-----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, HbMbN17GddJsnNORsxa1B6HzVYCpXn3xAJ/LWqE+yyQV5DGGiYHruXbyQqYlI+yF igf+PIVRLt92cpScmjMKuA== 0000808420-96-000005.txt : 19960515 0000808420-96-000005.hdr.sgml : 19960515 ACCESSION NUMBER: 0000808420-96-000005 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960514 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ASSOCIATED PLANNERS REALTY INCOME FUND CENTRAL INDEX KEY: 0000808420 STANDARD INDUSTRIAL CLASSIFICATION: LESSORS OF REAL PROPERTY, NEC [6519] IRS NUMBER: 954120092 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 033-11013 FILM NUMBER: 96563284 BUSINESS ADDRESS: STREET 1: 5933 W CENTURY BLVD STREET 2: 9TH FLOOR CITY: LOS ANGELES STATE: CA ZIP: 90045-5454 BUSINESS PHONE: 3106700800 MAIL ADDRESS: STREET 1: 5933 W CENTURY BLVD STREET 2: 9TH FLOOR CITY: LOS ANGELES STATE: CA ZIP: 90045-5454 FORMER COMPANY: FORMER CONFORMED NAME: ASSOCIATED PLANNERS REALTY FUND II DATE OF NAME CHANGE: 19871006 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended MARCH 31, 1996 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 33-11013 ASSOCIATED PLANNERS REALTY INCOME FUND (Exact name of registrant as specified in its charter) CALIFORNIA 95-4120092 (State or other Jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 5933 W. CENTURY BLVD., SUITE 900 LOS ANGELES, CALIFORNIA 90045 (Address of principal executive offices) (Zip Code) (310) 670-0800 (Registrant's telephone number, including area code) (Former name, former address and former fiscal year, if changed since last report) 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 ITEM 1. FINANCIAL STATEMENTS In the opinion of the General Partner of Associated Planners Realty Income Fund (the "Partnership"), all adjustments necessary for a fair presentation of the Partnership's results for the three months ended March 31, 1996 and 1995, have been made in the following financial statements which are of normal recurring entries in nature. However, such financial statements are unaudited and are subject to any year-end adjustments that may be necessary. ASSOCIATED PLANNERS REALTY INCOME FUND (A CALIFORNIA LIMITED PARTNERSHIP) BALANCE SHEETS MARCH 31, 1996 (UNAUDITED) AND DECEMBER 31, 1995
MARCH 31, 1996 DECEMBER 31, 1995 ASSETS RENTAL REAL ESTATE, net of accumulated depreciation (Note 2) $4,048,292 $4,072,847 CASH AND CASH EQUIVALENTS 241,041 261,728 OTHER ASSETS 55,236 46,443 $4,344,569 $4,381,018 LIABILITY AND PARTNERS' EQUITY ACCRUED LIABILITIES $ 5,398 $ 23,496 SECURITY DEPOSITS & PREPAID RENTS 29,717 26,290 35,115 49,786 COMMITMENTS & CONTINGENCIES PARTNERS' EQUITY: Limited Partner: $1,000 stated value per unit; authorized 12,000 units; issued - 5,096 4,272,740 4,124,520 General Partners: 36,714 206,712 TOTAL PARTNERS' EQUITY 4,309,454 4,331,232 $4,344,569 $4,381,018
[FN] See accompanying notes to financial statements. ASSOCIATED PLANNERS REALTY INCOME FUND (A CALIFORNIA LIMITED PARTNERSHIP) STATEMENTS OF PARTNERS' EQUITY THREE MONTHS ENDED MARCH 31, 1996 (UNAUDITED)
LIMITED PARTNERS GENERAL TOTAL UNITS AMOUNT PARTNER BALANCE, DECEMBER 31, 1995 $4,331,232 5,096 $4,124,520 206,712 Net income 49,000 --- 41,890 7,110 Reallocation of balances prior --- --- 170,030 (170,030) to January 1, 1996 (Note 6) Distributions to general partner (7,078) --- --- (7,078) Distributions to limited partners (63,700) --- (63,700) --- BALANCE, MARCH 31, 1995 $4,309,454 5,096 $4,272,740 $ 36,714 THREE MONTHS ENDED MARCH 31, 1995 (UNAUDITED) LIMITED PARTNERS GENERAL TOTAL UNITS AMOUNT PARTNER BALANCE, DECEMBER 31, 1994 $4,380,915 5,096 $4,196,996 $183,919 Net income 20,715 --- 16,437 4,278 Distributions to limited partners (31,850) --- (31,850) --- BALANCE, MARCH 31, 1995 $4,369,780 5,096 $4,181,583 $188,197
[FN] See accompanying notes to financial statements. ASSOCIATED PLANNERS REALTY INCOME FUND (A CALIFORNIA LIMITED PARTNERSHIP) STATEMENTS OF INCOME THREE MONTHS ENDED MARCH 31, 1996 AND 1995 (UNAUDITED)
THREE MONTHS THREE MONTHS ENDED ENDED MARCH 31, 1996 MARCH 31, 1995 REVENUES: Rental $103,381 $71,338 Intere 2,906 2,601 106,287 73,939 COST AND EXPENSES: Operating 15,511 10,592 Property tax 3,690 4,290 Property management fees (Note 3 (c)) 4,398 3,202 General and administrative 9,133 15,258 Unrealized(gain)loss-government securities account --- (4,637) Depreciation and amortization 24,555 24,519 57,287 53,224 NET INCOME $49,000 $20,715 NET INCOME PER LIMITED PARTNERSHIP UNIT $8.22 $3.23
[FN] See accompanying notes to financial statements. ASSOCIATED PLANNERS REALITY INCOME FUND (A CALIFORNIA LIMITED PARTNERSHIP) STATEMENTS OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 1996 AND 1995 (UNAUDITED)
