-----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, J0ts4OTEUDTcCvQKJjd7qXqaoN19Nf3R+HDBxJBmZjouRhVNxv8772+J6TiRLDHW c6dtNM65wE5XcXCpdH8TUQ== 0000727745-96-000008.txt : 19960517 0000727745-96-000008.hdr.sgml : 19960517 ACCESSION NUMBER: 0000727745-96-000008 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960515 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: LDP III CENTRAL INDEX KEY: 0000727745 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 942911983 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-13559 FILM NUMBER: 96567413 BUSINESS ADDRESS: STREET 1: P O BOX 130 CITY: CARBONDALE STATE: CO ZIP: 81623 BUSINESS PHONE: 3039638007 MAIL ADDRESS: STREET 1: PO BOX 130 CITY: CARBONDALE STATE: CO ZIP: 81623 FORMER COMPANY: FORMER CONFORMED NAME: LANDSING DIVERSIFIED PROPERTIES III DATE OF NAME CHANGE: 19910331 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarter Ended March 31, 1996 Commission File Number: 0-13559 LDP-III (Exact name of registrant as specified in its governing instruments) California 94-2911983 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) P. O. Box 130, Carbondale, Colorado 81623 (Address of principal executive offices) (970) 963-8007 (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 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: [ ] PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS LDP-III CONSOLIDATED BALANCE SHEET, MARCH 31, 1996 AND DECEMBER 31, 1995 (Unaudited) (Dollars in thousands)
March 31, December 31, 1995 1994 INVESTMENTS IN REAL ESTATE: Rental properties $12,307 12,306 Accumulated depreciation (4,360) (4,264) Rental properties - net 7,947 8,042 CASH AND CASH EQUIVALENTS (including interest bearing deposits of $124 in 1996 and $104 in 1995) 138 212 OTHER ASSETS: Short-term investment 198 198 Accounts receivable 83 24 Prepaid expenses and deposits 24 8 Deferred organization costs, loan costs and leasing commissions (net of accumulated amortization of $554 in 1996 and $536 in 1995) 139 152 Total other assets 444 382 TOTAL $8,529 $8,636 LIABILITIES AND PARTNERS' EQUITY LIABILITIES: Notes payable $7,858 $7,871 Accounts payable 6 5 Other liabilities 78 81 Total liabilities 7,942 7,957 PARTNERS' EQUITY 587 679 TOTAL $8,529 $8,636 See Financial Notes.
LDP-III CONSOLIDATED STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995 (Unaudited) (In thousands except per share amounts)
1996 1995 REVENUE: Rental $ 346 $ 302 Interest 5 10 Total revenue 351 312 EXPENSE: Interest 170 185 Operating 119 108 Depreciation and amortization 114 107 General and administrative 40 38 Total expense 443 438 NET INCOME (LOSS) $ (92) $ (126) NET INCOME (LOSS) PER PARTNERSHIP UNIT $ (2) $ (3) See Financial Notes.
LDP-III CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' EQUITY FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND THE YEAR ENDED DECEMBER 31, 1995 (Unaudited) (Dollars in thousands)
...LIMITED PARTNERS.... NUMBER OF GENERAL TOTAL PARTNERSHIP PARTNER PARTNERS' UNITS AMOUNT AMOUNT EQUITY BALANCE, JANUARY 1, 1995 37,141 $1,013 $1,013 Net loss - 1995 (334) (334) Abandonments (5) BALANCE, DECEMBER 31, 1995 37,136 679 679 Net loss (92) (92) BALANCE, MARCH 31, 1996 37,136 $ 587 $ 587 Financial Notes.
LDP-III CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995 (Unaudited) (In thousands)
1996 1995 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ (92) $ (126) Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation 96 92 Change in operating assets and liabilities: (Increase) decrease in accounts receivable (59) 4 Increase in prepaid expenses and deposits (16) (4) (Dncrease) increase in accounts payable 1 (26) (Decrease) increase in other liabilities (3) 44 Net cash used in operating activities (73) (16) CASH FLOWS FROM INVESTING ACTIVITIES: Decrease in deferred expenses 13 11 Net cash provided by (used in) investing activities 13 11 CASH FLOWS FROM FINANCING ACTIVITIES: Payments on notes payable (14) (251) Net cash provided by (used in) by financing activities (14) 251 Increase (decrease) in cash and cash equivalents (74) (256) Cash and cash equivalents at beginning of period 410 859 Cash and cash equivalents at end of period $ 336 $ 603 See Financial Notes.
