-----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, Gu+f6JZQc6diUaN0bLsq/lx4RLS81cbqloTWwcybYJ2tJqVCJOX7OPvNkFJ+jLap 4ol3K2F8E/Oy00aGFTiIuA== 0000928790-96-000169.txt : 19960816 0000928790-96-000169.hdr.sgml : 19960816 ACCESSION NUMBER: 0000928790-96-000169 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960814 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: HUTTON CONAM REALTY INVESTORS 4 CENTRAL INDEX KEY: 0000722745 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [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: 96613436 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, 1996 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 Incorporation or Organization I.R.S. Employer 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 ____ Consolidated Balance Sheets At June 30, At December 31, 1996 1995 Assets Investments in real estate: Land $7,526,126 $7,526,126 Buildings and improvements 26,290,257 26,226,602 33,816,383 33,752,728 Less accumulated depreciation (9,555,963) (8,958,549) 24,260,420 24,794,179 Cash and cash equivalents 2,543,793 2,436,356 Other assets 19,719 16,206 Total Assets $26,823,932 $27,246,741 Liabilities and Partners' Capital Liabilities: Distribution payable $ 533,792 $587,171 Accounts payable and accrued expenses 358,196 168,831 Due to affiliates 34,357 32,209 Security deposits 146,815 143,040 Total Liabilities 1,073,160 931,251 Partners' Capital: General Partners ----- ----- Limited Partners 25,750,772 26,315,490 Total Partners' Capital 25,750,772 26,315,490 Total Liabilities and Partners' Capital $26,823,932 $27,246,741 Consolidated Statement of Partners' Capital For the six months ended June 30, 1996 Limited General Partners Partners Total Balance at December 31, 1995 $26,315,490 $ ----- $26,315,490 Net Income 396,107 106,758 502,865 Distributions (960,825) (106,758) (1,067,583) Balance at June 30, 1996 $25,750,772 $ ----- $25,750,772 Consolidated Statements of Operations Three months ended June 30, Six months ended June 30, 1996 1995 1996 1995 Income Rental $1,191,023 $1,919,473 $2,372,172 $3,846,998 Interest 26,041 55,279 53,372 98,472 Other 4,295 ----- 4,295 ----- Total Income 1,221,359 1,974,752 2,429,839 3,945,470 Expenses Property operating $607,417 $1,097,657 $1,253,179 $2,184,401 Depreciation 298,922 490,093 597,414 987,422 Interest ----- 127,497 ----- 255,264 General and administrative 28,106 53,133 76,381 96,873 Total Expenses 934,445 1,768,380 1,926,974 3,523,960 Net Income $286,914 $206,372 $502,865 $421,510 Net Income Allocated: To the General Partners $ 53,379 $ 53,379 $106,758 $ 53,379 To the Limited Partners 233,535 152,993 396,107 368,131 $286,914 $206,372 $502,865 $421,510 Per limited partnership unit (128,110 outstanding) $ 1.82 $ 1.19 $ 3.09 $ 2.87 Consolidated Statements of Cash Flows For the six months ended June 30, 1996 1995 Cash Flows From Operating Activities: Net income $502,865 $421,510 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 597,414 987,422 Increase (decrease) in cash arising from changes in operating assets and liabilities: Other assets (3,513) (2,574) Accounts payable and accrued expenses 189,365 402,433 Security deposits 3,775 (12,448) Due to affiliates 2,148 1,422 Net cash provided by operating activities 1,292,054 1,797,765 Cash Flows From Investing Activities: Additions to real estate (63,655) (149,630) Net cash used for investing activities (63,655) (149,630) Cash Flows From Financing Activities: Mortgage principal payments ----- (21,425) Distributions (1,120,962) ----- Net cash used for financing activities (1,120,962) (21,425) Net increase in cash and cash equivalents 107,437 1,626,710 Cash and cash equivalents, beginning of period 2,436,356 3,234,383 Cash and cash equivalents, end of period $2,543,793 $4,861,093 Supplemental Disclosure of Cash Flow Information: Cash paid during the period for interest $ ----- $255,264 Notes to the Consolidated Financial Statements The unaudited interim consolidated financial statements should be read in conjunction with the Partnership's annual 1995 audited 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, 1996 and the results of operations and cash flows for the six months ended June 30, 1996 and 1995 and the statement of partners' capital for the six months ended June 30, 1996. Results of operations for the period are not necessarily indicative of the results to be expected for the full year. No significant events have occurred subsequent to fiscal year 1995, and no material contingencies exist which would require disclosure in this interim report per regulations 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 June 30, 1996, the Partnership had cash and cash equivalents of $2,543,793, which were invested in unaffiliated money market funds, relatively unchanged from the balance at December 31,1995. The Partnership expects sufficient cash to be generated from operations to meet its current operating expenses and debt service requirements. Accounts payable and accrued expenses increased from $168,831 at December 31, 