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 June 30, 1996 Commission file number 0-11578
AMRECORP 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: (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
1
TABLE OF CONTENTS
Item 1. Financial Statements
The following Unaudited financial statements are filed herewith:
Consolidated Balance Sheet as of June 30, 1996 and
December 31, 1995.................................................3
Consolidated Statements of Operations for the Three and Six
Months Ended June 30, 1996 and 1995...............................4
Consolidated Statements of Cash Flows for the Six Months Ended
June 30, 1996 and 1995............................................5
Notes to Consolidated Financial Statement.........................6
Item 2. Results of Operations and Management's Discussion and Analysis of
Financial Condition...............................................7
Liquidity and Capital Resources...................................8
Other Information.................................................9
Signatures........................................................10
The statements, insofar as they relate to the period subsequent to
December 31, 1995, are Unaudited.
2
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements
AMERICAN REPUBLIC REALTY FUND I
Condensed Consolidated Balance Sheets
June 30 December 31
1996 1995
(Unaudited)
ASSETS
Real Estate assets, at cost
Land $ 1,822,718 $ 1,822,718
Buildings and improvements 14,925,164 14,925,164
------------ ------------
16,747,882 16,747,882
Less: Accumulated depreciation (8,103,822) (7,793,822)
------------ ------------
Real Estate, net 8,644,060 8,954,060
Cash including cash investments 16,597 19,047
Escrow deposits 236,212 102,508
Prepaid Expenses 50,257 23,596
Other assets 24,756 0
------------ ------------
TOTAL ASSETS $ 8,971,882 $ 9,099,211
============ ============
LIABILITIES AND PARTNERS' EQUITY:
LIABILITIES
Mortgage and notes payable $ 7,620,911 $ 7,998,325
Notes Payable to Affiliates 3,018,483 3,108,081
Amounts Due Affiliates 1,178,061 1,120,323
Real estate taxes payable 107,800 0
Security deposits 55,118 51,418
Accounts payable & accrued expenses 109,821 54,262
------------ ------------
Total liabilities 12,090,194 12,332,409
------------ ------------
Partners Capital (Deficit)
Limited Partners (3,172,824) (3,286,561)
General Partner 54,512 53,363
------------ ------------
Total Partners Capital (Deficit) (3,118,312) (3,233,198)
------------ ------------
Total Liability and Partners Equity $ 8,971,882 $ 9,099,211
============ ===========
See notes to Condensed Consolidated Financial Statements
3
AMERICAN REPUBLIC REALTY FUND I
Condensed Consolidated Statement of Operations
(Unaudited)
Three Months Ended Six Months Ended
June June 30
------------------ ----------------
1996 1995 1996 1995
---- ---- ---- ----
REVENUES
Rental income $ 581,766 $ 595,630 $ 1,177,098 $ 1,162,060
Other property 11,269 6,687 17,960 26,870
--------- --------- ----------- -----------
Total revenues 593,035 602,317 1,195,058 1,188,930
EXPENSES
Salaries & wages 75,639 62,823 138,462 129,938
Maintenance & repair 74,980 34,239 109,220 76,135
Utilities 48,000 44,591 92,590 93,146
Real estate taxes 60,900 60,900 121,800 101,040
General administratie 21,895 20,443 42,369 42,469
Contract services 27,020 20,214 47,234 47,152
Insurance 11,543 11,321 22,864 22,796
Interest 67,370 68,480 135,850 159,880
Depreciation and
amortization 155,000 155,000 310,000 300,000
Property management fees 29,688 30,420 59,783 59,439
-------- --------- ----------- -----------
Total expenses 572,035 508,431 1,080,172 1,031,995
-------- --------- ----------- -----------
NET INCOME (LOSS) $ 21,000 $ 93,886 $ 114,886 $ 156,935
========= ========== =========== ===========
NET INCOME PER SHARE $ 1.91 $ 8.54 $ 10.44 $ 14.27
See Notes to Condensed Consolidated Financial Statements
4
AMERICAN REPUBLIC REALTY FUND I
Condensed Consolidated Statement of Cash Flows
Six Months Ended
June 30
-------------------
1996 1995
---- ----
CASH FLOWS FROM OPERATING ACTIVITY
Net income (loss) $ 114,886 $ 156,935
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation and amortization 310,000 300,000
Net Effect of changes in operating accounts
Escrow deposits (133,704) (98,782)
Prepaid Expenses (26,661) (26,933)
Accrued Real Estate Taxes 107,800 99,712
Security deposits 3,700 (3,066)
Accounts Payable 55,559 77,591
Other assets (24,756) (8,000)
---------- ----------
Net cash used by operating activities 406,824 497,457
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Repayment of mortgage notes payable (377,414) (426,461)
Repayment of Notes payable to affiliate (89,598) 41,862
Repayment of other amounts due affiliates 57,738 (167,996)
---------- ----------
Net cash provided by investing activities (409,274) (552,595)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (2,450) (55,138)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 19,047 107,289
---------- ----------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 16,597 $ 52,151
