-----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, dQNehczEMgGZrrSuNVPU9OVvN1CEplxgMqHrmZHTkHH/6tW/7h2bVcDzh/qqG7pg 6OMuVYRG/rrVysb1A6SPTA== 0000786622-95-000007.txt : 19950803 0000786622-95-000007.hdr.sgml : 19950803 ACCESSION NUMBER: 0000786622-95-000007 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950802 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: KRUPP INSURED PLUS LTD PARTNERSHIP CENTRAL INDEX KEY: 0000786622 STANDARD INDUSTRIAL CLASSIFICATION: ASSET-BACKED SECURITIES [6189] IRS NUMBER: 042915281 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-15815 FILM NUMBER: 95558385 BUSINESS ADDRESS: STREET 1: 470 ATLANTIC AVE STREET 2: C/O BERKSHIRE REALTY AFFILIATES CITY: BOSTON STATE: MA ZIP: 02210 BUSINESS PHONE: 6174232233 MAIL ADDRESS: STREET 1: 470 ATLANTIC AVE CITY: BOSTON STATE: MA ZIP: 02210 FORMER COMPANY: FORMER CONFORMED NAME: KRUPP NATIONAL INSURED MARTGAGE FUND LTD PARTNERSHIP DATE OF NAME CHANGE: 19860702 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESx 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 0-15815 Krupp Insured Plus Limited Partnership Massachusetts 04-2915281 (State or other jurisdiction of (IRS employer incorporation or organization) identification no.) 470 Atlantic Avenue, Boston, Massachusetts 02210 (Address of principal executive offices) (Zip Code) (617) 423-2233 (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 PART I. FINANCIAL INFORMATION Item 1. FINANCIAL STATEMENTS KRUPP INSURED PLUS LIMITED PARTNERSHIP BALANCE SHEETS ASSETS
June 30, December 31, 1995 1994 Participating Insured Mortgages ("PIMs") $59,581,068 $59,837,946 Mortgage-Backed Securities and insured mortgage ("MBS") (Note 2) 28,822,577 29,648,678 Total mortgage investments 88,403,645 89,486,624 Cash and cash equivalents 2,659,584 2,931,523 Interest receivable and other assets 878,196 983,130 Prepaid acquisition fees and expenses, net of accumulated amortization of $4,041,261 and $3,658,625, respectively 2,079,247 2,461,883 Prepaid participation servicing fees, net of accumulated amortization of $1,798,469 and $1,701,854, respectively 601,530 698,145 Total assets $94,622,202 $96,561,305 LIABILITIES AND PARTNERS' EQUITY Liabilities $ 10,543 $ 14,734 Partners' equity (deficit) (Note 3): Limited Partners (7,500,099 Units outstanding) 94,769,109 96,689,550 General Partners (157,450) (142,979) Total Partners' equity 94,611,659 96,546,571 Total liabilities and Partners' equity $94,622,202 $96,561,305
The accompanying notes are an integral part of the financial statements. KRUPP INSURED PLUS LIMITED PARTNERSHIP STATEMENTS OF INCOME
For the Three Months For the Six Months Ended June 30, Ended June 30, 1995 1994 1995 1994 Revenues: Interest income - PIMs $1,120,847 $1,113,151 $2,244,096 $2,331,994 Interest income - MBS 623,411 656,582 1,255,418 1,348,183 Other interest income 40,920 92,313 82,221 169,480 Total revenues 1,785,178 1,862,046 3,581,735 3,849,657 Expenses: Asset management fee to an affiliate 166,397 171,682 331,941 344,835 Expense reimbursements to affiliates 29,554 61,884 59,109 123,769 Amortization of prepaid expenses and fees 239,626 239,626 479,251 479,251 General and administrative 34,298 37,163 52,033 63,224 Total expenses 469,875 510,355 922,334 1,011,079 Net income $1,315,303 $1,351,691 $2,659,401 $2,838,578 Allocation of net income (Note 3): Average net income per Unit (7,499,999 Units outstanding) $ .17 $ .18 .34 $ .37 Corporate Limited Partner 17 18 34 37 General Partners $ 39,459 $ 40,550 $ 79,782 $ 85,157
The accompanying notes are an integral part of the financial statements. KRUPP INSURED PLUS LIMITED PARTNERSHIP STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 1995 1994 Operating activities: Net income $ 2,659,401 $ 2,838,578 Adjustments to reconcile net income to net cash provided by operating activities: Amortization of prepaid expenses and fees 479,251 479,251 Premium amortization MBS - 21,076 Changes in assets and liabilities: Decrease (increase) in interest receivable and other assets 104,934 (94,039) Increase (decrease) in liabilities (4,191) 3,280 Net cash provided by operating activities 3,239,395 3,248,146 Investing activities: Principal collections on PIMs 256,878 237,153 Principal collections on MBS 826,101 3,731,898 Net cash provided by investing activities 1,082,979 3,969,051 Financing activities: Quarterly distributions (4,594,313) (4,975,764) Special distributions - (7,950,106) Net cash used for financing activities (4,594,313) (12,925,870) Net decrease in cash and cash equivalents (271,939) (5,708,673) Cash and cash equivalents, beginning of period 2,931,523 8,775,797 Cash and cash equivalents, end of period $ 2,659,584 $ 3,067,124
