM PROPERTY SERVICES, LTD. General Partner of ConAm Realty Investors 81 L.P. BY: CONTINENTAL AMERICAN DEVELOPMENT, INC. GENERAL PARTNER Date: July 30, 1998 BY: /s/ DANIEL J. EPSTEIN ---------------------------------------- Daniel J. Epstein Director, President, and Principal Executive Officer Date: July 30, 1998 BY: /s/ ROBERT J. SVATOS ---------------------------------------- Robert J. Svatos Vice President and Director EX-27 2 EXHIBIT 27
5 6-MOS DEC-31-1998 JUN-30-1998 1,959,520 0 0 0 0 0 21,607,748 11,379,848 12,303,638 528,932 9,780,378 0 0 0 1,994,328 12,303,638 1,694,013 1,724,349 0 699,635 474,136 0 416,731 133,847 0 0 0 0 0 133,847 1.54 1.54
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