-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, HorBC1vberBm34lfbOzMIo0FZNRqGKYKhjaV+sj+qqFgreH7HFJlSkn/C7xasmVu Jwf4DyXQx33Zd6g/HZAyJA== 0000756427-95-000002.txt : 19950530 0000756427-95-000002.hdr.sgml : 19950530 ACCESSION NUMBER: 0000756427-95-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950515 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MCNEIL REAL ESTATE FUND XXIV LP CENTRAL INDEX KEY: 0000756427 STANDARD INDUSTRIAL CLASSIFICATION: 6500 IRS NUMBER: 742339537 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-14267 FILM NUMBER: 95539014 BUSINESS ADDRESS: STREET 1: 13760 NOEL RD STE 700 LB70 CITY: DALLAS STATE: TX ZIP: 75240 BUSINESS PHONE: 2144485800 MAIL ADDRESS: STREET 2: 13760 NOEL ROAD SUITE 700 LB 70 CITY: DALLAS STATE: TX ZIP: 75240 FORMER COMPANY: FORMER CONFORMED NAME: SOUTHMARK EQUITY PARTNERS LTD DATE OF NAME CHANGE: 19920413 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the period ended March 31, 1995 -------------------------------------------------- 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 number 0-14267 MCNEIL REAL ESTATE FUND XXIV, L.P. - - - - - ----------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) California 74-2339537 - - - - - ----------------------------------------------------------------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 13760 Noel Road, Suite 700, LB70, Dallas, Texas, 75240 - - - - - ----------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code (214) 448-5800 -------------------------- 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 and (2) has been subject to such filing requirements for the past 90 days. Yes X No --- --- MCNEIL REAL ESTATE FUND XXIV, L.P. PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS - - - - - ------ -------------------- BALANCE SHEETS (Unaudited)
March 31, December 31, 1995 1994 ---------- ---------- ASSETS - - - - - ------ Real estate investments: Land..................................................... $ 7,039,867 $ 7,039,867 Buildings and improvements............................... 29,328,389 29,272,835 ---------- ---------- 36,368,256 36,312,702 Less: Accumulated depreciation and amortization......... (11,397,444) (11,061,009) ---------- ---------- 24,970,812 25,251,693 Cash and cash equivalents................................... 1,883,430 1,720,161 Cash segregated for security deposits....................... 82,797 85,851 Accounts receivable, net of allowance for doubtful accounts of $77,044 at March 31, 1995 and December 31, 1994........................................ 440,989 401,525 Prepaid expenses and other assets, net...................... 198,325 215,741 ---------- ---------- $27,576,353 $27,674,971 ========== ========== LIABILITIES AND PARTNERS' EQUITY (DEFICIT) - - - - - ----------------------------------------- Mortgage note payable....................................... $ 5,614,426 $ 5,660,558 Accounts payable and accrued expenses....................... 209,930 194,613 Payable to affiliates - General Partner..................... 48,271 38,716 Advances from affiliates.................................... 642,581 642,581 Deferred gain............................................... 11,900 17,000 Security deposits and deferred rental income................ 88,747 87,413 ---------- ---------- 6,615,855 6,640,881 ---------- ---------- Partners' equity (deficit): Limited partners - 40,000 limited partnership units authorized and outstanding at March 31, 1995 and December 31, 1994............................. 20,967,066 21,039,922 General Partner.......................................... (6,568) (5,832) ---------- ---------- 20,960,498 21,034,090 ---------- ---------- $27,576,353 $27,674,971 ========== ==========
The financial information included herein has been prepared by management without audit by independent public accountants. See accompanying notes to financial statements. McNEIL REAL ESTATE FUND XXIV, L.P. STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended March 31, ---------------------------- 1995 1994 --------- --------- Revenue: Rental revenue............................................... $ 982,327 $1,093,650 Interest..................................................... 25,452 11,135 --------- --------- Total revenue.............................................. 1,007,779 1,104,785 --------- --------- Expenses: Interest..................................................... 100,492 100,885 Depreciation and amortization................................ 336,435 315,177 Property taxes............................................... 124,986 118,328 Personnel costs.............................................. 84,996 64,230 Utilities.................................................... 47,826 63,367 Repairs and maintenance...................................... 95,335 109,908 Property management fees - affiliates........................ 