0000702657-95-000005.txt : 19950815
0000702657-95-000005.hdr.sgml : 19950815
ACCESSION NUMBER: 0000702657-95-000005
CONFORMED SUBMISSION TYPE: 10-Q
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 19950630
FILED AS OF DATE: 19950814
SROS: NONE
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: MCNEIL REAL ESTATE FUND XIV LTD
CENTRAL INDEX KEY: 0000702657
STANDARD INDUSTRIAL CLASSIFICATION: OPERATORS OF NONRESIDENTIAL BUILDINGS [6512]
IRS NUMBER: 942822299
STATE OF INCORPORATION: CA
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: 10-Q
SEC ACT: 1934 Act
SEC FILE NUMBER: 000-12915
FILM NUMBER: 95562601
BUSINESS ADDRESS:
STREET 1: 13760 NOEL RD STE 700 LB70
CITY: DALLAS
STATE: TX
ZIP: 75240
BUSINESS PHONE: 2144485800
MAIL ADDRESS:
STREET 1: 13760 NOEL ROAD SUITE 700 LB 70
CITY: DALLAS
STATE: TX
ZIP: 75240
10-Q
1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the period ended June 30, 1995
-----------------------------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ______________ to_____________
Commission file number 0-12915
MCNEIL REAL ESTATE FUND XIV, LTD.
-------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
California 94-2822299
-------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
13760 Noel Road, Suite 700, LB70, Dallas, Texas 75240
-------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (214) 448-5800
---------------------------
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 and (2) has been subject to such filing
requirements for the past 90 days. Yes X No___
MCNEIL REAL ESTATE FUND XIV, LTD.
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
------- --------------------
BALANCE SHEETS
(Unaudited)
June 30, December 31,
1995 1994
------------ -----------
ASSETS
Real estate investments:
Land..................................................... $ 6,833,471 $ 6,833,471
Buildings and improvements............................... 45,053,800 44,237,251
---------- ----------
51,887,271 51,070,722
Less: Accumulated depreciation.......................... (20,736,821) (19,674,640)
----------- -----------
31,150,450 31,396,082
Cash and cash equivalents................................... 1,700,073 1,045,158
Cash segregated for security deposits....................... 403,172 372,157
Accounts receivable......................................... 446,901 394,285
Prepaid expenses and other assets........................... 206,956 230,521
Escrow deposits............................................. 877,108 655,767
Deferred borrowing costs, net of accumulated amorti-
zation of $201,553 and $170,822 at June 30, 1995
and December 31, 1994, respectively...................... 1,192,690 1,120,896
----------- ----------
$ 35,977,350 $35,214,866
=========== ==========
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
Mortgage notes payable, net................................. $ 28,082,158 $27,161,556
Accounts payable............................................ 167,449 155,071
Accrued interest............................................ 203,238 203,282
Accrued property taxes...................................... 303,762 84,880
Other accrued expenses...................................... 73,432 81,605
Payable to affiliates - General Partner..................... 954,391 991,530
Security deposits and deferred rental revenue............... 390,643 384,769
----------- ----------
30,175,073 29,062,693
----------- ----------
Partners' equity (deficit):
Limited partners - 100,000 limited partnership
units authorized; 86,534 limited partnership
units outstanding...................................... 8,049,815 8,094,114
General Partner.......................................... (2,247,538) (1,941,941)
----------- ----------
5,802,277 6,152,173
----------- ----------
$ 35,977,350 $35,214,866
=========== ==========
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial
statements.
MCNEIL REAL ESTATE FUND XIV, LTD.
