-----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, OVlJvlCKsaJkvpOxezFatfEQgpRWk92nWXnFmZUxXJ7Gs24aSXXrbIaplBEkpoXe cEiSzU2HgVkBluzLoJptuw== 0000731245-96-000004.txt : 19960812 0000731245-96-000004.hdr.sgml : 19960812 ACCESSION NUMBER: 0000731245-96-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960809 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: PRESIDENTIAL REALTY CORP/DE/ CENTRAL INDEX KEY: 0000731245 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 131954619 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-08594 FILM NUMBER: 96607107 BUSINESS ADDRESS: STREET 1: 180 S BROADWAY CITY: WHITE PLAINS STATE: NY ZIP: 10605 BUSINESS PHONE: 9149481300 MAIL ADDRESS: STREET 1: 180 SOUTH BROADWAY CITY: WHITE PLAINS STATE: NY ZIP: 10605 10-Q 1 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 1-8594 ------- PRESIDENTIAL REALTY CORPORATION ------------------------------- (Exact name of registrant as specified in its charter) Delaware 13-1954619 --------- ---------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 180 South Broadway, White Plains, New York 10605 ------------------------------------------ ------ (Address of principal executive offices) (Zip Code) Registrant's telephone number, indicating area code 914-948-1300 ------------ 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 ------ ------ The number of shares outstanding of each of the issuer's classes of common stock as of the close of business on August 7, 1996 was 478,940 shares of Class A common and 3,062,061 shares of Class B common. PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES Index to 10-Q For the Six Months Ended June 30, 1996 Part I - Financial Information (Unaudited) Consolidated Balance Sheets Consolidated Statements of Operations Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements Management's Discussion and Analysis of Financial Condition and Results of Operations Part II - Other Information Item 6. Exhibits and Reports on Form 8-K PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited)
Assets June 30, December 31, 1996 1995 ------------ ------------ Mortgage portfolio (Note 2): Sold properties, accrual $32,138,313 $34,605,410 Related parties, accrual 1,038,370 1,090,746 Sold properties, impaired 14,734,240 16,080,144 Related parties, impaired 1,578,645 1,639,396 ------------ ------------ Total mortgage portfolio 49,489,568 53,415,696 ------------ ------------ Less discounts: Sold properties, accrual 3,161,967 3,554,902 Related parties, accrual 152,531 162,766 Sold properties, impaired 7,805,377 7,829,694 ------------ ------------ Total discounts 11,119,875 11,547,362 ------------ ------------ Less deferred gains: Sold properties, accrual 14,057,615 14,830,873 Sold properties, impaired 5,524,099 6,516,474 Related parties, impaired 1,578,645 1,639,396 ------------ ------------ Total deferred gains 21,160,359 22,986,743 ------------ ------------ Net mortgage portfolio (of which $578,218 in 1996 and $1,878,646 in 1995 are due within one year) 17,209,334 18,881,591 ------------ ------------ Real estate (Note 3) 24,754,083 23,871,618 Less: accumulated depreciation 5,348,397 5,073,887 ------------ ------------ Net real estate 19,405,686 18,797,731 ------------ ------------ Foreclosed properties (Note 4) 620,996 601,434 Minority partners' interest (Note 5) 3,693,988 3,971,048 Prepaid expenses and deposits in escrow 1,210,520 1,327,000 Other receivables (net of valuation allowance of $117,932 in 1996 and $143,739 in 1995) 615,636 1,029,052 Other receivables (related party) 11,397 10,664 Securities available for sale (Note 6) 2,254,723 2,390,346 Cash and cash equivalents 3,675,384 1,306,505 Other assets 1,087,781 1,197,743 ------------ ------------ Total Assets $49,785,445 $49,513,114 ============ ============ See notes to consolidated financial statements.
PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited)
Liabilities and Stockholders' Equity June 30, December 31, 1996 1995 ------------ ------------- Liabilities: Mortgage debt: Properties owned (Note 7) $26,768,119 $26,977,997 Wrap mortgage debt on sold properties 5,838,793 6,060,537 ------------- ------------- Total (of which $1,004,194 in 1996 and $1,002,048 in 1995 are due within one year) 32,606,912 33,038,534 Executive pension plan liability (Note 10) 1,779,801 1,841,859 Accrued liabilities 1,896,338 1,776,117 Accrued postretirement cost (Note 11) 607,046 617,316 Deferred income 546,364 560,164 Accounts payable 242,341 346,522 Other liabilities 519,271 531,363 ------------- ------------- Total Liabilities 38,198,073 38,711,875 ------------- ------------- Stockholders' Equity: Common stock; par value $.10 a share (Note 1-C) Class A, authorized 700,000 shares, issued and outstanding 478,940 shares 47,894 47,894 Class B June 30, 1996 December 31, 1995 307,628 306,406 ------- ----------------- ----------------- Authorized: 10,000,000 10,000,000 Issued: 3,076,282 3,064,056 Treasury: 14,221 14,221 Additional paid-in capital 1,815,711 1,744,933 Retained earnings 9,695,535 8,905,779 Net unrealized loss on securities available for sale (Note 6) (86,828) (11,205) Class B, treasury stock (at cost) (192,568) (192,568) ------------- ------------- Total Stockholders' Equity 11,587,372 10,801,239 ------------- ------------- Total Liabilities and Stockholders' Equity $49,785,445 $49,513,114 ============= ============= See notes to consolidated financial statements.
PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
SIX MONTHS ENDED JUNE 30, --------------------------- 1996 1995 Income: ------------ ------------ Rental $4,348,245 $3,891,451 Interest on mortgages - sold properties 1,162,452 1,011,719 Interest on wrap mortgages 700,083 710,060 Interest on mortgages - related parties 137,312 124,706 Investment income 142,185 163,349 Other 29,075 37,106 ------------ ------------ Total 6,519,352 5,938,391 ------------ ------------ Costs and Expenses: General and administrative 1,144,975 987,583 Interest on wrap mortgage debt 126,454 136,431 Other interest 70,852 57,876 Depreciation on non-rental property 12,061 11,428 Rental property: Operating expenses 1,792,343 1,696,903 Interest on mortgages 1,101,237 1,140,338 Real estate taxes 400,732 376,286 Depreciation on real estate 319,941 299,199 Amortization of mortgage and organization costs 64,135 69,713 Minority interest share of partnership income 475,651 322,635 Loss from operations of foreclosed properties (Note 4) 17,473 31,544 Net gain from sales of foreclosed properties (Note 4) (64,605) ------------ ------------ Total 5,525,854 5,065,331 ------------ ------------ Income before net gain from sales of properties and securities 993,498 873,060 Net gain from sales of properties and securities 856,093 30,197 ------------ ------------ Net Income $1,849,591 $903,257 ============ ============ Earnings per Common Share (Note 1-C): Income before net gain from sales of properties and securities $0.28 $0.25 Net gain from sales of properties and securities 0.24 0.01 ------------ ------------ Net Income per Common Share $0.52 $0.26 ============ ============ Cash Distributions per Common Share $0.30 $0.30 ============ ============ Weighted Average Number of Shares Outstanding 3,530,047 3,512,787 ============ ============ See notes to consolidated financial statements.
PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
THREE MONTHS ENDED JUNE 30, --------------------------- 1996 1995 Income: ------------ ------------ Rental $2,118,388 $1,939,241 Interest on mortgages - sold properties 625,661 517,357 Interest on wrap mortgages 349,406 354,418 Interest on mortgages - related parties 69,202 64,532 Investment income 72,823 77,273 Other 13,992 22,610 ------------ ------------ Total 3,249,472 2,975,431 ------------ ------------ Costs and Expenses: General and administrative 507,099 471,007 Interest on wrap mortgage debt 62,592 67,603 Other interest 35,426 28,938 Depreciation on non-rental property 6,052 5,751 Rental property: Operating expenses 903,136 816,334 Interest on mortgages 549,380 571,242 Real estate taxes 201,610 187,472 Depreciation on real estate 160,922 151,121 Amortization of mortgage and organization costs 28,092 34,432 Minority interest share of partnership income 203,881 165,282 Loss from operations of foreclosed properties (Note 4) 7,744 19,036 Net gain from sales of foreclosed properties (Note 4) (44,839) ------------ ------------ Total 2,665,934 2,473,379 ------------ ------------ Income before net gain from sales of properties and securities 583,538 502,052 Net gain from sales of properties and securities 830,967 3,543 ------------ ------------ Net Income $1,414,505 $505,595 ============ ============ Earnings per Common Share (Note 1-C): Income before net gain from sales of properties and securities $0.16 $0.14 Net gain from sales of properties and securities 0.24 0.01 ------------ ------------ Net Income per Common Share $0.40 $0.15 ============ ============ Cash Distributions per Common Share $0.15 $0.15 ============ ============ See notes to consolidated financial statements.
PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
SIX MONTHS ENDED JUNE 30, ------------------------------------ 1996 1995 Cash Flows from Operating Activities: ------------ ------------ Cash received from rental properties $4,418,059 $4,054,490 Interest received 1,761,083 1,653,131 Interest paid on rental property mortgages (1,110,848) (1,136,492) Interest paid on wrap mortgage debt (126,454) (136,431) Cash disbursed for rental and foreclosed property operations (2,084,106) (1,985,959) Cash disbursed for general and administrative costs (1,209,612) (1,457,462) Miscellaneous disbursements (30,514) (34,478) ------------ ------------ Net cash provided by operating activities 1,617,608 956,799 ------------ ------------ Cash Flows from Investing Activities: Payments received on notes receivable 2,634,243 453,062 Payments disbursed for investments in notes receivable (11,096) (8,176) Net payments received on sales of foreclosed properties 151,306 Payments disbursed for additions and improvements (308,765) (277,651) Proceeds from sales of securities 100,496 113,000 Purchases of securities (40,000) (187,055) Net cash receipts from operations of foreclosed properties 3,705 6,863 ------------ ------------ Net cash provided by investing activities 2,378,583 251,349 ------------ ------------ Cash Flows from Financing Activities: Principal payments on mortgage debt: Properties owned (271,697) (250,846) Wrap mortgage debt on sold properties (221,744) (213,941) Mortgage debt payment from proceeds of mortgage refinancing (238,181) Mortgage proceeds 300,000 Mortgage costs (9,264) Cash distributions on common stock (1,059,835) (1,053,622) Proceeds from dividend reinvestment and share purchase plan 72,000 58,550 Distributions to minority partners (198,591) (229,257) ------------ ------------ Net cash used in financing activities (1,627,312) (1,689,116) ------------ ------------ Net Increase (Decrease) in Cash and Cash Equivalents 2,368,879 (480,968) Cash and Cash Equivalents, Beginning of Period 1,306,505 2,402,211 ------------ ------------ Cash and Cash Equivalents, End of Period $3,675,384 $1,921,243 ============ ============ See notes to consolidated financial statements.
PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
SIX MONTHS ENDED JUNE 30, ------------------------------------ 1996 1995 ------------ ------------ Reconciliation of Net Income to Net Cash Provided by Operating Activities Net Income $1,849,591 $903,257 ------------ ------------ Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 396,137 380,340 Gain from sales of properties and securities (856,093) (30,197) Net gain from sales of foreclosed properties (64,605) Amortization of discounts on notes and fees (424,506) (326,885) Decrease in accounts receivable 74,493 97,533 Decrease in accounts payable and accrued liabilities (56,288) (535,683) Decrease in deferred income (13,800) (27,163) Decrease in prepaid expenses, deposits in escrow and deferred charges 157,298 246,299 Decrease in security deposit liabilities (5,663) (7,483) Miscellaneous 20,788 (1,249) Minority share of partnership income 475,651 322,635 ------------ ------------ Total adjustments (231,983) 53,542 ------------ ------------ Net cash provided by operating activities $1,617,608 $956,799 ============ ============ Supplemental noncash disclosures: Notes received from sales of foreclosed properties $80,200 ============ ============ See notes to consolidated financial statements.
PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED JUNE 30, 1996 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. General - Presidential Realty Corporation ("Presidential" or the "Company"), a Real Estate Investment Trust ("REIT"), is engaged principally in the holding of notes and mortgages secured by real estate and in the ownership of income producing real estate. B. Principles of Consolidation - The consolidated financial statements include the accounts of Presidential Realty Corporation and its wholly owned subsidiaries. Additionally, the accompanying consolidated financial statements include 100% of the account balances of UTB Associates and PDL, Inc. and Associates Limited Co-Partnership ("Metmor Plaza Associates"), partnerships in which Presidential is the General Partner and owns a 66-2/3% interest and a 25% interest, respectively (see Note 5). All significant intercompany balances and transactions have been eliminated. C. Earnings Per Common Share - Per share data is based on the weighted average number of shares of Class A and Class B common stock outstanding and common stock equivalents during each period. For the six months ended June 30, 1996 and 1995, no dilution in per share earnings would have resulted from the exercise of stock options issued under the Company's stock option plans. D. Cash and Cash Equivalents - Cash and cash equivalents includes cash on hand, cash in banks and money market funds. E. Basis of Presentation - The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information. In the opinion of management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of the results for the respective periods have been reflected. These financial statements and accompanying notes should be read in conjunction with the Company's Form 10-K for the year ended December 31, 1995. F. Management Estimates - In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheets and income and expense for the period. Actual results could differ from those estimates. 2. MORTGAGE PORTFOLIO The Company's mortgage portfolio includes notes receivable - sold properties and notes receivable - related parties and includes both accrual and impaired loans. The Company complies with the provisions of Statement of Financial Accounting Standards ("SFAS") No. 114, "Accounting by Creditors for Impairment of a Loan" and, accordingly, has classified loans that are within the scope of this statement as impaired loans. Notes receivable - sold properties consist of: (1) Long-term purchase money notes from sales of properties previously owned by the Company. These purchase money notes have varying interest rates with balloon payments due at maturity. (2) Notes receivable from sales of cooperative apartment units. Substantially all of these notes were either received from Ivy Properties, Ltd. or its affiliates (collectively "Ivy") in connection with a settlement agreement between the Company and Ivy executed in November, 1991 (the "Settlement Agreement") or from sales of foreclosed cooperative apartments received from Ivy pursuant to the Settlement Agreement (see Note 4). These notes generally have market interest rates and the majority of these notes amortize monthly with balloon payments due at maturity. Notes receivable - related parties are all due from Ivy and consist of: (1) Purchase money notes resulting from sales of property or partnership interests to Ivy. (2) Notes receivable relating to loans made by the Company to Ivy in connection with Ivy's cooperative conversion business. In June of 1996, the Company received principal prepayments on two of its long- term purchase money notes, the Hoboken, New Jersey property note in the amount of $1,188,787 and the Town House, Memphis, Tennessee property note in the amount of $1,000,000. As a result, the Company recognized income on the Town House note from the amortization of discount of $76,473 and gain on sale of $773,258. At June 30, 1996, all of the notes in the Company's mortgage portfolio are current with the exception of those notes which are classified as impaired loans in accordance with SFAS No. 114. Two sold property loans, the Kent Terrace and the Fairfield Towers loans, and one related party loan, the Ivy Overlook loan, were classified as impaired loans at December 31, 1995. In February, 1996, the Kent Terrace loan was reclassified to real estate as a result of the Company's foreclosure of its loan and at June 30, 1996, the Fairfield Towers loan and the Ivy Overlook loan remain classified as impaired loans. These two loans are in the aggregate amount of $16,312,885 and have a net carrying value of $1,404,764 after deducting discounts of $7,805,377 and deferred gains of $7,102,744. In accordance with SFAS No. 114, the Company has determined that no allowances for credit losses are required for these loans because the net carrying value of these loans is less than the fair value of the underlying collateral. The Company recognizes income on these impaired loans only to the extent that such income is actually received. The average recorded investment in these loans during the six months ended June 30, 1996 and June 30, 1995 was $16,734,170 and $18,182,047, respectively. The Kent Terrace note, having an outstanding principal balance of $1,300,000 and a net carrying value of $329,212 after deducting a deferred gain of $970,788, was classified as an impaired loan at December 31, 1995. This note had been in default since October of 1994, and in February, 1996, the Company foreclosed on its mortgage and became the owner of the 112 unit apartment property in Martinsburg, West Virginia. As a result, in 1996, the $329,212 net carrying value of the note and the related deferred interest of $338,190 have been reclassified to real estate (see Note 3). With the exception of the Kent Terrace loan discussed above, there have been no significant changes in the status of the impaired loans since December 31, 1995. Condominium sales at the Fairfield Towers property have continued and an additional 19 units were sold during the six months ended June 30, 1996. The following table reflects the activity in impaired loans. IMPAIRED LOANS ----------------
