SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________________ to ________________
Commission File No. 0-13556
Cluster Housing Properties
(A California Limited Partnership)
(Exact name of registrant as specified in its charter)
California 04-2817478
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
5110 Langdale Way, Colorado Springs CO 80906
(Address of principal executive offices) (Zip Code)
(719) 527-0544
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Sections 13 and 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 _X_ No ___
PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
CLUSTER HOUSING PROPERTIES
(a California Limited Partnership)
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
---------------
ASSETS
March 31,
1996 December 31,
(Unaudited) 1995
Property, at cost (Notes 2, 4, and 5):
Land $3,677,028 $3,677,028
Buildings and improvements 14,067,756 14,067,756
Equipment, furnishings and 1,309,859 1,295,545
fixtures
-------------- ---------------
19,054,643 19,040,329
Less accumulated depreciation (4,508,998) (4,418,093)
-------------- ---------------
14,545,645 14,622,236
Cash and cash equivalents (Notes 2 and 3) 592,984 480,389
Short-term investments (Note 2) 953,445 1,067,446
Real estate tax escrows 78,302 44,055
Deposits and prepaid expenses 1,693 1,693
Accounts receivable 631
-
Deferred expenses, net of
accumulated
amortization of $145,863 and $136,140 (Note 48,628 58,351
2)
-------------- ---------------
Total assets $16,220,697 $16,274,801
============== ===============
LIABILITIES AND PARTNERS' EQUITY
Mortgage notes payable (Note 5) 8,662,586 8,695,278
Accounts payable 21,480 42,245
Accrued expenses 203,545 164,298
Due to affiliates 22,286 23,173
(Note 7)
Rents received in advance 10,495
-
Tenant security 58,282 57,306
deposits
-------------- ---------------
Total 8,968,179 8,992,795
liabilities
Commitments and contingencies (Note 9)
Minority interest (Note 4) (8,895) (8,895)
Partners' equity (Note 7,261,413 7,290,901
6)
-------------- ---------------
Total liabilities and partners' equity $16,220,697 $16,274,801
============== ===============
CLUSTER HOUSING PROPERTIES
(a California Limited Partnership)
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
-------------
Three Months Ended
March 31,
1996 1995
Rental income $692,423 $657,290
Rental operating expenses 269,847 255,932
--------------- --------------
Net rental operating income (exclusive of items
shown separately below) 422,576 401,358
Interest expense 198,113 200,841
Depreciation and amortization 100,629 100,629
Other (income) and expenses:
Interest income (16,803) (21,692)
General and administrative 72,862 45,597
(Note 7)
--------------- --------------
56,059 23,905
--------------- --------------
Net income (loss) $67,775 $75,983
=============== ==============
Net income (loss) allocated to:
General Partners $3,389 $3,799
Per unit of Investor Limited
Partner interest:
32,421 units 1.99 2.23
issued
CLUSTER HOUSING PROPERTIES
(a California Limited Partnership)
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
(Unaudited)
-------------
Investor Total
General Limited Partners'
Partners Partners Equity
Balance at December 31, 1994 (159,147) 7,669,907 7,510,760
Cash distributions (26,449) (502,525) (528,974)
Net income 15,456 293,659 309,115
--------------- -------------- ---------------
Balance at December 31, 1995 (170,140) 7,461,041 7,290,901
Cash distributions (97,263) (97,263)
-
Net income 3,389 64,386 67,775
--------------- -------------- ---------------
Balance at March 31, 1996 ($166,751) $7,428,164 $7,261,413
=============== ============== ===============
CLUSTER HOUSING PROPERTIES
(a California Limited Partnership)
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Increase (decrease) in cash and cash equivalents
Three Months Ended
March 31,
1996 1995
Cash flows from operating activities:
Interest received $39,887 $15,278
Cash received from rental income 682,880 641,539
Administrative expenses (65,278) (70,056)
Rental operations expenses (293,429) (248,662)
Interest paid (198,113) (200,955)
--------------- --------------
Net cash provided by operating activities 165,947 137,144
Cash flows from investing activities:
Purchase of fixed assets (14,314)
Proceeds from maturities of short-term 0
investments
Cash (paid for) received from short-term investments 90,917 1,162
--------------- --------------