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
----------------------------- -----------------------------
1995 1994 1995 1994
---------- ---------- ---------- ----------
Revenue:
Rental revenue................ $2,304,415 $2,188,026 $4,580,514 $4,350,952
Interest...................... 29,002 8,021 54,155 12,212
Gain on legal settlement...... 39,841 - 39,841 -
--------- --------- --------- ---------
Total revenue............... 2,373,258 2,196,047 4,674,510 4,363,164
--------- --------- --------- ---------
Expenses:
Interest...................... 671,006 683,001 1,339,019 1,368,507
Depreciation and
amortization................ 540,754 478,377 1,062,181 956,754
Property taxes................ 178,272 181,051 366,608 363,118
Personnel expenses............ 230,027 225,794 513,485 475,619
Utilities..................... 115,966 121,512 226,262 238,095
Repair and maintenance........ 247,797 248,229 475,623 510,475
Property management
fees - affiliates........... 116,610 110,807 227,973 217,104
Other property operating
expenses.................... 141,817 144,102 286,143 272,520
General and administrative.... 17,188 17,161 33,751 35,445
General and administrative -
affiliates.................. 91,708 83,360 188,211 170,830
--------- --------- --------- ---------
Total expenses.............. 2,351,145 2,293,394 4,719,256 4,608,467
--------- --------- --------- ---------
Net income (loss)................ $ 22,113 $ (97,347) $ (44,746) $ (245,303)
========= ========= ========= =========
Net income (loss) allocated to
limited partners.............. $ 21,892 $ (96,374) $ (44,299) $ (242,850)
Net income (loss) allocated to
General Partner............... 221 (973) (447) (2,453)
--------- --------- --------- ---------
Net income (loss)................ $ 22,113 $ (97,347) $ (44,746) $ (245,303)
========= ========= ========= =========
Net income (loss) per limited
partnership unit.............. $ .25 $ (1.11) $ (.51) $ (2.81)
========= ========= ========= =========
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
MCNEIL REAL ESTATE FUND XIV, LTD.
STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
(Unaudited)
For the Six Months Ended June 30, 1995 and 1994
Total
Partners'
General Limited Equity
Partner Partners (Deficit)
------------ ---------- ----------
Balance at December 31, 1993.............. $(1,365,025) $8,391,866 $7,026,841
Net loss.................................. (2,453) (242,850) (245,303)
Contingent Management Incentive
Distribution........................... (278,548) - (278,548)
---------- --------- ---------
Balance at June 30, 1994.................. $(1,646,026) $8,149,016 $6,502,990
========== ========= =========
Balance at December 31, 1994.............. $(1,941,941) $8,094,114 $6,152,173
Net loss.................................. (447) (44,299) (44,746)
Contingent Management Incentive
Distribution........................... (305,150) - (305,150)
---------- --------- ---------
Balance at June 30, 1995.................. $(2,247,538) $8,049,815 $5,802,277
========== ========= =========
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
MCNEIL REAL ESTATE FUND XIV, LTD.
STATEMENTS OF CASH FLOWS
(Unaudited)
Increase in Cash and Cash Equivalents
Six Months Ended
June 30,
-----------------------------------
1995 1994
---------- ------------
Cash flows from operating activities:
Cash received from tenants........................ $ 4,501,365 $ 4,334,415
Cash received from legal settlement............... 39,841 -
Cash paid to suppliers............................ (1,654,486) (1,334,781)
Cash paid to affiliates........................... (758,473) (296,523)
Interest received................................. 54,155 12,212
Interest paid..................................... (1,237,538) (1,305,131)
Deferred borrowing costs paid..................... (107,525) 5,435
Property taxes paid and escrowed.................. (220,683) (335,356)
---------- ----------
Net cash provided by operating activities............ 616,656 1,080,271
---------- ----------
Cash flows from investing activities:
Additions to real estate investments.............. (816,549) (331,517)
---------- ----------
Cash flows from financing activities:
Principal payments on mortgage notes
payable......................................... (260,959) (247,428)
Proceeds from refinancing of mortgage
note payable.................................... 1,115,767 -
---------- ----------
Net cash provided by (used in) financing
activities........................................ 854,808 (247,428)
---------- ----------
Net increase in cash and cash equivalents............ 654,915 501,326
Cash and cash equivalents at beginning of
period............................................ 1,045,158 331,350
---------- ----------
Cash and cash equivalents at end of period........... $ 1,700,073 $ 832,676
========== ==========
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
MCNEIL REAL ESTATE FUND XIV, LTD.