LDP-III FINANCIAL NOTES 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited consolidated financial statements should be read in conjunction with the Partnership's 1995 Annual Report. These consolidated statements have been prepared in accordance with the instructions to the Securities and Exchange Commission Form 10-Q and do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of the general partner, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The consolidated results of operations for the three months ended March 31, 1996 and 1995, are not necessarily indicative of the results that may be expected for the year ending December 31, 1996. For purposes of the consolidated statement of cash flows, the Partnership considers all highly liquid investments with a maturity of three months or less from the date of purchase to be cash equivalents. The Partnership paid interest of $170 and $185 for the three months ended March 31, 1996, and 1995, respectively. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS INTRODUCTION LDP-III is a California limited partnership formed in August 1983. The Partnership's business consists of a single segment -- equity investments in leveraged income-producing real estate. The Partnership currently has an investment in LDP-III Realty Service Corporation which owns one property, the 391 Forbes Building in South San Francisco, California. For financial reporting purposes, the Partnership's investment in LDP-III Realty Service Corporation is presented on a consolidated basis. The Partnership's current portfolio consists of fee title ownership of three properties located in two geographic areas. The Partnership's property investments are: Jefferson Place Office Building, Boise, Idaho; 391 Forbes Building (Pacific International Industrial Park), South San Francisco, California; and 1201 Cadillac Court Building, Milpitas, California. LIQUIDITY AND CAPITAL RESOURCES As of March 31, 1996, the Partnership's consolidated cash balance totaled $138,000. Cash not required for current operations is placed in federally insured financial instruments and money market funds which can be liquidated as needed. The Partnership has invested $198,000 in short-term federally insured certificates of deposit which mature on a date in excess of 90 days or 3 months from the date of purchase. Due to this characteristic, these deposits are classified as "short-term investments" rather than as "cash and cash equivalents." During the first quarter of 1996, the Partnership experienced a net decrease in cash of $74,000. Short-term investments did not change during the first quarter of 1996. As of March 31, 1996, cash plus short-term investments totaled $336,000 versus a balance of $410,000 at December 31, 1995. The Partnership does not plan any cash distributions to its limited partners in 1996. All sale and loan proceeds realized by the Partnership will be used primarily to make cash distributions. RESULTS OF OPERATIONS The following represents the operations of those properties held continuously during the first three months of 1996 and 1995: 1996 1995 % Change Rental Revenue $ 351 $ 312 + 13% Operating Expense 119 109 + 9% Net Operating Income 232 203 + 14% Interest Expense 170 185 - 8%
Overall, revenues increased for the three months ended March 31, 1996 relative to the same period in 1995. The increase in commercial properties was due to higher occupancy and normal increases in current lease amounts due. The Partnership's real estate assets in the Boise and San Francisco Bay Area marketplace have experienced a significant imbalance between supply and demand. A combination of historic high building activity and recessionary economic activity caused severe market pressures on rental rates and occupancy levels. Market conditions in these markets appear to be stabilizing. The Jefferson Place Office Building is currently 92% occupied, while the 391 Forbes Building and the 1201 Cadillac Court Building are 100% occupied. Property operating expenses increased 9% for the three months ended March 31, 1996 relative to the same period in 1995. The Partnership general and administrative expense was unchanged in 1996 relative to the same period in 1995. The General Partner continues to exercise general and administrative expense control. INFLATION The Partnership's rental revenues in certain overbuilt real estate markets, including Boise and the San Francisco Bay Area, have not followed the overall inflationary trends of the economy. In the future, the General Partner believes market rate rents in those areas will more closely follow or exceed inflation. Operating costs for properties in most of the Partnership's markets have continued to follow inflationary trends. It is not expected that the Partnership will be materially impacted by inflationary forces in the near term. PART II. OTHER INFORMATION All items in Part II have been omitted since they are inapplicable or the answer is negative. SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. LDP-III Date: May 10, 1996 /s/ Gary K. Barr Gary K. Barr, President Landsing Equities Corporation Managing Partner of the General Partner Landsing Partners-III EX-27 2 ART. 5 FDS MAR-31-96 10-Q
5 0000727745 LDP-III 1,000 3-MOS DEC-31-1995 MAR-31-1996 336 0 83 0 0 163 12,307 4,360 8,529 84 0 0 0 0 587 8,529 0 351 0 0 273 0 170 0 0 0 0 0 0 (92) 0 0
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