-----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, PKgZLHwh/g5lqGPEKtZ+WkqiPM7IIBJ6aoDYbGq2X2cMyLuvzRASD/9T4YIvIE4w J7kQvgwJ0fmblFmFgpL8lg== 0000763701-97-000003.txt : 19971030 0000763701-97-000003.hdr.sgml : 19971030 ACCESSION NUMBER: 0000763701-97-000003 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971029 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: SEC FILE NUMBER: 000-10435 FILM NUMBER: 97702881 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 OR TRANSITIONAL REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 QUARTERLY OR TRANSITIONAL REPORT 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, 1997 [ ] TRANSITION REPORT PURSUANT TO 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) (Zip Code) (864) 239-1000 (Issuer's telephone 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, 1997 Assets Cash and cash equivalents: Unrestricted $ 422 Restricted - tenant security deposits 52 Other assets 284 Accounts receivable 10 Escrow for taxes 188 Restricted escrows 89 Investment properties: Land $ 1,409 Buildings and related personal property 13,499 14,908 Less accumulated depreciation (7,183) 7,725 $ 8,770 Liabilities and Partners' Capital Liabilities Accounts payable $ 50 Accrued taxes 176 Tenant security deposits 52 Other liabilities 92 Mortgage notes payable 7,440 Partners' (deficit) capital General partners $(3,838) Limited partners (130,000 units issued and outstanding) 4,798 960 $ 8,770 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, 1997 1996 1997 1996 Revenues: Rental income $ 701 $ 628 $ 2,061 $ 1,899 Other income 27 43 82 109 Total revenues 728 671 2,143 2,008 Expenses: Operating 279 295 792 875 General and administrative 50 33 152 192 Maintenance 105 245 248 455 Depreciation 122 115 358 342 Interest 155 171 466 469 Property tax 58 78 162 229 Total expenses 769 937 2,178 2,562 Loss on disposal of property -- -- (56) -- Net loss $ (41) $ (266) $ (91) $ (554) Net loss allocated to general partners (6.9%) $ (3) $ (18) $ (6) $ (38) Net loss allocated to limited partners (93.1%) (38) (248) (85) (516) Net loss $ (41) $ (266) $ (91) $ (554) Net loss per limited partnership unit $ (.29) $ (1.91) $ (.65) $ (3.97) See Notes to Consolidated Financial Statements c) CENTURY PROPERTIES FUND XVI CONSOLIDATED STATEMENTS OF PARTNERS'(DEFICIT) CAPITAL (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) capital at December 31, 1996 130,000 $ (3,832) $ 4,883 $ 1,051 Net loss for the nine months ended September 30, 1997 -- (6) (85) (91) Partners' (deficit) capital at September 30, 1997 130,000 $ (3,838) $ 4,798 $ 960 See Notes to Consolidated Financial Statements d) CENTURY PROPERTIES FUND XVI CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands)
Nine Months Ended September 30, 1997 1996 Cash flows from operating activities: Net loss $ (91) $ (554) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 382 366 Loss on disposal of property 56 -- Change in accounts: Security deposits and other assets (95) (126) Accounts payable and accrued expenses (6) 185 Net cash provided by (used in) operating activities 246 (129) Cash flows used in investing activities: Property improvements and replacements (312) (155) Cash flows from financing activities: Payments on mortgage notes payable (47) (46) Loan costs paid -- (3) Net cash used in financing activities (47) (49) Net decrease in unrestricted cash and cash equivalents (113) (333) Unrestricted cash and cash equivalents at beginning of period 535 846 Unrestricted cash and cash equivalents at end of period $ 422 $ 513 Supplemental information: Cash paid for interest $ 408 $ 430 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 of Century Properties Fund XVI (the "Partnership" or the "Registrant") 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 three and nine month periods ended September 30, 1997, are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 1997. For further information, refer to the financial statements and footnotes thereto included in the Partnership's annual report on Form 10-KSB for the year ended December 31, 1996. Certain reclassifications have been made to the 1996 information to conform to the 1997 presentation. NOTE B - TRANSACTIONS WITH AFFILIATED PARTIES The Partnership has no employees and is dependent on its general partners, Fox Realty Investors ("FRI"), a California general partnership, and the Managing General Partner, 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 all of the issued and outstanding shares of stock of FCMC, NPI Equity Investments II, Inc. ("NPI Equity"), the managing general partner of FRI, and National Property Investors, Inc. ("NPI"). NPI Equity is a wholly-owned subsidiary of NPI. In connection with these transactions, affiliates of Insignia appointed new officers and directors of NPI Equity and FCMC. On March 29, 1996, an affiliate of Insignia acquired all of the issued and outstanding shares of stock of the general partners of the subsidiary partnerships which hold title to The Landings Apartments and Woods of Inverness Apartments, which general partners hold a 1% interest in profits, losses and distributions of such subsidiary partnerships. The following transactions with affiliates of Insignia, NPI and affiliates of NPI were charged to expense in 1997 and 1996: For