THREE MONTHS THREE MONTHS ENDED ENDED MARCH 31, 1996 MARCH 31, 1995 Cash flows from operating activities: Net Income $49,000 $20,715 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 24,555 24,519 Increase (decrease) from changes in: Other assets (8,792) (41,491) Accounts payable (18,098) 7,388 Security deposit and prepaid rents 3,426 5,445 Net cash provided by operating 50,091 16,576 activities Cash flows from investing activities: Additions to government securities --- (722) investment Additions to real estate --- (10,000) Net unrealized (gain) loss--government securities --- (4,637) Net cash used by investing activities --- (15,359) Cash flows from financing activities: Distributions to general partners (7,078) --- Distributions to limited partners (63,700) (31,850) Net cash used in financing activities (70,778) (31,850) Net (decrease) in cash and cash (20,687) (30,633) equivalents Cash and cash equivalents at beginning 261,728 85,804 of period CASH AND CASH EQUIVALENTS AT END OF $241,041 $55,171 PERIOD
[FN] See accompanying notes to financial statements. ASSOCIATED PLANNERS REALTY INCOME FUND (A CALIFORNIA LIMITED PARTNERSHIP) SUMMARY OF ACCOUNTING POLICIES BUSINESS Associated Planners Realty Income Fund (the "Partnership), a California limited partnership, was formed on December 23, 1986 under the Revised Limited Partnership Act of the State of California for the purpose of developing or acquiring, managing and operating unleveraged income producing real estate. The Partnership met its minimum funding of $1,200,000 on February 26, 1988 and terminated its offering on September 5, 1989. The Partnership was formed to acquire income-producing real property throughout the United States with emphasis on properties located in California and southwestern states. The Partnership purchases such properties on an all cash basis and intends to own and operate such properties for investment over an anticipated holding period of approximately five to ten years. BASIS OF PRESENTATION The financial statements do not give effect to any assets that the partners may have outside of their interest in the partnership, nor to any personal obligations, including income taxes, of the partners. RENTAL REAL ESTATE AND ESTATE AND DEPRECIATION Assets are stated at cost. Depreciation is computed using the straight-line method over estimated useful lives ranging from 31.5 to 40 years for financial reporting and income tax reporting purposes. In the event that facts and circumstances indicate that the cost of an asset may be impaired, an evaluation of recoverability would be performed. If an evaluation is required, the estimated future undiscounted cash flows associated with the asset would be compared to the carrying amount to determine if a write- down to market vale is required. LEASE COMMISSIONS Lease commissions which are paid to real estate brokers for locating tenants are capitalized and amortized over the life of the lease. RENTAL REVENUE Rental revenue is recognized when the amount is due and payable under the terms of a lease agreement. ASSOCIATED PLANNERS REALTY INCOME FUND (A CALIFORNIA LIMITED PARTNERSHIP) SUMMARY OF ACCOUNTING POLICIES (CONTINUED) INVESTMENTS During 1994, the Partnership changed its method of accounting for Investments. Investments which represent trading securities, are accounted for in accordance with SFAS No. 115. The difference between historical cost and market value are reported as unrealized gains or losses in the statement of income. The effect of this change in accounting policy is not material to the financial statements. STATEMENTS OF CASH FLOWS For purposes of the statements of cash flows, the Partnership considers cash in the bank and all highly-liquid investments purchased with original maturities of three months or less to be cash and cash equivalents. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. RECLASSIFICATIONS For comparative purposes, certain prior year amounts have been reclassified to conform to the current year presentation. ASSOCIATED PLANNERS REALTY INCOME FUND (A CALIFORNIA LIMITED PARTNERSHIP) NOTES TO FINANCIAL STATEMENTS THREE MONTHS ENDED MARCH 31, 1996 AND 1995 (UNAUDITED) AND YEAR ENDED DECEMBER 31, 1995 NOTE 1 - NATURE OF PARTNERSHIP BUSINESS Associated Planners Realty Income Fund, a California limited partnership (the "Fund"), was formed on December 23, 1986 under the Revised Limited Partnership Act of the State of California for the purpose of acquiring, managing, and operating income-producing real estate. The Partnership began accepting subscriptions in October 1987 and closed the offering on September 5, 1989. The Partnership began operations in March 1988. Under the terms of the partnership agreement, the General Partners (West Coast Realty Advisors, Inc. and W. Thomas Maudlin Jr.) are entitled to cash distributions from 10% to 15%. The General Partners are also entitled to net income (loss) allocations varying from 1% to 15% and 1% of depreciation and amortization in accordance with the partnership agreement. Further, the General Partners receive acquisition fees for locating and negotiating the purchase of rental real estate, management fees for operating the Partnership and a commission on the sale of the partnership properties. NOTE 2 - RENTAL REAL ESTATE The Partnership owns the following two rental real estate properties, one is wholly-owned and the second, a 90% undivided interest: Acquisition Location (Property Name) Date Purchased Cost Chino, California (Yorba Center) October 25, 1988 $ 1,851,147 San Marcos, California January 9, 1990 2,806,905 The major categories of rental real estate: March 31, 1996 December 31, 1995 Land $1,282,861 $1,282,861 Building and Improvements 3,416,326 3,416,326 4,699,187 4,699,187 Less accumulated depreciation 650,895 626,340 Net rental real estate 4,048,292 4,072,847 ASSOCIATED PLANNERS REALTY INCOME FUND (A CALIFORNIA LIMITED PARTNERSHIP) NOTES TO FINANCIAL STATEMENTS THREE MONTHS ENDED MARCH 31, 1996 AND 1995 (UNAUDITED) AND YEAR ENDED DECEMBER 31, 1995 (CONTINUED) NOTE 2 - RENTAL REAL ESTATE (CONTINUED) A significant portion of the Partnership's rental revenue was earned from tenants whose individual rents represented more than 10% of total rental revenue. Specifically: Two tenants accounted for 54% and 10% in 1996 Two tenants accounted for 12% and 53% in 1995 NOTE 3 - RELATED PARTY TRANSACTIONS (a) For Partnership management services rendered to the Partnership, the General Partner is entitled to receive 10% of all distributions of Cash from Operations. These amounts totaled $7,078 for the three months ended March 31, 1996 and $3,539 for the three months ended March 31, 1995. See Note 6. (b) For administrative services rendered to the Partnership, the General Partner, in accordance with the partnership agreement, was reimbursed $3,000 for the three months ended March 31, 1996 and 1995. (c) Property management fees incurred in accordance with the Partnership Agreement to West Coast Realty Management, Inc., an affiliate of the corporate General Partner, totaled $4,398 for the three months March 31, 1996, and $3,202 for the three months ended March 31, 1995. (d) During 1990, the Partnership acquired a 90% undivided interest in property located in San Marcos, California (Note 2). The remaining 10% interest is owned by Associated Planners Realty Growth Fund, an affiliate. ASSOCIATED PLANNERS REALTY INCOME FUND (A CALIFORNIA LIMITED PARTNERSHIP) NOTES TO FINANCIAL STATEMENTS THREE MONTHS ENDED MARCH 31, 1996 AND 1995 (UNAUDITED) AND YEAR ENDED DECEMBER 31, 1995 (CONTINUED) NOTE 4 - NET INCOME AND CASH DISTRIBUTIONS PER LIMITED PARTNERSHIP UNIT The Net Income per Limited Partnership Unit was computed in accordance with the partnership agreement on the basis of the weighted average number of outstanding Limited Partnership Units of 5,096 for 1996 and 1995. The Limited Partner cash distributions, computed in accordance with the Partnership Agreement, were as follows: Record Date Outstanding Amount Total Units Per Unit Distribution September 30, 1995 5,096 $12.500 $63,700 June 30, 1995 5,096 10.000 50,960 March 31, 1995 5,096 8.4088 42,851 December 31, 1994 5,096 6.2500 31,850 Total $189,361 September 30, 1994 5,096 $6.2500 $31,850 June 30, 1994 5,096 12.500 63,700 March 30, 1994 5,096 12.500 63,700 December 31, 1993 5,096 12.500 63,700 Total $ 222,950 Distributions were paid in the fiscal quarter following the record date. ASSOCIATED PLANNERS REALTY INCOME FUND (A CALIFORNIA LIMITED PARTNERSHIP) NOTES TO FINANCIAL STATEMENTS THREE MONTHS ENDED MARCH 31, 1996 AND 1995 (UNAUDITED) AND YEAR ENDED DECEMBER 31, 1995 (CONTINUED) NOTE 5 - NEW ACCOUNTING PRONOUNCEMENTS Statement of Financial Accounting Standards No. 121. "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed of" (SFAS No. 121) issued by the Financial Accounting Standards Board (FASB) is effective for financial statements for fiscal years beginning after December 15, 1995. The new standard establishes new guidelines regarding when