-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, FX1E+nkKGUTu3aIvQ0ObTbhGzqI/qiX9VrdtINg1pBEt7NL3JOCTkZnP0nmkaFaH i1GWoV1hLSZWT2VME1mHkQ== 0000928790-95-000043.txt : 19950530 0000928790-95-000043.hdr.sgml : 19950530 ACCESSION NUMBER: 0000928790-95-000043 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950515 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: HUTTON CONAM REALTY INVESTORS 4 CENTRAL INDEX KEY: 0000722745 STANDARD INDUSTRIAL CLASSIFICATION: 6500 IRS NUMBER: 112685746 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-13329 FILM NUMBER: 95538425 BUSINESS ADDRESS: STREET 1: 3 WORLD FINANCIAL CENTER, 29TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10285 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 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 March 31, 1995 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 0-13329 HUTTON/CONAM REALTY INVESTORS 4 (Exact name of registrant as specified in its charter) California 11-2685746 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 3 World Financial Center, 29th Floor, New York, NY 10285 (Address of principal executive offices) (Zip Code) (212) 526-3237 (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 Consolidated Balance Sheets March 31, December 31, Assets 1995 1994 Investments in real estate: Land $ 12,088,984 $ 12,088,984 Buildings and improvements 48,374,995 48,236,772 60,463,979 60,325,756 Less- accumulated depreciation (19,394,175) (18,896,846) 41,069,804 41,428,910 Cash and cash equivalents 3,993,348 3,234,383 Other assets 25,101 22,527 Total Assets $ 45,088,253 $ 44,685,820 Liabilities and Partners' Capital Liabilities: Mortgage payable $ 5,040,508 $ 5,051,086 Security deposits 281,399 288,335 Accounts payable and accrued expenses 352,409 137,009 Due to general partners and affiliates 43,778 54,369 Total Liabilities 5,718,094 5,530,799 Partners' Capital: General Partners 0 0 Limited Partners 39,370,159 39,155,021 Total Partners' Capital 39,370,159 39,155,021 Total Liabilities and Partners' Capital $ 45,088,253 $ 44,685,820 Consolidated Statements of Operations For the three months ended March 31, 1995 and 1994 Income 1995 1994 Rental $ 1,927,525 $ 1,884,885 Interest 43,193 11,170 Total Income 1,970,718 1,896,055 Expenses Property operating 1,086,744 956,643 Depreciation 497,329 508,630 Interest 127,767 128,781 General and administrative 43,740 49,591 Total Expenses 1,755,580 1,643,645 Net income $ 215,138 $ 252,410 Net Income Allocated: To the General Partners $ 0 $ 179,459 To the Limited Partners 215,138 72,951 $ 215,138 $ 252,410 Per limited partnership unit (128,110 outstanding) $ 1.68 $ .57 Consolidated Statement of Partners' Capital For the three months ended March 31, 1995 General Limited Partners Partners Total Balance at January 1, 1995 $ 0 $ 39,155,021 $ 39,155,021 Net income 0 215,138 215,138 Balance at March 31, 1995 $ 0 $ 39,370,159 $ 39,370,159 Consolidated Statements of Cash Flows For the three months ended March 31, 1995 and 1994 Cash Flows from Operating Activities: 1995 1994 Net income $ 215,138 $ 252,410 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 497,329 508,630 Increase (decrease) in cash arising from changes in operating assets and liabilities: Other assets (2,574) (39) Security deposits (6,936) (534) Accounts payable and accrued expenses 215,400 205,572 Due to general partners and affiliates (10,591) (12,053) Net cash provided by operating activities 907,766 953,986 Cash Flows from Investing Activities: Additions to real estate (138,223) 0 Net cash used for investing activities (138,223) 0 Cash Flows from Financing Activities: Mortgage principal payments (10,578) (9,563) Distributions 0 (640,550) Net cash used for financing activities (10,578) (650,113) Net increase in cash and cash equivalents 758,965 303,873 Cash and cash equivalents at beginning of period 3,234,383 2,201,276 Cash and cash equivalents at end of period $ 3,993,348 $ 2,505,149 Supplemental Disclosure of Cash Flow Information: Cash paid during the period for interest $ 127,767 $ 128,781 Notes to the Consolidated Financial Statements The unaudited interim financial statements should be read in conjunction with the Partnership's annual 1994 financial statements within Form 10-K. The unaudited financial statements include all adjustments which are, in the opinion of management, necessary to present a fair statement of financial position as of March 31, 1995 and the results of operations and cash flows for the three months ended March 31, 1995 and 1994 and the statement of changes in partners' capital for the three months ended March 31, 1995. 