-----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, PogeK8AFQFrK5gjK3VfbeosrdaqyNLJ/zUN+chHhg4yEmXI+eSnkT30fGt+uvDJA gM2MHKbQfFvsoCiE6JH+kA== 0000889812-95-000422.txt : 19950814 0000889812-95-000422.hdr.sgml : 19950814 ACCESSION NUMBER: 0000889812-95-000422 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950811 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTURY PENSION INCOME FUND XXIII CENTRAL INDEX KEY: 0000764543 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 942963120 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 002-96389 FILM NUMBER: 95562055 BUSINESS ADDRESS: STREET 1: 5665 NORTHSIDE DR NW STE 370 CITY: ATLANTA STATE: GA ZIP: 30328 BUSINESS PHONE: 4049169090 MAIL ADDRESS: STREET 1: POST & HEYMANN STREET 2: 5665 NORTHSIDE DR NW CITY: ATLANTA STATE: GA ZIP: 30328 10-Q 1 QUARTERLY REPORT 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 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 0-14528 Century Pension Income Fund XXIII, A California Limited Partnership (Exact name of Registrant as specified in its charter) California 94-2963120 (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 5665 Northside Drive N.W., Ste. 370, Atlanta, Georgia 30328 (Address of principal executive office) (Zip Code) Registrant's telephone number, including area code (404) 916-9090 N/A Former name, former address and fiscal year, if changed since last report. Indicate by check mark whether 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_____ APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS: Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 12, 13, or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ______ No _____ APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date __________________. 1 of 16 CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995 A California Limited Partnership PART I - FINANCIAL INFORMATION Item 1. Financial Statements. Consolidated Balance Sheets June 30, December 31, 1995 1994 (Unaudited) (Audited) Assets Cash and cash equivalents $ 6,306,000 $ 5,202,000 Restricted cash 145,000 148,000 Other assets 1,234,000 1,419,000 Mortgage loans receivable, net 1,137,000 1,749,000 Real Estate: Real estate 95,997,000 93,913,000 In-substance foreclosure property -- 1,985,000 Accumulated depreciation (17,810,000) (16,529,000) Allowance for impairment of value (7,091,000) (7,091,000) ------------- ------------- Real estate, net 71,096,000 72,278,000 Deferred sales commissions, net 955,000 1,087,000 Deferred organization expenses, net 567,000 644,000 Deferred costs, net 805,000 773,000 ------------- ------------- Total assets $ 82,245,000 $ 83,300,000 ============= ============= Liabilities and Partners' Deficit Deferred income, accrued expenses and other liabilities $ 1,400,000 $ 1,236,000 Accrued interest - notes payable 645,000 638,000 Accrued interest - non-recourse promissory notes 1,048,000 1,048,000 Notes payable 16,956,000 16,947,000 Non-recourse Promissory Notes: Principal 41,939,000 41,939,000 Deferred interest payable 27,661,000 26,278,000 ------------- ------------- Total liabilities 89,649,000 88,086,000 ------------- ------------- Minority interest in consolidated joint ventures 7,441,000 7,681,000 ------------- ------------- Commitments and Contingencies Partners' Deficit: General partner (1,971,000) (1,903,000) Limited partners (95,789 units outstanding at June 30, 1995 and December 31, 1994) (12,874,000) (10,564,000) ------------- ------------- Total partners' deficit (14,845,000) (12,467,000) ------------- ------------- Total liabilities and partners' deficit $ 82,245,000 $ 83,300,000 ============= ============= See notes to consolidated financial statements. 2 of 16 CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995 A California Limited Partnership Consolidated Statements of Operations (Unaudited) For the Six Months Ended June 30, 1995 June 30, 1994 Revenues: Rental $ 5,684,000 $ 5,295,000 Interest income on mortgage loans 41,000 162,000 Interest and other income 657,000 99,000 ------------ ------------ Total revenues 6,382,000 5,556,000 ------------ ------------ Expenses: Interest to Promissory Note Holders 2,431,000 2,431,000 Amortization 209,000 209,000 Operating 2,267,000 2,483,000 Depreciation 1,281,000 1,325,000 Interest 827,000 815,000 General and administrative 413,000 419,000 Loss on satisfaction of mortgage loan receivable 978,000 -- ------------ ------------ Total expenses 8,406,000 7,682,000 ------------ ------------ Loss before minority interest in joint ventures' operations (2,024,000) (2,126,000) Minority interest in joint ventures' operations (333,000) (98,000) ------------ ------------ Net loss $(2,357,000) $(2,224,000) ============ ============ Net loss per individual investor unit $ (24) $ (23) ============ ============ See notes to consolidated financial statements. 