-----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, NqLEMcGRmFCZD6qBP0CJv4LJaBUNquxjmFdLR4mOkS8NPXc2OpGQkAsWXDiXz1M5 dajAX6cHYlnf0jWy4EH5jA== 0000950144-97-009243.txt : 19970815 0000950144-97-009243.hdr.sgml : 19970815 ACCESSION NUMBER: 0000950144-97-009243 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970814 SROS: CSX SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: EQK REALTY INVESTORS I CENTRAL INDEX KEY: 0000755926 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 232320360 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-08815 FILM NUMBER: 97662743 BUSINESS ADDRESS: STREET 1: 5775 PEACHTREE DUNWOODY RD STE 200D CITY: ATLANTA STATE: GA ZIP: 30342 BUSINESS PHONE: 4043036100 MAIL ADDRESS: STREET 1: 1401 WALNUT STREET STREET 2: C/O KLEHR HARRISON HARVEY BRANZBURG & EL CITY: PHILADELPHIA STATE: PA ZIP: 19102 10-Q 1 EQK REALTY INVESTORS I 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q --------- (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE [X] SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1997 ------------- OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE [ ] SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________to_________ Commission File No. 1-8815 -------------------------- EQK REALTY INVESTORS I ---------------------------------------------------------------------- (Exact name of Registrant as specified in its Charter) Massachusetts 23-2320360 ---------------------------------------------------------------------- (State or other jurisdiction (I.R.S. Employer of incorporation or organization) Identification No.) 5775 Peachtree Dunwoody Road, Suite 200D, Atlanta, GA 30342 ------------------------------------------------------------ (Address of principal executive offices) (Zip code) (404) 303-6100 ---------------------------------------------------------------------- (Registrant's telephone number, including area code) Indicate by checkmark 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 ----- ----- APPLICABLE TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS: Indicate by checkmark 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 ----- ----- APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the last practicable date: 9,264,344 Shares as of August 13, 1997. - --------------------------------------- 2 EQK REALTY INVESTORS I QUARTERLY REPORT ON FORM 10-Q FOR QUARTER ENDED JUNE 30, 1997 INDEX
Page ---- PART I - FINANCIAL INFORMATION Item 1. Balance Sheets as of June 30, 1997 3 and December 31, 1996 Statements of Operations for the three 4 and six months ended June 30, 1997 and June 30, 1996 Statements of Cash Flows for the six 5 months ended June 30, 1997 and June 30, 1996 Notes to Financial Statements 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 10 PART II - OTHER INFORMATION Items 1 through 6. 14 SIGNATURES 15
2 3 EQK REALTY INVESTORS I BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE DATA)
June 30, December 31, 1997 1996 --------- ------------ ASSETS Investment in Harrisburg East Mall, at cost $ 52,564 $ 52,228 Less accumulated depreciation 16,276 15,338 --------- --------- 36,288 36,890 Cash and cash equivalents: Cash Management Agreement 2,678 2,667 Other 917 994 Deferred leasing costs (net of accumulated amortization of 3,899 4,041 $1,793 and $1,629, respectively) Accounts receivable and other assets 1,637 2,011 --------- --------- TOTAL ASSETS $ 45,419 $ 46,603 ========= ========= LIABILITIES AND DEFICIT IN SHAREHOLDERS' EQUITY Liabilities: Mortgage Note payable $ 43,794 $ 43,794 Term Loan payable to bank 1,585 1,585 Accounts payable and other liabilities (including amounts due affiliates of $3,028 and $2,940, respectively) 3,914 4,245 --------- --------- 49,293 49,624 Deficit in Shareholders' Equity: Shares of beneficial interest, without par value: 10,055,555 shares authorized, 9,264,344 shares issued and outstanding 135,875 135,875 Accumulated deficit (139,749) (138,896) --------- --------- (3,874) (3,021) --------- --------- TOTAL LIABILITIES AND DEFICIT IN SHAREHOLDERS' EQUITY $ 45,419 $ 46,603 ========= =========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 3 4 EQK REALTY INVESTORS I STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