impairment losses on long-lived assets, which include plant and equipment, and certain identifiable intangible assets, should be recognized and how impairment losses should be measured. This adoption had no effect on the statement of income for the quarter ended March 31, 1996 as there were no impairment amounts recorded during the period. NOTE 6 - REALLOCATION OF PARTNER BALANCES Per the provisions of Section 11.1 (V)(ii) of the Partnership Agreement, the General Partner determined that action was necessary to "cure the ambiguities" caused by the Agreement itself. The ambiguity involved the treatment of the partnership management fee, being paid to the General Partner, as an expense of the Partnership, when in fact, it was recently determined, that these fees should have been treated as a general partner withdrawl of capital. In order to properly reflect this inception to date correction, a transfer of $170,030 was made from the General Partner's capital account to the Limited Partners capital account during the quarter ended March 31, 1996. NOTE 7 - SUBSEQUENT EVENTS The Partnership distributed $66,248 ($13.00 per unit) on May 6, 1996 to Limited Partners as of March 31, 1996. ASSOCIATED PLANNERS REALTY INCOME FUND (A CALIFORNIA LIMITED PARTNERSHIP) ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS INTRODUCTION The Partnership began offering for sale limited partnership units on October 1987. On February 26, 1988, the Partnership reached its minimum offer level of $1,200,000. The Partnership sold units throughout the remainder of the year, and had raised $3,891,000 in gross proceeds or $3,483,788 net of syndication costs and sales commissions as of December 31, 1988. During 1989, the Partnership continued to raise funds through the sale of Units and had raised $5,106,000 in gross proceeds or $4,594,101 net of syndication costs and sales commissions as of September 5, 1989, the day the Partnership terminated its offering of limited partnership units. The Partnership was organized for the purpose of investing in, holding, and managing improved, leveraged income-producing property, such as residential property, office buildings, commercial buildings, industrial properties, and shopping centers. The Partnership intends to own and operate such properties for investment over an anticipated holding period of approximately five to ten years. The Partnership's principal investment objectives are to invest in rental real estate properties which will: (1) Preserve and protect the Partnership's invested capital; (2) Provide for cash distributions from operations; (3) Provide gains through potential appreciation; and (4) Generate Federal income tax deductions so that during the early years of property operations, a portion of cash distributions may be treated as a return of capital for tax purposes and, therefore, may not represent taxable income to the limited partners. ASSOCIATED PLANNERS REALTY INCOME FUND (A CALIFORNIA LIMITED PARTNERSHIP) ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) The ownership and operation of any income-producing real estate is subject to those risks inherent in all real estate investments, including national and local economic conditions, the supply and demand for similar types of properties, competitive marketing conditions, zoning changes, possible casualty losses, increases in real estate taxes, assessments, and operating expenses, as well as others. The Partnership is operated by West Coast Realty Advisors, Inc. ("WCRA") (the corporate General Partner) and Mr. W. Thomas Maudlin Jr. (an individual General Partner), collectively the "General Partner," subject to the terms of the Amended and Restated Agreement of Limited Partnership. The Partnership has no employees, and all administrative services are provided by WCRA, the corporate General Partner. LIQUIDITY AND CAPITAL RESOURCES On February 6, 1996, the Partnership made distributions to the limited partners totaling $63,700, ($12.50 per unit), of which approximately $14,700 constituted a return of capital to the unit holders of record at December 31, 1995. Distributions are determined by management based on cash flow and the liquidity position of the Partnership and anticipated occupancy of the properties. It is the intention of management to make quarterly distributions of cash, subject to maintenance of reasonable reserves. Management uses cash as its primary measure of a partnership's liquidity. The amount of cash that represents adequate liquidity for a real estate limited partnership depends on several