Net cash provided (used) by investing 76,603 1,162
activities
Cash flows from financing activities:
Distributions to partners (97,263) (145,041)
Distributions to minority 0
interest
Deposits (678)
-
Cash paid for deferred costs -
Principal payments on mortgage notes payable (32,692) (29,878)
--------------- --------------
Net cash used by financing (129,955) (175,597)
activities
--------------- --------------
Net increase (decrease) in cash and cash 112,595 (37,291)
equivalents
Cash and cash equivalents at beginning of the period 480,389 195,407
--------------- --------------
Cash and cash equivalents at end of the period $592,984 $158,116
=============== ==============
CLUSTER HOUSING PROPERTIES
(a California Limited Partnership)
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Increase (decrease) in cash and cash equivalents
-------------
Reconciliation of net income to net cash provided by operating activities:
Three Months
Ended
March 31,
1996 1995
Net income $67,775 $75,983
Adjustments to reconcile net income to net cash
provided by operating
activities:
Depreciation and amortization 100,629 100,629
Change in assets and liabilities net of effects
from investing and financing activities:
Decrease in real estate tax (34,247) (26,567)
escrows
Increase in accounts and interest 23,715 (6,414)
receivable
Increase (decrease) in
accounts
payable and accrued expenses 18,946 13,727
Increase (decrease) in due to affiliates (1,328) (4,463)
Increase (decrease) in rent received in (10,495) (13,916)
advance
Increase (decrease) in tenant security 952 (1,835)
deposits
--------------- --------------
Net cash provided by operating activities $165,947 $137,144
=============== ==============
CLUSTER HOUSING PROPERTIES
(A California Limited Partnership)
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
----------
1. Organization of Partnership:
Cluster Housing Properties (a California Limited Partnership) (the
"Partnership"), formerly Berry and Boyle Cluster Housing Properties, was formed
on August 8, 1983. The Partnership issued all of the General Partnership
Interests to three General Partners in exchange for capital contributions
aggregating $2,000. Stephen B. Boyle and GP L'Auberge Communities, L.P., (a
California Limited Partnership), formerly Berry and Boyle Management, are the
General Partners. In September, 1995, with the consent of Limited Partners
holding a majority of the outstanding Units, as well as the consent of the
mortgage lenders for the Partnership's three properties, Richard G. Berry
resigned as a general partner of the Partnership.
A total of 2,000 individual Limited Partners owning 32,421 units have
contributed $16,210,500 of capital to the Partnership. At December 31, 1995, the
total number of Limited Partners was 2,013. Except under certain limited
circumstances, as defined in the Partnership Agreement, the General Partners are
not required to make any additional capital contributions. The General Partners
or their affiliates will receive various fees for services and reimbursement for
various organizational and selling costs incurred on behalf of the Partnership.
The accompanying consolidated financial statements present the activity of the
Partnership for the three months ended March 31, 1996 and 1995.
The Partnership will continue until December 31, 2010, unless terminated earlier
by the sale of all, or substantially all, of the assets of the Partnership, or
otherwise in accordance with the provisions of Section 16 of the Partnership
Agreement.
2. Significant Accounting Policies:
A. Basis of Presentation
The consolidated financial statements include the accounts of the
Partnership and its subsidiaries: Sin Vacas Joint Venture (Sin Vacas),
Autumn Ridge Joint Venture (Autumn Ridge) and Villa Antigua Joint
Venture (Villa Antigua). All intercompany accounts and transactions
have been eliminated in consolidation. The Partnership follows the
accrual basis of accounting.
B. Cash and Cash Equivalents
The Partnership considers all highly liquid debt instruments purchased
with a maturity of three months or less to be cash equivalents. The
carrying value of cash and cash equivalents approximates fair value. It
is the Partnership's policy to invest cash in income-producing
temporary cash investments. The Partnership mitigates any potential
risk from such concentration of credit by placing investments with high
quality financial institutions.