- ---------------------------------------------------------------------------------------------------------------------- Three months ended June 30, Six months ended June 30, --------------------------- ------------------------- 1997 1996 1997 1996 - ---------------------------------------------------------------------------------------------------------------------- Revenues from rental operations $1,557 $1,412 $2,970 $3,126 Operating expenses, net of tenant reimbursements (including property management fees earned by an affiliate of $73, $68, $148 and $152, respectively) 201 217 359 531 Other income -- 72 -- 264 Depreciation and amortization 629 572 1,256 1,196 - ---------------------------------------------------------------------------------------------------------------------- Income from rental operations 727 695 1,355 1,663 Interest expense 1,012 972 2,022 1,953 Other expenses, net of interest income (including portfolio management fees earned by an affiliate of $61, $62, $124, and $123, respectively) 90 198 186 378 - ---------------------------------------------------------------------------------------------------------------------- Net loss $ (375) $ (475) $ (853) $ (668) ====================================================================================================================== Net loss per share $(0.04) $(0.05) $(0.09) $(0.07) ======================================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 4 5 EQK REALTY INVESTORS I STATEMENTS OF CASH FLOWS (IN THOUSANDS)
- ------------------------------------------------------------------------------------------------------- Six months ended June 30, 1997 1996 - ------------------------------------------------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (853) $ (668) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 1,256 1,196 Imputed and deferred interest -- 157 Changes in assets and liabilities: Decrease in accounts payable and other liabilities (331) (725) Decrease in accounts receivable and other assets 198 363 - ------------------------------------------------------------------------------------------------------- Net cash provided by operating activities 270 323 - ------------------------------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES: Additions to real estate investments (336) (99) - ------------------------------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES: Repayments of mortgage debt -- (162) - ------------------------------------------------------------------------------------------------------- Increase (decrease) in cash and cash equivalents (66) 62 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 3,661 2,972 - ------------------------------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS, END OF PERIOD $3,595 $3,034 ======================================================================================================= Supplemental disclosure of cash flow information: Interest paid $2,009 $1,949 =======================================================================================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 5 6 EQK REALTY INVESTORS I NOTES TO FINANCIAL STATEMENTS NOTE 1: DESCRIPTION OF BUSINESS EQK Realty Investors I, a Massachusetts business trust (the "Trust"), was formed pursuant to a Declaration of Trust dated October 8, 1984 to acquire certain income-producing real estate investments. Commencing with the period beginning April 1, 1985, the Trust qualified for and elected real estate investment trust ("REIT") status under the provisions of the Internal Revenue Code. At June 30, 1997, the Trust's remaining real estate investment is Harrisburg East Mall ("Harrisburg" or the "Mall"), a regional shopping center located in Harrisburg, Pennsylvania. During 1995, the Trust sold its remaining interest in Castleton Park ("Castleton") an office park located in Indianapolis, Indiana. During 1993, the Trust sold its two remaining office buildings within its office complex located in Atlanta, Georgia, formerly known as Peachtree-Dunwoody Pavilion ("Peachtree"). Prior to 1993, the Trust sold two office buildings at Castleton (1991) and five office buildings at Peachtree (1992). The Declaration of Trust currently provides that actual disposition of the remaining property, Harrisburg, may occur at any time prior to March 1999. The precise timing of this disposition or an alternative strategic transaction will be at the discretion of the Trustees, depending on both the prevailing conditions in the relevant real estate market and the ability of the Trust to extend or refinance its debt maturing in June 1998. NOTE 2: BASIS OF PRESENTATION The financial statements have been prepared by the Trust, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Trust believes that the disclosures are adequate to make the information presented not misleading. The financial statements should be read in conjunction with the audited financial statements and related notes thereto included in the Annual Report on Form 10-K and Amendment No. 1 to Form 10-K for the year ended December 31, 1996. In the opinion of the Trust, all adjustments, which include only normal recurring adjustments necessary to present fairly its financial position as of June 30, 1997, its results of operations for the three and six months ended June 30, 1997 and 1996 and its cash flows for the six months ended June 30, 1997 and 1996, have been included in the accompanying unaudited financial statements. 