UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1995
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 number 0-15748
CONNECTICUT GENERAL EQUITY PROPERTIES-I LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)
Connecticut 06-1094176
(State of Organization) (I.R.S. Employer Identification
No.)
900 Cottage Grove Road, South Building
Bloomfield, Connecticut 06002
(Address of principal executive offices)
Telephone Number: (203) 726-6000
Indicate by checkmark 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 X No
Part I - Financial Information
CONNECTICUT GENERAL EQUITY PROPERTIES-I LIMITED PARTNERSHIP
(a Connecticut limited partnership)
Balance Sheets
March 31, December 31,
1995 1994
Assets (Unaudited) (Audited)
Property and improvements, at cost:
Land and improvements $2,942,807 $2,810,237
Buildings 12,883,666 13,002,842
Tenant improvements 2,896,798 2,879,677
18,723,271 18,692,756
Less accumulated depreciation 6,854,301 6,686,953
Net property and improvements 11,868,970 12,005,803
Equity investment in unconsolidated joint venture 3,085,162 3,043,024
Cash and cash equivalents 605,553 368,015
Accounts receivable (net of allowance of $8,136
in 1995 and $1,684 in 1994) 39,995 97,349
Prepaid expenses and other assets 95,139 76,872
Deferred charges, net 264,335 295,340
Total $15,959,154 $15,886,403
Liabilities and Partners' Capital (Deficit)
Liabilities:
Accounts payable (including $51,756 in 1995
and $9,324 in 1994 due to affiliates) $241,993 $220,449
Tenant security deposits 106,854 102,076
Unearned income 66,776 6,269
Total liabilities 415,623 328,794
Partners' capital (deficit):
General Partner:
Capital contribution 1,000 1,000
Cumulative net income 144,295 143,212
Cumulative cash distributions (156,705) (156,705)
(11,410) (12,493)
Limited partners (39,236.25 Units):
Capital contributions, net of
offering costs 35,602,279 35,602,279
Cumulative net income 2,656,662 2,549,406
Cumulative cash distributions (22,704,000) (22,581,583)
15,554,941 15,570,102
Total partners' capital 15,543,531 15,557,609
Total $15,959,154 $15,886,403
<FN>
The Notes to Consolidated Financial Statements are an integral part of
these statements.
CONNECTICUT GENERAL EQUITY PROPERTIES-I LIMITED PARTNERSHIP
(a Connecticut limited partnership)
Statements of Operations
For the Three Months Ended March 31, 1995 and 1994
(Unaudited)
1995 1994
Income:
Base rental income $542,356 $559,569
Other operating income 48,430 56,762
Interest income 7,865 8,554
598,651 624,885
Expenses:
Property operating expenses 240,128 236,897
General and administrative 45,802 47,183
Fees and reimbursements to affiliates 59,082 67,250
Depreciation and amortization 187,438 196,192
532,450 547,522
Net partnership operating income 66,201 77,363
Other income:
Equity interest in joint venture net income 42,138 4,947
Net income $108,339 $82,310
Net income:
General Partner $1,083 $ 823
Limited partners 107,256 81,487
$108,339 $82,310
Net income per Unit $2.73 $ 2.08
Cash distribution per Unit $3.12 $ 3.66
<FN>
The Notes to Consolidated Financial Statements are an integral part of
these statements.
CONNECTICUT GENERAL EQUITY PROPERTIES-I LIMITED PARTNERSHIP
(a Delaware limited partnership)
Statements of Cash Flows
For the Three Months Ended March 31, 1995 and 1994
(Unaudited)
1995 1994
Cash flows from operating activities:
Net income $108,339 $82,310
Adjustments to reconcile net income to net
cash provided by operating activities:
Deferred rent credits 11,837 14,367
Depreciation and amortization 187,438 196,192
Equity interest in joint venture
net income (42,138) (4,947)
Accounts receivable 57,354 85,830
Accounts payable 64,563 151,524
Other, net 47,018 (9,952)
Net cash provided by operating
activities 434,411 515,324
Cash flows from investing activities:
Purchases of property and improvements (73,534) (52,611)
Payment of leasing commissions (922) (7,984)
Net cash used in investing activities (74,456) (60,595)
Cash flows from financing activities:
Cash distribution to limited partners (122,417) (143,606)
Net increase in cash and cash equivalents 237,538 311,123
Cash and cash equivalents, beginning of year 368,015 693,863
Cash and cash equivalents, end of period $605,553 $1,004,986
<FN>
The Notes to Consolidated Financial Statements are an integral part of
these statements.
