-----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, GbcRih5qUA5+mgicP2FBjufaHywbqJCNze2S5cFvfhUfAm1sD5QQjYvym7QaK2Ng +rXuLKMuaPpMGf6OaT8Fbg== 0000890566-00-000783.txt : 20000516 0000890566-00-000783.hdr.sgml : 20000516 ACCESSION NUMBER: 0000890566-00-000783 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000331 FILED AS OF DATE: 20000515 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SIERRA PACIFIC PENSION INVESTORS 84 CENTRAL INDEX KEY: 0000747729 STANDARD INDUSTRIAL CLASSIFICATION: OPERATORS OF NONRESIDENTIAL BUILDINGS [6512] IRS NUMBER: 330043952 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-14269 FILM NUMBER: 633135 BUSINESS ADDRESS: STREET 1: 5850 SAN FELIPE STREET 2: STE 500 CITY: HOUSTON STATE: TX ZIP: 77057 BUSINESS PHONE: 7137066271 MAIL ADDRESS: STREET 1: 5850 SAN FELIPE STREET 2: STE 500 CITY: HOUSTON STATE: TX ZIP: 77057 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarter ended March 31, 2000 ---------------------------------------------------- Commission file number 0-14269 ---------------------------------------------------- SIERRA PACIFIC PENSION INVESTORS `84 (A LIMITED PARTNERSHIP) State of California 33-0043952 - -------------------------------------- ----------------------------------- (State or other jurisdiction of (I.R.S. Employer Identification incorporation or organization) Number) 5850 San Felipe, Suite 450 Houston, Texas 77057 - -------------------------------------- ----------------------------------- (Address of principal executive (Zip Code) offices) Registrant's telephone number, including area code: (713) 706-6271 ----------------------------------------------- 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 [ ]. PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS The following financial statements are submitted in the next pages: PAGE NUMBER ------ Balance Sheets - March 31, 2000 and December 31, 1999 .................... 4 Statements of Operations - For the Three Months Ended March 31, 2000 and 1999 ............................................................ 5 Statements of Changes in Partners' Equity - For the Year Ended December 31, 1999 and for the Three Months Ended March 31, 2000 .......... 6 Statements of Cash Flows - for the Three Months Ended March 31, 2000 and 1999 ............................................................ 7 Notes to Financial Statements ............................................ 8 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (a) OVERVIEW The following discussion should be read in conjunction with the Sierra Pacific Pension Investors `84's (the Partnership) Financial Statements and Notes thereto appearing elsewhere in this Form 10-Q. The Partnership currently owns one property, Sierra Valencia (the Property). In addition, the Partnership holds a 69.83% interest in Sierra Mira Mesa Partners (SMMP) which is maintained on the equity method of accounting. (b) RESULTS OF OPERATIONS Rental income for the three months ended March 31, 2000 increased by approximately $5,000, or 3%, when compared to the corresponding period in the prior year, primarily due to higher common area maintenance fees billed during the quarter. This increase was partially offset by a decrease in occupancy at the Property from 100% at March 31, 1999 to 87% at March 31, 2000. 2 Interest income for the quarter ended March 31, 2000, decreased by approximately $21,000, or 35%, in comparison to the same period in the prior year. In May 1999, the Partnership received a $943,000 principal payment on its trust deed note receivable. Operating expenses increased by approximately $6,000, or 5%, principally due to an increase in administrative costs and property taxes. This increase was partially offset as a result of lower accounting and auditing costs incurred during the quarter. Depreciation and amortization expenses for the three months ended March 31, 2000 decreased by approximately $32,000, or 47%, when compared to the corresponding period in 1999, primarily due to fully depreciated capitalized tenant improvements. The Partnership's share of unconsolidated joint venture income increased by approximately $69,000 for the three months ended March 31, 2000 in comparison to the same period in the prior year. (c) LIQUIDITY AND CAPITAL The Partnership received a $943,000 principal payment on its trust deed note receivable in May 1999. These funds were principally used to satisfy the liquidity requirements of SMMP. As of March 31, 2000, the Partnership is in an illiquid position. Total cash and billed receivables amount to approximately $33,000 compared to approximately $151,000 of accrued and other liabilities. The Partnership anticipates cash required to meet debt obligations, operating expenses and costs for the construction of new tenant space will be funded from the operations of the Property and distributions from SMMP. Inflation: The Partnership does not expect inflation to be a material factor in its operations in 2000. 3 SIERRA PACIFIC PENSION INVESTORS '84 (A LIMITED PARTNERSHIP) BALANCE SHEETS MARCH 31, 2000 AND DECEMBER 31, 1999 - --------------------------------------------------------------------------------