========= ==========
See Notes to Condensed Consolidated Financial Statements
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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 regula-
tions, 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 MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION
Results of Operations
SECOND QUARTER 1996 COMPARED TO SECOND QUARTER 1995
- ---------------------------------------------------
Revenue from property operations decreased $ 4,282, or 0.71%, for the second
quarter of 1996, as compared to the 1995 second quarter. Rental income
decreased by $ 13,864 or 2.33% due to decreases in occupancy. Other income
decreased by $ 4,188 or 27.09% due primarily to increase in application fees
and damage charges. The following table illustrates the components:
Increase
(Decrease)
----------------
Rental income (30)
Other property (4,188)
----------------
Total (4,218)
================
Property operating expenses increased $ 34,427, or 6.4%, for the second
quarter of 1996, as compared to the same period in 1995, primarily due to
increases in salaries and wages, maintenance and repairs and contract services.
* Maintenance and repairs increased by $ 30,558, or 68.79% primarily
due to exterior painting.
* Contract services expense increased by $ 3,888, or 16.81% for interior
building repairs
* Interest expense decreased by $ 11,169 or 14.22% as a result of normal
amortization of the self-amortizing mortgage debt.
The following table illustrates the components by category:
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Increase
(Decrease)
----------------
Salaries & wages 4,754
Maintenance & repairs 30,558
Utilities (3,788)
Real estate taxes 5,160
General administrative (239)
Contract services 3,888
Insurance 431
Interest (11,169)
Depreciation and amortization 5,000
Property management fees (168)
----------------
Net Increase (Decrease) $ 34,427
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SIX MONTHS ENDED JUNE 1996 COMPARED TO SIX MONTHS ENDED JUNE 1995
Revenue from property operations increased $ 6,128 or 0.52%, for the first
Six months of 1996, as compared to the first Six months of 1995. The follow-
ing tables illustrates the components:
Increase
(Decrease)
----------------
Rental income 15,038
Other property (8,910)
----------------
Net Increase (Decrease) 6,128
================
Property operating expenses increased $ 48,177, or 4.67%, for the first Six
months of 1996, as compared to the same period in 1995, primarily due to
increases in maintenance and repairs, and real estate taxes.
* Maintenance and repairs increased by $ 33,085 or 43.46%, primarily
due to the increase in contract cleaning (house-keeping) on the
properties.
* Real estate taxes increased by $ 20,760, or 20.55%, as a result of
property valuation and anticipated increases in property tax rates.
* Interest expense decreased by 4 24,030, or 15.03%, as a result of
normal amortization of the self-amortizing mortgage debt.
The following table illustrates the components by category:
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Increase
(Decrease)
----------------
Salaries & wages 8,524
Maintenance & repairs 33,085
Utilities (556)
Real estate taxes 20,760
General administrative (100)
Contract services 82
Insurance 68
Interest (24,030)
Depreciation and amortization 10,000
Property management fees 344
----------------
Net Increase (Decrease) $ 48,177
================
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
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 third quarter of 1992, the partnership was able to secure a
new mortgage on Four Winds apartments in Orange Park, Florida. The partnership
secured a $2,750,000, 10.125% five year mortgage with New South Federal
Savings Bank. Under an agreement with First Union (formerly Southeast Bank for
Savings) American Republic Realty Fund I paid $2,670,000 in cash and executed
a promissory note in the amount of $350,000 in full satisfaction of the debt
owed to First Union. As an inducement for New South Federal Savings Bank
making the loan the General Partner guaranteed 35% of the new loan. In
addition, this agreement terminates all litigation with First Union. In order
to accomplish the closing of the loan on Four Winds it was necessary to
transfer the Forestwood Apartments to another entity known as Spencer Road,
Ltd. Upon limited partner approval this transfer took place just prior to the
closing of Four Winds loan.
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 satisfac-
tion of its previous mortgagee obligation. Lincolnshire Associates was paid if
full during 1993.
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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 partner-
ship, 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 September 30, 1995.
1 None
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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 7, 1996
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