SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
____ EXCHANGE ACT OF 1934
For the quarter period ended March 31, 2002
---------------------
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 000-13754
---------
MAXUS REALTY TRUST, INC.
-------------------------
(Exact name of small business issuer as specified in its charter)
Missouri 43-1339136
- ---------------------------- ------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
104 Armour Road, North Kansas City, Missouri 64116
- -------------------------------------------- ---------------
(Address of principal executive offices) (Zip Code)
Trust's telephone number, including area code (816) 303-4500
---------------------
Check whether the Trust (1) filed all reports required to be filed by Section 13
or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or
for such shorter period that the Trust was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.
Yes X No
------- -------
State the number of shares outstanding of the Trust's sole class of common
equity, $1.00 par value common stock, as of April 30, 2002: 1,222,000 shares.
1
INDEX
Page
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS:
Consolidated Balance Sheets 3
Consolidated Statements of Operations 4
Consolidated Statements of Cash Flows 5
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS 7
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS 13
ITEM 2. CHANGES IN SECURITIES 13
ITEM 3. DEFAULTS UPON SENIOR SECURITIES 13
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS 13
ITEM 5. OTHER INFORMATION 13
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K 13
SIGNATURES 14
EXHIBIT INDEX 15
2
PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
MAXUS REALTY TRUST, INC.
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2002 2001
(Unaudited)
ASSETS:
Investment property
Land ......................................................................... $ 2,997,000 2,997,000
Buildings and improvements ................................................... 39,212,000 39,102,000
Personal property ............................................................ 1,405,000 1,363,000
----------- ----------
43,614,000 43,462,000
Less accumulated depreciation ................................................ (7,568,000) (7,173,000)
----------- ----------
Total investment property .............................................. 36,046,000 36,289,000
Cash .............................................................................. 1,028,000 884,000
Accounts receivable ............................................................... 437,000 397,000
Prepaid expenses and other assets ................................................. 169,000 248,000
Deferred expenses, less accumulated amortization .................................. 613,000 611,000
----------- ----------
Total assets ........................................................... $ 38,293,000 38,429,000
=========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY:
Liabilities:
Mortgage notes payable ....................................................... $ 23,715,000 23,784,000
Line of credit ............................................................... 1,210,000 1,150,000
Accounts payable, prepaid rent, and accrued expenses ......................... 524,000 643,000
Real estate taxes payable .................................................... 360,000 201,000
Refundable tenant deposits ................................................... 244,000 235,000
----------- ----------
Total liabilities ...................................................... 26,053,000 26,013,000
----------- ----------
Shareholders' equity:
Common stock, $1 par value: authorized 5,000,000 shares
1,222,000 shares issued and outstanding .................................... 1,222,000 1,220,000
Additional paid-in-capital ................................................... 17,109,000 17,087,000
Distributions in excess of accumulated earnings .............................. (6,091,000) (5,891,000)
----------- ----------
Total shareholders' equity ............................................. 12,240,000 12,416,000
----------- ----------
$ 38,293,000 38,429,000
=========== ==========
See accompanying notes to consolidated financial statements.
3
MAXUS REALTY TRUST, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
March 31 March 31
2002 2001
Revenues:
Rental ....................................................................... $ 1,685,000 853,000
Other ........................................................................ 161,000 62,000
---------- ---------
Total revenues ......................................................... 1,846,000 915,000
---------- ---------
Expenses:
Depreciation and amortization ................................................ 409,000 215,000
Repairs and maintenance, including common
area maintenance ....................................................... 238,000 149,000
Real estate taxes ............................................................ 159,000 125,000
Interest ..................................................................... 416,000 141,000
Professional fees ............................................................ 81,000 50,000
General and administrative ................................................... 141,000 43,000
Utilities .................................................................... 120,000 110,000
Property management fees - related party ..................................... 79,000 31,000
Other operating expenses ..................................................... 98,000 21,000
---------- ---------
Total expenses ......................................................... 1,741,000 885,000
---------- ---------
Net income ............................................................. $ 105,000 30,000
========== =========
Per share data:
Net income - basic and diluted ............................................... $ .09 .03
========== =========
Distributions paid in current year ........................................... $ .25 .16
========== =========
Weighted average shares outstanding .......................................... 1,220,000 1,040,000
========== =========
See accompanying notes to consolidated financial statements.
