0000928790-95-000093.txt : 19950821 0000928790-95-000093.hdr.sgml : 19950821 ACCESSION NUMBER: 0000928790-95-000093 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950814 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: 95562331 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 June 30, 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 ATTN: Andre Anderson 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 Condolidated Balance Sheet June 30, December 31, Assets 1995 1994 Investments in real estate: Land $ 12,088,984 $ 12,088,984 Buildings and improvements 48,386,402 48,236,772 60,475,386 60,325,756 Less accumulated depreciation (19,884,268) (18,896,846) 40,591,118 41,428,910 Cash and cash equivalents 4,861,093 3,234,383 Other assets 25,101 22,527 Total Assets $ 45,477,312 $ 44,685,820 Liabilities and Partners' Capital Liabilities: Distribution payable $ 533,792 $ - Mortgage payable 5,029,661 5,051,086 Security deposits 275,887 288,335 Accounts payable and accrued expenses 539,442 137,009 Due to general partners and affiliates 55,791 54,369 Total Liabilities 6,434,573 5,530,799 Partners' Capital: General Partners - - Limited Partners 39,042,739 39,155,021 Total Partners' Capital 39,042,739 39,155,021 Total Liabilities and Partners' Capital $ 45,477,312 $ 44,685,820 Consolidated Statement of Partners' Capital For the six months ended June 30, 1995 General Limited Partners Partners Total Balance at January 1, 1995 $ - $39,155,021 $39,155,021 Net income 53,379 368,131 421,510 Distribution payable (53,379) (480,413) (533,792) Balance at June 30, 1995 $ - $39,042,739 $39,042,739 Consolidated Statements of Operations Three months ended Six months ended June 30, June 30, Income 1995 1994 1995 1994 Rental $1,919,473 $1,882,931 $3,846,998 $3,767,816 Interest 55,279 13,509 98,472 24,679 Total Income 1,974,752 1,896,440 3,945,470 3,792,495 Expenses Property operating 1,097,657 984,394 2,184,401 1,941,037 Depreciation 490,093 508,630 987,422 1,017,260 Interest 127,497 128,538 255,264 257,319 General and administrative 53,133 41,675 96,873 91,266 Total Expenses 1,768,380 1,663,237 3,523,960 3,306,882 Net income $ 206,372 $ 233,203 $ 421,510 $ 485,613 Net Income Allocated: To the General Partners $ 53,379 $ 160,252 $ 53,379 $ 339,711 To the Limited Partners 152,993 72,951 368,131 145,902 $ 206,372 $ 233,203 $ 421,510 $ 485,613 Per limited partnership unit (128,110 outstanding) $ 1.19 $ .57 $ 2.87 $ 1.14 Consolidated Statements of Cash Flows For the six months ended June 30, 1995 and 1994 Cash Flows from Operating Activities: 1995 1994 Net income $ 421,510 $ 485,613 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 987,422 1,017,260 Increase (decrease) in cash arising from changes in operating assets and liabilities: Other assets (2,574) (430) Security deposits (12,448) 769 Accounts payable and accrued expenses 402,433 399,818 Due to general partners and affiliates 1,422 (2,450) Net cash provided by operating activities 1,797,765 1,900,580 Cash Flows from Investing Activities: Additions to real estate (149,630) (21,981) Net cash used for investing activities (149,630) (21,981) Cash Flows from Financing Activities: Mortgage principal payments (21,425) (19,371) Distributions - (1,281,100) Net cash used for financing activities (21,425) (1,300,471) Net increase in cash and cash equivalents 1,626,710 578,128 Cash and cash equivalents at beginning of period 3,234,383 2,201,276 Cash and cash equivalents at end of period $ 4,861,093 $ 2,779,404 Supplemental Disclosure of Cash Flow Information: Cash paid during the period for interest $ 255,264 $ 257,319 Notes to the Consolidated Financial Statements The unaudited interim consolidated financial statements should be read in conjunction with the Partnership's annual 1994 consolidated financial statements within Form 10-K. The unaudited consolidated financial statements include all adjustments which are, in the opinion of management, necessary to present a fair statement of financial position as of June 30, 1995 and the results of operations and cash flows for the six months ended June 30, 1995 and 1994 and the statement of changes in partners' capital for the six months ended June 30, 1995. Results of operations for the periods are not necessarily indicative of the results to be expected for the full year. The following 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). On July 20, 1995, the Partnership closed on the sale of Trails at Meadowlakes and Cypress Lakes Apartments to an institutional buyer, which is unaffiliated with the Partnership. Trails at Meadowlakes and Cypress Lakes Apartments were sold for $8,940,000 and $8,825,000, respectively. The