MARCH 31, 2000 DECEMBER 31, 1999 --------------- --------------- (UNAUDITED) ASSETS Cash and cash equivalents ......................................................... $ 21,788 $ 31,562 Receivables: Note receivable, net of deferred gain of $132,471 .............................. 1,459,139 1,459,139 Unbilled rent .................................................................. 44,652 44,708 Billed rent .................................................................... 11,293 2,762 Interest ....................................................................... 39,790 0 Income-producing property - net of accumulated depreciation and valuation allowance of $2,813,436 and $2,864,363 respectively .................................................................... 1,153,354 1,174,239 Investment in unconsolidated joint venture ........................................ 7,357,261 7,303,940 Other assets - net of accumulated amortization of $156,401 and $172,144, respectively .......................................... 850,937 791,968 --------------- --------------- Total Assets ...................................................................... $ 10,938,214 $ 10,808,318 =============== =============== LIABILITIES AND PARTNERS' EQUITY Accrued and other liabilities ..................................................... $ 151,065 $ 122,891 Notes payable ..................................................................... 1,381,483 1,398,368 --------------- --------------- Total Liabilities ................................................................. 1,532,548 1,521,259 --------------- --------------- Partners' equity (deficit): General Partner ................................................................. (185,170) 0 Limited Partners: 80,000 units authorized, 77,000 issued and outstanding ................................................. 9,590,836 9,287,059 --------------- --------------- Total Partners' equity ............................................................ 9,405,666 9,287,059 --------------- --------------- Total Liabilities and Partners' equity ............................................ $ 10,938,214 $ 10,808,318 =============== ===============
SEE ACCOMPANYING NOTES 4 SIERRA PACIFIC PENSION INVESTORS '84 (A LIMITED PARTNERSHIP) STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999 - --------------------------------------------------------------------------------
2000 1999 --------------- --------------- (UNAUDITED) (UNAUDITED) REVENUES: Rental income ....................................................................... $ 148,485 $ 143,659 Interest income ..................................................................... 39,793 61,088 --------------- --------------- Total revenues ............................................................. 188,278 204,747 --------------- --------------- EXPENSES: Operating expenses .................................................................. 128,074 122,176 Depreciation and amortization ....................................................... 36,355 68,349 Interest expense .................................................................... 32,568 34,769 --------------- --------------- Total costs and expenses ................................................... 196,997 225,294 --------------- --------------- LOSS BEFORE PARTNERSHIP'S SHARE OF UNCONSOLIDATED JOINT VENTURE INCOME ................................................. (8,719) (20,547) PARTNERSHIP'S SHARE OF UNCONSOLIDATED JOINT VENTURE INCOME ................................................................ 127,326 58,670 --------------- --------------- NET INCOME ............................................................................ $ 118,607 $ 38,123 =============== =============== Net income per limited partnership unit ............................................... $ 1.52 $ 0.50 =============== ===============
SEE ACCOMPANYING NOTES 5 SIERRA PACIFIC PENSION INVESTORS '84 (A LIMITED PARTNERSHIP) STATEMENTS OF CHANGES IN PARTNERS' EQUITY FOR THE YEAR ENDED DECEMBER 31, 1999 AND FOR THE THREE MONTHS ENDED MARCH 31, 2000 - --------------------------------------------------------------------------------
