-----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, I6VbKbY7h8OFG9wPT8ifgmdzopBy8zztDHrCCPePX/eY2QrhRaO1WNvYS/3liv5L +WnE3DwfyWX3aXgixN8MEg== 0000830737-96-000005.txt : 19960517 0000830737-96-000005.hdr.sgml : 19960517 ACCESSION NUMBER: 0000830737-96-000005 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960515 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNITED INVESTORS INCOME PROPERTIES CENTRAL INDEX KEY: 0000830056 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 431483942 STATE OF INCORPORATION: MO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-17646 FILM NUMBER: 96565463 BUSINESS ADDRESS: STREET 1: ONE INSIGNIA FINANCIAL PLZ STREET 2: P O BOX 1089 CITY: GREENVILLE STATE: SC ZIP: 29602 BUSINESS PHONE: 8032391000 MAIL ADDRESS: STREET 1: ONE INSIGNIA FINANCIAL PLAZA STREET 2: P.O. BOX 1089 CITY: GREENVILLE STATE: SC ZIP: 29602 10QSB 1 FORM 10-QSB.--QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Quarterly or Transitional Report (As last amended by 34-32231, eff. 6/3/93.) U.S. Securities and Exchange Commission Washington, D.C. 20549 Form 10-QSB [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 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT For the transition period from.........to......... Commission file number 0-17646 UNITED INVESTORS INCOME PROPERTIES (Exact name of small business issuer as specified in its charter) Missouri 43-1483942 (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) One Insignia Financial Plaza, P.O. Box 1089 Greenville, South Carolina 29602 (Address of principal executive offices) (Zip Code) Issuer's telephone number (864) 239-1000 Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 a) UNITED INVESTORS INCOME PROPERTIES BALANCE SHEET (Unaudited) (in thousands, except unit data) March 31, 1996 Assets Cash and cash equivalents: Unrestricted $ 667 Restricted--tenant security deposits 48 Accounts receivable 19 Escrows for taxes 89 Other assets 39 Investment properties: Land $ 1,862 Buildings and related personal property 10,186 12,048 Less accumulated depreciation ( 2,340) 9,708 Investment in Joint Venture 662 $11,232 Liabilities and Partners' Capital (Deficit) Liabilities Accounts payable $ 19 Tenant security deposits 49 Accrued taxes 23 Other liabilities 37 Partners' Capital (Deficit) General partner $ (22) Limited partners (61,063 units issued and outstanding) 11,126 11,104 $11,232 See Accompanying Notes to Consolidated Financial Statements b) UNITED INVESTORS INCOME PROPERTIES STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except unit data) Three Months Ended March 31, 1996 1995 Revenues: Rental income $ 384 $ 369 Other income 28 29 Total revenues 412 398 Expenses: Operating 116 110 General and administrative 16 17 Maintenance 47 38 Depreciation 87 85 Property taxes 38 41 Total expenses 304 291 Equity in income of joint venture 6 11 Net income $ 114 $ 118 Net income allocated to general partner (1%) $ 1 $ 1 Net income allocated to limited partners (99%) 113 117 $ 114 $ 118 Net income per limited partnership unit $ 1.85 $1.92 See Accompanying Notes to Consolidated Financial Statements c) UNITED INVESTORS INCOME PROPERTIES STATEMENT OF CHANGES IN PARTNERS' CAPITAL (DEFICIT) (Unaudited) (in thousands, except unit data)
Limited Partnership General Limited Units Partner Partners Total Original capital 61,063 $ -- $ 15,266 $ 15,266 Partners' capital (deficit) December 31, 1995 $61,063 $ (22) $ 11,166 $ 11,144 Partners' distributions (1) (153) (154) Net income for the three ended March 31, 1996 -- 1 113 114 Partners' capital (deficit) March 31, 1996 $61,063 $ (22) $ 11,126 $ 11,104 See Accompanying Notes to Consolidated Financial Statements
d) UNITED INVESTORS INCOME PROPERTIES STATEMENTS OF CASH FLOWS (Unaudited) (in thousands)
Three Months Ended March 31, 1996 1995 Cash flows from operating activities: Net income $ 114 $ 118 Adjustments to reconcile net income to net cash provided by operating activities: Equity in net income of joint venture (6) (11) Depreciation 87 85 Change in accounts: Restricted cash (1) (4) Accounts receivable (4) (5) Escrows for taxes (41) (27) Other assets 12 6 Accounts payable 8 (1) Tenant security deposit liabilities 2 (2) Accrued taxes 22 14 Other liabilities (1) (5) Net cash provided by operating activities 192 168 Cash flows from investing activities: Property improvements and replacements (8) (9) Distributions from joint venture -- 1 Net cash used in investing activities (8) (8) Cash flows from financing activities: Partners' distributions (154) (193) Net cash used in financing activities (154) (193) Net increase (decrease) in cash and cash equivalents 30 (33) Cash and cash equivalents at beginning of period 637 868 Cash and cash equivalents at end of period $ 667 $ 835 See Accompanying Notes to Consolidated Financial Statements