4
MAXUS REALTY TRUST, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended
March 31 March 31
2002 2001
Cash flows from operating activities:
Net income ..................................................................... $ 105,000 30,000
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization .............................................. 409,000 215,000
Changes in accounts affecting operations:
Accounts receivable .................................................... (40,000) (74,000)
Prepaid expenses, other assets and deferred expenses ................... 72,000 (29,000)
Accounts payable and other liabilities ................................. 49,000 (53,000)
--------- --------
Net cash provided by operating activities ................. 595,000 89,000
--------- --------
Cash flows from investing activities:
Capital expenditures ....................................................... (153,000) (353,000)
--------- --------
Cash flows from financing activities:
Principal payments on mortgage notes payable ............................... (69,000) (12,000)
Net proceeds from Line of Credit ........................................... 52,000 125,000
Distributions paid to shareholders ......................................... (305,000) (166,000)
Issuance of common stock ................................................... 24,000 ---
--------- --------
Net cash used in financing activities .................... (298,000) (53,000)
--------- --------
Net increase in cash ..................................... 144,000 (317,000)
Cash, beginning of period ......................................................... 884,000 817,000
--------- --------
Cash, end of period ............................................................... $ 1,028,000 500,000
========= ========
Supplemental disclosure of cash flow information -
cash paid during the quarter for interest ...................................... $ 416,000 97,000
========= ========
See accompanying notes to consolidated financial statements
5
MAXUS REALTY TRUST, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 2002 AND MARCH 31, 2001
(1) Summary of Significant Accounting Policies
Refer to the financial statements of Maxus Realty Trust, Inc. (the "Trust" or
"Registrant") for the year ended December 31, 2001, which are contained in the
Trust's Annual Report on Form 10-KSB, for a description of the accounting
policies which have been continued without change. Also, refer to the footnotes
to those statements for additional details of the Trust's financial condition.
The details in those notes have not changed except as a result of normal
transactions in the interim. In the opinion of management, all adjustments
(which include only normal recurring adjustments) necessary to present fairly
the financial position, results of operations and cash flows at March 31, 2002
and for all periods presented have been made. The results for the three-month
period ended March 31, 2002 are not necessarily indicative of the results which
may be expected for the entire year.
Certain reclassifications have been made to the prior quarter amounts to conform
to the current quarter presentation.
(2) Segment Reporting
The Trust has adopted SFAS No. 131, Disclosure About Segments of an Enterprise
and Related Information, which establishes standards for the way that public
business enterprises report information about operating segments in financial
statements, as well as related disclosures about products and services,
geographic areas, and major customers.
The Trust has two reportable operating segments--apartments and commercial
buildings. The Trust's management evaluates the performance of each segment
based on profit or loss from operations before allocation of general and
administrative expenses, unusual and extraordinary items, and interest. The
accounting policies of the segments are the same as those of the Trust.
Following is information for each segment for the three months ended March 31,
2002 and 2001:
Commercial Corporate
March 31, 2002 Apartments buildings and other Total
- -------------- ---------- ---------- --------- ---------
Total revenues .............. $ 1,300,000 546,000 -- 1,846,000
Net income (loss) ........... 97,000 100,000 (92,000) 105,000
Capital expenditures ........ 95,000 58,000 -- 153,000
Depreciation and amortization 287,000 122,000 -- 409,000
Interest expense ............ 311,000 105,000 -- 416,000
Assets ...................... 20,262,000 12,279,000 5,752,000 38,293,000
March 31, 2001
- --------------
Total revenues .............. $ 153,000 762,000 -- 915,000
Net income (loss) ........... (39,000) 128,000 (59,000) 30,000
Capital expenditures ........ 121,000 232,000 -- 353,000
Depreciation and amortization 33,000 178,000 4,000 215,000
Interest expense ............ 39,000 102,000 -- 141,000
Assets ...................... 1,982,000 11,420,000 3,964,000 17,366,000
6
(3) Property Acquisitions and Disposition
Reference is made to Note 1 of Notes to Financial Statements incorporated by
reference in the Trust's Annual Report on Form 10-KSB for a description of
properties acquired and disposed of in 2001. Several properties were acquired in
2001 and one property was sold in May 2001. The table below presents the pro
forma results of operations of the Trust as if the acquisitions and sale of
investment properties had occurred at January 1, 2001 (unaudited):
Three Months Ended:
March 31, March 31,
2002 2001
(actual)
Total revenue ................................... $1,846,000 1,825,000
Depreciation and amortization ................... 409,000 422,000
Repairs and maintenance, including
common area maintenance ...................... 238,000 219,000
Real estate taxes ............................... 159,000 148,000
Interest ........................................ 416,000 432,000
Property management fees ........................ 79,000 79,000
General and administrative ...................... 141,000 205,000
Other ........................................... 299,000 319,000
--------- ---------
Total expenses ............................... 1,741,000 1,824,000
Net income ...................................... $ 105,000 1,000
========= =========
Net income per share ............................ $ 0.09 0.00
========= =========
This pro forma information does not purport to be indicative of the results that
actually would have been obtained if the transactions had actually occurred at
the beginning of 2001, and is not intended to be a projection of future results.
