SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(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 0-14528
Century Pension Income Fund XXIII,
A California Limited Partnership
(Exact name of Registrant as specified in its charter)
California 94-2963120
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
5665 Northside Drive N.W., Ste. 370, Atlanta, Georgia 30328
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code (404) 916-9090
N/A
Former name, former address and fiscal year, if changed since last report.
Indicate by check mark whether 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_____
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a
plan confirmed by a court. Yes ______ No _____
APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares
outstanding of each of the issuer's classes of common stock, as
of the latest practicable date __________________.
1 of 16
CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995
A California Limited Partnership
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
Consolidated Balance Sheets
June 30, December 31,
1995 1994
(Unaudited) (Audited)
Assets
Cash and cash equivalents $ 6,306,000 $ 5,202,000
Restricted cash 145,000 148,000
Other assets 1,234,000 1,419,000
Mortgage loans receivable, net 1,137,000 1,749,000
Real Estate:
Real estate 95,997,000 93,913,000
In-substance foreclosure property -- 1,985,000
Accumulated depreciation (17,810,000) (16,529,000)
Allowance for impairment of value (7,091,000) (7,091,000)
------------- -------------
Real estate, net 71,096,000 72,278,000
Deferred sales commissions, net 955,000 1,087,000
Deferred organization expenses, net 567,000 644,000
Deferred costs, net 805,000 773,000
------------- -------------
Total assets $ 82,245,000 $ 83,300,000
============= =============
Liabilities and Partners' Deficit
Deferred income, accrued expenses and
other liabilities $ 1,400,000 $ 1,236,000
Accrued interest - notes payable 645,000 638,000
Accrued interest - non-recourse promissory
notes 1,048,000 1,048,000
Notes payable 16,956,000 16,947,000
Non-recourse Promissory Notes:
Principal 41,939,000 41,939,000
Deferred interest payable 27,661,000 26,278,000
------------- -------------
Total liabilities 89,649,000 88,086,000
------------- -------------
Minority interest in consolidated joint
ventures 7,441,000 7,681,000
------------- -------------
Commitments and Contingencies
Partners' Deficit:
General partner (1,971,000) (1,903,000)
Limited partners (95,789 units outstanding
at June 30, 1995 and December 31, 1994) (12,874,000) (10,564,000)
------------- -------------
Total partners' deficit (14,845,000) (12,467,000)
------------- -------------
Total liabilities and partners' deficit $ 82,245,000 $ 83,300,000
============= =============
See notes to consolidated financial statements.
2 of 16
CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995
A California Limited Partnership
Consolidated Statements of Operations (Unaudited)
For the Six Months Ended
June 30, 1995 June 30, 1994
Revenues:
Rental $ 5,684,000 $ 5,295,000
Interest income on mortgage loans 41,000 162,000
Interest and other income 657,000 99,000
------------ ------------
Total revenues 6,382,000 5,556,000
------------ ------------
Expenses:
Interest to Promissory Note Holders 2,431,000 2,431,000
Amortization 209,000 209,000
Operating 2,267,000 2,483,000
Depreciation 1,281,000 1,325,000
Interest 827,000 815,000
General and administrative 413,000 419,000
Loss on satisfaction of mortgage loan
receivable 978,000 --
------------ ------------
Total expenses 8,406,000 7,682,000
------------ ------------
Loss before minority interest in joint
ventures' operations (2,024,000) (2,126,000)
Minority interest in joint ventures' operations (333,000) (98,000)
------------ ------------
Net loss $(2,357,000) $(2,224,000)
============ ============
Net loss per individual investor unit $ (24) $ (23)
============ ============
See notes to consolidated financial statements.