STATEMENTS OF CASH FLOWS
(Unaudited)
Reconciliation of Net Loss to Net Cash Provided by
Operating Activities
Six Months Ended
June 30,
-----------------------------------
1995 1994
----------- ----------
Net loss............................................. $ (44,746) $(245,303)
--------- --------
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation and amortization..................... 1,062,181 956,754
Amortization of deferred borrowing costs.......... 35,731 34,726
Amortization of discounts on mortgage
notes payable................................... 65,794 67,791
Changes in assets and liabilities:
Cash segregated for security deposits........... (31,015) (21,394)
Accounts receivable............................. (52,616) 14,575
Prepaid expenses and other assets............... 23,565 51,545
Escrow deposits................................. (221,341) (69,238)
Deferred borrowing costs........................ (107,525) 5,435
Accounts payable................................ 12,378 (2,879)
Accrued interest................................ (44) (39,140)
Accrued property taxes.......................... 218,882 182,986
Other accrued expenses.......................... (8,173) 36,835
Payable to affiliates - General Partner......... (342,289) 91,410
Security deposits and deferred rental
revenue....................................... 5,874 16,168
--------- ---------
Total adjustments............................. 661,402 1,325,574
--------- ---------
Net cash provided by operating activities............ $ 616,656 $1,080,271
========= =========
The financial information included herein has been prepared by management
without audit by independent public accountants.
See accompanying notes to financial statements.
McNEIL REAL ESTATE FUND XIV, LTD.
Notes to Financial Statements
(Unaudited)
June 30, 1995
NOTE 1.
-------
McNeil Real Estate Fund XIV, Ltd. (the "Partnership") is a limited partnership
organized under the laws of the State of California to invest in real property.
The general partner of the Partnership is McNeil Partners, L.P. (the "General
Partner"), a Delaware limited partnership affiliated with Robert A. McNeil. The
Partnership is governed by an agreement of limited partnership ("Amended
Partnership Agreement") that was adopted September 20, 1991. The principal place
of business for the Partnership and the General Partner is 13760 Noel Road,
Suite 700, LB70, Dallas, Texas 75240.
In the opinion of management, the financial statements reflect all adjustments
necessary for a fair presentation of the Partnership's financial position and
results of operations. All adjustments were of a normal recurring nature.
However, the results of operations for the six months ended June 30, 1995 are
not necessarily indicative of the results to be expected for the year ending
December 31, 1995.
NOTE 2.
-------
The financial statements should be read in conjunction with the financial
statements contained in the Partnership's Annual Report on Form 10-K for the
year ended December 31, 1994, and the notes thereto, as filed with the
Securities and Exchange Commission, which is available upon request by writing
to McNeil Real Estate Fund XIV, Ltd., c/o McNeil Real Estate Management, Inc.,
Investor Services, 13760 Noel Road, Suite 700, LB70, Dallas, Texas 75240.
NOTE 3.
-------
Certain prior period amounts within the accompanying financial statements have
been reclassified to conform with current year presentation.
NOTE 4.
-------
The Partnership pays property management fees equal to 5% of the gross rental
receipts of the Partnership's properties to McNeil Real Estate Management, Inc.
("McREMI"), an affiliate of the General Partner, for providing property
management services for the Partnership's residential and commercial properties
and leasing services for its residential properties. McREMI may also choose to
provide leasing services for the Partnership's commercial properties, in which
case McREMI will receive property management fees from such commercial
properties equal to 3% of the property's gross rental receipts plus leasing
commissions based on the prevailing market rate for such services where the
property is located.
The Partnership reimburses McREMI for its costs, including overhead, of
administering the Partnership's affairs.
Under the terms of the Amended Partnership Agreement, the Partnership is paying
a Management Incentive Distribution ("MID") to the General Partner. The maximum
MID is calculated as 1% of the tangible asset value of the Partnership. Tangible
asset value is determined by using the greater of (i) an amount calculated by
applying a capitalization rate of 9% to the annualized net operating income of
each property or (ii) a value of $10,000 per apartment unit for residential
property and $50 per gross square foot for commercial property to arrive at the
property tangible asset value. The property tangible asset value is then added
to the book value of all other assets excluding intangible assets. Prior to July
1, 1993, the MID consisted of two components: (i) the fixed portion which was
payable without respect to the net income of the Partnership and was equal to
25% of the maximum MID (the "Fixed MID") and (ii) a contingent portion which is
payable only to the extent of the lesser of the Partnership's excess cash flow,
as defined, or net operating income (the "Entitlement Amount") and was equal to
up to 75% of the maximum MID (the "Contingent MID"). The maximum MID percentage
decreases subsequent to 1999.
