FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 33-11013
ASSOCIATED PLANNERS REALTY INCOME FUND
(Exact name of registrant as specified in its charter)
CALIFORNIA 95-4120092
(State or other Jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
5933 W. CENTURY BLVD., SUITE 900
LOS ANGELES, CALIFORNIA 90045
(Address of principal executive offices)
(Zip Code)
(310) 670-0800
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 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
ASSOCIATED PLANNERS REALTY INCOME FUND
(A California Limited Partnership)
ITEM 1. FINANCIAL STATEMENTS
In the opinion of the General Partner of Associated Planners Realty
Income Fund (the "Partnership"), all adjustments necessary for a fair
presentation of the Partnership's results for the three and six months ended
June 30,1995 and 1994, have been made in the following financial statements.
However, such financial statements are unaudited and are subject to any year
- -end adjustments that may necessary.
BALANCE SHEETS
June 30, 1995 (Unaudited) and December 31, 1994
June 30, December 31,
1995 1994
(Unaudited)
ASSETS
RENTAL REAL ESTATE, net of
accumulated depreciation (Note 2) $4,121,886 $4,160,924
CASH & CASH EQUIVALENTS 51,477 85,804
INVESTMENT IN GOVERNMENT SECURITIES 168,949 163,272
OTHER ASSETS 66,580 25,929
$4,408,892 $4,435,929
LIABILITIES AND PARTNERS' EQUITY
ACCRUED LIABILITIES $ 17,687 $24,316
PREPAID RENT 2,258 ---
PROPERTY SECURITY DEPOSITS 28,290 30,698
TOTAL LIABILITIES 48,235 55,014
COMMITMENTS AND CONTINGENCIES
PARTNERS' EQUITY:
Limited Partner:
$1,000 stated value per unit;
authorized 12,000 units;
issued and outstanding - 5,096 4,166,817 4,196,996
General Partner: 193,840 183,919
TOTAL PARTNERS EQUITY 4,360,657 4,380,915
$4,408,892 $4,435,929
[FN]
See accompanying notes to financial statements.
ASSOCIATED PLANNERS REALTY INCOME FUND
(A California Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
Six Months Ended June 30, 1995
(Unaudited)
Limited Partners General
Total Units Amount Partner
BALANCE, December 31, 1994 $4,380,915 5,096 $4,196,996 $183,919
Net income 55,071 --- 45,150 9,921
Distributions to limited partners (75,329) --- (75,329) ---
BALANCE, June 30, 1995 $4,360,657 5,096 $4,166,817 $193,840
Six Months Ended June 30, 1994
(Unaudited)
Limited Partners General
Total Units Amount Partner
BALANCE, December 31, 1993 $4,381,340 5,096 $4,228,487 $152,853
Net income 101,942 --- 87,350 14,592
Distributions to limited partners (127,400) --- (127,400) ---
BALANCE, June 30, 1994 $4,355,882 5,096 $4,188,437 $167,445
[FN]
See accompanying notes to financial statements.
ASSOCIATED PLANNERS REALTY INCOME FUND
(A California Limited Partnership)
STATEMENTS OF INCOME
Three and Six Months Ended June 30, 1995 and 1994
(Unaudited)
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
1995 1994 1995 1994
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
REVENUES:
Rental $102,270 $125,357 $175,633 $247,115
Interest 3,549 2,172 5,526 3,719
105,819 127,529 181,159 250,834
COSTS AND EXPENSES:
Operating 20,504 13,166 33,338 26,688
Property taxes 5,003 4,892 9,293 9,784
Property management fees 4,226 6,268 7,428 12,356
General and administrative 15,493 20,317 29,021 42,729
Unrealized (gain) loss from investment in
government securities 2,607 4,677 (2,030) 8,475
Depreciation and amortization 24,519 24,500 49,038 48,860
72,352 73,820 126,088 148,892
NET INCOME $33,467 $53,709 $55,071 $101,942
NET INCOME PER
LIMITED PARTNERSHIP UNIT $5.48 $9.05 $8.86 $17.14
[FN]
See accompanying notes to financial statements.
ASSOCIATED PLANNERS REALTY INCOME FUND
(A California Limited Partnership)
STATEMENTS OF CASH FLOWS
Six Months Ended June 30, 1995 and 1994
(Unaudited)
Six Months Six Months
Ended Ended
June 30, June 30,
1995 1994
(Unaudited) (Unaudited)
Cash flows from operating activities:
Net income $55,071 $101,942
Adjustment to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 49,038 48,860
Net proceeds from sales of investments
in government securities (3,647) 7,534
Unrealized loss (gain) from investment in
government securities (2,030) 8,475
Increase (decrease) from changes in:
Other assets (40,651) 11,784
Accounts payable (6,629) (43,326)
Prepaid rent 2,258 1,747
Security deposits (2,408) ---
Net cash provided by operating activities 51,002 137,016
Cash flows from investing activities:
Additions to rental real estate (10,000) (31,136)
Net cash used in investing activities (10,000) (31,136)
Cash flows from financing activities:
Distributions to limited partners (75,329) (127,400)
Net increase in cash and cash equivalents (34,327) (21,520)
Cash and cash equivalents at beginning of period 85,804 40,278
Cash and cash equivalents at end of period $51,477 $18,758
[FN]
See accompanying notes to financial statements.