The accompanying notes are an integral part of the financial statements. KRUPP INSURED PLUS LIMITED PARTNERSHIP NOTES TO FINANCIAL STATEMENTS 1. Accounting Policies Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted in this report on Form 10-Q pursuant to the Rules and Regulations of the Securities and Exchange Commission. However, in the opinion of the General Partners, The Krupp Corporation and The Krupp Company Limited Partnership-IV (collectively the "General Partners") of Krupp Insured Plus Limited Partnership (the "Partnership"), the disclosures contained in this report are adequate to make the information presented not misleading. See Notes to Financial Statements included in the Partnership's Form 10- K for the year ended December 31, 1994 for additional information relevant to significant accounting policies followed by the Partnership. In the opinion of the General Partners of the Partnership, the accompanying unaudited financial statements reflect all adjustments (consisting of only normal recurring accruals) necessary to present fairly the Partnership's financial position as of June 30, 1995, its results of operations for the three and six months ended June 30, 1995 and 1994 and its cash flows for the six months ended June 30, 1995 and 1994. The results of operations for the three and six months ended June 30, 1995 are not necessarily indicative of the results which may be expected for the full year. See Management's Discussion and Analysis of Financial Condition and Results of Operations included in this report. 2. MBS At June 30, 1995, the Partnership's MBS portfolio had a market value of approximately $29,457,000 with unrealized gains of approximately $634,000 and maturities from 2004 to 2033. 3. Changes in Partners' Equity A summary of changes in Partners' Equity for the six months ended June 30, 1995 is as follows:
Corporate Total Limited General Partners' Unitholders Partner Partners Equity Balance at December 31, 1994 $96,688,183 $ 1,367 $(142,979) $96,546,571 Net income 2,579,585 34 79,782 2,659,401 Quarterly distributions (4,500,000) (60) (94,253) (4,594,313) Balance at June 30, 1995 $94,767,768 $ 1,341 $(157,450) $94,611,659
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Liquidity and Capital Resources The most significant demands on the Partnership's liquidity are regular quarterly distributions paid to investors of approximately $2.3 million. Funds used for investor distributions come from interest received on the PIMs, MBS, cash and cash equivalents and the principal collections received on the PIMs and MBS. To the extent the Partnership funds a portion of the distribution from principal collections, the capital resources of the Partnership will decrease. As a result of this decrease, the total cash inflows to the Partnership will also decrease which may result in periodic adjustments to the quarterly distributions paid to investors. Assessment of Credit Risk The Partnership's investments in mortgages are guaranteed or insured by the Federal National Mortgage Association ("FNMA"), the Government National Mortgage Association ("GNMA"), the Federal Home Loan Mortgage Corporation ("FHLMC") and the Department of Housing and Urban Development ("HUD") and therefore the certainty of their cash flows and the risk of material loss of the amounts invested depends on the creditworthiness of these entities. FNMA is a federally chartered private corporation that guarantees obligations originated under its programs. FHLMC is a federally chartered corporation that guarantees obligations originated under its programs and is wholly-owned by the twelve Federal Home Loan Banks. These obligations are not guaranteed by the U.S. Government or the Federal Home Loan Bank Board. GNMA guarantees the full and timely payment of principal and basic interest on the securities it issues, which represents interest in pooled mortgages insured by HUD. Obligations insured by HUD, an agency of the U.S. Government, are backed by the full faith and credit of the U.S. Government. Distributable Cash Flow and Net Cash Proceeds From Capital Transactions Shown below is the calculation of Distributable Cash Flow and Net Cash Proceeds from Capital Transactions, as defined by Section 17 of the Partnership Agreement, and the source of cash distributions for the six months ended June 30, 1995 and the period from inception to June 30, 1995 (amounts in thousands, except per Unit amounts).
