-----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, GmOh1fXYIZS2pOn8MVzHjDpSC2tWDqGUaUWTzJa1Lvvs574RQRHTQcFEc+AwM7rG Q1ie61olS4UuTtxF7F8VDQ== 0000745481-95-000004.txt : 19951120 0000745481-95-000004.hdr.sgml : 19951120 ACCESSION NUMBER: 0000745481-95-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951116 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: 95593912 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 September 30, 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 -- September 30, 1995 and December 31, 1994 3-4 Statements of Operations -- Nine Months Ended September 30, 1995 and 1994 and Three Months Ended September 30, 1995 and 1994 5 Statements of Partnership Capital -- Nine Months Ended September 30, 1995 and the Years Ended December 31, 1994, and 1993 6 Statements of Cash Flows -- Nine Months Ended September 30, 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 September 30, 1995 December 31, (Unaudited) 1994 ASSETS INVESTMENT PROPERTIES Land and buildings $ 16,478,248 $ 16,377,255 Furniture, fixtures and equipment 1,528,972 1,478,563 __________ __________ 18,007,220 17,855,818 Less accumulated depreciation and allowance for losses 5,926,061 5,493,355 __________ __________ 12,081,159 12,362,463 __________ __________ RESTRICTED DEPOSITS Capital Improvement Cash Reserves $ 68,855 --- __________ __________ OTHER ASSETS Cash 157,248 182,262 Rents and other receivables, less allowance of $47,300 in 1995 and $141,476 in 1994 22,026 244,318 Prepaid expenses 27,830 20,932 Debt issuance costs, net of accumulated amortization of $37,237 in 1995 and $13,543 in 1994 153,545 133,371 Commercial commissions, deposits and other 30,463 29,859 __________ __________ 391,112 610,742 __________ __________ $ 12,541,126 $ 12,973,205 __________ __________ SECURED INVESTMENT RESOURCES FUND, L.P. BALANCE SHEETS--CONT'D September 30, 1995 December 31, (Unaudited) 1994 LIABILITIES AND PARTNERSHIP CAPITAL Mortgage debt--Note B $ 11,700,395 $ 11,575,692 Accrued interest 140,971 282,889 Accounts payable and accrued expenses 276,236 371,896 Due to related parties--Note C 52,930 62,100 Unearned revenue 50,416 60,859 Tenant security deposits 81,262 79,217 __________ __________ TOTAL LIABILITIES 12,302,210 12,432,653 __________ __________ PARTNERSHIP CAPITAL General Partners Capital contribution 1,000 1,000 Partnership deficit (53,708) (50,692) __________ __________ (52,708) (49,692) __________ __________ Limited Partners Capital contributions 5,608,838 5,608,838 Partnership deficit (5,317,214) (5,018,594) __________ __________ 291,624 590,244 __________ __________ TOTAL PARTNERSHIP CAPITAL 238,916 540,552 __________ __________ $ 12,541,126 $ 12,973,205 __________ __________ See notes to financial statements. SECURED INVESTMENT RESOURCES FUND, L.P. STATEMENTS OF OPERATIONS (Unaudited) Nine Months Ended Three Months Ended September 30, September 30, 1995 1994 1995 1994 REVENUES Rents $1,675,133 $ 1,535,732 $ 577,810 $ 520,698 Interest 3,962 756 762 745 Maintenance escalations 62,454 71,552 22,774 15,338 __________ _________ _________ _________ 1,741,549 1,608,040 601,346 536,781 __________ _________ _________ _________ OPERATING AND ADMINISTRATIVE EXPENSES Property operating expenses 554,455 513,973 181,461 176,122 General and administrative expenses 42,283 33,009 13,691 10,643 Professional services 62,483 72,411 34,612 23,499 Mgmt Fees & Reimbursed direct expenses 82,206 70,516 25,996 22,742 __________ _________ _________ _________ 741,427 689,909 255,760 233,006 __________ _________ _________ _________ NET OPERATING INCOME 1,000,122 918,131 345,586 303,775 NON-OPERATING EXPENSES Interest 845,358 857,427 278,976 294,701 Depreciation and amortization 456,400 451,099 152,527 151,094 __________ _________ _________ _________ 1,301,758 1,308,526 431,503 445,795 __________ _________ _________ _________ PARTNERSHIP LOSS $ (301,636) $ (390,395) $ (85,917) $ (142,020) __________ _________ _________ _________ Allocation of loss: General Partners (3,016) (3,904) (859) (1,420) Limited Partners (298,620) (386,491) (85,058) (140,600) __________ _________ ___________ _________ $ (301,636) $(390,395) $ (85,917) $ (142,020) __________ _________ _________ _________ Partnership loss per limited partnership unit $ (12.01) $ (15.54) $ (3.42) $ (5.65) __________ _________ _________ _________ See notes to financial statements. SECURED INVESTMENT RESOURCES FUND, L.P. STATEMENTS OF PARTNERSHIP CAPITAL Nine months Ended September 30, 1995 (Unaudited) and the Years Ended December 31, 1994 and 1993 General Limited Partners Partners Total Balances at January 1, 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 (3,016) (298,620) (301,636) _________ _________ _________ Balances at September 30, 1995 $ (52,708) $ 291,624 $ 238,916 _________ _________ _________ See notes to financial statements. SECURED INVESTMENT RESOURCES FUND, L.P. STATEMENTS OF CASH FLOWS (Unaudited) Nine Months Ended September 