C. Short-term Investments
At March 31, 1996, short term investments consist solely of various
forms of U. S. Government backed securities, with an aggregate par
value of $961,040, which mature in June 1996. In 1994, the Partnership
adopted Statement of Financial Accounting Standards No. 115,
"Accounting for Certain Investments in Debt and Equity Securities". The
Partnership has the intent and ability to hold its short term
investments to maturity. Accordingly, these securities have been
recorded at amortized cost, which approximates market value. There was
no cumulative effect recorded as a result of this accounting change.
D. Significant Risks and Uncertainties
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ
from those estimates.
E. Depreciation
Depreciation is provided for by the use of the straight-line method
over estimated useful lives as follows:
Buildings and improvements 39-40 years
Equipment, furnishings and fixtures 5-15 years
F. Deferred Expenses
Costs of obtaining the mortgages on the properties are being amortized
over the term of the related mortgage notes payable using the
straight-line method. Fees paid to certain of the property developers
were amortized over the term of the services provided using the
straight-line method. Any unamortized costs remaining at the date of a
refinancing are expensed in the year of refinancing.
G. Income Taxes
The Partnership is not liable for Federal or state income taxes because
Partnership income or loss is allocated to the Partners for income tax
purposes. If the Partnership's tax returns are examined by the Internal
Revenue Service or state taxing authority and such an examination
results in a change in Partnership taxable income (loss), such change
will be reported to the Partners.
H. Rental Income
Leases require the payment of rent in advance, however, rental income
is recorded as earned.
I. Long-Lived Assets
The Partnership's long-lived assets include property and equipment and
deferred expenses. The Partnership will evaluate the possible
impairment of long-lived assets whenever events or circumstances
indicate that the carrying value of the assets may not be recoverable.
3. Cash and Cash Equivalents:
Cash and cash equivalents at March 31, 1996 and December 31, 1995 consisted of
the following:
1996 1995
Cash on hand ............................. $ 90,694 $ 30,848
Certificate of deposit ................... 202,763 100,000
Money market accounts .................... 299,527 349,541
$592,984 $480,389
4. Joint Venture and Property Acquisitions:
The Partnership has invested in three properties located in Scottsdale and
Tucson, Arizona and Colorado Springs, Colorado. The success of the Partnership
will depend upon factors which are difficult to predict including general
economic and real estate market conditions, both on a national basis and in the
areas where the Partnership's investments are located.
Sin Vacas
On October 25, 1985, the Partnership acquired a majority interest in the Sin
Vacas Joint Venture, which owns and operates the Villas at Sin Vacas, a 72-unit
residential property located in Tucson, Arizona. Since the Partnership owns a
majority interest in the Sin Vacas Joint Venture, the accounts and operations of
the Sin Vacas Joint Venture have been consolidated into those of the
Partnership.
The Partnership made initial cash payments in the form of capital contributions
totaling $2,458,507 and funded $398,949 of property acquisition costs which were
treated as a capital contribution to the joint venture. Since completion of
construction, the Partnership has made additional contributions totaling
$153,757. At March 31 1996, the total capital contributions and acquisition
costs incurred were $2,592,527 and $418,686, respectively.
For the three months ended March 31, 1996 and 1995 the Sin Vacas Joint Venture
had net income of $18,504, and $26,327, respectively. March 31 1996
Net cash from operations (as defined in the joint venture agreement) is to be
distributed as available to each joint venture partner quarterly as follows:
First, to the Partnership, an amount equal to 8.75% per annum,
noncumulative (computed daily on a simple noncompounded basis from the
date of completion funding) of the Partnership's capital investment, as
defined in the joint venture agreement;
Second, the balance 70% to the Partnership and 30% to the co-venturer.
All losses from operations and depreciation for the Sin Vacas Joint Venture are
allocated 99% to the Partnership and 1% to the co-venturer.