6 7 EQK REALTY INVESTORS I NOTES TO FINANCIAL STATEMENTS NOTE 2: BASIS OF PRESENTATION (CONTINUED) Net loss per share for the three and six months ended June 30, 1997 and 1996 have been computed on the basis of the 9,264,344 shares outstanding during the periods. Stock warrants held by the Trust's mortgage lender are considered common stock equivalents for purposes of the calculation of net loss per share. However, the warrants have not been included in the calculation of net loss per share for the periods presented since the effect of such calculation would be antidilutive. NOTE 3: CASH MANAGEMENT AGREEMENT In connection with the Trust's mortgage agreement (as amended and extended), the Trust entered into a Cash Management Agreement with the mortgage lender and assigned all lease and rent receipts to the lender as additional collateral. Pursuant to this agreement, a third-party escrow agent has been appointed to receive all rental payments from tenants and to fund monthly operating expenses in accordance with a budget approved by the lender. As of June 30, 1997, a balance of $738,000 was held by the third-party escrow agent in accordance with the Cash Management Agreement. The agreement also provides for the establishment of a capital reserve account, which is maintained by the escrow agent. Disbursements from this account, which is funded each month with any excess operating cash flow, are limited to capital expenditures approved by the lender. As of June 30, 1997 the balance of the capital reserve account was $1,940,000. NOTE 4: ADVISORY AND MANAGEMENT AGREEMENTS The Trust has entered into an agreement with Equitable Realty Portfolio Management, Inc., a wholly owned subsidiary of Equitable Real Estate Investment Management, Inc. ("Equitable Real Estate"), to act as its "Advisor". Equitable Real Estate was formerly a wholly owned subsidiary of the Equitable Life Assurance Society of the United States ("Equitable"). Effective June 10, 1997, Equitable sold its interest in Equitable Real Estate to Lend Lease Corporation, a real estate and financial services company based in Australia. Going forward, Equitable Real Estate and certain of its business units, including the Advisor, will operate under the name ERE Yarmouth. The Advisor makes recommendations to the Trust concerning investments, administration and day-to-day operations. Under the terms of the advisory agreement, as amended in December 1989, the Advisor receives a management fee that is based upon the average daily per share price of the Trust's shares plus the average daily balance of outstanding mortgage indebtedness. Such fee is calculated using a factor of 42.5 basis points (0.425%) and generally has been payable monthly without subordination. Commencing with the December 1995 debt extension of debt and continuing with the December 1996 debt extension, the Mortgage Note lender has 7 8 EQK REALTY INVESTORS I NOTES TO FINANCIAL STATEMENTS NOTE 4: ADVISORY AND MANAGEMENT AGREEMENTS (CONTINUED) requested, and the Advisor has agreed to, a partial deferral of payment of its fee. Whereas the fee will continue to be computed as described, payments to the Advisor will be limited to $37,500 per quarter. Accrued but unpaid fees, which amounted to $211,000 as of June 30, 1997, will be eligible for payment upon the repayment of the Mortgage Note. For the six months ended June 30, 1997 and 1996, portfolio management fees amounted to $124,000 and $123,000, respectively. As part of the 1989 amendment to the advisory agreement, the Advisor forgave one-half, or $2,720,000, of the total amount of fees previously deferred pursuant to subordination provisions of the original advisory agreement. The remaining deferred fees are to be paid upon the disposition of Harrisburg. The Trust has also entered into an agreement with Compass Retail, Inc. ("Compass"), which operates as a business unit of ERE Yarmouth, for the on-site management of Harrisburg. Management fees paid to