3 of 16 CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995 A California Limited Partnership Consolidated Statements of Operations (Unaudited) For the Six Months Ended June 30, 1995 June 30, 1994 Revenues: Rental $ 2,756,000 $ 2,800,000 Interest income on mortgage loans 21,000 80,000 Interest and other income 591,000 74,000 ------------ ------------ Total revenues 3,368,000 2,954,000 ------------ ------------ Expenses: Interest to Promissory Note Holders 1,215,000 1,215,000 Amortization 104,000 104,000 Operating 1,207,000 1,272,000 Depreciation 652,000 663,000 Interest 419,000 418,000 General and administrative 157,000 190,000 ------------ ------------ Total expenses 3,754,000 3,862,000 ------------ ------------ Loss before minority interest in joint ventures' operations (386,000) (908,000) Minority interest in joint ventures' operations (237,000) (28,000) ------------ ------------ Net loss $ (623,000) $ (936,000) ============ ============ Net loss per individual investor unit $ (6) $ (10) ============ ============ See notes to consolidated financial statements. 4 of 16 CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995 A California Limited Partnership Consolidated Statements of Cash Flows (Unaudited) For the Six Months Ended June 30, 1995 June 30, 1994 Operating Activities: Net loss $(2,357,000) $(2,224,000) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 1,614,000 1,661,000 Minority interest in joint ventures' operations 333,000 98,000 Loss on satisfaction of notes receivable 978,000 -- Deferred interest added to note payable principal 6,000 15,000 Provision for doubtful receivables -- 31,000 Deferred interest on non-recourse promissory notes 1,383,000 1,383,000 Deferred costs paid (156,000) (110,000) Changes in operating assets and liabilities: Other assets 185,000 (50,000) Deferred income, accrued expenses and other liabilities 174,000 343,000 ------------ ------------ Net cash provided by operating activities 2,160,000 1,147,000 ------------ ------------ Investing Activities: Cost of real estate acquired through foreclosure (1,114,000) -- Additions to real estate (358,000) (422,000) Restricted cash 3,000 61,000 Proceeds from cash investments -- 3,357,000 Proceeds from satisfaction of mortgage loan receivable 1,007,000 -- ------------ ------------ Net cash (used in) provided by investing activities (462,000) 2,996,000 ------------ ------------ Financing Activities: Joint venture partner distributions (573,000) -- Cash distribution to general partner (21,000) (21,000) ------------ ------------ Cash (used in) financing activities (594,000) (21,000) ------------ ------------ Increase in Cash and Cash Equivalents 1,104,000 4,122,000 Cash and Cash Equivalents at Beginning of Period 5,202,000 923,000 ------------ ------------ Cash and Cash Equivalents at End of Period $ 6,306,000 $ 5,045,000 ============ ============ Supplemental Disclosure of Cash Flow Information: Interest paid in cash during the period - notes payable $ 820,000 $ 794,000 ============ ============ Interest paid in cash during the period - non-recourse promissory notes $ 1,048,000 $ 1,048,000 ============ ============ Supplemental Disclosure of Non-Cash Investing and Financing Activities: Deferred interest added to note payable principal $ 3,000 -- ============ ============ Mortgage loan receivable reclassified to real estate (Note 4) $ 612,000 -- ============ ============ See notes to consolidated financial statements. 5 of 16 CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995 A California Limited Partnership NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. General The accompanying consolidated financial statements, footnotes and discussions should be read in conjunction with the consolidated financial statements, related footnotes and discussions contained in the Partnership's Annual Report for the year ended December 31, 1994. Certain accounts have been reclassified in order to conform to the current period. The financial information contained herein is unaudited. In the opinion of management, however, all adjustments necessary for a fair presentation of such financial information have been included. All adjustments are of a normal recurring nature, except as described in Notes 4 and 5. The results of operations for the six and three months ended June 30, 1995 and 1994 are not necessarily indicative of the results to be expected for the full year. 2. Transactions with Related Parties (a) An affiliate of NPI, Inc. received reimbursement of administrative expenses amounting to $48,000 and $60,000 during the six months ended June 30, 1995 and 1994, respectively. These reimbursements are primarily included in general and administrative expenses. (b) An affiliate of NPI, Inc. is entitled to receive 