1995 to $358,196 at June 30, 1996 primarily as a result of accruals for real estate taxes for all four properties. The General Partners continue to perform various property improvements at Pelican Landing and Shadowood Village, and routine repairs at Village at the Foothills II. The improvements include exterior painting, asphalt repairs, and landscaping at Pelican Landing, and interior improvements at both Pelican Landing and Shadowood Village. The improvements are currently underway and are expected to be completed by the end of the year. The General Partners declared a cash distribution of $3.75 per Unit for the quarter ended June 30, 1996 which will be paid to investors on or about August 15, 1996. The level of future distributions will be evaluated on a quarterly basis and will depend on the Partnership's operating results and future cash needs. The General Partners have engaged a commercial real estate broker to market River Hill Apartments for sale. There can be no assurances that a sale will be completed or that any particular price for the property can be obtained. The original construction contained structural deficiencies which required significant repair in the late 1980s. These deficiencies may affect our negotiations with prospective buyers with respect to a final sales price. In the event a sale is not consummated, the Partnership will continue to hold the property as an investment. Results of Operations Partnership operations for the three and six months ended June 30, 1996, resulted in net income of $286,914 and $502,865, respectively, compared with $206,372 and $421,510, respectively, for the same periods in 1995. The increases were primarily due to reductions in all expenses, partially offset by a decline in rental and interest income. Net cash provided by operating activities was $1,292,054 for the six months ended June 30, 1996, a decrease from $1,797,765 for the same period in 1995. The decrease was primarily attributable to the sale of Trails at Meadowlakes and Cypress Lakes in July 1995. Rental income for the three and six months ended June 30, 1996 was $1,191,023 and $2,372,172, respectively, compared with $1,919,473 and $3,846,998, respectively, for the corresponding periods in 1995. The decreases reflect the sale of Trails at Meadowlakes and Cypress Lakes, partially offset by increases in rental income at three of the four remaining properties as a result of increased rental rates. Interest income declined from 1995 to 1996 as a result of the Partnership maintaining a reduced cash balance. Property operating expenses for the three and six months ending June 30, 1996 decreased to $607,417 and $1,253,179, respectively, from $1,097,657 and $2,184,401, respectively, for the corresponding periods in 1995 primarily due to the sale of Trails at Meadowlakes and Cypress Lakes. Depreciation for the three and six months ended June 30, 1996 was lower compared to the same period in 1995 primarily due to the July 1995 sale of Trails at Meadowlakes and Cypress Lakes. Interest expense also was eliminated due to the repayment of the mortgage secured by Trails at Meadowlakes at the time the property was sold. General and Administrative expenses for the three and six months ended June 30, 1996 declined to $28,106 and $76,381, respectively, from $53,133 and $96,873, respectively, for the corresponding periods in 1995 primarily due to decreases in legal and appraisal expenses, partially offset by higher Partnership administrative expenses. During the first six months of 1996 and 1995, average occupancy levels at each of the properties were as follows: Property 1996 1995 Pelican Landing 97% 97% River Hill Apartments 95% 95% Shadowood Village 96% 94% Village at the Foothills II 94% 94% Part II Other Information Items 1-4 Not applicable. Item 5 Other Information An offer dated May 28, 1996, was sent by Equity Resource Fund XVIII to limited partners of the Partnership to purchase up to 4.7% of their limited partnership interests for $80 per unit prior to the expiration of the offer on June 28, 1996. On June 3, 1996, the General Partners of the Partnership sent a letter to limited partners recommending against the offer because the price was inadequate, especially in view of the Net Asset Value per Unit, which was estimated to be $230.60 as of March 31, 1996. Item 6 Exhibits and reports on Form 8-K. (a) Exhibits - (27) Financial Data Schedule (b) Reports on Form 8-K - No reports on Form 8-K were filed during the quarter ended June 30, 1996. 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 13, 1996 BY: /s/ Paul L Abbott Director, President, Chief Executive Officer and Chief Financial Officer EX-27 2 FINANCIAL DATA SCHEDULE FOR SECOND QUARTER 10-Q HUTTON/CONAM REALTY INVESTORS 4
5 6-mos Dec-31-1996 Jun-30-1996 2,543,793 000 000 000 000 000 33,816,383 9,555,963 26,823,932 1,073,160 000 000 000 000 25,750,772 26,823,932 2,372,172 2,429,839 000 1,253,179 673,795 000 000 502,865 000 506,865 000 000 000 506,865 3.09 3.09
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