-----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, UKiYk8BTh+Rc3X7XZBgyURk3sogKKW8G7TRDyjD3cLsv3uwMR0CTI5ltXI9MEMqd R6j7VEvy0LWNLYMZePlt0g== 0001047469-98-037359.txt : 19981016 0001047469-98-037359.hdr.sgml : 19981016 ACCESSION NUMBER: 0001047469-98-037359 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980831 FILED AS OF DATE: 19981015 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CONAM REALTY INVESTORS 5 L P CENTRAL INDEX KEY: 0000761310 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 112712111 STATE OF INCORPORATION: CA FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-14341 FILM NUMBER: 98725964 BUSINESS ADDRESS: STREET 1: 1764 SAN DIEGO AVE STREET 2: ATTN: ROBERT J SVATOS CITY: SAN DIEGO STATE: CA ZIP: 92110-1906 BUSINESS PHONE: 2125263237 MAIL ADDRESS: STREET 1: 3 WORLD FINANCIAL CENTER STREET 2: 29TH FLOOR CITY: NEW YORK STATE: NY ZIP: 10285 FORMER COMPANY: FORMER CONFORMED NAME: HUTTON CONAM REALTY INVESTORS 5 DATE OF NAME CHANGE: 19920703 10-Q 1 FORM 10-Q United States Securities and Exchange Commission Washington, D.C. 20549 FORM 10-Q (MARK ONE) X Quarterly Report Pursuant to Section 13 or 15(d) of the Securities - --------- Exchange Act of 1934 FOR THE QUARTERLY PERIOD ENDED AUGUST 31, 1998 or - --------- Transition Report Pursuant to Section 13 of 15(d) of the Securities Exchange Act of 1934 For the transition period from ____ to ____ COMMISSION FILE NUMBER: 0-014341 CONAM REALTY INVESTORS 5 L.P. ----------------------------- EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER California 11-2712111 ---------- ---------- STATE OR OTHER JURISDICTION OF I.R.S. EMPLOYER IDENTIFICATION NO. INCORPORATION OR ORGANIZATION 1764 San Diego Avenue San Diego, CA 92110 Attn. Robert J. Svatos 92110-1906 - -------------------------------------------- ---------- ADDRESS OF PRINCIPAL EXECUTIVE OFFICES ZIP CODE (619) 297-6771 -------------- REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE 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 ------- ------- CONAM REALTY INVESTORS 5 L.P. AND CONSOLIDATED VENTURES - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEETS AT AUGUST 31, AT NOVEMBER 30, 1998 1997 - -------------------------------------------------------------------------------- ASSETS Investments in real estate: Land $ 3,780,687 $ 3,780,687 Buildings and improvements 22,414,640 22,271,530 ------------------------------ 26,195,327 26,052,217 Less accumulated depreciation (11,299,129) (10,808,639) ------------------------------ 14,896,198 15,243,578 Cash and cash equivalents 496,046 1,424,876 Restricted cash 363,408 224,210 Other assets, net of accumulated amortization of $156,017 in 1998 and $131,808 in 1997 315,268 128,814 - -------------------------------------------------------------------------------- TOTAL ASSETS $ 16,070,920 $ 17,021,478 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- LIABILITIES AND PARTNERS' CAPITAL Liabilities: Mortgage payable 6,103,944 6,185,012 Distribution payable 351,980 359,019 Accounts payable and accrued expenses 439,922 388,948 Due to general partner and affiliates 17,151 15,811 Security deposits 82,135 89,448 ------------------------------ Total Liabilities 6,995,132 7,038,238 ------------------------------ Partners' Capital: General Partner 179,360 190,878 Limited Partners (57,490 Units outstanding) 8,896,428 9,792,362 ------------------------------ Total Partners' Capital 9,075,788 9,983,240 - -------------------------------------------------------------------------------- TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 16,070,920 $ 17,021,478 - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. CONAM REALTY INVESTORS 5 L.P. AND CONSOLIDATED VENTURES - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED NINE MONTHS ENDED AUGUST 31, AUGUST 31, 1998 1997 1998 1997 - -------------------------------------------------------------------------------------------------------------- INCOME Rental $ 1,052,937 $ 930,876 $ 2,972,041 $ 2,767,817 Interest and other 7,136 28,981 30,601 112,664 ------------------------------------------------------------ Total Income 1,060,073 959,857 3,002,642 2,880,481 - -------------------------------------------------------------------------------------------------------------- EXPENSES Property operating 523,974 685,518 1,546,029 1,700,215 Depreciation and amortization 222,052 218,900 663,077 656,702 Interest 118,465 120,776 357,166 363,968 General and administrative 48,337 32,914 130,896 126,093 Write-off of assets 10,148 - 156,987 - ------------------------------------------------------------ Total Expenses 922,976 1,058,108 2,854,155 2,846,978 - -------------------------------------------------------------------------------------------------------------- Income (Loss) from operations 137,097 (98,251) 148,487 33,503 Gain on sale of property - - - 2,582,641 - -------------------------------------------------------------------------------------------------------------- NET INCOME (LOSS) $ 137,097 $ (98,251) $ 148,487 $ 2,616,144 - -------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------- NET INCOME (LOSS) ALLOCATED: To the General Partner $ 4,963 $ 143 $ 9,601 $ 6,995 To the Limited Partners 132,134 (98,394) 138,886 2,609,149 - -------------------------------------------------------------------------------------------------------------- NET INCOME (LOSS) $ 137,097 $ (98,251) $ 148,487 $ 2,616,144 - -------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------- PER LIMITED PARTNERSHIP UNIT (57,490 UNITS OUTSTANDING) Income (Loss) from operations $ 2.30 $ (1.71) $ 2.42 $ 0.46 Gain on sale of property - - - 44.92 - -------------------------------------------------------------------------------------------------------------- NET INCOME (LOSS) $ 2.30 $ (1.71) $ 2.42 $ 45.38 - -------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL FOR THE NINE MONTHS ENDED AUGUST 31,
GENERAL LIMITED PARTNER PARTNERS TOTAL - ----------------------------------------------------------------------------------------------- BALANCE AT NOVEMBER 30, 1997 $ 190,878 $ 9,792,362 $ 9,983,240 Net income 9,601 138,886 148,487 Distributions ($18.00 per Unit) (21,119) (1,034,820) (1,055,939) - ----------------------------------------------------------------------------------------------- BALANCE AT AUGUST 31, 1998 $179,360 $8,896,428 $9,075,788 - ----------------------------------------------------------------------------------------------- - -----------------------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. CONAM REALTY INVESTORS 5 L.P. AND CONSOLIDATED VENTURES - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED AUGUST 31, 1998 1997 - ------------------------------------------------------------------------------------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 148,487 $ 2,616,144 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 663,077 656,702 Write-off of assets 156,987 - Gain on sale of property - (2,582,641) Increase (decrease) in cash arising from changes in operating assets and liabilities: Fundings to restricted cash (139,198) (137,646) Other assets (210,663) 6,410 Accounts payable and accrued expenses 50,974 195,124 Due to general partner and affiliates 1,340 (3,581) Security deposits (7,313) (35,536) --------------------------- Net cash provided by operating activities 663,691 714,976 - ------------------------------------------------------------------------------------------ CASH FLOWS FROM INVESTING ACTIVITIES: Net proceeds from sale of property - 6,270,225 Additions to real estate (703,420) - Insurance recovery from fire damage 254,945 - --------------------------- Net cash provided by (used for) investing activities (448,475) 6,270,225 - ------------------------------------------------------------------------------------------ CASH FLOWS FROM FINANCING ACTIVITIES: Distributions (1,062,978) (7,295,362) Mortgage principal payments (81,068) (84,699) --------------------------- Net cash used for financing activities (1,144,046) (7,380,061) - ------------------------------------------------------------------------------------------ Net decrease in cash and cash equivalents (928,830) (394,860) Cash and cash equivalents, beginning of period 1,424,876 2,121,544 - ------------------------------------------------------------------------------------------ CASH AND CASH EQUIVALENTS, END OF PERIOD $ 496,046 $ 1,726,684 - ------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------ SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for interest $ 317,745 $ 363,968 - ------------------------------------------------------------------------------------------ SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING ACTIVITIES: Write-off of buildings and improvements $ (305,365) $ - Write-off of accumulated depreciation $ 148,378 $ - - ------------------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. CONAM REALTY INVESTORS 5 L.P. AND CONSOLIDATED VENTURES - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS The unaudited interim consolidated financial statements should be read in conjunction with the Partnership's 1997 annual report. The unaudited interim consolidated financial statements include all normal and recurring adjustments which are, in the opinion of management, necessary to present a fair statement of financial position as of August 31, 1998 and the results of operations for the three and nine months ended August 31, 1998 and 1997 and the consolidated statement of partners' capital and cash flows for the nine months ended August 31, 1998. Results of operations for the period are not necessarily indicative of the results to be expected for the full year. No significant events have occurred subsequent to fiscal year 1997, and no material contingencies exist, which would require disclosure in this interim report per Regulation S-X, Rule 10-01, Paragraph (a)(5). CONAM REALTY INVESTORS 5 L.P. AND CONSOLIDATED VENTURES PART I, ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS LIQUIDITY AND CAPITAL RESOURCES At August 31, 1998, the Partnership had cash and cash equivalents of $496,046 which were invested in money