SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended March 31, 2001
Commission file number 0-11578
AMERICAN REPUBLIC REALTY FUND I
(Exact name of registrant as specified in its charter)
WISCONSIN 39-1421936
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification
Number)
6210 Campbell Road Suite 140
Dallas, Texas 75248
(Address of principal executive offices)
Registrant's telephone number, including area code: (972)380-8000.
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: Y No:
REGISTRANT IS A LIMITED PARTNERSHIP
TABLE OF CONTENTS
Item 1. Financial Statements
The following Unaudited financial statements are filed
herewith:
Consolidated Balance Sheet as of March 31, 2001 and
December 31, 2000 Page 3
Consolidated Statements of Operations for the Three
Months Ended March 31, 2001 and 2000 Page 4
Consolidated Statements of Cash Flows for the Three months
Ended March 31, 2001 and 2000 Page 5
Item 2. Results of Operations and Management's Discussion and Analysis of
Financial Condition Page 6
Liquidity and Capital Resources Page 7
Other Information Page 8
Signatures Page 9
The statements, insofar as they relate to the period subsequent to
December 31, 2000, are Unaudited.
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements
AMERICAN REPUBLIC REALTY FUND I
Condensed Consolidated Balance Sheets
March 31 December 31,
2001 2000
(Unaudited)
ASSETS
Real Estate assets,
at cost Land $1,822,718 $1,822,718
Buildings and 15,757,931 15,757,931
improvements
17,580,649 17,580,649
Less: Accumulated (11,261,467) (11,081,467)
depreciation
Real Estate, net 6,319,182 6,499,182
Cash including cash 545,009 442,739
investments
Escrow deposits 440,049 505,202
Prepaid Expenses 12,446 16,835
Deferred Financing 143,394 149,129
Fees
TOTAL ASSETS $7,460,08 $7,613,087
LIABILITIES AND PARTNERS'
EQUITY:
LIABILITIES
Mortgage and notes $10,422,309 $10,461,310
payable
Note Payable to 0 0
affiliates
Amounts due affiliates 0 0
affiliates
Real estate taxes 71,250 0
payable
Security deposits 77,911 73,445
Accounts payable & 173,705 310,272
accrued expenses
Total liabilities 10,745,175 10,845,027
PARTNERS CAPITAL
(DEFICIT)
Limited Partners (3,332,076) (3,279,452)
General Partner 46,981 47,512
Total Partners Capital (3,285,095) (3,231,940)
(Deficit)
TOTAL LIABILITES AND $7,460,080 $7,613,087
PARTNER DEFICIT
AMERICAN REPUBLIC REALTY FUND I
Condensed Consolidated Statement of Operations
(Unaudited)
Three Months Ended
March 31,
REVENUES 2001 2000
Rental income 694,386 675,721
Other property 22,411 17,621
Total revenues 716,797 693,342
EXPENSES
Salaries & wages 80,704 66,926
Maintenance & repairs 67,278 44,243
Utilities 62,002 61,899
Real estate taxes 71,250 68,748
General administrative 21,861 19,964
Contract services 27,746 28,811
Insurance 12,389 10,352
Interest 205,590 209,978
Depreciation and amortization 185,736 175,736
Property management fees (a) 35,396 34,583
Total expenses 769,952 721,240
NET INCOME before ($53,155) ($27,898)
extraordinary item
Net Income ($53,155) ($27,898)
NET INCOME PER UNIT $(4.83) $(2.54)
See Notes to Condensed Consolidated Financial Statements
AMERICAN REPUBLIC REALTY FUND I
Condensed Consolidated Statement of Cash Flows
See Notes to Condensed Consolidated Financial Statements
(Unaudited)
Three Months Ended
March 31,
2001 2000
CASH FLOWS FROM OPERATING ACTIVITY
Net income (loss) ($53,155) ($27,898)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization 180,000 170,000
Net Effect of changes in operating accounts
Escrow deposits 65,153 78,573
Prepaid expenses 4,389 2,352
Accrued real estate taxes 71,250 68,748
Security deposits 4,466 1,009
Accounts payable (136,567) (140,548)
Other assets 5,735 21,669
Net cash provided by (used for) operating 141,271 173,905
activities
CASH FLOWS FROM INVESTING ACTIVITIES
Repayment of mortgage notes payable (39,001) (36,056)
Repayment of notes payable to affiliates 0 (165,346)
Repayment of amounts due affiliates 0 4,509
Net cash used for investing activities (39,001) (196,893)
NET INCREASE (DECREASE) IN CASH AND CASH 102,270 (22,988)
EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF 442,739 116,649
PERIOD
CASH AND CASH EQUIVALENTS, END OF PERIOD $545,009 $93,661
Basis of Presentation:
Certain information and footnote disclosures normally
included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or
omitted pursuant to such rules and regulations, although the
Partnership believes that the disclosures are adequate to make
the information presented not misleading. It is suggested that
these condensed financial statements be read in conjunction
with the financial statements and notes thereto included in the
Partnership's latest annual report on Form 10-K.
Item 2. RESULTS OF OPERATIONS AND MANAGEMENTS DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION
FIRST QUARTER 2001 COMPARED TO FIRST QUARTER 2000
At March 31, 2001 the Partnership owned two properties with
approximately 416,623 net rentable square feet. Both
properties are apartment communities. The portfolio had an
average occupancy of 95.9% for the first quarter of 2001, as
compared to 95.3% for the first quarter of 2000.
Revenue from property operations increased $23,455, or 3.38%,
for the first quarter of 2001, as compared to the 2000 first
quarter. The increase in rental income of $18,665 or 2.76% is
primarily due to an increase in rental rates. The increase in
other income of $4,790 or 27.18% is primarily due to an
increase in Late and other fee collections from the properties.