30, 1995 1994 OPERATING ACTIVITIES Partnership loss $ (301,635) $ (390,395) Adjustments to reconcile partnership loss to net cash provided by (used in) operating activities: Depreciation and amortization 467,567 451,099 Provision for losses on rents and other receivables (59,802) 17,976 Changes in assets and liabilities: Restricted Deposits (68,855) --- Rents and other receivables 282,094 12,526 Prepaid expenses (6,897) 65,496 Debt issuance costs (43,869) (34,700) Commercial commission, deposits and other (11,772) 943 Account payable and accrued expenses (95,659) 54,836 Accrued interest (141,918) 72,135 Unearned revenue (10,443) 8,822 Tenant security deposits 2,045 2,558 ________ _________ NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 10,856 261,296 ________ _________ INVESTING ACTIVITIES Purchase of and improvements to investment property (151,402) (121,249) ________ _________ NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (151,402) (121,249) ________ _________ SECURED INVESTMENT RESOURCES FUND, L.P. STATEMENTS OF CASH FLOWS (Unaudited)--CONT'D Nine Months Ended September 30, 1995 1994 FINANCING ACTIVITIES Due To/From $ (9,170) $ (19,687) Principal payments on long-term debt 124,703 (52,251) ________ _________ NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 115,533 (71,938) ________ _________ INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (25,013) 68,109 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 182,261 97,437 ________ _________ CASH AND CASH EQUIVALENTS, END OF PERIOD $ 157,248 $ 165,546 ________ _________ See notes to financial statements. SECURED INVESTMENT RESOURCES FUND, L.P. NOTES TO FINANCIAL STATEMENTS (Unaudited) September 30, 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 nine month period ended September 30, 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: September 30, December 31, 1995 1994 First Mortgages: The Colony Apartments $ 3,708,136 $ 3,500,000 Foothills Village S.C. 2,621,779 2,621,714 Cascade Apartments 1,923,935 1,950,441 Hidden Valley Exchange S.C. 810,795 814,035 The Market S.C./Hidden Valley Exchange S.C. 1,672,185 1,702,916 Second Mortgages: Foothills Village S.C. 959,590 986,586 __________ __________ $ 11,696,420 $ 11,575,692 __________ __________ Cash paid for interest totaled $987,276 and $785,292 for the nine months ending September 30, 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 matures 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: Nine Months Ended September 30, 1995 1994 Property management fees $ 82,206 $ 70,516 ________ ________ Amounts due to (from) related parties consist of the following: September 30, December 31, 1995 1994 Secured Investment Resources Fund, L.P. III $ 75,150 $ 85,100 Secured Investment Resources, Inc. (22,220) (23,000) __________ __________ Due To (From) Related Parties $ 52,930 $ 62,100 __________ __________ As of May 1, 1995, the Partnership began repayment of its debt to Secured Investment Resources Fund, L.P. III of $3,000 per month, which includes interest of 9%. 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 nine months of 1995 increased by $133,500 (8.3%) compared with the same period last year. Apartment rentals comprised $89,000 of this increase and commercial properties accounted for the remaining $44,500 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 and administrative expenses increased $50,000 (9.1%) when comparing the first nine months of 1995 to the first nine months 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 $10,000 (13.8%). The Partnership anticipates that operating results for thefirst nine months will be representative of the results for the remainder of the year. Liquidity and Capital Resources During the first nine months of 1995 $11,000 of cash was generated in operating activities, $151,000 was used for investing activities and $115,500 was provided through financing activities. 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 being 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 management to increase rental rates and maintain high occupancy levels. During the first nine months 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 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, as of May 1, 1995 the Partnership began repaying the 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. 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 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 September 30, 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: November 15, 1995 By: Secured Investment Resources, Inc. as Corporate General Partner By: James R. Hoyt, President Date: November 15, 1995 EX-27 2
5 Unaudited. 1 9-MOS DEC-31-1995 JAN-01-1995 SEP-30-1995 157,248 0 69,326 47,300 0 391,112 18,007,220 5,926,061 12,541,126 601,815 11,700,395 0 0 0 0 12,541,126 0 1,741,549 0 741,427 456,400 0 845,358 0 0 0 0 0 0 (301,636) (12.01) 0
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