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 September 30, 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)
(303) 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, SEPTEMBER 30, 1996 AND DECEMBER 31,
1995
(Unaudited)
(In thousands)
September 30, December 31,
1996 1995
ASSETS
INVESTMENTS IN REAL ESTATE:
Rental properties $ 10,918 $10,267
Accumulated depreciation (2,208) (2,010)
Rental properties - net 8,710 8,257
CASH AND CASH EQUIVALENTS (including
interest bearing deposits of $257 in
1996 and $548 in 1995) 262 556
OTHER ASSETS:
Short-term investment 0 99
Accounts receivable 24 15
Prepaid expenses and deposits 121 17
Notes Receivable 54 0
Deferred organization costs and
loan costs (net of accumulated amortization
of $130 in 1996 and $135 in 1995) 112 132
Total other assets 311 263
TOTAL $ 9,283 $ 9,076
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES:
Notes payable $ 7,217 $ 6,897
Accounts payable 60 80
Other liabilities 234 170
Total liabilities 7,511 7,147
PARTNERS' EQUITY 1,772 1,929
TOTAL $ 9,283 $ 9,076
<FN>
See Financial Notes.
LIF
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands except per unit amounts)
Three Months Ended Nine Months Ended
September 30 September 30
1996 1995 1996 1995
REVENUE:
Rental $393 $ 382 $1,141 $1,159
Interest 6 10 27 35
Total revenue 399 392 1,168 1,194
EXPENSE:
Interest 160 139 481 373
Operating 156 157 446 473
Depreciation and amortization 82 72 268 210
General and administrative 39 40 167 144
Total expense 437 408 1,363 1,200
NET INCOME/(LOSS)
BEFORE SALE OF REAL PROPERTY $(38) $ (16) $ (195) $ (6)
GAIN (LOSS) SALE OF REAL PROPERTY 0 0 40 0
NET INCOME (LOSS) (38) (16) (155) (6)
NET INCOME/(LOSS) PER
PARTNERSHIP UNIT $ (3) $ (1) $ (12) $ (.5)
<FN>
See Financial Notes.
LIF
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 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 - 1994 0 5 5
BALANCE, DECEMBER 31, 1995 12,820 (2,087) (158) 1,929
Net loss (155) 0 (155)
BALANCE, SEPTEMBER 30, 1996 12,820 $1,932 $(158) $1,772
<FN>
See Financial Notes.
LIF
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995
(Unaudited)
(In thousands)
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $(194) $ (6)
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 268 198
Change in operating assets and liabilities:
Increase in accounts receivable (9) (16)
Increase in prepaid expenses (104) (35)
Increase in deferred expenses 20 (101)
(Increase) Decrease in accounts payable (21) 59
Increase in other liabilities 64 37
Net cash provided by operating activities 24 136
CASH FLOWS FROM INVESTING ACTIVITIES:
Increase in notes receivable (54) 0
Short-term investments 0 198
Capital expenditures (914) (509)
Sale of investment property 233 0
Net investor distributions (6) (214)
Partner's Contributions 3 5
Net cash used in investing activities (738) (520)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from financing 990 1,311
Payment on notes payable (670) (62)
Net cash provided (used) by financing activities 320 1,249
Increase (decrease) in cash and cash equivalents (394) 865
Cash and cash equivalents at beginning of period 655 228
Cash and cash equivalents at end of period $ 262 $1,093
<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 nine months ended September 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 $481 and $373
for the nine months ended September 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;
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 September 30, 1996, the Partnership's consolidated cash
balance totaled $262,000. 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 nine months of 1996, the Partnership experienced
a net decrease in cash of $295,000. During the same period, the
Partnership experienced a net decrease in short-term investments
of $99,000. As of September 30, 1996, cash plus short-term
investments totaled $262,000 versus a balance of $655,000 at
December 31, 1995 for a net decrease of $394,000. Primary uses
of cash included capital expenditures of $914,000, principal
payments on notes payable of $670,000, while sources of cash
included proceeds from financing of $990,000. The General
Partner expects Partnership operations to remain stable for the
remainder of the year.
RESULTS OF OPERATIONS
The Results of Operations for 1996 are not comparable to 1995.
The different number of properties operated cause comparisons of
overall operations to be misleading. It is meaningful, however,
to compare the operations of the property operated continuously
during the first nine months of 1996 and 1995.
The following represents the operations of the property, Whistler
Point Luxury Apartments, held continuously during the first nine
months of 1996 and 1995:
1996 1995 % Change
Rental Revenue $ 946 $ 999 - 5%
Operating Expense 402 414 - 3%
Net Operating Income 544 585 - 7%
Interest Expense $ 325 $ 272 +19%
Overall revenues decreased 5% for the nine months ended September
30, 1996 relative to the same period in 1995. This decrease was
due to more competition in the Boise, Idaho apartment market.
Property operating expenses decreased 3% for the nine months
ended September 30, 1996 relative to the same period in 1995.
Interest expense increased from 1995 to 1996, due to the
refinance of the first mortgage.
OCCUPANCY
As of September 30, 1996 the Whistler Point Luxury Apartments
were 95% leased. Occupancy is expected to remain stable to
slightly lower due to the increase in new available units in the
Boise market.
As of September 30, 1996, Cattle Creek Development Partners'
commercial properties of Valley View Business Park and 701 Cooper
Avenue Building were 83% and 100% leased, respectively.
The Alpine Center retail building is currently under re-
development with the initial lease-up scheduled to begin in the
first quarter of 1997.
PROPERTY STATUS
The three residential properties owned by Prince Creek Partners
were sold during the third quarter. The sale of these properties
resulted in net gain to the Partnership of $34,000.
DISTRIBUTIONS
The Partnership has 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 September 30, 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
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) None
(b) The Partnership filed no reports on Form 8-K during the
quarter ended September 30, 1996.
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: November 15, 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