-----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, GiElICZZuIgyQ7tUx0BWv/09PLhRjlQF08xhFO+8LARbKhkvDoA3zDc+pqhbkPI6 FBhvawAGdSnici10aR0vgw== 0001047469-98-014989.txt : 19980415 0001047469-98-014989.hdr.sgml : 19980415 ACCESSION NUMBER: 0001047469-98-014989 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980228 FILED AS OF DATE: 19980414 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: HUTTON CONAM REALTY INVESTORS 3 CENTRAL INDEX KEY: 0000711389 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 133176625 STATE OF INCORPORATION: CA FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-11769 FILM NUMBER: 98593697 BUSINESS ADDRESS: STREET 1: 1764 SAN DIEGO AVE STREET 2: ATTN: ROBERT J SVATOS CITY: SAN DIEGO STATE: CA ZIP: 92100 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 FEBRUARY 28, 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: 0-11769 CONAM REALTY INVESTORS 3 L.P. ----------------------------- formerly known as HUTTON/CONAM REALTY INVESTORS 3 --------------------------------------------------- EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER California 13-3176625 --------------------------- ------------------ STATE OR OTHER JURISDICTION I.R.S. EMPLOYER OF INCORPORATION OR ORGANIZATION IDENTIFICATION NO. 1764 San Diego Avenue San Diego, Ca. 92110 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 3 L.P. AND CONSOLIDATED VENTURES
CONSOLIDATED BALANCE SHEETS AT FEBRUARY 28, AT NOVEMBER 30, 1998 1997 --------------- --------------- ASSETS Investments in real estate: Land $ 5,817,668 $ 5,817,668 Buildings and improvements 22,482,432 22,465,678 --------------- --------------- 28,300,100 28,283,346 Less accumulated depreciation (11,424,591) (11,223,921) --------------- --------------- 16,875,509 17,059,425 Cash and cash equivalents 841,255 796,824 Restricted cash 108,748 109,843 Other assets, net of accumulated amortization of $216,963 in 1998 and $206,209 in 1997 106,020 109,293 --------------- --------------- TOTAL ASSETS $ 17,931,532 $ 18,075,385 --------------- --------------- --------------- --------------- LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) Liabilities: Mortgage payable 8,268,098 8,292,972 Distribution payable 133,333 146,659 Accounts payable and accrued expenses 262,283 218,266 Due to general partners and affiliates 15,562 16,703 Security deposits 97,844 101,198 --------------- --------------- Total Liabilities 8,777,120 8,775,798 --------------- --------------- Partners' Capital (Deficit): General Partner (968,510) (955,059) Limited Partners (80,000 Units outstanding) 10,122,922 10,254,646 --------------- --------------- Total Partners' Capital 9,154,412 9,299,587 --------------- --------------- TOTAL LIABILITIES AND PARTNERS' CAPITAL (DEFICIT) $ 17,931,532 $18,075,385 --------------- --------------- --------------- ---------------
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. CONAM REALTY INVESTORS 3 L.P. AND CONSOLIDATED VENTURES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED FEBRUARY 28,
1998 1997 ---------- ---------- INCOME Rental $ 903,560 $ 888,461 Interest and other 3,374 11,552 ---------- ---------- Total Income 906,934 900,013 ---------- ---------- EXPENSES Property operating 449,225 420,177 Depreciation and amortization 229,720 228,604 Interest 182,114 185,246 General and administrative 40,830 47,463 Write-off of assets 16,887 - ---------- ---------- Total Expenses 918,776 881,490 ---------- ---------- NET INCOME (LOSS) $ (11,842) $ 18,523 ---------- ---------- ---------- ---------- NET INCOME (LOSS) ALLOCATED: To the General Partner $ (118) $ 1,852 To the Limited Partners (11,724) 16,671 ---------- ---------- NET INCOME (loss) $ (11,842) $ 18,523 ---------- ---------- ---------- ---------- PER LIMITED PARTNERSHIP UNIT (80,000 UNITS OUTSTANDING) $ (0.15) $ 0.21 ---------- ----------
CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL (DEFICIT) FOR THE THREE MONTHS ENDED FEBRUARY 28, 1998
GENERAL LIMITED PARTNER PARTNERS TOTAL ------------ -------------- ------------ BALANCE AT NOVEMBER 30, 1997 $ (955,059) $ 10,254,646 $ 9,299,587 Net income (loss) (118) (11,724) (11,842) Distributions ($1.50 per Unit) (13,333) (120,000) (133,333) ------------ -------------- ------------ BALANCE AT FEBRUARY 28, 1998 $ (968,510) $ 10,122,922 $ 9,154,412 ------------ -------------- ------------ ------------ -------------- ------------
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. CONAM REALTY INVESTORS 3 L.P. AND CONSOLIDATED VENTURES