All profits from operations, to the extent of cash distributions, shall first be
allocated to the Partnership and co-venturer in the same proportion as the cash
distribution. Any remaining profits are allocated 70% to the Partnership and 30%
to the co-venturer.
In the case of certain capital transactions and distributions as defined in the
joint venture agreement, the allocation of related profits, losses and cash
distributions, if any, would be different than as described above and would be
effected by the relative balances in the individual partners' capital accounts.
Pinecliff
On July 16, 1986, the Partnership acquired Pinecliff (formerly Autumn Ridge), a
96-unit residential property located in Colorado Springs, Colorado and
simultaneously contributed the property to the Autumn Ridge Joint Venture
comprised of the Partnership and an affiliate of the property developer. Since
the Partnership owns a majority interest in the Autumn Ridge Joint Venture, the
accounts and operations of the Autumn Ridge Joint Venture have been consolidated
into those of the Partnership.
The Partnership made initial cash payments in the form of capital contributions
totaling $3,819,397 and funded $546,576 of property acquisition costs which were
treated as a capital contribution to the Autumn Ridge Joint Venture. Since
completion of construction, the Partnership has made additional contributions
totaling $314,097. At March 31 1996 the total capital contributions and
acquisition costs incurred were $4,182,595 and $497,475, respectively.
For the three months ended March 31, 1996 and 1995 the Autumn Ridge Joint
Venture had net income of $31,484 and $19.088, respectively.
Net cash from operations (as defined in the joint venture agreement) is to be
distributed as available to each joint venture partner quarterly as follows:
First, to the Partnership, an amount equal to 8% per annum,
noncumulative (computed daily on a simple noncompounded basis from the
date of completion funding) of the Partnership's capital investment, as
defined in the joint venture agreement;
Second, the balance 82% to the Partnership and 18% to the co-venturer.
All losses from operations and depreciation for the Autumn Ridge Joint Venture
are allocated 100% to the Partnership.
All profits from operations, to the extent of cash distributions, shall first be
allocated to the Partnership and co-venturer in the same proportion as the cash
distribution. Any remaining profits are allocated 82% to the Partnership and 18%
to the co-venturer.
In the case of certain capital transactions and distributions as defined in the
joint venture agreement, the allocation of related profits, losses and cash
distributions, if any, would be different than as described above and would be
effected by the relative balances in the individual partners' capital accounts.
Villa Antigua
On June 11, 1987, the Partnership acquired a majority interest in the Villa
Antigua Joint Venture, which owns and operates Villa Antigua, an 88-unit
residential property located in Scottsdale, Arizona. Since the Partnership owns
a majority interest in the Villa Antigua Joint Venture, the accounts and
operations of the Villa Antigua Joint Venture have been consolidated into those
of the Partnership.
The Partnership made initial cash payments in the form of capital contributions
totaling $2,494,677 and funded $381,729 of property acquisition costs which were
treated as a capital contribution to the Villa Antigua Joint Venture. Since
completion of construction, the Partnership has made additional contributions
totaling $60,832. At March 31 1996, the total capital contributions and
acquisition costs were $2,555,509 and $381,729, respectively.
The Villa Antigua Joint Venture had net income of $76,436 and $49,640 for the
three months ended March 31,1996 and 1995.
Net cash from operations (as defined in the joint venture agreement) is to be
distributed as available to each joint venture partner quarterly as follows:
First, to the Partnership, an amount equal to 10% per annum,
noncumulative (computed daily on a simple noncompounded basis from the
date of completion funding) of the Partnership's adjusted capital
investment, as defined in the joint venture agreement;
Second, the balance 70% to the Partnership and 30% to the co-venturer.
All losses from operations and depreciation for the Villa Antigua Joint Venture
are allocated 99% to the Partnership and 1% to the co-venturer.
All profits from operations, to the extent of cash distributions, shall first be
allocated to the Partnership and co-venturer in the same proportion as the cash
distributions; however, if for any taxable year there are no cash distributions,
profits are allocated 99% to the Partnership and 1% to the co-venturer.