CONNECTICUT GENERAL EQUITY PROPERTIES-I LIMITED PARTNERSHIP
(a Connecticut limited partnership)
Notes to Financial Statements
(Unaudited)
Readers of this quarterly report should refer to the CONNECTICUT
GENERAL EQUITY PROPERTIES-I LIMITED PARTNERSHIP'S ("the Partnership")
audited financial statements for the year ended December 31, 1994 which are
included in the Partnership's 1994 Annual Report, as certain footnote
disclosures which would substantially duplicate those contained in such
audited financial statements have been omitted from this report.
1. Basis of Accounting and Significant Accounting Policies
a) Basis of Presentation: The accompanying financial statements were
prepared in accordance with generally accepted accounting
principles. It is the opinion of management that the financial
statements presented reflect all the adjustments necessary for a
fair presentation of the financial condition and results of
operations. Certain amounts in the 1994 financial statements have
been reclassified to conform with the 1995 presentation.
b) Cash and Cash Equivalents: Short-term investments with a maturity
of three months or less at the time of purchase are reported as
cash equivalents.
2. Unconsolidated Joint Venture - Summary Information
The Partnership owns a 26.08% interest in the Westford Office
Venture which owns the Westford Corporate Center in Westford,
Massachusetts. The remaining equity interest in the venture is held by
CIGNA Income Realty-I Limited Partnership, an affiliated limited
partnership.
Operations information for the Westford Office Venture for the
three months ended March 31, 1995 and 1994:
1995 1994
Total income of venture $493,932 $346,173
Net income of venture 161,572 18,970
Total assets and liabilities for the Westford Office Venture:
March 31, December 31,
1995 1994
Total assets $12,874,632 $12,671,892
Total liabilities 790,488 749,320
CONNECTICUT GENERAL EQUITY PROPERTIES-I LIMITED PARTNERSHIP
(a Connecticut limited partnership)
Notes to Financial Statements - Continued
(Unaudited)
3. Deferred Charges
Deferred charges consist of the following:
March 31, December 31,
1995 1994
Deferred leasing commissions $881,357 $880,435
Accumulated amortization (680,567) (660,477)
200,790 219,958
Deferred rent credits 63,545 75,382
$264,335 $295,340
4. Transactions with Affiliates
Fees and other expenses incurred by the Partnership related to the
General Partner or its affiliates are as follows:
Three Months Ended Unpaid at
March 31, March 31,
1995 1994 1995
Partnership management fee(a) $35,147 $46,478 $33,210
Property management fee (b)(c) 12,885 13,355 8,269
Reimbursement (at cost) of
out-of-pocket expenses 11,050 7,417 10,277
$59,082 $67,250 $51,756
[FN]
(a) Includes management fees attributable to the Partnership's 26.08%
interest in the Westford Office Venture.
[FN]
(b) Does not include management fees of $7,350 and $5,291 attributable
to the Partnership's 26.08% interest in the Westford Office Venture
for the three months ended March 31, 1995 and 1994, respectively.
[FN]
(c) Does not include property management fees earned by independent
management companies of $26,555 and $27,486 for the three months
ended March 31, 1995 and 1994, respectively. Certain property
management services have been contracted by an affiliate of the
General Partner on behalf of the Partnership and are paid directly
by the Partnership to the third party companies.
