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 June 30, 1996
Commission File Number: 0-15766
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, JUNE 30, 1996 AND DECEMBER 31, 1995 (Unaudited)
(Dollars in thousands)
June 30, December 31,
1996 1995
ASSETS
INVESTMENTS IN REAL ESTATE:
Rental properties $10,894 $10,267
Accumulated depreciation (2,148) (2,010)
Rental properties - net 8,746 8,257
CASH AND CASH EQUIVALENTS
(including interest bearing deposits of
$379 in 1996 and $548 1995) 391 556
OTHER ASSETS:
Short-term investment 0 99
Accounts receivable 70 15
Prepaid expenses and deposits 86 17
Notes receivable 185 0
Deferred organization costs and loan costs
(net of accumulated amortization of $20 in
1996 and $135 in 1995) 116 132
Total other assets 457 263
TOTAL $ 9,594 $ 9,076
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES:
Notes payable $ 7,489 $ 6,897
Accounts payable 48 80
Other liabilities 207 170
Total liabilities 7,744 7,147
PARTNERS' EQUITY 1,851 1,929
TOTAL $ 9,594 $ 9,076
<FN>
See Financial Notes.
LIF
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands except per unit amounts)
Three Months Ended Six Months Ended
June 30 June 30
1996 1995 1996 1995
REVENUE:
Rental $ 366 $ 384 $ 748 $ 777
Interest 10 12 21 25
Total revenue 376 396 769 802
EXPENSE:
Interest 172 119 321 234
Operating 157 173 290 316
Depreciation and amortization 102 69 186 138
General and administrative 47 65 88 104
Total expense 478 426 885 792
Net Income (loss)
-before property sale $(102) $ (30) $(116) $ 10
Gain-property sale 35 0 35 0
NET INCOME (LOSS) $ (67) $ (30) $ (81) $ 10
NET INCOME PER
PARTNERSHIP UNIT $ (5) $ (2) $ (6) $ 1
<FN>
See Financial Notes.
LIF
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' EQUITY
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND THE YEAR ENDED
DECEMBER 31, 1995 (Unaudited)
(Dollars in thousands)
..LIMITED PARTNERS..
NUMBER OF GENERAL TOTAL
PARTNERSHIP PARTNER PARTNERS'
UNITS AMOUNT AMOUNT DEFICIT
BALANCE, JANUARY 1, 1995 12,820 $2,524 (122) $2,402
Net loss - 1995 (52) 0 (52)
Distributions - 1995 (385) (41) (426)
Contributions - 1995 0 5 0
BALANCE, DECEMBER 31, 1995 12,820 2,087 (158) 1,929
Net loss (81) 0 (81)
Contributions - 1996 0 3 3
BALANCE, JUNE 30, 1996 12,820 $2,006 $(155) $1,851
<FN>
See Financial Notes.
LIF
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(Unaudited)
(Dollars in thousands)
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (loss) $(81) $ 10
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation and amortization 138 130
Change in operating assets and liabilities:
Increase in accounts receivable (55) (14)
Increase in other liabilities 37 13
Increase (decrease) in accounts payable (33) 89
Increase in prepaid expenses (69) (11)
(Increase) decrease in deferred expenses 16 (102)
Net cash provided (used) by operating activities (47) 115
CASH FLOWS FROM INVESTING ACTIVITIES:
Increase in notes receivable (185) 0
Sale of property 340 0
Investor Distributions 0 (214)
Contributions 3 0
Capital expenditures (967) (97)
Net cash used in investing activities (809) (311)
CASH FLOWS FROM FINANCING ACTIVITIES:
Note proceeds 755 50
Payment on notes payable (163) (46)
Net cash provided by financing activities 592 4
Increase (decrease) in cash and cash equivalents (264) (192)
Cash and cash equivalents at beginning of period 655 426
Cash and cash equivalents at end of period $ 391 $ 234
<FN>
See Financial Notes.
LIF
FINANCIAL NOTES
(Dollars in thousands)
1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 six months ended
June 30, 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
$321 and $234 for the six months ended June 30, 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 Fund-21 ("LPF-
21") which owns one multi-family rental property, Prince Creek Partners
("PCP") which owns two residential rental properties, and Cattle Creek
Development Partners ("CCDP") which owns two retail rental properties and
Alpine Center Partners which has one retail building under redevelopment.
For financial reporting purposes, the Partnership's investments are presented
on a consolidated basis.
LIQUIDITY AND CAPITAL RESOURCES
As of June 30, 1996, the Partnership's consolidated cash balance totaled
$391,000. Cash not required for current operations is placed in federally
insured financial instruments 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 half of 1996, the Partnership experienced a net decrease in
cash of $264,000. As of June 30, 1996, cash totaled $391,000 versus a
balance of $655,000 at December 31, 1995 for a net decrease of $264,000.
This decrease in cash reserves was a result of payments on notes payable and
the new investment in Alpine Center Partners. 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 six months of 1996 are down
slightly compared to that of 1995. Revenues have decreased 4% as compared to
1995. This is the result of one property sale and the re-leasing required at
Valley View Business Center after its renovation. Additionally, operating
expenses have increased 8%. Interest expense has increased 34% from 1996 to
1995 as a result of the refinancing of the Whistler Point mortgage. Revenues
have decreased primarily due to increased competition in the Boise, Idaho
luxury apartments market.
PROPERTY STATUS
During the second quarter, the residential property owned by Thompson Creek
Partners was sold for $182,500.00 resulting in a net gain of $6,000. The
three residential properties owned by PCP were placed on the market during
the second quarter. One property sold, resulting in a net gain of $29,000,
while the other two properties are under contract and are projected to close
in the third quarter. There are outstanding contingencies on both these
contracts and there can be no assurance that they will close.
The two properties owned by CCDP are expected to be sold or refinanced during
the third quarter.
During the second quarter, the Partnership made a short term loan to Alpine
Center Partners which is in the process of expanding and renovating a retail
building.
OCCUPANCY
As of June 30, 1996 the Whistler Point Luxury Apartments were 91% leased.
Occupancy is expected to remain at this level through the remainder of 1996.
Occupancies for the CCDP properties, 701 Cooper and Valley View Business
Center, were 100% and 75% respectively.
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.
LIF
Date: August 14, 1996 /s/ Gary K. Barr
Gary K. Barr, President
The Landsing Corporation, Sole Shareholder
of Landsing Equities Corporation
Managing Partner of the General Partner,
Partners '85