THE THICKET APARTMENTS
STATEMENTS OF EXCESS REVENUES
OVER SPECIFIC OPERATING EXPENSES
FOR THE PERIOD FROM JANUARY 1, 1996
TO JUNE 28, 1996 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1995
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Board of Trustees and Shareholders of
Vinings Investment Properties Trust:
We have audited the accompanying statement of excess revenues over specific
operating expenses for The Thicket Apartments for the year ended December 31,
1995. This financial statement is the responsibility of management. Our
responsibility is to express an opinion on this financial statement based on our
audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the statement of excess revenues over specific operating
expenses is free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the statement of
excess revenues over specific operating expenses. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
As described in Note 2, this financial statement excludes certain expenses that
would not be comparable with those resulting from the operations of The Thicket
Apartments after acquisition by the Trust. The accompanying statement of excess
revenues over specific operating expenses was prepared for the purpose of
complying with the rules and regulations of the Securities and Exchange
Commission and is not intended to be a complete presentation of The Thicket
Apartments' revenues and expenses.
In our opinion, the statement of excess revenues over specific operating
expenses presents fairly, in all material respects, the excess of revenues over
specific operating expenses (exclusive of expenses described in Note 2) of The
Thicket Apartments for the year ended December 31, 1995 in conformity with
generally accepted accounting principles.
/s/ Arthur Andersen LLP
Atlanta, Georgia
August 16, 1996
THE THICKET APARTMENTS
STATEMENTS OF EXCESS REVENUES
OVER SPECIFIC OPERATING
EXPENSES
For The Period
From
January 1, 1996 Year Ended
to June 28, 1996 December 31,
(UNAUDITED) 1995
----------- ----
Revenues:
Rental revenues (Note 1) $ 852,397 $1,621,037
Other property revenues 24,213 53,201
-------------------- ---------------------
Total property revenues 876,610 1,674,238
Specific Operating Expenses (Note 2):
Property operating and maintenance 400,304 768,905
--------------------
- ---------------------------------
Excess of Revenues Over Specific
Operating Expenses $ 476,306 $ 905,333
==================== =====================
<FN>
The accompanying notes are an integral part of these statements.
</FN>
THE THICKET APARTMENTS
NOTES TO STATEMENTS OF EXCESS REVENUES
OVER SPECIFIC OPERATING EXPENSES
FOR THE PERIOD FROM JANUARY 1, 1996 TO
JUNE 28, 1996 (UNAUDITED) AND
THE YEAR ENDED DECEMBER 31, 1995
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
- -- ------------------------------------------------
Description of Real Estate Property Acquired
On June 28, 1996, Vinings Investment Properties Trust and Subsidiaries (the
"Trust") through Thicket Apartments L.P., a Delaware limited partnership
and indirect wholly owned subsidiary of the Trust acquired The Thicket
Apartments, a 254-unit apartment complex located in DeKalb County, Georgia,
for a cash purchase price of $8,650,000. The occupancy rate of the 254
apartment homes was approximately 97% as of June 28, 1996.
The acquisition was financed primarily by a mortgage loan on the acquired
property of approximately $7.4 million with the remainder financed through
borrowings under the Trust's line of credit.
RENTAL REVENUES
Rents from leases are accounted for ratably over the term of each lease,
which is generally for a period of 12 months or less.
2. BASIS OF ACCOUNTING
- -- -------------------
The accompanying statements of excess revenues over specific operating
expenses are presented on the accrual basis. These statements have been
prepared in accordance with the applicable rules and regulations of the
Securities and Exchange Commission for real estate properties acquired.
Accordingly, the statements exclude certain historical expenses not
comparable to the operations of The Thicket Apartments after acquisition by
the Trust, such as depreciation and interest.