-----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, TFvcBC1c+uMtuO1TKJmvBThOJveGrh4Oowg7BOi8K+iRRgPMmycBYFYb5ojxQYMs E8iB9pDrVJfIeifllAip/Q== 0000928790-96-000221.txt : 19961118 0000928790-96-000221.hdr.sgml : 19961118 ACCESSION NUMBER: 0000928790-96-000221 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961114 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: 96666020 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 September 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 I.R.S. Employer Identification No. Incorporation or Organization 3 World Financial Center, 29th Floor, 10285 New York, NY Attn: Andre Anderson Zip Code Address of Principal Executive Offices (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 September 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 (9,848,964) (8,958,549) 23,967,419 24,794,179 Cash and cash equivalents 2,697,209 2,436,356 Other assets 19,719 16,206 Total Assets $26,684,347 $27,246,741 Liabilities and Partners' Capital Liabilities: Distribution payable $ 533,791 $587,171 Accounts payable and accrued expenses 500,997 168,831 Due to affiliates 52,508 32,209 Security deposits 144,161 143,040 Total Liabilities 1,231,457 931,251 Partners' Capital: General Partners _ _ Limited Partners 25,452,890 26,315,490 Total Partners' Capital 25,452,890 26,315,490 Total Liabilities and Partners' Capital $26,684,347 $27,246,741 Consolidated Statement of Partners' Capital For the nine months ended September 30, 1996 Limited General Partners Partners Total Balance at December 31, 1995 $26,315,490 $ _ $26,315,490 Net Income 578,637 160,137 738,774 Distributions (1,441,237) (160,137) (1,601,374) Balance at September 30, 1996 $25,452,890 $ _ $25,452,890 Consolidated Statements of Operations Three months ended Nine months ended September 30, September 30, 1996 1995 1996 1995 Income Rental $ 1,185,400 $1,334,083 $3,557,572 $5,181,081 Interest 26,750 112,852 80,122 211,324 Other _ _ 4,295 _ Total Income 1,212,150 1,446,935 3,641,989 5,392,405 Expenses Property operating 624,697 807,612 1,877,876 2,992,013 Depreciation 293,002 332,784 890,415 1,320,206 Interest _ 28,292 _ 283,556 General and administrative 58,543 61,771 134,924 158,644 Total Expenses 976,242 1,230,459 2,903,215 4,754,419 Income from operations 235,908 216,476 738,774 637,986 Gain on sale of properties _ 2,854,884 _ 2,854,884 Net Income $235,908 $3,071,360 $738,774 $3,492,870 Net Income Allocated: To the General Partners $ 53,379 $298,923 $160,137 $352,302 To the Limited Partners 182,529 2,772,437 578,637 3,140,568 $235,908 $3,071,360 $738,774 $3,492,870 Per limited partnership unit (128,110 outstanding) Income from operations $ 1.42 $ 1.36 $ 4.51 $ 4.23 Gain on sale of property _ 20.28 _ 20.28 Net Income $ 1.42 $ 21.64 $4.51 $24.51 Consolidated Statements of Cash Flows For the nine months ended September 30, 1996 1995 Cash Flows From Operating Activities: Net income $738,774 $3,492,870 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 890,415 1,320,206 Gain on sale of properties _ (2,854,884) Increase (decrease) in cash arising from changes in operating assets and liabilities: Other assets (3,513) 3,921 Accounts payable and accrued expenses 332,166 357,843 Security deposits 1,121 (146,983) Due to affiliates 20,299 (5,741) Net cash provided by operating activities 1,979,262 2,167,232 Cash Flows From Investing Activities: Net proceeds from sale of properties _ 17,551,351 Additions to real estate (63,655) (149,631) Net cash provided by (used for) investing activities (63,655) 17,401,720 Cash Flows From Financing Activities: Mortgage principal payments _ (5,051,086) Distributions (1,654,754) (14,978,194) Net cash used for financing activities (1,654,754) (20,029,280) Net increase (decrease) in cash and cash equivalents 260,853 (460,328) Cash and cash equivalents, beginning of period 2,436,356 3,234,383 Cash and cash equivalents, end of period $2,697,209 $2,774,055 Supplemental Disclosure of Cash Flow Information: Cash paid during the period for interest $ _ $283,556 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 September 30, 1996 and the results of operations and cash flows for the nine months ended September 30, 1996 and 1995 and the statement of partners' capital for the nine months ended September 30, 1996. Results of operations for the period are not necessarily indicative of the results to be expected for the full year. The following events have occurred subsequent to fiscal year 1995, which require disclosure in this interim report per regulations S-X, Rule 10-01, Paragraph (a)(5). The Partnership had signed a contract, dated September 26, 1996, to sell River Hill Apartments. On November 8, 1996, the prospective buyer executed its right to terminate the purchase agreement during the due diligence period. The General Partners are currently evaluating the Partnership's alternatives with respect to selling the property. Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources At September 30, 1996, the Partnership had cash and cash equivalents of $2,697,209, which were invested in unaffiliated money market funds, an increase of $260,853 from the balance at December 31, 1995. The increase is attributable to cash provided by operating activities exceeding cash used for distributions, mortgage principal payments, and additions to real estate. The Partnership expects sufficient cash to be generated from operations to meet its current operating expenses and debt service requirements. The Partnership had signed a contract, dated September 26, 1996, to sell River Hill Apartments. On November 8, 1996, the prospective buyer executed its right to terminate the purchase agreement during the due diligence period. The General Partners are currently evaluating the Partnership's alternatives with respect to selling the property. Accounts payable and accrued expenses increased from $168,831 at December 31, 1995 to $500,997 at September 30, 1996 primarily as a result of accruals for real estate taxes for all four properties. During the third quarter, asphalt work at Pelican Landing was completed, and exterior painting work at the property was postponed until early 1997. Interior repairs at Village at the Foothills II, Pelican Landing and Shadowood Village were performed as needed in response to occupancy changes and normal tenant turnover. The General Partners declared a cash distribution of $3.75 per Unit for the quarter ended September 30, 1996 which will be paid to investors on or about November 15, 1996. The General Partners will monitor the level of cash distributions on a quarterly basis. Results of Operations Partnership operations for the three and nine months ended September 30, 1996, resulted in net income of $235,908 and $738,774, respectively, compared with $3,071,360 and $3,492,870, respectively, for the same periods in 1995. Net income decreased from the 1995 period to the 1996 period primarily as a result of a $2,854,884 gain recognized on the sale of Cypress Lakes and Trails at Meadowlakes in July 1995. Excluding the gain, the Partnership generated income from operations of $216,476 and $637,986, respectively, for the three and nine months ended September 30, 1995. The decrease is also due to a decline in rental income, partially offset by reductions in property operating expense, depreciation expense, interest expense, and general and administrative expenses resulting from the sale of the properties. Net cash provided by operating activities was $1,979,263 for the nine months ended September 30, 1996, a decrease from $2,167,232 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 nine months ended September 30, 1996 was $1,185,400 and $3,557,572, respectively, compared with $1,334,083 and $5,181,081, respectively, for the corresponding periods in 1995. The decrease reflects the sale of Trails at Meadowlakes and Cypress Lakes, and was partially offset by increases in rental income at three of the four remaining properties primarily as a result of increased rental rates. Property operating expenses for the three and nine months ending September 30, 1996 decreased to $624,697 and $1,877,876, respectively, from $807,612 and $2,992,013, respectively, for the corresponding periods in 1995 primarily due to the sale of Trails at Meadowlakes and Cypress Lakes. Depreciation for the three and nine months ended September 30, 1996 was lower compared to the same period in 1995 also due to the July 1995 sale of Trails at Meadowlakes and Cypress Lakes. Interest expense 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 nine months ended September 30, 1996 declined to $58,543 and $134,923, respectively, from $61,771 and $158,644, respectively, for the corresponding periods in 1995 primarily due to decreases in legal fees and appraisal fees, partially offset by higher Partnership administrative expenses. During the first nine 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 96% 96% Shadowood Village 95% 95% Village at the Foothills II 94% 95% Part II Other Information Items 1-5 Not applicable. 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 September 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: November 14, 1996 BY: /s/ Paul L Abbott Director, President, Chief Executive Officer and Chief Financial Officer EX-27 2 FINANCIAL DATA SCHEDULE FOR THIRD QUARTER 10-Q HUTTON/CONAM REALTY INVESTORS 4
5 9-mos Dec-31-1996 Sep-30-1996 2,697,209 000 000 000 000 000 33,816,383 9,848,964 26,684,347 1,231,457 000 000 000 000 25,452,890 26,684,347 3,557,572 3,641,989 000 1,877,876 1,025,339 000 000 738,774 000 738,774 000 000 000 738,774 4.51 4.51
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