transaction resulted in a gain on sale for Trails at Meadowlakes and Cypress Lakes Apartments of approximately $1,961,000 and $894,000, respectively, which will be reflected in the Partnership's Form 10-Q for the period ended September 30, 1995. The Partnership used a portion of the sale proceeds to pay off the remaining principal balance on the Trails at Meadowlakes mortgage payable in the amount of $5,029,661. Part 1, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources At June 30, 1995, the Partnership had cash and cash equivalents of $4,861,093, which were 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. Accounts payable and accrued expenses were $539,442 at June 30, 1995 compared to $137,009 at December 31, 1994. The increase reflects principally the accrual and timing of payments due for real estate taxes, for the four Florida properties and the one Texas property, for the first six months of 1995. The sales of Trails at Meadowlakes and Cypress Lakes, to an institutional buyer, were completed on July 20, 1995. The Partnership received gross sales proceeds of $8,940,000 and $8,825,000, respectively, and will recognize a gain on sale of approximately $1,961,000 and $894,000 in the third quarter. The Partnership used a portion of the sale proceeds to pay off the remaining principal balance on the Trails at Meadowlakes mortgage payable in the amount of $5,029,661. As a result of this and other sales expenses, the Partnership received net proceeds of approximately $12,064,000 from the sales. Following an analysis of the Partnership's projected capital requirements, the General Partners intend to distribute the remaining sales proceeds to the Limited Partners as a return of capital. The General Partners have reviewed the Partnership's cash requirements following the property sales and loan resolution, and have determined that quarterly cash distributions can be reinstated beginning with the 1995 second quarter distribution payable in August. Accordingly, a distribution in the amount of $3.75 per Unit, will be paid to limited partners on August 15, 1995. The General Partners currently anticipate that this level of distributions will be maintained through year end. Cash distributions, however, will be determined on a quarterly basis and will be based on cash flow generated by the Partnership. Results of Operations Net income for the three and six months ended June 30, 1995 totalled $206,372 and $421,510, respectively, compared with net income of $233,203 and $485,613 for the corresponding periods in 1994. After adding back depreciation, a non-cash expense, and subtracting mortgage amortization and additions to real estate, operations generated cash flow of $674,211 and $1,237,877, respectively, for the three and six months ended June 30, 1995, compared with cash flow of $732,025 and $1,461,521 for the corresponding periods in 1994. 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 and six months ended June 30, 1995 totalled $1,919,473 and $3,846,998, respectively, compared with $1,882,931 and $3,767,816 for the corresponding periods in 1994. The increases in 1995 reflect 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 and six months ended June 30, 1995 totalled $55,279 and $98,472, respectively, compared with interest income of $13,509 and $24,679 for the corresponding periods in 1994. The increases in 1995 are 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. The suspension was implemented to increase cash reserves for the mortgage coming due on Trails at Meadowlakes. Total expenses for the three and six months ended June 30, 1995 totalled $1,768,380 and $3,523,960, respectively, compared with total expenses of $1,663,237 and $3,306,882 for the corresponding periods in 1994. The increases in 1995 reflect 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- and six-month periods ended June 30, 1995 and 1994, average occupancy levels at each of the properties were as follows: Three Months Ended Six Months Ended June 30, June 30, Property 1995 1994 1995 1994 Cypress Lakes 92% 95% 94% 96% Pelican Landing 97% 97% 97% 98% River Hill 95% 95% 95% 96% Shadowood Village 93% 95% 94% 95% Trails at Meadowlakes 95% 96% 96% 97% Village at the Foothills II 93% 94% 94% 96% 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 months ended June 30, 1995. 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: August 11, 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 1995 SECOND QUARTER END 10-Q
5 6-MOS DEC-31-1995 JUN-30-1995 4,861,093 0 0 0 0 0 60,475,386 19,884,268 45,477,312 0 5,029,661 0 0 0 39,042,739 45,477,312 0 3,846,998 0 2,184,401 1,084,295 0 255,264 0 0 0 0 0 0 421,510 $2.87 $2.87