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
This 10-QSB contains forward-looking information (as defined in the Private
Securities Litigation Reform Act of 1995) that involves risk and uncertainty,
including trends in the real estate investment market, projected leasing and
sales, and future prospects for the Trust. Actual results could differ
materially from those contemplated by such statements.
CRITICAL ACCOUNTING POLICIES
Refer to the Financial Statements of the Trust for the year ended December 31,
2001, which are contained in the Trust's Annual Report in Form 10-KSB, for a
description of the accounting policies which have been continued without change,
unless otherwise noted herein.
7
DESCRIPTION OF BUSINESS
The Trust invests in income-producing real properties, primarily apartments and
commercial buildings. The Trust's portfolio is comprised of:
SQUARE
FEET/
PROPERTY # UNITS TYPE LOCATION PURCHASE DATE
Atrium Business Center ..................... 89,000 Multi-Tenant Bloomington, MN March, 1985
(the "Atrium") Office
Applied Communications, Inc. ............... 70,000 Single Tenant Omaha, NE January, 1986
("ACI") Office
Forest Park Apartments ..................... 110 Apartments Kansas City, MO August, 2000
("Forest Park")
(f.k.a. North Winn)
King's Court Apartments .................... 82 Apartments Olathe, KS August, 2001
("King's Court")
Chalet Apartments - I and II ........... 234 Apartments Topeka, KS September, 2001
("Chalet")
The Landings Apartments .................... 154 Apartments Little Rock, AR September, 2001
(the "Landings")
Barrington Hills Apartments ................ 232 Apartments Little Rock, AR November, 2001
("Barrington Hills")
Forest Park, the Landings, Chalet and Barrington Hills are owned by the
following limited liability companies that are directly or indirectly owned by
the Registrant: North Winn Acquisition, L.L.C., Landings Acquisition, L.L.C.,
Chalet I Acquisition, L.L.C., Chalet II Acquisition, L.L.C. and Barrington Hills
Acquisition, L.L.C.
Maxus Properties, Inc., an affiliate of the Registrant, provides property
management services for each of the Trust's real properties.
LIQUIDITY AND CAPITAL RESOURCES
Cash on hand as of March 31, 2002, was $1,028,000, an increase of $144,000 from
December 31, 2001. Net cash provided by operating activities increased $506,000
to $595,000 for the three-month period ended March 31, 2002 as compared to the
three-month period ended March 31, 2001. Net cash used in investing activities
was $153,000 for capital expenditures. Net cash used in financing activities was
$298,000, of which distributions were paid totaling $305,000.
8
Contractual Obligations and Commercial Commitments
Balance at Interest Due
March 31, 2002 Rate
The Atrium* ........................ $ 1,210,000 4.75% November, 2002
ACI ................................ $ 4,226,000 8.63% August 1, 2010
Forest Park ........................ $ 1,952,000 4.91% September 1, 2007
King's Court ....................... $ 2,209,000 5.69% November 1, 2026
Chalet I ........................... $ 4,082,000 6.59% October 1, 2008
Chalet II .......................... $ 1,540,000 6.535% October 1, 2008
The Landings ....................... $ 3,815,000 7.66% September 1, 2007
Barrington Hills ................... $ 5,891,000 6.035% July 1, 2029
----------
Total .............................. $ 24,925,000
==========
* The line of credit secured by the Atrium is due November 2002. The available
balance on the line of credit is $340,000. Management expects to examine the
options available at the time of expiration and either pay down the line of
credit before November 2002 or extend the terms of the line of credit, as
appropriate. Management does not anticipate difficulty in extending the terms of
the line of credit if appropriate.
