FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended March 31, 1995
Commission file number 0-7752
CONTINENTAL REAL ESTATE PARTNERS, LTD.
(Exact name of Registrant as Specified in its
Certificate of Limited Partnership)
Massachusetts 04-2523977
(State of organization) (Internal Revenue Service
Employer Identification Number)
Wood Ridge Road
Glen Arbor, Michigan 49636
(Address of principal executive (Zip code)
offices)
(616) 334-5000
Registrant's telephone number
Including area code
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 and Exchange
Act of 1934 during the preceding 12 months (or 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
The number of limited partnership interests outstanding as of March 31,
1995:
Limited partnership units, $500 per unit - 30,004 units
Index
CONTINENTAL REAL ESTATE PARTNERS, LTD.
Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Statements of assets, liabilities and partners' capital -
March 31, 1995 and December 31, 1994. . . . . . . . . . . . . . 3
Statements of Operations - three months ended
March 31, 1995 and 1994 . . . . . . . . . . . . . . . . . . . . 4
Statements of changes in partners' capital (unaudited) - three months
ended March 31, 1995 and 1994 . . . . . . . . . . . . . . . . . 5
Statements of Cash Flows (unaudited) - three months ended
March 31, 1995 and 1994 . . . . . . . . . . . . . . . . . . . . 6
Notes to financial statements (unaudited) - March 31, 1995. . . . 7
Report of Independent Certified Public Accountants on Interim Financial
Information . 8
Item 2. Management's Discussion and Analysis of Financial . . . . 9
Condition and Results of Operations
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K. . . . . . . . . . . . . 10
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
PART I. FINANCIAL INFORMATION
Continental Real Estate Partners, Ltd.
STATEMENTS OF ASSETS, LIABILITIES AND PARTNERS' CAPITAL
March 31,December 31,
1995 1994
ASSETS (Unaudited) (Note B)
Investments in real estate
Land $183,581 $183,581
Land improvements 1,877,263 1,877,263
Buildings and equipment 11,983,346 11,924,731
14,044,190 13,985,575
Less - accumulated depreciation 10,482,189 10,379,989
3,562,001 3,605,586
Cash 970,846 1,013,066
Other assets 187,165 198,775
$4,720,012 $4,817,427
LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES
Unclaimed distribution checks $170,164 $170,164
Accounts payable and accrued expenses 50,024 78,735
Liabilities to general partner 2,127,568 2,127,568
2,347,756 2,376,467
PARTNERS' CAPITAL
General partner 410,994 414,429
Limited partners - 30,004 units of
limited partnership interest 1,961,262 2,026,531
2,372,256 2,440,960
$4,720,012 $4,817,427
<FN>
See Notes to Financial Statements. -3-
Continental Real Estate Partners, Ltd.
STATEMENTS OF OPERATIONS (UNAUDITED)
Three months ended March 31,
1995 1994
Operating revenue
Rental income $105,459 $112,265
Other, principally operating expense
reimbursements - 2,311
105,459 114,576
Operating expense
Depreciation 102,200 101,480
Repairs and maintenance 11,207 9,279
Insurance 19,733 20,982
Real estate taxes 17,775 17,300
Utilities 6,729 7,606
Professional services 6,353 8,847
Property management fees 9,102 4,500
Commissions 3,027 3,027
Investor communications 2,371 1,156
Other 3,783 15,806
182,280 189,983
Operating loss (76,821) (75,407)
Interest income 8,117 8,345
NET LOSS $(68,704) $(67,062)
Net loss allocated to
General partner $(3,435) $(3,353)
Limited partners -
$(2.18) and $(2.13) net loss per unit of limited
partnership interest outstanding for the quarter
ended March 31, 1995 and 1994, respectively (65,269) (63,709)
$(68,704) $(67,062)
<FN>
See Notes to Financial Statements. -4-
Continental Real Estate Partners, Ltd.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (UNAUDITED)
Three months ended March 31,
1995 1994
General Limited General Limited
Partner Partner Partner Partner
Beginning balance $414,429 $2,026,531 $430,922 $2,339,894
NET LOSS (3,435) (65,269) (3,353) (63,709)
Ending balance $410,994 $1,961,262 $427,569 $2,276,185
Balance, March 31, 1995,
and 1994, per unit of
limited partnership interest $65.37 $75.87
<FN>
See Notes to Financial Statements. -5-
Continental Real Estate Partners, Ltd.
