-----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, ANCe9RaBzDF8zNi3997KD6MkcWSNqaWjT31Rv8h+F0zBOzGNgYqHzGOIkzMCkzvr UGXGCc5WA1SeSd8+jFK+nQ== 0001047469-98-014985.txt : 19980415 0001047469-98-014985.hdr.sgml : 19980415 ACCESSION NUMBER: 0001047469-98-014985 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980228 FILED AS OF DATE: 19980414 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: HUTTON CONAM REALTY INVESTORS 5 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: 98593667 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 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 28,1998 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: 0-014341 CONAM REALTY INVESTORS 5 L.P. ----------------------------- formerly known as HUTTON/CONAM REALTY INVESTORS 5 ------------------------------- 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 FEBRUARY 28, AT NOVEMBER 30, 1998 1997 - ------------------------------------------------------------------------------------------- ASSETS Investments in real estate: Land $ 3,780,687 $ 3,780,687 Buildings and improvements 22,332,385 22,271,530 ---------------------------------- 26,113,072 26,052,217 Less accumulated depreciation (10,958,807) (10,808,639) ---------------------------------- 15,154,265 15,243,578 Cash and cash equivalents 1,022,726 1,424,876 Restricted cash 258,822 224,210 Other assets, net of accumulated amortization of $139,878 in 1998 and $131,808 in 1997 361,478 128,814 - ------------------------------------------------------------------------------------------- TOTAL ASSETS $ 16,797,291 $ 17,021,478 - ------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------- LIABILITIES AND PARTNERS' CAPITAL Liabilities: Mortgage payable 6,165,136 6,185,012 Distribution payable 351,980 359,019 Accounts payable and accrued expenses 468,630 388,948 Due to general partner and affiliates 16,217 15,811 Security deposits 86,605 89,448 --------------------------------- Total Liabilities 7,088,568 7,038,238 --------------------------------- Partners' Capital: General Partner 187,508 190,878 Limited Partners (57,490 Units outstanding) 9,521,215 9,792,362 --------------------------------- Total Partners' Capital 9,708,723 9,983,240 - ------------------------------------------------------------------------------------------ TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 16,797,291 $ 17,021,478 - ------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. CONAM REALTY INVESTORS 5 L.P. AND CONSOLIDATED VENTURES
CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED FEBRUARY 28, 1998 1997 - ------------------------------------------------------------------------------------------ INCOME Rental $ 947,444 $ 952,545 Interest and other 11,712 61,842 --------------------------------- Total Income 959,156 1,014,387 - ------------------------------------------------------------------------------------------ EXPENSES Property operating 454,309 525,504 Depreciation and amortization 220,173 218,901 Interest 119,642 121,866 General and administrative 20,472 40,101 Write-off of assets 67,097 - --------------------------------- Total Expenses 881,693 906,372 - ------------------------------------------------------------------------------------------ Income from operations 77,463 108,015 Gain on sale of property - 2,582,641 - ------------------------------------------------------------------------------------------ NET INCOME $ 77,463 $ 2,690,656 - ------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------ NET INCOME ALLOCATED: To the General Partner $ 3,670 $ 4,269 To the Limited Partners 73,793 2,686,387 - ------------------------------------------------------------------------------------------ $ 77,463 $ 2,690,656 - ------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------ PER LIMITED PARTNERSHIP UNIT (57,490 UNITS OUTSTANDING) Income from operations $ 1.28 $ 1.81 Gain on sale of property - 44.92 - ------------------------------------------------------------------------------------------ NET INCOME $ 1.28 $ 46.73 - ------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL FOR THE THREE MONTHS ENDED FEBRUARY 28, 1998
GENERAL LIMITED PARTNER PARTNERS TOTAL - ---------------------------------------------------------------------------------------------- BALANCE AT NOVEMBER 30, 1997 $ 190,878 $ 9,792,362 $ 9,983,240 Net income 3,670 73,793 77,463 Distributions ($6.00 per Unit) (7,040) (344,940) (351,980) - ---------------------------------------------------------------------------------------------- BALANCE AT FEBRUARY 28, 1998 $ 187,508 $ 9,521,215 $ 9,708,723 - ---------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------
SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS. CONAM REALTY INVESTORS 5 L.P. AND CONSOLIDATED VENTURES
