-----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, Sx2QReN5mWGRZ5gDo++3XKmmaC5KvNV/qpNLbcdk/S2LOHJzAEXiwWOFlqFfQ58z 9V6y53dvE2xWN76mFIMW0Q== 0000745481-96-000005.txt : 19960518 0000745481-96-000005.hdr.sgml : 19960518 ACCESSION NUMBER: 0000745481-96-000005 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960516 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: 96568640 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, 1996 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): Consolidated Balance Sheets -- March 31, 1996 and December 31, 1995 3-4 Consolidated Statements of Operations -- Three Months Ended March 31, 1996 and 1995 5 Consolidated Statements of Partnership Capital -- Three Months Ended March 31, 1996 and the Years Ended December 31, 1995, and 1994 6 Consolidated Statements of Cash Flows -- Three Months Ended March 31, 1996 and 1995 7-8 Notes to Consolidated 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. CONSOLIDATED BALANCE SHEETS March 31, 1996 December 31, (Unaudited) 1995 ASSETS INVESTMENT PROPERTIES Land and buildings $ 16,498,400 $ 16,486,456 Furniture, fixtures and equipment 1,589,876 1,552,076 18,088,276 18,038,532 Less accumulated depreciation and allowance for losses 6,222,339 6,078,281 11,865,937 11,960,251 OTHER ASSETS Cash 159,814 161,414 Rents and other receivables, less allowance of $45,100 in 1996 and $57,200 in 1995 20,736 18,351 Prepaid expenses 61,307 8,257 Debt issuance costs, net of accumulated amortization of $48,194 in 1996 and $41,550 in 1995 142,788 149,231 Commercial commissions, deposits and other 24,245 27,591 Restricted deposits 58,971 73,299 467,861 438,143 TOTAL ASSETS $ 12,333,798 $ 12,398,394 SECURED INVESTMENT RESOURCES FUND, L.P. CONSOLIDATED BALANCE SHEETS--CONT'D. March 31, 1996 December 31, (Unaudited) 1995 LIABILITIES AND PARTNERSHIP CAPITAL Mortgage debt (Note B) $ 11,831,424 $ 11,826,431 Accrued interest 115,025 94,146 Accounts payable and accrued expenses 303,276 240,756 Due to related parties (Note C) 52,948 50,922 Unearned revenue 48,476 51,483 Tenant security deposits 72,288 79,383 TOTAL LIABILITIES 12,423,437 12,343,121 PARTNERSHIP CAPITAL General Partners Capital contribution 1,000 1,000 Partnership deficit (56,994) (55,545) (55,994) (54,545) Limited Partners Capital contributions 5,608,838 5,608,838 Partnership deficit (5,642,483) (5,499,020) (33,645) 109,818 TOTAL PARTNERSHIP CAPITAL (89,639) 55,273 $ 12,333,798 $ 12,398,394 See notes to consolidated financial statements. SECURED INVESTMENT RESOURCES FUND, L.P. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended March 31, 1996 1995 REVENUES Rents $ 541,623 $ 553,034 Interest 1,242 523 Maintenance escalations 19,435 31,962 562,300 585,519 OPERATING AND ADMINISTRATIVE EXPENSES Property operating expenses 187,859 178,360 General and administrative expenses 11,899 13,544 Professional services 11,397 12,940 Mgmt Fees & Reimbursed direct expenses 24,303 31,295 235,458 236,139 NET OPERATING INCOME 326,842 349,380 NON-OPERATING EXPENSES Interest 321,052 279,024 Depreciation and amortization 150,702 151,346 471,754 430,370 PARTNERSHIP LOSS $ (144,912) $ ( 80,990) Allocation of loss: General Partners (1,449) ( 810) Limited Partners (143,463) ( 80,180) $ (144,912) $( 80,990) Partnership loss per limited partnership unit $ ( 5.77) $ ( 3.22) See notes to consolidated financial statements. SECURED INVESTMENT RESOURCES FUND, L.P. CONSOLIDATED STATEMENTS OF PARTNERSHIP CAPITAL Three months Ended March 31, 1996 (Unaudited) and the Years Ended December 31, 1995 and 1994 General Limited Partners Partners Total Balances at January 1, 1994 $ (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 (4,853) (480,426) (485,279) Balances at December 31, 1995 (54,545) 109,818 55,273 Partnership loss (1,449) (143,463) (144,912) Balances at March 31, 1996 $ (55,994) $ (33,645) $ (89,639) See notes to consolidated financial statements. SECURED INVESTMENT RESOURCES FUND, L.P. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended March 31, 1996 1995 OPERATING ACTIVITIES Partnership loss $ (144,911) $ ( 80,990) Adjustments to reconcile partnership loss to net cash provided by (used in) operating activities: Depreciation and amortization 150,702 151,346 Provision for losses on rents and other receivables (12,100) 3,352 Changes in assets and liabilities: Restricted deposits 14,328 (183,090) Rents and other receivables 9,715 208,669 Prepaid expenses (53,050) (29,213) Debt issuance costs ( 200) (43,869) Commercial commission, deposits and other 3,345 3,121 Account payable and accrued expenses 62,519 (120,076) Accrued interest 20,880 (84,706 Unearned revenue ( 3,007) (6,380) Tenant security deposits (7,096) 2,310 NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 41,125 (179,526) INVESTING ACTIVITIES Purchase of and improvements to investment property ( 49,744) ( 30,433) NET CASH USED IN INVESTING ACTIVITIES ( 49,744) ( 30,433) SECURED INVESTMENT RESOURCES FUND, L.P. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)--CONT'D. Three Months Ended March 31, 1996 1995 FINANCING ACTIVITIES Mortgage Proceeds $ -0- $3,728,000 Payoff Matured Mortgage -0- (3,500,000) Due To Related Parties 2,026 -0- Principal payments on long-term debt 4,993 (19,670) NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 7,019 208,330 DECREASE IN CASH AND CASH EQUIVALENTS ( 1,600) (1,629) CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 161,414 182,262 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 159,814 $ 180,633 See notes to consolidated financial statements. SECURED INVESTMENT RESOURCES FUND, L.P. NOTES TO FINANCIAL STATEMENTS (Unaudited) March 31, 1996 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, 1996 are not necessarily indicative of the results that may be expected for the year ended December 31, 1996. 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, 1995. NOTE B--MORTGAGE DEBT Mortgage debt consists of the following: March 31, December 31, 1996 1995 First Mortgages: The Colony Apartments $ 3,690,158 $ 3,699,260 Foothills Village S.C. 2,621,779 2,621,779 Cascade Apartments 1,905,146 1,914,656 The Market S.C./Hidden Valley Exchange S.C. 1,825,697 1,825,697 Hidden Valley Exchange S.C. 811,973 811,973 Second Mortgages: Foothills Village S.C. 976,671 953,066 $ 11,831,424 $ 11,826,431 Interest expense totaled $321,052 and $279,024 for the three months ending March 31, 1996 and 1995, respectively. The mortgage for Cascade Apartments matured March 1, 1995. The present mortgage holder has verbally agreed to temporarily extend the mortgage on a month-to-month basis. NOTES TO FINANCIAL STATEMENTS--CONT'D. NOTE C--RELATED PARTY TRANSACTIONS Through December 31, 1994, property management services were provided by The Hoyt Group, a Kansas Corporation in which the individual General Partner had a majority interest. As of January 1, 1995, SPECS, Inc., a Kansas Corporation in which the individual General Partner has a minority interest, received property management fees for providing property management services. SPECS, Inc. also performs various professional services for the Partnership, primarily tax accounting, audit preparation, SEC 10Q and 10K preparation, and investor services. Amounts paid by the Partnership to The Hoyt Group and SPECS, Inc. are as follows: Three Months Ended March 31, 1996 1995 Property management fees $ 24,303 $ 31,295 Professional services 2,500 -0- $ 26,803 $ 31,295 Amounts due to (from) related parties consist of the following: March 31, December 31, 1996 1995 Secured Investment Resources Fund, L.P. II $ (5,000) $ -0- Secured Investment Resources Fund, L.P. III (72,202) (74,643) Secured Investment Resources Fund, L.P. 24,254 23,721 Due From Related Parties $ (52,948) $ (50,922) 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 three months of 1996 decreased by $23,000 (4.0%) compared with the same period last year. Apartment rentals increased $10,000 and commercial properties accounted for decreases of $33,000. 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 are in negotiations at Foothills Shopping Center and Hidden Valley Shopping Center. A major lease has been signed at the Market Square which will go into effect in the second quarter and will increase revenues for future quarters. Total operating and administrative expenses increased $7,900 (4.1%) when comparing the first three months of 1996 to the first three months of 1995. Increased rental rates have resulted in increased resident turnover. This increased turnover has caused increased contracted services and payroll expenses. Professional services have declined $1,500 (11.6%). The Partnership anticipates that operating results for the first three months will show an increase in revenues due to new leases signed on the commercial properties. Liquidity and Capital Resources During the first three months of 1996 $41,000 of cash was generated in operating activities, $50,000 was used for investing activities and $7,000 was provided through financing activities. The mortgage for Cascade Apartments matured in March, 1995. The existing mortgage holder has verbally agreed to extend this note on a month-to-month basis. The General Partners also anticipate that 1996 cash flow from operations will continue to improve because of strong occupancy, rental rate increases, stabilized expenses, and new leases signed on commercial properties. 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 additional 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. PART 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, 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. SECURED INVESTMENT RESOURCES FUND, L.P. A Kansas Limited Partnership (Registrant) By: James R. Hoyt as Individual General Partner Date: May 15, 1996 By: Secured Investment Resources, Inc. as Corporate General Partner By: James R. Hoyt, President Date: May 15, 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. SECURED INVESTMENT RESOURCES FUND, L.P. A Kansas Limited Partnership (Registrant) By: /s/ James R. Hoyt James R. Hoyt as Individual General Partner Date: May 15, 1996 By: Secured Investment Resources, Inc. as Corporate General Partner By: /s/ James R. Hoyt James R. Hoyt, President Date: May 15, 1996 EX-27 2
5 Unaudited. 1 3-MOS DEC-31-1996 JAN-01-1996 MAR-31-1996 159,814 0 68,836 45,100 0 467,861 18,088,276 6,222,339 12,333,798 592,013 11,831,424 0 0 0 0 12,333,798 0 562,300 0 235,458 150,702 0 321,052 0 0 0 0 0 0 (144,912) (5.77) 0
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