STATEMENTS OF CASH FLOWS (UNAUDITED)
Three months ended March 31,
1995 1994
Operating activities
Net loss $(68,704) $(67,062)
Adjustments to reconcile net loss to
cash used by operating activities
Depreciation and amortization 105,227 104,507
Decrease in accounts receivable - 1,518
Increase (decrease) in other assets 8,583 (1,414)
Decrease in accounts payable and accrued expenses (28,711) (37,245)
Net cash flow provided by operating activities 16,395 304
Cash flows from investing activities
Real estate redevelopment costs (58,615) -
NET INCREASE (DECREASE) IN CASH (42,220) 304
Balance of cash, beginning of period 1,013,066 978,055
Balance of cash, end of period $970,846 $978,359
<FN>
See Notes to Financial Statements. -6-
Continental Real Estate Partners, Ltd.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE A - BASIS OF PRESENTATION
The accompanying financial statements have been prepared in accordance with
generally accepted accounting principles for interim financial information
and with the instructions to Form 10-Q and Article 10 of Regulation S-X.
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 management, 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, 1995 are not necessarily indicative of the results that may be
expected for the year ending December 31, 1995. For further information,
refer to the consolidated financial statements and footnotes thereto
included in the company's annual report on Form 10-K for the year ended
December 31, 1994.
NOTE B - DECEMBER 31, 1994 STATEMENT OF ASSETS, LIABILITIES AND PARTNERS'
CAPITAL
The statement of assets, liabilities and partners' capital at December 31,
1994 has been derived from the audited financial statements at that date.
Dennis, Gartland & Niergarth, P.C.
415 Munson Avenue
P.O. Box 947
Traverse City, MI 49685-0947
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
ON INTERIM FINANCIAL INFORMATION
The Bayberry Group, Inc.
Sole General Partner of
Continental Real Estate Partners, Ltd.
The accompanying statement of assets, liabilities and partners' capital
of Continental Real Estate Partners, Ltd. (a Massachusetts limited partner-
ship) as of March 31, 1995, and the related statements of operations, cash
flows and changes in partners' capital for the three month periods ended
March 31, 1995 and 1994, were not audited by us and, accordingly, we do not
express an opinion on them.
The accompanying statement of assets and liabilities for the year
ended December 31, 1994 was audited by us, and we expressed an unqualified
opinion on it in our report dated January 18, 1995, but we have not performed
any auditing procedures since that date.
Dennis, Gartland & Niergarth, P.C.
May 8, 1995
-8-
THE BAYBERRY COMPANIES
To Our Partners: June 8, 1995
For the three months ended March 31, 1995, the Partnership had a Net Loss of
$68,704 which was virtually the same as the year prior figure. During the
quarter, there was a net decrease in cash of $42,220 which was principally
attributable to the costs of redevelopment programs we continue to pursue.
Those redevelopment programs move forward slowly, if at all, as the
Memorial Boulevard area is not yet enjoying the public sector support or
market support that other areas of Lakeland have enjoyed.
As one example of that, we had been working with the City of Lakeland
to create a Tax Increment Financing District which is a vehicle
sometimes used to stimulate redevelopment of urban areas. For reasons
unrelated to the Partnership or its property, the City's willingness to
pursue this ended abruptly during the quarter. We do not believe the
City will reconsider its position in the near term.
Another example of this arose when we were preparing a proposal for
some 30,000 square feet of office space thought to be required by the
State of Florida. After intense initial efforts on this, the matter came to
a stop when another landlord filed suit challenging the specifications for
the space which the State had published. The time schedule for the
resolution of that case is unknown but is likely to be protracted.
This pattern of starting and stopping is not, in our experience, atypical
for an area in which a large number of public and private entities must
cooperate to effect changes. Because we see no alternative to that type
of cooperative effort, we will continue to work with all interested parties.
Sincerely,
Robert A. Kuras
President
PLANNING, BUILDING AND MANAGING WITH NATURE
Wood Ridge Road - Glen Arbor - Michigan - 49636 - 616-334-6400
-9-
CONTINENTAL REAL ESTATE PARTNERS, LTD.
PART II. OTHER INFORMATION
Item 6. Exhibits and reports on Form 8-K
The company did not file any reports on Form 8-K during the three months ended
March 31, 1995.
-10-
CONTINENTAL REAL ESTATE PARTNERS, LTD.
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.
CONTINENTAL REAL ESTATE PARTNERS, LTD.
Date
Robert A. Kuras, Principal Financial
Officer and President of
The Bayberry Group, Inc.
Sole General Partner
-11-