In the case of certain capital transactions and distributions as defined in the
joint venture agreement, the allocation of related profits, losses and cash
distributions, if any, would be different than as described above and would be
effected by the relative balances in the individual partners' capital accounts.
The Sin Vacas Joint Venture, the Autumn Ridge Joint Venture and the Villa
Antigua Joint Venture are sometimes collectively referred to as the "Joint
Ventures".
5. Mortgage Notes Payable:
All of the property owned by the Partnership is pledged as collateral for the
nonrecourse mortgage notes payable outstanding at March 31, 1996 and December
31, 1995 which consisted of the following:
1996 1995
Villas at Sin Vacas .................... $2,457,979 $2,467,255
Pinecliff .............................. 3,150,031 3,161,919
Villa Antigua .......................... 3,054,576 3,066,104
$8,662,586 $8,695,278
Sin Vacas
On June 30, 1992, Villas at Sin Vacas refinanced its permanent loan using the
proceeds of a new first mortgage loan in the amount of $2,575,000. Under the
terms of the note, monthly principal and interest payments of $21,830, based on
a fixed interest rate of 9.125%, are required over the term of the loan. The
balance of the note will be due on July 15, 1997.
Pinecliff
On June 30, 1992, Pinecliff refinanced its permanent loan using the proceeds of
a new first mortgage loan in the amount of $3,300,000. Under the terms of the
note, monthly principal and interest payments of $27,976 are required over the
term of the loan, based on a fixed interest rate of 9.125%. The balance of the
note will be due on July 15, 1997.
Villa Antigua
On June 30, 1992, Villa Antigua refinanced its permanent loan using the proceeds
of a new first mortgage loan in the amount of $3,200,000. Under the terms of the
note, monthly principal and interest payments of $27,128, based on a fixed
interest rate of 9.125%, are required over the term of the loan. The balance of
the note will be due on July 15, 1997.
Interest accrued at March 31, 1996 and December 31, 1995 consisted of the
following:
1996 1995
Villas at Sin Vacas ........................ $ 9,381 $ 9,381
Pinecliff .................................. 12,022 12,022
Villa Antigua .............................. 11,658 11,658
$33,061 $33,061
The aggregate principal amounts of long term borrowings due during the calendar
years 1996 and 1997, respectively, are $135,348, and $8,559,930.
The principal balance of the mortgage notes payable appearing on the
consolidated balance sheet approximates the fair value of such notes.
6. Partners' Equity:
Under the terms of the Partnership Agreement profits are allocated 95% to the
Limited Partners and 5% to the General Partners; losses are allocated 99% to the
Limited Partners and 1% to the General Partners.
Cash distributions to the partners are governed by the Partnership Agreement and
are made, to the extent available, 95% to the Limited Partners and 5% to the
General Partners.
The allocation of the related profits, losses, and distributions, if any, would
be different than described above in the case of certain events as defined in
the Partnership Agreement, such as the sale of an investment property or an
interest in a joint venture partnership.
7. Related-Party Transactions:
Due to affiliates at March 31, 1996 and December 31, 1995 consisted of
reimbursable costs payable to L'Auberge Communities, Inc., an affiliate of the
General Partners, in the amounts of $13,391, and $14,278, respectively and
distributions payable to the Villa Antigua co-venturer of $0 and $8,895,
respectively.
For the three months March 31, 1996 and 1995, general and administrative
expenses included $27,268 and $17,703, respectively, of salary reimbursements
paid to the General Partners for certain administrative and accounting personnel
who performed services for the Partnership.
The officers and principal shareholders of Evans Withycombe, Inc., the developer
and property manager of the Villas at Sin Vacas and Villa Antigua properties and
an affiliate of the co-venturers of those joint ventures, together hold a two
and one half percent cumulative profit or partnership voting interest in LP
L'Auberge Communities, a California Limited Partnership, formerly Berry and
Boyle, which is the principal limited partner of GP L'Auberge Communities, L.P.
