-----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, QPvbWP3Z0jGMpryIozxIit1NxphNB4sJOAmFYinTR4Tw0816PmWao7D4Lzc0Xy2K K3TIEtUMlxFxhHe5xq4O0g== 0001047469-99-020498.txt : 19990517 0001047469-99-020498.hdr.sgml : 19990517 ACCESSION NUMBER: 0001047469-99-020498 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990331 FILED AS OF DATE: 19990514 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: 99622602 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 FORM 10-Q 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, 1999 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. EMPLOYER IDENTIFICATION NO. INCORPORATION OR ORGANIZATION 1764 San Diego Avenue San Diego, CA 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 PART 1 - FINANCIAL INFORMATION ITEM 1 Financial Statements
---------------------------------------------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEETS AT MARCH 31, AT DECEMBER 31, 1999 1998 ---------------------------------------------------------------------------------------------------------------------- ASSETS Investments in real estate: Land $ - $ 3,630,175 Buildings and improvements - 17,984,707 ------------------------------------------- - 21,614,882 Less accumulated depreciation - (11,739,275) ------------------------------------------- - 9,875,607 Cash and cash equivalents 502,314 1,578,924 Restricted cash - 410,262 Mortgage fees, net of accumulated amortization of $0 in 1999 and $321,697 in 1998 - 34,020 Other assets 15,023 158,544 ---------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $ 517,337 $ 12,057,357 ---------------------------------------------------------------------------------------------------------------------- ---------------------------------------------------------------------------------------------------------------------- LIABILITIES AND PARTNERS' CAPITAL Liabilities: Mortgages payable $ - $ 9,718,148 Accounts payable and accrued expenses 110,559 307,101 Due to general partner and affiliates - 14,966 Interest payable - 68,837 Security deposits - 68,378 ------------------------------------------- Total Liabilities 110,559 10,177,430 ------------------------------------------- Partners' Capital (Deficit): General Partner (162,873) (298,566) Limited Partners (78,290 Units outstanding) 569,651 2,178,493 ------------------------------------------- Total Partners' Capital 406,778 1,879,927 ---------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 517,337 $ 12,057,357 ---------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
----------------------------------------------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 1999 1998 ----------------------------------------------------------------------------------------------------------------------- INCOME Rental $ 265,290 $ 848,852 Interest and other 63,746 11,625 -------------------------------------------- Total Income 329,036 860,477 ----------------------------------------------------------------------------------------------------------------------- EXPENSES Property operating 174,764 346,966 Depreciation and amortization 32,070 192,457 Interest 61,890 208,684 General and administrative 32,137 41,043 -------------------------------------------- Total Expenses 300,861 789,150 ----------------------------------------------------------------------------------------------------------------------- Income from operations 28,175 71,327 Gain on sale of properties 12,274,841 - ----------------------------------------------------------------------------------------------------------------------- Income before extraordinary items 12,303,016 71,327 Extraordinary loss from debt extinguishment (129,068) - ----------------------------------------------------------------------------------------------------------------------- NET INCOME $ 12,173,948 $ 71,327 ----------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------- NET INCOME ALLOCATED: To the General Partner $ 277,765 $ 17,398 To the Limited Partners 11,896,183 53,929 ----------------------------------------------------------------------------------------------------------------------- NET INCOME $ 12,173,948 $ 71,327 ----------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------- PER LIMITED PARTNERSHIP UNIT (78,290 UNITS OUTSTANDING) Income from operations $ (0.33) $ 0.69 Extraordinary loss from debt extinguishment (1.65) - Gain on sale of properties 153.27 - ----------------------------------------------------------------------------------------------------------------------- NET INCOME $ 151.29 $ 0.69 ----------------------------------------------------------------------------------------------------------------------- -----------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------ CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL FOR THE THREE MONTHS ENDED MARCH 31, 1999 GENERAL LIMITED PARTNER PARTNERS TOTAL ------------------------------------------------------------------------------------------------------------------ BALANCE (DEFICIT) AT DECEMBER 31, 1998 $ (298,566) $ 2,178,493 $ 1,879,927 Net income 277,765 11,896,183 12,173,948 Distributions ($172.50 per Unit) (142,072) (13,505,025) (13,647,097) ------------------------------------------------------------------------------------------------------------------ BALANCE (DEFICIT) AT MARCH 31, 1999 $ (162,873) $ 569,651 $ 406,778 ------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.
