SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
Amendment #1
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 29, 1998
RETAIL EQUITY PARTNERS LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)
North Carolina 33-15427 56-1590235
(State of incorporation) (Commission File Number) (IRS Employer
Identification No.)
3850 One First Union Center, Charlotte, NC 28202
(Address or principal executive offices, Zip Code)
Registrant's telephone number 704/944-0100
Total number of pages: 8
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Item 2. Acquisition or Disposition of Assets
On September 29, 1998, the Partnership sold the Cape Henry Plaza Shopping
Center to Aegis Realty Operating Partnership LP, an unaffiliated party, for a
contract price of $3,900,000, received in cash. Cape Henry Plaza is located in
Virginia Beach, Virginia. The property contains approximately 50,000 square feet
of rentable space and was recorded in the accounting records of the Partnership
at a net book value of $3,292,000.
This amendment to our report filed October 14, 1998, provides the
required pro forma financial information.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(b) Pro Forma Financial Information.
Pages 4-5 Retail Equity Partners Limited Partnership Unaudited
Pro Forma Condensed Balance Sheet as of June 30, 1998
Pages 6-8 Retail Equity Partners Limited Partnership
Unaudited Pro Forma Condensed Statements of
Operations for the six months ended June 30, 1998,
and for the year ended December 31, 1997
The unaudited pro forma condensed balance sheet as of June 30, 1998, is
presented as if the sale of Cape Henry Shopping Center had occurred on June 30,
1998.
The unaudited pro forma condensed statements of operations for the six
months ended June 30, 1998, and for the year ended December 31, 1997, are
presented as if the sale of Cape Henry Shopping Center had occurred on January 1
of each period presented.
You should read these unaudited statements in conjunction with our Annual
Report on Form 10-K for the year ended December 31, 1997, and our Quarterly
Report on Form 10-Q for the quarter ended June 30, 1998. We believe the pro
forma condensed consolidated financial information provides all adjustments
necessary to reflect the effects of this sale.
No one has audited these pro forma condensed financial statements. These
pro forma statements may not represent what our financial position would have
been if we had really sold Cape Henry Shopping Center on June 30, 1998. These
pro forma statements may not represent how we would have performed if we had
sold Cape Henry Shopping Center at the beginning of the periods presented. In
addition, these pro forma statements do not purport to project our financial
position or results of operations at any future date or for any future period.
(c) Exhibits - none
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SIGNATURES
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 hereunto duly authorized.
Retail Equity Partners Limited Partnership
(Registrant)
November 12, 1998 by: /s/ Philip S. Payne
-----------------------------
Philip S. Payne
(Duly Authorized Agent)
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RETAIL EQUITY PARTNERS LIMITED PARTNERSHIP
- -------------------------------------------------------------------------------
UNAUDITED PRO FORMA CONDENSED BALANCE SHEET
June 30, 1998
Pro Forma
Cape Henry
Historical Sale Pro Forma
----------------- ----------------- -----------------
(A) (B)
Assets
Cash and cash equivalents $ 119,417 $ 344,685 $ 464,102
Restricted cash - tenant security deposits 25,401 (5,076) 20,325
Other current assets 78,151 - 78,151
Deferred costs, net 194 - 194
Property held for sale 6,157,542 (3,291,584) 2,865,958
----------------- ----------------- -----------------
Total assets $6,380,705 $(2,951,975) $3,428,730
================= ================= =================
Liabilities and Partners' Equity (Deficit)
Deed of trust loans payable $6,779,162 $(3,435,289) $3,343,873
Accounts payable and other current liabilities 78,015 (26,610) 51,405
Prepaid rents and tenant security deposits 22,129 (5,076) 17,053
----------------- ----------------- -----------------
6,879,306 (3,466,975) 3,412,331
Partners' equity (deficit):
Limited partners (430,871) 509,850 78,979
General partner (67,730) 5,150 (62,580)
----------------- ----------------- -----------------
Total partners' equity (deficit) (498,601) 515,000 16,399
----------------- ----------------- -----------------
Total liabilities and partners' equity (deficit) $6,380,705 $(2,951,975) $3,428,730
================= ================= =================
See accompanying notes.
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RETAIL EQUITY PARTNERS LIMITED PARTNERSHIP
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NOTES TO UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
(A) Reflects our historical balance sheet contained in our Quarterly Report on
Form 10-Q for the quarter ended June 30, 1998.
