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, 1997
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, 1997 AND DECEMBER 31, 1996
(Unaudited) (Dollars in thousands)
June 30, December 31,
1997 1996
ASSETS
INVESTMENTS IN REAL ESTATE:
Rental properties $ 11,638 $ 11,598
Accumulated depreciation (2,437) (2,282)
Rental properties - net 9,201 9,316
CASH AND CASH EQUIVALENTS (including
interest bearing deposits of
$211 in 1997 and $282 1996) 218 388
OTHER ASSETS:
Accounts receivable 593 9
Prepaid expenses and deposits 97 29
Deferred organization costs and
loan costs (net of accumulated
amortization of $188 in 1997
and $174 in 1996) 108 122
Total other assets 798 160
TOTAL $ 10,217 $ 9,864
LIABILITIES AND PARTNERS' EQUITY LIABILITIES:
Notes payable $ 8,285 $ 7,960
Accounts payable 106 29
Other liabilities 255 194
Total liabilities 8,646 8,183
Minority Interest 75 75
PARTNERS' EQUITY 1,496 1,606
TOTAL $ 10,217 $ 9,864
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
1997 1996 1997 1996
REVENUE:
Rental $ 437 $ 366 $ 876 $ 748
Interest 0 10 1 21
Total revenue 437 276 877 769
EXPENSE:
Interest 203 172 363 321
Operating 175 157 338 290
Depreciation and amortization 87 102 170 186
General and administrative 71 47 166 88
Total expense 536 478 987 885
Net Income (loss)
-before property sale $ (99) $(102) $(110) $(116)
Gain-property sale 0 35 0 35
NET INCOME (LOSS) $ (99) $ (67) $(110) $ (81)
NET LOSS PER PARTNERSHIP UNIT
Limited Partners (5) (5) (9) (6)
General Partners 0 0 0 0
(5) (5) (9) (6)
See Financial Notes.
LIF
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' EQUITY
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND THE YEAR ENDED
DECEMBER 31, 1996 (Unaudited) (Dollars in thousands)
LIMITED PARTNERS
NUMBER OF GENERAL TOTAL
PARTNERSHIP PARTNER PARTNERS'
UNITS AMOUNT AMOUNT EQUITY
BALANCE, JANUARY 1, 1996 12,820 $2,087 $(158) $1,929
Net loss - 1996 (136) 0 (136)
Distribution 1996 (192) (22) (214)
Contributions 1996 0 27 27
BALANCE, DECEMBER 31, 1996 12,820 1,759 (153) 1,606
Net loss - 1997 (110) 0 (110)
BALANCE, JUNE 30, 1997 12,820 $1,649 $(153) $1,496
See Financial Notes.
LIF
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
(Unaudited) (Dollars in thousands)
1997 1996
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (loss) $ (110) $ (81)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation 155 138
Change in operating assets and liabilities:
Increase in accounts receivable (584) (55)
Increase in other liabilities 61 37
Increase (decrease) in accounts payable 77 (33)
Increase in prepaid expenses (68) (69)
Decrease in deferred expenses 14 16
Net cash provided (used) by operating activities (455) (47)
CASH FLOWS FROM INVESTING ACTIVITIES:
Increase in notes receivable 0 (185)
Sale of property 0 340
Capital expenditures (40) (967)
Net cash used in investing activities (40) (812)
CASH FLOWS FROM FINANCING ACTIVITIES:
Note proceeds 421 755
Payment on notes payable (96) (163)
Net cash provided by financing activities 325 592
Increase (decrease) in cash and cash equivalents (170) (267)
Cash and cash equivalents at beginning of period 388 655
Cash and cash equivalents at end of period $ 218 $ 388
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 1996 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, 1997
and 1996, are not necessarily indicative of the results that may be expected
for the year ending December 31, 1997.
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 $363 and
$321 for the six months ended June 30, 1997 and 1996, 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. For financial reporting
purposes, the Partnership's investments are presented on a consolidated basis.
LIQUIDITY AND CAPITAL RESOURCES
As of June 30, 1997, the Partnership's consolidated cash balance totaled
$218,000. 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 1997, the Partnership experienced a net decrease in
cash of $170,000. As of June 30, 1997, cash totaled $218,000 versus a balance
of $388,000 at December 31, 1996 for a net decrease of $170,000. This
decrease in cash reserves was a result of payments on notes payable and
capital expenditures. The General Partner expects Partnership operations to
remain stable for the remainder of the year.
The Partnership's investment in Alpine Center partners has completed
construction of Phase I of its commercial building. Rent-up started February
1, 1997. Occupancy of this building was 73% at June 30, 1997. Phase II of
the Alpine Center is expected to begin late in 1997.
RESULTS OF OPERATIONS
The Partnership's Net Loss through the first two quarters of 1997 is 6% less
than that of 1996. Revenues have increased 18% as compared to 1996. This is
the result of lower vacancies at the Whistler Point Apartments and the lease
up of the Alpine Center. Additionally, operating expenses have increased 12%.
Interest expense has increased 14% from 1997 to 1996 as a result of financing
the Alpine Center purchase and improvements.
OCCUPANCY
As of June 30, 1997 the Whistler Point Luxury Apartments were 95% leased.
Occupancy is expected to remain at this level through the remainder of 1997.
Occupancies for the CCDP properties, 701 Cooper and Valley View Business
Center, were 100% and 86% 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 1997.
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 15, 1997 /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