Impaired Additions Impaired Loan (Payments or Loan Balance Adjustments) Balance Loan Description 12/31/95 1996 6/30/96 ----------------------------------- ------------- ------------- ------------ Notes receivable-sold properties: Properties previously owned- Fairfield Towers $14,780,144 ($45,904) $14,734,240 Kent Terrace (1) 1,300,000 (1,300,000) Notes receivable-related parties: Sold properties- Overlook 1,639,396 (60,751) 1,578,645 ------------- ------------- ------------ Total $17,719,540 ($1,406,655) $16,312,885 ============= ============= ============ Discount Deferred Net on Gain on Carrying Loans Loans Value Loan Description 6/30/96 6/30/96 6/30/96 ----------------------------------- ------------- ------------- ------------ Notes receivable-sold properties: Properties previously owned- Fairfield Towers ($7,805,377) ($5,524,099) $1,404,764 Kent Terrace (1) Notes receivable-related parties: Sold properties- Overlook (1,578,645) ------------- ------------- ------------ Total ($7,805,377) ($7,102,744) $1,404,764 ============= ============= ============ Six months ended June 30, ----------------------------- 1996 1995 ------------- ------------ Reported Interest Income and Amortization of Discount (Cash Basis) ----------------------------------- Fairfield Towers - interest income $91,072 $25,291 Fairfield Towers - amortization of discount 24,317 17,918 Kent Terrace - interest income (1) 48,723 Overlook - interest income 48,964 57,285 Overlook - additional interest income 22,359 ------------- ------------ Total $186,712 $149,217 ============= ============ Recognized Gain from Sale of Property ------------------------------------- Fairfield Towers $21,587 $15,906 Kent Terrace (1) Overlook 60,751 ------------- ------------ Total $82,338 $15,906 ============= ============ Nonreported Interest Income and Amortization of Discount --------------------------------------------------------- The following additional amounts would have been reported if these loans had been fully performing: Fairfield Towers - interest income $406,641 $471,583 Fairfield Towers - additional interest income 91,645 53,422 Fairfield Towers - amortization of discount 460,495 393,743 Kent Terrace - interest income (1) 86,639 Overlook - interest income 41,671 Overlook - additional interest income ------------- ------------ Total $958,781 $1,047,058 ============= ============ (1) In February, 1996, the Company completed the foreclosure of its $1,300,000 Kent Terrace mortgage and became the owner of the property. As a result, the net carrying value of the loan of $329,212, after a deferred gain of $970,788, was reclassified to real estate.
3. REAL ESTATE Real estate is comprised of the following: June 30, December 31, 1996 1995 ------------- ------------ Land $ 3,664,548 $ 3,615,176 Buildings and leaseholds 20,976,394 20,157,963 Furniture and equipment 113,141 98,479 ----------- ----------- Total real estate $24,754,083 $23,871,618 =========== =========== As discussed in Note 2, Presidential foreclosed on its Kent Terrace mortgage and became the owner of the property in February, 1996. The Company presently intends to hold this property as a rental property and, accordingly, reclassified the $329,212 net carrying value of the loan plus deferred interest of $338,190 to real estate on its consolidated balance sheet. 4. FORECLOSED PROPERTIES At June 30, 1996, Presidential owns 58 cooperative apartment units which it had received in satisfaction of certain loans due Presidential. These cooperative apartment units are located at five locations: 330 W. 72nd St., New York, N.Y. (3 units); Hastings Gardens, Hastings, N.Y. (5 units); 6300 Riverdale Avenue, Bronx, N.Y. (8 units); Towne House, New Rochelle, N.Y. (39 units) and Sherwood House, Long Beach, N.Y. (3 units). Cooperative apartment units at four of the above properties were received from Ivy in 1991 and 1992 in connection with the Settlement Agreement. The cooperative apartment units at Long Beach were received from Ivy in 1994 in payment of the outstanding loan on that property and other amounts due to Presidential pursuant to the Settlement Agreement. These cooperative apartment units are reported as foreclosed properties on Presidential's consolidated balance sheets and are carried at the lower of cost or estimated fair value (net of estimated costs to sell). Net loss from operations of foreclosed properties is reported as a separate line item on the statement of operations, while net cash receipts from operations of foreclosed properties reduces the Company's carrying value of the foreclosed property. The following table presents the Company's foreclosed properties, loss from operations of foreclosed properties, gain (loss) from sales of foreclosed properties and number of units sold: Foreclosed properties: ---------------------------
Property Name and Location ------------------------------------------------- Hastings 6300 Riverdale 330 W. 72nd St. Gardens Ave. New York, Hastings, Bronx, New York New York New York --------------- -------------- -------------- Balance January 1, 1996 $53,276 $47,040 $76,196 Capitalized costs Net cash receipts from operations (1) (2,182) --------------- -------------- -------------- Balance June 30, 1996 $51,094 $47,040 $76,196 =============== ============== ============== Loss from operations of foreclosed properties (1): -------------------------------------------------- Six months ended June 30, 1996 $5,614 $8,431 =============== ============== ============== Six months ended June 30, 1995 $17,078 $6,828 =============== ============== ============== Gain (loss) from sales of foreclosed properties (1): ---------------------------------------------------- Six months ended June 30, 1996 =============== ============== ============== Six months ended June 30, 1995 $31,184 =============== ============== ============== Number of units sold: --------------------------- Six months ended June 30, 1996 =============== ============== ============== Six months ended June 30, 1995 12 =============== ============== ============== Property Name and Location ------------------------------------------------- Towne House Sherwood House Total New Rochelle, Long Beach, Foreclosed New York New York Properties --------------- -------------- -------------- Balance January 1, 1996 $365,676 $59,246 $601,434 Capitalized costs 23,267 23,267 Net cash receipts from operations (1) (1,523) (3,705) --------------- -------------- -------------- Balance June 30, 1996 $387,420 $59,246 $620,996 =============== ============== ============== Loss from operations of foreclosed properties (1): -------------------------------------------------- Total Loss -------------- Six months ended June 30, 1996 $3,428 $17,473 =============== ============== ============== Six months ended June 30, 1995 $7,638 $31,544 =============== ============== ============== Gain (loss) from sales of foreclosed properties (1): ---------------------------------------------------- Total Gain (Loss) -------------- Six months ended June 30, 1996 =============== ============== ============== Six months ended June 30, 1995 $34,575 ($1,154) $64,605 =============== ============== ============== Number of units sold: --------------------------- Total Units Sold -------------- Six months ended June 30, 1996 =============== ============== ============== Six months ended June 30, 1995 3 2 17 =============== ============== ============== (1) Includes an allocation for home office overhead.