the Nine Months Ended September 30, (in thousands) 1997 1996 Property management fees (included in operating expenses) $ 106 $ 96 Reimbursement for services of affiliates (included in general and administrative expenses) 78 106 For the period from January 19, 1996, to August 31, 1997, 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 master policy. The agent assumed the financial obligations to the affiliate of the Managing General Partner who receives payment on these obligations from the agent. The amount of the Partnership's insurance premiums that accrued to the benefit of the affiliate of the Managing General Partner by virtue of the agent's obligations was 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, 1997 and 1996: Average Occupancy Property 1997 1996 The Landings Apartments Tampa, Florida 94% 93% Woods of Inverness Apartments Houston, Texas 96% 91% The increase in average occupancy from September 30, 1996, to September 30, 1997, at both The Landings Apartments and the Woods of Inverness Apartments properties is due to increased marketing efforts, combined with the availability of attractive, well maintained units. The Partnership's net loss for the three and nine month periods ended September 30, 1997, was $41,000 and $91,000, versus losses of $266,000 and $554,000, respectively, for the same periods in 1996. The decrease in net loss for both the three and nine month periods ended September 30, 1997, is due to an overall increase in total revenues and a decrease in total expenses, partially offset by the $56,000 loss on disposal of property (see discussion below). The increase in total revenues is primarily due to the increase in occupancy at both The Landings Apartments and the Woods of Inverness Apartments. Operating expenses are down due to a decrease in utility costs and maintenance salaries at the Woods of Inverness Apartments. Also, advertising expense decreased due to the decreased need for concessions and referral fees as a result of the increase in occupancy at both complexes. General and administrative expenses decreased during the nine months ended September 30, 1997, versus the same time period in 1996 due to the decreased cost reimbursements as a result of the relocation of the partnership administration offices in 1996. Maintenance expenses declined due to numerous repairs to both the interior and exterior of the buildings, consisting of plumbing and electric systems, interior painting, parking lot repairs, as well as landscaping repairs, by the current management company in 1996, which did not re-occur in 1997. Property taxes decreased due to a decrease in billing, as a result of re-valuations of the properties. The loss on disposal of property of $56,000 at September 30, 1997, was the result of a re-roofing project at the Woods of Inverness Apartments. This loss was the result of the write-off of the old roof that was not fully depreciated at the time of the replacement. Included in maintenance expense for the nine months ended September 30, 1997, is $51,000 of major repairs and maintenance comprised of parking lot repairs, major landscaping, exterior painting and building improvements. Included in maintenance expense for the nine months ended September 30, 1996, is $187,000 of major repairs and maintenance comprised of exterior building improvements, parking lot repairs, major landscaping and swimming pool repairs. 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, 1997, the Partnership had unrestricted cash and cash equivalents of $422,000, versus $513,000 at September 30, 1996. Net cash provided by operating activities increased primarily due to the decreased net loss, as previously explained, offset partially by a decrease in accounts payable and accrued expenses. The Partnership experienced an increase in cash used in investing activities due primarily to building improvements at The Landings Apartments and the addition of the new roof at the Woods of Inverness Apartments. Cash used in financing activities remained consistent for the nine months ended September 30, 1997, versus the nine months ended September 30, 1996. 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 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 properties 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 mortgage indebtedness of $7,440,000 is based on a fixed interest rate, amortized over a thirty-year period, with a balloon payment of $6,618,000 due 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 1996 or during the first nine months of 1997. 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, 1997. SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. CENTURY PROPERTIES FUND XVI By: Fox Capital Management Corporation, Managing General Partner By: /s/William H. Jarrard, Jr. President and Director By: /s/Ronald Uretta Vice President and Treasurer Date:October 29, 1997 EX-27 2
5 This schedule contains summary financial information extracted from Century Properties Fund XVI 1997 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-31-1997 SEP-30-1997 422 0 10 0 0 0 14,908 7,183 8,770 0 7,440 0 0 0 960 8,770 0 2,143 0 0 2,178 0 466 (91) 0 (91) 0 0 0 (91) (.65) 0 Registrant has an unclassified balance sheet. Multiplier is 1.
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