FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Quarterly Report Under Section 13 or 15(d) of the
Securities Exchange Act of 1934
For Quarter Ended March 31, 1996
Commission File Number: 2-94509
LIF
(Exact name of registrant as specified in its governing instruments)
California 94-2969720
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
P. O. Box 130, Carbondale, Colorado 81623
(Address of principal executive offices)
(970) 963-8007
(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 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
ITEM 1. FINANCIAL STATEMENTS
LIF
CONSOLIDATED BALANCE SHEETS, MARCH 31, 1996 AND DECEMBER 31, 1995
(Unaudited)
(Dollars in thousands)
1996 1995
ASSETS
INVESTMENTS IN REAL ESTATE:
Rental properties $10,373 $ 10,267
Accumulated depreciation (2,088) (2,010)
Rental properties - net 8,285 8,257
CASH AND CASH EQUIVALENTS (including interest bearing
deposits of $505 in 1996 and $548 in 1995) 317 228
OTHER ASSETS:
Short-term investment 0 99
Accounts receivable 23 15
Prepaid expenses and deposits 53 17
Deferred organization costs and loan costs (net of accumulated
amortization of $142 in 1996 and $135 in 1995) 126 132
Total other assets 202 263
TOTAL $ 8,993 $ 9,076
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES:
Notes payable $ 6,877 $ 6,897
Accounts payable 12 80
Other liabilities 189 170
Total liabilities 7,078 7,147
PARTNERS' EQUITY 1,915 1,929
TOTAL $ 8,993 $ 9,076
See Financial Notes.
LIF
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
(In thousands except per share amounts)
1995 1994
REVENUE:
Rental $ 382 $ 393
Interest 11 13
Total revenue 394 406
EXPENSE:
Interest 149 115
Operating 133 143
Depreciation and amortization 84 69
General and administrative 41 39
Total expense 407 366
NET INCOME (LOSS) $ (13) $ 40
NET INCOME (LOSS) PER PARTNERSHIP UNIT $ (1) $ 3
See Financial Notes.
LIF
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND
THE YEAR ENDED DECEMBER 31, 1995
(Unaudited)
(Dollars in thousands)
..LIMITED PARTNERS..
NUMBER OF GENERAL TOTAL
PARTNERSHIP PARTNER PARTNERS'
UNITS AMOUNT AMOUNT EQUITY
BALANCE, JANUARY 1, 1995 12,820 $ 2,524 $ (122) $ 2,402
Net Loss - 1995 (52) 0 (52)
Net Distribution - 1995 (385) (41) (426)
Net Contribution - 1995 0 1 0
BALANCE, DECEMBER 31, 1995 12,820 $ 2,087 $ (158) $ 1,929
Net Loss (13) 0 (13)
BALANCE, MARCH 31, 1996 12,820 $ 2,074 $ (158) $ 1,915
See Financial Notes.
LIF
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
(Dollars in thousands)
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $(13) $ 40
Adjustments to reconcile net increase to net cash
provided by operating activities:
Depreciation and amortization 78 64
Change in operating assets and liabilities:
Increase in other liabilities 19 36
Decrease in accounts payable (69) (6)
Increase in accounts receivable (8) (8)
Decrease in deferred expenses 6 4
(Increase) decrease in prepaid expenses (36) 4
Net cash provided by (used in) operating activities (23) 134
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (106) (19)
Net cash used in investing activities (106) (19)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment on notes payable (20) (26)
Net cash used by financing activities (20) (26)
(Decrease) increase in cash and cash equivalents (149) 89
Cash and cash equivalents at beginning of period 655 426
Cash and cash equivalents at end of period $ 506 $ 515
See Financial Notes.
LIF
FINANCIAL NOTES
(Dollars in thousands)
The accompanying unaudited financial statements should be read in
conjunction with the Partnership's 1995 Annual Report. These statements
have been prepared in accordance with the instructions to the Securities
and Exchange Commission Form 10-Q and do not include all of the information
and footnotes required by generally accepted accounting principles for
complete financial statements.
In the opinion of the general partner, all adjustments (consisting of
normal recurring accruals) considered necessary for a fair presentation
have been included. The results of operations for the three months ended
March 31, 1996 and 1995, are not necessarily indicative of the results that
may be expected for the year ending December 31, 1996.
For purposes of the statement of cash flows, the Partnership considers all
highly liquid investments with a maturity of three months or less at the
time of purchase to be cash equivalent. The Partnership paid interest of
$149 and $115 for the three months ended March 31, 1996 and 1995,
respectively.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
INTRODUCTION
LIF (the "Partnership") is a California limited partnership. Operations
commenced in November 1985.
The Partnership currently has an investment in Landsing Private Partnership-
21 ("P-21") which owns one multi-family rental property, Prince Creek
Partners ("PCP") which owns three residential rental properties, Thompson
Creek Partners ({TCP") which owns one residential rental property, and
Cattle Creek Development Partners ("CCDP") which owns two retail rental
properties. For financial reporting purposes the Partnership's investments
are presented on a consolidated basis.
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 1996, the Partnership's consolidated cash balance totaled
$506,000. Cash not required for current operations is placed in federally
insured financial instruments, certificates of deposit and money market
funds which can be liquidated as needed. It is the Partnership's intention
to maintain adequate cash reserves for its operations.
During the first quarter of 1996, the Partnership experienced a net
decrease in cash of $50,000. During the same period, the Partnership
experienced a decrease in short-term investments of $99,000. As of March
31, 1996, cash plus short-term investments totaled $506,000 versus a
balance of $655,000 at December 31, 1995 for a net decrease of $149,000.
The General Partner expects Partnership operations to remain stable for the
remainder of the year.
RESULTS OF OPERATIONS
The Partnership's operating results for the first quarter of 1996 have
shown a slight decline as compared to that of 1995. Revenues have
decreased 3% as compared to 1995. Operating expenses have increased 11% in
1996 as a result of higher interest expense amounts. Interest expense has
increased 30% from 1995 to 1996 as a result of the additional debt
associated with the remodel of the Valley View Business Center, and the new
loan on the Whistler Point Apartments.
OCCUPANCY
As of March 31, 1996, occupancy at Whistler Point Apartments was 92%. This
occupancy, despite new competition, is expected to remain stable through
1996. Occupancy at properties owned by PCP, CCDP and TCP was 100% as of
March 31, 1996, except for the Valley View Business Center. Valley View is
in the process of rent up after the remodel. The occupancy at March 31,
1996 was 72%. It is expected that all Partnership properties will maintain
stable occupancy during 1996.
DISTRIBUTIONS
The Partnership has reinstated a policy of semi-annual distributions. The
General Partner has declared a distribution of $15.00 per unit, payable to
unit holders of record as of June 1, 1996.
INFLATION
The effects of inflation on the Partnership's operations have been no
greater than the effect on the economy as a whole. Because of competitive
conditions, market rate rents may increase or decrease disproportionately
with inflation while property operating costs continue to follow
inflationary trends. Inflationary conditions are not expected to have a
major impact on the Partnership during 1996.
PART II. OTHER INFORMATION
All items in Part II have been omitted since they are inapplicable or the
answer is negative.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
L I F
Date: May 10, 1996 /s/ Gary K. Barr
Gary K. Barr, President & Director
Landsing Equities Corporation
Managing Partner of the General Partner,
Partners '85