3 of 16
CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995
A California Limited Partnership
Consolidated Statements of Operations (Unaudited)
For the Six Months Ended
June 30, 1995 June 30, 1994
Revenues:
Rental $ 2,756,000 $ 2,800,000
Interest income on mortgage loans 21,000 80,000
Interest and other income 591,000 74,000
------------ ------------
Total revenues 3,368,000 2,954,000
------------ ------------
Expenses:
Interest to Promissory Note Holders 1,215,000 1,215,000
Amortization 104,000 104,000
Operating 1,207,000 1,272,000
Depreciation 652,000 663,000
Interest 419,000 418,000
General and administrative 157,000 190,000
------------ ------------
Total expenses 3,754,000 3,862,000
------------ ------------
Loss before minority interest in joint ventures'
operations (386,000) (908,000)
Minority interest in joint ventures' operations (237,000) (28,000)
------------ ------------
Net loss $ (623,000) $ (936,000)
============ ============
Net loss per individual investor unit $ (6) $ (10)
============ ============
See notes to consolidated financial statements.
4 of 16
CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995
A California Limited Partnership
Consolidated Statements of Cash Flows (Unaudited)
For the Six Months Ended
June 30, 1995 June 30, 1994
Operating Activities:
Net loss $(2,357,000) $(2,224,000)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization 1,614,000 1,661,000
Minority interest in joint ventures'
operations 333,000 98,000
Loss on satisfaction of notes receivable 978,000 --
Deferred interest added to note payable
principal 6,000 15,000
Provision for doubtful receivables -- 31,000
Deferred interest on non-recourse
promissory notes 1,383,000 1,383,000
Deferred costs paid (156,000) (110,000)
Changes in operating assets and liabilities:
Other assets 185,000 (50,000)
Deferred income, accrued expenses and other
liabilities 174,000 343,000
------------ ------------
Net cash provided by operating activities 2,160,000 1,147,000
------------ ------------
Investing Activities:
Cost of real estate acquired through
foreclosure (1,114,000) --
Additions to real estate (358,000) (422,000)
Restricted cash 3,000 61,000
Proceeds from cash investments -- 3,357,000
Proceeds from satisfaction of mortgage loan
receivable 1,007,000 --
------------ ------------
Net cash (used in) provided by investing
activities (462,000) 2,996,000
------------ ------------
Financing Activities:
Joint venture partner distributions (573,000) --
Cash distribution to general partner (21,000) (21,000)
------------ ------------
Cash (used in) financing activities (594,000) (21,000)
------------ ------------
Increase in Cash and Cash Equivalents 1,104,000 4,122,000
Cash and Cash Equivalents at Beginning of
Period 5,202,000 923,000
------------ ------------
Cash and Cash Equivalents at End of Period $ 6,306,000 $ 5,045,000
============ ============
Supplemental Disclosure of Cash Flow Information:
Interest paid in cash during the period
- notes payable $ 820,000 $ 794,000
============ ============
Interest paid in cash during the period
- non-recourse promissory notes $ 1,048,000 $ 1,048,000
============ ============
Supplemental Disclosure of Non-Cash Investing and
Financing Activities:
Deferred interest added to note
payable principal $ 3,000 --
============ ============
Mortgage loan receivable reclassified
to real estate (Note 4) $ 612,000 --
============ ============
See notes to consolidated financial statements.
5 of 16
CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995
A California Limited Partnership
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. General
The accompanying consolidated financial statements, footnotes and
discussions should be read in conjunction with the consolidated financial
statements, related footnotes and discussions contained in the
Partnership's Annual Report for the year ended December 31, 1994. Certain
accounts have been reclassified in order to conform to the current period.
The financial information contained herein is unaudited. In the opinion of
management, however, all adjustments necessary for a fair presentation of
such financial information have been included. All adjustments are of a
normal recurring nature, except as described in Notes 4 and 5.
The results of operations for the six and three months ended June 30, 1995
and 1994 are not necessarily indicative of the results to be expected for
the full year.
2. Transactions with Related Parties
(a) An affiliate of NPI, Inc. received reimbursement of administrative
expenses amounting to $48,000 and $60,000 during the six months
ended June 30, 1995 and 1994, respectively. These reimbursements
are primarily included in general and administrative expenses.