5% of annual gross receipts from certain Partnership properties it manages. For the six months ended June 30, 1995 and 1994, affiliates of NPI, Inc. received $51,000 and $33,000, respectively, which are included in operating expenses. (c) During each of the six month periods ended June 30, 1995 and 1994, an affiliate of NPI, Inc. was paid a $16,000 and $10,000 fee ($11,000 and $7,000 allocated to the Partnership, respectively) relating to successful real estate tax appeals on the Partnership's Coral Palm Plaza, Alpha Business Center and Westpoint Business Center joint venture properties. These fees are included in operating expenses. (d) The general partner received cash distributions totaling $21,000, which is equal to 2 percent of interest paid to Promissory Note holders, during each of the six month periods ended June 30, 1995 and 1994. (e) An affiliate of the general partner is entitled to receive a partnership management fee in an amount equal to 10 percent of cash available for distribution before interest payments to the Promissory Note Holders. For each of the six month periods ended June 30, 1995 and 1994, MGP received $55,000. These fees are included in general and administrative expenses. 3. Restricted Cash Restricted cash at June 30, 1995 and 1994 represents cash maintained at Sunnymead Towne Center, which is restricted as to its use pursuant to a court approved reorganization plan and the modified note agreements. 6 of 16 CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995 A California Limited Partnership NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 4. Mortgage Loans Receivable The Partnership entered into various agreements with the borrowers on two of the Partnership's second mortgage loans receivable, which were cross collateralized and in default. The properties are located in Irvine ("Irvine") and Costa Mesa, California ("Costa Mesa"). The borrower on the Irvine property had terminated payments on the mortgage loan receivable in October 1994 and, in January 1995, a court appointed receiver was placed on the Irvine property. As a result, on April 20, 1995, the Partnership acquired the Irvine property through deed in lieu of foreclosure and satisfied the existing first mortgage encumbering the property in the principal amount (including expenses) of approximately $1,114,000. On May 31, 1995, the receiver on the Irvine property was dismissed. The Partnership has accrued $115,000 of net rental income due from the receiver for the five months ended May 31, 1995. The Partnership commenced operating the property on June 1, 1995. The mortgage loan receivable, net of the previously recorded provision for impairment of value of $1,250,000, has been reclassified as real estate at June 30, 1995. The mortgagor of the Costa Mesa property assumed $400,000 of the principal amount of the debt encumbering the Irvine property resulting in an aggregate outstanding principal balance of $1,137,000. The Partnership extended the maturity date of the loan on the Costa Mesa property to March 31, 2000. Monthly payments to the Partnership remain the same. Upon the sale of the Costa Mesa property, the Partnership will be entitled to contingent interest of 50% of the amount received in excess of the current debt. On June 20, 1995, the Partnership received a notice from the first mortgagee on 1726 M Street, indicating that they expect to foreclose on this property shortly. As a result, the Partnership will lose its second mortgage interest in this property. In 1992, the Partnership fully reserved for this contingency. 5. Loss on Satisfaction of Mortgage Loan Receivable on In-Substance Foreclosure Property On April 28, 1995, the Partnership received $1,007,000 in full satisfaction of its mortgage loan receivable on the Warren, Michigan property. The property had been classified as an in-substance foreclosure property. The Partnership accepted the discounted settlement because it determined that, based upon projected future operational cash flow of the property, and the cost of litigation, it appeared likely that a substantial portion of contractual obligations would not be collected. The Partnership recorded a $978,000 loss on satisfaction of a mortgage loan receivable at June 30, 1995. A $1,850,000 provision for doubtful mortgage loan and interest receivable had previously been recorded in 1992. 