-----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, KL0yzaONLeMSMJt3RYt3SkglewFQSYlhAs/h8nZOB+Uk8rbx9yIGX6OsUXAkeUdc QiRJa/9tUoK9ZmihcfPuww== 0000721673-96-000011.txt : 19961111 0000721673-96-000011.hdr.sgml : 19961111 ACCESSION NUMBER: 0000721673-96-000011 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961108 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTURY PROPERTIES FUND XVI CENTRAL INDEX KEY: 0000351931 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 942704651 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-10435 FILM NUMBER: 96657540 BUSINESS ADDRESS: STREET 1: ONE INSIGNIA FINANCIAL PLZ P STREET 2: PO BOX 1089 C/O INSIGNIA FINANICAL GROUP CITY: GREENVILLE STATE: SC ZIP: 29602 BUSINESS PHONE: 8032391000 MAIL ADDRESS: STREET 1: POST & HEYMANN STREET 2: 5665 NORTHSIDE DR NW CITY: ATLANTA STATE: GA ZIP: 30328 10QSB 1 FORM 10-QSB--QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 Quarterly or Transitional Report (As last amended by 34-32231, eff. 6/3/93.) U.S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-QSB (Mark One) [X] Quarterly Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 For the quarterly period ended September 30, 1996 [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period.........to......... Commission file number 0-10435 CENTURY PROPERTIES FUND XVI (Exact name of small business issuer as specified in its charter) California 94-2704651 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) One Insignia Financial Plaza Greenville, South Carolina 29602 (Address of principal executive offices) (864) 239-1000 Issuer's phone number Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15 (d) of the Exchange Act during the past 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 . PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS a) CENTURY PROPERTIES FUND XVI CONSOLIDATED BALANCE SHEET (Unaudited) (in thousands, except unit data) September 30, 1996 Assets Cash and cash equivalents $ 513 Security deposits and other assets 353 Loan costs, net 294 Investment properties: Land $ 1,409 Buildings and related personal property 13,243 14,652 Less accumulated depreciation (6,756) 7,896 $ 9,056 Liabilities and Partners' Equity Accounts payable and accrued expenses $ 388 Mortgages payable 7,504 Partners' Equity (Deficit): Limited partners (130,000 units issued and outstanding) $ 4,988 General partners (3,824) 1,164 $ 9,056 See Notes to Consolidated Financial Statements b) CENTURY PROPERTIES FUND XVI CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except unit data) Three Months Ended Nine Months Ended September 30, September 30, 1996 1995 1996 1995 Revenues: Rental income $ 628 $ 675 $ 1,899 $ 2,004 Other income 43 27 109 81 Total revenues 671 702 2,008 2,085 Expenses: Operating 618 450 1,559 1,318 Mortgage interest 171 195 469 596 Depreciation 115 115 342 343 General and administrative expenses 33 51 192 168 Total expenses 937 811 2,562 2,425 Net loss $ (266) $ (109) $ (554) $ (340) Net loss allocated to general partner $ (18) $ (7) $ (38) $ (23) Net loss allocated to limited partners (248) (102) (516) (317) Net loss $ (266) $ (109) $ (554) $ (340) Net loss per limited partnership unit $ (1.90) $ (.79) $ (3.97) $ (2.44) See Notes to Consolidated Financial Statements c) CENTURY PROPERTIES FUND XVI CONSOLIDATED STATEMENT OF PARTNERS' EQUITY (Unaudited) (in thousands, except unit data)
Limited Partnership General Limited Units Partners Partners Total Original capital contributions 130,000 $ -- $ 65,000 $ 65,000 Partners' (deficit) equity at December 31, 1995 130,000 $ (3,786) $ 5,504 $ 1,718 Net loss for the nine months ended September 30, 1996 (38) (516) (554) Partners' (deficit) equity at September 30, 1996 130,000 $ (3,824) $ 4,988 $ 1,164 See Notes to Consolidated Financial Statements
d) CENTURY PROPERTIES FUND XVI CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands, except unit data) Nine Months Ended September 30, 1996 1995 Cash flows from operating activities: Net loss $ (554) $ (340) Adjustments to reconcile net loss to cash (used in) provided by operating activities: Depreciation and amortization 366 398 Change in accounts: Security deposits and other assets (126) (73) Accounts payable and accrued expenses 185 23 Net cash (used in) provided by operating activities (129) 8 Cash flows from investing activities: Property improvements and replacements (155) (53) Cash used in investing activities (155) (53) Cash flows from financing activities: Mortgage principal repayments (46) -- Loan costs (3) -- Cash used in financing activities (49) -- Net decrease in cash and cash equivalents (333) (45) Cash and cash equivalents at beginning of period 846 932 Cash and cash equivalents at end of period $ 513 $ 887 Supplemental information: Interest paid $ 430 $ 523 See Notes to Consolidated Financial Statements e) CENTURY PROPERTIES FUND XVI NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE A - BASIS OF PRESENTATION The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-QSB and Item 310(b) of Regulation S-B. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of Fox Capital Management Corporation (the "Managing General Partner" or "FCMC"), all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the nine month period ended September 30, 1996, are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 1996. For further information, refer to the financial statements and footnotes thereto included in the Partnership's annual report on Form 10-K for the year ended December 31, 1995. Certain reclassifications have been made to the 1995 information to conform to the 1996 presentation. NOTE B - TRANSACTIONS WITH AFFILIATED PARTIES Century Properties Fund XVI (the "Partnership"), has no employees and is dependent on its general partners, Fox Realty Investors ("FRI"), a California general partnership, and FCMC, a California corporation, and their affiliates for the management and administration of all partnership activities. The Partnership Agreement provides for payments to affiliates for services and as reimbursement of certain expenses incurred by affiliates on behalf of the Partnership. Pursuant to a series of transactions which closed during the first half of 1996, affiliates of Insignia Financial Group, Inc. ("Insignia") acquired (i) control of NPI Equity Investments II, Inc., the managing general partner of FRI, and (ii) all of the issued and outstanding shares of stock of FCMC. NPI Equity is a wholly-owned subsidiary of National Property Investors, Inc. ("NPI"). In connection with these transactions, affiliates of Insignia appointed new officers and directors of NPI Equity Investments II, Inc. and FCMC. The following transactions with affiliates of Insignia, NPI, and affiliates of NPI were charged to expense in 1996 and 1995:
For the Nine Months Ended September 30, 1996 1995 Property management fees (included in operating expenses) $ 96,000 $ 99,000 Reimbursement for services of affiliates (included in general and administrative expenses) 106,000 113,000
NOTE B - TRANSACTIONS WITH AFFILIATED PARTIES (CONTINUED) For the period from January 19, 1996, to September 30, 1996, the Partnership insured its properties under a master policy through an agency and insurer unaffiliated with the Managing General Partner. An affiliate of the Managing General Partner acquired, in the acquisition of a business, certain financial obligations from an insurance agency which was later acquired by the agent who placed the current year's master policy. The current agent assumed the financial obligations to the affiliate of the Managing General Partner who received payments on these obligations from the agent. The amount of the Partnership's insurance premiums accruing to the benefit of the affiliate of the Managing General Partner by virtue of the agent's obligations is not significant. ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION The Partnership's investment properties consist of two apartment complexes. The following table sets forth the average occupancy of the properties for each of the nine month periods ended September 30, 1996 and 1995: Average Occupancy Property 1996 1995 The Landings Apartments Tampa, Florida 93% 96% Woods of Inverness Houston, Texas 91% 96% The decrease in average occupancy at The Landings for the nine months ended September 30, 1996, compared to the nine months ended September 30, 1995, is attributable to newly completed apartment construction in the area. The decrease in average occupancy at Woods of Inverness for the nine months ended September 30, 1996, compared to the nine months ended September 30, 1995, is due to a soft market in the area as well as an increase in new home purchases. The Partnership's net loss for the three and nine month periods ended September 30, 1996, was approximately $266,000 and $554,000, respectively, versus $109,000 and $340,000, respectively, for the same periods of 1995. The increase in net loss is attributable to a decrease in rental income and an increase in operating expenses, offset, in part, by an increase in other income and a decrease in mortgage interest expense. The decrease in rental income is attributable to the decrease in occupancy rates at the Partnership's investment properties offset, in part, by an increase in average rental rates at Woods of Inverness. The increase in other income is attributed to an increase in lease cancellation fees. The increase in operating expense is primarily due to the increased use of