-----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, KmyArUPZ185j7nOmQJRgcty2fEGkCAzbTggBgkDrYR8nlzaK5DhHuTR4TSq8gvRH ibU5M+1A6Ypnrnw2+f3i+A== 0001047469-99-014838.txt : 19990415 0001047469-99-014838.hdr.sgml : 19990415 ACCESSION NUMBER: 0001047469-99-014838 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990228 FILED AS OF DATE: 19990414 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: 99593573 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 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 FEBRUARY 28, 1999 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 PART 1 - FINANCIAL INFORMATION ITEM 1. Financial Statement
- -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEETS AT FEBRUARY 28, AT NOVEMBER 30, 1999 1998 ASSETS Investments in real estate: Land $ - $ 3,780,687 Buildings and improvements - 22,419,500 -------------------------------------------------- - 26,200,187 Less accumulated depreciation - (11,507,294) -------------------------------------------------- - 14,692,893 Cash and cash equivalents 19,948,438 424,001 Restricted cash - 261,132 Other assets, net of accumulated amortization of $0 in 1999 and $164,087 in 1998 208,145 347,073 ----------------------------------------------------------------------------------------------------------------------------- TOTAL ASSETS $ 20,156,583 $ 15,725,099 ----------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------- LIABILITIES AND PARTNERS' CAPITAL Liabilities: Mortgage payable $ - $ 6,072,451 Distribution payable 19,404,215 - Accounts payable and accrued expenses 183,603 387,989 Due to general partner and affiliates - 16,038 Security deposits - 73,629 -------------------------------------------------- Total Liabilities 19,587,818 6,550,107 -------------------------------------------------- Partners' Capital: General Partner 11,662 182,795 Limited Partners (57,490 Units outstanding) 557,103 8,992,197 -------------------------------------------------- Total Partners' Capital 568,765 9,174,992 ----------------------------------------------------------------------------------------------------------------------------- TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 20,156,583 $ 15,725,099 ----------------------------------------------------------------------------------------------------------------------------- -----------------------------------------------------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED FEBRUARY 28, 1999 1998 - ------------------------------------------------------------------------------------------------------------------------------ INCOME Rental $ 614,349 $ 947,444 Interest and other 79,736 11,712 -------------------------------------------------- Total Income 694,085 959,156 - ------------------------------------------------------------------------------------------------------------------------------ EXPENSES Property operating 363,493 454,309 Depreciation and amortization 110,544 220,173 Interest 78,229 119,642 General and administrative 28,229 20,472 Write-off of assets 36,555 67,097 -------------------------------------------------- Total Expenses 617,050 881,693 - ------------------------------------------------------------------------------------------------------------------------------ Income from operations 77,035 77,463 Gain on sale of properties 11,103,411 - - ------------------------------------------------------------------------------------------------------------------------------ Income before extraordinary loss 11,180,446 77,463 Extraordinary loss from debt extinguishment (382,458) - - ------------------------------------------------------------------------------------------------------------------------------ NET INCOME $ 10,797,988 $ 77,463 ----------------------------------------------------------------------------------------------------------------------------- NET INCOME (LOSS) ALLOCATED: To the General Partner $ (169,793) $ 3,670 To the Limited Partners 10,967,781 73,793 - ------------------------------------------------------------------------------------------------------------------------------ NET INCOME $ 10,797,988 $ 77,463 ----------------------------------------------------------------------------------------------------------------------------- PER LIMITED PARTNERSHIP UNIT (57,490 UNITS OUTSTANDING) Income from operations $ 4.23 $ 1.28 Gain on sale of properties 193.14 - Extraordinary loss from debt extinguishment (6.59) - - ------------------------------------------------------------------------------------------------------------------------------ NET INCOME $ 190.78 $ 1.28 - ----------------------------------------------------------------------------------------------------------------------------- - -----------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL FOR THE THREE MONTHS ENDED FEBRUARY 28, 1999 GENERAL LIMITED PARTNER PARTNERS TOTAL - ----------------------------------------------------------------------------------------------------------------------------- BALANCE AT NOVEMBER 30, 1998 182,795 8,992,197 9,174,992 Net income (loss) (169,793) 10,967,781 10,797,988 Distributions ($337.50 per Unit) (1,340) (19,402,875) (19,404,215) - ----------------------------------------------------------------------------------------------------------------------------- BALANCE AT FEBRUARY 28, 1999 $ 11,662 $ 557,103 $ 568,765 - ----------------------------------------------------------------------------------------------------------------------------- - -----------------------------------------------------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. ------------------------------------------------------------------------------ ------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED FEBRUARY 28, 1999 1998 - ------------------------------------------------------------------------------------------------------------------------------ CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 10,797,988 $ 77,463 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 110,544 220,173 Write-off of assets 36,555 67,097 Gain on sale of properties (11,103,411) - Extraordinary loss from debt extinguishment 382,458 - Increase (decrease) in cash arising from changes in operating assets and liabilities: Fundings to restricted cash (40,516) (34,612) Release of restricted cash 301,648 - Other assets 67,458 (240,734) Accounts payable and accrued expenses (204,386) 79,682 Due to general partner and affiliates (16,038) 406 Security deposits (73,629) (2,843) ------------------------------------------------- Net cash provided by operating activities 258,671 166,632 - ------------------------------------------------------------------------------------------------------------------------------ CASH FLOWS FROM INVESTING ACTIVITIES: Net proceeds from sale of properties 25,764,800 - Additions to real estate (111,560) (189,887) ------------------------------------------------- Net cash provided by (used in) investing activities 25,653,240 (189,887) - ------------------------------------------------------------------------------------------------------------------------------ CASH FLOWS FROM FINANCING ACTIVITIES: Distributions - (359,019) Prepayment penalty (315,023) - Mortgage principal payments (6,072,451) (19,876) ------------------------------------------------- Net cash used in financing activities (6,387,474) (378,895) - ------------------------------------------------------------------------------------------------------------------------------ Net increase (decrease) in cash and cash equivalents 19,524,437 (402,150) Cash and cash equivalents, beginning of period 424,001 1,424,876 - ------------------------------------------------------------------------------------------------------------------------------ CASH AND CASH EQUIVALENTS, END OF PERIOD $ 19,948,438 $ 1,022,726 - ----------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------- SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for interest $ 78,229 $ 79,826 - ------------------------------------------------------------------------------------------------------------------------------ SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING ACTIVITIES: Write-off of buildings and improvements $ 75,413 $ (129,032) Write-off of accumulated depreciation $ (38,858) $ 61,935 - ------------------------------------------------------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. - ------------------------------------------------------------------------------ - ------------------------------------------------------------------------------ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS The unaudited interim consolidated financial statements should be read in conjunction with the Partnership's annual 1998 audited consolidated financial statements within Form 10-K. 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 February 28, 1999 and the results of operations and cash flows for the three months ended February 28, 1999 and 1998 and the consolidated statement of partners' capital for the three months ended February 28, 1999. Results of operations are not necessarily indicative of the results to be expected for the full year. The Partnership sold its remaining investments in real estate. The sale and liquidation plan was approved by the Unitholders through a consent solicitation statement as of January 15, 1999 and the sale of the properties was completed on January 29, 1999. For assets sold or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in net income for the period. Within 30 days of the completion of the sale of the properties, the Partnership declared a cash distribution representing substantially all of the net proceeds from sale and substantially all of the remaining assets of the Partnership less an amount for costs and contingencies associated with the sale and liquidation of the Partnership. No other significant events have occurred subsequent to fiscal year 1998, and no material contingencies exist, which would require disclosure in this interim report per Regulation S-X, Rule 10-01, Paragraph (a) (5). ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations LIQUIDITY AND CAPITAL RESOURCES On February 26, 1999, the Partnership declared a cash distribution in the amount of $19,402,875 to the Limited Partner Unitholders ($337.50 per Unit) and $1,340 to the General Partner, which amounts were equal to substantially all of the net proceeds from the sale (the "Sale") of the remaining Partnership's investments in real estate ("Properties"), together with other available cash of the Partnership less an amount for costs associated with the Sale and liquidation and other contingencies. Immediately following the distribution, the Partnership had a cash and cash equivalents balance of $544,223. The General Partner believes that the Partnership has sufficient cash to meet the obligations of the Partnership for any contingencies or costs associated with Sale and the final liquidation of the Partnership. As a result of the Sale of the remaining Properties, the