5. MINORITY PARTNERS' INTEREST Presidential is the General Partner of UTB Associates and Metmor Plaza Associates, partnerships in which Presidential has a 66-2/3% interest and a 25% interest, respectively. As the General Partner of these partnerships, Presidential exercises effective control over the business of these partnerships, and, accordingly, has included 100% of the account balances of these partnerships in the accompanying financial statements (see Note 1-B). The minority partners' interest reflects the minority partners' equity in the partnerships. Included in the Company's mortgage debt is a mortgage note payable by the Metmor Plaza Associates partnership which is substantially in excess of the historical cost of the property. This was due to a refinancing of the original mortgage note on the building and subsequent distribution of these proceeds to the partners. This event resulted in a negative partnership interest for each partner and a negative minority partners' interest on the Company's books. The estimated fair value of the building is significantly greater than the mortgage debt and the minority partners' interest is expected to be recovered when the building is sold and the partnership is liquidated. Minority partners' interest is comprised of the following: June 30, December 31, 1996 1995 ------------- ------------ Metmor Plaza Associates $3,938,144 $4,218,947 UTB Associates (244,156) (247,899) ---------- ---------- Total minority partners' interest $3,693,988 $3,971,048 ========== ========== 6. SECURITIES AVAILABLE FOR SALE The Company's investments are in marketable equity securities consisting of stocks of listed corporations. The Company does not acquire securities for purposes of engaging in trading activities and, as a result, the Company's investments are classified as securities available for sale in accordance with SFAS No. 115, "Accounting for Certain Investments in Debt and Equity Securities". Disposition of such securities may be appropriate for either liquidity management or in response to changing economic conditions. The cost and fair value of securities available for sale are as follows: June 30, December 31, 1996 1995 ----------- ------------ Cost $2,341,551 $2,401,551 Gross unrealized gains 23,916 37,845 Gross unrealized losses (110,744) (49,050) ---------- ---------- Fair value $2,254,723 $2,390,346 ========== ========== Net unrealized loss on securities available for sale, which is a separate component of stockholders' equity on the Company's consolidated balance sheets, increased by $75,623 from $11,205 at December 31, 1995 to $86,828 at June 30, 1996. During the six months ended June 30, 1996, the Company sold securities available for sale for gross proceeds of $101,500 and a gross (and net) gain of $496. During the six months ended June 30, 1995, the Company sold securities available for sale for gross proceeds of $113,000 and a gross (and net) loss of $1,002. Gains and losses on sales of securities are determined using the specific identification method. 7. MORTGAGE DEBT In June of 1996, the Company completed the refinancing of the mortgage on its Mapletree Industrial Center property in Palmer, Massachusetts. The prior mortgage of $238,181 was paid from the proceeds of the new $300,000 mortgage. The interest rate for the first year is 8.25% and will be adjusted annually to equal the Lender's prime rate on the adjustment date. The mortgage matures in June, 2011 and requires monthly payments of principal and interest in the initial amount of $2,910. This mortgage debt is secured by a lien on the Mapletree property and a guarantee of repayment by Presidential. 8. INCOME TAXES Presidential elected to qualify as a Real Estate Investment Trust effective January 1, 1982 under Sections 856-860 of the Internal Revenue Code. Under those sections, a REIT which distributes at least 95% of its real estate investment trust taxable income to its shareholders each year by the end of the following year and which meets certain other conditions will not be taxed on that portion of its taxable income which is distributed to its shareholders. For the year ended December 31, 1995, the Company had taxable income (before distributions to stockholders) of approximately $1,454,000 ($.41 per share), which included approximately $347,000 ($.10 per share) of capital gains. This amount will be reduced by approximately $8,000 of the 1995 distributions that were not utilized in reducing the Company's 1994 taxable income and by any eligible 1996 distributions that the Company may elect (under Section 858 of the Internal Revenue Code) to utilize as a reduction of its 1995 taxable income. As previously stated, in order to retain REIT status, Presidential is required to distribute 95% of its REIT taxable income (exclusive of capital gains). As of June 30, 1996, Presidential has distributed the required 95% of its 1995 REIT taxable income. In addition, although no assurances can be given, it is the Company's present intention to distribute all of its 1995 taxable income and, therefore, no provision for income taxes was made at December 31, 1995. Furthermore, the Company had taxable income (before distributions to stockholders) for the six months ended June 30, 1996 of approximately $1,798,000 ($.51 per share), which included approximately $1,306,000 ($.37 per share) of capital gains. This amount will be reduced by 1996 distributions that were not utilized in reducing the Company's 1995 taxable income and by any eligible 1997 distributions that the Company may elect to utilize as a reduction of its 1996 taxable income. Presidential has, for tax purposes, reported the gain from the sale of certain of its properties using the installment method. 9. COMMITMENTS AND CONTINGENCIES The Company has incurred environmental costs for environmental site investigations and the related response action outcome for potentially hazardous drums found at two sites on its Mapletree Industrial Center property in Palmer, Massachusetts. During the year ended December 31, 1995, the Company expensed $45,536 for the initial investigation and partial cleanup of one drum disposal site and accrued an additional $38,000 of environmental expenses for the completion of the response action outcome on this site and a site investigation at a second site. At June 30, 1996, there have been no significant changes to the 1995 estimated costs. Actual costs incurred may vary from these estimates due to the inherent uncertainties involved. 