0000762848-95-000006.txt : 19950815 0000762848-95-000006.hdr.sgml : 19950815 ACCESSION NUMBER: 0000762848-95-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950814 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BRAUVIN REAL ESTATE FUND LP 5 CENTRAL INDEX KEY: 0000762848 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 363432071 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-14481 FILM NUMBER: 95562427 BUSINESS ADDRESS: STREET 1: 150 S WACKER DR CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3124430922 MAIL ADDRESS: STREET 1: 150 S WACKER DR STREET 2: SUITE 3200 CITY: CHICAGO STATE: IL ZIP: 60606 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 quarterly period ended June 30, 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 0-14481 Brauvin Real Estate Fund L.P. 5 (Exact name of registrant as specified in its charter) Delaware 36-3432071 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 150 South Wacker Drive, Chicago, Illinois 60606 (Address of principal executive offices) (Zip Code) (312) 443-0922 (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 . BRAUVIN REAL ESTATE FUND L.P. 5 INDEX Page PART I Financial Information Item 1. Financial Statements 3 Consolidated Balance Sheets at June 30, 1995 and December 31, 1994 4 Consolidated Statements of Operations for the Six Months Ended June 30, 1995 and 1994 5 Consolidated Statements of Operations for the Three Months Ended June 30, 1995 and 1994 6 Consolidated Statement of Partners' Capital for the Period January 1, 1995 to June 30, 1995 7 Consolidated Statements of Cash Flows for the Six Months Ended June 30, 1995 and 1994 8 Notes to Consolidated Financial Statements 9 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. 11 PART II Other Information Item 1. Legal Proceedings 14 Item 2. Changes in Securities 14 Item 3. Defaults Upon Senior Securities 14 Item 4. Submissions of Matters to a Vote of Security Holders 14 Item 5. Other Information 14 Item 6. Exhibits and Reports on Form 8-K 14 SIGNATURES 15 PART I - FINANCIAL INFORMATION ITEM 1. Financial Statements Except for the December 31, 1994 Consolidated Balance Sheet, the following Consolidated Balance Sheet as of June 30, 1995, Consolidated Statements of Operations for the six and three months ended June 30, 1995 and 1994, Consolidated Statement of Partners' Capital for the period January 1, 1995 to June 30, 1995 and Consolidated Statements of Cash Flows for the six months ended June 30, 1995 and 1994 for Brauvin Real Estate Fund L.P. 5 (the "Partnership") are unaudited but reflect, in the opinion of the management, all adjustments necessary to present fairly the information required. All such adjustments are of a normal recurring nature. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Partnership's 1994 Annual Report on Form 10-K. BRAUVIN REAL ESTATE FUND L.P. 5 (a Delaware limited partnership) CONSOLIDATED BALANCE SHEETS June 30, 1995 December 31, 1994 (Unaudited) (Audited) ASSETS Cash and cash equivalents $ 182,947 $ 106,289 Tenant receivables (net of allowance of $6,156 and $3,095, respectively ) 51,455 93,422 Escrow and other deposits 61,986 83,199 Other assets 10,466 13,126 Investment in affiliated joint venture 671,326 712,179 Deposit with title company -- 2,929,581 978,180 3,937,796 Investment in real estate, at cost: Land 2,411,849 3,716,151 Buildings 10,018,095 15,341,631 12,429,944 19,057,782 Less: accumulated depreciation (2,648,409) (4,103,727) Total investment in real estate, net 9,781,535 14,954,055 Total Assets $10,759,715 $18,891,851 LIABILITIES AND PARTNERS' CAPITAL Liabilities Accounts payable and accrued expenses $ 109,524 $ 602,607 Due to affiliates 5,886 25,988 Security deposits 37,760 56,772 Note payable -- 2,929,581 Mortgages payable 6,345,275 11,427,743 Total Liabilities 6,498,445 15,042,691 Minority Interest in Sabal Palm 1,020,095 1,019,775 Minority Interest(deficit)in the Annex of Schaumburg -- (231,115) Partners' Capital General Partners (33,432) (35,239) Limited Partners (9,914.5 limited partnership units issued and outstanding) 3,274,607 3,095,739 Total Partners' Capital 3,241,175 3,060,500 