4 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 1O-Q Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarter Ended June 30, 1995 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 (I.R.S. Employer incorporation or organization Identification Number) 16415 Addison Road, Suite 200 Dallas, Texas 75248 (Address of principal executive offices) Registrant's telephone number, including area code: (214) 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 PART I FINANCIAL INFORMATION Item 1. Financial Statements The following unaudited financial statements are filed herewith: Balance Sheet......................................................Page 3 Statement of Income and Expenses...................................Page 4 (Quarterly) Statement of Income and Expenses...................................Page 5 (Year to Date) Statement of Partners' Equity......................................Page 6 Statement of Cash Flows............................................Page 7 Notes to Financial Statements......................................Page 8 The statements, insofar as they related to the period subsequent to December 31, 1994, are unaudited. AMERICAN REPUBLIC REALTY FUND I BALANCE SHEET June 30, 1995 June 30, 1994 Unaudited Audited ASSETS: Investment in realestate Land $ 1,822,718 $ 1,822,718 Building & iimprovements 14,364,275 14,364,275 Furniture & fixtures 510,493 510,493 $16,697,486 $16,697,486 Less: accumulated depreciation (7,475,144) (7,175,144) $ 9,222,342 $ 9,522,342 Cash including cash investments 52,151 107,289 Escrow deposits 244,847 146,065 Prepaid expenses 46,692 19,759 Other assets 8,000 0 Total assets $ 9,574,032 $ 9,795,455 Liabilities: and partner equity: Mortgage and notes payable 8,330511 8,756,972 Notes payable to affiliates 3,164558 3122,696 Amounts due affiliates 1,107,230 1,275,226 Real estate taxes payable 101,040 1,328 Security deposits 53,474 56,540 Accounts payable & accrued 141,370 63,779 expenses Total liabilities $12,898,183 $13,276,541 Partners equity (3,324,151) (3,481,086) Total liabilities and partner $ 9,574,032 $ 9,795,455 equity AMERICAN REPUBLIC REALTY FUND I STATEMENT OF INCOME AND EXPENSES (UNAUDITED) Quarter Ended Quarter Ended June 30, 1995 June 30, 1994 Income Rentals $ 581,796 $ 550,809 Other 15,457 16,805 Total $ 597,253 $ 567,614 Expenses Salaries & wages $ 70,885 $ 59,741 Maintenance & repairs 44,422 56613 Utilities 51,788 49,168 Real estate taxes 55,740 45,300 General & administrative 22,134 27,472 Contract services 23,132 18,435 Insurance 11,112 10,834 $ 279,213 $ 267,563 Interest $ 78,539 $ 32,500 Depreciation and amortization $ 150,000 $ 108,750 General partner fees: Property management fees $ 29,856 $ 28,379 Total expenses $ 537,608 $ 437,192 Net income $ 59,645 $ 130,422 AMERICAN REPUBLIC REALTY FUND I STATEMENT OF INCOME AND EXPENSES (UNAUDITED) Year to Date Year to Date June 30,1995 June 30,1994 Income: Rentals $1,162,060 $1,102,551 Other 26,870 28,384 Total $1,188,930 $1,130,935 Expenses: Salaries & wages 129,938 91,379 Real estate taxes 101,040 90,600 Utilities 93,146 90,525 Maintenance & repairs 76,135 1,5443 Contract services 47,152 35,942 General & administrative 42,469 47,355 Insurance 22,796 20,764 $ 512,676 $ 492,008 Interest $ 159,880 $ 65,261 Depreciation and amortization $ 300,000 $ 217,500 General partner fees: Property management fees $ 59,439 $ 56,987 Total expenses $1,031,995 $ 831,756 Net income $ 156,935 $ 299,179 AMERICAN REPUBLIC REALTY FUND I STATEMENT OF CHANGES IN PARTNER'S EQUITY THREE MONTHS ENDED JUNE 30, 1995 Total Limited General Partners Partners Balance April 1, 1995 $(3,383,796) $(3,435,653) $ 51,857 Net income (loss) 59,645 59,049 596 Balance June 30, 1995 $(3,324,151) $(3,376,604) $ 52,453 AMERICAN REPUBLIC REALTY FUND I STATEMENT OF CASH FLOW For The Quarter Ended June 30, 1995 Cash flows from operating activities: Net income (loss) $ 59,645 Adjustments to reconcile net income to Cash provided by operations: Depreciation and amortization 150,000 Changes in assets and liabilities Real estate taxes payable 55,740 Escrow deposits (1,840) Due to affiliates (124,751) Accounts payable and accrued expenses 762 Security deposits (3,431) Prepaid expenses (40,224) Total adjustments $ 36,256 Net cash provided by operating activities $ 95,901 Cash flows provided by investing activities Net cash provided by investing activities 0 Cash flows provided by financing activities Payments on