53,028 55,311 Other property operating expenses............................ 71,284 59,569 General and administrative................................... 10,206 10,614 General and administrative - affiliates...................... 156,783 159,793 --------- --------- Total expenses............................................. 1,081,371 1,057,182 --------- --------- Net income (loss).............................................. $ (73,592) $ 47,603 ========= ========= Net income (loss) allocable to limited partners................ $ (72,856) $ 47,127 Net income (loss) allocable to General Partner................. (736) 476 --------- --------- Net income (loss).............................................. $ (73,592) $ 47,603 ========= ========= Net income (loss) per thousand limited partnership units....... $ (1.82) $ 1.18 ========= =========
The financial information included herein has been prepared by management without audit by independent public accountants. See accompanying notes to financial statements. McNEIL REAL ESTATE FUND XXIV, L.P. STATEMENTS OF PARTNERS' EQUITY (DEFICIT) (Unaudited) For the Three Months Ended March 31, 1995 and 1994
Total General Limited Partners Partner Partners Equity ---------- ---------- ---------- Balance at December 31, 1993.............. $ (5,177) $21,104,778 $21,099,601 Net income................................ 476 47,127 47,603 --------- ---------- ---------- Balance at March 31, 1994................. $ (4,701) $21,151,905 $21,147,204 ========= ========== ========== Balance at December 31, 1994.............. $ (5,832) $21,039,922 $21,034,090 Net loss.................................. (736) (72,856) (73,592) --------- ---------- ---------- Balance at March 31, 1995................. $ (6,568) $20,967,066 $20,960,498 ========= ========== ==========
The financial information included herein has been prepared by management without audit by independent public accountants. See accompanying notes to financial statements. McNEIL REAL ESTATE FUND XXIV, L.P. STATEMENTS OF CASH FLOWS (Unaudited) Increase in Cash and Cash Equivalents
Three Months Ended March 31, -------------------------------- 1995 1994 -------- --------- Cash flows from operating activities: Cash received from tenants........................ $ 939,441 $1,024,040 Cash paid to suppliers............................ (328,551) (320,597) Cash paid to affiliates........................... (200,256) (194,146) Interest received................................. 25,452 11,135 Interest paid..................................... (90,996) (93,143) Property taxes paid............................... (80,135) (188,257) --------- --------- Net cash provided by operating activities............ 264,955 239,032 --------- --------- Cash flows from investing activities: Additions to real estate investments.............. (55,554) (76,966) --------- ---------- Cash flows from financing activities: Principal payments on mortgage note payable......................................... (46,132) (55,104) --------- --------- Net increase in cash and cash equivalents....................................... 163,269 106,962 Cash and cash equivalents at beginning of period............................................ 1,720,161 1,435,591 --------- --------- Cash and cash equivalents at end of period........... $1,883,430 $1,542,553 ========= =========
The financial information included herein has been prepared by management without audit by independent public accountants. See accompanying notes to financial statements. McNEIL REAL ESTATE FUND XXIV, L.P. STATEMENTS OF CASH FLOWS (Unaudited) Reconciliation of Net Income (Loss) to Net Cash Provided by Operating Activities
Three Months Ended March 31, ------------------------------- 1995 1994 ------- ------- Net income (loss).................................... $(73,592) $ 47,603 ------- ------- Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization..................... 336,435 315,177 Amortization of deferred borrowing costs.......... 7,770 7,770 Amortization of deferred gain..................... (5,100) (5,100) Changes in assets and liabilities: Cash segregated for security deposits........... 3,054 (4,655) Accounts receivable, net........................ (39,464) (64,276) Prepaid expenses and other assets, net.......... 9,646 (10,456) Accounts payable and accrued expenses........... 15,317 (73,969) Payable to affiliates - General Partner......... 9,555 20,958 Security deposits and deferred rental income........................................ 1,334 5,980 ------- ------- Total adjustments............................. 338,547 191,429 ------- ------- Net cash provided by operating activities............ $264,955 $239,032 ======= =======