(b) An affiliate of NPI, Inc. is entitled to receive 5% of annual gross
receipts from certain Partnership properties it manages. For the
six months ended June 30, 1995 and 1994, affiliates of NPI, Inc.
received $51,000 and $33,000, respectively, which are included in
operating expenses.
(c) During each of the six month periods ended June 30, 1995 and 1994,
an affiliate of NPI, Inc. was paid a $16,000 and $10,000 fee
($11,000 and $7,000 allocated to the Partnership, respectively)
relating to successful real estate tax appeals on the Partnership's
Coral Palm Plaza, Alpha Business Center and Westpoint Business Center
joint venture properties. These fees are included in operating
expenses.
(d) The general partner received cash distributions totaling $21,000,
which is equal to 2 percent of interest paid to Promissory Note
holders, during each of the six month periods ended June 30, 1995
and 1994.
(e) An affiliate of the general partner is entitled to receive a
partnership management fee in an amount equal to 10 percent of
cash available for distribution before interest payments to the
Promissory Note Holders. For each of the six month periods ended
June 30, 1995 and 1994, MGP received $55,000. These fees are
included in general and administrative expenses.
3. Restricted Cash
Restricted cash at June 30, 1995 and 1994 represents cash maintained at
Sunnymead Towne Center, which is restricted as to its use pursuant to a
court approved reorganization plan and the modified note agreements.
6 of 16
CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995
A California Limited Partnership
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
4. Mortgage Loans Receivable
The Partnership entered into various agreements with the
borrowers on two of the Partnership's second mortgage loans
receivable, which were cross collateralized and in default.
The properties are located in Irvine ("Irvine") and Costa
Mesa, California ("Costa Mesa"). The borrower on the Irvine
property had terminated payments on the mortgage loan
receivable in October 1994 and, in January 1995, a court
appointed receiver was placed on the Irvine property. As a
result, on April 20, 1995, the Partnership acquired the
Irvine property through deed in lieu of foreclosure and
satisfied the existing first mortgage encumbering the
property in the principal amount (including expenses) of
approximately $1,114,000. On May 31, 1995, the receiver on
the Irvine property was dismissed. The Partnership has
accrued $115,000 of net rental income due from the receiver
for the five months ended May 31, 1995. The Partnership
commenced operating the property on June 1, 1995. The
mortgage loan receivable, net of the previously recorded
provision for impairment of value of $1,250,000, has been
reclassified as real estate at June 30, 1995. The mortgagor
of the Costa Mesa property assumed $400,000 of the principal
amount of the debt encumbering the Irvine property resulting
in an aggregate outstanding principal balance of $1,137,000.
The Partnership extended the maturity date of the loan on
the Costa Mesa property to March 31, 2000. Monthly payments
to the Partnership remain the same. Upon the sale of the
Costa Mesa property, the Partnership will be entitled to
contingent interest of 50% of the amount received in excess
of the current debt.
On June 20, 1995, the Partnership received a notice from the first
mortgagee on 1726 M Street, indicating that they expect to foreclose
on this property shortly. As a result, the Partnership will lose its
second mortgage interest in this property. In 1992, the Partnership
fully reserved for this contingency.
5. Loss on Satisfaction of Mortgage Loan Receivable on In-Substance
Foreclosure Property
On April 28, 1995, the Partnership received $1,007,000 in full
satisfaction of its mortgage loan receivable on the Warren, Michigan
property. The property had been classified as an in-substance
foreclosure property. The Partnership accepted the discounted
settlement because it determined that, based upon projected future
operational cash flow of the property, and the cost of litigation, it
appeared likely that a substantial portion of contractual obligations
would not be collected. The Partnership recorded a $978,000 loss on
satisfaction of a mortgage loan receivable at June 30, 1995. A
$1,850,000 provision for doubtful mortgage loan and interest
receivable had previously been recorded in 1992.
