-----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, I855fBVNMRpJh4LZWN+DF7dic0l8hhfNxlS8ZX6BafePYuRQEZWUIMYy1pbTNV3o ltgx9ilhMrkKp7Qu36qdWQ== 0000745481-97-000004.txt : 19971020 0000745481-97-000004.hdr.sgml : 19971020 ACCESSION NUMBER: 0000745481-97-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19971017 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: SEC FILE NUMBER: 000-14542 FILM NUMBER: 97697650 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, 1997 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, 1997 and December 31, 1996 3-4 Consolidated Statements of Operations -- Three Months Ended March 31, 1997 and 1996 5 Consolidated Statements of Partnership Capital -- Three Months Ended March 31, 1997 and the Years Ended December 31, 1996, and 1995 6 Consolidated Statements of Cash Flows -- Three Months Ended March 31, 1997 and 1996 7-8 Notes to Consolidated Financial Statements 9-10 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 11 PART II. OTHER INFORMATION Item 1. Legal Proceedings 12 Item 2. Changes in Securities 12 Item 3. Defaults Upon Senior Securities 12 Item 4. Submission of Matters to a Vote of Security Holders 12 Item 5. Other Information 12 Item 6. Exhibits and Reports on Form 8-K 12 SIGNATURES 13 PART I. FINANCIAL INFORMATION Item 1. FINANCIAL STATEMENTS SECURED INVESTMENT RESOURCES FUND, L.P. CONSOLIDATED BALANCE SHEETS March 31, 1997 December 31, (Unaudited) 1996 ASSETS INVESTMENT PROPERTIES Land and buildings $ 16,526,120 $ 16,523,135 Furniture, fixtures and equipment 1,722,198 1,714,939 18,248,318 18,238,074 Less accumulated depreciation and allowance for losses 6,813,876 6,667,531 11,434,442 11,570,543 OTHER ASSETS Cash 225,756 206,974 Rents and other receivables, less allowance of $54,900 in 1997 and $42,350 in 1996 9,222 10,236 Prepaid expenses 51,847 368 Debt issuance costs, net of accumulated amortization of $65,035 in 1997 and $63,135 in 1996 149,565 141,488 Commercial commissions, deposits and other 23,823 17,015 Restricted deposits 12,143 15,105 472,356 391,186 TOTAL ASSETS $ 11,906,798 $ 11,961,729 SECURED INVESTMENT RESOURCES FUND, L.P. CONSOLIDATED BALANCE SHEETS--CONT'D. March 31, 1997 December 31, (Unaudited) 1996 LIABILITIES AND PARTNERSHIP CAPITAL Mortgage debt (Note B) $ 11,918,925 $ 11,952,227 Accrued interest 146,600 128,096 Accounts payable and accrued expenses 185,593 106,926 Due to related parties (Note C) 58,658 57,416 Unearned revenue 101,973 110,733 Tenant security deposits 75,183 75,485 TOTAL LIABILITIES 12,486,932 12,430,883 PARTNERSHIP CAPITAL General Partners Capital contribution 1,000 1,000 Partnership deficit (61,898) (60,789) (60,898) (59,789) Limited Partner Capital contributions 5,608,838 5,608,838 Partnership deficit (6,128,074) (6,018,203) (519,236) (409,365) TOTAL PARTNERSHIP CAPITAL (580,134) (469,154) $ 11,906,798 $ 11,961,729 See notes to consolidated financial statements. SECURED INVESTMENT RESOURCES FUND, L.P. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended March 31, 1997 1996 REVENUES Rents $ 537,801 $ 541,623 Interest 837 1,242 Maintenance escalations 17,697 19,435 556,335 562,300 OPERATING AND ADMINISTRATIVE EXPENSES Property operating expenses 181,653 187,859 General and administrative expenses 10,705 11,899 Professional services 22,977 11,397 Management fees 27,149 24,303 242,484 235,458 NET OPERATING INCOME 313,851 326,842 NON-OPERATING EXPENSES Interest 276,587 321,052 Depreciation and amortization 148,244 150,702 424,831 471,754 PARTNERSHIP LOSS $ (110,980) $ (144,912) Allocation of loss: General Partner (1,109) (1,449) Limited Partner (109,871) (143,463) $ (110,980) $ (144,912) Partnership loss per limited partnership unit $ (4.42) $ (5.77) See notes to consolidated financial statements. SECURED INVESTMENT RESOURCES FUND, L.P. CONSOLIDATED STATEMENTS OF PARTNERSHIP CAPITAL (Unaudited) Three Months Ended March 31, 1997 (Unaudited) and the Years Ended December 31, 1996 and 1995 General Limited Partners Partners Total Balances at January 1, 1995 (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 (5,244) (519,183) (524,427) Balances at December 31, 1996 $ (59,789) $ (409,365) $ (469,154) Partnership loss (1,109) (109,871) (110,980) Balances at March 31, 1997 $ (60,898) $ (519,236) $ (580,134) See notes to consolidated financial statements. SECURED INVESTMENT RESOURCES FUND, L.P. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended March 31, 1997 1996 OPERATING ACTIVITIES Partnership income $ (110,980) $ (144,911) Adjustments to reconcile partnership loss to net cash provided by (used in) operating activities: Depreciation and amortization 151,728 150,702 Provision for losses on rents and other receivables 12,550 (12,100) Changes in assets and liabilities: Restricted deposits 2,962 (14,328) Rents and other receivables (11,535) 9,715 Prepaid expenses (51,479) (53,050) Debt issuance costs (8,735) (200) Commercial commissions, deposits and other (10,291) 3,345 Accounts payable and accrued expenses 78,666 62,519 Accrued interest 18,505 20,880 Unearned revenue (8,760) (3,007) Tenant security deposits (303) (7,096) NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (71,063) (41,125) INVESTING ACTIVITIES Purchases of and improvements to investment properties (10,244) (49,744) NET CASH USED IN INVESTING ACTIVITIES (10,244) (49,744) SECURED INVESTMENT RESOURCES FUND, L.P. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)--CONT'D. Three Months Ended March 31, 1997 1996 FINANCING ACTIVITIES Debt Issuance Costs (9,977) (200) Due To (From) Related Parties 1,242 2,026 Principal payments on long term debt (33,302) 4,993 NET CASH PROVIDED BY FINANCING ACTIVITIES (42,037) 6,819 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 18,782 (1,600) CASH AND CASH EQUIVALENTS BEGINNING OF PERIOD 206,974 161,414 CASH AND CASH EQUIVALENTS END OF PERIOD $ 225,756 $ 159,814 See notes to consolidated financial statements. SECURED INVESTMENT RESOURCES FUND, L.P. NOTES TO FINANCIAL STATEMENTS (Unaudited) March 31, 1997 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, 1997 are not necessarily indicative of the results that may be expected for the year ended December 31, 1997. 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, 1996. NOTE B--MORTGAGE DEBT Mortgage debt consists of the following: March 31, December 31, 1997 1996 Collateralized by Investment Property First Mortgages: The Colony Apartments $ 3,651,377 3,661,657 Foothills Village S.C. 2,617,773 2,621,779 Cascade Apartments 1,864,680 1,875,173 The Market S.C./Hidden Valley Exchange S.C. 1,595,461 1,601,745 Hidden Valley Exchange S.C. 811,389 813,628 Second Mortgages: Foothills Village, S.C. 968,245 968,245 The Market S.C./Hidden Valley Exchange S.C. 410,000 410,000 $ 11,918,925 $ 11,952,227 Interest expense totaled $276,587 and $321,052 for the three months ending March 31, 1997 and 1996, respectively. The mortgage for Cascade Apartments matured March 1, 1995. The present mortgage holder has agreed to temporarily extend the SECURED INVESTMENT RESOURCES FUND, L.P. NOTES TO FINANCIAL STATEMENTS (Unaudited)--CONT'D. NOTE B--MORTGAGE DEBT--CONT'D. mortgage on a month-to-month basis and the Partnership continues to make principal and interest payments of $18,900 to said mortgage holder. On May 28, 1996, the Partnership signed a note, collateralized by a second mortgage on The Market and Hidden Valley Exchange, in the amount of $410,000 at 7% interest. The Partnership will make consolidated monthly principal and interest payments on this and the first mortgage in the amount of $11,426 per month until June 25, 1998 when the entire amount becomes due and payable. The proceeds of this note were used to pay delinquent real estate taxes for The Market and Hidden Valley Exchange as well as accrued interest and related loan costs. NOTE C--RELATED PARTY TRANSACTIONS SPECS, Inc., a Kansas Corporation in which the individual General Partner has a minority interest, receives 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. Property management fees paid by the Partnership to SPECS, Inc. are as follows: Three Months Ended March 31, 1997 1996 Property Management Fees $ 27,149 $ 24,303 Amounts due (to) from related parties consist of the following: March 31, December 31, 1997 1996 Secured Investment Resources Fund, L.P. III $ (80,120) $ (78,345) Secured Investment Resources Fund, L.P. II (5,000) (5,000) SIR, Inc. 26,462 25,929 $ (58,658) $ (57,416) NOTE D--CASH DISTRIBUTIONS No cash distributions have been made since January 1990. Future distributions will only be made from excess cash flow not needed for working capital reserves. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. Results of Operations Revenues for the first three months of 1997 decreased by $16,000 (1.1%) compared with the same period of last year. Apartment rentals decreased $5,000 and commercial properties decreased $1,000. Both apartment rental rates and commercial rental rates and expenses have stabilized for the first quarter of 1997. Total operating and administrative expenses decreased $7,400 (3.7%) when comparing the first three months of 1997 to the first three months of 1996. The Partnership anticipates that operating results for the year ending December 31, 1997 will show an increase in revenues due to new leases signed on the commercial properties. Liquidity and Capital Reserves During the first three months of 1997 $71,100 of cash was provided by operating activities, $10,300 was used for investing activities and $42,000 was used in financing activities. In May 1996, a $410,000 note, collateralized by Hidden Valley and The Market, was signed. This loan matures June 25, 1998 and the interest rate is 7%. The mortgage for Cascade Apartments matured in March, 1995. The existing mortgage holder has agreed to extend this note on a month-to-month basis and the Partnership makes monthly principal and interest payments of $18,900. The General Partners also anticipate the at 1997 cash flow from operations will continue to improve because of strong occupancy, stabilized rental rates, stabilized expenses, and new leases stabilized 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, 1997. 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, 1997 By: Secured Investment Resources, Inc. as Corporate General Partner By: James R. Hoyt, President Date: May 15, 1997 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, 1997 By: Secured Investment Resources, Inc. as Corporate General Partner By: /s/ James R. Hoyt James R. Hoyt, President Date: May 15, 1997 EX-27 2
5 Unaudited. 1 3-MOS DEC-31-1997 JAN-01-1997 MAR-31-1997 225,756 0 64,122 (54,900) 0 472,356 18,248,318 6,813,876 11,906,798 568,007 11,918,925 0 0 0 0 11,906,798 0 556,335 0 242,484 148,244 0 276,587 0 0 0 0 0 0 (110,980) (4.42) 0
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