6. Other Income The Partnership accepted a lease buy-out of $800,000 in December 1994 from a significant tenant that had occupied 27,000 square feet at Coral Palm Plaza (and was received in 1995). During June 1995, management re-leased 20,000 square feet of the unoccupied space, on similar terms, and recognized a portion of the lease buy-out in the amount of $517,000. The remaining portion has been deferred and is currently being amortized as rental income over the remaining eight years of the former tenant's lease. Management is negotiating to re-lease the remaining 7,000 square feet. 7 of 16 CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995 A California Limited Partnership Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. This item should be read in conjunction with the Consolidated Financial Statements and other Items contained elsewhere in this Report. Liquidity and Capital Resources As of August 1, 1995, Registrant's real estate properties consist of one apartment complex located in Georgia, four business parks located in Florida, North Carolina, California and Texas and three shopping centers located in Kentucky, Georgia and California. Registrant also holds joint venture interests in three business parks located in Minnesota and a shopping center located in Florida. The properties are leased to tenants subject to leases with original lease terms ranging from six months to one year for residential properties and remaining lease terms of up to seventeen years for commercial properties. Registrant receives rental income from its properties and is responsible for operating expenses, administrative expenses, capital improvements and debt service payments. Registrant also holds two mortgage loans. As described in Item 1, Note 4, in April 1995, Registrant acquired the Irvine property by deed in lieu of foreclosure and satisfied the first mortgage encumbering this property, in the amount of approximately $1,114,000, including expenses. As described in Item 1, Note 5, on April 28, 1995, the loan encumbering Registrant's in-substance foreclosure property was satisfied at a discount. On June 20, 1995, the Partnership received a notice from the first mortgagee on 1726 M Street, indicating that they expect to foreclose on this property shortly. As a result, the Partnership will lose its second mortgage interest in this property. In 1992, the Partnership fully reserved for this contingency. The mortgagor of the Costa Mesa property assumed $400,000 of the debt encumbering the Irvine property. In addition, Registrant extended the loan on the Costa Mesa property to March 31, 2000 (see Item 1, Note 4). All of Registrant's properties, except Registrant's Valley Apartments, generated positive cash flow during the six months ended June 30, 1995. Registrant's Valley Apartments generated negative cash flow for the six months ended June 30, 1995, due to capital improvements (discussed below). Registrant uses working capital reserves from any undistributed cash flow from operations and proceeds from cash investments as its primary source of liquidity. Cash distributions to limited partners remain suspended while the Managing General Partner evaluates the capital needs of Registrant. Promissory Note Holders continue to receive the required minimum interest payments. Registrant accepted a lease buy-out of $800,000 in December 1994 from a significant tenant that had occupied 27,000 square feet at Coral Palm Plaza (and was received in 1995). During June 1995, management re-leased 20,000 square feet of the unoccupied space, on similar terms, and recognized a portion of the lease buy-out in the amount of $517,000. The remaining portion has been deferred and is currently being amortized as rental income over the remaining eight years of the former tenant's lease. Management is negotiating to re-lease the remaining 7,000 square feet. In May 1995, a significant tenant at Registrant's Interrich Plaza vacated. Management is currently attempting to re-lease the unoccupied space, which might require significant expenditures for tenant installations and leasing commissions. During the three months ended June 30, 1995, a construction project to replace the breezeways at Registrant's Valley Apartments was started and completed at a cost of approximately $260,000. Registrant has no other plans for material capital expenditures. 8 of 16 CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995 A California Limited Partnership Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. Liquidity and Capital Resources (Continued) The level of liquidity based on cash and cash equivalents experienced a $1,104,000 increase at June 30, 1995, as compared to December 31, 1994. Registrant's $2,160,000 of net cash provided by operating activities was partially offset by $462,000 of net cash used in investing activities, $573,000 of cash distributed to the joint venture partner (financing activities) and $21,000 of cash distributed to the general partner (financing activities). Cash used in investing activities consisted of $1,114,000 of cash paid to satisfy the first mortgage encumbering the Medtronics property, which Registrant acquired through deed in lieu of foreclosure, and $358,000 of cash used for