factors. Among them are: 1. Relative risk of the partnership; 2. Condition of the partnership's properties; 3. Stage in the partnership's life cycle (e.g., money-raising, acquisition, operating or disposition phase); and 4. Distribution to partners ASSOCIATED PLANNERS REALTY INCOME FUND (A CALIFORNIA LIMITED PARTNERSHIP) ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS LIQUIDITY AND CAPITAL RESOURCES (CONTINUED) The Partnership has adequate liquidity based upon the above four points. The first point refers to the approximately 1% property reserve requirement of capital funds raised that the Partnership currently has; this relatively low reserve level is appropriate since all Partnership properties are acquired without the use of debt financing. This is a minimum guideline that is disclosed in the Partenrship's prospectus; the Partnership had more than enough funds to meet this requirement as of March 31, 1996. Related to the property reserve requirement is the second point - the condition of the Partnership's properties. Since the properties are in good condition, no unusual maintenance and repair expenditures are anticipated. The third point is relevant to the Partnership because after the January 1990 purchase of the San Marcos property, the Partnership had completed its acquisition phase, and entered the operating phase. The fourth point relates to partner distributions. The Partnership makes distributions from operations quarterly. Such distributions are subject to payment of Partnership expenses and reasonable reserves for expenses, maintenance, and replacements. During the quarter ended March 31, 1996 the Partnership paid the General Partner a partnership management fee of $7,078 and distributed $63,700 to the limited partners of which $14,700 constituted a return of capital. Partnership management fees were calculated and paid in accordance with the Partnership Agreement. The Tax Reform Acts of 1986 and 1987 and the Revenue Reconciliation Acts of 1990 and 1993 did not have a material impact on the Partnership's operations. The effects of the slowdown in the economy, inflation and changing prices have not had a material impact on the Partnership's revenues and income from operations.. During the years of the Partnership's existence, inflationary pressures in the U.S. economy have been minimal, and this has been consistent with the experience of the Partnership in operating rental real estate in California. The Partnership has several clauses in the leases with its properties' tenants that would help alleviate much of the negative impact of inflation. ASSOCIATED PLANNERS REALTY INCOME FUND (A CALIFORNIA LIMITED PARTNERSHIP) ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS NEW ACCOUNTING PRONOUNCEMENTS Statements of Financial Accounting Standards No.121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed of" (SFAS No. 121) issued by the Financial Accounting Standards Board (FASB) is effective for financial statements for fiscal years beginning after December 15, 1995. The new standard establishes new guidelines regarding when impairment losses on long-lived assets, which include plant and equipment, and certain identifiable intangible assets, should be recognized and how impairment losses should be measured. This adoption had no effect on the statement of income for the quarter ended March 31, 1996 as there were no impairment amounts recorded during the period. ASSOCIATED PLANNERS REALTY INCOME FUND (A CALIFORNIA LIMITED PARTNERSHIP) ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONT.) RESULTS OF OPERATIONS Operations for the quarter ended March 31, 1996 and 1995 reflect full quarters of rental activities for the Partnership's properties. However, the San Marcos property was not leased from January 8 to February 12, 1995. This was due to vacancy at the property between the time that the Professional Care Products (previous tenant) lease terminated and the No Fear (current tenant) lease began. In addition to the vacancy at the property, the lease rate that No Fear entered into was approximately 30% less than the rate that Professional Care Products was paying during its tenancy. The occupancy rate at the Yorba Center Shopping Center was at 100% as of March 31, 1996 (as compared to 90% at March 31, 1995), the drop in rental rates at the San Marcos property (discussed above), offset by increased occupancy was responsible for a 45% ($32,043) increase in rental revenue for the quarter ended March 31, 1996 as compared to the quarter ended March 31, 1995. Primarily due to the partial