-----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, MyMOY99D63zzyZq2XrT2mICMdw5W1eiWNHUx3hdsNE4qgWQKtwlUuIysdHmhzMy9 G+M8RdwyOgB2Bn7mvnq82A== 0000017294-96-000005.txt : 19960515 0000017294-96-000005.hdr.sgml : 19960515 ACCESSION NUMBER: 0000017294-96-000005 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960514 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN REPUBLIC REALTY FUND I CENTRAL INDEX KEY: 0000711512 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 391421936 STATE OF INCORPORATION: WI FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-11578 FILM NUMBER: 96563077 BUSINESS ADDRESS: STREET 1: 16415 ADDISON RD STE 200 CITY: DALLAS STATE: TX ZIP: 75248 BUSINESS PHONE: 2143808000 MAIL ADDRESS: STREET 1: 16415 ADDISON ROAD STREET 2: SUITE 200 CITY: DALLAS STATE: TX ZIP: 75248 10-Q 1 3 SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarter Ended March 31, 1996 Commission file number 0-11578 AMERICAN REPUBLIC REALTY FUND I (Exact name of registrant as specified in its charter) WISCONSIN 39-1421936 (State or other jurisdiction of (IRS Employer incorporation or organization Identification Number) 6210 Campbell Road Suite 140 Dallas, Texas 75248 (Address of principal executive offices) Registrant's telephone number, including area code: (214) 380-8000. 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: Y No: REGISTRANT IS A LIMITED PARTNERSHIP TABLE OF CONTENTS Item 1. Financial Statements The following Unaudited financial statements are filed herewith: Consolidated Balance Sheet as of March 31, 1996 and December 31, 1995 Page 3 Consolidated Statements of Operations for the Three Months Ended March 31, 1996 and 1995 Page 4 Consolidated Statements of Cash Flows for the Three Months Ended March 31, 1996 and 1995 Page 5 Notes to Consolidated Financial Statement Page 6 Item 2. Results of Operations and Management's Discussion and Analysis of Financial Condition Page 7 Liquidity and Capital Resources Page 8 Other Information Page 9 Signatures Page 10 The statements, insofar as they relate to the period subsequent to December 31, 1995, are Unaudited. PART 1. FINANCIAL INFORMATION Item 1. Financial Statements AMERICAN REPUBLIC REALTY FUND I Condensed Consolidated Balance Sheets March 31, December 31, 1996 1995 (Unaudited) ASSETS Real Estate assets, at cost $1,822,718 $1,822,718 Land 14,925,164 14,925,164 Buildings and improvements 16,747,882 16,747,882 Less: Accumulated depreciation (7,948,822) (7,793,822) Real Estate, net 8,799,060 8,954,060 Cash including cash investments 36,280 19,047 Escrow deposits 192,412 102,508 Prepaid Expenses 13,314 23,596 Other assets 8,000 0 TOTAL ASSETS $9,049,066 $9,099,211 LIABILITIES AND PARTNERS' EQUITY: LIABILITES Mortgage and notes payable $7,798,774 $7,998,325 Note Payable toaffiliates 2,982,525 3,108,081 Amounts due affiliates 1,153,585 1,120,323 Real estate taxes payable 46,900 0 Security deposits 51,151 51,418 Accounts payable & accrued expenses 155,443 54,262 Total liabilities 12,188,378 12,332,409 PARTNERS CAPITAL (DEFICIT) Limited Partners (3,193,614) (3,286,561) General Partner 54,302 53,363 Total Partners Capital (Deficit) (3,139,312) (3,233,198) TOTAL LIABILITES AND PARTNER DEFICIT $9,049,066 $9,099,211 See notes to Condensed Consolidated Financial Statements AMERICAN REPUBLIC REALTY FUND I Condensed Consolidated Statement of Operations (Unaudited) Three Months Ended March 31, REVENUES 1996 1995 Rental income $595,630 $580,264 Other property 6,687 11,413 Total revenues 602,317 591,677 EXPENSES Salaries & wages 62,823 59,133 Maintenance & repairs 34,239 31,714 Utilities 44,591 41,358 Real estate taxes 60,900 45,300 General administrative 20,443 20,255 Contract services 20,214 24,020 Insurance 11,321 11,684 Interest 68,480 81,341 Depreciation and amortization 155,000 150,000 Property management fees (a) 30,420 29,582 Total expenses 508,431 494,387 NET INCOME (LOSS) $93,886 $97,290 NET INCOME PER UNITS $8.54 $8.84 See Notes to Condensed Consolidated Financial Statements AMERICAN REPUBLIC REALTY FUND I Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 1996 1995 CASH FLOWS FROM OPERATING ACITIVTY Net income (loss) $93,886 $97,290 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 155,000 150,000 Net Effect of changes in operating accounts Escrow deposits (89,904) (96,942) Prepaid expenses 10,282 13,291 Accrued real estate taxes 46,900 43,972 Security deposits (267) 365 Accounts payable 101,181 76,829 Other assets (8,000) (8,000) Net cash provided by (used for) operating 309,078 276,805 activities CASH FLOWS FROM INVESTING ACTIVITES Repayment of mortgage notes payable (199,551) (217,724) Repayment of notes payable to affiliates (125,556) Proceeds from amounts due affiliates 33,262 41,862 Repayment of amounts due affiliates (43,245) Net cash used for investing activities (291,845) (219,107) NET INCREASE (DECREASE) IN CASH AND CASH 17,233 57,698 EQUVILENTS CASH AND CASH EQUIVELNTS, BEGINNING OF PERIOD 19,047 107,289 CASH AND CASH EQUIVELNTS, END OF PERIOD $36,280 $164,987 See Notes to Condensed Consolidated Financial Statements Basis of Presentation: Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Partnership believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Partnership's latest annual report on Form 10-K. Item 2. RESULTS OF OPERATIONS AND MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION Results of Operations FIRST QUARTER 1996 COMPARED TO FIRST QUARTER 1995 At March 31, 1996 the Partnership owned two properties with approximately 416,623 net rentable square feet. Both properties are apartment communities. The portfolio had an average occupancy of 90.25% for