Partnership's only source of revenue prior to final liquidation will be the interest generated on the remaining cash after the initial distribution. The remaining cash is invested in an unaffiliated highly liquid money market fund. At February 28, 1999, the Partnership had cash and cash equivalents of $19,948,438 compared with $424,001 at November 30, 1998. The increase in cash and cash equivalents is due to receipt of the proceeds from the Sale. Remaining cash available after all obligations have been satisfied, if any, will be distributed to the Unitholders. RESULTS OF OPERATIONS Partnership net income for the three months ended February 28, 1999 was $10,797,988 compared to $77,463 for the corresponding period in fiscal 1998. The increase for the three months ended February 28, 1999 is primarily attributable to the gain on the Sale of the Partnership's Properties. For the three months ended February 28, 1999 the Partnership generated operating income of $77,035 compared to $77,463 for the corresponding period in fiscal 1998. Rental income totaled $614,349 for the three months ended February 28, 1999 compared with $947,444 for the corresponding period in fiscal 1998. Partnership expenses for the three months ended February 28, 1999 totaled $617,050 compared with $881,693 for the corresponding period in fiscal 1998. The decrease for fiscal 1999 in operating income, rental income and all expense categories is primarily attributable to the Sale on January 29, 1999. YEAR 2000 Due to the consummation of the Sale in January 1999, the Partnership is no longer engaged in the operation of real properties or any other business. As a result of the foregoing, and in view of the General Partner's plan to complete the full liquidation of the Partnership prior to January 1, 2000, the Partnership has no exposure to Year 2000 issues. ITEM 3. Quantitative and Qualitative Disclosures About Market Risks Since the Partnership sold its remaining properties on January 29, 1999 and its mortgage indebtedness was repaid, the Partnership has no exposure to interest rate risk. In addition, the Partnership is expected to be liquidated during 1999. PART II - OTHER INFORMATION ITEMS 1-3. Not applicable ITEM 4. Submission of Matters to a Vote of Security Holders Pursuant to a Consent Solicitation Statement dated December 16, 1998, the Unitholders were asked to approve two proposals as follows: (i) the sale of all of the Partnership's remaining real estate investments to DOC Investors, L.L.C. (the "Sale"); and (ii) an amendment to the Partnership's partnership agreement to permit sales of Partnership properties to affiliates of the General Partner if the terms of the sale are approved by the Unitholders (the "Amendment"). By its terms, the consent solicitation was to terminate on January 15, 1999, unless such date was extended by the General Partner for an aggregate of up to an additional 40 days. Since both the Sale and the Amendment were approved by the requisite majority-in-interest of the Unitholders (i.e., at least 28,746 Units) as of January 15, 1999, the consent solicitation terminated on such date. Upon termination of the consent solicitation, the results of the consent solicitation were as follows: (i) With respect to the Sale - 35,705 Units "FOR;" 528 Units "AGAINST;" and 82 Units "ABSTAIN;" and (ii) with respect to the Amendment - 35,192 Units "FOR;" 929 Units "AGAINST;" and 194 Units "ABSTAIN." The foregoing results do not include any votes received after the termination of the consent solicitation. ITEM 5. Not applicable ITEM 6. Exhibits & Reports on Form 8-K (a) Exhibits 3.1 Amendment, dated January 18, 1999 to Partnership's Second Amended and Restated Certificate and Agreement of Limited Partnership (included as, and incorporated herein by reference to, Exhibit 4.1 to the Partnership's Report on Form 8-K filed on February 16, 1999). 10.1 Agreement for Purchase and Sale and Joint Escrow Instructions between Lakeview Village at Ponte Vedra Lakes Joint Venture and Doc Investors, L.L.C. dated January 26, 1999 with respect to Lakeview Village Apartments (included as, and incorporated herein by reference to, Exhibit 10.2 to the Partnership's Report on Form 8-K filed on February 16, 1999). February 16, 1999). 10.2 Agreement for Purchase and Sale and Joint Escrow Instructions between The Hamptons Joint Venture and Lend Lease Real Estate Investments, Inc. dated December 15, 1998, and amendment thereto, and assignment thereof, with respect to Hamptons at Quail Hollow Apartments (included as, and incorporated herein by reference to, Exhibit 10.1 to the Partnership's Report on Form 8-K filed on February 16, 1999). (b) Reports on Form 8-K On February 16, 1999, the Partnership filed a Form 8-K for the purpose of disclosing the consummation of the sale of all of its real property investments on January 29, 1999 to DOC Investors, L.L.C. No other reports on Form 8-K were filed during the quarter ended February 28, 1999. (27) Financial Data Schedule 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: April 14, 1999 BY:/s/ DANIEL J. EPSTEIN Daniel J. Epstein Director, President, and Principal Executive Officer Date: April 14, 1999 BY:/s/ ROBERT J. SVATOS Robert J. Svatos Vice President and Director EX-27 2 EXHIBIT 27
5 3-MOS NOV-30-1999 DEC-01-1998 FEB-28-1999 19,948,438 0 0 0 0 0 0 0 20,156,583 19,587,818 0 0 0 0 568,765 20,156,583 614,349 694,085 0 363,493 175,328 0 78,229 77,035 0 77,035 11,103,411 (382,458) 0 10,797,988 190.78 190.78
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