-----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, QGUEg1QYKkh77co3e9a+R60uzWy7T8jlO1CyWc8YNwZJXmGTFHqqXgPqIHmQ3MrV Lh0wI+zbw2WMy4q+RBl8jw== 0000914317-97-000142.txt : 19970402 0000914317-97-000142.hdr.sgml : 19970402 ACCESSION NUMBER: 0000914317-97-000142 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970317 ITEM INFORMATION: Acquisition or disposition of assets ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19970401 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: VALUE PROPERTY TRUST CENTRAL INDEX KEY: 0000079259 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 231862664 STATE OF INCORPORATION: MD FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06613 FILM NUMBER: 97572518 BUSINESS ADDRESS: STREET 1: 120 ALBANY STREET STREET 2: 8TH FLOOR CITY: NEW BRUNSWICK STATE: NJ ZIP: 08901- BUSINESS PHONE: 9082963080 FORMER COMPANY: FORMER CONFORMED NAME: MORTGAGE & REALTY TRUST DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: PNB MORTGAGE & REALTY INVESTORS DATE OF NAME CHANGE: 19850102 8-K 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 -------------------------------- FORM 8-K CURRENT REPORT -------------------------------- PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): March 17, 1997 -------------- VALUE PROPERTY TRUST ----------------------------------- (Exact name of registrant as specified in its charter) Maryland 1-6613 23-1862664 - ---------------------------- ------------ ------------------- (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File Number) Identification No.) 120 Albany Street, 8th Floor New Brunswick, New Jersey 08901-2163 - ----------------------------------------------- ---------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (908) 296-3080 -------------- VALUE PROPERTY TRUST AND SUBSIDIARIES INDEX Page No. -------- Item 2. Acquisition or Disposition of Assets................... 2 Item 7. Financial Statements and Exhibits ..................... 2 Signatures ....................................... 3 Appendix A ............................................ F-1 - F-7 VALUE PROPERTY TRUST AND SUBSIDIARIES FORM 8-K ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS Value Property Trust (the "Trust") received net cash proceeds of $28.2 million from the sale of four real estate properties to unaffiliated third parties, which occurred between February 21, 1997 and March 17, 1997. The carrying value of these real estate properties was approximately $22.4 million. Three of the properties, located in Maine, Oregon and Washington, are outside of the geographic regions in which the Trust is focusing its ongoing operating activities. The fourth property, located in Pennsylvania, was divested based on a number of factors including the price offered, the Trust's evalutation of the property's potential for future appreciation and the current return to the Trust. The Trust continues to operate 26 properties in eight states. Two of the sold properties were encumbered under the terms of the indenture relating to the Floating Rate Notes (the "New Indenture"). The Trust used $4.3 million and $6.8 million of the net proceeds from the sale of the encumbered properties to prepay a portion of the Floating Rate Notes on March 3, 1997 and April 1, 1997, respectively, as required under the terms of the New Indenture. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (b) Pro Forma Financial Information The Pro Forma Balance Sheet as of December 31, 1996 and the Pro Forma Statement of Operations for the Three Months Ended December 31, 1996 and the Year Ended September 30, 1996, which are attached as Appendix A, hereto, have been prepared to reflect the sale of four real estate properties and the repayment of related debt. The pro-forma financial information is based on and should be read in conjunction with the historical financial statemtents and the notes thereto filed as part of the Trust's quarterly report on Form 10-Q for the quarter ended December 31, 1996 and the Trust's annual report on Form 10-K for the fiscal year ended September 30, 1996. The Pro Forma Balance Sheet was prepared as if the property sales and loan repayment had occurred on December 31, 1996. The Pro Forma Statements of Operations were prepared as if the property sales and loan repayment had occurred on October 1, 1995. The pro forma financial information is unaudited and not necessarily indicative of the results that would have actually occurred had the property sales and loan repayment been consummated at the beginning of fiscal 1997 or 1996 nor does it purport to represent the financial position and results of operations for future periods. -2- VALUE PROPERTY TRUST AND SUBSIDIARIES FORM 8-K 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. Value Property Trust /s/Robert T. English -------------------- Robert T. English Secretary, Treasurer and Chief Financial Officer (Principal Financial and Accounting Officer) DATE: April 1, 1997 -3- VALUE PROPERTY TRUST AND SUBSIDIARIES FORM 8-K APPENDIX A TO CURRENT REPORT ON FORM 8-K ITEMS 2 AND 7 Unaudited Financial Statements as of December 31, 1996 and September 30, 1996. VALUE PROPERTY TRUST AND SUBSIDIARIES FORM 8-K FORM 8-K -- Item 2 and 7 (b) INDEX OF UNAUDITED PRO FORMA FINANCIAL STATEMENTS Page No. -------- Pro Forma Balance Sheet as of December 31, 1996...................... F-2 - F-3 Pro Forma Statement of Operations for the Three Months Ended December 31, 1996 ................................ F-4 Pro Forma Statement of Operations for the Year Ended September 30, 1996 ...................................... F-5 Notes and Management's Assumptions to Unaudited Pro Forma Financial Statements................................. F-6 - F-7 F-1
