-----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, WyUdJBbLZ+MW2VnxVYUcMzQXI9w84mXzX4J51McrU/TxFcgAzEQ2aTAj0Ks861EG 9iiFkNBwQDYbDZ8zpFOmag== 0000727745-96-000010.txt : 19960816 0000727745-96-000010.hdr.sgml : 19960816 ACCESSION NUMBER: 0000727745-96-000010 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960815 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: 96615828 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 June 30, 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, JUNE 30, 1996 AND DECEMBER 31, 1995 (Unaudited) (Dollars in thousands)
June 30, December 31, 1996 1995 INVESTMENTS IN REAL ESTATE: Rental properties $12,336 $12,306 Accumulated depreciation (4,436) (4,264) Rental properties - net 7,900 8,042 CASH AND CASH EQUIVALENTS (including interest bearing deposits of $49 in 1996 and $104 in 1995) 129 212 OTHER ASSETS: Short-term investment 198 198 Accounts receivable 30 24 Prepaid expenses and deposits 10 8 Deferred organization costs, loan costs and leasing commissions (net of accumulated amortization of $565 in 1996 and $536 in 1995) 145 152 Total other assets 383 382 TOTAL $8,412 $8,636 LIABILITIES AND PARTNERS' EQUITY LIABILITIES: Notes payable $7,864 $7,871 Accounts payable 5 5 Other liabilities 83 81 Total liabilities 7,952 7,957 PARTNERS' EQUITY 460 679 TOTAL $8,412 $8,636 See Financial Notes.
LDP-III STATEMENTS OF OPERATIONS (Unaudited) (In thousands except per share amounts)
Three Months Ended Six Months Ended June 30 June 30 1996 1995 1996 1995 REVENUE: Rental $ 307 $ 336 $ 653 $ 638 Interest 4 8 9 18 Total revenue 311 344 662 656 EXPENSE: Interest 181 185 351 370 Operating 117 125 236 233 Depreciation and amortization 87 104 201 211 General and administrative 53 65 93 103 Total expense 438 479 881 917 NET INCOME (LOSS) $(127) $(135) $(219) $(261) NET LOSS PER PARTNERSHIP UNIT $ (3) $ (4) $ (6) $ (7) See Financial Notes.
LDP-III CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' EQUITY FOR THE SIX MONTHS ENDED JUNE 30, 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 219 219 BALANCE, JUNE 30, 1996 37,136 $ 460 $ 0 $ 460 See Financial Notes.
LDP-III CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995 (Unaudited) (In thousands)
1996 1995 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ (219) $ (261) Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation and amortization 171 182 Change in operating assets and liabilities: Increase in accounts receivable (6) (31) Increase in prepaid expenses and deposits (2) (3) Decrease in accounts payable 0 (20) Increase in other liabilities 3 53 Net cash used in operating activities (53) (80) CASH FLOWS FROM INVESTING ACTIVITIES: Capital expenditures (30) (27) Decrease (increase) in deferred expenses 7 (5) Net cash used in investing activities (23) (32) CASH FLOWS FROM FINANCING ACTIVITIES: Payments on notes payable (8) (258) Net cash used in financing activities (8) (258) Decrease in cash and cash equivalents (84) (370) Cash and cash equivalents at beginning of period 410 859 Cash and cash equivalents at end of period $ 326 $ 489 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 six months ended June 30, 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 $351 and $370 for the six months ended June 30, 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 three 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 June 30, 1996, the Partnership's consolidated cash balance totaled $129,000. 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 six months of 1996, the Partnership experienced a net decrease in cash of $84,000. Uses of cash included $30,000 for property capital expenditures and leasing commissions, $8,000 for principal payments on notes payable, and $46,000 for operations. As of June 30, 1996, cash plus short-term investments totaled $326,000 versus a balance of $410,000 at December 31, 1995. 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 six months of 1996 and 1995:
1996 1995 % Change Rental Revenue $ 653 $ 656 0% Operating Expense 329 335 (2%) Net Operating Income 324 321 1% Interest Expense $ 351 $ 370 (5%)
Overall, there was a slight decrease in revenues for the six months ended June 30, 1996 relative to the same period in 1995. 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. Property operating expenses decreased 2% for the six months ended June 30, 1996 relative to the same period in 1995. This was primarily due to greater efficiency of operations at the commercial and apartment properties. The Partnership general and administrative expense decreased 10% in 1996 relative to the same period in 1995. The General Partner continues to exercise general and administrative expense control. Occupancy increased slightly during the quarter. 391 Forbes and 1201 Cadillac are fully occupied. The Jefferson Place office building is currently 92% occupied. PROPERTY SALE During the second quarter, 391 Forbes was marketed for sale and placed under contract. While the contract has some contingencies, it is expected the property will be sold during the third quarter. INFLATION In the past, the Partnership's rental revenues in certain over built real estate markets, including Boise and 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: August 14, 1996 /s/ Gary K. Barr Gary K. Barr, President Landsing Equities Corporation Managing Partner of the General Partner Landsing Partners-III EX-27 2
5 0000727745 LDP-III 1,000 6-MOS DEC-31-1996 JUN-30-1996 327 0 30 0 0 155 12,336 4,436 8,412 88 0 0 0 0 460 8,412 0 662 0 0 530 0 351 0 0 0 0 0 0 (219) 0 0
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