Reference is also made to Note 2 of Notes to Financial Statements incorporated
by reference in the Trust's Annual Report on Form 10-KSB for a description of
mortgage indebtedness secured by the Trust's real property investments. The
Trust does not utilize any off balance sheet financing or leasing transactions
of any kind.
Management believes the Trust's current cash position and the properties'
ability to provide operating cash flow should enable the Trust to fund
anticipated operating and capital expenditures in 2002. At Barrington Hills, the
Trust anticipates capital expenditures of approximately $300,000 in connection
with a fire in 2001. This amount will be reimbursed by insurance proceeds. The
Atrium was 76% occupied at March 31, 2002. If occupancy increases, or tenants
renew their leases, which expire in 2002, the Trust could incur material tenant
improvement costs during 2002. Except for the items mentioned, management does
not anticipate any material capital operating expenditures in 2002. However, the
Trust will continue to evaluate opportunities for the acquisition of investment
properties and may incur material capital expenditures in connection with these
acquisition opportunities.
Effective January 1, 2002, the lease with the tenant occupying 100% of the ACI
building was amended and the tenant now provides or contracts for operation and
management of the premises and is responsible for payment of all operating and
utility expenses. The Trust is no longer responsible for these expenses,
resulting in a decrease in expenses. In addition, rental rates have been
decreased in an amount approximately equal to the decrease in anticipated
expenses. (In 2002, rent from the ACI building will decrease by approximately
$171,000.)
Management does not believe the risk of changes in operations that would
adversely impact cash flow from operating activities is a material risk. As
leases expire, they are expected to be replaced or renewed in the normal course
of business over a reasonable period of time. The Atrium has leases that expire
in 2002 for 19,000 square feet and $327,000 in revenue and leases that expire in
2003 for 24,000 square feet and $451,000 in revenue.
9
RESULTS OF OPERATIONS
The results of operations for the Trust's properties for the quarters ended
March 31, 2002 and 2001 are detailed in the schedule below.
Funds from Operations
The white paper on Funds from Operations approved by the board of governors of
NAREIT defines Funds from Operations as net income (loss)(computed in accordance
with GAAP), excluding gains (or losses) from sales of property, plus
depreciation and amortization, and after adjustments for unconsolidated
partnerships and joint ventures. Adjustments for unconsolidated partnerships and
joint ventures are calculated to reflect Funds from Operations on the same
basis. In 1999, NAREIT clarified the definition of Funds from Operations to
include non-recurring events, except for those that are defined as
"extraordinary items" under GAAP and gains and losses from sales of depreciable
operating property. In 2002, NAREIT clarified that Funds from Operations related
to assets held for sale, sold or otherwise transferred and included in results
of discontinued operations should continue to be included in consolidated Funds
from Operations.
The Trust computes Funds from Operations in accordance with the guidelines
established by the white paper, which may differ from the methodology for
calculating Funds from Operations utilized by other equity REITs, and,
accordingly, may not be comparable to such other REITs. Funds from Operations do
not represent amounts available for management's discretionary use because of
needed capital replacement or expansion, debt service obligations, distributions
or other commitments and uncertainties. Funds from Operations should not be
considered as an alternative to net income (determined in accordance with GAAP)
as an indication of the Trust's financial performance or to cash flows from
operating activities (determined in accordance with GAAP) as a measure of the
Trust's liquidity, nor is it indicative of funds available to fund the Trust's
cash needs including its ability to make distributions. The Trust believes Funds
from Operations is helpful to investors as a measure of the performance of the
Trust because, along with cash flows from operating activities, financing
activities and investing activities, it provides investors with an understanding
of the ability of the Trust to incur and service debt and make capital
expenditures. In the table below, Revenue, Expenses, Net Income and Depreciation
and Amortization were determined in accordance with GAAP. The addition of
Depreciation and Amortization to Net Income results in Funds from Operations,
which is not determined in accordance with GAAP. Administrative expenses and
income of the Parent are excluded.