The General Partner amended the Amended Partnership Agreement as a settlement to
a class action complaint. This amendment eliminated the Fixed MID and makes the
entire MID payable to the extent of the Entitlement Amount. In all other
respects, the calculation and payment of the MID will remain the same. This
modified MID became effective July 1, 1993.
Fixed MID was payable in limited partnership units ("Units") unless the
Entitlement Amount exceeded the amount necessary to pay the Contingent MID, in
which case, at the General Partner's option, the Fixed MID could have been paid
in cash to the extent of such excess.
Contingent MID will be paid to the extent of the Entitlement Amount, and may be
paid (i) in cash, unless there is insufficient cash to pay the distribution in
which event any unpaid portion not taken in Units will be deferred and is
payable, without interest, from the first available cash and/or (ii) in Units. A
maximum of 50% of the MID may be paid in Units. The number of Units issued in
payment of the MID is based on the greater of $50 per Unit or the net tangible
asset value, as defined, per Unit.
Any amount of the MID that is paid to the General Partner in Units will be
treated as if cash was distributed to the General Partner. The Fixed MID was
treated as a fee payable to the General Partner by the Partnership for services
rendered. The Contingent MID represents a return of equity to the General
Partner for increasing cash flow, as defined, and accordingly, is treated as a
distribution to the General Partner in compliance with the Amended Partnership
Agreement.
Compensation, reimbursements and distributions paid to or accrued for the
benefit of the General Partner and its affiliates are as follows:
Six Months Ended
June 30,
------------------------------
1995 1994
-------- --------
Property management fees - affiliates................ $227,973 $217,104
Charged to general and administrative -
affiliates:
Partnership administration........................ 188,211 170,830
------- -------
$416,184 $387,934
======= =======
Charged to General Partner's deficit:
Contingent Management Incentive
Distribution.................................... $305,150 $278,548
======= =======
NOTE 5.
-------
On March 13, 1995, the Partnership refinanced the Windrock mortgage note. The
new mortgage note, in the amount of $3,450,000, bears interest at 9.44% per
annum, and requires monthly principal and interest payments of $28,859. The
maturity date of the new mortgage note is April 1, 2002. Cash proceeds from the
refinancing transaction are as follows:
New loan proceeds....................... $ 3,450,000
Existing first lien retired............. (1,894,233)
Existing second lien retired............ (440,000)
----------
Cash proceeds from refinancing.......... $ 1,115,767
==========
The Partnership incurred $107,525 of deferred borrowing costs related to the
refinancing of the Windrock mortgage note. The Partnership was also required to
fund $184,172 into various escrows for capital improvements, property taxes and
insurance.
NOTE 6.
-------
The Partnership filed claims with the United States Bankruptcy Court for the
Northern District of Texas, Dallas Division (the "Bankruptcy Court") against
Southmark for damages relating to improper overcharges, breach of contract and
breach of fiduciary duty. The Partnership settled these claims in 1991, and such
settlement was approved by the Bankruptcy Court.
An Order Granting Motion to Distribute Funds to Class 8 Claimants dated April
14, 1995 was issued by the Bankruptcy Court. In accordance with the Order, in
May 1995, the Partnership received in full satisfaction of its claims, $30,118
in cash, and common and preferred stock in the reorganized Southmark. The cash
and stock represent the Partnership's pro-rata share of Southmark assets
available for Class 8 Claimants. The Partnership sold the Southmark common and
preferred stock in May, 1995, for $9,723 which, when combined with the cash
proceeds from Southmark, resulted in a gain on settlement of litigation of
$39,841.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
------- ---------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
The Partnership was formed to acquire, operate and ultimately dispose of a
portfolio of income-producing real properties. At June 30, 1995, the Partnership
owned four apartment properties and three shopping centers. All of the
Partnership's properties are subject to mortgage notes.