CONNECTICUT GENERAL EQUITY PROPERTIES-I LIMITED PARTNERSHIP
(a Connecticut limited partnership)
Notes to Financial Statements - Continued
(Unaudited)
5. Subsequent Events
Westside Industrials consists of a number of one-story industrial
warehouse buildings with total square footage on March 31, 1995 of 63,080.
On April 27, 1995, the Partnership sold building #6 (totalling 12,600
square feet) for a gross sales price of $365,400. After deducting closing
costs and expenses, the Partnership netted approximately $341,000. The
Partnership does not expect to record a gain or loss as a result of the
sale.
On April 5, 1995, the Westford Office Venture paid a distribution
of $2,000,000 to the venture partners, of which the Partnership's share was
$521,600.
On May 15, 1995, the Partnership paid a distribution of $196,576 to
limited partners and $3,554 to the General Partner.
CONNECTICUT GENERAL EQUITY PROPERTIES-I LIMITED PARTNERSHIP
(a Connecticut limited partnership)
Management's Discussion and Analysis of Financial
Condition and Results of Operations
Liquidity and Capital Resources
At March 31, 1995, the Partnership's cash and cash equivalents and
the Partnership's share of cash and cash equivalents from the Westford
Office Venture totalled $605,553 and $586,666, respectively, which will be
used to fund liabilities, Partnership reserves and a distribution to
partners. The Partnership paid the first quarter 1995 cash distribution of
$196,576 or $5.01 per Unit on May 15, 1995, representative of the
quarter's adjusted cash from operations, including adjustments to reserves.
The Partnership's distributions from operations for the remainder of the
year should reflect actual operating results subject to changes in reserves
for liabilities or leasing risk.
Early in 1995, a user/owner approached the manager for the Westside
property and offered to buy vacant building #6 (12,600 square feet,
representing 100% of the vacant space at March 31, 1995) at a gross price
of $29 per square foot. On April 27, 1995, the Partnership sold building
#6 to JACLS Holding Company for a gross sales price of $365,400. After
closing costs and expenses, the Partnership netted approximately $341,000.
The Partnership expects to record no gain or loss as a result of the sale.
The sale, reflecting an above market sales price, allows the Partnership to
convert a vacancy and potential leasing problem into distributable cash to
the partners. The net proceeds will be distributed to partners along with
the second quarter distribution on August 15, 1995.
Operations at Westside for the first quarter of 1995 produced
$3,000 of adjusted cash from operations after tenant improvements and
leasing commissions of $17,500. After the sale of building #6, the
property is 100% occupied. Leasing exposure at the start of 1995,
exclusive of building #6, totalled 35,120 square feet. During the first
quarter, one lease for 4,000 square feet was renewed. An additional 17,120
is expected to be renewed during the remainder of the year. A lease for a
tenant currently occupying 14,000 square feet (not included in the expected
to be renewed numbers) expired on January 31, 1995. The tenant, currently
held over as a month to month, has requested to stay provided additional
parking is provided. Although a lot is available from an adjacent property
owner and discussions have taken place, the cost of purchasing a lot may
not be recoverable by increases in rent.
Lake Point's adjusted cash from operations for the first quarter of
1995 totalled approximately $178,000 after $8,000 of capital improvements.
Based on the level of leasing activity planned at the start of the year,
tenant improvements and leasing commissions would approximate $380,000.
Additionally, building improvements are budgeted at $55,000. The property
was 100% occupied at March 31, 1995. The 1995 leasing plan for the
property includes renewals representing 27,102 square feet and new leases
representing 22,644 square feet. During the first quarter, the renewals
planned at the start of the year had not been completed but negotiations
began for an early renewal with a tenant occupying 27,360 square feet
expiring in 1997. New leases representing 10,740 square feet were executed
during the first quarter. In addition, an existing tenant (7,296 square
feet) expanded by an additional 4,224 square feet for a period of five
months and extended the existing lease to coincide.