Compass are generally based upon a percentage of rents and certain other charges. Such fees and commissions are comparable to those charged by unaffiliated third-party management companies providing comparable services. For the six months ended June 30, 1997 and 1996, management fee expense attributable to services rendered by Compass was $148,000 and $152,000, respectively. NOTE 5: DEBT MATURITIES The Trust's debt instruments mature on June 15, 1998 in the aggregate principal amount of $45,379,000. In the event that the Trust does not sell Harrisburg before the Mortgage Note and Term Loan mature, Management will explore its external financing alternatives, including the refinancing of the debt with its existing lenders. However, if the Trust is unable to refinance or replace the existing debt at commercially reasonable terms or at all, Management's plans with respect to liquidating Harrisburg will be accelerated to satisfy its debt obligations. NOTE 6: OTHER INCOME In March 1996, the Trust was notified by the Fulton County (Georgia) Tax Commissioner's office of a reduction in the assessed value of the real estate underlying Peachtree Dunwoody Pavilion for tax years 1991 and 1992. As previously disclosed in Note 1, the Trust completed the sale of Peachtree Dunwoody Pavilion during the period 1992-1993. Such reduction in assessed value resulted in a refund of previously paid real estate taxes in the amount of $192,000 which the Trust recognized as other income during the first quarter of 1996. In June 1996, the Trust was notified by the Fulton County Tax Commissioner's office of an additional tax refund of $72,000, which the Trust received in July 1996 and recognized 8 9 EQK REALTY INVESTORS I NOTES TO FINANCIAL STATEMENTS NOTE 6: OTHER INCOME (CONTINUED) as other income in the second quarter of 1996. 9 10 EQK REALTY INVESTORS I MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS This discussion should be read in conjunction with the financial statements and notes that appear on pages 3-9. FINANCIAL CONDITION CAPITAL RESOURCES Background As of June 30, 1997, the Trust's remaining real estate investment is Harrisburg East Mall ("Harrisburg"), a regional shopping center located in Harrisburg, Pennsylvania. During the period 1992 to 1995, the Trust completed the disposition of its two other real estate investments. Castleton Park ("Castleton"), an office park in Indianapolis, Indiana was sold in 1995, and Peachtree Dunwoody Pavilion was sold in three separate transactions during 1992 and 1993. The Declaration of Trust currently provides that the actual disposition of the remaining property, Harrisburg East Mall, may occur at any time prior to March 1999. The precise timing of this disposition or an alternative strategic transaction will be at the discretion of the Trustees, depending on both the prevailing conditions in the relevant real estate market and the ability of the Trust to extend or refinance its debt maturing in June 1998. Over the past several years, the retail industry has experienced a large number of retail store mergers and bankruptcies. Consolidations within the retail industry and the financial difficulties experienced by individual retailers have, in turn, led to a high level of unanticipated store closings and requests for rent relief within regional shopping malls. At Harrisburg, the current state of the retail industry has impacted both its department stores and its smaller specialty stores. Two of the department stores operating in 1994 have since closed, Hess's (November 1994) and John Wanamaker (October 1995). These department store spaces remained "dark" for substantial periods of time pending the opening of their replacements, Hecht's (October 1995) and Lord & Taylor (March 1997). The temporary closure of these department stores permitted certain tenants to exercise co-tenancy provisions pursuant to their leases, which allowed them to pay a lower amount of rent based on a percentage of sales volumes in lieu of fixed minimum rents. Additionally, certain other tenants experienced financial difficulties which led to requests for rent relief and unanticipated store 10 11 EQK REALTY INVESTORS I MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS closings. As a result of these matters, the aggregate decline in rental revenues from amounts otherwise provided for under the related lease agreements amounted to approximately $600,000 for both 1995 and 1996, and $80,000 for the first quarter of 1997. Upon the opening of Lord & Taylor on March 10, 1997, substantially all of the