improvements to real estate, primarily at Registrant's Valley Apartments. The cash used in investing activities was partially offset by a $3,000 decrease in restricted cash and $1,007,000 of cash received by Registrant in satisfaction, at a discount, of the mortgage loan encumbering Registrant's in-substance foreclosure property (investing activities). All other increases (decreases) in certain assets and liabilities are the result of the timing of receipt and payment of various operating activities. Working capital reserves are currently being invested in a money market account or in repurchase agreements secured by United States Treasury obligations. The Managing General Partner believes that, if market conditions remain relatively stable, cash flow from operations, when combined with working capital reserves, will be sufficient to fund required capital improvements, regular debt service payments and minimum interest payments on the Promissory Notes in 1995 and the foreseeable future. In the event that additional resources are required, the Managing General Partner will attempt to arrange further financing or refinancing. With respect to limited partners, at this time it appears that the investment objective of capital growth will not be attained and that investors will not receive a return of all their invested capital and any portions that are returned will come from cash flow. The extent to which invested capital is returned to investors is dependent upon the performance of Registrant's properties and the markets in which such properties are located and on the sales price of the properties. In this regard, it is anticipated at this time that some of the properties will continue to be held longer than originally expected. The ability to hold and operate these properties is dependent on Registrant's ability to obtain additional financing, refinancing or debt restructuring, as required. As to the Promissory Note Holders and assuming the notes are held to maturity, at this time it appears that all remaining principal and a portion of deferred interest will be returned. The ability of Registrant to make such payments of principal and interest is dependent upon the ultimate sales prices, timing of sales of the remaining properties, net proceeds received by Registrant from sales and refinancing and overall Partnership operations. Based on current projections, the Promissory Note Holders will not receive any payment of residual interest. 9 of 16 CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995 A California Limited Partnership Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. Real Estate Market The national real estate market has suffered from the effects of the real estate recession including, but not limited to, a downward trend in market values of existing properties. In addition, the bailout of the savings and loan associations and sales of foreclosed properties by auction reduced market values and caused a further restriction on the ability to obtain credit. As a result, Registrant's ability to refinance or sell its existing properties may be restricted. These factors caused a decline in market property values and serve to reduce market rental rates and/or sales prices. Management believes that the emergence of new institutional purchasers, including real estate investment trusts and insurance companies should create a more favorable market value for Registrant's properties in the future. Results of Operations Six Months Ended June 30, 1995 vs. June 30, 1994 Operating results, before minority interest in joint ventures' operations of $333,000, improved by $102,000 for the six months ended June 30, 1995 as compared to 1994, due to an increase in revenues of $826,000 which was partially offset by an increase in expenses of $724,000. The increase in expenses is due to the $978,000 loss on satisfaction of a mortgage loan receivable on Registrant's in substance foreclosure property, Century Center. Operating results, before minority interest in joint ventures' operations and excluding the Medtronics property (which was acquired through deed in lieu of foreclosure on April 20, 1995), declined by $1,000 due to an increase in expenses of $685,000 which was offset by an increase in revenues of $684,000. Rental revenues, before minority interest in joint ventures' operations and excluding the Medtronics property, increased by $247,000, for the six months ended June 30, 1995, as compared to 1994, primarily due to occupancy increases at Registrant's Highland Park Commerce Center and Center Stage properties, and at Registrant's Alpha and Westpoint Business Center joint venture properties. Occupancy declined at Registrant's Interrich Plaza property. The decline in occupancy at Coral Palm Plaza was the result of a major tenant's lease