6. Other Income
The Partnership accepted a lease buy-out of $800,000 in December 1994
from a significant tenant that had occupied 27,000 square feet at
Coral Palm Plaza (and was received in 1995). During June 1995,
management re-leased 20,000 square feet of the unoccupied space, on
similar terms, and recognized a portion of the lease buy-out in the
amount of $517,000. The remaining portion has been deferred and is
currently being amortized as rental income over the remaining eight
years of the former tenant's lease. Management is negotiating to
re-lease the remaining 7,000 square feet.
7 of 16
CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995
A California Limited Partnership
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.
This item should be read in conjunction with the Consolidated
Financial Statements and other Items contained elsewhere in this Report.
Liquidity and Capital Resources
As of August 1, 1995, Registrant's real estate properties consist of
one apartment complex located in Georgia, four business parks located
in Florida, North Carolina, California and Texas and three shopping
centers located in Kentucky, Georgia and California. Registrant also
holds joint venture interests in three business parks located in
Minnesota and a shopping center located in Florida. The properties
are leased to tenants subject to leases with original lease terms
ranging from six months to one year for residential properties and
remaining lease terms of up to seventeen years for commercial
properties. Registrant receives rental income from its properties and
is responsible for operating expenses, administrative expenses,
capital improvements and debt service payments. Registrant also holds
two mortgage loans. As described in Item 1, Note 4, in April 1995,
Registrant acquired the Irvine property by deed in lieu of foreclosure
and satisfied the first mortgage encumbering this property, in the
amount of approximately $1,114,000, including expenses. As described
in Item 1, Note 5, on April 28, 1995, the loan encumbering
Registrant's in-substance foreclosure property was satisfied at a
discount. On June 20, 1995, the Partnership received a notice from
the first mortgagee on 1726 M Street, indicating that they expect to
foreclose on this property shortly. As a result, the Partnership will
lose its second mortgage interest in this property. In 1992, the
Partnership fully reserved for this contingency. The mortgagor of the
Costa Mesa property assumed $400,000 of the debt encumbering the
Irvine property. In addition, Registrant extended the loan on the
Costa Mesa property to March 31, 2000 (see Item 1, Note 4). All of
Registrant's properties, except Registrant's Valley Apartments,
generated positive cash flow during the six months ended June 30,
1995. Registrant's Valley Apartments generated negative cash flow for
the six months ended June 30, 1995, due to capital improvements
(discussed below).
Registrant uses working capital reserves from any undistributed cash
flow from operations and proceeds from cash investments as its primary
source of liquidity. Cash distributions to limited partners remain
suspended while the Managing General Partner evaluates the capital
needs of Registrant. Promissory Note Holders continue to receive the
required minimum interest payments. Registrant accepted a lease
buy-out of $800,000 in December 1994 from a significant tenant that
had occupied 27,000 square feet at Coral Palm Plaza (and was received
in 1995). During June 1995, management re-leased 20,000 square feet
of the unoccupied space, on similar terms, and recognized a portion of
the lease buy-out in the amount of $517,000. The remaining portion
has been deferred and is currently being amortized as rental income
over the remaining eight years of the former tenant's lease.
Management is negotiating to re-lease the remaining 7,000 square feet.
In May 1995, a significant tenant at Registrant's Interrich Plaza
vacated. Management is currently attempting to re-lease the unoccupied
space, which might require significant expenditures for tenant
installations and leasing commissions. During the three months ended
June 30, 1995, a construction project to replace the breezeways at
Registrant's Valley Apartments was started and completed at a cost of
approximately $260,000. Registrant has no other plans for material
capital expenditures.
8 of 16
CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995
A California Limited Partnership
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.