in-line tenants' co-tenancy provisions ceased being operable, and such tenants' rent structures reverted back to fixed minimum rents. However, certain other tenants have either closed or remained on rent relief, which resulted in a shortfall of $60,000 for the second quarter of 1997 and will likely continue to result in rent shortfalls from contractual amounts of approximately $50,000 to $100,000 per quarter. Management will continue to seek new tenants to fill existing vacancies and to replace such under-performing tenants. No assurances can be given, however, that Management will succeed with such efforts, or that such adverse effects will not continue beyond 1997 or increase in amount. These factors, as well as competitive pressures within the retail industry, have adversely affected the value and marketability of regional shopping malls in general and of Harrisburg in particular. Debt Maturities The Trust's Mortgage Note and Term Loan mature on June 15, 1998 in the aggregate principal amount of $45,379,000. In the event that the Trust does not sell Harrisburg or complete an alternative strategic transaction before the Mortgage Note and Term Loan mature on June 15, 1998, Management will explore its external financing alternatives, including the refinancing of its debt with the existing lenders. However, if the Trust is unable to refinance or replace the existing debt at commercially reasonable terms or at all, Management's plans with respect to liquidating Harrisburg will be accelerated to satisfy its debt obligations. LIQUIDITY The Trust's cash flows provided by operating activities decreased by $53,000 during the six months ended June 30, 1997 as compared to the six months ended June 30, 1996. The decrease in cash flows generated from operations is principally the result of a 1996 refund of previously-paid real estate taxes at Peachtree Dunwoody Pavilion as discussed in Note 6 to the financial statements ($264,000) and a decrease in Harrisburg's net operating income during the first half of 1997 as discussed under Results of Operations ($56,000). Partially offsetting these decreases was the repayment of a $300,000 loan to the Advisor in 1996. Cash flows used in investing activities during the six months ended June 30, 1997 and 1996 amounted to $336,000 and $99,000, respectively. The 1997 results reflect a parking lot repaving 11 12 EQK REALTY INVESTORS I MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS project and a tenant allowance at Harrisburg. The 1996 results reflect routine capital additions at Harrisburg. The Trust anticipates capital expenditure requirements of approximately $865,000 for the remainder of 1997, which include budgeted tenant allowances of $620,000. Certain of these expenditures are discretionary in nature and may be deferred into future periods. During the six months ended June 30, 1996, cash flows used in financing activities were limited to scheduled principal payments on the Trust's debt. Pursuant to the mortgage debt extension effective December 15, 1996, the Mortgage Note and Term Loan generally require monthly payments of interest only. Accordingly, there were no cash flows used in financing activities during the first six months of 1997. The Trust's liquidity requirements for the remainder of 1997 also will include debt service payments of approximately $2,010,000 pursuant to the existing loan agreements. The Trust's cash management agreement stipulates that all rental payments from tenants are to be made directly to a third party escrow agent who also funds monthly operating expenses in accordance with a budget approved by the lender. The Trust believes that its cash flow for 1997 will be sufficient to fund its various operating requirements, including budgeted capital expenditures and monthly principal and interest payments, although its discretion with respect to cash flow will be limited by the terms of the cash management agreement. Management believes that the Trust's current cash reserves, coupled with additional cash flow projected to be generated from operations, will permit the Trust to meet its operating, capital and debt service requirements. As discussed above and in Note 1 to the financial statements, the Trust records its investments in real estate in accordance with the historical cost accounting convention. Accordingly, the Trust has not written up the cost basis of its investment in Harrisburg to its substantially higher net realizable value. Therefore, Management does not believe that its deficit in shareholders' equity of $3,874,000 at June 30, 1997 is indicative of its current liquidity or the net distribution that its shareholders would receive upon liquidation. RESULTS OF OPERATIONS For the six months ended June 30, 1997, the Trust reported a net loss of $853,000 ($.09 per share) compared to a net loss of $668,000 ($.07 per share) for the six months ended June 30, 1996. For the second quarter of 1997, a net loss of $375,000 ($.04 per share) was reported compared to a net loss of $475,000 ($.05 per share) for the second quarter of 1996. 