The financial information included herein has been prepared by management without audit by independent public accountants. See accompanying notes to financial statements. MCNEIL REAL ESTATE FUND XXIV, L.P. Notes to Financial Statements March 31, 1995 (Unaudited) NOTE 1. - - - - - ------ McNeil Real Estate Fund XXIV, L.P. (the "Partnership"), formerly known as Southmark Equity Partners, Ltd., was organized on October 19, 1984, as a limited partnership under the provisions of the California Revised Limited Partnership Act to acquire and operate commercial and residential properties. The general partner of the Partnership is McNeil Partners, L.P. (the "General Partner"), a Delaware limited partnership, an affiliate of Robert A. McNeil ("McNeil"). The principal place of business for the Partnership and the General Partner is 13760 Noel Road, Suite 700, LB70, Dallas, Texas, 75240. In the opinion of management, the financial statements reflect all adjustments necessary for a fair presentation of the Partnership's financial position and results of operations. All adjustments were of a normal recurring nature. However, the results of operations for the three months ended March 31, 1995 are not necessarily indicative of the results to be expected for the year ending December 31, 1995. NOTE 2. - - - - - ------ The financial statements should be read in conjunction with the financial statements contained in the Partnership's Annual Report on Form 10-K for the year ended December 31, 1994, and the notes thereto, as filed with the Securities and Exchange Commission, which is available upon request by writing to McNeil Real Estate Fund XXIV, L.P., c/o McNeil Real Estate Management, Inc., Investor Services, 13760 Noel Road, Suite 700, LB70, Dallas, Texas 75240. NOTE 3. - - - - - ------ Certain prior period amounts have been reclassified to conform to the current period presentation. NOTE 4. - - - - - ------ The Partnership pays property management fees equal to 5% of the gross rental receipts for its residential properties and 6% of gross rental receipts for its commercial properties to McNeil Real Estate Management, Inc. ("McREMI"), an affiliate of the General Partner, for providing property management services for the Partnership's residential and commercial properties and leasing services for its residential properties. McREMI may also choose to provide leasing services for the Partnership's commercial properties, in which case McREMI will receive property management fees from such commercial properties equal to 3% of the property's gross rental receipts plus leasing commissions based on the prevailing market rate for such services where the property is located. The Partnership reimburses McREMI for its costs, including overhead, of administering the Partnership's affairs. The Partnership is paying an asset management fee which is payable to the General Partner. Through 1999, the asset management fee is calculated as 1% of the Partnership's tangible asset value. Tangible asset value is determined by using the greater of (i) an amount calculated by applying a capitalization rate of 9% to the annualized net operating income of each property or (ii) a value of $10,000 per apartment unit for residential properties and $50 per gross square foot for commercial properties to arrive at the property tangible asset value. The property tangible asset value is then added to the book value of all other assets excluding intangible items. The fee percentage decreases subsequent to 1999. Compensation and reimbursements paid to or accrued for the benefit of the General Partner or its affiliates are as follows:
Three Months Ended March 31, ------------------------------- 1995 1994 ------- ------- Property management fees............................. $ 53,028 $ 55,311 Charged to general and administrative - affiliates: Partnership administration........................ 78,680 73,829 Asset management fee.............................. 78,103 85,964 ------- ------- $209,811 $215,104 ======= =======
The payable to affiliates - General Partner at March 31, 1995 and December 31, 1994 consisted primarily of unpaid property management fees, Partnership general and administrative expenses and asset management fees and are due and payable from current operations. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND - - - - - ------ --------------------------------------------------------------- RESULTS OF OPERATIONS --------------------- FINANCIAL CONDITION - - - - - ------------------- There has been no significant change in the operations of the Partnership's properties since December 31, 1994. The Partnership reported net loss for the first three months of 1995 of $73,592 as compared to net income of $47,603 for the first three months of 1994. Revenues were $1,007,779 in 1995, down from $1,104,785 for the same period in 1994. Expenses increased to $1,081,371 in 1995, up from $1,057,182 in 1994. Net cash provided by operating activities was $264,955 for the first three months of 1995, an increase from the $239,032 provided during the first three months of 1994. After principal payments on the Partnership's mortgage loan of $46,132 and capital improvements of $55,554, cash and cash equivalents at March 31, 1995 were $1,883,430, up by $163,269 since December 31, 1994. RESULTS OF OPERATIONS - - - - - --------------------- Revenue: Total revenue decreased by $97,006 for the first three months of 1995 as compared to the first three months in 1994. The decrease was primarily due to an decrease in rental revenue, as discussed below. Rental revenue decreased by $111,323 for the first three months of 1995 in relation to the respective period in 1994. The decrease was primarily due to a decrease of approximately $57,000 in common area maintenance costs billed to tenants at Southpointe Plaza Shopping Center. In addition, there was a slight decrease in occupancy at Island Plaza and Springwood Plaza from 84% and 77%, respectively, at March 31, 1994 to 80% and 72%, respectively, at March 31, 1995. Interest income increased by $14,317 in the three months ended March 31, 1995 as compared to the same period in 1994. The increase was due to the fact that in 1995 there was a greater amount of cash available for short-term investment. The partnership had approximately $1.9 million in cash and cash equivalents at March 31, 1995, as compared to $1.5 million at March 31, 1994. In addition, there was an increase in interest rates earned on invested cash in 1995. Expenses: Total expenses increased by $24,189 for the first three months of 1995, as compared to the first three months of 1994. The increase was primarily the result of an increase in personnel costs and other property operating expenses, partially offset by a decrease in utilities and repairs and maintenance, as discussed below. Personnel costs increased by $20,766 for the three months ended March 31, 1995, as compared to the same period in 1994. The increase was due to the an increase in compensation to on-site personnel at all of the properties in 1995. Utilities decreased by $15,541 for the first three months in 1995 as compared to the same period in 1994. The decrease was mainly due to the lower occupancy at Southpointe Plaza, which meant there were fewer tenants using the property's utilities in 1995. Repairs and maintenance expense decreased by $14,573 for the first quarter of 1995 in relation to the first quarter of 1994. The decrease was due to a decrease in the replacement of carpet and appliances at Pine Hills and Sleepy Hollow Apartments, which were expensed in 1994. Other property operating expenses increased by $11,715 for the three months ended March 31, 1995 as compared to the three months ended March 31, 1994. The increase was mainly due to increased legal fees at Southpointe Plaza Shopping Center relating to a lawsuit involving a tenant's lease. LIQUIDITY AND CAPITAL RESOURCES - - - - - ------------------------------- The Partnership's primary source of cash flows is from operating activities which generated $264,955 of cash in the first three months of 1995 as compared to $239,032 for the same period in 1994. The increase in cash provided by operating activities in 1995 was mainly due to a decrease in property taxes paid in the first quarter of 1995 as compared to the first quarter of 1994, due to the timing of the payment of invoices. Short-term liquidity: - - - - - -------------------- At March 31, 1995, the Partnership held cash and cash equivalents of $1,883,430. This balance provides a reasonable level of working capital for the Partnership's immediate needs in operating its properties. For the remainder of 1995, Partnership properties are expected to provide positive cash flow from operations after payment of debt service and capital improvements. The Partnership has budgeted $436,000 for necessary capital improvements for all properties in 1995 which is expected to be funded from available cash reserves or from operations of the properties. The present cash balance is believed to provide an adequate reserve for property operations. At the present time, the Partnership does not anticipate making distributions to the limited partners in 1995. There can be no assurance as to when the Partnership will rebuild cash reserves judged adequate to resume distributions to the partners. Long-term liquidity: - - - - - ------------------- Only one property, Southpointe Plaza Shopping Center, is encumbered with mortgage debt. the Partnership will attempt to obtain refinancing or extension of the mortgage note when it matures in 1997. While the outlook for maintenance of adequate levels of liquidity is favorable, should operations deteriorate and present cash resources become insufficient to fund current needs, the