market funds, compared with $1,424,876 at November 30, 1997. The decrease reflects mortgage principal payments, additions to real estate, tax payments and cash distributions to Partners exceeding cash provided by operating activities during the first nine months of fiscal 1998. The increase in other assets is primarily attributable to amounts due from the state of North Carolina regarding an overpayment of non-resident withholdings and to an increase in a deposit required by the Internal Revenue Service. The Partnership expects sufficient cash to be generated from operations to meet its current operating expenses. The Partnership's restricted cash balance totaled $363,408 at August 31, 1998 compared to $224,210 at November 30, 1997. The increase is primarily attributable to contributions made to an escrow account for the purpose of funding real estate taxes as required under the terms of the Lakeview Village mortgage. The Partnership received insurance proceeds of $254,945 resulting from fire damage to eight units at Lakeview Village. The insurance proceeds were sufficient to cover the cost of the restoration work. The General Partner declared a regular cash distribution of $6.00 per Unit for the quarter ended August 31, 1998 which is to be paid in October, 1998. The General Partner will determine the amount of future quarterly distributions based on the Partnership's available cash flow and future cash needs. RESULTS OF OPERATIONS The Partnership generated net income of $137,097 and $148,487, for the three and nine months ended August 31,1998 respectively. This compares with a net loss of ($98,251) and net income of $2,616,144 for the corresponding periods in fiscal 1997. The decrease for the nine-month period is primarily attributable to the gain on the sale of Canterbury Park on December 10, 1996. Income from operations for the three and nine months ended August 31, 1998 was $137,097 and $148,487, respectively, compared with the (loss) income from operations of ($98,251) and $33,503, respectively, for the corresponding period in fiscal 1997. The increase for the three and nine-month periods is primarily due to an increase in rental income and a decrease in property operating expenses, somewhat offset by an increase in write-off of assets as they are replaced. Rental income totaled $1,052,937 and $2,972,041, respectively, for the three and nine months ended August 31,1998 compared with $930,876 and $2,767,817, respectively, for the corresponding periods in fiscal 1997. The increase is due to stable occupancy with increased base rents at The Hamptons at Quail Hollow and increased occupancy at Lakeview Village. Interest and other income totaled $7,136 and $30,601, respectively, for the three and nine months ended August 31,1998 compared with $28,981 and $112,664, respectively, for the corresponding period in fiscal 1997. The decrease for the three and nine-month periods is primarily due to a decrease in the Partnership's average cash balance due to distributions resulting from the sale of Canterbury Park. Property operating expenses for the three and nine months ended August 31,1998 totaled $523,974 and $1,546,029, respectively, compared with $685,518 and $1,700,215, respectively, for the corresponding periods in fiscal 1997. The decrease for the three and nine-month periods is primarily attributable to decreased repairs and maintenance at Lakeview Village and The Hamptons at Quail Hollow and by the sale of Canterbury Park. During the first nine months of fiscal 1998 and 1997, average occupancy levels at the Partnership's properties were as follows:
PROPERTY 1998 1997 ------------------------------------------------- The Hamptons at Quail Hollow 96% 96% Lakeview Village 94% 89% -------------------------------------------------
The occupancy at The Hamptons at Quail Hollow has remained constant in a highly competitive environment. The increase in occupancy at Lakeview Village is primarily attributable to increased marketing efforts and continued upgrading of units. CONAM REALTY INVESTORS 5 L.P. AND CONSOLIDATED VENTURES OTHER INFORMATION PART II Not applicable ITEMS 1-5 Exhibits ITEMS 6 (a) Exhibits (27) Financial Data Schedule (b) Reports on Form 8-K - No reports on Form 8-K were filed during the quarter ended August 31, 1998. 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 hereunto duly authorized. CONAM PROPERTY SERVICES IV, LTD. General Partner of ConAm Realty Investors 5 L.P. BY: CONTINENTAL AMERICAN DEVELOPMENT, INC. GENERAL PARTNER Date: October 13, 1998 BY:/s/ DANIEL J. EPSTEIN --------------------- Daniel J. Epstein Director, President, and Principal Executive Officer Date: October 13, 1998 BY:/s/ ROBERT J. SVATOS -------------------- Robert J. Svatos Vice President and Director EX-27 2 EXHIBIT 27
5 9-MOS NOV-30-1998 DEC-01-1997 AUG-31-1998 859,454 0 0 0 0 0 26,195,327 11,299,129 16,070,970 891,188 6,103,944 0 0 0 9,075,788 16,070,920 2,972,041 3,002,642 0 1,546,029 950,960 0 357,166 148,487 0 148,487 0 0 0 148,487 2.42 2.42
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