12 13 EQK REALTY INVESTORS I MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The Trust's revenues for the three and six months ended June 30, 1997 were $1,557,000 and $2,970,000, respectively, representing an increase of $145,000 for the second quarter and a decline of $156,000 for the six month period. The increase for the second quarter of 1997 was largely due to the cessation of certain tenants' co-tenancy provisions and a corresponding increase in their rent obligations as discussed above. For the six month period, these increases were offset primarily by the non-recurrence of lease cancellation fees received in the first quarter of 1996. The Trust's expenses for the three and six months ended June 30, 1997 and 1996 were $201,000 and $359,000, respectively, representing decreases of $16,000 and $172,000 over the comparable 1996 periods. The decline in expenses for the six month period was primarily attributable to a $74,000 decrease in Harrisburg's bad debt expense in 1997 and to the non-recurrence of post-disposition expenses related to Castleton of $73,000 during the first half of 1996. In March 1996, the Trust was notified by the Fulton County (Georgia) Tax Commissioner's office of a reduction in the assessed value of the real estate underlying Peachtree Dunwoody Pavilion for tax years 1991 and 1992. As previously disclosed in Note 1, the Trust completed the sale of Peachtree Dunwoody Pavilion during the period 1992-1993. Such reduction in assessed value resulted in a refund of previously paid real estate taxes in the amount of $192,000 which the Trust recognized as other income during the first quarter of 1996. In June 1996, the Trust was notified by the Fulton County Tax Commissioner's office of an additional tax refund of $72,000, which the Trust received in July 1996 and recognized as other income in the second quarter of 1996. There were no such similar events during the first half of 1997. Interest expense for the first six months of 1997 increased by $69,000 from the first six months of 1996. The increase is primarily the result of an increase in the mortgage note interest rate to 8.88% from 8.54% effective with the December 15, 1996 mortgage note extension agreement. Other expenses consist of portfolio management fees, other costs related to the operation of the Trust, and interest income earned on cash balances. The decrease in other expenses of $190,000 for the six months ended June 30, 1997 is primarily attributable to the recognition of imputed interest on deferred advisory fees in 1996. The imputed interest, which was fully amortized as of December 31, 1996, relates to the 1989 amendment to the advisory agreement (see note 4 to the Financial Statements). 13 14 EQK REALTY INVESTORS I PART II - OTHER INFORMATION ITEM 1. Legal Proceedings. None ITEM 2. Changes in Securities. None ITEM 3. Defaults Upon Senior Securities. None ITEM 4. Submission of Matters to a Vote of Security Holders. None ITEM 5. Other Information. None ITEM 6. Exhibits and Reports on Form 8-K (a) Exhibits: 2. None 4. None 10. None 11. See Note 2 to the Financial Statements. 15. Not Applicable 18. Not Applicable 19. None 22. None 23. Not Applicable 24. None 27. Financial Data Schedule (for SEC use only) (b) Reports on Form 8-K. None 14 15 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. Date: August 13, 1997 EQK REALTY INVESTORS I By: /s/Gregory R. Greenfield ----------------------------- Gregory R. Greenfield Executive Vice President and Treasurer (Principal Financial Officer) By: /s/William G. Brown, Jr. ----------------------------- William G. Brown, Jr. Vice President and Controller (Principal Accounting Officer) 15 EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS OF EQK REALTY INVESTORS I FOR THE PERIOD ENDED JUNE 30, 1997, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 6-MOS DEC-31-1997 JUN-30-1997 3,595 0 0 0 0 0 0 0 45,419 0 0 0 0 135,875 (139,749) 45,419 0 2,970 0 359 1,442 0 2,022 (853) 0 (853) 0 0 0 (853) (0.09) (0.09)
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