-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, gIHREAW/twUE7+KNZbYjht6rjT+RJwEYGny7f574p5t0kK/TVQYiAyg5mhheZrwC XEoaHQKy38iu8WgDijGgCA== 0000745481-95-000002.txt : 19950505 0000745481-95-000002.hdr.sgml : 19950505 ACCESSION NUMBER: 0000745481-95-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950504 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SECURED INVESTMENT RESOURCES FUND LP CENTRAL INDEX KEY: 0000745481 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 480979566 STATE OF INCORPORATION: KS FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-14542 FILM NUMBER: 95534499 BUSINESS ADDRESS: STREET 1: 5453 W 61ST PL CITY: MISSION STATE: KS ZIP: 66205 BUSINESS PHONE: 9133845700 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarter ended March 31, 1995 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period to Commission file number 0-14542 SECURED INVESTMENT RESOURCES FUND, L.P. (Exact name of registrant as specified in its charter) Kansas 48-0979566 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 5453 W. 61st Place, Mission, Kansas 66205 (Address of principal executive offices) (Zip Code) (Registrant's telephone number, including area code) (913) 384-5700 Securities registered pursuant to Section 12(b) of the Act: None Securities registered pursuant to Section 12(g) of the Act: Limited Partnership Interests ("Units") 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 such shorter periods 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 SECURED INVESTMENT RESOURCES FUND, L.P. Index PART I. FINANCIAL INFORMATION Page Item 1. Financial Statements (Unaudited): Balance Sheets -- March 31, 1995 and December 31, 1994 3-4 Statements of Operations -- Three Months Ended March 31, 1995 and 1994 5 Statements of Partnership Capital -- Three Months Ended March 31, 1995 and the Years Ended December 31, 1994, and 1993 6 Statements of Cash Flows -- Three Months Ended March 31, 1995 and 1994 7-8 Notes to Financial Statements 9-10 Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations 11-12 PART II. OTHER INFORMATION Item 1. Legal Proceedings 13 Item 2. Changes in Securities 13 Item 3. Defaults Upon Senior Securities 13 Item 4. Submission of Matters to a Vote of Security Holders 13 Item 5. Other Information 13 Item 6. Exhibits and Reports on Form 8-K 13 SIGNATURES 14 PART I. FINANCIAL INFORMATION Item 1. FINANCIAL STATEMENTS SECURED INVESTMENT RESOURCES FUND, L.P. BALANCE SHEETS March 31, 1995 December 31, (Unaudited) 1994 ASSETS INVESTMENT PROPERTIES Land and buildings $ 16,377,255 $ 16,377,255 Furniture, fixtures and equipment 1,508,996 1,478,563 __________ __________ 17,886,251 17,855,818 Less accumulated depreciation and allowance for losses 5,637,590 5,493,355 __________ __________ 12,248,661 12,362,463 RESTRICTED DEPOSITS Capital Improvement Cash Reserves $ 183,090 --- OTHER ASSETS Cash 180,633 182,262 Rents and other receivables,less allowance of $126,874 in 1995 and $141,476 in 1994 32,298 244,318 Prepaid expenses 50,145 20,932 Debt issuance costs, net of accumulated amortization of $20,654 in 1995 and $13,543 in 1994 170,129 133,371 Commercial commissions, deposits and other 26,738 29,859 __________ __________ 459,943 610,742 __________ __________ $ 12,891,694 $ 12,973,205 SECURED INVESTMENT RESOURCES FUND, L.P. BALANCE SHEETS--CONT'D March 31, 1995 December 31, (Unaudited) 1994 LIABILITIES AND PARTNERSHIP CAPITAL Mortgage debt--Note B $ 11,784,022 $ 11,575,692 Accrued interest 198,183 282,889 Accounts payable and accrued expenses 251,821 371,896 Due to related parties--Note C 62,100 62,100 Unearned revenue 54,479 60,859 Tenant security deposits 81,527 79,217 TOTAL LIABILITIES 12,432,132 12,432,653 PARTNERSHIP CAPITAL General Partners Capital contribution 1,000 1,000 Partnership deficit (51,502) (50,692) __________ __________ (50,502) (49,692) Limited Partners Capital contributions 5,608,838 5,608,838 Partnership deficit (5,098,774) (5,018,594) __________ __________ 510,064 590,244 TOTAL PARTNERSHIP CAPITAL 459,562 540,552 __________ __________ $ 12,891,694 $ 12,973,205 See notes to financial statements. SECURED INVESTMENT RESOURCES FUND, L.P. STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended March 31, 1995 1994 REVENUES Rents $ 553,034 $490,606 Interest 523 7 Maintenance escalations 31,962 25,110 ________ ________ 585,519 515,723 OPERATING AND ADMINISTRATIVE EXPENSES Property operating expenses 178,360 164,706 General and administrative expenses 13,544 12,991 Professional services 12,940 30,594 Management Fees and Reimbursed direct expenses 31,295 21,208 ________ ________ 236,139 229,499 NET OPERATING INCOME 349,380 286,224 NON-OPERATING EXPENSES Interest 279,024 279,858 Depreciation and amortization 151,346 149,435 ________ ________ 430,370 429,293 PARTNERSHIP LOSS $ (80,990) $(143,069) Allocation of loss: General