mortgage payable (208,737) Net cash provided by financing activities $(208,737) Net increase (decrease) in cash And cash equivalents $(112,836) Cash and cash equivalents Begining of quarter $ 164,987 Cash and cash equivalents End of quarter $ 52,151 AMERICAN REPUBLIC REALTY FUND I NOTES TO FINANCIAL STATEMENTS 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. Managements Discussion and Analysis of Financial Condition and Results of Operations. Occupancy levels of the Partnership's properties as of July 2, 1995 are as follows: Four Winds Apartments, Jacksonville, Florida 92.9% Forestwood Apartments, Bedford, Texas 96.6% Excess construction of new apartment units during the mid- 1980's affected the market areas where the Partnership properties are located and an over supply of apartment units resulted in lower rent and occupancy levels than originally anticipated. This overbuilding coupled with tax law reform, which occurred in 1986, has drastically slowed new construction. During 1994 the Partnership's apartment communities experienced an increase in revenues. When the Partnership's properties were acquired interest rates were substantially higher than they are today. By reducing the rates through refinancing the properties the Partnership has improved its cash flow. Large discounts were offered by past lenders on the Partnership debt which has also improved the Partnership's cash flow. The Partnership successfully refinanced Four Winds in June, 1992. New South Federal Savings Bank loaned the Partnership $2,750,000 collateralized by the Four Winds Apartments and a guarantee of the General Partner. First Union National Bank obtained the proceeds of the new loan plus a $350,000 Surplus Cash Mortgage Note in full satisfaction of its debt. In addition to guaranteeing this new loan the General Partner loaned an additional $100,000 to the Partnership to complete the refinance. In 1994 the Partnership obtained an assignment of the Surplus Cash Mortgage Note at a discounted price of $120,000. The current problems in today's real estate market were caused by overbuilding and the Tax Reform Act of 1986. Management intends to continue to operate the Partnership in its present form while investigating options to improve the Partnership's operations. The operations and value of the two remaining Partnership properties are such that your General Partner is not optimistic that you have any equity. However since you have had substantial tax deductions from the Partnership's losses it is prudent to keep the Partnership in operation as long as possible to avoid adverse tax consequences to Limited Partners today. The refinancing of both Partnership properties allows the Partnership to continue operating for another five years with the hope that we continue to see increases in rental income as a result of improved market conditions. The 1994 financial statements show an improvement in operations over 1993 primarily due to reduction in interest expense and an increase in operating revenues. On August 1, 1989, an affiliate of the General Partner loaned the Partnership $350,000 which was used to pay off certain debt at a discount. The discount resulted in a gain to the Partnership on forgiveness of debt totaling $424,538. The loan accrues interest at the rate of two percent over the prime rate. In February, 1991, Amrecorp Realty Inc., resigned as the Managing General Partner of the Partnership. As was communicated to all limited partners this step was taken in order to minimize any effect that Amrecorp's financial difficulties might have on the Partnership. Management of the Partnership's assets is performed by Univesco, Inc., a Texas corporation, Robert J. Werra, President. During the first quarter of 1993, the partnership was able to secure a new mortgage on Forestwood Apartments in Bedford, Texas. The partnership secured a $4,300,000, 9.125%, five year mortgage with Collateral Mortgage, Ltd. Under the agreement American Republic Realty Fund I paid $4,300,000 and gave a $200,000 promissory note to Lincolnshire Associates in full satisfaction of its previous mortgage obligation. Lincolnshire Associates was paid in full during 1993. 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. Exhibits 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. 2O 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 June 30, 1995. 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: August 11, 1995