Total Liabilities and Partners' Capital $10,759,715 $18,891,851 See notes to consolidated financial statements (unaudited). BRAUVIN REAL ESTATE FUND L.P. 5 (a Delaware limited partnership) CONSOLIDATED STATEMENTS OF OPERATIONS For the Six Months Ended June 30, 1995 and 1994 (UNAUDITED) 1995 1994 INCOME Rental $881,232 $952,895 Interest 4,477 2,106 Other, primarily expense reimbursements 185,029 349,604 Total income 1,070,738 1,304,605 EXPENSES Mortgage and other interest 319,206 578,518 Depreciation 184,974 224,626 Real estate taxes (250,185) 338,400 Repairs and maintenance 23,584 32,636 Other property operating 77,760 128,973 General and administrative 102,873 107,796 Provision for investment property impairment 2,649,046 -- Total expenses 3,107,258 1,410,949 Loss before affiliated joint venture participation, minority interests and extraordinary item (2,036,520) (106,344) Equity interest in affiliated joint venture's net loss (40,853) (38,328) Minority interest's share of Sabal Palm's net income (56,720) (44,398) Minority interest's share of Annex's net (income) loss (231,115) 83,196 Loss before extraordinary item (2,365,208) (105,874) Extraordinary gain on extinguishment of Annex debt 2,545,883 -- Net Income (Loss) $ 180,675 $ (105,874) Net Income (Loss) Per Limited Partnership Interest (9,914.5 Units): $18.04 $(10.57) See notes to consolidated financial statements (unaudited). BRAUVIN REAL ESTATE FUND L.P. 5 (a Delaware limited partnership) CONSOLIDATED STATEMENTS OF OPERATIONS For the Three Months Ended June 30, 1995 and 1994 (UNAUDITED) 1995 1994 INCOME Rental $ 357,150 $ 360,991 Interest 2,369 1,072 Other, primarily expense reimbursements 70,523 201,158 Total income 430,042 563,221 EXPENSES Mortgage and other interest 153,279 298,363 Depreciation 83,547 112,313 Real estate taxes (404,885) 169,200 Repairs and maintenance 20,659 2,104 Other property operating 5,070 59,424 General and administrative 50,459 46,244 Provision for investment property impairment 2,649,046 -- Total expenses 2,557,175 687,648 Loss before affiliated joint venture participation, minority interests and extraordinary item (2,127,133) (124,427) Equity interest in affiliated joint venture's net loss (18,599) (14,573) Minority interest's share of Sabal Palm's net income (4,511) (892) Minority interest's share of the Annex's net (income) loss (233,753) 59,159 Loss before extraordinary item (2,383,996) (80,733) Extraordinary gain on extinguishment of Annex debt 2,545,883 -- Net Income (Loss) $ 161,887 $ (80,733) Net Income (Loss) Per Limited Partnership Interest (9,914.5 Units): $16.16 $(8.06) See notes to consolidated financial statements (unaudited). BRAUVIN REAL ESTATE FUND L.P. 5 (a Delaware limited partnership) CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL For the Period January 1, 1995 to June 30, 1995 (UNAUDITED) General Limited Partners Partners Total BALANCE at January 1, 1995 $(35,239) $3,095,739 $3,060,500 Net income 1,807 178,868 180,675 BALANCE at June 30, 1995 $(33,432) $3,274,607 $3,241,175 See notes to consolidated financial statements (unaudited). BRAUVIN REAL ESTATE FUND L.P. 5 (a Delaware limited partnership) CONSOLIDATED STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 1995 and 1994 (UNAUDITED) 1995 1994 Cash Flows From Operating Activities: Net income (loss) $ 180,675 $ (105,874) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Provision for investment property impairment 2,649,046 -- Extraordinary gain on extinguishment of Annex debt (2,545,883) -- Equity interest in affiliated joint venture's net loss 40,853 38,328 Minority interest's share of Sabal Palm's net income 56,720 44,398 Minority interest's share of the Annex's net income (loss) 231,115 (83,196) Provision for doubtful accounts 7,226 (22,431) Depreciation 184,974 223,367 Amortization 2,390 1,259 Normalized rental revenue 1,130 10,613 Changes in operating assets and liabilities: Decrease (increase) in tenant receivables 33,611 (95,968) Decrease (increase) in other assets 270 (60,553) Decrease in escrow and other deposits 21,213 -- (Decrease) increase in accounts payable and accrued expenses (493,083) 