(B) Reflects the sale of Cape Henry Plaza Shopping Center and payoff of the
related deed of trust loan as if these transactions had taken place on June 30,
1998:
Sale contract price $ 3,900,000
Less direct costs of sale:
Sale commission (78,000)
Other direct costs (15,416)
-----------------
3,806,584
Net book value of assets sold (3,291,584)
-----------------
$ 515,000
=================
Deed of trust loan paid off $ 3,435,289
Accrued interest paid at payoff 26,610
-----------------
$ 3,461,899
=================
The actual loan balance paid off at September 29, 1998, was $3,426,554.
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RETAIL EQUITY PARTNERS LIMITED PARTNERSHIP
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UNAUDITED PRO FORMA CONDENSED STATEMENTS OF OPERATIONS
For the Six Months Ended June 30, 1998
Pro Forma
Cape Henry
Historical Sale Pro Forma
----------------- ----------------- -----------------
(C) (E)
Revenues
Rental income $510,038 $(258,892) $251,146
Gain on sale of Cape Henry Shopping Center - 515,000 515,000
Interest and other income 3,433 - 3,433
----------------- ----------------- -----------------
513,471 256,108 769,579
Expenses
Property operations 38,898 (19,961) 18,937
General and administrative 32,735 (5,766) 26,969
Property taxes and insurance 51,453 (28,283) 23,170
Management fees 28,224 (8,577) 19,647
Depreciation - - -
Amortization 9,606 (5,058) 4,548
Interest 314,441 (159,340) 155,101
Write-off of deferred costs - 5,167 5,167
----------------- ----------------- -----------------
475,357 (221,818) 253,539
----------------- ----------------- -----------------
Net income $ 38,114 $ 477,926 $516,040
================= ================= =================
Allocation of net income:
Limited partners $ 37,733 $510,880
================= =================
General partner $ 381 $ 5,160
================= =================
See accompanying notes.
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RETAIL EQUITY PARTNERS LIMITED PARTNERSHIP
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UNAUDITED PRO FORMA CONDENSED STATEMENTS OF OPERATIONS
For the Year Ended December 31, 1997
Pro Forma
Cape Henry
Historical Sale Pro Forma
----------------- ----------------- -----------------
(D) (E)
Revenues
Rental income $1,032,474 $(521,455) $511,019
Gain on sale of Cape Henry Shopping Center - 417,000 417,000
Interest and other income 9,205 - 9,205
----------------- ----------------- -----------------
1,041,679 (104,455) 937,224
Expenses
Property operations 91,533 (49,382) 42,151
General and administrative 39,226 (11,270) 27,956
Property taxes and insurance 98,482 (53,534) 44,948
Management fees 55,302 (15,824) 39,478
Depreciation 181,610 (98,243) 83,367
Amortization 19,194 (10,107) 9,087
Interest 632,832 (320,683) 312,149
Write-off of deferred costs - 15,274 15,274
----------------- ----------------- -----------------
1,118,179 (543,769) 574,410
----------------- ----------------- -----------------
Net income (loss) $ (76,500) $ 439,314 $362,814
================= ================= =================
Allocation of net income (loss):
Limited partners $ (75,735) $359,186
================= =================
General partner $ (765) $ 3,628
================= =================
See accompanying notes.
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RETAIL EQUITY PARTNERS LIMITED PARTNERSHIP
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NOTES TO UNAUDITED PRO FORMA CONDENSED STATEMENTS OF OPERATIONS
(C) Reflects our historical statement of operations contained in our Quarterly
Report on Form 10-Q for the quarter ended June 30, 1998.
(D) Reflects our historical statement of operations contained in our Annual
Report on Form 10-K for the year ended December 31, 1997.
(E) Reflects the effect of sale of Cape Henry Shopping Center and payoff of the
related deed of trust loan as if these transactions had taken place on January 1
of the periods shown.
For the For the
Six Months Year
Ended Ended
June 30 December 31
1998 1997
------------- -------------
Rental revenue $258,892 $521,455
Operating expenses 226,985 559,043
------------- --------------
Income (loss) from operating activities $ 31,907 $ (37,588)
============= =============
During 1997, the Partnership recorded depreciation of approximately $98,000 on
Cape Henry Shopping Center assets, included in operating expenses above. These
depreciation charges reduced the recorded net book value of those assets by
$98,000. During 1998, no depreciation was recorded.
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