On March 13, 1995, the Partnership refinanced Windrock Apartments with a new
$3,450,000 mortgage note. Proceeds from the new mortgage were used to payoff the
prior first and second mortgage notes encumbering Windrock Apartments, to fund
various escrows for the payment of property taxes, insurance, repairs and
replacements, and to pay for loan fees and other costs associated with obtaining
the new mortgage note. Residual proceeds of approximately $824,000 were added to
the Partnership's cash reserves. The Partnership's next maturing mortgage note
does not come due until April 1, 2002.
RESULTS OF OPERATIONS
---------------------
For the first six months of 1995, the Partnership incurred a loss of $44,746, an
improvement over the $245,303 loss for the first six months of 1994. In the
second quarter of 1995, the Partnership recorded net income of $22,113 as
opposed to a loss of $97,347 in the year earlier quarter. Results from
operations have improved as the Partnership achieved higher rental revenues from
its properties, while limiting the increase in operating expenses.
Revenue:
In the first six months, rental revenue increased $229,562 or 5.3% over rental
revenue achieved during the first six months of 1994. Rental revenue increased
at five of the Partnership's seven properties. Increased rental rates and
improving occupancy rates led to increases ranging from 22% at Redwood Plaza to
6.2% at Country Hills Plaza. Rental revenue realized at Midvale Plaza was
unchanged from 1994 first six months results. Particularly noteworthy was the
9.9% increase in rental revenue at Embarcadero Club Apartments. The Partnership
has invested substantial resources for capital improvements at Embarcadero Club
Apartments that now appear to be paying off in increased rental revenue. A
decrease in average occupancy was responsible for a 5.4% decline in rental
revenue achieved by Windrock Apartments. Several new apartment communities have
been completed in the sub-market in which Windrock Apartments is located. The
General Partner intends to use some of the proceeds from the refinancing of the
Windrock mortgage note to make capital improvements at Windrock Apartments that
will, hopefully, allow the El Paso property to compete effectively against the
newer apartment communities.
Interest revenue increased four-fold to $54,155 during the first six months of
1995. Steps taken during the course of 1994 to raise the Partnership's cash
reserves have resulted in increased funds invested in interest-bearing accounts.
During the second quarter, the Partnership received $39,841 in cash and
securities from Southmark Corporation in settlement of the Partnership's claims
in the Southmark bankruptcy case. The settlement allowed the Partnership to
report net income for the second quarter of 1995.
Expenses:
Partnership expenses increased $110,789 or 2.4% in the first six months of 1995
compared to the same period of 1994. For the second quarter, expenses increased
$57,751 or 2.5% compared to the second quarter of 1994. Expenses increased at
four of the Partnership's seven properties. Expenses were unchanged at
Embarcadero Club Apartments and Midvale Plaza, and decreased 5.6% at Thunder
Hollow Apartments. The increased expenses were concentrated in depreciation and
amortization, and personnel expenses.
Depreciation and amortization expense increased $105,427 or 11.0% in the first
six months of 1995 compared to the first six months of 1994. The increase in
depreciation expense is due to the continuing investment of Partnership
resources into capital improvements. In the year since June 30, 1994, the
Partnership has invested $1.65 million in capital improvements. These capital
improvements are generally being depreciated over lives ranging from five to ten
years.
Personnel expenses increased $37,866 or 8.0% in the first six months of 1995
compared to the first six months of 1994. For the second quarter, personnel
expenses increased a more modest $4,233 or 1.9% compared to the second quarter
of 1994. The Partnership incurred increases in compensation paid to on-site
personnel at all but one of its properties. Personnel expenses have increased
and are expected to continue to increase due to the Partnership's effort to
increase occupancy rates by the continuous refurbishment of residential units
and upgrade of services offered to tenants. Such improvements are partially
achieved through higher maintenance standards that require additional personnel
to implement.
Offsetting the increases discussed above, repair and maintenance expense
decreased $34,852 or 6.8% for the six months ended June 30, 1995 compared to the
same period of 1994. Repair and maintenance expenses were essentially unchanged
for the second quarter. The six-month decrease was concentrated at the
Partnership's residential properties, particularly Thunder Hollow Apartments and
Embarcadero Club Apartments. Extensive capital improvements at these properties
over the past two years have reduced some of the repair and maintenance expenses
that the Partnership would otherwise have incurred.