- ---------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED FEBRUARY 28, 1998 1997 - ---------------------------------------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 77,463 $ 2,690,656 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 220,173 218,901 Write-off of assets 67,097 - Gain on sale of property - (2,582,641) Increase (decrease) in cash arising from changes in operating assets and liabilities: Fundings to restricted cash (34,612) (40,317) Other assets (240,734) 12,278 Accounts payable and accrued expenses 79,682 3,283 Due to general partners and affiliates 406 (4,423) Security deposits (2,843) (23,060) ------------------------------------- Net cash provided by operating activities 166,632 274,677 - ---------------------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES: Net proceeds from sale of property - 6,270,225 Additions to real estate (189,887) - ------------------------------------- Net cash provided by (used for) investing activities (189,887) 6,270,225 - ---------------------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES: Distributions (359,019) (6,591,404) Mortgage principal payments (19,876) (27,689) ------------------------------------- Net cash used for financing activities (378,895) (6,619,093) - ---------------------------------------------------------------------------------------------- Net decrease in cash and cash equivalents (402,150) (74,191) Cash and cash equivalents, beginning of period 1,424,876 2,121,544 - ---------------------------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 1,022,726 $ 2,047,353 - ---------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------- SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for interest $ 79,826 $ 121,866 - ---------------------------------------------------------------------------------------------- SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING ACTIVITIES: Write-off of buildings and improvements $ (129,032) $ - Write-off of accumulated depreciation $ 61,935 $ - - ---------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------
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 annual 1997 audited consolidated financial statements within Form 10-K. The unaudited interim consolidated financial statements include all normal and reoccurring adjustments which are, in the opinion of management, necessary to present a fair statement of financial position as of February 28, 1998 and the results of operations and cash flows for the three months ended February 28, 1998 and 1997 and the consolidated statement of partners' capital for the three months ended February 28, 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 February 28, 1998, the Partnership had cash and cash equivalents of $1,022,726 which were invested in unaffiliated money market funds, compared with $1,424,876 at November 30, 1997. The decrease reflects mortgage principal payments, additions to real estate, and cash distributions to Partners exceeding cash provided by operating activities during the first quarter of 1998. The Partnership's restricted cash balance totaled $258,822 at February 28, 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 recorded a receivable, which is included in other assets, in the first quarter for $224,000 for insurance proceeds resulting from fire damage to eight units at Lakeview Village. Repairs to the property are substantially completed and, except for a $5,000 deductible, the insurance proceeds will cover the cost of the restoration work. The General Partner declared a regular cash distribution of $6 per Unit for the quarter ended February 28, 1998 which is to be paid in April, 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 Partnership operations for the three months ended February 28,1998 generated net income of $77,463 compared with net income of $2,690,656 for the corresponding period in fiscal 1997. The decrease for the three month period is primarily attributable to the gain on the sale of Canterbury Park on December 10, 1996. Income from operations for the three months ended February 28, 1998 was $77,463 compared with $108,015 for the corresponding period in fiscal 1997. The decrease is primarily due to a decrease in interest and other income and an increase in write-off of assets partially offset by a decrease in property operating expenses. Rental income totaled $947,444 for the three months ended February 28,1998 compared with $952,545 for the corresponding period in fiscal 1997. The decrease is due to the net effect of the sale of Canterbury Park partially offset by an increase in rental income from Lakeview Village and The Hamptons at Quail Hollow. Interest and other income totaled $11,712 for the three months ended February 28,1998 compared with $61,842 for the corresponding period in fiscal 1997. The decrease for the three month period 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 months ended February 28,1998 totaled $454,309 compared with $525,504 for the corresponding period in fiscal 1997. The decrease is primarily attributable to a decrease in repairs and maintenance at Lakeview Village. During the first three 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 94% 94% Lakeview Village 93% 88% ------------------------------------------------
The increase in Lakeview Village is primarily attributable to increased marketing efforts. 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 On December 15, 1997 ConAm Realty Investors 5 L.P. filed a Form 8-K (amended on December 17, 1997 by Form 8-K/A) regarding its change of auditors from Coopers & Lybrand L.L.P. to KPMG Peat Marwick LLP. The response from Coopers & Lybrand L.L.P. indicated that there were no disagreements on any matters of accounting principles or practices, financial statement disclosure, or auditing scope procedure. On February 3, 1998 ConAm Realty Investors 5 L.P. filed a Form 8-K regarding a change in the general partner ownership and the name change from Hutton/ConAm Realty Investors 5 to ConAm Realty Investors 5 L.P. EX-27 2 EXHIBIT 27
5 3-MOS NOV-30-1998 NOV-30-1997 FEB-28-1998 1,281,548 0 0 0 0 0 26,113,072 10,958,807 16,797,291 923,432 6,165,136 0 0 0 9,708,723 16,797,291 947,444 959,156 0 454,309 307,742 0 119,642 77,463 0 77,463 0 0 0 77,463 0 0
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