Six Months Ended Inception through June 30, 1995 June 30, 1995 Distributable Cash Flow: Income for tax purposes $ 3,071 $ 64,095 Items not requiring or (not providing) the use of operating funds: Amortization of prepaid expenses, fees and organiz- ation costs 68 4,695 Amortization of net MBS premiums - 284 Acquisition expenses paid from offering proceeds charged to operations - 1,098 Gain on sale of MBS - (114) Total Distributable Cash Flow ("DCF") $ 3,139 $ 70,058 Limited Partners Share of DCF $ 3,045 $ 67,956 Limited Partners Share of DCF per Unit $ .41 $ 9.06 General Partners Share of DCF $ 94 $ 2,102 Net Proceeds from Capital Transactions: Insurance claim proceeds and principal collections on PIMs $ 257 $ 46,140 Principal collections on MBS 826 37,828 Principal collections on PIMs and MBS reinvested in PIMs and MBS - (40,775) Gain on sale of MBS - 114 Total Net Proceeds from Capital Transactions $ 1,083 $ 43,307 Cash available for distribution (DCF plus Net Proceeds from Capital Transactions) $ 4,222 $113,365 Distributions: Limited Partners $ 4,500 (a) $110,337 (a) Limited Partners Average per Unit $ .60 (a) $ 14.71 (a)(b) General Partners $ 94 (a) $ 2,102 (a) Total Distributions $ 4,594 $112,439
(a) This includes an estimate of the August 1995 distribution. (b) Limited Partners average per Unit return of capital as of August 1995 is $5.65 [$14.71 - $9.06] Return of capital represents that portion of distributions which is not funded from DCF such as proceeds from the sale of assets and substantially all of the principal collections received from MBS and PIMs.Operations The following discussion relates to the operations of the Partnership during the three and six months ended June 30, 1995 and 1994:
(Rounded to $1,000) For the Three Months For the Six Months Ended June 30, Ended June 30, 1995 1994 1995 1994 Interest income on PIMs $1,121 $1,113 $2,244 $2,332 Interest income on MBS 622 668 1,255 1,369 Other interest income 41 92 82 169 Partnership expenses (230) (270) (442) (531) Distributable Cash Flow $1,554 $1,603 $3,139 $3,339
Distributable Cash Flow ( DCF ) for the second quarter and first half of 1995 decreased when compared to the second quarter and first half of 1994 as a result of lower average asset balances in 1995. The Partnership will continue to see a decrease in DCF because the portion of distributions funded with principal collections reduces the overall income generating assets held by the Partnership. KRUPP INSURED PLUS LIMITED PARTNERSHIP PART II - OTHER INFORMATION Item 1. Legal Proceedings Response: None Item 2. Changes in Securities Response: None Item 3. Defaults upon Senior Securities Response: None Item 4. Submission of Matters to a Vote of Security Holders Response: None Item 5. Other Information Response: None Item 6. Exhibits and Reports on Form 8-K Response: None 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. Krupp Insured Plus Limited Partnership (Registrant) BY:/s/Marianne Pritchard Marianne Pritchard Treasurer and Chief Accounting Officer of The Krupp Corporation, a General Partner of the Registrant. DATE: July 24, 1995 -9- EX-27 2
5 The schedule contains summary financial information extracted from the Balance Sheet and Statement of Income and is qualified in its entirety by reference to such Financial Statements 0000786622 KRUPP INSURED PLUS L.P. 6-MOS DEC-31-1995 JUN-30-1995 2,659,584 88,403,645 878,196 0 0 2,680,777 0 0 94,622,202 10,543 0 94,611,569 0 0 0 94,622,202 0 3,581,735 0 0 922,334 0 0 2,659,401 0 2,659,401 0 0 0 2,659,401 0 0 Includes the following investments: Participating Insured Mortgages ("PIMs") $59,581,068 & Mortgage-Backed Securities ("MBS") $28,822,577. Includes the following prepaid acquisition fees & expenses of $2,079,247 net of accumulated amortization of $4,041,261 and prepaid participating servicing of $601,530 net of accumulated amortization of $1,798,469. Represents total equity of general partners and limited partners of ($157,450) and $94,769,109. Represents interest income on investments in mortgages & cash. Includes $239,626 of amortization related to prepaid fees & expenses Net income allocated $39,459 to the General Partners & $1,275,844 to the Limited Partners for the 3 months ended June 30, 1995. Average net income per unit of Limited Partners interest is $.17 on 7,500,099 Units outstanding.
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