Funds from Operations Three Months Ended
March 31, March 31,
2002 2001
Revenue ................................ $1,846,000 $ 915,000
Expenses ............................... 1,649,000 826,000
---------- ----------
Net Income ............................. 197,000 89,000
Depreciation and Amortization .......... 409,000 211,000
---------- ----------
Funds from Operations .................. $ 606,000 $ 300,000
========== ==========
Comparison of Consolidated Results
For the quarter ended March 31, 2002 the Trust's consolidated revenues were
$1,846,000 compared to $915,000 for the quarter ended March 31, 2001. Revenues
increased $931,000 (101.7%). The increase in consolidated revenues is primarily
due to the additions of King's Court, the Landings, Chalet and Barrington Hills,
contributing $152,000, $239,000, $358,000 and $376,000 respectively in revenue
for the first quarter of 2002. This increase in consolidated revenue was offset
by a decrease in revenue of $107,000 due to the sale of Franklin Park in May
2001 and a net decrease in revenues of $88,000 at the ACI building, the Atrium
and Forest Park; with $70,000 of this net decrease the result of the lease
amendment at the ACI building in January of 2002. Under the new lease the
tenant now provides or contracts for operation and management of the premises
and is responsible for payment of all operating and utility expenses. In
addition, rental rates have been decreased in an amount approximately equal to
the decrease in anticipated expenses.
10
For the quarter ended March 31, 2002, the Trust's consolidated expenses were
$1,741,000 compared to $885,000 for the quarter ended March 31, 2001. The
increase in expenses of $856,000, (96.7%) is due primarily to the additions of
King's Court, the Landings, Chalet and Barrington Hills, resulting in $142,000,
$245,000, $323,000 and $334,000 respectively in expenses in the first quarter
of 2002. This increase was offset by a decrease of $98,000 in total expenses
due to the sale of Franklin Park and a decrease of $124,000 in total expenses at
the ACI building, the Atrium and Forest Park due primarily to the change in
lease on ACI mentioned above.
The net income for the quarter ended March 31, 2002 was $105,000 or $.09 per
share. The net income for the quarter ended March 31, 2001 was $30,000 or $.03
per share.
Cash flow provided by operating activities was $595,000 for the quarter ended
March 31, 2002 compared to $89,000 in 2001. The increase in cash flow provided
by operating activities was due primarily to an increase in net income of
$75,000 along with an increase in non-cash expenses of depreciation and
amortization of $194,000. Cash flow used in investing activities was $153,000
for the quarter ended March 31, 2002 compared to $353,000 in 2001. The decrease
in cash flow used in investing activities was due primarily to a decrease in
capital expenditures related to the tenant improvements at the ACI building,
which were completed and paid in 2001. Cash flow used in financing activities
was $298,000 for the quarter ended March 31, 2002 compared to $53,000 in 2001.
The cash flow used in financing activities primarily consisted of the
distribution of $.25 per share ($305,000) paid in March 2002.
Occupancy
The occupancy levels at March 31 were as follows:
OCCUPANCY LEVELS AT MARCH 31,
2002 2001
The Atrium ................................. 76% 86%
Franklin Park .............................. N/A 57%
ACI ........................................ 100% 100%
Forest Park ................................ 94% 92%
King's Court ............................... 96% N/A
Chalet ..................................... 97% N/A
The Landings ............................... 95% N/A
Barrington Hills ........................... 93% N/A
During the quarter ended March 31, 2002, the occupancy level at the Atrium
increased from 74% at December 31, 2001 to 76%. Two tenants renewed their leases
for 2,136 square feet. One tenant moved in which occupied 2,348 square feet. No
tenants vacated during the quarter ending March 31, 2002. The property has one
major tenant occupying 16% of the building. The lease for this tenant expires
in December 2003.
The ACI building has a single tenant occupying 100% of the building. The lease
was amended effective January 1, 2002 and expires in August 2008.
CONTINGENCIES
The Trust's multi-tenant office building located in Bloomington, Minnesota has
been classified in the Minneapolis Airport Commission's (the "MAC") Safety Zone
A in the expansion of the Minneapolis Airport. The expansion runway is
anticipated to be completed in 2003. The MAC began buying out impacted buildings
during 1999. Safety Zone A is adjacent to the Federal Aviation Authority's
runway protection zone. The Trust will monitor the increased noise from the new
runway to determine any impact on future leasing of the building. If the Trust
determines there is a negative impact, the Trust intends to petition the MAC to
buy the building.
If the building continues to be classified in Safety Zone A, it would currently
be classified as nonconforming use. However, the MAC, along with the City of
Bloomington is petitioning the state to lessen the current restrictions in
Safety Zone A. If the MAC is successful, the Trust's building would continue to
be classified as conforming use. Given the preliminary state of the expansion
and the petition, management is unable at this time to determine what impact, if
any, this matter will have on the Trust.