LIMITED PARTNERS TOTAL ---------------------------------- GENERAL PARTNERS' PER UNIT TOTAL PARTNER EQUITY --------------- --------------- --------------- --------------- Proceeds from sale of partnership units ................................ $ 250.00 $ 19,418,250 $ 19,418,250 Underwriting commissions and other organization expenses .................. (37.34) (2,894,014) (2,894,014) Repurchase of 665 partnership units ................ (0.03) (151,621) (151,621) Cumulative net (loss) income (to December 31, 1999) ........................... (70.59) (5,435,550) $ 133,334 (5,302,216) Cumulative distributions (to December 31, 1999) ........................... (21.43) (1,650,006) (133,334) (1,783,340) --------------- --------------- --------------- --------------- Partners' equity - January 1, 2000 (audited) ....... 120.61 9,287,059 0 9,287,059 Cumulative adjustment of net loss allocation ....... 2.42 186,356 (186,356) 0 Net income (unaudited).............................. 1.52 117,421 1,186 118,607 --------------- --------------- --------------- --------------- Partners' equity (deficit) - March 31, 2000 (unaudited) ...................................... $ 124.55 $ 9,590,836 $ (185,170) $ 9,405,666 =============== =============== =============== ===============
SEE ACCOMPANYING NOTES 6 SIERRA PACIFIC PENSION INVESTORS '84 (A LIMITED PARTNERSHIP) STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999 - --------------------------------------------------------------------------------
2000 1999 --------------- --------------- (UNAUDITED) (UNAUDITED) CASH FLOWS FROM OPERATING ACTIVITIES: Net income ............................................................................. $ 118,607 $ 38,123 Adjustments to reconcile net income to cash (used in) provided by operating activities: Depreciation and amortization ........................................................ 36,355 68,349 Partnership's share of unconsolidated joint venture income ..................................................................... (127,326) (58,670) Increase in rent receivable .......................................................... (8,475) (626) Increase in interest receivable ...................................................... (39,790) (61,085) (Increase) decrease in other assets .................................................. (71,621) 28,466 Increase (decrease) in accrued and other liabilites .................................. 28,174 (2,876) --------------- --------------- Net cash (used in) provided by operating activities .................................. (64,076) 11,681 --------------- --------------- CASH FLOWS FROM INVESTING ACTIVITIES: Payments for property additions ...................................................... (1,813) (48,025) --------------- --------------- Net cash used in investing activities ................................................ (1,813) (48,025) --------------- --------------- CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments on notes payable .................................................. (16,885) (21,159) Capital contributions to unconsolidated joint venture ................................ (34,000) 0 Distributions from unconsolidated joint venture ...................................... 107,000 0 Loan from affiliate .................................................................. 0 54,500 --------------- --------------- Net cash provided by financing activities ............................................ 56,115 33,341 --------------- --------------- NET DECREASE IN CASH AND CASH EQUIVALENTS ............................................... (9,774) (3,003) CASH AND CASH EQUIVALENTS - Beginning of period .......................................... 31,562 10,122 --------------- --------------- CASH AND CASH EQUIVALENTS - End of period ................................................ $ 21,788 $ 7,119 =============== =============== SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for interest ............................................. $ 32,504 $ 34,888 =============== ===============
See Accompanying Notes 7 SIERRA PACIFIC PENSION INVESTORS `84 (A LIMITED PARTNERSHIP) --------------------- NOTES TO FINANCIAL STATEMENTS (Unaudited) - -------------------------------------------------------------------------------- 1. BASIS OF FINANCIAL STATEMENTS In the opinion of Sierra Pacific Pension Investors `84's (the Partnership) management, these unaudited financial statements reflect all adjustments which are necessary for a fair presentation of its financial position at March 31, 2000 and results of operations and cash flows for the periods presented. All adjustments included in these statements are of a normal and recurring nature. These financial statements should be read in conjunction with the financial statements and notes thereto contained in the Annual Report of the Partnership for the year ended December 31, 1999. 