61,664 (Decrease) increase in due to affiliates (20,102) 28,159 (Decrease) increase in tenant security deposits (19,012) 4,635 Net cash provided by operating activities 331,143 44,401 Cash Flows From Investing Activities: Capital expenditures (11,500) -- Cash contribution to joint venture -- (16,800) Cash distribution to minority partner-Sabal Palm (56,400) (76,845) Cash used in investing activities (67,900) (93,645) Cash Flows From Financing Activities: Repayment of mortgages (186,585) (57,034) Repayment of note payable (2,929,581) (22,205) Decrease in deposit with title company 2,929,581 22,205 Net cash used in financing activities (186,585) (57,034) Net increase (decrease) in cash and cash equivalents 76,658 (106,278) Cash and cash equivalents at beginning of period 106,289 140,230 Cash and cash equivalents at end of period $ 182,947 $ 33,952 See notes to consolidated financial statements (unaudited). BRAUVIN REAL ESTATE FUND L.P. 5 (a Delaware limited partnership) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (1) BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six month period ended June 30, 1995 are not necessarily indicative of the results that may be expected for the year ended December 31, 1995. For further information, refer to the consolidated financial statements and footnotes thereto included in the Annual Report on Form 10-K for the year ended December 31, 1994. (2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Reclassifications Certain amounts in the 1994 financial statements have been reclassified to conform to the 1995 presentation. This has not affected the previously reported results of operations. (3) MORTGAGES PAYABLE On November 22, 1994, the lender to Crown Point, NationsBank of Tennessee (the "Lender") exercised the right to call all amounts due as of March 1, 1995. On March 1, 1995, a Forbearance Agreement was executed between the Partnership and the Lender whereas the Lender has agreed to forbear pursuing remedies with respect to defaults through and including September 1, 1995 (the "Forbearance Period"). During the Forbearance Period the terms and conditions will remain unchanged. The General Partners are pursuing alternative financing. However, there is no assurance that the General Partners will be successful. If the General Partners are unsuccessful in their efforts to obtain financing, the Partnership would sustain a loss upon foreclosure as the carrying value of the property exceeds the carrying value of the debt. The financial statements do not reflect any adjustments that might result from the outcome of this uncertainty. The carrying value of Crown Point at June 30,1995, approximates $4,599,000, which exceeds the carrying value of the debt by approximately $1,378,000 at June 30, 1995. On August 23, 1994, the Joint Venture filed a voluntary petition for bankruptcy (Chapter 11) in the United States Bankruptcy Court in the Northern District of Illinois. On February 10, 1995, the Bankruptcy Court ordered the dismissal of the voluntary petition for bankruptcy effectively eliminating the protection of the property from its creditors. Also on February 10, 1995, AUSA Life Insurance Company ("AUSA") filed a motion for appointment of a receiver against the Joint Venture. On February 17, 1995 the motion was granted and an order was issued. The receiver had full power and authority to operate, manage and conserve the Joint Venture's property (the "Annex") pursuant to the order. On February 15, 1995, the Joint Venture received an amended notice of mortgage foreclosure from AUSA. The Joint Venture had until March 17, 1995 to file an answer to the amended notice. The Joint Venture did not answer on or before March 17, 1995. On April 3, 1995, a judgment of foreclosure and sale was entered into against the Joint Venture. A sheriff's sale of the Annex was held on May 10, 1995 and on May 15, 1995 title was transferred to AUSA. As a result of these transactions, the Joint Venture recorded a $2,649,000 provision for investment property impairment to reduce the Annex property to its estimated fair market value. In addition, the Joint Venture