11
MARKET RISK
The Trust has considered the provision of Financial Reporting Release No. 48
"Disclosure of Accounting Policies for Derivative Financial Instruments and
Derivative Commodity Instruments, and Disclosure of Quantitative and Qualitative
Information about Market Risk Inherent in Derivative Financial Instruments,
Other Financial Instruments and Derivative Commodity Instruments". The Trust had
no holdings of derivative financial or commodity instruments at March 31, 2002.
The Trust does not believe that it has any material exposure to interest rate
risk. The debt on the ACI building is at a fixed rated of 8.63% and matures in
2010; the debt on King's Court is at a fixed rate of 5.69% and matures in 2026;
the debt on the Landings is at a fixed rate of 7.66% and matures in 2007; the
debt on Chalet is at fixed rates of 6.59% and 6.535% and matures in 2008; and
the debt on Barrington Hills is at a fixed rate of 6.035%, is repriced in 2009
and matures in 2029. The debt on Forest Park and the line of credit are each
variable. The current interest rates on Forest Park and the line of credit are
4.91% and 4.75%, respectively. The debt on Forest Park matures in 2007 and the
line of credit matures in November 2002. A 100 basis point increase in the
variable rate debt on an annual basis would impact net income by approximately
$32,000.
INFLATION
The effects of inflation did not have a material impact upon the Trust's
operations in the quarter ended March 31, 2002 or in fiscal 2001.
NEW ACCOUNTING PRONOUNCEMENT
In August 2001, the Financial Accounting Standards Board (FASB) issued Statement
of Financial Accounting Standard (SFAS) No. 144, "Accounting for the Impairment
or Disposal of Long-Lived Assets". This statement addresses financial accounting
and reporting for the impairment or disposal of long-lived assets. While this
statement supersedes SFAS No. 121, "Accounting for Impairment of Long-Lived
Assets and Long-Lived Assets to be Disposed of" it retains many of the
fundamental provisions of that statement. This statement also supersedes the
accounting and reporting provisions of APB Opinion No. 30, "Reporting the
Results of Operations -- Reporting the Effects of Disposal of a Segment of a
Business, and Extraordinary, Unusual and Infrequently Occurring Events and
Transactions", for the disposal of a segment of a business. However, it retains
the requirement in Opinion No. 30 to report separately discontinued operations
and extends that reporting to a component of an entity that either has been
disposed of (by sale, abandonment, or in a distribution to owners) or is
classified as held for sale. This statement is effective for fiscal years
beginning after December 15, 2001 and was adopted by the Trust on January 1,
2002. The adoption of SFAS 144 did not have a material impact on the Trust's
financial position or results of operations.
(The remainder of this page left blank intentionally.)
12
PART II OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None
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) Exhibits
See Exhibits Index on Page 15
(b) Reports on Form 8-K
The following reports on Form 8-K were filed by the Trust during the
first quarter of 2002:
On January 4, 2002, the Trust filed a report on Form 8-K/A (File No.
000-13754), which reported the Trust's audited financial statements
relative to the purchase on November 15, 2001 of Barrington Hills
Apartments, a 232-unit apartment complex located in Little Rock,
Arkansas.
13
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Trust has duly caused this report to be signed on its behalf by
the undersigned, there unto duly authorized.
MAXUS REALTY TRUST, INC.
Date: May 13, 2002 By: /s/ Danley K. Sheldon
----------------------
Danley K. Sheldon
Trustee
President
Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below on May 13, 2002, by the following persons on behalf of
the Trust and in the capacities indicated.
/s/ John W. Alvey
---------------------
John W. Alvey
Trustee
Vice President
Chief Financial and Accounting
Officer
14
EXHIBIT INDEX
Exhibit
Number Description
- ------- -----------
3.1 Articles of Incorporation dated June 12, 1984, as amended, are
incorporated by reference to Exhibit 3.1 to the Registrant's
Quarterly Report on Form 10-Q for the quarter ended March 31,
2000, as filed pursuant to Rule 13a-13 under the Securities
Exchange Act of 1934 (File No. 000-13754).
3.2 Bylaws of the Registrant, as amended, are incorporated by
reference to Exhibit 3.2, to the Registrant's Quarterly Report
on Form 10-QSB for the quarter ended March 31, 2001, as filed
pursuant to Rule 13a-13 under the Securities Exchange Act of
1934 (File No. 0013754).
15