Liquidity and Capital Resources (Continued)
The level of liquidity based on cash and cash equivalents experienced
a $1,104,000 increase at June 30, 1995, as compared to December 31,
1994. Registrant's $2,160,000 of net cash provided by operating
activities was partially offset by $462,000 of net cash used in
investing activities, $573,000 of cash distributed to the joint
venture partner (financing activities) and $21,000 of cash distributed
to the general partner (financing activities). Cash used in investing
activities consisted of $1,114,000 of cash paid to satisfy the first
mortgage encumbering the Medtronics property, which Registrant
acquired through deed in lieu of foreclosure, and $358,000 of cash
used for improvements to real estate, primarily at Registrant's Valley
Apartments. The cash used in investing activities was partially
offset by a $3,000 decrease in restricted cash and $1,007,000 of cash
received by Registrant in satisfaction, at a discount, of the mortgage
loan encumbering Registrant's in-substance foreclosure property
(investing activities). All other increases (decreases) in certain
assets and liabilities are the result of the timing of receipt and
payment of various operating activities.
Working capital reserves are currently being invested in a money
market account or in repurchase agreements secured by United States
Treasury obligations. The Managing General Partner believes that, if
market conditions remain relatively stable, cash flow from operations,
when combined with working capital reserves, will be sufficient to
fund required capital improvements, regular debt service payments and
minimum interest payments on the Promissory Notes in 1995 and the
foreseeable future. In the event that additional resources are
required, the Managing General Partner will attempt to arrange further
financing or refinancing.
With respect to limited partners, at this time it appears that the
investment objective of capital growth will not be attained and that
investors will not receive a return of all their invested capital and
any portions that are returned will come from cash flow. The extent
to which invested capital is returned to investors is dependent upon
the performance of Registrant's properties and the markets in which
such properties are located and on the sales price of the properties.
In this regard, it is anticipated at this time that some of the
properties will continue to be held longer than originally expected.
The ability to hold and operate these properties is dependent on
Registrant's ability to obtain additional financing, refinancing or
debt restructuring, as required.
As to the Promissory Note Holders and assuming the notes are held to
maturity, at this time it appears that all remaining principal and a
portion of deferred interest will be returned. The ability of
Registrant to make such payments of principal and interest is
dependent upon the ultimate sales prices, timing of sales of the
remaining properties, net proceeds received by Registrant from sales
and refinancing and overall Partnership operations. Based on current
projections, the Promissory Note Holders will not receive any payment
of residual interest.
9 of 16
CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995
A California Limited Partnership
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.
Real Estate Market
The national real estate market has suffered from the effects of the
real estate recession including, but not limited to, a downward trend
in market values of existing properties. In addition, the bailout of
the savings and loan associations and sales of foreclosed properties
by auction reduced market values and caused a further restriction on
the ability to obtain credit. As a result, Registrant's ability to
refinance or sell its existing properties may be restricted. These
factors caused a decline in market property values and serve to reduce
market rental rates and/or sales prices. Management believes that the
emergence of new institutional purchasers, including real estate
investment trusts and insurance companies should create a more
favorable market value for Registrant's properties in the future.
Results of Operations
Six Months Ended June 30, 1995 vs. June 30, 1994
Operating results, before minority interest in joint ventures'
operations of $333,000, improved by $102,000 for the six months ended
June 30, 1995 as compared to 1994, due to an increase in revenues of
$826,000 which was partially offset by an increase in expenses of
$724,000. The increase in expenses is due to the $978,000 loss on
satisfaction of a mortgage loan receivable on Registrant's in
substance foreclosure property, Century Center.
Operating results, before minority interest in joint ventures'
operations and excluding the Medtronics property (which was acquired
through deed in lieu of foreclosure on April 20, 1995), declined by
$1,000 due to an increase in expenses of $685,000 which was offset by
an increase in revenues of $684,000.
Rental revenues, before minority interest in joint ventures'
operations and excluding the Medtronics property, increased by
$247,000, for the six months ended June 30, 1995, as compared to 1994,
primarily due to occupancy increases at Registrant's Highland Park
Commerce Center and Center Stage properties, and at Registrant's Alpha
and Westpoint Business Center joint venture properties. Occupancy
declined at Registrant's Interrich Plaza property. The decline in
occupancy at Coral Palm Plaza was the result of a major tenant's lease
buy-out in December 1994, which was offset by amortization of the
tenant's termination payment. Occupancy at Registrant's other
properties remained relatively constant. In addition, rental rates
increased at Registrant's Valley Apartments and Regency Centre
properties. Interest and other income increased by $558,000 primarily
due to the recognition of $517,000 of lease termination income at
Registrant's Coral Palm Plaza joint venture property. Interest income
also increased due to an increase in average working capital reserves
available for investment and increased interest rates. Interest
income on mortgage loans declined by $121,000 due to the termination
of payment by the borrower on the Medtronics mortgage loan in October
1994. Registrant acquired the Medtronics property through deed in
lieu of foreclosure in April 1995.
