-----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, TYzUDtrSD5h0gXgLNogdEmVgemgsYgy3NjeMYgpnkAAXY63p/FqA7eWA60761VlM YqVwyWiqlGjLtvzy3rXlRw== 0000950123-97-007614.txt : 19970912 0000950123-97-007614.hdr.sgml : 19970912 ACCESSION NUMBER: 0000950123-97-007614 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970905 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CORPORATE PROPERTY ASSOCIATES 6 CENTRAL INDEX KEY: 0000750456 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 133247122 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: SEC FILE NUMBER: 000-14551 FILM NUMBER: 97675604 BUSINESS ADDRESS: STREET 1: 50 ROCKEFELLER PLZ 2ND FL CITY: NEW YORK STATE: NY ZIP: 10020 BUSINESS PHONE: 2124921100 MAIL ADDRESS: STREET 1: 50 ROCKEFELLER PLAZA CITY: NEW YORK STATE: NY ZIP: 10020 10-Q/A 1 CORPORATE PROPERTY ASSOCIATES 6 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q/A AMENDMENT NO. 1 (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended JUNE 30, 1997 ----------------------------------------------- or [ ] TRANSITION REPORT PURSUANT TO 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to -------------------------- -------------------- Commission file number 0-14551 --------------------------------------------------------- CORPORATE PROPERTY ASSOCIATES 6 - ------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) CALIFORNIA 13-3247122 - ----------------------------------------------------------------------------------------------------------- (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
50 ROCKEFELLER PLAZA, NEW YORK, NEW YORK 10020 - ------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (212) 492-1100 - ------------------------------------------------------------------------------- (Registrant's telephone number, including area code) - ------------------------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) 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. [X] Yes [ ] No APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS: Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. [ ] Yes [ ] No 2 CORPORATE PROPERTY ASSOCIATES 6 - a California limited partnership PART I Item 1. - FINANCIAL INFORMATION CONSOLIDATED BALANCE SHEETS
December 31, June 30, 1996 1997 ------------ ----------- (Note) (Unaudited) ASSETS: Land, buildings and personal property, net of accumulated depreciation of $16,594,902 at December 31, 1996 and $17,473,245 at June 30, 1997 $ 47,968,552 $47,121,324 Net investment in direct financing leases 32,887,655 32,887,655 Cash and cash equivalents 3,338,391 2,889,939 Notes receivable from affiliate 1,151,000 1,151,000 Other assets 2,807,973 2,816,132 ------------ ----------- Total assets $ 88,153,571 $86,866,050 ============ =========== LIABILITIES: Mortgage notes payable $ 32,057,088 $29,608,323 Note payable 10,000,000 10,000,000 Accrued interest payable 439,078 423,601 Accounts payable and accrued expenses 372,012 326,729 Accounts payable to affiliates 131,275 408,530 Other liabilities 361,816 374,409 Deferred rental income 3,544,624 3,422,043 ------------ ----------- Total liabilities 46,905,893 44,563,635 ------------ ----------- PARTNERS' CAPITAL: General Partners (4,515) 66,379 Limited Partners (47,930 Limited Partnership Units issued and outstanding) 41,252,193 42,236,036 ------------ ----------- Total partners' capital 41,247,678 42,302,415 ------------ ----------- Total liabilities and partners' capital $ 88,153,571 $86,866,050 ============ ===========
The accompanying notes are an integral part of the consolidated financial statements. Note: The consolidated balance sheet at December 31, 1996 has been derived from the audited financial statements at that date. -2- 3 CORPORATE PROPERTY ASSOCIATES 6 - a California limited partnership CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
Three Months Ended Six Months Ended June 30, 1996 June 30, 1997 June 30, 1996 June 30, 1997 ------------- ------------- ------------- ------------- Revenues: Rental income from operating leases $ 1,443,022 $ 1,527,843 $ 2,745,961 $ 3,055,689 Interest from direct financing leases 1,377,229 1,512,860 2,782,939 2,930,034 Other interest income 68,415 77,237 158,351 144,819 Revenue of hotel operations 1,173,653 1,232,076 2,309,540 2,438,897 Other income 126,985 ------------- ------------- ------------- ------------- 4,062,319 4,350,016 7,996,791 8,696,424 ------------- ------------- ------------- ------------- Expenses: Interest 1,018,738 950,939 2,058,253 1,907,664 Depreciation 396,068 453,076 786,500 878,343 General and administrative 142,813 157,640 244,069 334,889 Property expenses 83,435 33,810 130,279 88,002 Amortization 75,875 69,294 133,434 137,958 Operating expenses of hotel operations 885,614 908,168 1,798,296 1,828,922 ------------- ------------- ------------- ------------- 2,602,543 2,572,927 5,150,831 5,175,778 ------------- ------------- ------------- ------------- Income before gain on sales of real estate 1,459,776 1,777,089 2,845,960 3,520,646 Gain on sales of real estate 39,422 70,878 ------------- ------------- ------------- ------------- Net income $ 1,499,198 $ 1,777,089 $ 2,916,838 $ 3,520,646 ============= ============= ============= ============= Net income allocated to General Partners $ 89,952 $ 106,626 $ 175,010 $ 211,239 ============= ============= ============= ============= Net income allocated to Limited Partners $ 1,409,246 $ 1,670,463 $ 2,741,828 $ 3,309,407 ============= ============= ============= ============= Net income per Unit: (47,930 Limited Partnership Units) $ 29.40 $ 34.85 $ 57.20 $ 69.04 ============= ============= ============= =============
