-----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, VnzbSLpQIbhvGyDf/VF8aFAAIXiwSpMcn1Qtsnjru5Y0L8/UDEbqPRR1/0iSVLPD xoUtnLZOdTNGdyoZPYFqHQ== 0000912057-95-011450.txt : 19951222 0000912057-95-011450.hdr.sgml : 19951222 ACCESSION NUMBER: 0000912057-95-011450 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19951221 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: REAL ESTATE INVESTMENT TRUST OF CALIFORNIA CENTRAL INDEX KEY: 0000082373 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 952565432 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-09639 FILM NUMBER: 95603562 BUSINESS ADDRESS: STREET 1: 12011 SAN VICENTE BLVD STE 707 CITY: LOS ANGELES STATE: CA ZIP: 90049 BUSINESS PHONE: 3104767793 MAIL ADDRESS: STREET 1: 12011 SAN VICENTE BLVD STE 707 CITY: LOS ANGELES STATE: CA ZIP: 90049 10-Q/A 1 FORM 10-Q/A SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________ FORM 10-Q/A AMENDMENT NO. 1 TO: X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended MARCH 31, 1995 ___ 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 1-9639 REAL ESTATE INVESTMENT TRUST OF CALIFORNIA (Exact name of registrant as specified in its charter) CALIFORNIA 95-2565432 (State or other jurisdiction of (I.R.S. Employer I.D. Number) incorporation or organization) 12011 SAN VICENTE BLVD., SUITE 707 LOS ANGELES, CALIFORNIA 90049 (Address of principal executive offices) Zip Code REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE (310) 476-7793 NOT APPLICABLE 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 ___. Shares of Beneficial Interest outstanding as of March 31, 1995 - 9,324,317 REAL ESTATE INVESTMENT TRUST OF CALIFORNIA PART I - FINANCIAL INFORMATION Item 1: Consolidated Balance Sheets (Unaudited) (Note 1)
Mar. 31, Dec. 31, 1995 1994 -------------------- ($ in thousands) ASSETS Investments in Rental Properties................. Land........................................... $ 44,220 $ 44,213 Buildings and improvements..................... 164,114 162,015 --------- --------- 208,334 206,228 Less accumulated depreciation................ ( 20,103) ( 18,889) --------- --------- 188,231 187,339 Investment in Unconsolidated Partnership......... 1,416 1,524 Notes Receivable Secured by Real Properties...... 5,384 7,437 Cash............................................. 1,362 867 Other Assets..................................... 1,023 1,798 --------- --------- $197,416 $198,965 ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY Notes Payable.................................... $ 87,261 $ 88,675 Accounts Payable and Accrued Expenses............ 2,053 1,901 Distributions Payable to Shareholders............ 3,310 3,299 -------- -------- 92,624 93,875 -------- -------- SHAREHOLDERS' EQUITY Shares of Beneficial Interest - no par value - unlimited shares authorized; 9,324,317 shares in 1995 and 9,294,251 shares in 1994 issued and outstanding................................ 104,792 105,090 -------- -------- $197,416 $198,965 ======== ========
See accompanying Notes to Financial Information REAL ESTATE INVESTMENT TRUST OF CALIFORNIA PART I - FINANCIAL INFORMATION Item 1: Consolidated Statements of Income (Unaudited) (Note 1)
For the Three Months Ended March 31, March 31, 1995 1994 -------------------------- ($ in thousands, except per-share data) REVENUES Rental.............................................. $8,066 $5,719 Interest/Other...................................... 351 290 ------ ------ 8,417 6,009 ------ ------ REAL ESTATE EXPENSES Depreciation........................................ 1,322 851 Interest............................................ 1,733 605 Property Taxes...................................... 469 252 Repairs and Maintenance............................. 435 285 Insurance........................................... 59 31 Leasing Commissions and Payroll..................... 519 320 Utilities........................................... 520 350 Other............................................... 428 260 ------ ------ 5,485 2,954 ------ ------ ADMINISTRATIVE EXPENSES Trustees Fees....................................... 30 21 Professional Services............................... 37 36 Salaries and Overhead............................... 252 231 ------ ------ 319 288 ------ ------ Net income............................................ $2,613 $2,767 ====== ====== Weighted Average Shares Outstanding (in thousands).... 9,306 9,246 Per Share Data Net Income.......................................... $ .28 $ .30 ====== ====== Cash Distributions.................................. $ .355 $ .330 ====== ======
See accompanying Notes to Financial Information REAL ESTATE INVESTMENT TRUST OF CALIFORNIA PART I - FINANCIAL INFORMATION Item 1: Consolidated Statements of Cash Flows (Unaudited) (Note 1)