10 of 16
CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995
A California Limited Partnership
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.
Results of Operations (Continued)
Six Months Ended June 30, 1995 vs. June 30, 1994 (Continued)
Expenses, before minority interest in joint ventures' operations and
excluding the Medtronics property, increased for the six months ended
June 30, 1995, as compared to 1994, due to the loss on satisfaction of
the mortgage loan receivable of $978,000. Registrant experienced
decreases in operating expenses of $233,000 and depreciation expense
of $66,000 which were only slightly offset by an increase in interest
expense of $12,000. Operating expenses declined primarily due to
legal fees relating to Registrant's Sunnymead Towne Center and Regency
Center properties during the 1994 period, which were only partially
offset by increased repairs and maintenance expense at Registrant's
Valley Apartments property. Depreciation expense declined due to the
provision for impairment of value recorded on Registrant's Coral Palm
Plaza joint venture property. In addition, general and administrative
expenses declined by $6,000 due to lower reimbursed expenses for the
six months ended June 30, 1995, as compared to 1994. All other
expenses remained relatively constant.
Three Months Ended June 30, 1995 vs. June 30, 1994
Operating results, before minority interest in joint ventures'
operations of $237,000, improved by $522,000 for the three months
ended June 30, 1995, as compared to 1994, due to an increase in
revenues of $414,000 and a decrease in expenses of $108,000.
Operating results, before minority interest in joint ventures'
operations and excluding the Medtronics property, improved $419,000
due to an increase in revenues of $272,000 and a decrease in expenses
of $147,000.
Rental revenues, before minority interest in joint ventures'
operations and excluding the Medtronics property, decreased by
$186,000, for the three months ended June 30, 1995, as compared to
1994, due to occupancy decreases at Registrant's Commerce Plaza and
Interrich Plaza properties and an adjustment of estimated escalation
billbacks at Registrant's Regency Centre, Commerce Plaza, and Centre
Stage properties in the prior year comparative period. Occupancy
increased at Registrant's Centre Stage Shopping Center and at
Registrant's Alpha and Westpoint Business Center joint venture
properties. The decline in occupancy at Coral Palm Plaza was the
result of a major tenant's lease buy-out in December 1994, which was
offset by amortization of the tenant's termination payment. Occupancy
at Registrant's other properties remained relatively constant. In
addition, rental rates increased at Registrant's Valley Apartments and
Regency Centre properties. Interest and other income increased by
$517,000 due to the recognition of $517,000 of lease termination
income at Registrant's Coral Palm joint venture property. Interest
income remained constant as the increase in average working capital
reserves available for investment and increased interest rates, were
offset by an overaccrual of interest income in the prior year
comparative period. Interest income on mortgage loans declined by
$59,000 due the termination of payment by the borrower on the
Medtronics mortgage loan in October 1994. Registrant acquired the
Medtronics property through deed in lieu of foreclosure in April of
1995.
11 of 16
CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995
A California Limited Partnership
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.
Results of Operations (Continued)
Three Months Ended June 30, 1995 vs. June 30, 1994 (Continued)
Expenses, before minority interest in joint ventures' operations and
excluding the Medtronics property, decreased for the three months
ended June 30, 1995, as compared to 1994, due to decreases in
operating expenses of $82,000 and depreciation expense of $33,000,
which were slightly offset by a $1,000 increase in interest expense.