All other expense items, taken as a group, increased less than 0.1% in the
first six months of 1995 compared to the first six months of 1994.
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
The Partnership's net loss for the first six months was $44,746, an improvement
from the $245,303 loss reported for the first six months of 1994. However, first
half cash flow from operating activities decreased to $616,656 from $1,080,271
in the first six months of 1994. The principal cause of the decrease in cash
flow from operating activities was a $461,950 increase in cash paid to
affiliates. During 1994, the General Partner determined not to collect the
Management Incentive Distribution or the reimbursable administrative costs due
to an affiliate of the General Partner until such time as the Partnership's cash
position improved. Due to these measures, cash reserves increased to $1,045,158
at the end of 1994 from $331,350 at the beginning of 1994. With the additional
cash reserves provided by the March 1995 refinancing of the Windrock mortgage
note, the General Partner determined to resume payments of reimbursable costs.
Consequently, during the first six months, the Partnership paid $294,446 of
reimbursable costs incurred by the Partnership during the course of 1994.
Payments of Management Incentive Distribution remain suspended.
Another factor in the decrease in cash flow from operating activities in the
first half was the refinancing of the Windrock mortgage note. The Partnership
expended $107,525 in loan fees and related costs to obtain the new Windrock
mortgage note. Additionally, $184,172 of the increase in cash paid to suppliers
was the result of various escrows funded with loan proceeds for recurring
replacements and other repairs to Windrock Apartments. Net of the retired
mortgages, loan costs and funded escrows, the Windrock refinancing yielded
proceeds of $824,070 for the Partnership.
The balance of changes in cash flow from operating activities is attributable to
the generally improving performance of the Partnership's properties.
The Partnership continues to invest significant resources into capital
improvements at its properties. During the first half, capital improvement
expenditures increased $485,032 to $816,549. The Partnership has budgeted an
additional $351,000 of capital improvements for the balance of 1995.
Short Term Liquidity:
Due to the General Partner's decision to postpone collection of the Management
Incentive Distribution and proceeds received from the refinancing of the
Windrock mortgage note, the Partnership currently enjoys a substantially better
cash position that it did in 1994. The Partnership's cash reserves will be
needed in light of the aging condition of the Partnership's properties. The
Partnership has budgeted $1.17 million for capital improvements for 1995, in
addition to the $3.54 million of capital improvements made during the past three
years. The General Partner believes these capital improvements are necessary to
allow the Partnership to increase its rental revenues in the competitive markets
in which the Partnership's properties operate. These expenditures also allow the
Partnership to reduce certain repair and maintenance expenses from amounts that
would otherwise be incurred.
At June 30, 1995, the Partnership held $1,700,073 of cash and cash equivalents,
up $654,915 from the balance at the end of 1994. The General Partner considers
this level of cash reserves to be adequate to meet the Partnership's operating
needs for the balance of 1995. The General Partner anticipates that cash
generated from operations for the remainder of 1995 will be sufficient to fund
the Partnership's budgeted capital improvements and debt service requirements.
However, 1995 cash flow from operations likely will not be adequate to pay the
Management Incentive Distribution due to the General Partner. For now, the
General Partner is electing to defer collection of the Management Incentive
Distribution.
Long Term Liquidity:
For the long term, property operations will remain the primary source of funds.
In this regard, the General Partner expects that the capital improvements made
by the Partnership during the past two years will yield improved cash flow from
property operations for the balance of 1995. Furthermore, the General Partner
had budgeted an additional $351,000 of capital improvements for 1995. If the
Partnership's cash position deteriorates, the General Partner may elect to defer
certain of the capital improvements, except where such improvements are expected
to increase the competitiveness or marketability of the Partnership's
properties.