VALUE PROPERTY TRUST AND SUBSIDIARIES FORM 8-K - -------------------------------------------------------------------------------------------------------------------------- PRO FORMA CONSOLIDATED BALANCE SHEETS (Unaudited) (In Thousands) - -------------------------------------------------------------------------------------------------------------------------- Historical Pro Forma December 31, Pro Forma Amount 1996 Adjustments (As Adjusted) ------------ ------------ ------------ ASSETS Assets Held for Sale: Investment in partnerships.............................. $ 10,417 $ (4,706) A $ 5,711 Real estate owned....................................... 36,181 (14,222) A 21,959 ------------ ------------ ------------ Total Assets Held for Sale........................ 46,598 (18,928) 27,670 ------------ ------------ ------------ Assets Held for Investment: Mortgage loans.......................................... 651 651 Investment in partnerships.............................. 13,510 (3,438) A 10,072 Real estate owned....................................... 63,325 63,325 ------------ ------------ ------------ Total Assets Held for Investment.................. 77,486 (3,438) 74,048 ------------ ------------ ------------ Total Invested Assets............................. 124,084 (22,366) 101,718 Cash and cash equivalents.................................. 34,978 17,007 A 51,985 Restricted cash............................................ 3,440 3,440 Interest receivable and other assets....................... 5,356 (338) A 5,018 ------------ ------------ ------------ Total Assets...................................... $ 167,858 $ (5,697) $ 162,161 ============ ============ ============ LIABILITIES Senior secured notes (due 1999)............................ $ 54,832 $ (11,162) A $ 43,670 Accounts payable and accrued expenses...................... 1,697 1,697 Interest payable........................................... 308 308 ------------ ------------ ------------ Total Liabilities................................. 56,837 (11,162) 45,675 ------------ ------------ ------------
F-2
VALUE PROPERTY TRUST AND SUBSIDIARIES FORM 8-K - -------------------------------------------------------------------------------------------------------------------------- PRO FORMA CONSOLIDATED BALANCE SHEETS (Unaudited)(continued) (In Thousands) - -------------------------------------------------------------------------------------------------------------------------- Historical Pro Forma December 31, Pro Forma Amount 1996 Adjustments (As Adjusted) ------------ ------------ ------------ SHAREHOLDERS' EQUITY Preferred shares, $1 par value: 3,500,000 shares authorized, none issued................ -- -- -- Common shares, $1 par value: 20,000,000 shares authorized, 11,226,310 shares issued and outstanding................................ 11,226 11,226 Additional paid-in capital................................. 88,848 88,848 Accumulated earnings....................................... 10,947 5,465 A 16,412 ------------ ------------ ------------ Total Shareholders' Equity........................ 111,021 5,465 116,486 ------------ ------------ ------------ Total Liabilities and Shareholders' Equity............................ $ 167,858 $ (5,697) $ 162,161 ============ ============ ============ See accompanying notes to the consolidated financial statements.
F-3
VALUE PROPERTY TRUST AND SUBSIDIARIES FORM 8-K - -------------------------------------------------------------------------------------------------------------------------- PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) (In Thousands Except Per Share Data) - -------------------------------------------------------------------------------------------------------------------------- Three Months Ended Pro Forma December 31, Pro Forma Amount 1996 Adjustments (As Adjusted) ------------- ------------- ------------- Revenue: Rental properties: Rental income....................................... $ 5,924 $ (1,089) B $ 4,835 Operating expense reimbursements.................... 845 (49) B 796 Interest and fee income on mortgage loans............... 21 21 Interest on short-term investments...................... 519 214 C 733 Other................................................... -- -- ------------- ------------- ------------- Total Revenue....................................... 7,309 (924) 6,385 ------------- ------------- ------------- Expenses: Interest................................................ 1,381 (229) D 1,152 Rental properties: Operating........................................... 2,484 (348) B 2,136 Depreciation and amortization....................... 529 (3) B 526 Other operating expenses................................ 736 736 ------------- ------------- ------------- Total Expenses...................................... 5,130 (580) 4,550 ------------- ------------- ------------- Income before gain on sale of real estate.................. 2,179 (344) 1,835 Gain on sale of real estate................................ 1,795 1,795 ------------- ------------- ------------- Net income................................................. $ 3,974 $ (344) $ 3,630 ============= ============= ============= Per share: Income before gain on sale of real estate.................. $ .19 $ (.03) $ .16 Gain on sale of real estate................................ .16 .16 ------------- ------------- ------------- Net income ................................................ $ .35 $ (.03) $ .32 ============= ============= ============= Weighted average number of common shares outstanding...................................... 11,226 11,226 11,226 ============= ============= ============= See accompanying notes to the consolidated financial statements.