Partners (810) (1,431) Limited Partners (80,180) (141,638) ________ ________ $ (80,990) $(143,069) Partnership loss per limited partnership unit $ (3.22) $ (5.70) See notes to financial statements. SECURED INVESTMENT RESOURCES FUND, L.P. STATEMENTS OF PARTNERSHIP CAPITAL Three months Ended March 31, 1995 (Unaudited) and the Years Ended December 31, 1994 and 1993 General Limited Partners Partners Total Balances at January 31, 1993 $ (38,837) $ 1,664,886 $ 1,626,049 Partnership loss (5,846) (578,751) (584,597) Balances at December 31, 1993 (44,683) 1,086,135 1,041,452 Partnership loss (5,009) (495,891) (500,900) Balances at December 31, 1994 (49,692) 590,244 540,552 Partnership loss (810) (80,180) (80,990) Balances at March 31, 1995 $ (50,502) $ 510,064 $ 459,562 See notes to financial statements. SECURED INVESTMENT RESOURCES FUND, L.P. STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended March 31, 1995 1994 OPERATING ACTIVITIES Partnership loss $ (80,990) $ (143,069) Adjustments to reconcile partnership loss to net cash provided by (used in) operating activities: Depreciation and amortization 151,346 149,435 Provision for losses on rents and other receivables 3,352 30,650 Changes in assets and liabilities: Restricted Deposits (183,090) --- Rents and other receivables 208,669 (55,875) Prepaid expenses (29,213) 21,394 Debt issuance costs (43,869) (2,700) Commercial commission, deposits and other 3,121 2,761 Account payable and accrued expenses (120,076) 36,726 Accrued interest (84,706) 26,465 Unearned revenue (6,380) (277) Tenant security deposits 2,310 2,975 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (179,526) 68,485 INVESTING ACTIVITIES Purchase of and improvements to investment property (30,433) (9,944) NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (30,433) (9,944) SECURED INVESTMENT RESOURCES FUND, L.P. STATEMENTS OF CASH FLOWS (Unaudited)--CONT'D Three Months Ended March 31, 1995 1994 FINANCING ACTIVITIES Mortgage Proceeds $ 3,728,000 $ --- Payoff Matured Mortgage (3,500,000) --- Principal payments on long-term debt (19,670) (22,729) NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 208,330 (22,729) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (1,629) 35,812 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 182,262 97,437 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 180,633 $ 133,249 See notes to financial statements. SECURED INVESTMENT RESOURCES FUND, L.P. NOTES TO FINANCIAL STATEMENTS (Unaudited) March 31, 1995 NOTE A--BASIS OF PRESENTATION The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 1995 are not necessarily indicative of the results that may be expected for the year ended December 31, 1995. For further information, refer to the financial statements and footnotes thereto included in the Partnership's annual report on Form 10-K for the year ended December 31, 1994. NOTE B--MORTGAGE DEBT Mortgage debt consists of the following: March 31, December 31, 1995 1994 First Mortgages: The Colony Apartments $ 3,725,233 $ 3,500,000 Foothills Village S.C. 2,623,627 2,621,714 Cascade Apartments 1,941,822 1,950,441 Hidden Valley Exchange S.C. 814,035 814,035 The Market S.C./Hidden Valley Exchange S.C. 1,694,632 1,702,916 Second Mortgages: Foothills Village S.C. 984,673 986,586 __________ __________ $ 11,784,022 $ 11,575,692 Cash paid for interest totaled $363,730 and $253,393 for the three months ending March 31, 1995 and 1994, respectively. The mortgage for Cascade Apartments matured March 1, 1995. The present mortgage holder has verbally agreed to temporarily extend the mortgage until March 1, 1996 or until new replacement financing is put in place, whichever comes first. NOTES TO FINANCIAL STATEMENTS--CONT'D. On January 17, 1995 the $3,500,000 Colony mortgage was paid off through the issuance of a new $3,728,000 mortgage. This new mortgage due in February 2020 has a fixed interest rate of 10.09%. The new mortgage also funded restricted deposits which will be used for Colony capital repairs and replacements. NOTE C--RELATED PARTY TRANSACTIONS Affiliates of the General Partners are entitled to receive payments from the Partnership for management and other services. Specs, Inc. (a corporation in which the General Partner has a minority interest) receives property management fees for providing property management services and direct cost reimbursements based upon time allocated to performing certain Partnership functions. Amounts paid by the Partnership to affiliates of the General Partners are as follows: Three Months Ended March 31, 1995 1994 Property management fees $ 31,295 $ 21,208 Amounts due to (from) related parties consist of the following: March 31, December 31, 1995 1994 Secured Investment Resources Fund, L.P. III $ 85,100 $ 85,100 The Hoyt Group (23,000) (23,000) Due To (From) Related Parties $ 62,100 $ 85,100 In May 1995, the Partnership will begin repaying the monies owed to Secured Investment Resources Fund, L.P. III at the rate of $3,000 per month, which includes 9% interest. NOTE D--CASH DISTRIBUTIONS No distributions have been made since January 1990. Future distributions will be made only from excess cash flow not needed for working capital reserves. (The remainder of this page intentionally left blank.) Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. Results of Operations Revenues for the first quarter of 1995 increased by $70,000 (13.5%) compared with the same period last year. Apartment rentals comprised $24,000 of this increase and commercial properties accounted for the remaining $46,000 increase. The stronger apartment market allowed the Partnership to continue increasing rental rates, and discontinue the offering of rental concessions, while maintaining a high occupancy. Several smaller leases were signed at Foothills Shopping Center and Hidden Valley Shopping Center, which accounted for the higher rental revenues in the commercial sector. Total operating, administrative and non-operating expenses increased $8,000 (0.1%) when comparing the first quarter of 1995 to the first quarter of 1994. Increased rental rates have resulted in increased resident turnover. This increased turnover has caused increased repair, contracted services and payroll expenses. Professional services have declined due to the need for decreased legal services. The Partnership anticipates that operating results for the first quarter will be representative of the results for the remainder of the year. Liquidity and Capital Resources During the first quarter $180,000 of cash was consumed in operating activities, $30,000 was used for investing activities and $208,000 was provided through financing activities. During the first quarter, the matured Colony mortgage of $3,500,000 was paid off with a new mortgage in the amount of $3,728,000. Of the additional funds from this new mortgage $180,000 are to be used to renovate the Colony Apartments. These funds will be invested into capital improvements, which will improve the curb appeal and marketability of Colony, thus allowing it to increase it's rental rates and maintain high occupancy levels. During the first quarter the Partnership received $230,667 of delinquent rent from The Sampler Shoppes, Inc., the anchor tenant at Foothills Shopping Center and was able to pay $138,000 of delinquent real estate taxes at Foothills Shopping Center. The Partnership is currently past due on mortgage notes secured by Foothills, Hidden Valley and The Market Shopping Centers. The improved cash flow, the result of higher occupancy, will be used to make these delinquent mortgage payments. In addition, beginning on May 1, 1995 the Partnership will begin repaying it's advance from Secured Investment Resources Fund, L.P. III at the rate of $3,000 per month,including interest. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.-- Cont'd. The mortgage for Cascade Apartments came due in March, 1995. The existing mortgage holder has verbally agreed to extend this note, under the same terms and conditions, until March, 1996 or until new financing can be put into place. This replacement financing has not yet been put into place. The General Partners also anticipate that 1995 cash flow from operations will continue to improve because of strong occupancy, rental rate increases, and stabilized expenses. The General Partners have the option of offering one or more properties for sale. Any net proceeds in excess of the outstanding mortgage balance could be used to generate addtional working capital. The General Partners have determined it prudent to discontinue cash distributions until such time that adequate working capital and capital improvement reserves are in place. PRT II. OTHER INFORMATION Item 1. LEGAL PROCEEDINGS None. Item 2. CHANGES IN SECURITIES Inapplicable. Item 3. DEFAULTS UPON SENIOR SECURITIES None. Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS Inapplicable. Item 5. OTHER INFORMATION Inapplicable. Item 6. EXHIBIT AND REPORTS ON FORM 8-K (a) Exhibits None. (b) Reports on Form 8-K There were no reports on Form 8-K filed during the quarter ended March 31, 1995. 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. SECURED INVESTMENT RESOURCES FUND, L.P. A Kansas Limited Partnership (Registrant) By: James R. Hoyt as Individual General Partner Date: April 20, 1995 By: Secured Investment Resources, Inc. as Corporate General Partner By: James R. Hoyt, President Date: April 20, 1995 EX-27 2
5 Unaudited. 1 3-MOS DEC-31-1995 JAN-01-1995 MAR-31-1995 180,633 0 159,172 141,476 0 459,943 17,886,251 5,637,590 12,891,694 648,110 11,784,022 0 0 0 0 12,891,694 0 585,519 0 236,139 151,346 0 279,024 0 0 0 0 0 0 (80,990) (3.22) 0
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