recorded an extraordinary gain on the extinguishment of debt in the amount of $2,546,000, which was the net amount of the $2,350,000 fair market value of the Annex property and the mortgage payable of $4,896,000. Additionally, the Joint Venture had a final closing of its accounting records which resulted in the reversal of accrued revenue and expenses. The major items reversed were rental income, $34,000; real estate taxes, $439,000; and property operating expenses, $64,000. Also, in connection with the foreclosure of the Annex property, AUSA repaid the $2,929,581 note payable held by John Hancock Mutual Life Insurance Company (the "Lender"). In 1986 Stewart Title Company (the "Title Company") assumed responsibility for making the debt payments on this note payable. In January 1994, when the note was extended and the interest rate modified, the Title Company and the Joint Venture agreed to equally share in the 2.5% interest savings until the August 1, 1995 maturity. This interest savings plus the monthly defeasance payments not received since January 1995 will be netted against payments made by the Title Company for real estate taxes on the Annex. The repayment of the note payable had no effect on the Joint Venture since it was recorded as a deposit to the Title Company and as a note payable to the Lender in the financial statements. (4) TRANSACTIONS WITH AFFILIATES Fees and other expenses paid to the General Partners or its affiliates for the six months ended June 30, 1995 and 1994, were as follows: 1995 1994 Management fees $53,525 $88,790 Reimbursable offIce expenses 51,226 50,452 Legal Fees 3,275 417 The Partnership believes the amounts paid to affiliates are representative of amounts which would have been paid to independent parties for similar services. The Partnership had made all payments to affiliates,except for $3,028 for legal services, as of June 30, 1995. ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources The Partnership intends to satisfy its short-term liquidity needs through cash reserves, cash flow from the properties and the refinancing of Crown Point. On November 22, 1994, the lender to Crown Point, NationsBank of Tennessee, (the "Lender") exercised the right to call all amounts due as of March 1, 1995. On March 1, 1995, a Forbearance Agreement was executed between the Partnership and the Lender whereas the Lender has agreed to forbear pursuing remedies with respect to defaults through and including September 1, 1995 (the "Forbearance Period"). During the Forbearance Period the terms and conditions will remain unchanged. The General Partners are pursuing alternative financing. However, there is no assurance that the General Partners will be successful. If the General Partners are unsuccessful in their efforts to obtain financing, the Partnership would sustain a loss upon foreclosure as the carrying value of the property exceeds the carrying value of the debt. On August 23, 1994, the Joint Venture filed a voluntary petition for bankruptcy (Chapter 11) in the United States Bankruptcy Court in the Northern District of Illinois. On February 10, 1995, the Bankruptcy Court ordered the dismissal of the voluntary petition for bankruptcy effectively eliminating the protection of the property from its creditors. Also on February 10, 1995, AUSA Life Insurance Company ("AUSA") filed a motion for appointment of a receiver against the Joint Venture. On February 17, 1995 the motion was granted and an order was issued. The receiver had full power and authority to operate, manage and conserve the Joint Venture's property (the "Annex") pursuant to the order. On February 15, 1995, the Joint Venture received an amended notice of mortgage foreclosure from AUSA. The Joint Venture had until March 17, 1995 to file an answer to the amended notice. The Joint Venture did not answer on or before March 17, 1995. On April 3, 1995, a judgment of foreclosure and sale was entered into against the Joint Venture. A sheriff's sale of the Annex was held on May 10, 1995 and on May 15, 1995 title was transferred to AUSA. As a result of these transactions, the Joint Venture recorded a $2,649,000 provision for investment property impairment to reduce the Annex property to its estimated fair market value. In addition, the Joint Venture recorded an extraordinary gain on the extinguishment of debt in the amount of $2,546,000, which was the net amount of the $2,350,000 fair market value of the Annex property and the mortgage payable of $4,896,000. Additionally,the Joint Venture had a final closing of its accounting records which resulted in the reversal of accrued revenue and expenses. The major items reversed were rental income, $34,000; real estate taxes, $439,000; and property operating expenses, $64,000. Also, in connection with the foreclosure of the Annex property, AUSA repaid the $2,929,581 note payable held by John Hancock Mutual Life Insurance Company (the "Lender"). In 1986 Stewart Title Company (the "Title Company") assumed responsibility for making the debt payments on this note payable. In January 1994, when the note was extended and the interest rate modified, the Title Company and the Joint Venture agreed to equally share in the 2.5% interest savings until the August 1, 1995 maturity. This interest savings plus the monthly defeasance payments not received since January 1995 will be netted against payments made by the Title Company for real estate taxes on the Annex. The repayment of the note payable had no effect on the Joint Venture since it was recorded as a deposit to the Title Company and as a note payable to the Lender in the financial statements. Long-term liquidity needs are expected to be satisfied through modification of the mortgages at more favorable interest rates and refinancing of the Sabal Palm mortgage when it matures on February 1, 1997. The occupancy level at Crown Point at June 30, 1995 was 95% and at December 31, 1994 was 95%. The Partnership is continuing to work to sustain the occupancy level of Crown Point. Crown Point operated at a positive cash flow for the six months ended June 30, 1995. Strawberry Fields continued to generate positive cash flow for the six months ended June 30, 1995. The occupancy level at Strawberry Fields at June 30, 1995 was 82% compared to 78% at December 31, 1994. At Sabal Palm, the Partnership and its joint venture partner are continuing to work to sustain the occupancy level, which stood at 99% at June 30, 1995 and 99% at December 31, 1994. Although the Sabal Palm retail market appears to be overbuilt, the property has continued to generate positive cash flow since its acquisition in 1986. The General Partners of the Partnership expect to distribute proceeds from operations, if any, and from the sale of real estate, to Limited Partners in a manner that is consistent with the investment objectives of the Partnership. Management of the Partnership believes that cash needs may arise from time to time which will have the effect of reducing distributions to Limited Partners to amounts less than would be available from refinancings or sale proceeds. These cash needs include, among other things, maintenance of working capital reserves in compliance with the Agreement as well as payments for major repairs, tenant improvements and leasing commissions in support of real estate operations. Results of Operations - Six Months Ended June 30, 1995 and 1994 (Amounts rounded to 000's) The Partnership generated net income of $181,000 for the six months ended June 30, 1995 as compared to a net loss of $106,000 for the six months ended June 30, 1994. The $287,000 increase in net income resulted primarily from the recording of the Partnership's share of the extraordinary gain on extinguishment of the Annex's debt and the final closing of the Joint Venture's accounting records. Total income for the six months ended June 30, 1995 was $1,071,000, as compared to $1,305,000 for the six months ended June 30, 1994, a decrease of $234,000. This decrease of $234,000 was primarily a result of decreases in the Annex's rental and other income of $94,000 and $113,000, respectively. The decreases in rental and other income at the Annex were also attributable to the comparing of the six months of income in 1994 to four and a half