The following table illustrates the components:
Increase Percent
(Decrease) Change
Rental income 18,665 2.76%
Other property 4,790 27.18%
Net Increase 23,455 3.38%
(Decrease)
Property operating expenses increased $48,712, or 6.75%, for
the first quarter of 2001, as compared to the same period in
2000, primarily due to increases in maintenance & repairs
expense. The increase in maintenance & repairs expense is due
to parking lot repaving. Salaries and wages increased $13,778
or 20.59% primarily due to increased staffing. Insurance
increased $2,037 or 19.68% in connection with the annual policy
renewal. The following table illustrates the components by
category:
Increase Percent
(Decrease) Change
Salaries & wages 13,778 20.59%
Maintenance & repairs 23,035 52.06%
Utilities 103 0.17%
Real estate taxes 2,502 3.64%
General administrative 1,897 9.50%
Contract services (1,065) 3.70%
Insurance 2,037 19.68%
Interest (4,388) 2.09%
Depreciation and amortization 10,000 5.69%
Property management fees (a) 813 2.35%
Net Increase 48,712 6.75%
(Decrease)
FIRST QUARTER 2000 COMPARED TO FIRST QUARTER 1999
At March 31, 2000 the Partnership owned two properties with
approximately 416,623 net rentable square feet. Both
properties are apartment communities. The portfolio had an
average occupancy of 95.3% for the first quarter of 2000, as
compared to 95.8% for the first quarter of 1999.
Revenue from property operations increased $14,483, or 2.13%,
for the first quarter of 2000, as compared to the 1999 first
quarter. The increase in rental income of $11,890 or 1.79% is
primarily due to an increase in rental rates. The increase in
other income of $2,593 or 17.25% is primarily due to an
increase in Late and other fee collections from the properties.
The following table illustrates the components:
Increase Percent
(Decrease) Change
Rental income 11,890 1.79%
Other property 2,593 17.25%
Net Increase 14,483 2.13%
(Decrease)
Property operating expenses decreased $44,428, or 5.80%, for
the first quarter of 2000, as compared to the same period in
1999, primarily due to decreases in maintenance and repairs
expense. The decrease in maintenance and repairs expense is
due to a one time charge in 1999 for resurfacing the parking
lots. Utilities rose $18,587 or 42.91% primarily due to
increases in usage and rates of water and wastewater charges.
General and Administrative decreased $8,699 or 30.35% primarily
due to professional fees relating to cable wiring of the
properties. The following table illustrates the components
by category:
Increase Percent
(Decrease) Change
Salaries & wages 649 0.98%
Maintenance & repairs (52,089) 54.07%
Utilities 18,587 42.91%
Real estate taxes 1,248 1.85%
General admonistrative (8,699) 30.35%
Contract services 676 2.40%
Insurance (260) 2.45%
Interest (1,102) 0.52%
Depreciation and amortization (4,135) 2.30%
Property management fees (a) 697 2.06%
Net Increase (44,428) 5.80%
(Decrease)
LIQUIDITY AND CAPITAL RESOURCES
While it is the General Partners primary intention to
operate and manage the existing real estate investments, the
General Partner also continually evaluates this investment in
light of current economic conditions and trends to determine if
this asset should be considered for disposal. At this time,
there is no plan to dispose of either property.
As of March 31, 2001, the Partnership had $545,009 in cash
and cash equivalents as compared to $442,739 as of December 31,
2000. The net increase in cash of $102,270 is principally due
to cash flow from operations.
During the first quarter of 2000 ending March 31, the
partnership paid off the remaining balance owned to the general
partner of $165,346. The payment was made with operating cash
flow from the partnership.
Each asset of the fund refinanced its debt during July
1997. The fund retired debt with a face value of $6,500,000
and replaced with debt of $10,800,000. The new mortgages in
the amounts of $4,000,000, $6,800,000 carry interest rates of
7.8% and 7.92% respectively. The notes come due August, 2007.
The Partnerships required principal payments due under the
stated terms of the Partnerships mortgage notes payable and
notes payable to affiliates are $120,132 $129,941, and $140,551
for each of the next three years.
Net proceeds from the refinancing were used to reduce the
notes payable to affiliates. During July, 1997 payments of
$3,500,000 were made to reduce the debt to affiliates.
A gain on retirement of debt arose with the note
refinancing being triggered by the early retirement of the
debt. The recognized gain of $348,836, was the difference
between the carrying value of the debt and the funds necessary
to retire the debt.
For the foreseeable future, the Partnership anticipates
that mortgage principal payments (excluding any balloon
mortgage payments), improvements and capital expenditures will
be funded by net cash from operations. The primary source of
capital to fund future Partnership acquisitions and balloon
mortgage payments will be proceeds from the sale, financing or
refinancing of the Properties.
Other Information
Item 1. Legal Proceedings
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)The following documents are filed herewith or
incorporated herein by reference as indicated as
Exhibits:
Exhibit Designation Document Description
2 Certificate of Limited partnership, as
amended, incorporated by reference to
Registration Statement No.2-81074
effective May 2, 1983.
Limited Partnership Agreement,
incorporated by reference to
Registration Statement No.2-81074
effective May 2,1983.
11 Not Applicable
15 Not Applicable
18 Not Applicable
19 Not Applicable
20 Not Applicable
23 Not Applicable
24 Not Applicable
25 Power of Attorney, incorporated by
reference to Registration Statement
No. 2-81074 effective May 2, 1983.
28 None
(B) Reports on Form 8-K for the quarter ended March 31, 2001.
1 None
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.
AMERICAN REPUBLIC REALTY FUND I
a Wisconsin limited partnership
By: /s/ Robert J. Werra
Robert J. Werra,
General Partner
Date: May 1, 2001