SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K/A
Amendment No. 1 to
Current Report
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Date of Original Report: May 14, 1997
CORNERSTONE REALTY INCOME TRUST, INC.
(Exact name of registrant as specified in its charter)
VIRGINIA 0-23954 54-1589139
(State of (Commission (IRS Employer
Incorporation) File Number) Identification No.)
306 East Main Street
Richmond, Virginia 23219
(Address of principal (Zip Code)
executive offices)
Registrant's telephone number, including area code:
(804) 643-1761
CORNERSTONE REALTY INCOME TRUST, INC.
FORM 8-K/A
Index
Page No.
Item 7. Financial Statements, Pro Forma Financial
Information and Exhibits
b. Independent Auditors' Report
(Dunwoody Springs Apartments)
Historical Statement of Income
and Direct Operating Expenses
(Dunwoody Springs Apartments)
Note to Historical Statement of
Income and Direct Operating Expenses
(Dunwoody Springs Apartments)
c. Pro Forma Statement of Operations for
the Six Months ended June 30, 1997
(unaudited)
Pro Forma Balance Sheet as of
June 30, 1997 (unaudited)
Pro Forma Statement of Operations
for the year ended December 31, 1996
(unaudited)
d. Exhibit
23.1 Consent of Independent Auditors
(Dunwoody Springs Apartments)
-2-
The Company hereby amends Items 7.b. and 7.c. of its Current Report on
Form 8-K dated May 14, 1997 as follows:
-3-
ITEM 7.b.
-4-
[LETTERHEAD]
L.P. MARTIN & COMPANY
A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
4132 INNSLAKE DRIVE
GLEN ALLEN, VIRGINIA 23060
PHONE: (804) 346-2626
FAX: (804) 346-9311
INDEPENDENT AUDITORS' REPORT
The Board of Directors
Cornerstone Realty Income Trust, Inc.
Richmond, Virginia
We have audited the accompanying statement of income and direct
operating expenses exclusive of items not comparable to the proposed future
operations of the property Dunwoody Springs Apartments located in Dunwoody,
Georgia for the twelve month period ended June 30, 1997. This statement is the
responsibility of the management of Dunwoody Springs Apartments. Our
responsibility is to express an opinion on this 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 is free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the statement. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall presentation of the statement. We believe that
our audit provides a reasonable basis for our opinion.
The accompanying statement was prepared for the purpose of complying
with the rules and regulations of the Securities and Exchange Commission (for
inclusion in a filing by Cornerstone Realty Income Trust, Inc.) and excludes
material expenses, described in Note 2 to the statement, that would not be
comparable to those resulting from the proposed future operations of the
property.
In our opinion, the statement referred to above presents fairly, in all
material respects, the income and direct operating expenses of Dunwoody Springs
Apartments (as defined above) for the twelve month period ended June 30, 1997,
in conformity with generally accepted accounting principles.
/s/ L.P. Martin & Co., P.C.
---------------------------
Richmond, Virginia
September 26, 1997
DUNWOODY SPRINGS APARTMENTS
STATEMENT OF INCOME AND DIRECT OPERATING EXPENSES EXCLUSIVE OF
ITEMS NOT COMPARABLE TO THE PROPOSED FUTURE
OPERATIONS OF THE PROPERTY
TWELVE MONTH PERIOD ENDED JUNE 30, 1997
INCOME
- ------
Rental and Other Income $2,463,823
----------
DIRECT OPERATING EXPENSES
- -------------------------
Administrative and Other 204,607
Insurance 54,327
Repairs and Maintenance 376,874
Taxes, Property 193,844
Utilities 193,261
----------
TOTAL DIRECT OPERATING EXPENSES 1,022,913
----------
Operating income exclusive of items not
comparable to the proposed future operations
of the property $ 1,440,910
===========
See accompanying notes to the financial statement.
DUNWOODY SPRINGS APARTMENTS
NOTES TO THE STATEMENT OF INCOME AND DIRECT OPERATING EXPENSES
EXCLUSIVE OF ITEMS NOT COMPARABLE TO THE PROPOSED FUTURE
OPERATIONS OF THE PROPERTY
TWELVE MONTH PERIOD ENDED JUNE 30, 1997
NOTE 1 - ORGANIZATION
- ---------------------
Dunwoody Springs Apartments is a 350 unit garden and loft style apartment
complex located on 29.5 acres in Dunwoody, Georgia. The assets comprising the
property were owned by TGM Realty Partners II Limited Partnership, an entity
unaffiliated with Cornerstone Realty Income Trust, Inc., during the financial
statement period. Cornerstone Realty Income Trust, Inc. subsequently purchased
the property.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICES
- --------------------------------------------------
Revenue and Expense Recognition - The accompanying statement of rental
- -------------------------------
operations has been prepared using the accrual method of accounting. In
accordance with Rule 3-14 of Regulations S-X of the Securities and Exchange
Commission, the statement of income and direct operating expenses excludes
interest and non rent related income and expenses not considered comparable to
those resulting from the proposed future operations of the property. Excluded
expenses are mortgage interest, property depreciation, amortization and
management fees.
Estimates - The preparation of financial statements in conformity with generally
- ---------
accepted accounting principles requires management of make estimates and
assumptions that affect the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
Repairs and Maintenance - Repairs and maintenance costs are expensed as
- -----------------------
incurred, while significant improvements, renovations and replacements are
capitalized.
Advertising - Advertising costs are expensed in the period incurred.
- -----------
ITEM 7.c.