- -------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED FEBRUARY 28, 1998 1997 - -------------------------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ (11,842) $ 18,523 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 229,720 228,604 Write-off of assets 16,887 - Increase (decrease) in cash arising from changes in operating assets and liabilities: Fundings to restricted cash (17,505) (40,003) Release of restricted cash to property operations 18,600 - Other assets (7,481) 5,791 Accounts payable and accrued expenses 44,017 11,318 Due to general partners and affiliates (1,141) (850) Security deposits (3,354) (10,077) ------------------------- Net cash provided by operating activities 267,901 213,306 - -------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES: Additions to real estate (51,937) (87,985) - -------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES: Distributions (146,659) (222,222) Mortgage principal payments (24,874) (34,315) ------------------------- Net cash used for financing activities (171,533) (256,537) - -------------------------------------------------------------------------------- Net increase (decrease) in cash and cash equivalents 44,431 (131,216) Cash and cash equivalents, beginning of period 796,824 1,084,483 - -------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 841,255 $ 953,267 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for interest $ 121,501 $ 185,246 - -------------------------------------------------------------------------------- SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING ACTIVITIES: Write-off of buildings and improvements $ (35,183) $ - Write-off of accumulated depreciation $ 18,296 $ - - --------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. CONAM REALTY INVESTORS 3 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 reoccurring adjustments which are, in the opinion of management, necessary to present a fair statement of financial position as of February 28, 1998 and the results of operations and cash flows for the three months ended February 28, 1998 and 1997 and the consolidated statement of partners' capital (deficit) for the three months ended February 28, 1998. Results of operations are not necessarily indicative of the results to be expected for the full year. No significant events have occurred subsequent to fiscal year 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 3 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 February 28, 1998, the Partnership had cash and cash equivalents of $841,255 which were invested in unaffiliated money market funds, compared with $796,824 at November 30, 1997. The increase in cash and cash equivalents is due to less cash being used for fixed assets additions and distributions. The Partnership's restricted cash balance totaled $108,748 at February 28, 1998 compared to $109,843 at November 30, 1997. 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 $1.50 per unit for the quarter ended February 28, 1998 which is to be paid in April, 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 February 28, 1998 generated a net loss of $(11,842) compared with net income of $18,523 for the corresponding period in fiscal 1997. The decrease for the three month period is primarily attributable to an increase in property operating expenses of $29,048 and a write-off of assets of $16,887, somewhat offset by the increase in rental income of $15,099. Rental income totaled $903,560 for the three months ended February 28, 1998 compared with $888,461 for the corresponding period in fiscal 1997 resulting from an increase in occupancy rates at Skyline Village and Ponte Vedra Beach Village II. Property operating expenses for the three months ended February 28, 1998 totaled $449,225 compared with $420,177 for the corresponding period in fiscal 1997. The increase is primarily attributable to an increase in repairs and maintenance expense. During the first three months of fiscal 1998 and 1997, average occupancy levels at the Partnership's properties were as follows:
PROPERTY 1998 1997 -------- ---- ---- Autumn Heights 91% 92% Ponte Vedra Beach Village II 94% 91% Skyline Village 97% 93%
The increases at Ponte Vedra Beach Village II and Skyline Village are primarily attributable to overall economic growth in Florida and Arizona, respectively. CONAM REALTY INVESTORS 3 L.P. AND CONSOLIDATED VENTURES
OTHER INFORMATION PART II Not applicable ITEMS 1-5 Exhibits and reports on Form 8-K ITEMS 6 (a) Exhibits (27) Financial Data Schedule (b) Reports on Form 8-K
On December 15, 1997 ConAm Realty Investors 3 L.P. filed a Form 8-K (amended on December 17, 1997 by Form 8-K/A) regarding its change of auditors from Coopers & Lybrand L.L.P. to KPMG Peat Marwick LLP. The response from Coopers & Lybrand L.L.P. indicated that there were no disagreements on any matters of accounting principles or practices, financial statement disclosure, or auditing scope procedure. On February 3, 1998 ConAm Realty Investors 3 L.P. filed a Form 8-K regarding a change in general partner ownership and the name change from Hutton/ConAm Realty Investors 3 to ConAm Realty Investors 3 L.P. EX-27 2 FDS
5 3-MOS NOV-30-1998 NOV-30-1997 FEB-28-1998 950,003 0 0 0 0 0 28,300,100 (11,424,591) 17,931,532 509,022 8,268,098 0 0 0 9,154,412 17,931,532 903,560 906,934 0 449,225 287,437 0 182,114 (11,842) 0 (11,842) 0 0 0 (11,842) 0 0
-----END PRIVACY-ENHANCED MESSAGE-----