During the three months ended March 31, 1996 and 1995, $21,679 and $21,107,
respectively, of property management fees were paid or accrued to Evans
Withycombe, Inc.
Residential Services - L'Auberge, formerly Berry and Boyle Residential Services,
the property manager of Pinecliff, is an affiliate of the General Partners of
the Partnership. For the three months ended March 31, 1996 and 1995 $12,308 and
$11,574, respectively, of property management fees were paid or accrued to
Residential Services - L'Auberge.
8. Subsequent Event:
On May 14, 1996, the Partnership and certain affiliates consummated an agreement
with Evans Withycombe Management, Inc. and certain of its affiliates ("EWI")
which separated the interests of EWI and the Partnership, thus affording the
Partnership greater flexibility in the operation and disposition of the
properties...In consideration of a payment by the Partnership to EWI of $73,775,
for EWI (i) to relinquish its contract to manage Sin Vacas and Villa Antigua and
its option to exercise its rights of first refusal with regard to the sale of
those properties and (ii) to assign all of its interest in the Sin Vacas Joint
Venture and the Villa Antigua Joint Venture to the Partnership (while preserving
the economic interests of the venturer in these Joint Ventures), resulting in
the dissolution of the Sin Vacas Joint Venture and the Villa Antigua Joint
Venture.
================================================================================
================================================================================
-15-
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Liquidity and Capital Resources
In connection with its capitalization, the Partnership admitted investors who
purchased a total of 32,421 Units aggregating $16,210,500. These offering
proceeds, net of organizational and offering costs of $2,431,575, provided
$13,778,925 of net proceeds to be used for the purchase of income-producing
residential properties, including related fees and expenses, and working capital
reserves. The Partnership expended $10,410,263 to (i) acquire its joint venture
interests in the Sin Vacas Joint Venture, the Villa Antigua Joint Venture, and
the Autumn Ridge Joint Venture, (ii) to pay acquisition expenses, including
acquisition fees to one of the General Partners, and (iii) to pay certain costs
associated with the refinancing of the Autumn Ridge permanent loan. The
Partnership distributed $1,731,681 to the Limited Partners as a return of
capital resulting from construction cost savings with respect to the Sin Vacas,
Autumn Ridge and Villa Antigua projects and other excess offering proceeds. The
remaining net proceeds of $1,636,981 were used to establish initial working
capital reserves. These reserves may be used periodically to enable the
Partnership to meet its various financial obligations including contributions to
the various joint ventures that may be required. Through March 31 1996, $218,258
cumulatively was contributed to the joint ventures for this purpose.
The working capital reserves of the Partnership consist of cash and cash
equivalents and short-term investments. Together these amounts provide the
Partnership with the necessary liquidity to carry on its day-to-day operations
and to make necessary contributions to the various joint ventures. Thus far in
1996, the aggregate net increase in working capital reserves was $21,678. This
increase resulted primarily from cash provided by operations of $165,947 offset
by distributions to partners of $97,263, purchase of fixed assets of $14,314 and
$32,692 of principal payments on mortgage notes payable.