Partnership would require other sources of working capital. No such sources have been identified. The Partnership has no established lines of credit from outside sources. Other possible actions to resolve cash deficiencies include refinancings, deferral of capital expenditures on Partnership properties except where improvements are expected to increase the competitiveness and marketability of the properties, arranging financing from affiliates or the ultimate sale of the properties. Sales and refinancings are possibilities only, and there are at present no plans for any such sales or refinancings. The General Partner has established a revolving credit facility not to exceed $5,000,000 in the aggregate which is available on a "first-come, first-served" basis to the Partnership and other affiliated partnerships if certain conditions are met. Borrowings under the facility may be used to fund deferred maintenance, refinancing obligations and working capital needs. There is no assurance that the Partnership will receive any funds under the facility because no amounts are reserved for any particular partnership. As of March 31, 1995, $2,102,530 remained available for borrowing under the facility; however, additional funds could become available as other partnerships repay existing borrowings. PART II. OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS - - - - - ------ ----------------- Henry Lim, Charles Chen, Paul Van dba Shangri-La Restaurant & Bar, Robert - - - - - ------------------------------------------------------------------------------- Narayan and Jackie Kim vs. McNeil Real Estate Fund XXIV, L.P. and McNeil Real - - - - - ------------------------------------------------------------------------------- Estate Management, Inc. ("McREMI") et al. This was a complaint for breach of - - - - - ------------------------------------------- contract, breach of covenant to extend term of lease, intentional and negligent interference with respective economic relationships, civil rights violations, intentional and negligent misrepresentation, injurious false suit and negligent and intentional infliction of emotional distress brought by former tenants of the Southpointe Plaza Shopping Center, based on a purported claim that both the Partnership and McREMI orally promised to agree to extend the lease and approve an assignment of lease from three of the plaintiffs to two of the other plaintiffs for a restaurant and bar. On April 10, 1995, a settlement was reached such that the Partnership agreed to pay the first three plaintiffs $42,500, of which $20,000 will be paid by the Partnership's insurance carrier. The remaining two plaintiffs are free to continue to pursue their action. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K - - - - - ------ -------------------------------- (a) Exhibits.
Exhibit Number Description ------- ----------- 4. Amended and Restated Limited Partnership dated March 30, 1992. (Incorporated by reference to to the Current Report of the registrant on Form 8-K dated March 30, 1992, as filed on April 10, 1992). 11. Statement regarding computation of Net Income per Limited Partnership Unit: Net income per limited partnership unit is computed by dividing net income allocated to the limited partners by the number of limited partnership units outstanding. Per unit information has been computed based on 40,000 limited partnership units outstanding in 1995 and 1994.
(b) Reports on Form 8-K. There were no reports on Form 8-K filed during the quarter ended March 31, 1995. MCNEIL REAL ESTATE FUND XXIV, L.P. 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:
McNEIL REAL ESTATE FUND XXIV, L.P. By: McNeil Partners, L.P., General Partner By: McNeil Investors, Inc., General Partner May 15, 1995 By: /s/ Donald K. Reed - - - - - ------------------------------ ------------------------------------------- Date Donald K. Reed President and Chief Executive Officer May 15, 1995 By: /s/ Robert C. Irvine - - - - - ------------------------------ ------------------------------------------- Date Robert C. Irvine Chief Financial Officer of McNeil Investors, Inc. Principal Financial Officer May 15, 1995 By: /s/ Carol A. Fahs - - - - - ------------------------------ ------------------------------------------- Date Carol A. Fahs Chief Accounting Officer of McNeil Real Estate Management, Inc.
EX-27 2
5 12-MOS 3-MOS DEC-31-1994 DEC-31-1995 DEC-31-1994 MAR-31-1995 1,720,161 1,883,430 0 0 478,569 518,033 (77,044) (77,044) 0 0 0 0 36,312,702 36,368,256 (11,061,009) (11,397,444) 27,674,971 27,576,353 0 0 5,660,558 5,614,426 0 0 0 0 0 0 21,034,090 20,960,498 27,674,971 27,576,353 4,127,396 982,327 4,198,901 1,007,779 0 0 0 0 3,883,545 980,879 0 0 380,867 100,492 (65,511) (73,592) 0 0 (65,511) (73,592) 0 0 0 0 0 0 (65,511) (73,592) 0 0 0 0
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