F-4
VALUE PROPERTY TRUST AND SUBSIDIARIES FORM 8-K - -------------------------------------------------------------------------------------------------------------------------- PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (In Thousands Except Per Share Data) - -------------------------------------------------------------------------------------------------------------------------- For the Year Ended Pro Forma September 30, Pro Forma Amount 1996 Adjustments (As Adjusted) ------------- ------------- ------------- (Unaudited) (Unaudited) Revenue: Rental properties: Rental income....................................... $ 26,925 $ (4,312) E $ 22,613 Operating expense reimbursements.................... 3,557 (140) E 3,417 Interest and fee income on mortgage loans............... 2,853 2,853 Interest on short-term investments...................... 1,713 850 F 2,563 Other................................................... 18 18 ------------- ------------- ------------- Total Revenue....................................... 35,066 (3,602) 31,464 ------------- ------------- ------------- Expenses: Interest................................................ 10,489 (386) G 10,103 Rental properties: Operating........................................... 12,084 (1,525) E 10,559 Depreciation and amortization....................... 2,347 (67) E 2,280 Other operating expenses................................ 3,173 3,173 ------------- ------------- ------------- Total Expenses...................................... 28,093 (1,978) 26,115 ------------- ------------- ------------- Net income................................................. $ 6,973 $ (1,624) H $ 5,349 ============= ============= ============= Net income per share....................................... $ .62 $ (.14) $ .48 ============= ============= ============= Weighted average number of common shares outstanding...................................... 11,226 11,226 11,226 ============= ============= ============= See accompanying notes to the consolidated financial statements.
F-5 VALUE PROPERTY TRUST AND SUBSIDIARIES FORM 8-K NOTES AND MANAGEMENT'S ASSUMPTIONS TO THE UNAUDITED PRO FORMA FINANCIAL STATEMENTS DECEMBER 31, 1996 AND SEPTEMBER 30, 1996 NOTE 1 - BASIS OF PRESENTATION The accompanying Pro Forma Balance Sheet as of December 31, 1996 is presented as if the real estate property sales occurred on December 31, 1996. The accompanying Pro Forma Statements of Operations are presented as if the real estate property sales occurred on October 1, 1995. These pro forma financial statements should be read in conjunction with the historical financial statements and notes hereto as of December 31, 1996 and September 30, 1996 filed as part of the Trust's quarterly report on Form 10-Q for the quarter ended December 31, 1996 and the Trust's annual report on Form 10-K for the fiscal year ended September 30, 1996, respectively. In management's opinion, all adjustments necessary to reflect the effects of these real estate property sales by the Trust have been made. The unaudited pro forma financial statements are not necessarily indicative of the actual financial position as of December 31, 1996 or what the actual results of operations would have been assuming the real estate property sales had been consummated on October 1, 1995, nor do they represent the financial position and results of operations for future periods. NOTE 2 - ADJUSTMENTS TO THE PRO FORMA FINANCIAL STATEMENTS A) Reflects the net cash proceeds of $28.2 million received from the sale of four real estate properties with a carring value of $22.4 million. Reflects the use of $11.2 million of the net proceeds from the sale of two encumbered properties to prepay a portion of the Floating Rate Notes, as required under the terms of the New Indenture. B) Reflects the reversal of revenue and expense associated with the operations of the four sold properties for the three months ended December 31, 1996. C) Reflects the adjustment of investment income to reflect the increase in the average cash position of approximately $17.0 million at an average investment rate of 5.0% for the three months ended December 31, 1996. D) Reflects the reduction in interest expense related to the two sold encumbered properties. E) Reflects the reversal of revenue and expense associated with the operations of the four sold properties for the year ended September 30, 1996. F-6 VALUE PROPERTY TRUST AND SUBSIDIARIES FORM 8-K NOTES AND MANAGEMENT'S ASSUMPTIONS TO THE UNAUDITED PRO FORMA FINANCIAL STATEMENTS DECEMBER 31, 1996 AND SEPTEMBER 30, 1996 NOTE 2 - ADJUSTMENTS TO THE PRO FORMA FINANCIAL STATEMENTS (continued) F) Reflects the adjustment of investment income to reflect the increase in the average cash position of approximately $17.0 million at an average investment rate of 5.0% for the year ended September 30, 1996. G) Reflects the reduction in interest expense related to the two sold encumbered properties. H) In conjunction with the adoption of Fresh Start Reporting on September 30, 1995, all gains and losses for a period of one year after such adoption are applied against the carrying value of long lived assets held for investment. Therefore, as a result of the adoption of Fresh Start Reporting, the pro forma statement of operations does not report the gain on sale of $5.5 million in net income but rather applies the $5.5 million as a reduction of the carrying value of the remaining assets held for investment. F-7 -----END PRIVACY-ENHANCED MESSAGE-----