2. RELATED PARTY TRANSACTIONS Included in the financial statements for the three months ended March 31, 2000 and 1999 are affiliate transactions as follows: MARCH 31 ----------------------- 2000 1999 ---------- ---------- Management fees $ 4,449 $ 4,585 Administrative fees 19,744 16,596 3. INVESTMENT IN UNCONSOLIDATED JOINT VENTURE Sierra Mira Mesa Partners (SMMP) was formed in 1985 between the Partnership and Sierra Pacific Development Fund II (SPDFII), an affiliate, to develop and operate the real property known as Sierra Mira Mesa, an office building, located in San Diego, California. The Partnership's initial ownership interest in SMMP was 49%; the remaining 51% was owned by SPDFII. Effective December 31, 1996, the general partners amended the partnership agreement to allow for adjustments in the sharing ratio each year based upon the relative net contributions and distributions since inception of each general partner. At March 31, 2000 the Partnership's interest in SMMP was 69.83%; the remaining 30.17% interest is owned by SPDFII. The consolidated financial statements of SMMP include the accounts of SMMP and Sorrento I Partners, a majority owned California general partnership. Summarized income statement information for SMMP for the three months ended March 31, 2000 and 1999 follows: 8 Sierra Pacific Pension Investors '84 Notes to Financial Statements (Unaudited) Page two MARCH 31 ------------------------ 2000 1999 ----------- ---------- Rental income $ 556,156 $ 500,720 Total revenues 617,334 556,010 Operating expenses 219,914 190,270 Share of unconsolidated joint venture income (loss) 45,176 (25,266) Net income 175,848 87,978 As of March 31, 2000, SMMP holds a 43.92% interest in Sorrento II Partners (SIIP), a California general partnership with Sierra Pacific Institutional Properties V formed in 1993; a 5.08% interest in Sierra Creekside Partners (SCP), a California general partnership with Sierra Pacific Development Fund formed in 1994; and a 33.36% interest in Sierra Vista Partners (SVP), a California general partnership with Sierra Pacific Development Fund III formed in 1994. Summarized income statement information for these Partnerships, which are accounted for by SMMP under the equity method, for the three months ended March 31, 2000 and 1999 follows:
SCP SVP SIIP -------------------------- -------------------------- ------------------------- March 31 March 31 March 31 -------------------------- -------------------------- ------------------------- 2000 1999 2000 1999 2000 1999 --------- --------- --------- --------- --------- --------- Rental income ................. $ 229,440 $ 214,772 $ 0 $ 0 $ 385,844 $ 260,066 Total revenues ................ 229,440 214,772 0 11,907 397,049 260,066 Operating expenses ............ 154,180 126,351 13,665 13,797 124,762 123,578 Extraordinary loss ............ 46,020 0 0 0 0 0 Net (loss) income ............. (124,683) (36,421) (20,154) (2,457) 127,660 (63,391)
4. PARTNERS' EQUITY Equity and net income per limited partnership unit is determined by dividing the limited partners' share of the Partnership's equity and net income by the number of limited partnership units outstanding, 77,000. Partners' equity accounts have been adjusted to reflect an allocation of cumulative net loss to the partners in accordance with the agreement of limited partnership. This agreement provides that 99% of operating profits and losses of the Partnership shall be allocated among the limited partners and 1% be allocated to the general partner. Prior year balances have not been adjusted because management does not believe that the effects of these adjustments are significant to the prior year partners' equity balances. 9 PART II - OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits The following Exhibits are filed herewith pursuant to Rule 601 of Regulation S-K. Exhibit Number Description of Exhibit - ----------- ----------------------------- 27 Financial Data Schedule (b) Reports on Form 8-K A Form 8-K was filed in April 2000 reporting a change in the Partnership's Certifying Accountant. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report be signed on its behalf by the undersigned thereunto duly authorized. SIERRA PACIFIC PENSION INVESTORS `84 a Limited Partnership S-P PROPERTIES, INC. General Partner Date: MAY 10, 2000 /S/ THOMAS N. THURBER ------------ ----------------------------------------------- Thomas N. Thurber President and Director Date: MAY 10, 2000 /S/ G. ANTHONY EPPOLITO ------------ ----------------------------------------------- G. Anthony Eppolito Chief Accountant 10 EX-27 2
5 THE FINANCIAL DATA SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM SIERRA PACIFIC PENSION INVESTORS '84 MARCH 31, 2000 FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 3-MOS DEC-31-2000 MAR-31-2000 21,788 0 95,735 0 0 72,871 3,966,790 2,813,436 10,938,214 151,065 1,381,483 0 0 0 9,405,666 10,938,214 148,485 188,278 0 128,074 36,355 0 32,568 118,607 0 118,607 0 0 0 118,607 1.54 1.54
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