ASSOCIATED PLANNERS REALTY INCOME FUND
(A California Limited Partnership)
SUMMARY OF ACCOUNTING POLICIES
BASIS OF PRESENTATION
The accompanying balance sheet as of June 30, 1995, the income
statements and statements of cash flow for the three and six month periods
ended June 30, 1995, and 1994 are unaudited, but in the opinion of management
includes all adjustments, consisting only of normal recurring accruals,
necessary for a fair presentation of the financial position and results of
operations for the period presented. The results of operations for the three
and six month period ended June 30, 1995, are not necessarily indicative of
results to be expected for the year ended December 31, 1995.
The financial statements do not give effect to any assets that the
partners may have outside of their interest in the partnership, nor to any
personal obligations, including income taxes, of the partners.
BUSINESS
Associated Planners Realty Income Fund ("the Partnership"), a
California limited partnership, was formed on December 23, 1986 under the
Revised Limited Partnership Act of the State of California for the purpose of
developing or acquiring, managing and operating unleveraged income producing
real estate. The Partnership met its minimum funding of $1,200,000 on
February 26, 1988 and terminated its offering on September 5, 1989.
RENTAL REAL ESTATE AND DEPRECIATION
Assets are stated at cost. Depreciation is computed using the straight
- -line method over an estimated useful lives ranging from 31.5 to 40 years
for financial reporting and income tax reporting purposes.
ORGANIZATIONAL COSTS
Organizational costs are capitalized and amortized over the first five
years of the partnership.
LEASE COMMISSIONS
Lease commissions which are paid to real estate brokers for locating
tenants are capitalized and amortized over the life of the lease.
ASSOCIATED PLANNERS REALTY INCOME FUND
(A California Limited Partnership)
SUMMARY OF ACCOUNTING POLICIES
(Continued)
RENTAL INCOME
Rental revenue is recognized on a straight-line basis to the extent
that rental revenue is deemed collectible.
INVESTMENT IN GOVERNMENT SECURITIES
Investment in Government Securities, which represent trading
securities, are accounted for in accordance with SFAS No. 115. The
difference between historical cost and market value are reported as
unrealized gains or losses in the statements of income.
STATEMENTS OF CASH FLOW
For purposes of the statements of cash flows, the Partnership
considers cash in the bank, and all highly-liquid investments purchased with
original maturities of three months or less to be cash and cash equivalents.
ASSOCIATED PLANNERS REALTY INCOME FUND
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
Three and Six Months Ended June 30, 1995 and 1994 (Unaudited)
and December 31, 1994
Note 1 - Nature of Partnership Business
Associated Planners Realty Income Fund, a California limited
partnership (the "Fund"), was formed on December 23, 1986 under the Revised
Limited Partnership Act of the State of California for the purpose of
acquiring, managing, and operating income-producing real estate.
Under the terms of the partnership agreement, the General Partner
(West Coast Realty Advisors, Inc. and W. Thomas Maudlin Jr.) is entitled to
cash distributions and net income allocations varying from 1% for depreciation
allocations to 15% of cash and income after the limited partners have
received cash distributions equal to their initial cash investment plus a
cumulative 8% return.
The General Partner is also entitled to cash distributions and net
income allocations of 10% from ongoing partnership operations. Further, the
General Partner receives acquisition fees for locating and negotiating the
purchase of rental real estate and management fees for operating the
Partnership.
Note 2 - Rental Real Estate
As of June 30, 1995 and December 31, 1994 the Fund's net real estate
investment in the Yorba Center Building and PROCARE Industrial Building is as
follows:
June 30, December 31,
1995 1994
Land $1,282,861 $1,282,861
Buildings and Improvements 3,416,327 3,406,327
4,699,188 4,689,188
Less Accumulated Depreciation 577,302 528,264
Net Real Estate Investment $4,121,886 $4,160,924
ASSOCIATED PLANNERS REALTY INCOME FUND
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
Three and Six Months Ended June 30, 1995 and 1994
(Unaudited) and December 31, 1994
(continued)
Note 3 - Related Party Transactions
(a) For Partnership management services rendered to the Partnership, the
General Partner is entitled to receive 10% of all distributions of Cash from
Operations. These amounts totaled $8,352 for the six months ended June 30,
1995 and $14,156 for the six months ended June 30, 1994.
(b) For administrative services rendered to the Partnership, the
General Partner, in accordance with the partnership agreement, was reimbursed
$6,000 for the six months ended June 30, 1995 and 1994, and $3,000 for the
three months ended June 30, 1995 and 1994.
(c) Property management fees incurred in accordance with the
Partnership Agreement to West Coast Realty Management, Inc., an affiliate of
the corporate General Partner, totaled $7,428 for the six months ended June 30,
1995, $12,356 for the six months ended June 30, 1994, $4,226 for the three
months ended June 30, 1995, and $6,268 for the three months ended June 30,
1994.