Property Status
Villas at Sin Vacas
As of March 31, 1996, the property was 90% occupied, compared to 90%
approximately one year ago. At March 31, 1996 and 1995, the market rents for the
various unit types were as follows:
Unit Type 1996 1995
One bedroom one bath ......................... $ 835 $ 835
Two bedroom two bath ......................... 1,050 1,050
Three bedroom two bath ....................... 1,200 1,200
Autumn Ridge
As of March 31, 1996, the property was 94% occupied, compared to 82%
approximately one year ago. At March 31, 1996 and 1995, the market rents for the
various unit types were as follows:
Unit Type 1996 1995
One bedroom one bath ....................... $ 898 $ 885
Two bedroom two bath ....................... 1,100 1,088
Villa Antigua
As of March 31, 1996, the property was 100% occupied, compared to 93%
approximately one year ago. At March 31, 1996 and 1995, the market rents for the
various unit types were as follows:
Unit Type 1996 1995
One bedroom one bath ............... $ 735 $ 720
Two bedroom two bath ............... 953 935
Three bedroom two bath ............. 1,070 1,050
Results of Operations
For the three months ended March 31, 1996, the Partnership's operating results
were comprised of its share of the income and expenses from the Sin Vacas,
Autumn Ridge and Villa Antigua Joint Ventures, as well as partnership level
interest income earned on short term investments, reduced by administrative
expenses. A summary of these operating results appears below:
Sin Autumn Villa Partnership Consolidated
Vacas Ridge Antigua Level Totals
Operating revenue $188,648 $247,655 $256,120 $692,423
-
Operating expenses 85,192 102,089 80,316 2,250 269,847
------------ ---------- ----------- ------------ -------------
Net operating income 103,456 145,566 175,804 422,576
-
Other (income) and expenses:
Interest income (220) (489) (403) (15,691) (16,803)
General and administrative 72,862 72,862
- - -
Depreciation and 28,958 42,530 29,141 100,629
amortization -
Interest 56,214 72,041 69,858 198,113
-
------------ ---------- -----------
------------ -------------
84,952 114,082 98,596 57,171 354,801
------------ ---------- ----------- ------------ -------------
=============
Net income (loss) $18,504 $31,484 $76,436 ($57,171) $67,775
============ ========== =========== ============ =============
For the three months ended March 31, 1995, the Partnership's operating results
were comprised of its share of the income and expenses from the Sin Vacas,
Autumn Ridge and Villa Antigua Joint Ventures, as well as partnership level
interest income earned on short term investments, reduced by administrative
expenses. A summary of these operating results appears below
Sin Autumn Villa Partnership Consolidated
Vacas Ridge Antigua Level Totals
Operating revenue $193,574 $233,464 $230,787 $657,290
-
Operating expenses 79,501 97,045 79,386 255,932
-
---------- ----------- ----------- ------------ --------------
Net operating income 114,073 136,419 151,401 401,893
-
Other (income) and expenses:
Interest income (21,157) (21,692)
General and administrative 1,800 1,768 1,800 40,229 45,597
Depreciation and 28,958 42,530 29,141 100,629
amortization -
Interest 56,988 73,033 70,820 200,841
-
---------- ----------- -----------
------------ --------------
87,746 117,331 101,761 19,072 325,910
---------- ----------- ----------- ------------ --------------
==============
Net income (loss) $26,327 $19,088 $49,640 ($19,072) $75,983
========== =========== =========== ============ ==============
Comparison of Operating Results for the Three Months Ended March 31, 1996 and
1995:
While interest income decreased by $4,889 (22.5%) due to lower interest rates on
the Partnership's short-term investments, the operating income increased
$19,683 (4.9%). Transition costs, including legal and accounting fees,
associated with the outsourcing of much of the Partnership's administration
work, and relocating the remaining administration, financial and investor
service functions to a more cost efficient location in Colorado Springs,
Colorado, the Partnership incurred a $27,000 (60%) increase of general
and administration costs.
Thus far in 1996, the Partnership has made the following cash distributions
to its Partners:
Total
Limited Partners $97,263
General Partners -
$97,263
PART II-OTHER INFORMATION
ITEM 1. Legal Proceedings
Response: None
ITEM 2. Changes in Securities
Response: None
ITEM 3. Defaults Upon Senior Securities
Response: None
ITEM 4. Submission of Matters to a Vote of Security Holders
Response: None
ITEM 5. Other Information
Response: None
ITEM 6. Exhibits and Reports on Form 8-K
Response: 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.
CLUSTER HOUSING PROPERTIES
By: GP L'Auberge Communities, L.P., a California
Limited Partnership, General Partner
By: L'Auberge Communities, Inc., its General Partner
By: __/s/ Stephen B. Boyle_________________________________
Stephen B. Boyle, President
Date: May 15, 1996