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 1994, which require disclosure in this interim report per Regulation S-X, Rule 10-01, Paragraph (a)(5). Part 1, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources At March 31, 1995, the Partnership had cash of $3,993,348 which was invested in unaffiliated money market funds, compared with $3,234,383 at December 31, 1994. The increase is primarily attributable to net cash from operations exceeding capital improvement expenditures and mortgage principal payments. The Partnership expects sufficient cash flow to be generated from operations to meet its current operating expenses and debt service requirements. The promissory note secured by a mortgage on the Trails at Meadowlakes matures on July 19, 1995, at which time the Partnership will be required to pay $5,025,984 to the mortgage lender. The General Partners have determined that refinancing the property's mortgage loan is not the most attractive option at this time. Furthermore, as a result of improving market conditions, the General Partners have begun marketing some of the properties, and have had extensive negotiations with an institutional buyer to sell Trails at Meadowlakes and Cypress Lakes. The General Partners expect to enter into a sales contract in the very near future with the objective of closing the sales before July 19, 1995. However, there can be no assurance that the sales will be completed or that any particular price for the properties can be obtained. Should a sale of one or both of these properties close prior to the July 19, 1995 maturity date, net sale proceeds will first be applied to repay the loan and the ba lance will be distributed to the Limited Partners as a return of capital. In addition, the General Partners would evaluate distributing the reserves which have been accumulated as a result of suspending distributions commencing in the third quarter of 1994. Distributions were suspended due to the upcoming maturity of the mortgage loan secured by the Trails at Meadowlakes property. If a sale does not occur or closes after July 19, 1995, the General Partners expect to use approximately $3 million of the Partnership's reserves to partially repay the loan, and repay the $2 million balance from cash flow and/or sale proceeds. Accounts payable and accrued expenses were $352,409 at March 31, 1995, compared with $137,009 at December 31, 1994. The increase reflects the accrual of real estate taxes for the first three months of 1995. Results of Operations Net income for the three month periods ended March 31, 1995 and 1994 totalled $215,138 and $252,410, respectively. After adding back depreciation, a non-cash expense, and subtracting mortgage amortization, operations generated cash flow of $701,889 and $751,477 for the three months ended March 31, 1995 and 1994, respectively. The decrease in net income and cash flow is primarily attributable to an increase in property operating expenses, partially offset by an increase in rental and interest income. Rental income for the three month periods ended March 31, 1995 and 1994 totalled $1,927,525 and $1,884,885, respectively. The 2% increase in 1995 reflects higher revenues at five of the Partnership's six properties due to rental rate increases instituted during the past year. Interest income for the three month periods ended March 31, 1995 and 1994 totalled $43,193 and $11,170, respectively. The increase in 1995 is due primarily to higher interest rates and higher cash balances as a result of the suspension of cash distributions beginning in the third quarter of 1994. Total expenses for the three month periods ended March 31, 1995 and 1994 totalled $1,755,580 and $1,643,645, respectively. The increase in 1995 reflects higher property operating expenses including repairs and maintenance, utilities, insurance and advertising. All other components of total expenses remained relatively in line with 1994 levels. For the three-month periods ended March 31, 1995 and 1994, average occupancy levels at each of the properties were as follows: Three Months Ended March 31, Property 1995 1994 Cypress Lakes Apartments 95% 98% Pelican Landing 97% 98% River Hill Apartments 95% 96% Shadowood Village 95% 95% Trails at MeadowLakes 97% 98% Village at the Foothills II 95% 97% PART II OTHER INFORMATION Items 1-5 Not applicable Item 6 Exhibits and reports on Form 8-K. (a) Exhibits - None (b) Reports on Form 8-K - No reports on Form 8-K were filed during the three month period covered by this report. 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. HUTTON/CONAM REALTY INVESTORS 4 BY: RI 3-4 REAL ESTATE SERVICES, INC. General Partner Date: May 12, 1995 BY: /s/Paul L. Abbott Name: Paul L. Abbott Title: Director, President, Chief Executive Officer and Chief Financial Officer EX-27 2 RI4 FINANCIAL DATA SCHEDULE FOR 1Q'95 10-Q
5 3-MOS DEC-31-1995 MAR-31-1995 3,993,348 000 000 000 000 000 60,463,979 19,394,175 45,088,253 000 5,040,508 000 000 000 39,370,159 45,088,253 1,927,525 1,970,718 000 1,086,744 541,069 000 127,767 215,138 000 215,138 000 000 000 215,138 1.68 1.68
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