vacancy at the San Marcos property, operating expenses increased 46% ($4,919) as the result of less costs that the Partnership was able to pass on to tenants. However, the Partnership also experienced a 40.1% decrease in general and administrative costs ($6,125) due to lower insurance costs and lower legal & accounting expenses. The Partnership also experienced a 11.7% ($305) increase in the interest income due to larger cash reserve balances maintained during 1996 as compared to 1995. Overall, the Partnership generated $73,555 in income from operations before depreciation expense of $24,555 for the quarter ended March 31, 1996. This compares favorably to 1995 when income from operations totaled $45,234 before depreciation of $24,519 and gain on government securities of $4,637. Net income per limited partnership unit rose from $3.23 in 1995 to $8.22 in 1996. The number of limited partnership units outstanding in each quarter was 5,096. ASSOCIATED PLANNERS REALTY INCOME FUND (A CALIFORNIA LIMITED PARTNERSHIP) ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONT.) RESULTS OF OPERATIONS (CONT.) In 1994, the Partnership purposely started reducing the amount of distributions to investors in anticipation of lower rental revenues from the San Marcos property. Up until January 1995, it was not clear to the General Partner as to what rent, if any, could be realized on an ongoing basis from the San Marcos Property. Distributions to limited partners fell from a high of $47.50 per unit in 1993, to $43.75 in 1994, to $37.16 in 1995. With the placement of a tenant in the San Marcos Building (No Fear, Inc.) and the build-up of a track record of rent collections from the tenant, the general partner now feels it would be prudent to make cash distributions to limited partners so that a large portion of the large cash balance is gradually paid out (contingent upon maintenance of reasonable reserve levels). Therefore, distributions are expected to total between $40.00 and $45.00 per unit for 1996. During the quarter ended March 31, 1996, $50,091 in cash was provided by operating activities. This resulted from a net cash basis income of $73,555 from operations (net income plus depreciation expense) plus a $3,426 increase in security deposits and prepaid rents (primarily due to a new tenant security deposit receivable plus prepaid April 1996 rent received in March 1996). These amounts were offset by a $8,792 increase in other assets (primarily due to a increase in deferred rent receivable due to free tenant rent for January 1996), and a $18,098 decrease in accounts payable (primarily due to a decrease in the amount of trade payables). There were no investing activities for the quarter ended March 31, 1996. Cash used in financing activities totaled $70,778 due to $63,700 distributed to the limited partners during the quarter and $7,078 distributed to the general partner for partnership management fees. The area in which Yorba Center operates continues to experience a relatively high level of economic vitality, and the General Partner does not foresee significant challenges in keeping the center occupied by various small retailers and service businesses. The Partnership anticipates continuing to operate properties during 1996 for the purpose of generating the maximum amount of cash available for distribution to the limited partners, while maintaining a reasonable level of cash reserves. There are currently no plans to dispose of either of the two properties. ASSOCIATED PLANNERS REALTY INCOME FUND (A CALIFORNIA LIMITED PARTNERSHIP) PART II O T H E R I N F O R M A T I O N 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. EXHIBIT AND REPORTS ON FORM 8-K (a) Information required under this section has been included in the financial statements. (b) Reports on Form 8-K None ASSOCIATED PLANNERS REALTY INCOME FUND (A CALIFORNIA LIMITED PARTNERSHIP) S I G N A T U R E S 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. ASSOCIATED PLANNERS REALTY INCOME FUND A California Limited Partnership (Registrant) May 14, 1996 By: WEST COAST REALTY ADVISORS, INC. A California Corporation, A General Partner William T. Haas Director and Executive Vice President/Secretary May 14, 1996 Michael G. Clark Vice President/Treasurer EX-27 2
5 0000808420 ASSOCIATED PLANNERS REALTY INCOME FUND 3-MOS DEC-31-1996 MAR-31-1996 241,041 0 13,138 0 0 296,277 4,699,188 (650,895) 4,344,570 35,115 0 0 0 0 4,309,454 4,344,570 103,378 106,287 57,287 57,287 0 0 0 49,000 0 0 0 0 0 49,000 8.22 8.22
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