-----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, G82u0T5HXS6dP6KO02T7oNcmL0ZpdfQxwIo+hbbQm7PCwES0vna5rXOc7vW3NY57 jxYG3Vp75hcQYIAkkYeybg== 0001047469-98-020204.txt : 19980515 0001047469-98-020204.hdr.sgml : 19980515 ACCESSION NUMBER: 0001047469-98-020204 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980514 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: HUTTON CONAM REALTY INVESTORS 2 CENTRAL INDEX KEY: 0000357099 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 133100545 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-11085 FILM NUMBER: 98620762 BUSINESS ADDRESS: STREET 1: 3 WORLD FINANCIAL CENTER 29TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10285 BUSINESS PHONE: 2125263237 MAIL ADDRESS: STREET 1: 3 WORLD FINANCIAL CENTER STREET 2: 29TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10285 10-Q 1 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 31,1998 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: 0-11085 CONAM REALTY INVESTORS 2 L.P. Exact Name of Registrant as Specified in its Charter California 13-3100545 ---------- ---------- STATE OR OTHER JURISDICTION OF I.R.S. EMPLOYER IDENTIFICATION NO. INCORPORATION OR ORGANIZATION 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 2 L.P. AND CONSOLIDATED VENTURES
- ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEETS AT MARCH 31, AT DECEMBER 31, 1998 1997 - ----------------------------------------------------------------------------------------- ASSETS Investments in real estate: Land $ 5,744,972 $ 5,744,972 Buildings and improvements 23,681,664 23,681,664 -------------------------------- 29,426,636 29,426,636 Less accumulated depreciation (12,927,435) (12,689,727) -------------------------------- 16,499,201 16,736,909 Cash and cash equivalents 1,342,008 1,109,506 Restricted cash 371,465 342,282 Other assets, net of accumulated amortization of $ 276,126 in 1998 and $260,496 in 1997 183,119 181,421 - ----------------------------------------------------------------------------------------- TOTAL ASSETS $ 18,395,793 $ 18,370,118 - ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- LIABILITIES AND PARTNERS' CAPITAL Mortgage payable 11,498,601 11,554,935 Accounts payable and accrued expenses 211,293 197,443 Due to general partner and affiliates 19,213 18,504 Security deposits 102,228 103,908 Distribution payable 200,000 - -------------------------------- Total Liabilities 12,031,335 11,874,790 -------------------------------- Partners' Capital (Deficit): General Partner (580,243) (567,156) Limited Partners (80,000 Units outstanding) 6,944,701 7,062,484 -------------------------------- Total Partners' Capital 6,364,458 6,495,328 - ----------------------------------------------------------------------------------------- TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 18,395,793 $ 18,370,118 - ----------------------------------------------------------------------------------------- - -----------------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. CONAM REALTY INVESTORS 2 L.P. AND CONSOLIDATED VENTURES
- ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 1998 1997 - ----------------------------------------------------------------------------------------- INCOME Rental $ 1,124,991 $ 1,072,556 Interest and other 9,368 12,505 ------------------------------- Total Income 1,134,359 1,085,061 - ----------------------------------------------------------------------------------------- EXPENSES Property operating 540,321 509,063 Depreciation and amortization 253,338 252,805 Interest 223,515 227,703 General and administrative 48,055 48,597 ------------------------------- Total Expenses 1,065,229 1,038,168 - ----------------------------------------------------------------------------------------- NET INCOME $ 69,130 $ 46,893 - ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- NET INCOME ALLOCATED: To the General Partner $ 6,913 $ 4,689 To the Limited Partners 62,217 42,204 - ----------------------------------------------------------------------------------------- NET INCOME $ 69,130 $ 46,893 - ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- PER LIMITED PARTNERSHIP UNIT (80,000 UNITS OUTSTANDING) Net Income $ 0.78 $ 0.53 - ----------------------------------------------------------------------------------------- - -----------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL FOR THE THREE MONTHS ENDED MARCH 31, 1998 GENERAL LIMITED PARTNER PARTNERS TOTAL - ----------------------------------------------------------------------------------------- BALANCE (DEFICIT) AT DECEMBER 31, 1997 $ (567,156) $ 7,062,484 $ 6,495,328 Net income 6,913 62,217 69,130 Distributions ($2.25 per Unit) (20,000) (180,000) (200,000) - ----------------------------------------------------------------------------------------- BALANCE (DEFICIT) AT MARCH 31, 1998 $ (580,243) $ 6,944,701 $ 6,364,458 - ----------------------------------------------------------------------------------------- - -----------------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. CONAM REALTY INVESTORS 2 L.P. AND CONSOLIDATED VENTURES
- ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 1998 1997 - ----------------------------------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 69,130 $ 46,893 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 253,338 252,805 Increase (decrease) in cash arising from changes in operating assets and liabilities: Fundings to restricted cash (82,107) (83,171) Release of restricted cash 52,924 - Other assets (17,328) - Accounts payable and accrued expenses 13,850 127,223 Due to general partner and affiliates 709 22 Security deposits (1,680) (3,313) ------------------------- Net cash provided by operating activities 288,836 340,459 - ----------------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES- Additions to real estate - (106,758 - ----------------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES: Distributions - (200,000) Mortgage principal payments (56,334) (52,147) ------------------------- Net cash used for financing activities (56,334) (252,147) - ----------------------------------------------------------------------------------------- Net increase (decrease) in cash and cash equivalents 232,502 (18,446) Cash and cash equivalents, beginning of period 1,109,506 962,290 - ----------------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 1,342,008 $ 943,844 - ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for interest $ 223,515 $ 227,703 - -----------------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. CONAM REALTY INVESTORS 2 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 March 31, 1998 and the results of operations and cash flows for the three months ended March 31, 1998 and 1997 and the consolidated statement of partners' capital for the three months ended March 31, 1998. Results of operations for the period 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 2 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 March 31, 1998, the Partnership had cash and cash equivalents of $1,342,008 which were invested in unaffiliated money market funds, compared with $1,109,506 at December 31, 1997. The increase is attributable to net cash provided by operating activities exceeding cash used for mortgage principal payments. The Partnership also maintains a restricted cash balance which totaled $371,465 at March 31, 1998 compared to $342,282 at December 31, 1997. The restricted cash funds represent escrows for insurance and real estate taxes required under the terms of the current mortgage loans. The Partnership expects sufficient cash to be generated from operations to meet its current operating expenses. The General Partner declared a regular cash distribution of $2.25 per Unit for the quarter ended March 31, 1998 which will be paid in May, 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 months ended March 31, 1998 generated net income of $69,130 compared with net income of $46,893 for the corresponding period in 1997. The increase for the three month period is primarily attributable to an increase in rental revenues partially offset by an increase in property operating expenses. Net cash provided by operating activities for the three months ended March 31, 1998 was $288,836 compared with $340,459 for the corresponding period in 1997. The decrease is primarily due to more timely payment of operating expenses partially offset by an increase in net income and a release of restricted cash funds. Property operating expenses for the three months ended March 31, 1998 totaled $540,321 compared with $509,063 for the corresponding period in 1997. The increase is primarily attributable to repairs and maintenance expense to units at Rancho Antigua which were being prepared for re-occupancy. During the first three months of 1998 and 1997, average occupancy levels at the Partnership's properties were as follows:
Property 1998 1997 ------------------------------------------- Creekside Oaks 94% 95% Ponte Vedra Beach Villa 92% 92% Rancho Antigua 97% 96% Village at the Foothill 97% 93% -------------------------------------------
Occupancy level increases at the Village at Foothills I reflect favorable economic conditions in the Arizona market. CONAM REALTY INVESTORS 2 L.P. AND CONSOLIDATED VENTURES PART II OTHER INFORMATION ITEMS 1-5 Not applicable ITEMS 6 Exhibits (a) Exhibits - (27) Financial Data Schedule (b) Reports on Form 8-K On February 3, 1998 ConAm Realty Investors 2 L.P. filed a Form 8-K regarding a change in the general partner ownership and the name change from Hutton /ConAm Realty Investors 2 to ConAm Realty Investors 2 L.P. 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. CON AM PROPERTY SERVICES II, LTD. General Partner of ConAm Realty Investors 2 L.P. BY: CONTINENTAL AMERICAN DEVELOPMENT, INC. GENERAL PARTNER Date: May 13, 1998 BY:/s/ DANIEL J. EPSTEIN ----------------- Daniel J. Epstein Director, President, and Principal Executive Officer Date: May 13, 1998 BY:/s/ ROBERT J. SVATOS ----------------- Robert J. Svatos Vice President and Director EX-27 2 EX-27
5 3-MOS DEC-31-1998 MAR-31-1998 1,713,473 0 0 0 0 0 29,426,636 12,927,435 18,395,793 532,734 11,498,601 0 0 0 6,364,458 18,395,793 1,124,991 1,134,359 0 540,321 301,393 0 223,515 69,130 0 69,130 0 0 0 69,130 0.78 0.78
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