10. PENSION PLANS Defined Benefit Plan Effective January 1, 1994, the Company adopted a noncontributory defined benefit pension plan, which covers substantially all of its employees. The plan provides monthly retirement benefits commencing at age 65. The monthly benefit is equal to the sum of (1) 6.5% of average monthly compensation multiplied by the total number of plan years of service (up to a maximum of 10 years), plus (2) .62% of such average monthly compensation in excess of one- twelfth of covered compensation multiplied by the total number of plan years of service (up to a maximum of 10 years). The Company makes annual contributions that meet the minimum funding requirements and the maximum contribution limitations under the Internal Revenue Code. Periodic pension costs are reflected in general and administrative expenses in the Company's consolidated statement of operations. Net periodic pension cost for the six months ended June 30, 1996, included the following components: Service cost-benefits earned during the period $139,746 Interest cost on projected benefit obligation 18,690 Return on plan assets (21,967) Net amortization and deferrals 12,311 -------- Net periodic pension cost $148,780 ======== The assumptions used in determining net periodic pension cost were 7% for the discount rate, 7% for the expected long-term rate of return on assets, and 5% for the average increase in compensation. Executive Pension Plan Presidential has employment contracts with several active and retired key officers and employees. Such contracts are being accounted for as constituting pension agreements. The contracts generally provide for annual benefits in specified amounts commencing upon retirement for each participant for life, with an annual adjustment for an increase in the consumer price index. Presidential complies with the provisions of SFAS No. 87, "Employers' Accounting for Pensions". The principal assumption used in the accounting was a discount rate of 7%. Periodic pension costs are reflected in general and administrative expenses in the Company's consolidated statement of operations. Net periodic pension cost for the six months ended June 30, 1996, included the following components: Service cost-benefits earned during the period $ 6,929 Interest cost on projected benefit obligation 94,540 Net amortization 32,978 -------- Net periodic pension cost $134,447 ======== Presidential has elected not to fund expenses accrued under these contracts. 11. POSTRETIREMENT BENEFITS Presidential has employment contracts with several active and retired key officers and employees which provide for postretirement benefits other than pensions (such as health care benefits). The Company complies with the provisions of SFAS No. 106,"Employers' Accounting for Postretirement Benefits Other Than Pensions". SFAS No. 106 requires the Company to accrue the estimated cost of retiree benefit payments during the years the employee provides services. The components of postretirement benefit cost for the six months ended June 30, 1996, were as follows: Service cost - benefits earned $ 2,931 Interest cost on accumulated postretirement benefit obligation 18,260 Net amortization (4,229) ------- Postretirement benefit cost $16,962 ======= PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FOR THE SIX AND THREE MONTHS ENDED JUNE 30, 1996 AND 1995 Results of Operations Financial Information for the six months ended June 30, 1996 and 1995: - ---------------------------------------------------------------------- Income increased by $580,961 from $5,938,391 in 1995 to $6,519,352 in 1996 primarily as a result of increases in rental income and interest on mortgages-sold properties, partially offset by a decrease in investment income. Rental income increased by $456,794 from $3,891,451 in 1995 to $4,348,245 in 1996 primarily as a result of additional income of $122,491 received for lease cancellation penalties at the Metmor Plaza property and rental income of $163,901 at the Kent Terrace property, which the Company became the owner of in February, 1996, as a result of the foreclosure of its mortgage on that property. In addition, rental income increased by $205,943 at the Cambridge Green, Continental Gardens and Metmor Plaza properties. Interest on mortgages-sold properties increased by $150,733 from $1,011,719 in 1995 to $1,162,452 in 1996 primarily due to an increase in the interest payments of $65,781 received on the Fairfield Towers note and $76,473 of increased interest income as a result of the amortization of discount on the Town House note, which was prepaid in June, 1996. Investment income decreased by $21,164 from $163,349 in 1995 to $142,185 in 1996 primarily as a result of decreased interest income on cash and cash equivalent accounts. Costs and expenses increased by $460,523 from $5,065,331 in 1995 to $5,525,854 in 1996 primarily due to increases in general and administrative expenses, an increase in minority interest share of partnership income and increases in other rental property expenses. General and administrative expenses increased by $157,392 from $987,583 in 1995 to $1,144,975 in 1996 primarily due to increases in professional fees of $77,253, of which approximately $42,000 was incurred in connection with a proposed acquisition of property which was not completed, and salary expense of $73,673, of which $64,141 pertained to bonuses. Rental property operating expenses increased by $95,440 from $1,696,903 in 1995 to $1,792,343 in 1996. The addition of the Kent Terrace property resulted in an increase of $170,693 and the write-off of the carrying value on 4 acres of vacant land in Hartford, Connecticut resulted in an increase of $22,036. These increases were offset by decreases of $43,166 in repairs and maintenance and $55,789 in insurance expense at the Palmer Mapletree property. Rental property mortgage interest decreased by $39,101 from $1,140,338 in 1995 to $1,101,237 in 1996. This decrease is primarily due to a decrease of $35,979 for the Metmor Plaza property as a result of principal payments and lower interest rates. The Metmor Plaza mortgage has a variable rate of interest based on the LIBOR rate and the "Section 936" rate (which is established by the lender), but cannot exceed 8% per annum. Real estate tax expense increased by $24,446 from $376,286 in 1995 to $400,732 in 1996 as a result of increased real estate taxes of $11,751 at the Continental Gardens property and real estate taxes of $12,717 as a result of the addition of the Kent Terrace property. Minority interest share of partnership income increased by $153,016 from $322,635 in 1995 to $475,651 in 1996, as a result of an increase in partnership income on the Metmor Plaza property. There were no sales of foreclosed properties in 1996 compared to a net gain from sales of foreclosed properties of $64,605 in 1995. Net gain from sales of properties and securities are sporadic (as they depend on the timing of sales or the receipt of installments or prepayments on purchase money notes). In 1996, the net gain from sales of properties and securities was $856,093 compared with $30,197 in 1995. In the 1996 period, the Company recognized $773,258 of deferred gain from the sale of the Town House property as a result of the $1,000,000 principal prepayment received on that note. In addition, the Company recognized deferred gains of $60,751 and $21,587 from the sales of the Overlook and Fairfield Towers properties, respectively, as a result of principal payments received on those