The accompanying notes are an integral part of the consolidated financial statements. -3- 4 CORPORATE PROPERTY ASSOCIATES 6 - a California limited partnership CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Six Months Ended June 30, ----------------------------- 1996 1997 ----------- ----------- Cash flows from operating activities: Net income $ 2,916,838 $ 3,520,646 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 919,934 1,016,301 Other noncash items (11,845) (29,864) Amortization of deferred rental income (122,581) (122,581) Gain on sales of real estate (70,878) Net change in operating assets and liabilities 62,817 (67,165) ----------- ----------- Net cash provided by operating activities 3,694,285 4,317,337 ----------- ----------- Cash flows from investing activities: Additional capitalized costs (1,766,609) (31,115) Proceeds from sales of real estate 603,286 ----------- ----------- Net cash used in investing activities (1,163,323) (31,115) ----------- ----------- Cash flows from financing activities: Distributions to partners (2,425,180) (2,465,909) Proceeds from mortgage 6,000,000 Prepayment of mortgage payable (4,257,315) (1,872,107) Payments on mortgage principal (859,184) (576,658) Refund of deferred financing costs 180,000 Deferred financing costs (274,753) ----------- ----------- Net cash used in financing activities (1,816,432) (4,734,674) ----------- ----------- Net increase (decrease) in cash and cash equivalents 714,530 (448,452) Cash and cash equivalents, beginning of period 3,476,915 3,338,391 ----------- ----------- Cash and cash equivalents, end of period $ 4,191,445 $ 2,889,939 =========== =========== Supplemental disclosure of cash flows information: Interest paid $ 2,076,707 $ 1,923,141 =========== ===========
The accompanying notes are an integral part of the consolidated financial statements. -4- 5 CORPORATE PROPERTY ASSOCIATES 6 - a California limited partnership NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Note 1. Basis of Presentation: The accompanying unaudited consolidated 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 Rule 10-01 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. 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 2. Distributions to Partners: Distributions declared and paid to partners during the six months ended June 30, 1997 are summarized as follows:
Quarter Ended General Partners Limited Partners Per Limited Partner Unit - --------------- ---------------- ---------------- ------------------------ December 31, 1996 $ 70,142 $1,162,303 $24.25 ========= ========== ====== March 31, 1997 $ 70,203 $1,163,261 $24.27 ========= ========== ======
A distribution of $24.29 per Limited Partner Unit for the quarter ended June 30, 1997 was declared and paid in July 1997. Note 3. Transactions with Related Parties: For the three-month and six-month periods ended June 30, 1996, the Partnership incurred property management fees of $27,636 and $54,737, respectively, and general and administrative expense reimbursements of $35,612 and $62,154, respectively. For the three-month and six-month periods ended June 30, 1997, the Partnership incurred property management fees of $32,456 and $58,998, respectively, and general and administrative expense reimbursements of $42,757 and $89,364, respectively. Management believes that ultimate payment of a preferred return to the General Partners of $18,099, based upon cumulative proceeds of sales of assets, is reasonably possible but not probable, as defined pursuant to Statement of Financial Accounting Standards No. 5. The Partnership, in conjunction with certain affiliates, is a participant in an agreement for the purpose of renting and occupying office space. Under the agreement, the Partnership pays its proportionate share of rent and other costs of occupancy. Net expenses incurred for the six months ended June 30, 1996 and 1997 were $60,482 and $47,401, respectively. -5- 6 CORPORATE PROPERTY ASSOCIATES 6 - a California limited partnership NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) - (CONTINUED) Note 4. Industry Segment Information: The Partnership's operations consist primarily of the investment in and the leasing of industrial and commercial real estate and the operation of three hotel properties. For the three and six-month periods ended June 30, 1996 and 1997, the Partnership earned its total real estate lease revenues (rental income plus interest income from financing leases) as follows:
1996 % 1997 % ---------- ---------- ---------- ---- Stoody Deloro Stellite, Inc. $1,117,095 20% $1,117,095 19% AP Parts Manufacturing, Inc. 857,044 16 918,267 15 Peerless Chain Company 757,307 14 854,293 14 AutoZone, Inc. 676,111 12 756,469 13 Kinney Shoe Corporation 336,380 6 482,471 8 Wal-Mart Stores, Inc. 413,632 7 445,565 7 Anthony's Manufacturing Company, Inc. 438,000 8 438,000 7 Motorola, Inc. 270,000 5 270,000 5 Harcourt General Corporation 233,750 4 233,750 4 Yale Security, Inc. 126,092 2 229,614 4 Lockheed Martin Corporation 149,333 3 155,000 3 Winn-Dixie Stores, Inc. 85,199 2 85,199 1 Folger Adam Company 68,957 1 ---------- ---------- ---------- ---- $5,528,900 100% $5,985,723 100% ========== ========== ========== ====
Operating results of the three hotels for the six-month periods ended June 30, 1996 and 1997 are summarized as follows:
1996 1997 ----------- ----------- Revenue $ 2,309,540 $ 2,438,897 Fees paid to hotel management company (57,483) (69,406) Other operating expenses (1,740,813) (1,759,516) ----------- ----------- Hotel operating income $ 511,244 $ 609,975 =========== ===========
-6- 7 CORPORATE PROPERTY ASSOCIATES 6 - a California limited partnership 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. CORPORATE PROPERTY ASSOCIATES 6 - a California limited partnership By: CAREY CORPORATE PROPERTY, INC. 09/03/97 By: /s/ Steven M. Berzin -------- ----------------------------------- Date Steven M. Berzin Executive Vice President and Chief Financial Officer (Principal Financial Officer) 09/03/97 By: /s/ Claude Fernandez -------- ----------------------------------- Date Claude Fernandez Executive Vice President and Chief Administrative Officer (Principal Accounting Officer) -7- -----END PRIVACY-ENHANCED MESSAGE-----