The General Partner has established a revolving credit facility, not to exceed
$5,000,000 in the aggregate, which will be available on a "first-come,
first-served" basis to the Partnership and other affiliated partnerships if
certain conditions are met. Borrowings under the facility may be used to fund
deferred maintenance, refinancing obligations and working capital needs. There
is no assurance that the Partnership will receive additional funds from the
facility because no amount will be reserved for any particular partnership. As
of June 30, 1995, $2,362,004 remained available from the facility; however,
additional funds could become available as other partnerships repay borrowings.
As an additional source of liquidity, the General Partner may, from time to
time, attempt to sell Partnership properties judged to be mature considering the
circumstances of the market in which the properties are located, as well as the
Partnership's need for liquidity. However, there can be no guarantee that the
Partnership will be able to sell any of its properties for an amount sufficient
to retire the related mortgage note and still provide cash proceeds to the
Partnership, or that such proceeds could be timed to coincide with the liquidity
needs of the Partnership. Currently, no Partnership properties are being
marketed for sale.
Distributions:
With the exception of the Contingent MID, distributions to Partners have been
suspended since 1986 as a part of the General Partner's policy of maintaining
adequate cash reserves. Distributions to Unit holders will remain suspended for
the foreseeable future. Although the Partnership recorded a Contingent MID of
$305,150 for the first half of 1995, payments of Contingent MID have been
suspended since the beginning of 1994. The General Partner will continue to
monitor the cash reserves and working capital requirements of the Partnership to
determine when cash flows will support resumption of Contingent MID payments and
distributions to Unit holders.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
------- --------------------
The Partnership is not a party to, nor are any of the Partnership's properties
the subject of, any material pending legal proceedings, other than ordinary
litigation routine to the Partnership's business.
ITEM 5. OTHER INFORMATION
------- -----------------
On an unsolicited basis, High River Limited Partnership ("High River"), a
partnership controlled by Carl Icahn, announced that it has commenced an offer
to purchase 38,940 units of limited partnership interest in the Partnership
(approximately 45 percent of the Partnership's units) at $95 per unit. High
River has stated that the offer is being made as "an investment." The tender
offer is due to expire on August 31, 1995, unless extended.
The General Partner, with assistance from its advisors, is in the process of
evaluating the tender offer from a number of important standpoints and will
report to the limited partners its position with respect to such offer.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
------- --------------------------------
(a) Exhibits.
Exhibit
Number Description
4. Amended and Restated Limited Partnership
Agreement dated September 20, 1991. (1)
11. Statement regarding computation of net loss per
limited partnership unit: net loss per limited
partnership unit is computed by dividing net
loss allocated to the limited partners by the
number of limited partnership units
outstanding. Per unit information has been
computed based on 86,534 limited partnership
units outstanding in 1995 and 1994.
27. Financial Data Schedule for the ended quarter
ended June 30, 1995.
(1) Incorporated by reference to the Annual Report of Registrant, on
Form 10-K for the period ended December 31, 1991, as filed on March
30, 1992.
(b) Reports on Form 8-K. There were no reports on Form 8-K filed during the
quarter ended June 30, 1995.
McNEIL REAL ESTATE FUND XIV, LTD.
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 thereunto duly authorized:
McNEIL REAL ESTATE FUND XIV, Ltd.
By: McNeil Partners, L.P., General Partner
By: McNeil Investors, Inc., General Partner
August 14, 1995 By: /s/ Donald K. Reed
-------------------- -------------------------------------------------
Date Donald K. Reed
President and Chief Executive Officer
August 14, 1995 By: /s/ Robert C. Irvine
-------------------- -------------------------------------------------
Date Robert C. Irvine
Chief Financial Officer of McNeil Investors, Inc.
Principal Financial Officer
August 14, 1995 By: /s/ Brandon K. Flaming
--------------------- --------------------------------------------------
Date Brandon K. Flaming
Chief Accounting Officer of McNeil Real Estate
Management, Inc.
EX-27
2
5
6-MOS
DEC-31-1995
JUN-30-1995
1,700,073
0
446,901
0
0
0
51,887,271
(20,736,821)
35,977,350
0
28,082,158
0
0
0
0
5,802,277
4,580,514
4,674,510
0
0
3,380,237
0
1,339,019
(44,746)
0
(44,746)
0
0
0
(44,746)
0
0