advertising in an effort to increase occupancy, the repair of a lake wall at The Landings, the repaving of portions of the parking lot and the replacement of wood siding at Woods of Inverness. The decrease in mortgage interest expense is attributable to the decrease in interest rates due to the more favorable terms of the mortgages which were refinanced in December 1995. The Partnership also had an increase in general and administrative expenses due to an increase in professional fees in 1996. As part of the ongoing business plan of the Partnership, the Managing General Partner monitors the rental market environment of its investment properties to assess the feasibility of increasing rents, maintaining or increasing occupancy levels and protecting the Partnership from increases in expenses. As part of this plan, the Managing General Partner attempts to protect the Partnership from the burden of inflation-related increases in expenses by increasing rents and maintaining a high overall occupancy level. However, due to changing market conditions, which can result in the use of rental concessions and rental reductions to offset softening conditions, there is no guarantee that the Managing General Partner will be able to sustain such a plan. At September 30, 1996, the Partnership had unrestricted cash of $513,000 as compared to $887,000 at September 30, 1995. Net cash provided by operating activities decreased primarily as a result of the increase in the net loss, as discussed above, and an increase in security deposits and other assets, offset, in part, by an increase in accounts payable and other liabilities. The increase in cash used in investing activities relates to capital expenditures, primarily attributable to Woods of Inverness Apartments, which had a number of roofs replaced and a seamless gutter system installed. The increase in cash used in financing activities is due to the amortization of the mortgage principal balance during the period ended September 30, 1996. Prior to refinancing in December 1995, mortgage payments were interest only. An affiliate of the Managing General Partner has made available to the Partnership a credit line of up to $150,000 per property owned by the Partnership. The Partnership has no outstanding amounts due under this line of credit. Based on present plans, the Managing General Partner does not anticipate the need to borrow in the near future. Other than cash and cash equivalents, the line of credit is the Partnership's only unused source of liquidity. The Partnership has no material capital programs scheduled to be performed in 1996, although certain routine capital expenditures and maintenance expenses have been budgeted. These capital expenditures and maintenance expenses will be incurred only if cash is available from operations or is received from the capital reserve account. The sufficiency of existing liquid assets to meet future liquidity and capital expenditure requirements is directly related to the level of capital expenditures required at the property to adequately maintain the physical assets and other operating needs of the Partnership. Such assets are currently thought to be sufficient for any near-term needs of the Partnership. The total mortgage indebtedness of $7,504,000 is based on fixed interest rate notes, amortized over a thirty year period, with balloon payments of principal and interest due on the maturity date of January 1, 2006. Future cash distributions will depend on the levels of cash generated from operations, property sales, and the availability of cash reserves. No cash distributions were paid in 1995 or during the nine months ended September 30, 1996. PART II - OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K a) Exhibit 27, Financial Data Schedule, is filed as an exhibit to this report. b) Reports on Form 8-K: None filed during the period ended September 30, 1996. 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 thereunto duly authorized. CENTURY PROPERTIES FUND XVI By: Fox Capital Management Corporation, it's Managing General Partner By: /s/William H. Jarrard, Jr. President and Director By: /s/Ronald Uretta Treasurer (Principal Financial Officer and Principal Accounting Officer) Date: November 8, 1996 EX-27 2
5 This schedule contains summary financial information extracted from Century Properties Fund XVI 1996 Third Quarter 10-QSB and is qualified in its entirety by reference to such 10-QSB filing. 0000351931 CENTURY PROPERTIES FUND XVI 1,000 9-MOS DEC-31-1996 SEP-30-1996 513 0 0 0 0 0 14,652 6,756 9,056 0 7,504 0 0 0 1,164 9,056 0 2,008 0 0 2,562 0 469 0 0 0 0 0 0 (554) (3.97) 0 Registrant has an unclassified balance sheet. Multiplier is 1.
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