buy-out in December 1994, which was offset by amortization of the tenant's termination payment. Occupancy at Registrant's other properties remained relatively constant. In addition, rental rates increased at Registrant's Valley Apartments and Regency Centre properties. Interest and other income increased by $558,000 primarily due to the recognition of $517,000 of lease termination income at Registrant's Coral Palm Plaza joint venture property. Interest income also increased due to an increase in average working capital reserves available for investment and increased interest rates. Interest income on mortgage loans declined by $121,000 due to the termination of payment by the borrower on the Medtronics mortgage loan in October 1994. Registrant acquired the Medtronics property through deed in lieu of foreclosure in April 1995. 10 of 16 CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995 A California Limited Partnership Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. Results of Operations (Continued) Six Months Ended June 30, 1995 vs. June 30, 1994 (Continued) Expenses, before minority interest in joint ventures' operations and excluding the Medtronics property, increased for the six months ended June 30, 1995, as compared to 1994, due to the loss on satisfaction of the mortgage loan receivable of $978,000. Registrant experienced decreases in operating expenses of $233,000 and depreciation expense of $66,000 which were only slightly offset by an increase in interest expense of $12,000. Operating expenses declined primarily due to legal fees relating to Registrant's Sunnymead Towne Center and Regency Center properties during the 1994 period, which were only partially offset by increased repairs and maintenance expense at Registrant's Valley Apartments property. Depreciation expense declined due to the provision for impairment of value recorded on Registrant's Coral Palm Plaza joint venture property. In addition, general and administrative expenses declined by $6,000 due to lower reimbursed expenses for the six months ended June 30, 1995, as compared to 1994. All other expenses remained relatively constant. Three Months Ended June 30, 1995 vs. June 30, 1994 Operating results, before minority interest in joint ventures' operations of $237,000, improved by $522,000 for the three months ended June 30, 1995, as compared to 1994, due to an increase in revenues of $414,000 and a decrease in expenses of $108,000. Operating results, before minority interest in joint ventures' operations and excluding the Medtronics property, improved $419,000 due to an increase in revenues of $272,000 and a decrease in expenses of $147,000. Rental revenues, before minority interest in joint ventures' operations and excluding the Medtronics property, decreased by $186,000, for the three months ended June 30, 1995, as compared to 1994, due to occupancy decreases at Registrant's Commerce Plaza and Interrich Plaza properties and an adjustment of estimated escalation billbacks at Registrant's Regency Centre, Commerce Plaza, and Centre Stage properties in the prior year comparative period. Occupancy increased at Registrant's Centre Stage Shopping Center and at Registrant's Alpha and Westpoint Business Center joint venture properties. The decline in occupancy at Coral Palm Plaza was the result of a major tenant's lease buy-out in December 1994, which was offset by amortization of the tenant's termination payment. Occupancy at Registrant's other properties remained relatively constant. In addition, rental rates increased at Registrant's Valley Apartments and Regency Centre properties. Interest and other income increased by $517,000 due to the recognition of $517,000 of lease termination income at Registrant's Coral Palm joint venture property. Interest income remained constant as the increase in average working capital reserves available for investment and increased interest rates, were offset by an overaccrual of interest income in the prior year comparative period. Interest income on mortgage loans declined by $59,000 due the termination of payment by the borrower on the Medtronics mortgage loan in October 1994. Registrant acquired the Medtronics property through deed in lieu of foreclosure in April of 1995. 