-----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, Ak7hA98OMOTAkVjikRRe+GtUh6C1brMvy8y8i+2F93fjQqWTdKxCRi5FnNfdv+3I BiBsid30g1m9/tO2XdVzZA== 0001047469-98-037358.txt : 19981016 0001047469-98-037358.hdr.sgml : 19981016 ACCESSION NUMBER: 0001047469-98-037358 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980831 FILED AS OF DATE: 19981015 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: 98725963 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 FORM 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 AUGUST 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 AUGUST 31, AT NOVEMBER 30, 1998 1997 ------------------------------------------------------------------------------------------------------------ ASSETS Investments in real estate: Land $ 5,817,668 $ 5,817,668 Buildings and improvements 22,506,515 22,465,678 -------------------------------------------- 28,324,183 28,283,346 Less accumulated depreciation (11,833,274) (11,223,921) -------------------------------------------- 16,490,909 17,059,425 Cash and cash equivalents 852,951 796,824 Restricted cash 132,846 109,843 Other assets, net of accumulated amortization of $238,471 in 1998 and $206,209 in 1997 142,026 109,293 ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ TOTAL ASSETS $ 17,618,732 $ 18,075,385 ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------ LIABILITIES AND PARTNERS' CAPITAL Liabilities: Mortgages payable 8,191,266 8,292,972 Distribution payable 133,333 146,659 Accounts payable and accrued expenses 323,380 218,266 Due to general partner and affiliates 15,397 16,703 Security deposits 101,113 101,198 -------------------------------------------- Total Liabilities 8,764,489 8,775,798 -------------------------------------------- Partners' Capital General Partner (995,512) (955,059) Limited Partners (80,000 Units outstanding) 9,849,755 10,254,646 -------------------------------------------- Total Partners' Capital 8,854,243 9,299,587 ------------------------------------------------------------------------------------------------------------ TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 17,618,732 $ 18,075,385 ------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED NINE MONTHS ENDED AUGUST 31, AUGUST 31, 1998 1997 1998 1997 - -------------------------------------------------------------------------------------------------------------------- INCOME Rental $ 918,651 $ 881,207 $ 2,733,857 $ 2,677,955 Interest and other 7,465 7,864 12,708 28,965 ---------------------------------------------------------------------------- Total Income 926,116 889,071 2,746,565 2,706,920 - -------------------------------------------------------------------------------------------------------------------- EXPENSES Property operating 455,940 432,699 1,356,044 1,313,253 Depreciation and amortization 229,604 231,094 688,690 689,467 Interest 180,441 183,714 543,843 553,449 General and administrative 39,330 35,812 141,653 124,443 Write-off of assets 44,793 - 61,680 - ---------------------------------------------------------------------------- Total Expenses 950,108 883,319 2,791,910 2,680,612 - -------------------------------------------------------------------------------------------------------------------- NET INCOME (LOSS) $ (23,992) $ 5,752 $ (45,345) $ 26,308 - -------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------- NET INCOME (LOSS) ALLOCATED: To the General Partner $ (240) $ 575 $ (454) $ 2,631 To the Limited Partners (23,752) 5,177 (44,891) 23,677 - -------------------------------------------------------------------------------------------------------------------- NET INCOME (LOSS) $ (23,992) $ 5,752 $ (45,345) $ 26,308 - -------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------- PER LIMITED PARTNERSHIP UNIT (80,000 UNITS OUTSTANDING) $ (0.30) $ 0.07 $ (0.56) $ 0.30 - -------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL FOR THE NINE MONTHS ENDED AUGUST 31, 1998
GENERAL LIMITED PARTNER PARTNERS TOTAL - ---------------------------------------------------------------------------------------------------------- BALANCE (DEFICIT) AT NOVEMBER 30, 1997 $ (955,059) $ 10,254,646 $ 9,299,587 Net income (loss) (454) (44,891) (45,345) Distributions ($4.50 per Unit) (39,999) (360,000) (399,999) - ---------------------------------------------------------------------------------------------------------- BALANCE (DEFICIT) AT AUGUST 31, 1998 $ (995,512) $ 9,849,755 $ 8,854,243 - ---------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED AUGUST 31, 1998 1998 1997 - ------------------------------------------------------------------------------------------------------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ (45,345) $ 26,308 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 688,690 689,467 Write-off of assets 61,680 - Increase (decrease) in cash arising from changes in operating assets and liabilities: Fundings to restricted cash (107,082) (119,936) Release of restricted cash to property operations 84,079 81,926 Other assets (64,995) 28,127 Accounts payable and accrued expenses 105,114 68,458 Due to general partner and affiliates (1,306) (1,063) Security deposits (85) (15,268) ---------------------------------- Net cash provided by operating activities 720,750 758,019 - ------------------------------------------------------------------------------------------------------------ CASH FLOWS FROM INVESTING