-----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, M6js+9HJgtt4ULh/AavD+NvLoaMAV/vRr9Nd1TM6Jd14G6c+B92r66u9jLoSX9wA y7ymqp1UrUB4wjhXza5aOg== 0000950168-95-000977.txt : 19951118 0000950168-95-000977.hdr.sgml : 19951118 ACCESSION NUMBER: 0000950168-95-000977 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951109 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: 95588862 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 INSIGNIA--UINP #40598.1 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 September 30, 1995 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT of 1934 For the transition period.........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 (803) 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) September 30, 1995
Assets Cash: Unrestricted $ 778,316 Restricted-tenant security deposits 47,447 Accounts receivable 9,938 Escrows for taxes 89,280 Other assets 33,963 Investment properties: Land $ 1,861,813 Buildings and related personal property 10,137,849 11,999,662 Less accumulated depreciation (2,164,518) 9,835,144 ---------- Investment in Joint Venture 657,168 $11,451,256 Liabilities and Partners' Capital (Deficit) Liabilities Accounts payable $ 54,045 Tenant security deposits 47,549 Accrued taxes 19,969 Other liabilities 61,021 Partners' Capital (Deficit) General partner $ (20,651) Limited partners (61,063 units issued and outstanding) 11,289,323 11,268,672 ----------- ---------- $11,451,256
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 1 b) UNITED INVESTORS INCOME PROPERTIES STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended Nine Months Ended September 30, September 30, 1995 1994 1995 1994 -------- -------- ------ ------ Revenues: Rental income $378,325 $381,843 $1,110,086 $1,189,644 Other income 35,358 27,002 87,223 75,312 ------- ------- --------- --------- Total revenues 413,683 408,845 1,197,309 1,264,956 ------- ------- --------- --------- Expenses: Operating 94,690 92,188 290,150 279,461 General and administrative 22,047 15,912 57,755 48,144 Property management fees 19,155 22,054 57,519 67,406 Maintenance 74,322 52,191 176,544 143,230 Depreciation and amortization 88,902 86,136 259,301 254,786 Property taxes 36,746 34,060 114,462 120,595 Tenant reimbursements (2,951) (12,623) (5,480) (36,267) ------- ------- --------- --------- Total expenses 332,911 289,918 950,251 877,355 ------- ------- --------- --------- Equity in net income of joint venture 2,723 11,892 21,683 27,426 ------- ------- --------- --------- Net income $ 83,495 $130,819 $ 268,741 $ 415,027 ======= ======= ========= ========= Net income allocated to general partner (1%) $ 835 $ 1,308 $ 2,687 $ 4,150 Net income allocated to limited partners (99%) 82,660 129,511 266,054 410,877 ------- ------- --------- --------- $ 83,495 $130,819 $ 268,741 $ 415,027 ======= ======= ========= ========= Net income per limited partnership unit $ 1.35 $ 2.12 $ 4.36 $ 6.73 ======= ======= ========= =========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 2 c) UNITED INVESTORS INCOME PROPERTIES STATEMENT OF CHANGES IN PARTNERS' CAPITAL (DEFICIT) (Unaudited)
Limited Partnership General Limited Units Partners Partners Total Original capital contributions 61,063 $ 100 $15,265,750 $15,265,850 ====== ======= ========== ========== Partners' capital (deficit) at December 31, 1994 61,063 $(18,324) $11,519,621 $11,501,297 Partners' distributions -- (5,014) (496,352) (501,366) Net income for the nine months ended September 30, 1995 -- 2,687 266,054 268,741 ------ ------- ---------- ---------- Partners' capital (deficit) at September 30, 1995 61,063 $(20,651) $11,289,323 $11,268,672 ====== ======= ========== ==========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 3 d) UNITED INVESTORS INCOME PROPERTIES STATEMENTS OF CASH FLOWS (Unaudited)
Nine Months Ended September 30, 1995 1994 Cash flows from operating activities: Net income $ 268,741 $ 415,027 Adjustments to reconcile net income to net cash provided by operating activities: Equity in net income of joint venture (21,683) (27,426) Depreciation and amortization 259,301 254,786 Change in accounts: Restricted cash (639) 5,313 Accounts receivable 2,331 (733) Escrows for taxes (40,079) (61,236) Other assets (2,239) (968) Accounts payable 35,736 4,016 Tenant security deposit liabilities (5,547) (5,363) Accrued taxes 19,969 12,490 Other liabilities 13,347 9,842 -------- -------- Net cash provided by operating activities 529,238 605,748 -------- -------- Cash flows from investing activities: Property improvements and replacements (121,827) (74,676) Distributions from joint venture 4,276 40,950 -------- -------- Net cash used in investing activities (117,551) (33,726) -------- -------- Cash flows from financing activities: Partners' distributions (501,366) (688,963) -------- -------- Net cash used in financing activities (501,366) (688,963) -------- -------- Net decrease in cash (89,679) (116,941) Cash at beginning of period 867,995 991,551 -------- -------- Cash at end of period $ 778,316 $ 874,610 ======== ========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS 4 e) UNITED INVESTORS INCOME PROPERTIES NOTES TO FINANCIAL STATEMENTS (Unaudited) NOTE A - BASIS OF PRESENTATION The accompanying unaudited financial statements 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 and nine month periods ended September 30, 1995, are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 1995. 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, 1994. Certain reclassifications have been made to the 1994 information to conform to the 1995 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 earnings of Corinth. The investment is decreased by distributions from Corinth and the Partnership's share of losses of Corinth. NOTE C - 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. 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. 5 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS The Partnership's investment properties consist of three apartment complexes and a commercial office building. The following table sets forth the average occupancy of these properties for the nine months ended September 30, 1995 and 1994:
Average Occupancy 1995 1994 ---- ---- Bronson Place Apartments Mountlake Terrace, Washington 91% 93% Meadow Wood Apartments Medford, Oregon 91% 89% Defoors Crossing Apartments Atlanta, Georgia 98% 98% Peachtree Corners Medical Building Atlanta, Georgia 20% 73%
The decrease in occupancy at Bronson Place resulted from the increasingly competitive market conditions encountered in the first nine months of 1995. In an attempt to increase occupancy, management has increased rental concessions at this property resulting in increased occupancy of 96% at the end of the third quarter of 1995. Although occupancy has remained stable at Meadow Wood and Defoors, both markets are experiencing construction of new apartments. A new 392 apartment community near Defoors will be constructed with leasing to begin in the summer of 1996. In an effort to improve marketability in increasingly competitive areas, Meadow Wood and Defoors have both concentrated on exterior building maintenance such as painting and exterior signage. At Peachtree Medical, occupancy decreased in 1995 as a result of the move-out of two tenants occupying 73% of the property. The property has initiated a more comprehensive marketing and maintenance program in order to position the property to attract quality, long-term tenants. A new tenant occupying 23% of the leasable space moved into the property in the third quarter of 1995, and the Partnership is negotiating a lease with another tenant who would increase occupancy to approximately 50% in the first quarter of 1996. The Partnership's net income for the nine months ended September 30, 1995 was $268,741, of which $83,495 was realized in the third quarter. The corresponding net income for 1994 was $415,027 and $130,819, respectively. The decrease in net income for the nine months ended September 30, 1995, was primarily due to a decrease in rental revenue and increases in operating and maintenance expenses. The rental revenue decrease resulted from declining occupancy at Peachtree Corners in 1995. Tenant reimbursements also decreased in the first quarter of 1995 due to a decrease in reimbursable expenses resulting from the decreased occupancy at Peachtree Corners. These decreases in net income were partially offset by an increase in other income resulting from higher cleaning and damage fees created by increased tenant turnover at Bronson Place in the first nine months of 1995. Also contributing to increased other income was an increase in 6 interest income resulting from higher interest rates earned as a result of investments in short-term certificates of deposit. Total expenses increased due to higher operating and maintenance costs in 1995 involving primarily exterior painting at Bronson and Defoors and plumbing and parking lot repairs at Peachtree. General and administrative expenses increased as a result of an increase in expense reimbursements in 1995. Partially offsetting the increase in total expenses was a decrease in property management fees resulting from the decrease in rental revenues. Property taxes were lower for the nine months ended September 30, 1995, compared to the corresponding period of 1994 due to a reduced tax assessment received on the Meadow Wood property. As part of the ongoing business plan of the Partnership, the General Partner monitors the rental market environment of each 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 September 30, 1995, the Partnership had unrestricted cash of $778,316 compared to $867,995 at December 31, 1994. Net cash provided by operating activities decreased as a result of the decreases in rental income and tenant reimbursements discussed above. Net cash used in investing activities increased due to building improvements made primarily at Peachtree and also from fewer distributions received from the joint venture for the nine months ended September 30, 1995, compared to the corresponding period of 1994. Net cash used in financing activities decreased as a result of reduced partners' distributions. 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 meet other operating needs of the Partnership. Such assets are currently thought to be sufficient for any near-term needs of the Partnership. Future cash distributions will depend on the levels of net cash generated from operations, property sales and the availability of cash reserves. Cash distributions of $882,021 were made during 1994 and cash distributions of $501,366 were made during the first nine months of 1995. 7 PART II - OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K a) Exhibit 27, Financial Data Schedule, is filed as an exhibit to this report. b) Reports on Form 8-K: None filed during the quarter ended September 30, 1995. 8 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. Controller and Principal Accounting Officer Date: November 9, 1995 9 EX-27 2 EXHIBIT 27
5 This schedule contains summary financial information extracted from United Investors Income Properties' 1995 Third Quarter 10-QSB and is qualified in its entirety by reference to such 10-QSB filing. 1 9-MOS DEC-31-1995 SEP-30-1995 778,316 0 9,938 0 0 0 11,999,662 2,164,518 11,451,256 0 0 0 0 0 11,268,627 11,451,256 0 1,197,309 0 0 950,251 0 0 0 0 0 0 0 0 268,741 4.36 0 The Registrant has an unclassified balance sheet.
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