the first three months of 1996, as compared to 93.35% for the first three months of 1995. Revenue from property operations increased $10,640, or 1.80%, for the first quarter of 1996, as compared to the 1995 first quarter. The decrease in other income of $4,726 or 41.41% is primarily due to a reduction in late and returned check charges from the prior year. The following table illustrates the components: Increase (Decrease) Rental income 15,366 Other property (4,726) 10,640 Property operating expenses increased $14,044, or 2.84%, for the first quarter of 1996, as compared to the same period in 1995, primarily due to increases in real estate tax expense, offset by decreases in interest expense and contract service expense. The increase in real estate taxes of $15,600 or 34.44% is due to increases in property valuation and anticipated increases in property tax rates. Interest expenses declined by $12,681 or 15.81% as a result of normal amortization of the self-amortizing mortgage debt. Contract service expense was reduced by $3,806 or 15.85% primarily by utilizing vendors offering a more competitive price. The following table illustrates the components by category: Increase (Decrease) Salaries & wages 3,690 Maintenance & repairs 2,525 Utilities 3,233 Real estate taxes 15,600 General administrative 188 Contract services (3,806) Insurance (363) Interest (12,861) Depreciation and amortization 5,000 Property management fees (a) 838 Net Increase (Decrease) 14,044 LIQUIDITY AND CAPITAL RESOURCES While it is the General Partners primary intention to operate and manage the existing real estate investments, the General Partner also continually evaluates this investment in light of current economic conditions and trends to determine if this assets should be considered for disposal. At this time, there is no plan to dispose of either Property. As of March 31, 1996, the Partnership had $36,280 in cash and cash equivalents as compared to $19,047 as of December 31, 1995. The net increase in cash of $17,233 is principally due to positive cash flow from operations and decrees in accounts payable offset by repayments on mortgages and notes payable. The properties are encumbered by two non-recourse mortgage notes as of December 31, 1995. These mortgages payable have a carrying value of $7,998,325 at December 31, 1995. The mortgage notes were entered into during 1993 and 1992 to refinance certain mortgage notes which were in default. The Partnership accounted for these transactions as troubled debt restructuring, and accordingly, are being carried at the total future cash outflows for principal and interest. Accordingly, no interest expense was or will be recorded on these notes. Additionally, the general partner has provided funding to the Partnership in the form of notes payable with balances at December 31, 1995 totaling $3,108,081 which accrue interest at prime plus 2% and are due on June 30, 2001, or upon demand. Additional funds have been provided by the general partner in the form of advances which totaled $1,120,323 at December 31, 1995. The general partner is not obligated to provide additional funding to the Partnership. For the foreseeable future, the Partnership anticipates that mortgage principal payments (excluding any balloon mortgage payments), improvements and capital expenditures will be funded by net cash from operations. The primary source of capital to fund future Partnership acquisitions and balloon mortgage payments will be proceeds from the sale, financing or refinancing of the Properties. The Partnership's required principal payments due under the stated terms of the Partnership's mortgage notes payable and notes payable to affiliates are $124,505, $2,580,216 and $4,021,625 for each of the next three years. The Partnership is not generating sufficient cash flows to meet these obligations. Management believes it will be able to refinance these debt obligations; however, at this time, there can be no assurance this refinancing will occur. Other Information Item 1. Legal Proceedings Item 2. Changes in Securities None Item 3. Defaults Upon Senior Securities None Item 4. Submission of Matters to a Vote of Security Holders None Item 5. Other Information None Item 6. Exhibit and Reports on Form 8-K (A)The following documents are filed herewith or incorporated herein by reference as indicated as Exhibits: Exhibit Designation Document Description 2 Certificate of Limited partnership, as amended, incorporated by reference to Registration Statement No.2-81074 effective May 2, 1983. Limited Partnership Agreement, incorporated by reference to Registration Statement No.2- 81074 effective May 2,1983. 11 Not Applicable 15 Not Applicable 18 Not Applicable 19 Not Applicable 20 Not Applicable 23 Not Applicable 24 Not Applicable 25 Power of Attorney,incorporated by reference to Registration Statement No. 2-81074 effective May 2, 1983. 28 None (B) Reports on Form 8-K for the quarter ended March 31, 1996. 1 None 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. AMERICAN REPUBLIC REALTY FUND I a Wisconsin limited partnership By: /s/ Robert J. Werra Robert J. Werra, General Partner Date: April 9, 1996 EX-27 2
5 THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM BOTH THE MARCH 31, 1996 BALANCE SHEET AND STATEMENT OF INCOME AND EXPENSES AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000711512 AMERICAN REPUBLIC REALTY FUND I 3-MOS DEC-31-1996 MAR-31-1996 36,280 0 0 0 0 0 16,747,882 7,948,822 9,049,066 0 7,798,774 0 0 0 (3,139,312) 9,049,066 0 595,630 0 0 439,951 0 68,400 0 0 0 0 0 0 93,886 8.54 0
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