Woodlands Plaza generated $110,000 of adjusted cash from operations
for the first quarter of 1995. Leasing exposure for 1995 is 24,168 square
feet, or 34% of net rentable area, including an early termination of a
10,319 square foot tenant. During the first quarter, an existing tenant
expanded by 1,804 square feet for an eight month period. Tenant finish and
leasing costs for leasing planned in 1995 has been estimated to be in the
$13 to $15 per square foot range.
At Westford Corporate Center, adjusted cash from operations for the
first quarter was $297,000 ($77,500 attributable to the Partnership's
interest) with no tenant improvements or leasing commissions for the
quarter. The property remains 100% occupied. Capital expenditures for the
year have been planned at approximately $160,000.
CONNECTICUT GENERAL EQUITY PROPERTIES-I LIMITED PARTNERSHIP
(a Connecticut limited partnership)
Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
Results of Operations
Rental income decreased by approximately $17,000 for the three
months ended March 31, 1995, as compared with the same period in 1994, as a
result of the tenant changes at each of the Partnership's properties.
Rental income at Woodlands increased approximately $51,000 due to extensive
leasing activity at the property during 1994. At Westside, rental income
decreased approximately $57,000 due to the loss of 7,560 occupied square
feet from the sale of buildings #1 and #2 in April 1994 and the loss of
tenants occupying 12,600 square feet in the latter half of 1994. In
addition, 1994 included the residual of a lease termination fee from 1993.
Rental income at Lake Point decreased approximately $11,000 despite
increased average occupancy due to the renewal of several tenants at lower
rates in the second quarter of 1994.
Property operating expenses increased as a result of increased
repairs and maintenance expenses at Westside, Lake Point and Woodlands for
the three months ended March 31, 1995, as compared with the same period in
1994. The increase was the result of the painting of the vending lounge at
Woodlands and HVAC repairs at both Westside and Lake Point. The increases
were partially offset by lower property tax costs at Westside due to the
sale of buildings #1 and #2 in April 1994.
Depreciation and amortization decreased for the three months ended
March 31, 1995, as compared with the same period in 1994, due primarily to
the sale of buildings #1 and #2 of the Westside property in April 1994.
The joint venture operations improved for the three months ended
March 31, 1995, as compared with the same period in 1994, due to a tenant's
expansions in the second and third quarters of 1994.
CONNECTICUT GENERAL EQUITY PROPERTIES-I LIMITED PARTNERSHIP
(a Connecticut limited partnership)
Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
Occupancy
The following is a listing of approximate physical occupancy levels
by quarter for the Partnership's investment properties:
1994 1995
At 3/31 At 6/30 At 9/30 At 12/31 At 3/31
1. Woodlands Plaza II
Office Building
St. Louis, Missouri 81% 78% 84% 92% 94%
2. Westside Industrials
(formerly Interpark)
Phoenix, Arizona (a) 67% 100% 85% 80% 80%
3. Lake Point I, II, III
Service Center
Orlando, Florida 90% 83% 89% 89% 100%
4. Westford Corporate Center
Westford, Massachusetts (b) 75% 85% 100% 100% 100%
[FN]
(a) On April 15, 1994, Westside Industrials sold two buildings,
reducing square footage from 105,560 to 63,080.
[FN]
(b) The partnership owns a 26.08% interest in the Westford Office
Venture which owns the Westford Corporate Center.
Part II - Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
10(n) Deposit Receipt and Real Estate Purchase
Contract between JACLS Holding Company
and/or Nominee and Connecticut General
Equity Properties-I Limited Partnership
dated as of February 20, 1995, relating
to the sale of Westside Industrial
Building #6 closed on April 27, 1995.
27 Financial Data Schedules
(b) No Form 8-Ks were filed during the three months ended March
31, 1995.
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.
CONNECTICUT GENERAL EQUITY PROPERTIES-I
LIMITED PARTNERSHIP
By: Connecticut General Realty Resources,
Inc. - Third,
General Partner
Date: May 15, 1995 By: /s/ John D. Carey
John D. Carey, President and Controller
(Principal Executive Officer)
(Principal Accounting Officer)