e) UNITED INVESTORS INCOME PROPERTIES NOTES TO FINANCIAL STATEMENTS (Unaudited) Note A - Basis of Presentation The accompanying unaudited financial statements of United Investors Income Properties ("The Partnership") have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-QSB and Item 310(b)of Regulation S-B. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of the General Partner, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 1996, are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 1996. For further information, refer to the financial statements and footnotes thereto included in the Partnership's annual report on Form 10-KSB for the fiscal year ended December 31, 1995. Certain reclassifications have been made to the 1995 information to conform to the 1996 presentation. Note B - Basis of Accounting The financial statements include the Partnership's operating divisions, Bronson Place Apartments, Defoors Crossing Apartments, Meadow Wood Apartments, and Peachtree Corners Medical Building. In addition, the Partnership owns a 35% interest in Corinth Square Associates ("Corinth"). The Partnership reflects its interest in Corinth utilizing the equity method whereby the original investment is increased by advances to Corinth and the Partnership's share of Corinth earnings. The investment is decreased by distributions from Corinth and the Partnership's share of Corinth losses. Note C - Transactions with Affiliated Parties The Partnership has no employees and is dependent on the General Partner and its affiliates for the management and administration of all partnership activities. The Partnership Agreement provides for payments (included in operating expenses) to affiliates for services (based on a percentage of revenue) and for reimbursement of certain expenses incurred by affiliates on behalf of the Partnership. Expense reimbursements are included in general and administrative expenses. The following payments were made to affiliates of Insignia for the three months ended March 31, 1996 and 1995: Note C - Transactions with Affiliated Parties (continued) Three Months Ended March 31, (in thousands) 1996 1995 Property management fees $20 $19 Reimbursement for services of affiliates 8 8 The Partnership insures its properties under a master policy through an agency and insurer unaffiliated with the General Partner. An affiliate of the General Partner acquired, in the acquisition of a business, certain financial obligations from an insurance agency which was later acquired by the agent who placed the current year's master policy. The current agent assumed the financial obligations to the affiliate of the General Partner who receives payments on these obligations from the agent. The amount of the Partnership's insurance premiums accruing to the benefit of the affiliate of the General Partner by virtue of the agent's obligations is not significant. Note D - Repurchase of Units The partnership agreement for the Partnership contains a provision which states that the General Partner shall purchase up to 10% of the limited partnership units outstanding at the fifth anniversary date of the last Additional Closing Date and become a limited partner with respect to such units. Pursuant to this provision, the General Partner accepted repurchase notices representing approximately 1.5% of the limited partnership units and during the third quarter of 1995 the transfer of 950 units was effected. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION The Partnership's investment properties consist of three apartment complexes and a commercial office building. The following table sets forth the average occupancy of the properties for the quarters ended March 31, 1996 and 1995: Average Occupancy Property 1996 1995 Bronson Place Apartments Mountlake Terrace, Washington 94% 88% Meadow Wood Apartments Medford, Oregon 94% 94% Defoors Crossing Apartments Atlanta, Georgia 94% 97% Peachtree Corners Medical Building Atlanta, Georgia 36% 25% The increase in occupancy at Bronson Place Apartments is due to increased rental concessions in prior periods and increased marketing efforts. The increase in occupancy at Peachtree Corners Medical Building is due to increased marketing efforts and maintenance improvements made to attract quality, long- term tenants. The decrease in occupancy at Defoors Crossing Apartments is due to increased rental rates and tenants purchasing homes in the lower interest rate environment. The Partnership's net income for the three months ended March 31, 1996 was approximately $114,000 compared to $118,000 for the corresponding period of 1995. The decrease in net income was due to increases in operating and maintenance expenses. Operating expenses increased due to increased insurance premiums related to additional coverages. Maintenance expense increased due to a parking lot project at Defoors Crossing Apartments and the cleaning of the parking lot at Peachtree Corners Medical Building. Also contributing to the lower net income was a decrease in equity income of joint venture due to the decrease in rental income resulting from the lower occupancy and increased operating expense resulting from higher utility costs associated with the harsh winter at the Corinth Square Apartment (the "Joint Venture Investment"). As part of the ongoing business plan of the Partnership, the General Partner monitors the rental market environment of its investment properties to assess the feasibility of increasing rents, maintaining or increasing occupancy levels and protecting the Partnership from increases in expenses. Due to changing market conditions, which can result in the use of rental concessions and rental reductions to offset softening market conditions, there is no guarantee that the General Partner will be able to sustain such a plan. At March 31, 1996, the Partnership held unrestricted cash and cash equivalents of $667,000 compared to $835,000 at March 31, 1995. Net cash provided by operating activities increased primarily due to increased rental income and the timing of property tax payments. Net cash used in financing activities decreased in 1996 due to a decrease in distributions made to partners during the three months ended March 31, 1996, compared to the three months ended March 31, 1995. The Partnership has no material capital programs scheduled to be performed in 1996, although certain routine capital expenditures and maintenance expenses have been budgeted. These capital expenditures and maintenance expenses will be incurred only if cash is available from operations or is received from the capital reserve account. The sufficiency of existing liquid assets to meet future liquidity and capital expenditure requirements is directly related to the level of capital expenditures required at the property to adequately maintain the physical assets and other operating needs of the Partnership. Such assets are currently thought to be sufficient for any near-term needs of the Partnership. Distributions to partners of $154,000 and $193,000 were made during the first quarter of 1996 and 1995, respectively. Future cash distributions will depend on the levels of net cash generated from operations, property sales and the availability of cash reserves. PART II - OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K a) Exhibit 27 - Financial Data Schedule b) Reports on Form 8-K: None filed during the quarter ended March 31, 1996. SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. UNITED INVESTORS INCOME PROPERTIES (A Missouri Limited Partnership) By: United Investors Real Estate, Inc., a Delaware corporation, its General Partner By: /s/Carroll D. Vinson Carroll D. Vinson President By: /s/Robert D. Long, Jr. Robert D. Long, Jr. Vice President/CAO Date: May 15, 1996 EX-27 2
5 This schedule contains summary financial information extracted from United Investors Income Properties 1996 First Quarter 10-QSB and is qualified in its entirety by reference to such 10-QSB filing. 0000830056 UNITED INVESTORS INCOME PROPERTIES 1,000 3-MOS DEC-31-1996 MAR-31-1996 667 0 19 0 0 0 12,048 2,340 11,232 0 0 0 0 0 11,104 11,232 0 412 0 0 304 0 0 0 0 0 0 0 0 114 1.85 0 The Partnership has an unclassified balance sheet.
-----END PRIVACY-ENHANCED MESSAGE-----