-----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, MEiG4Ligv87VuNkAPn/b9DYnEgdmO6gK2Gazus5J0l/ioQmw6kkAmR/MAvI7MC7G 11CGloECWCBiQU6Vlyqa7g== 0000727745-97-000009.txt : 19970520 0000727745-97-000009.hdr.sgml : 19970520 ACCESSION NUMBER: 0000727745-97-000009 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970516 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: 97610028 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, 1997 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, 1997 AND DECEMBER 31, 1996 (Unaudited) (Dollars in thousands)
March 31, December 31, 1997 1996 INVESTMENTS IN REAL ESTATE: Rental properties $10,524 $10,510 Accumulated depreciation (4,153) (4,086) Rental properties - net 6,371 6,424 CASH AND CASH EQUIVALENTS (including interest bearing deposits of $95 in 1997 and $85 in 1996) 95 85 OTHER ASSETS: Short-term investment 199 298 Accounts receivable 19 17 Prepaid expenses and deposits 4 4 Deferred organization costs, loan costs and leasing commissions (net of accumulated amortization of $483 in 1997 and $474 in 1996) 116 126 Total other assets 338 445 TOTAL $ 6,804 $ 6,954 LIABILITIES AND PARTNERS' EQUITY LIABILITIES: Notes payable $ 6,879 $ 6,891 Accounts payable 36 0 Other liabilities 51 133 Total liabilities 6,966 7,024 PARTNERS' EQUITY (162) (70) TOTAL $ 6,804 $ 6,954 See Financial Notes.
LDP-III CONSOLIDATED STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996 (Unaudited) (In thousands except per share amounts)
1997 1996 REVENUE: Rental $ 269 $ 346 Interest 6 5 Total revenue 275 351 EXPENSE: Interest 151 170 Operating 93 119 Depreciation and amortization 78 114 General and administrative 45 40 Total expense 367 443 NET INCOME (LOSS) $ (92) $ (92) NET INCOME (LOSS) PER PARTNERSHIP UNIT Limited Partners (2) (2) General Partners 0 0 (2) (2) See Financial Notes.
LDP-III CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' EQUITY FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND THE YEAR ENDED DECEMBER 31, 1996 (Unaudited) (Dollars in thousands)
..LIMITED PARTNERS.. NUMBER OF GENERAL TOTAL PARTNERSHIP PARTNER PARTNERS' UNITS AMOUNT AMOUNT EQUITY BALANCE, JANUARY 1, 1996 37,136 $ 679 $ 0 $ 679 Net loss - 1996 (193) (193) Distribution - 1996 (556) (556) BALANCE, DECEMBER 31, 1996 37,136 (70) 0 (70) Net loss (92) (92) BALANCE, MARCH 31, 1997 37,136 $(162) $ 0 $ (162) See Financial Notes.
LDP-III CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996 (Unaudited) (In thousands)
1997 1996 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ (92) $ (92) Adjustments to reconcile net income (loss) to net cash used in operating activities: Depreciation 67 96 Change in operating assets and liabilities: Increase in accounts receivable (2) (59) Increase in prepaid expenses and deposits 0 (16) Increase in accounts payable 36 1 Decrease in other liabilities (82) (3) Net cash used in operating activities (73) (73) CASH FLOWS FROM INVESTING ACTIVITIES: Decrease in short term investments 99 0 Capital expenditures and construction (14) 0 Decrease in deferred expenses 10 13 Net cash provided by investing activities 95 13 CASH FLOWS FROM FINANCING ACTIVITIES: Payments on notes payable (12) (14) Net cash used in financing activities (12) (14) Increase (decrease) in cash and cash equivalents 10 (74) Cash and cash equivalents at beginning of period 85 410 Cash and cash equivalents at end of period $ 95 $ 336 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 1996 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, 1997 and 1996, are not necessarily indicative of the results that may be expected for the year ending December 31, 1997. 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 $151,000 and $170,000 for the three months ended March 31, 1997 and 1996, 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's current portfolio consists of fee title ownership of two properties located in two geographic areas. The Partnership's property investments are: Jefferson Place Office Building, Boise, Idaho, and 1201 Cadillac Court Building, Milpitas, California. LIQUIDITY AND CAPITAL RESOURCES As of March 31, 1997, the Partnership's consolidated cash balance totaled $95,000. 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 1997, the Partnership experienced a net increase in cash of $10,000. Short-term investments decreased $99,000 during the first quarter of 1997. As of March 31, 1997, cash plus short-term investments totaled $294,000 versus a balance of $383,000 at December 31, 1996. Management believes the cash flow from operations of the remaining two properties, Jefferson Place and 1201 Cadillac, will be sufficient to cover the operating costs of the Partnership. The Partnership has successfully negotiated a new lease with the sole tenant at 1201 Cadillac, which will significantly increase revenues for 1997. Short term investments (cash reserve) of $198,000 should remain in tact for the balance of 1997. The Partnership does not plan any cash distributions to its limited partners in 1997. 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 1997 and 1996:
1997 1996 % Change Rental Revenue $ 268 $ 262 + 2% Operating Expense 93 110 - 15% Net Operating Income 175 152 + 15% Interest Expense 151 152 0%
Overall, revenues increased for the three months ended March 31, 1997 relative to the same period in 1996. The increase in commercial properties was due to higher occupancy and normal increases in current lease amounts due. The Jefferson Place Office Building is currently 94% occupied, while the 1201 Cadillac Court Building is 100% occupied. Property operating expenses decreased 15% for the three months ended March 31, 1997 relative to the same period in 1996. The Partnership general and administrative expense increased $5,000 in 1997 relative to the same period in 1996. 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 12, 1997 /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-31-97
5 1000 3-MOS DEC-31-1997 MAR-31-1997 95 0 19 0 0 319 10,524 (4,153) 6,804 87 0 0 0 0 (162) 6,804 0 275 0 0 216 0 151 0 0 0 0 0 0 (92) 0 0
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