notes. Financial Information for the three months ended June 30, 1996 and 1995: - ------------------------------------------------------------------------ Income increased by $274,041 from $2,975,431 in 1995 to $3,249,472 in 1996 primarily as a result of increases in rental income and interest on mortgages-sold properties. Rental income increased by $179,147 from $1,939,241 in 1995 to $2,118,388 in 1996 primarily as a result of increased rental income of $102,798 at the Cambridge Green, Continental Gardens and Metmor Plaza properties and rental income of $83,472 at the Kent Terrace property. Interest on mortgages-sold properties increased by $108,304 from $517,357 in 1995 to $625,661 in 1996 primarily due to the receipt of additional interest payments of $41,291 on the Fairfield Towers note and $76,473 of increased interest income as a result of the amortization of discount on the Town House note. Costs and expenses increased by $192,555 from $2,473,379 in 1995 to $2,665,934 in 1996 primarily due to increases in general and administrative expenses, an increase in minority interest share of partnership income and increases in other rental property expenses. General and administrative expenses increased by $36,092 from $471,007 in 1995 to $507,099 in 1996 primarily due to increases in salary expense of $36,400, of which $35,735 pertained to bonuses, and increases of $19,664 in professional fees, which were partially offset by a $16,226 decrease in insurance expense. Rental property operating expenses increased by $86,802 from $816,334 in 1995 to $903,136 in 1996. This increase was primarily the result of the addition of the Kent Terrace property which resulted in an increase of $103,899. Repairs and maintenance expenses at the Metmor Plaza property increased by $13,820 and the write-off of the carrying value of 4 acres of vacant land in Hartford, Connecticut resulted in an increase of $22,036. These increases were offset by decreases of $33,651 in bad debts and $20,853 in insurance expense at the Palmer Mapletree property. Rental property mortgage interest decreased by $21,862 from $571,242 in 1995 to $549,380 in 1996. This decrease is primarily due to a decrease of $20,530 for the Metmor Plaza property as a result of principal payments and lower interest rates. Real estate tax expense increased by $14,138 from $187,472 in 1995 to $201,610 in 1996 as a result of increased real estate taxes of $5,876 at the Continental Gardens property and real estate taxes of $7,630 as a result of the addition of the Kent Terrace property. Minority interest share of partnership income increased by $38,599 from $165,282 in 1995 to $203,881 in 1996, as a result of an increase in partnership income on the Metmor Plaza property. There were no sales of foreclosed properties in 1996 compared to a net gain from sales of foreclosed properties of $44,839 in 1995. Net gain from sales of properties and securities are sporadic (as they depend on the timing of sales or the receipt of installments or prepayments on purchase money notes). In 1996, the net gain from sales of properties and securities was $830,967 compared with $3,543 in 1995. During 1996, the Company received a prepayment of $1,000,000 on the Town House note, resulting in the recognition of deferred gain from sales of $773,258. In addition, the Company recognized deferred gains of $55,436 and $2,273 from the sales of the Overlook and Fairfield Towers properties, respectively, as a result of principal payments received on those notes. Balance Sheet Net mortgage portfolio decreased by $1,672,257 from $18,881,591 at December 31, 1995 to $17,209,334 at June 30, 1996. This decrease was primarily the result of the $2,188,787 prepayments received on the purchase money notes secured by the Town House, Memphis, Tennessee property ($1,000,000) and the Hoboken, New Jersey property ($1,188,787). These decreases were partially offset by the recognition of $773,258 of deferred gain on the Town House note. In addition, the $329,212 net carrying value of the Kent Terrace loan was reclassified from net mortgage portfolio to real estate. In February, 1996, the Company foreclosed its mortgage and became the owner of the Kent Terrace property. Real estate increased by $882,465 from $23,871,618 at December 31, 1995 to $24,754,083 at June 30, 1996. This increase was primarily the result of the 667,402 addition of the Kent Terrace property in February, 1996. Upon receipt of the property, the Company reclassified the $329,212 net carrying value of the loan from net mortgage portfolio and also reclassified the $338,190 related deferred interest receivable from other receivables to real estate. The Company also recorded $152,147 in acquisition and improvement costs for the Kent Terrace property and $84,952 for additions and improvements to other properties. In June, 1996, the Company wrote off to expense the $22,036 carrying value on 4 acres of vacant land located in Hartford, Connecticut. Other receivables decreased by $413,416 from $1,029,052 at December 31, 1995 to $615,636 at June 30, 1996 primarily as a result of the reclassification of the $338,190 deferred interest receivable on Kent Terrace to real estate and the receipt of $75,000 of accrued interest on notes receivable - sold properties. Securities available for sale decreased by $135,623 from $2,390,346 at December 31, 1995 to $2,254,723 at June 30, 1996. This decrease was the result of the sale of $100,000 of securities and a $75,623 decrease in the fair value of securities, offset by a $40,000 purchase of securities. Other assets decreased by $109,962 from $1,197,743 at December 31, 1995 to $1,087,781 at June 30, 1996. This decrease was primarily the result of the amortization of $64,135 of mortgage costs and the write-off of $40,818 of deferred charges. Net unrealized loss on securities available for sale increased by $75,623 from $11,205 at December 31, 1995 to $86,828 at June 30, 1996. This increase in unrealized loss is a result of the decrease in the fair value of the securities available for sale for the period. Liquidity and Capital Resources Management believes that the Company has sufficient liquidity and capital resources to carry on its existing business and, barring any unforeseen circumstances, to pay the dividends required to maintain REIT status in the foreseeable future. The Company is actively seeking to expand its portfolio of real estate equities and plans to utilize for this purpose a portion of its available funds and additional funds that the Company may receive from balloon payments due on the Company's notes receivable as they mature, as well as funds that may be available from external sources. However, the Company's plans to expand its portfolio of real estate equities may be adversely affected by limitations on its ability to obtain funds for investment on satisfactory terms from external sources. Presidential does not maintain any line of credit or short term financing arrangement. At the present time, Presidential obtains