------------------------------------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 1999 1998 ------------------------------------------------------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 12,173,948 $ 71,327 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 32,070 192,456 Gain on sale of properties (12,274,841) - Extraordinary loss from debt extinguishment 129,068 - Increase (decrease) in cash arising from changes in operating assets and liabilities: Fundings to restricted cash - (29,817) Release of restricted cash 410,262 7,329 Other assets 143,521 (7,940) Accounts payable and accrued expenses (196,542) 56,762 Due to general partner and affiliates (14,966) 680 Interest payable (68,837) 69,491 Security deposits (68,378) (2,178) ------------------------------------------- Net cash provided by operating activities 265,305 358,110 ------------------------------------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES: Additions to real estate (12,032) - Net proceeds from sale of properties 22,035,362 - ------------------------------------------- Net cash provided by investing activities 22,023,330 - ------------------------------------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES: Distributions (13,647,097) (160,929) Mortgage principal payments (9,718,148) (19,742) ------------------------------------------- Net cash used in financing activities (23,365,245) (180,671) ------------------------------------------------------------------------------------------------------------- Net increase (decrease) in cash and cash equivalents (1,076,610) 177,439 Cash and cash equivalents, beginning of period 1,578,924 1,388,845 ------------------------------------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 502,314 $ 1,566,284 ------------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------------- SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION- Cash paid during the period for interest $ 130,727 $ 139,193 -------------------------------------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS The unaudited interim consolidated financial statements should be read in conjunction with the Partnership's annual 1998 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 March 31, 1999 and the results of operations and cash flows for the three months ended March 31, 1999 and 1998 and the consolidated statement of partners' capital for the three months ended March 31, 1999. Results of operations are not necessarily indicative of the results to be expected for the full year. The Partnership sold its remaining investments in real estate. The sale and liquidation plan was approved by the Unitholders through a consent solicitation statement as of January 15, 1999 and the sale of the properties was completed on January 29, 1999. For assets sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in net income for the period. Within 30 days of the completion of the sale of the properties, the Partnership declared a cash distribution representing substantially all of the net proceeds from sale and substantially all of the remaining cash from operations of the Partnership less an amount for costs and contingencies associated with the sale and liquidation of the Partnership. No other significant events have occurred subsequent to fiscal year 1998, 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 ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations LIQUIDITY AND CAPITAL RESOURCES On February 26, 1999, the Partnership declared cash distributions in the amounts of $13,505,025 to the Limited Partner Unitholders ($72.50 per Unit) and $142,072 to the General Partner, which amounts represent substantially all of the net proceeds from the sale (the "Sale" ) of the Partnership's remaining investments in real estate ("Properties") together with other available cash from operations of the Partnership less an amount for costs associated with the liquidation of the Partnership and other contingencies. As a result of the Sale of the remaining Properties, the only source of revenue prior to final liquidation will be the interest generated on the remaining cash balances. The remaining cash is invested in an unaffiliated highly liquid money market fund. At March 31, 1999, the Partnership had cash and cash equivalents of $502,314 compared with $1,578,924 at December 31, 1998. The decrease in cash and cash equivalents is due to the distribution of the proceeds from the Sale and cash from operations. The General Partner believes that the Partnership has sufficient cash to meet the needs of the Partnership for any contingencies or costs associated with Sale and the final liquidation of the Partnership. As required by the Partnership agreement, upon the final liquidation of the Partnership, the general partner will contribute $201,260 to the Partnership, which represents distributions of net proceeds from sale or refinancing previously received by the general partner. Remaining cash available, if any, after