-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, tiKmUtxcwy8Z6M0TLiKpzKjJpfM0k9+u4m0bNelT667Oc9Q6nLH9/KDaUsO1hz0b XUormtUqqShuXC256kPqvQ== 0000761310-95-000001.txt : 19950428 0000761310-95-000001.hdr.sgml : 19950428 ACCESSION NUMBER: 0000761310-95-000001 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950228 FILED AS OF DATE: 19950414 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: HUTTON CONAM REALTY INVESTORS 3 CENTRAL INDEX KEY: 0000711389 STANDARD INDUSTRIAL CLASSIFICATION: 6500 IRS NUMBER: 133176625 STATE OF INCORPORATION: CA FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-11769 FILM NUMBER: 95528788 BUSINESS ADDRESS: STREET 1: 3 WORLD FINANCIAL CENTER STREET 2: 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 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 February 28, 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: 0-11769 HUTTON/CONAM REALTY INVESTORS 3 (Exact name of registrant as specified in its charter) California 13-3176625 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 3 World Financial Center, 29 Floor, New York, NY 10285 (Address of principal executive offices) (Zip Code) (212) 526-3237 (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 Consolidated Balance Sheets February 28, November 30, Assets 1995 1994 Investments in real estate: Land $ 7,220,465 $ 7,220,465 Buildings and improvements 26,561,032 26,508,961 33,781,497 33,729,426 Less- accumulated depreciation (10,904,099) (10,629,776) 22,877,398 23,099,650 Cash and cash equivalents 4,134,496 4,213,148 Restricted cash 96,205 57,980 Other assets, net of accumulated amortization of $87,914 in 1995 and $77,160 in 1994 218,435 242,868 Total Assets $ 27,326,534 $ 27,613,646 Liabilities and Partners' Capital Liabilities: Mortgages payable $ 11,563,617 $ 11,598,519 Distribution payable 222,222 311,111 Accounts payable and accrued expenses 169,688 137,709 Due to general partners and affiliates 38,388 38,007 Security deposits 158,147 161,667 Total Liabilities 12,152,062 12,247,013 Partners' Capital (Deficit): General Partners (792,730) (773,514) Limited Partners 15,967,202 16,140,147 Total Partners' Capital 15,174,472 15,366,633 Total Liabilities and Partners' Capital $ 27,326,534 $ 27,613,646 Consolidated Statement of Partners' Capital (Deficit) For the three months ended February 28, 1995 General Limited Partners Partners Total Balance at December 1, 1994 $ (773,514) $ 16,140,147 $ 15,366,633 Net income 3,006 27,055 30,061 Cash distributions (22,222) (200,000) (222,222) Balance at February 28, 1995 $ (792,730) $ 15,967,202 $ 15,174,472 Consolidated Statements of Operations For the three months ended February 28, 1995 and 1994 Income 1995 1994 Rental $ 1,069,833 $ 1,013,392 Interest 54,273 35,688 Total Income 1,124,106 1,049,080 Expenses Property operating 511,550 406,959 Depreciation and amortization 285,077 281,967 Interest 264,640 267,699 General and administrative 32,778 38,677 Total Expenses 1,094,045 995,302 Net Income $ 30,061 $ 53,778 Net Income Allocated: To the General Partners $ 3,006 $ 5,378 To the Limited Partners 27,055 48,400 $ 30,061 $ 53,778 Per limited partnership unit (80,000 outstanding) $.34 $.61 Consolidated Statements of Cash Flows For the three months ended February 28, 1995 and 1994 Cash Flows from Operating Activities: 1995 1994 Net income $ 30,061 $ 53,778 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 285,077 281,967 Increase (decrease) in cash arising from changes in operating assets and liabilities: Fundings to restricted cash (64,454) (31,761) Release of restricted cash to property operations 26,229 23,888 Other assets 13,679 53,629 Accounts payable and accrued expenses 31,979 29,004 Due to general partners and affiliates 381 4,036 Security deposits (3,520) 3,300 Net cash provided by operating activities 319,432 417,841 Cash Flows from Investing Activities: Additions to real estate (52,071) (26,465) Net cash used for investing activities (52,071) (26,465) Cash Flows from Financing Activities: Mortgage borrowings -- 5,500,000 Mortgage principal payments (34,902) (4,437,435) Distributions (311,111) (2,622,222) Refund of deposit on mortgage refinancing -- 55,000 Mortgage fees -- (50,473) Net cash used for financing activities (346,013) (1,555,130) Net decrease in cash and cash equivalents (78,652) (1,163,754) Cash and cash equivalents at beginning of period 4,213,148 5,775,115 Cash and cash equivalents at end of period $ 4,134,496 $ 4,611,361 Supplemental Disclosure of Cash Flow Information: Cash paid during the period for interest $ 264,640 $ 267,699 Notes to Consolidated Financial Statements The unaudited interim financial statements should be read in conjunction with the Partnership's annual 1994 audited financial statements within Form 10-K. The unaudited financial statements include all adjustments consisting of only normal recurring accruals which are, in the opinion of management, necessary to present a fair statement of financial position as of February 28, 1995 and the results of operations, changes in partners' capital and cash flows for the three months then ended. 