For the Three Months Ended March 31, March 31, 1995 1994 -------------------------- ($ in thousands) Cash flow from operating activities: Net income.......................................... $2,613 $ 2,767 Adjustment to reconcile net income to net cash provided by operating activities: Depreciation and amortization....................... 1,345 871 Decrease (increase) other assets.................... 884 ( 259) Increase in accounts payable........................ 153 254 ------ ------- Net cash provided by operating activities............. 4,995 3,633 ------ ------- Cash flows from investing activities: Additions to buildings and improvements............. (2,106) ( 306) Purchases of rental properties...................... -0- (20,142) Collections on notes receivable..................... 2,054 6 ------ ------- Net Cash (used in) provided by investing activities................................ ( 52) (20,442) ------ ------- Cash flow from financing activities: Principal payments on notes payable and lines of credit............................................. (1,414) (32,750) Distributions to Shareholders....................... (3,102) ( 2,909) Proceeds from long-term unsecured borrowings........ -0- 55,000 Cash proceeds from sale of Shares of Beneficial Interest........................................... 68 32 ------ ------- Net cash provided by (used in) financing activities........................................... (4,448) 19,373 ------ ------- Net increase in cash.................................. 495 2,564 Cash at beginning of period........................... 867 218 ------ ------- Cash at end of period................................. $1,362 $ 2,782 ====== =======
See accompanying Notes to Financial Information REAL ESTATE INVESTMENT TRUST OF CALIFORNIA PART I - FINANCIAL INFORMATION (Unaudited) Item 1: Notes to Financial Information Note 1: Reference is made to Notes to Audited Consolidated Financial Statements appearing in the Trust's Annual Report on Form 10-K, as amended, for the year ended December 31, 1994. Note 2: The accompanying unaudited consolidated financial statements are prepared in accordance with instructions to Form 10-Q and in the opinion of management, include all material adjustments (consisting only of normal recurring accruals) which are necessary for a fair presentation of the results for the interim periods shown. The results for the three month period ended March 31, 1995 are not necessarily indicative of the results to be expected for the full year. Note 3: The consolidated financial statements include the accounts of REIT-Santa Maria Properties, Ltd., a limited partnership in which the Trust is general partner and has significantly all the partnership capital. The accounts of the limited partnership have been consolidated with those of the Trust as of April 15, 1981, the date when the partnership interest was acquired. Note 4: No provision has been made for income taxes as the Trust believes that it qualifies as a real estate investment trust under Sections 856-860 of the Internal Revenue Code and under similar state statutes. REAL ESTATE INVESTMENT TRUST OF CALIFORNIA PART I - FINANCIAL INFORMATION (Unaudited) Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations OVERVIEW Real Estate Investment Trust of California is a regionally focused, self-administered equity real estate investment trust which owns a diversified portfolio of real estate investments. The Trust currently invests primarily in apartment communities which offer attractive current returns, solid potential for long-term appreciation and earnings growth. The continuing policy of the Trust is to emphasizecurrent returns rather than the realization of capital gains through property dispositions, although in furtherance of the strategy emphasizing apartment investments, the Trust is contemplating the possible disposition of certain shopping center investments. Revenues of the Trust consist primarily of rental income derived from its portfolio of income-producing properties and to a much lesser extent interest income from secured notes receivable. The Trust continues to focus on equity investments in apartment communities in various diversified markets, including Northern and Southern California, Arizona and Nevada. Market conditions have adjusted investment yields of apartment communities more in line with the general real estate market for investment grade real estate. In furtherance of this strategic focus, during 1994 the Trust acquired nine apartment communities totaling 1,381 units. These and prior acquisitions are the basis of a major impact on the financial operations of the Trust. No apartment communities were acquired in the first quarter of 1995, as the Trust focused its activities on the management of its core portfolio of assets. The Trust acquired the following apartment properties in 1991, 1992, 1993 and 1994:
MONTH # OF PROPERTY PURCHASE PER ACQUIRED UNITS LOCATION PRICE UNIT - ------------------------------------------------------------------------------- FOR YEAR 1991 - ------------------------------------------------------------------------------- WindRush Village Apartments March 366 Colton, CA $15,450,000 $42,200 - ------------------------------------------------------------------------------- Los Senderos Apartments April 120 Phoenix, AZ 3,200,000 26,700 - ------------------------------------------------------------------------------- Brentwood Apartments December 224 Phoenix, AZ 3,950,000 17,600 - ------------------------------------------------------------------------------- Shadow Bend Apartments December 108 Scottsdale, AZ 3,200,000 29,600 - ------------------------------------------------------------------------------- FOR YEAR 1992 - ------------------------------------------------------------------------------- Park Scottsdale Apartments September 128 Scottsdale, AZ $4,175,000 32,600 - ------------------------------------------------------------------------------- Monte Vista Apartments December 60 Phoenix, AZ 900,000 15,000 - ------------------------------------------------------------------------------- Ocotillo Apartments December 173 Phoenix, AZ 2,400,000 13,900 - ------------------------------------------------------------------------------- FOR YEAR 1993 - ------------------------------------------------------------------------------- Telegraph Canyon Villas Apartments February 183 Chula Vista , CA $11,200,000 61,200 - ------------------------------------------------------------------------------- Posada del Este Apartments April 148 Phoenix, AZ 3,400,000 23,000 - ------------------------------------------------------------------------------- Lakeview Apartments August 300 San Diego, CA 15,300,000 51,000 - -------------------------------------------------------------------------------
- ------------------------------------------------------------------------------- MONTH # OF PROPERTY PURCHASE PER ACQUIRED UNITS LOCATION PRICE UNIT - ------------------------------------------------------------------------------- FOR YEAR 1994 - ------------------------------------------------------------------------------- Hazel Ranch Apartments February 208 Fair Oaks, CA $8,900,000 42,800 - ------------------------------------------------------------------------------- The Summit Apartments February 125 Chino Hills, CA 7,495,000 60,000 - ------------------------------------------------------------------------------- Countryside Village Apartments February 96 El Cajon, CA 3,700,000 38,500 - ------------------------------------------------------------------------------- Stonegate Apartments June 310 Phoenix, AZ 13,550,000 43,700 - ------------------------------------------------------------------------------- Cypress Springs II Apartments June 144 Las Vegas, NV 7,500,000 52,100 - ------------------------------------------------------------------------------- Tango Apartments July 136 Las Vegas, NV 7,700,000 56,600 - ------------------------------------------------------------------------------- Shaliko Apartments October 151 Rocklin, CA 8,550,000 56,600 - ------------------------------------------------------------------------------- Rocklin Gold Apartments November 121 Rocklin, CA 6,300,000 52,000 - ------------------------------------------------------------------------------- Quail Chase Apartments December 90 Folsom, CA 5,500,000 61,100 - ------------------------------------------------------------------------------- Total 3,191 $132,370,000 $41,500 - -------------------------------------------------------------------------------
ACQUISITION RECAP BY STATE
- -------------------------------------------------------------- # OF TOTAL AVERAGE % INVESTMENT STATE UNITS INVESTMENT UNIT COST BY STATE - -------------------------------------------------------------- CALIFORNIA 1,640 $82,395,000 $50,200 62% - -------------------------------------------------------------- ARIZONA 1,271 34,775,000 $27,400 26% - -------------------------------------------------------------- NEVADA 280 15,200,000 $54,300 12% - -------------------------------------------------------------- TOTAL 3,191 $132,370,000 $41,000 100% - --------------------------------------------------------------
LIQUIDITY AND CAPITAL RESOURCES The Trust has lines of credit with Sanwa Bank ($29,000,000) and Union Bank ($7,500,000) for use in the acquisition of income producing properties and general operating purposes, including the payment of distributions to shareholders. Reference is made to the Notes to the Trust's 1994 Annual Report on Form 10-K, as amended, for full details of the terms of these lines of credit. As of March 31, 1995, the Trust had outstanding balances on the lines of credit of $28,000,000. On November 1, 1994, the Trust sold the La Verne Towne Center, La Verne, California, for a net sales price of $13,300,000. The funds were used to reduce outstanding borrowings under the Trust's lines of credit and for property acquisitions. The following table quantifies cash flows from operating, investing and financing activities using information from the Consolidated Statements of Cash Flows:
- ----------------------------------------------------------------------------- March 31, March 31, For the Three Months Ended 1995 1994 - ----------------------------------------------------------------------------- Net cash provided by operating activities........ $ 4,995 $ 3,633 - ----------------------------------------------------------------------------- Net cash used in investing activities............ ( 52) (20,442) - ----------------------------------------------------------------------------- Net cash provided by (used in) financing activities... (4,448) 19,373 - ----------------------------------------------------------------------------- Net increase in cash.................................. $ 495 $ 2,564 - ----------------------------------------------------------------------------- Cash at end of period................................. $ 1,362 $ 2,782 - -----------------------------------------------------------------------------
As the owner of real estate, the Trust is subject to risks arising in connection with the underlying real estate such as defaults or nonrenewal of the leases, increased operating costs, environmental problems, financing availability, changes in real estate and zoning laws and increases in real property tax rates. The success of the Trust also depends upon trends of the economy, including interest rates, income tax laws, governmental regulation and legislation, and population changes. As a real estate investment trust, the Trust is required under the Internal Revenue Code to distribute to its Shareholders at least 95% of its taxable income. CHANGES IN RESULTS OF OPERATIONS - FOR THE THREE MONTHS ENDED MARCH 31,1995 AND MARCH 31, 1994 The following table summarizes the financial comparison of the three months ended March 31, 1995 and March 31, 1994 ($ in thousands, except per share data).
- ---------------------------------------------------------------------- MARCH 31, MARCH 31, PERCENTAGE FOR THE THREE MONTHS ENDED 1995 1994 CHANGE - ---------------------------------------------------------------------- Total revenues $8,417 $6,009 40.1% - ---------------------------------------------------------------------- - ---------------------------------------------------------------------- Depreciation 1,322 851 55.3 - ---------------------------------------------------------------------- Interest 1,733 605 186.4 - ---------------------------------------------------------------------- Property operating costs 2,430 1,498 62.2 - ---------------------------------------------------------------------- - ---------------------------------------------------------------------- Administrative expenses 319 288 10.8 - ---------------------------------------------------------------------- - ---------------------------------------------------------------------- Net Income $2,613 $2,767 (5.6%) - ---------------------------------------------------------------------- - ---------------------------------------------------------------------- Weighted Average Shares Outstanding (000's) 9,306 9,246 - ----------------------------------------------------------------------
Revenues and real estate expenses have increased from March 31, 1994 to March 31, 1995 primarily due to 1994 property acquisitions and improvements in occupancies and operating performances of existing apartment investments. As new investments were acquired, depreciation expense has increased. In March 1994, the Trust funded the Prudential Insurance Company of America $55,000,000 unsecured note payable. The interest on this borrowing is the major portion of the increase in interest expense between the periods. These funds were used to fund 1994 property acquisitions. The operating costs increased due to the 1994 property acquisitions totaling 1,381 apartment units, as shown in the table above. Expenses related to apartment operations, which include payroll of on-site personnel (such as resident managers, leasing staff, maintenance and janitorial staff), utilities, advertising, direct office expenses and management fees, have increased in direct relation to acquisitions of those properties. All operating expenses for apartment complexes, including real property taxes and insurance, but excluding depreciation, range from approximately 35% to 40% of gross scheduled income. This compares to retail and commercial properties, which are generally leased on a "net" basis with the tenant paying operating expenses. The retail portfolio continues to experience weakness in rental rates and occupancy due to the effects of the Southern California economy. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this amendment to report to be signed on its behalf by the undersigned duly authorized. REAL ESTATE INVESTMENT TRUST OF CALIFORNIA Date:__________________ By:_______________________________________ LEROY E. CARLSON Vice President, Secretary and Treasurer (for the Registrant and as Chief Accounting Officer) EX-27 2 EXHIBIT 27
5 1,000 3-MOS DEC-31-1995 MAR-31-1995 1362 0 5384 0 0 0 208334 20103 197416 0 0 104792 0 0 0 197416 8417 8417 0 0 3752 0 1733 2613 0 0 0 0 0 2613 .281 .281
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