11 of 16 CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995 A California Limited Partnership Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. Results of Operations (Continued) Three Months Ended June 30, 1995 vs. June 30, 1994 (Continued) Expenses, before minority interest in joint ventures' operations and excluding the Medtronics property, decreased for the three months ended June 30, 1995, as compared to 1994, due to decreases in operating expenses of $82,000 and depreciation expense of $33,000, which were slightly offset by a $1,000 increase in interest expense. Operating expenses declined primarily due to legal fees relating to Registrant's Sunnymead Towne Center and Regency Center properties during the 1994 period, which were only partially offset by increased repairs and maintenance expense at Registrant's Valley Apartments property. Depreciation expense declined due to the provision for impairment of value recorded on Registrant's Coral Palm Plaza joint venture property. In addition, general and administrative expenses declined by $33,000 primarily due to lower reimbursed expenses during the three months ended June 30, 1995, as compared to 1994. All other expenses remained relatively constant. 12 of 16 CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995 A California Limited Partnership Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. Properties A description of the properties in which Registrant has an ownership interest during the period covered by this report, along with occupancy data, follows: CENTURY PENSION INCOME FUND XXIII, A California Limited Partnership OCCUPANCY SUMMARY
Average Occupancy Rate (%) ------------------------------- Six Months Three Months Ended Ended Date of June 30, June 30, Name and Location Purchase Type Size 1995 1994 1995 1994 - ---------------- -------- ---- ---- ---- ---- ---- ---- Commerce Plaza 03/86 Business 83,000 96 99 92 98 Tampa, Florida Park sq. ft. Regency Centre 05/86 Shopping 124,000 99 99 99 99 Lexington, Kentucky Center sq. ft. Highland Park Commerce Center - Phase II 09/86 Business 67,000 92 89 92 93 Charlotte, North Carolina Park sq. ft. Interrich Plaza (1) 04/88 Business 53,000 87 94 76 91 Richardson, Texas Park sq. ft. Centre Stage Shopping Center (2) 01/90 Shopping 96,000 97 94 98 93 Norcross, Georgia Center sq. ft. Sunnymead Towne Center (3) 03/91 Shopping 173,000 91 91 91 91 Moreno Valley, California Center sq. ft. Valley Apartments (4) 04/91 Apartments 268 units 96 96 96 95 Atlanta, Georgia Medtronics (5) 04/95 Business 35,000 Irvine, California Park sq. ft. 100 - 100 -
13 of 16 CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995 A California Limited Partnership Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. Properties (Continued)
Average Occupancy Rate (%) ------------------------ Six Months Three Months Ended Ended Date of June 30, June 30, Name and Location Purchase Type Size 1995 1994 1995 1994 - ----------------- -------- ---- ---- ---- ---- ---- ---- Coral Palm Plaza Joint Venture: Coral Palm Plaza 01/87 Shopping 135,000 67 85 67 87 Coral Springs, Florida Center sq. ft. Minneapolis Business Parks Joint Venture: Alpha Business Center 05/87 Business 172,000 95 86 95 87 Bloomington, Minnesota Park sq. ft. Plymouth Service Center 05/87 Business 74,000 100 97 100 100 Plymouth, Minnesota Park sq. ft. Westpoint Business Center 05/87 Business 161,000 91 73 91 72 Plymouth, Minnesota Park sq. ft.
(1) Property was acquired through foreclosure of a mortgage loan receivable in April 1988. (2) Property was acquired through deed in lieu of foreclosure of a mortgage loan receivable in January 1990. (3) Property was acquired through foreclosure of a mortgage loan receivable in March 1991. (4) Property was acquired through foreclosure of a mortgage loan receivable in April 1991. (5) Property was acquired through deed in lieu of foreclosure of a mortgage loan receivable in April 1995. 14 of 16 CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995 A California Limited Partnership PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K. No report on Form 8-K was required to be filed during the period. 15 of 16 CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995 A California Limited Partnership SIGNATURE 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. CENTURY PENSION INCOME FUND XXIII, A California Limited Partnership By: FOX PARTNERS V Its General Partner By: FOX CAPITAL MANAGEMENT CORPORATION A General Partner /S/ ARTHUR N. QUELER ------------------------------------------- Secretary/Treasurer and Director (Principal Financial Officer) 16 of 16 EX-27 2 FINANCIAL DATA SCHEDULE
5 The schedule contains summary financial information extracted from Century Pension Income Fund XXIII and is qualified in its entirety by reference to such financial statements. 1 6-MOS DEC-31-1995 JAN-01-1995 JUN-30-1995 6,451,000 0 1,137,000 0 0 0 95,997,000 (24,901,000) 82,245,000 0 86,556,000 0 0 0 (14,845,000) 82,245,000 0 5,684,000 0 4,735,000 0 0 3,258,000 (2,357,000) 0 (2,357,000) 0 0 0 (2,357,000) (24) (24) Cash includes restricted cash of $145,000. Depreciation includes an allowance for impairment of value of $7,091,000. Bonds include deferred interest payable of $27,661,000. Total costs includes a loss on satisfaction of mortgage loan receivable of $978,000.
-----END PRIVACY-ENHANCED MESSAGE-----