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 fiscal 1994, and no material contingencies exist which would require disclosure in this interim report per Regulation S-X, Rule 10-01, Paragraph (a)(5). Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources At February 28, 1995, the Partnership had cash and cash equivalents of $4,134,496, which were invested in both affiliated and unaffiliated money market funds. The Partnership also maintains a restricted cash balance, which totaled $96,205 at February 28, 1995, representing real estate tax escrows required under the terms of the Autumn Heights and Skyline Village loans. The Partnership expects sufficient cash to be generated from operations to meet its current operating expenses. On July 15, 1995, the loan secured by Country Place II, in the amount $2,900,075, will mature. The General Partners previously determined that it would be in the Partnership's best interests to pay-off this loan at maturity due to the likely principal paydown and significant expenses associated with a refinancing. As a result of improving market conditions, the General Partners are currently marketing some of the properties for sale and recently entered into preliminary negotiations with an institutional buyer to sell Country Place II. There can be no assurance, however, that the sale will be completed or that any particular price for the property can be obtained. Should the sale close prior to the July 15, 1995 maturity date, net sale proceeds will first be applied to repay the loan and the balance will be distributed to the Limited Partners as a return of capital. In addition, the General Partners will likely return reserves held specifically against the Country Place Village II loan. If the sale does not occur or closes after July 15, 1995 the Partnership's reserves will be used to repay the loan. The General Partners declared a cash distribution of $2.50 per Unit for the quarter ended February 28, 1995, which was paid to investors on April 18, 1995. The level and timing of future distributions will be reviewed on a quarterly basis by the General Partners. Results of Operations Partnership operations for the three months ended February 28, 1995 resulted in net income of $30,061, compared with net income of $53,778 for the corresponding period in fiscal 1994. After adding back depreciation and amortization, both non-cash expenses, and subtracting mortgage amortization, operations generated cash flow of $280,236 for the three months ended February 28, 1995, compared with cash flow of $309,525 for the corresponding period in fiscal 1994. The decrease in net income and cash flow for the three months ended February 28, 1995 is primarily attributable to an increase in property operating expenses, partially offset by an increase in rental income. Rental income for the three months ended February 28, 1995 totalled $1,069,833, compared with $1,013,392 for the corresponding period in fiscal 1994. The increase reflects higher rental income at all of the Partnership's properties during 1995, particularly Autumn Heights, due to increased rental rates, as well as augmented revenue derived from renting furniture and appliances. Total expenses for the three months ended February 28, 1995 were $1,094,045, compared with $995,302 for the corresponding period in fiscal 1994. The increase in total expenses is due primarily to an increase in property operating expenses, in particular repair and maintenance expenses, which increased at all of the Partnership's properties. The largest increase was at Autumn Heights, reflecting the cost of painting the building's exteriors. Real estate taxes and rental administrative expenses also increased at all of the Partnership's properties. For the three months ended February 28, 1995 and 1994, average occupancy levels at each of the properties were as follows: Three Months Ended February 28, Property 1995 1994 Autumn Heights 96% 97% Ponte Vedra Beach Village II 94% 93% Skyline Village 97% 98% Country Place Village II 95% 96% PART II OTHER INFORMATION Items 1-5 Not applicable Item 6 Exhibits and Reports on Form 8-K. (a) Exhibits: None (b) Reports on Form 8-K - No reports on Form 8-K were filed during the three month period covered by this report. SIGNATURES Pursuant to the requirements of Section 13 or 15(d) 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. HUTTON/CONAM REALTY INVESTORS 3 BY: RI 3-4 Real Estate Services, Inc. General Partner Dated: April 13, 1995 BY: /S/ Paul L. Abbott Name: Paul L. Abbott Title: Director, President, Chief Executive Officer and Chief Financial Officer EX-27 2 RI-3 FINANCIAL DATA SCHEDULE FOR 1995 FIRST QTR 10-Q
5 3-MOS NOV-30-1995 FEB-28-1995 4,230,701 000 000 000 000 000 33,781,497 10,904,099 27,326,534 000 11,563,617 000 000 000 15,174,472 27,326,534 000 1,124,106 000 511,550 317,855 000 264,640 000 000 000 000 000 000 30,061 .34 .34
-----END PRIVACY-ENHANCED MESSAGE-----