-----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, Be/fiHLHDUCegJpzacRjwgt1+QtNTdJFuDveXlJwIOvqelGagEIWiJnNSgujcLCb eRxvwH3E7y47UdhIgPW2ag== 0001047469-98-027120.txt : 19980714 0001047469-98-027120.hdr.sgml : 19980714 ACCESSION NUMBER: 0001047469-98-027120 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980713 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CONAM REALTY INVESTORS 3 L P 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: 98665342 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 FORMER COMPANY: FORMER CONFORMED NAME: HUTTON CONAM REALTY INVESTORS 3 DATE OF NAME CHANGE: 19920703 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 MAY 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: 0-11769 CONAM REALTY INVESTORS 3 L.P. ---------------------------------------------------- EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER California 13-3176625 ---------- ---------- STATE OR OTHER JURISDICTION OF I.R.S. EMPLOYER IDENTIFICATION NO. INCORPORATION OR ORGANIZATION 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 MAY 31, AT NOVEMBER 30, 1998 1997 - ---------------------------------------------------------------------------------------------------- ASSETS Investments in real estate: Land $ 5,817,668 $ 5,817,668 Buildings and improvements 22,458,164 22,465,678 ------------------------------------------ 28,275,832 28,283,346 Less accumulated depreciation (11,639,646) (11,223,921) ------------------------------------------ 16,636,186 17,059,425 Cash and cash equivalents 863,642 796,824 Restricted cash 113,033 109,843 Other assets, net of accumulated amortization of $227,717 in 1998 and $206,209 in 1997 129,141 109,293 - ---------------------------------------------------------------------------------------------------- TOTAL ASSETS $ 17,742,002 $ 18,075,385 - ---------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------- LIABILITIES AND PARTNERS' CAPITAL Liabilities: Mortgage payable 8,225,421 8,292,972 Distribution payable 133,333 146,659 Accounts payable and accrued expenses 255,284 218,266 Due to general partner and affiliates 15,310 16,703 Security deposits 101,086 101,198 ----------------------------------------- Total Liabilities 8,730,434 8,775,798 ----------------------------------------- Partners' Capital (Deficit): General Partner (981,938) (955,059) Limited Partners (80,000 Units outstanding) 9,993,506 10,254,646 ----------------------------------------- Total Partners' Capital 9,011,568 9,299,587 - ---------------------------------------------------------------------------------------------------- TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 17,742,002 $ 18,075,385 - ---------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. CONAM REALTY INVESTORS 3 L.P. AND CONSOLIDATED VENTURES - ------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MAY 31, SIX MONTHS ENDED MAY 31, 1998 1997 1998 1997 - ------------------------------------------------------------------------------------------------ INCOME Rental $ 911,646 $ 908,287 $ 1,815,206 $1,796,748 Interest and other 1,869 9,549 5,243 21,101 ------------------------------------------------------ Total Income 913,515 917,836 1,820,449 1,817,849 - ------------------------------------------------------------------------------------------------- EXPENSES Property operating 450,879 460,377 900,104 880,554 Depreciation and amortization 229,366 229,769 459,086 458,373 Interest 181,288 184,489 363,402 369,735 General and administrative 61,493 41,168 102,323 88,631 Write-off of assets - - 16,887 - ------------------------------------------------------ Total Expenses 923,026 915,803 1,841,802 1,797,293 - ------------------------------------------------------------------------------------------------ NET INCOME (LOSS) $ (9,511) $ 2,033 $ (21,353) $ 20,556 - ------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------ NET INCOME (LOSS) ALLOCATED: To the General Partner $ (95) $ 204 $ (213) $ 2,056 To the Limited Partners (9,416) 1,829 (21,140) 18,500 - ------------------------------------------------------------------------------------------------ NET INCOME (LOSS) $ (9,511) $ 2,033 $ (21,353) $ 20,556 - ------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------ PER LIMITED PARTNERSHIP UNIT (80,000 UNITS OUTSTANDING) $ (0.12) $ 0.02 $ (0.26) $ 0.23 - -------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL FOR THE SIX MONTHS ENDED MAY 31, 1998
GENERAL LIMITED PARTNER PARTNERS TOTAL - -------------------------------------------------------------------------------------------------------------- BALANCE (DEFICIT) AT NOVEMBER 30, 1997 $ (955,059) $ 10,254,646 $ 9,299,587 Net income (loss) (213) (21,140) (21,353) Distributions ($3.00 per Unit) (26,666) (240,000) (266,666) - -------------------------------------------------------------------------------------------------------------- BALANCE (DEFICIT) AT MAY 31, 1998 $ (981,938) $ 9,993,506 $ 9,011,568 - -------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. CONAM REALTY INVESTORS 3 L.P. AND CONSOLIDATED VENTURES - ------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED MAY 31, 1998 1997 - ------------------------------------------------------------------------------------------------------------------------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ (21,353) $ 20,556 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 459,086 458,373 Write-off of assets 16,887 - Increase (decrease) in cash arising from changes in operating assets and liabilities: Fundings to restricted cash (78,269) (79,974) Release of restricted cash to property operations 75,079 81,926 Other assets (41,356) 6,274 Accounts payable and accrued expenses 37,018 16,547 Due to general partners and affiliates (1,393) (406) Security deposits (112) (8,432) ------------------------------------------ Net cash provided by operating activities 445,587 494,864 - ------------------------------------------------------------------------------------------------------------------------------ CASH FLOWS FROM INVESTING ACTIVITIES: Additions to real estate (85,417) (233,024) Insurance recovery of real estate additions 54,191 - ------------------------------------------ Net cash used for investing activities (31,226) (233,024) - ------------------------------------------------------------------------------------------------------------------------------ CASH FLOWS FROM FINANCING ACTIVITIES: Distributions (279,992) (355,555) Mortgage principal payments (67,551) (69,387) ------------------------------------------ Net cash used for financing activities (347,543) (424,942) - ------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in cash and cash equivalents 66,818 (163,102) Cash and cash equivalents, beginning of period 796,824 1,084,483 - ------------------------------------------------------------------------------------------------------------------------------ CASH AND CASH EQUIVALENTS, END OF PERIOD $ 863,642 $ 921,381 - ------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------------------------ SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for interest $ 329,123 $ 369,735 - ------------------------------------------------------------------------------------------------------------------------------ SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING ACTIVITIES: Write-off of buildings and improvements $ (38,740) $ - Write-off of accumulated depreciation $ 21,853 $ - - ------------------------------------------------------------------------------------------------------------------------------
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 recurring adjustments which are, in the opinion of management, necessary to present a fair statement of financial position as of May 31, 1998 and the results of operations and cash flows for the three and six months ended May 31, 1998 and 1997 and the consolidated statement of partners' capital for the six months ended May 31, 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 May 31, 1998, the Partnership had cash and cash equivalents of $863,642 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, lower distributions, and the insurance recovery of $54,191 for defective roofing repairs. 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 May 31, 1998 which is to be paid in July, 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 and six months ended May 31, 1998 generated net losses of ($9,511 )and ($21,353), respectively, compared with net income of $2,033 and $20,556, respectively, for the corresponding periods in fiscal 1997. The decrease for the three months ended May 31, 1998 is primarily attributable to an increase in general and administrative expenses partially off-set by an increase in rental income and a decrease in property operating expense. The decrease for the six months ended May 31, 1998 is primarily attributable to an increase in property operating expenses and general and administrative expenses and a write-off of assets of $16,887 in the first quarter somewhat offset by the increase in rental income in both periods. Rental income totaled $911,646 and $1,815,206 for the three and six months, respectively, ended May 31, 1998 compared with $908,287 and $1,796,748, respectively, for the corresponding periods in fiscal 1997 resulting from an increase in rental income primarily from Ponte Vedra Beach Village II as a result of an increase in occupancy rates. Property operating expenses for the three and six months ended May 31, 1998 totaled $450,879 and $900,104, respectively, compared with $460,377 and $880,554, respectively, for the corresponding period in fiscal 1997. The decrease for the three months ended May 31, 1998 is due to a decrease in rental administration expenses. The increase for the six months ended May 31, 1998 is primarily attributable to increased utilities expense. During the first six months of fiscal 1998 and 1997, average occupancy levels at the Partnership's properties were as follows:
PROPERTY 1998 1997 - ---------------------------------------------------------------------------- Autumn Heights 93% 91% Ponte Vedra Beach Village II 94% 93% Skyline Village 96% 95% - ----------------------------------------------------------------------------
The increases at Autumn Heights and Ponte Vedra Beach Village II are primarily attributable to competitive rents which have been offered to mitigate the strong competition associated with increased construction in Colorado and Florida, respectively. The Tucson market is improving from its overbuilt situation of two years ago, resulting in stable occupancy at Skyline Village, however, rental concessions are still required to maintain current occupancy levels. 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. CONAM PROPERTY SERVICES IV, LTD. General Partner of ConAm Realty Investors 3 L.P. BY: CONTINENTAL AMERICAN DEVELOPMENT, INC. GENERAL PARTNER Date: July 13, 1998 BY: /s/ DANIEL J. EPSTEIN ----------------- Daniel J. Epstein Director, President, and Principal Executive Officer Date: July 13, 1998 BY: /s/ ROBERT J. SVATOS ---------------- Robert J. Svatos Vice President and Director 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 - No reports on Form 8-K were filed during the quarter ended May 31, 1998. EX-27 2 EXHIBIT 27
5 6-MOS NOV-30-1998 DEC-01-1997 MAY-31-1998 976,675 0 0 0 0 0 28,275,832 (11,639,646) 17,742,002 505,013 8,225,421 0 0 0 9,011,568 17,742,002 1,815,206 1,820,449 0 900,104 578,296 0 363,402 (21,353) 0 (21,353) 0 0 0 (21,353) (0.26) (0.26)
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