(d) During 1990, the Partnership acquired a 90% undivided interest in
property located in San Marcos, California (Note 2). The remaining 10%
interest is owned by Associated Planners Realty Growth Fund, an affiliate.
Note 4 - Net Income and Cash Distributions Per Limited Partnership Unit
The Net Income per Limited Partnership Unit was computed in accordance
with the Partnership Agreement on the basis of the number of outstanding
limited partnership units. Cash distributions of $8.50, $6.25 and $12.50 per
unit are reflected for the distribution dates of May 5, 1995, February 3,
1995 and January 31, 1994 respectively. The record date in each case was
March 31, 1995, December 31, 1994 & 1993 respectively.
Note 5 - Subsequent Events
The partnership distributed $50,960 ($10.00 per unit) on August 4,
1995 to Limited Partners of record as of June 30, 1995.
ASSOCIATED PLANNERS REALTY INCOME FUND
(A California Limited Partnership)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITIONAND RESULTS OF OPERATIONS
Introduction
Associated Planners Realty Income Fund (the "Partnership") was
organized in December 1986, under the California Revised Limited Partnership
Act. The Partnership began offering units for sale on October 20, 1987. As
of March 31, 1990, the Partnership had raised $4,652,625 in gross capital
contributions. The Partnership netted approximately $4,173,000 after sales
commissions and syndication costs.
The Partnership was organized for the purpose of investing in,
holding, and managing improved, leveraged income-producing property, such as
residential property, office buildings, commercial buildings, industrial
properties, and shopping centers. The Partnership intends to own and
operate such properties for investment over an anticipated holding period of
approximately five to ten years.
The Partnership's principal investment objectives are to invest in
rental real estate properties which will:
(1) Preserve and protect the Partnership's invested capital;
(2) Provide for cash distributions from operations;
(3) Provide gains through potential appreciation; and
(4) Generate Federal income tax deductions so that during the
early years of property operations, a portion of cash
distributions may be treated as a return of capital for
tax purposes and, therefore, may not represent taxable
income to the limited partners.
ASSOCIATED PLANNERS REALTY INCOME FUND
(A California Limited Partnership)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
The ownership and operation of any income-producing real
estate is subject to those risks inherent in all real estate investments,
including national and local economic conditions, the supply and demand for
similar types of properties, competitive marketing conditions, zoning
changes, possible casualty losses, and increases in real estate taxes,
assessments, and operating expenses, as well as others.
The Partnership is operated by West Coast Realty Advisors, Inc.
("WCRA") (the corporate General Partner) and Mr. W. Thomas Maudlin Jr. (an
individual General Partner), collectively the "General Partner," subject to
the terms of the Amended and Restated Agreement of Limited Partnership. The
Partnership has no employees, and all administrative services are provided by
WCRA, the corporate General Partner.
Results of Operations
Operations for the quarter ended June 30, 1995 reflect an entire
period of operations for all Partnership properties. Rental income for the
three and six months ended June 30, 1995 decreased over that for the three
and six months ended June 30, 1994 by approximately $23,100 and $71,500 as a
result of a vacancy at the San Marcos building from January 8, 1995 to
February 13, 1995. In addition, the new tenant (No Fear Inc.) entered into
a lease at a rate that was 30% less than the rate on the lease of the prior
tenant (Professional Care Products).
At June 30, 1995, the Yorba Center Shopping Center was 90% leased to
seven tenants.
ASSOCIATED PLANNERS REALTY INCOME FUND
(A California Limited Partnership)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
(Continued)
Liquidity and Capital Resources
During the three months ended June 30, 1995, cash decreased by
approximately $3,700 primarily as a result of expenditures for tenant
improvements at the Yorba Center property and leasing commissions and expenses
incurred in connection with the San Marcos property. These latter costs will
be amortized over the life of the new lease. Cash available for distribution
for the three months ended June 30, 1995 was $60,593. The Partnership had a
net income of $33,467, or $5.48 per limited partnership unit, after
depreciation expense of $24,519 and unrealized losses of $2,607 on
investments in government securities for the quarter ended June 30, 1995.
The Partnership's cash reserve is invested primarily in a pool of
government securities managed by an outside independent investment firm.
This reserve is intended to provide stability and safety of principal,
competitive interest rates and quick availability of funds.
With the purchase of the 90% interest in the PROCARE Industrial
Building in January 1990, the Partnership had completed its acquisition
program.
ASSOCIATED PLANNERS REALTY INCOME FUND
(A California Limited Partnership)
PART II
O T H E R I N F O R M A T I O N
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. EXHIBIT AND REPORTS ON FORM 8-K
(a) Information required under this section has been included
in the financial statements.
(b) Reports on Form 8-K
None
ASSOCIATED PLANNERS REALTY INCOME FUND
(A California Limited Partnership)
S I G N A T U R E S
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
ASSOCIATED PLANNERS REALTY
INCOME FUND
A California Limited Partnership
(Registrant)
By: WEST COAST REAL ADVISORS, INC.
A California Corporation
A General Partner
August 11, 1995 William T. Haas
Date William T. Haas
Director and Executive Vice President
Secretary
August 11, 1995 Michael G. Clark
Date Michael G. Clark
Vice President / Treasurer