Operating expenses declined primarily due to legal fees relating to
Registrant's Sunnymead Towne Center and Regency Center properties
during the 1994 period, which were only partially offset by increased
repairs and maintenance expense at Registrant's Valley Apartments
property. Depreciation expense declined due to the provision for
impairment of value recorded on Registrant's Coral Palm Plaza joint
venture property. In addition, general and administrative expenses
declined by $33,000 primarily due to lower reimbursed expenses during
the three months ended June 30, 1995, as compared to 1994. All other
expenses remained relatively constant.
12 of 16
CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995
A California Limited Partnership
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.
Properties
A description of the properties in which Registrant has an ownership
interest during the period covered by this report, along with occupancy
data, follows:
CENTURY PENSION INCOME FUND XXIII,
A California Limited Partnership
OCCUPANCY SUMMARY
Average
Occupancy Rate (%)
-------------------------------
Six Months Three Months
Ended Ended
Date of June 30, June 30,
Name and Location Purchase Type Size 1995 1994 1995 1994
- ---------------- -------- ---- ---- ---- ---- ---- ----
Commerce Plaza 03/86 Business 83,000 96 99 92 98
Tampa, Florida Park sq. ft.
Regency Centre 05/86 Shopping 124,000 99 99 99 99
Lexington, Kentucky Center sq. ft.
Highland Park Commerce
Center - Phase II 09/86 Business 67,000 92 89 92 93
Charlotte, North Carolina Park sq. ft.
Interrich Plaza (1) 04/88 Business 53,000 87 94 76 91
Richardson, Texas Park sq. ft.
Centre Stage
Shopping Center (2) 01/90 Shopping 96,000 97 94 98 93
Norcross, Georgia Center sq. ft.
Sunnymead Towne Center (3) 03/91 Shopping 173,000 91 91 91 91
Moreno Valley, California Center sq. ft.
Valley Apartments (4) 04/91 Apartments 268 units 96 96 96 95
Atlanta, Georgia
Medtronics (5) 04/95 Business 35,000
Irvine, California Park sq. ft. 100 - 100 -
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CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995
A California Limited Partnership
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.
Properties (Continued)
Average
Occupancy Rate (%)
------------------------
Six Months Three Months
Ended Ended
Date of June 30, June 30,
Name and Location Purchase Type Size 1995 1994 1995 1994
- ----------------- -------- ---- ---- ---- ---- ---- ----
Coral Palm Plaza Joint
Venture:
Coral Palm Plaza 01/87 Shopping 135,000 67 85 67 87
Coral Springs, Florida Center sq. ft.
Minneapolis Business Parks
Joint Venture:
Alpha Business Center 05/87 Business 172,000 95 86 95 87
Bloomington, Minnesota Park sq. ft.
Plymouth Service Center 05/87 Business 74,000 100 97 100 100
Plymouth, Minnesota Park sq. ft.
Westpoint Business Center 05/87 Business 161,000 91 73 91 72
Plymouth, Minnesota Park sq. ft.
(1) Property was acquired through foreclosure of a mortgage loan receivable in
April 1988.
(2) Property was acquired through deed in lieu of foreclosure of a mortgage
loan receivable in January 1990.
(3) Property was acquired through foreclosure of a mortgage loan receivable in
March 1991.
(4) Property was acquired through foreclosure of a mortgage loan receivable in
April 1991.
(5) Property was acquired through deed in lieu of foreclosure of a mortgage
loan receivable in April 1995.
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CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995
A California Limited Partnership
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
No report on Form 8-K was required to be filed during the period.
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CENTURY PENSION INCOME FUND XXIII - FORM 10-Q - JUNE 30, 1995
A California Limited Partnership
SIGNATURE
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.
CENTURY PENSION INCOME FUND XXIII,
A California Limited Partnership
By: FOX PARTNERS V
Its General Partner
By: FOX CAPITAL MANAGEMENT CORPORATION
A General Partner
/S/ ARTHUR N. QUELER
-------------------------------------------
Secretary/Treasurer and Director
(Principal Financial Officer)
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