months of income in 1995, in addition to the final closing of the Joint Venture's accounting records. Total expenses for the six months ended June 30, 1995 were $3,107,000,as compared to $1,411,000 in 1994, an increase of $1,696,000. The $1,696,000 increase in total expenses primarily resulted from the provision for investment property impairment at the Annex of $2,649,000. This provision was offset by decreases in the Annex's mortgage and other interest, real estate taxes and operating expenses of $254,000, $573,000 and $62,000, respectively. These decreases were also attributable to the final closing of the Joint Venture's accounting records upon the foreclosure and the comparison of six months of expenses in 1994 to four and a half months of expense in 1995. Results of Operations - Three Months Ended June 30, 1995 and 1994 (Amounts rounded to 000's) The Partnership generated net income of $162,000 for the three months ended June 30, 1995 as compared to a net loss of $81,000 in 1994. The $243,000 increase in net income was primarily associated with the recording of the Partnership's share of the extraordinary gain on the extinguishment of debt on the Annex and the final closing of the Joint Venture's accounting records. Total income for the three months ended June 30, 1995 and 1994 was $430,000 and $563,000, respectively, a decrease of $133,000. This decrease of $133,000 was primarily a result of decreases at the Annex of $67,000 in rental income and $62,000 in other income. This decrease in rental and other income can primarily be attributed to the comparison of three months of Annex income in 1994 as opposed to one and a half months of income in 1995. Also contributing to the decrease in total income is the reversal of accrued income at the Annex as a result of the final closing of the Joint Venture's accounting records. Total expenses were $2,557,000 for the three months ended June 30, 1995 as compared to $688,000 for the same period in 1994. The increase in total expenses of $1,869,000 resulted primarily from the provision for investment property impairment of $2,649,000, which was recorded in conjunction with the Annex foreclosure. The increase in total expenses were due to the recording of the provision for property impairment at the Annex and were partially offset by decreases at the Annex in mortgage and other interest,real estate taxes and operating expenses of $142,000, $562,000 and $59,000,respectively. These decreases were the result of the final closing of the Joint Venture's accounting records upon the foreclosure of the Annex and the recording of three months of expenses in 1994 as opposed to one and a half months of expenses in 1995. 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. Exhibit 27. Financial Data Schedule The Partnership filed the following report on Form 8-K during the three months ended June 30, 1995: 1. On May 24, 1995, the Partnership filed Form 8-K dated May 10, 1995, which reported as Item 2, the disposition of Annex of Schaumburg as a result of a foreclosure sale. 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. BY: Brauvin Ventures, Inc. Corporate General Partner of Brauvin Real Estate Fund L.P. 5 BY: /s/ Jerome J. Brault Jerome J. Brault Chairman of the Board of Directors and President DATE: August 11, 1995 BY: /s/ Thomas J. Coorsh Thomas J. Coorsh Chief Financial Officer and Treasurer DATE: August 11, 1995 EX-27 2
5 6-MOS DEC-31-1995 JUN-30-1995 182,947 0 51,455 6,156 0 0 12,429,944 2,648,409 10,759,715 0 6,345,275 0 0 3,241,175 0 10,759,715 0 1,070,738 0 139,006 328,688 2,649,046 319,206 0 0 0 0 2,545,883 0 180,675 0 0 "SECURITIES" REPRESENTS INVESTMENT IN JOINT VENTURE "PP&E" REPRESENTS INVESTMENT IN REAL ESTATE [LAND AND BUILDING] "BONDS" REPRESENTS MORTGAGES PAYABLE "COMMON" REPRESENTS TOTAL PARTNERS CAPITAL "TOTAL REVENUES" REPRESENTS RENTAL, INTEREST, AND OTHER INCOME "TOTAL COSTS" REPRESENTS TOTAL EXPENSES LESS INTEREST EXPENSE AND PROVISION FOR INVESTMENT PROPERTY IMPAIRMENT "OTHER EXPENSES" REPRESENTS INTEREST IN JOINT VENTURES' NET INCOME/LOSS "LOSS PROVISION" REPRESENTS PROVISION FOR INVESTMENT PROPERTY IMPAIRMENT