-----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, VSjgZX9UuUq8fWK9Nb4PPwMx5/rrfczWaTe+dlT30KcRLW2Qfmlk38Ypr8jt1m3B Aha2UvxnSdwAbWlQwnpzig== 0000017294-97-000002.txt : 19970520 0000017294-97-000002.hdr.sgml : 19970520 ACCESSION NUMBER: 0000017294-97-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970515 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: 97606022 BUSINESS ADDRESS: STREET 1: 6210 CAMPBELL RD STREET 2: STE 140 CITY: DALLAS STATE: TX ZIP: 75248 BUSINESS PHONE: 2143808000 MAIL ADDRESS: STREET 1: 6210 CAMPBELL RD STREET 2: STE 140 CITY: DALLAS STATE: TX ZIP: 75248 10-Q 1 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, 1997 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, 1997 and December 31, 1996 Page 3 Consolidated Statements of Operations for the Three Months Ended March 31, 1997and 1996 Page 4 Consolidated Statements of Cash Flows for the Three Months Ended March 31, 1997 and 1996 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, 1996, are Unaudited. PART 1. FINANCIAL INFORMATION Item 1. Financial Statements ------------------------------------ AMERICAN REPUBLIC REALTY FUND I Condensed Consolidated Balance Sheets March 31, December 31, 1997 1996 (Unaudited) ASSETS Real Estate assets, at cost Land $1,822,718 $1,822,718 Buildings and improvements 14,994,509 14,994,509 ------------ ------------- 16,817,227 16,817,227 Less: Accumulated (8,548,635) (8,397,635) depreciation ------------ ------------- Real Estate, net 8,268,592 8,419,592 Cash including cash 56,480 23,211 investments Escrow deposits 243,065 182,966 Prepaid Expenses 13,462 19,614 Other assets 0 0 ------------ ------------- TOTAL ASSETS $8,581,599 $8,645,383 ============ ============= LIABILITIES AND PARTNERS' EQUITY: LIABILITES Mortgage and notes payable $7,018,832 $7,239,679 Note Payable to affiliates 2,935,310 2,935,310 Amounts due affiliates 1,259,441 1,282,696 Real estate taxes payable 66,900 0 Security deposits 45,257 45,746 Accounts payable & accrued 148,092 117,202 expenses ------------- ------------- Total liabilities 11,473,832 11,620,633 ------------- ------------- PARTNERS CAPITAL (DEFICIT) Limited Partners (2,949,005) (3,031,192) General Partner 56,772 55,942 ------------- ------------- Total Partners Capital (Deficit) (2,892,233) (2,975,250) TOTAL LIABILITES AND PARTNER $8,581,599 $8,645,383 DEFICIT ============= ============= See notes to Condensed Consolidated Financial Statements AMERICAN REPUBLIC REALTY FUND I Condensed Consolidated Statement of Operations (Unaudited) Three Months Ended March 31, --------------------- REVENUES 1997 1996 Rental income $599,779 $595,630 Other property 8,984 6,687 ---------- ---------- Total revenues 608,763 602,317 EXPENSES Salaries & wages 63,277 62,823 Maintenance & repairs 52,731 34,239 Utilities 51,936 44,591 Real estate taxes 66,900 60,900 General administrative 7,532 20,443 Contract services 28,126 20,214 Insurance 12,098 11,321 Interest 61,727 68,480 Depreciation and 151,000 155,000 amortization Property management 30,419 30,420 fees (a) ---------- ----------- Total expenses 525,746 508,431 NET INCOME (LOSS) $83,017 $93,886 ========= ========= NET INCOME PER UNITS $ 7.55 $ 8.54 =========== =========== See Notes to Condensed Consolidated Financial Statements AMERICAN REPUBLIC REALTY FUND I Condensed Consolidated Statement of Cash Flows Three Months Ended March 31, 1997 1996 -------- -------- CASH FLOWS FROM OPERATING ACITIVTY Net income (loss) $83,017 $93,886 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 151,000 155,000 Net Effect of changes in operating accounts Escrow deposits (60,099) (89,904) Prepaid expenses 6,152 10,282 Accrued real estate taxes 66,900 46,900 Security deposits (489) (267) Accounts payable 30,890 101,181 Other assets 0 (8,000) -------- --------- Net cash provided by (used for) operating activities 277,371 309,078 -------- --------- CASH FLOWS FROM INVESTING ACTIVITES Repayment of mortgage notes payable (220,847) (199,551) Repayment of notes payable to affiliates 0 Proceeds from amounts due affiliates (23,255) (125,556) Repayment of amounts due affiliates 33,262 -------- -------- Net cash used for investing activities (244,102) (291,845) -------- --------- NET INCREASE (DECREASE) IN CASH AND CASH EQUVILENTS 33,269 17,233 CASH AND CASH EQUIVELNTS, BEGINNING OF PERIOD 23,211 19,047 ------- -------- CASH AND CASH EQUIVELNTS, END OF PERIOD $56,480 $36,280 ======== ========= 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 - ------------------------------- FIRST QUARTER 1997 COMPARED TO FIRST QUARTER 1996 - -------------------------------------------------- At March 31, 1997 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 1997, as compared to 93.35% for the first three months of 1996. Revenue from property operations increased $10,640, or 1.80%, for the first quarter of 1997, as compared to the 1996 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 4,149 Other property 2,297 -------- Net Increase (Decrease) 6,446 ========= Property operating expenses increased $17,315, or 3.41%, for the first quarter of 1997, as compared to the same period in 1996, primarily due to increases in maintenance & repairs, offset by decreases in interest expense and general and administrative expense. The increase in maintenance and repairs of $18,492 or 54.01% is due to make ready expenses for additional units to be leased. Interest expenses declined by $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 454 Maintenance & repairs 18,492 Utilities 7,345 Real estate taxes 6,000 General administrative (12,911) Contract services 7,912 Insurance 777 Interest (6,753) Depreciation and amortization (4,000) Property management fees (a) (1) ----------- Net Increase (Decrease) 17,315 =========== 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 asset should be considered for disposal. At this time, there is no plan to dispose of either property. As of March 31, 1997, the Partnership had $56,480 in cash and cash equivalents as compared to $33,269 as of December 31, 1996 . The net increase in cash of $23,211 is principally due to positive cash flow from operations and decreases 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, 1996. These mortgages payable have a carrying value of $7,239,679 at December 31, 1996. 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 31,1996 totaling $2,35,310 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 $1,282,696 at December 31, 1996. 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.2-81074effective 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, 1997. 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: May 17, 1997 EX-27 2
5 THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM BOTH THE MARCH 31, 1997 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-31-1997 MAR-31-1997 56,480 0 0 0 0 0 16,817,227 8,548,635 8,581,599 0 7,018,832 0 0 0 (2,892,233) 8,581,599 0 599,779 0 0 464,019 0 61,727 0 0 0 0 0 0 83,017 7.55 0
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