funds for working capital and investment from its available cash and cash equivalents, from operating activities and from repayments of its mortgage portfolio. At June 30, 1996, Presidential had $3,675,384 in available cash and cash equivalents and $2,254,723 in securities available for sale. The June 30, 1996 total of $5,930,107 represents an increase of $2,233,256 from the $3,696,851 total at December 31, 1995. This increase is primarily the result of the receipt of $2,188,787 in prepayments on the Town House and Hoboken purchase money notes and the receipt of $61,819 of net proceeds from the refinancing of the mortgage on the Palmer Mapletree property. Operating Activities Presidential's principal source of cash from operating activities is from interest on its mortgage portfolio, which was $1,634,629 in 1996, net of interest payments on wrap mortgage debt. In 1996, net cash received from rental property operations was $1,024,514, which is net of distributions to minority partners but before additions and improvements and mortgage amortization. Investing Activities Presidential holds a portfolio of mortgage notes receivable which consist primarily of notes arising from sales of real properties previously owned by the Company. Some of these notes wrap around underlying mortgage debt (the "Underlying Debt") which is paid by Presidential only out of funds received on its mortgage portfolio relating to the Underlying Debt. During 1996, the Company received principal payments of $2,412,499 on its mortgage portfolio (net of any principal payments attributable to the Underlying Debt), of which $2,336,346 represented prepayments, which are sporadic and cannot be relied upon as a regular source of liquidity. During 1996, the Company invested $308,765 in additions and improvements to its properties. Financing Activities The Company's indebtedness at June 30, 1996, consisted of $32,606,912 of mortgages (including $5,838,793 of underlying indebtedness on properties not owned by the Company but on which the Company holds wraparound mortgages). The mortgage debt, which is secured by individual properties, is nonrecourse to the Company with the exception of the Palmer Mapletree mortgage which was refinanced in June of 1996, and which is secured by the property and a guarantee of repayment by Presidential. Generally mortgage debt repayment is serviced with cash flow from the operations of the individual properties. During 1996, the Company made $271,697 of principal payments on mortgage debt on properties which it owns. In addition, the Company refinanced the mortgage on its Palmer Mapletree property in Palmer, Massachusetts in June of 1996 and the prior mortgage of $238,181 was paid from the proceeds of the new $300,000 mortgage. The mortgage matures in June, 2011, requires monthly payments of principal and interest in the initial amount of $2,910 and has an interest rate of 8.25% for the first year, after which, the interest rate will be adjusted annually to equal the Lender's prime rate. The mortgages on the Company's properties are self-liquidating at fixed rates of interest with the exception of the mortgages on Metmor Plaza, Building Industries Center and Continental Gardens. During 1996, Presidential declared and paid cash distributions of $1,059,835 to its shareholders and received proceeds from dividend reinvestments of $72,000. Fairfield Towers The Company's financial performance and liquidity in 1996 and subsequent years will be affected by the results of the condominium conversion of Fairfield Towers Apartments in Brooklyn, New York by the owner of that property. The Company holds a second mortgage having an outstanding principal balance of $14,734,240 on the 1,042 condominium apartment units still owned by the sponsor at this property, which mortgage is subordinate to a first mortgage having an outstanding principal balance of $15,240,711. The first mortgage is due on December 19, 1996. During 1996, the Company, along with the owner of the property, will seek to negotiate an extension and modification, or refinancing, of the first mortgage on terms that will facilitate the continued sales of condominium units at the property and protect Presidential's interest in this loan. Until the first mortgage is repaid (when approximately 50% of the units have been sold) Presidential will receive basic interest on its note payable only out of net cash flow from operations of the property and release payments upon the sale of each condominium unit averaging $3,000 per unit. All unpaid basic interest and additional interest (which is based on percentages of gross sales proceeds) will be deferred until after repayment of the first mortgage. While the Company's return on the loan during the initial years of the conversion has been and will continue to be limited, if the conversion is successful and the first mortgage is repaid, the Company expects to ultimately recover the outstanding principal balance of the note and substantial amounts of basic and additional interest. In June of 1994, the owners of the Fairfield Towers property closed the first sales of the condominium units pursuant to the conversion of the property to condominium status. At June 30, 1996, a total of 110 units were sold. Environmental Matters The Company is involved in various stages of environmental projects for the investigation and removal of potentially hazardous drums found at two sites on its Mapletree Industrial Center property in Palmer, Massachusetts. Accrued liabilities for environmental matters have been recorded in operating expenses when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. These estimates are exclusive of claims against third parties and have not been discounted. Actual costs incurred may vary from these estimates due to the inherent uncertainties involved. The Company believes that any additional liability in excess of amounts provided which may result from the resolution of this matter will not have a material adverse effect on the financial condition, liquidity or the cash flow of the Company. For the year ended December 31, 1995, amounts charged to operations for environmental expenses were $83,536. There have been no significant additional charges for the six months ended June 30, 1996. PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K. (a) Exhibit 27. Financial Data Schedule. (b) No reports on form 8-K have been 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. PRESIDENTIAL REALTY CORPORATION (Registrant) DATE: August 9, 1996 By: /s/ Jeffrey F. Joseph --------------------- Jeffrey F. Joseph President DATE: August 9, 1996 By: /s/ Elizabeth Delgado --------------------- Elizabeth Delgado Treasurer EX-27 2
5 6-MOS DEC-31-1996 JUN-30-1996 3,675,384 2,254,723 17,954,299 117,932 0 8,345,878 24,754,083 5,348,397 49,785,445 3,689,237 31,602,718 0 0 355,522 11,231,850 49,785,445 0 6,519,352 0 3,070,275 0 0 1,298,543 1,849,591 0 1,849,591 0 0 0 1,849,591 0.52 0.52
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