ACTIVITIES: Additions to real estate (203,783) (353,096) Insurance recovery of real estate additions 54,191 - ---------------------------------- Net cash used for investing activities (149,592) (353,096) - ------------------------------------------------------------------------------------------------------------ CASH FLOWS FROM FINANCING ACTIVITIES: Mortgage principal payments (101,706) (105,234) Distributions (413,325) (488,889) ---------------------------------- Net cash used for financing activities (515,031) (594,123) - ------------------------------------------------------------------------------------------------------------ Net increase (decrease) in cash and cash equivalents 56,127 (189,200) Cash and cash equivalents, beginning of period 796,824 1,084,483 - ------------------------------------------------------------------------------------------------------------ CASH AND CASH EQUIVALENTS, END OF PERIOD $ 852,951 $ 895,283 - ------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------------------ SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for interest $ 483,791 $ 553,449 - ------------------------------------------------------------------------------------------------------------ SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING ACTIVITIES: Write-off of buildings and improvements $ (108,755) $ - Write-off of accumulated depreciation $ (47,075) $ - - ------------------------------------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS The unaudited interim consolidated financial statements should be read in conjunction with the Partnership's 1997 Annual Report. 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 August 31, 1998 and the results of operations for the three and nine months ended August 31, 1998 and 1997, consolidated cash flows for the nine months ended August 31, 1998 and 1997, and the statement of consolidated partners' capital for the nine months ended August 31, 1998. Results of operations for the periods 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). PART I, ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS LIQUIDITY AND CAPITAL RESOURCES At August 31, 1998, the Partnership had cash and cash equivalents of $852,951 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 August 31, 1998 which is to be paid in October, 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 nine months ended August 31, 1998 generated net losses of ($23,992) and ($45,345), respectively, compared with net income of $5,752 and $26,308, respectively, for the corresponding periods in fiscal 1997. The decrease for the three months ended August 31, 1998 is primarily attributable to an increase in property operating expenses and a write-off of assets of $44,793, partially off-set by an increase in rental income. The decrease for the nine months ended August 31, 1998 is primarily attributable to an increase in property operating expenses and general and administrative expenses and a write-off of assets of $61,680, somewhat offset by the increase in rental income. Rental income totaled $918,651 and $2,733,857 for the three and nine months, respectively, ended August 31, 1998 compared with $881,207 and $2,677,955, respectively, for the corresponding periods in fiscal 1997 resulting from an increase in rental income primarily from increased rental rates at Autum Heights and Ponte Vedra Beach Village II and increased occupancy at Skyline Village. Property operating expenses for the three and nine months ended August 31, 1998 totaled $455,940 and $1,356,044, respectively, compared with $432,699 and $1,313,253, respectively, for the corresponding period in fiscal 1997. The increase for the three months ended August 31, 1998 is due to an increase in rental administration expenses. The increase for the nine months ended August 31, 1998 is primarily attributable to increased utilities expense. During the first nine months of fiscal 1998 and 1997, average occupancy levels at the Partnership's properties were as follows:
PROPERTY 1998 1997 ------------------------------------------------------------------- Autumn Heights 94% 94% Ponte Vedra Beach Village II 92% 94% Skyline Village 94% 90% -------------------------------------------------------------------
The decreae in occupancy at Ponte Vedra Beach Village II is due to strong competition associated with increased construction in Florida. This decrease in occupancy is off-set by increased rental rates resulting in increased total rental income. The Tucson market continues to improve from its overbuilt situation of two years ago, resulting in increased occupancy and total rental income at Skyline Village, however, rental concessions are still required to maintain current occupancy levels. 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 August 31, 1998. 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: October 13, 1998 BY:/s/ DANIEL J. EPSTEIN ----------------- Daniel J. Epstein Director, President, and Principal Executive Officer Date: October 13, 1998 BY:/s/ ROBERT J. SVATOS ---------------- Robert J. Svatos Vice President and Director EX-27 2 EXHIBIT 27
5 9-MOS NOV-30-1998 DEC-01-1997 AUG-31-1998 985,797 0 0 0 0 0 28,324,183 11,833,274 17,618,732 573,223 8,191,266 0 0 0 8,854,243 17,618,732 2,733,857 2,746,565 0 1,356,044 892,023 0 543,843 (45,345) 0 (45,345) 0 0 0 (45,345) (0.56) (0.56)
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