the contribution of the general partner and the satisfaction of all Partnership obligations, will be distributed pursuant to the Partnership agreement. RESULTS OF OPERATIONS Partnership net income for the three months ended March 31, 1999 was $12,173,948 compared to $71,327 for the corresponding period in 1998. The increase for the three months ended March 31, 1999 is primarily attributable to the gain on the Sale. For the three months ended March 31, 1999, the Partnership generated operating income of $28,175 compared to $71,327 for the corresponding period in 1998. Rental income totaled $265,290 for the three months ended March 31, 1999 compared with $848,852 for the corresponding period in 1998. Partnership expenses for the three months ended March 31, 1999 totaled $300,861 compared with $789,150 for the corresponding period in 1998. For the three months ended March 31, 1999, the decreased income from operations, rental income and partnership expenses are primarily attributable to the Sale on January 29, 1999. YEAR 2000 Due to the consummation of the Sale in January 1999, the Partnership is no longer engaged in the operation of real properties or any other business. As a result of the foregoing, and in view of the General Partner's plan to complete the full liquidation of the Partnership prior to January 1, 2000, the Partnership has no exposure to Year 2000 issues. ITEM 3. Quantitative and Qualitative Disclosures About Market Risks Since the Partnership sold its remaining properties on January 29, 1999 and its mortgage indebtedness was repaid, the Partnership has no exposure to interest rate risk. In addition, the Partnership is expected to be liquidated during 1999. PART II - OTHER INFORMATION ITEMS 1-3. Not applicable ITEM 4. Submission of Matters to a Vote of Security Holders. Pursuant to a Consent Solicitation Statement dated December 16, 1998, the Unitholders were asked to approve two proposals as follows: (i) the sale of all of the Partnership's remaining real estate investments to DOC Investors, L.L.C. (the "Sale"); and (ii) an amendment to the Partnership's partnership agreement to permit sales of Partnership properties to affiliates of the General Partner if the terms of the sale are approved by the Unitholders (the "Amendment"). By its terms, the consent solicitation was to terminate on January 15, 1999, unless such date was extended by the General Partner for an aggregate of up to an additional 40 days. Since both the Sale and the Amendment were approved by the requisite majority-in-interest of the Unitholders (i.e., at least 39,146 Units) as of January 15, 1999, the consent solicitation terminated on such date. Upon termination of the consent solicitation, the results of the consent solicitation were as follows: (i) With respect to the Sale - 49,776 Units "FOR;" 1,154 Units "AGAINST;" and 290 Units "ABSTAIN;" and (ii) with respect to the Amendment - 49,321 Units "FOR;" 1,419 Units "AGAINST;" and 480 Units "ABSTAIN." The foregoing results do not include any votes received after the termination of the consent solicitation. ITEM 5. Not applicable ITEM 6. Exhibits & Reports on Form 8-K (a) Exhibits 3.1 Amendment, dated January 18, 1999 to Partnership's Amended and Restated Certificate and Agreement of Limited Partnership (included as, and incorporated herein by reference to, Exhibit 4.1 to the Partnership's Report on Form 8-K filed on February 16, 1999). 10.1 Agreement for Purchase and Sale and Joint Escrow Instructions between R181 Las Colinas Limited Partnership and Doc Investors, L.L.C. dated January 26, 1999 with respect to the Sale of Las Colinas Apartments I & II (included as, and incorporated herein by reference to, Exhibit 10.1 to the Partnership's Report on Form 8-K filed on February 16, 1999). 10.2 Agreement for Purchase and Sale and Joint Escrow Instructions between Tierra Catalina Limited Partnership and Doc Investors, L.L.C. dated January 26, 1999 with respect to the Sale of Tierra Catalina (included as, and incorporated herein by reference to, Exhibit 10.2 to the Partnership's Report on Form 8-K filed on February 16, 1999). (b) Reports on Form 8-K On February 16, 1999, the Partnership filed a Form 8-K for the purpose of disclosing the consummation of the sale of all of its real property investments on January 29, 1999 to DOC Investors, L.L.C. No other reports on Form 8-K were filed during the quarter ended March 31, 1999. (27) Financial Data Schedule 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: May 14, 1999 BY:/s/ DANIEL J. EPSTEIN ----------------- Daniel J. Epstein Director, President, and Principal Executive Officer Date: May 14, 1999 BY:/s/ ROBERT J. SVATOS ---------------- Robert J. Svatos Vice President and Director EX-27 2 EXHIBIT 27
5 3-MOS DEC-31-1999 JAN-01-1999 MAR-31-1999 502,314 0 0 0 0 0 0 0 517,337 110,559 0 0 0 0 406,778 517,337 265,290 329,036 0 174,764 64,207 0 61,890 12,303,016 0 0 0 (129,068) 0 12,173,948 151.29 151.29
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