-8-
Pro Forma Statement of Operations for the six months ended June 30,
1997 (unaudited)
The Unaudited Pro Forma Statement of Operations for the six-month period ended
June 30, 1997 is presented as if 7 of the 9 Property acquisitions during 1997
had occurred on January 1, 1997. The Unaudited Pro Forma Statement of
Operations assumes the Company qualifying as a REIT, distributing at least 95%
of its taxable income, and, therefore, incurred no federal income tax liability
for the period presented. In the opinion of management, all adjustments
necessary to reflect the effects of these transactions have been made.
The Unaudited Pro Forma Statement of Operations is presented for comparative
purposes only and is not necessarily indicative of what the actual results of
the Company would have been for the period ended June 30, 1997 if the
acquisitions had occurred at the beginning of the period presented, nor does it
purport to be indicative of the results of operations in future periods. The
Unaudited Pro Forma Statement of Operations should be read in conjunction with,
and is qualified in its entirety by, the respective historical financial
statements and notes thereto of the Company incorporated by reference into this
Prospectus.
Historical Westchase Paces Arbor Paces Forest Ashley Run
Statement of Pro Forma Pro Forma Pro Forma Pro Forma
Operations Adjustments Adjustments Adjustments Adjustments
---------- ----------- ----------- ----------- -----------
Date of Acquisitions - 1/15/97 3/1/97 3/1/97 4/30/97
Revenues from rental properties $31,876,837 $ 166,656 $128,993 $154,702 $916,820
Other income $902,706
Rental expenses:
Utilities 2,847,570 12,070 3,888 4,815 58,045
Repairs and maintenance 3,233,953 25,811 19,399 19,103 119,001
Taxes and insurance 2,834,559 16,024 8,094 9,108 69,240
Property management 2,572,591 - - - -
Advertising 914,638 4,139 3,154 3,298 17,373
General and administrative 848,229 - - - -
Amortization and other depreciation 33,465 - - - -
Depreciation of rental property 6,957,190 - - - -
Other operating expenses 945,020 - - - -
Other - 12,416 9,461 9,894 52,118
Management contract termination 271,998 - - - -
--------- --------- --------- --------- ---------
21,459,213 70,460 43,996 46,218 315,777
Income before interest income (expense) 11,320,330 96,196 84,997 108,484 601,043
Interest income 103,840 - - - -
Interest expense (2,893,126) - - - -
---------- --------- --------- --------- ---------
Net income $8,531,044 $96,196 $84,997 $108,484 $601,043
Net income per share $0.28
-----
Wgt. avg. number of shares of outstanding 30,210,173
----------
Carlyle Summit Dunwoody 1997
Pro Forma Pro Forma Pro Forma Pro Forma Total
Adjustments Adjustments Adjustments Adjustments Pro Forma
----------- ----------- ----------- ----------- -----------
-
Date of Acquisitions 4/30/97 5/13/97 7/25/97
Revenues from rental properties $637,842 536,210 1,231,912 - $35,649,972
Other Income 902,706
Rental expenses:
Utilities 63,946 21,211 96,630 - 3,108,175
Repairs and maintenance 92,405 75,528 188,437 - 3,773,637
Taxes and insurance 46,970 34,987 124,086 - 3,143,068
Property management - - - - 2,572,591
Advertising 12,343 18,267 25,576 - 998,788
General and administrative - - - - 848,229
Amortization and other depreciation - - - - 33,465
Depreciation of rental property - - - 659,199 (A) 7,616,389
Other operating expenses - - - - 945,020
Other 37,029 54,801 76,728 - 252,447
Management contract termination - - - - 271,998
--------- --------- --------- --------- ---------
252,693 204,794 511,457 659,199 23,563,807
Income before interest income (expense) 385,149 331,416 720,455 (659,199) 12,988,871
Interest income - - - - 103,840
Interest expense - - - (346,258) (B) (3,239,384)
--------- --------- --------- --------- ---------
Net income $385,149 $331,416 $720,455 ($1,005,457) $9,853,327
Net income per share $0.29
-----
Wgt. avg. number of shares of outstanding 3,899,511 (C) 34,109,684
========== ----------
(A) Represents the depreciation expense of the properties acquired based on the
purchase price, excluding amounts allocated to land, of the properties for the
period of time not owned by the Company. The weighted average life of the
property depreciated was 27.5 years.
(B) Represents the interest expense for 4 of the 7 Properties for the period in
which the properties were not owned for the six month period ended June 30,
1997, interest was computed based on interest rates under the Company's line of
credit in effect at the time of the respective acquisition.
(C) Represents additional common shares used to purchase Ashley Run, Carlyle,
Summit and a portion of Dunwoody based upon purchase prices of $18,000,000,
$11,580,000, $9,475,000 and $10,560,312 (total purchase price of $15,200,000),
respectively and common shares issued in April, 1997 with net proceeds of
$9.5875 per share to the Company.
Pro Forma Balance Sheet as of June 30, 1997 (unaudited)
The Unaudited Pro Forma Balance Sheet gives effect to the property acquisition
in July, 1997 having occurred on June 30, 1997.
The Unaudited Pro Forma Balance Sheet is presented for comparative purposes only
and is not necessarily indicative of what the actual financial position of the
Company would have been at June 30, 1997, nor does it purport to represent the
future financial position of the Company. This Unaudited Pro Forma Balance
Sheet should be read in conjunction with, and is qualified in its entirety by,
the respective historical financial statements and notes thereto of the Company
incorporated by reference into this Prospectus.
Historical Dunwoody
Balance Pro Forma Total
Sheet Adjustments Pro Forma
------------------------------------------- ---------------------
ASSETS 7/25/97
Investment in Rental Property
Land $61,878,788 $ 3,648,000 $65,526,788
Building 310,333,437 11,552,000 321,885,437
Property Improvements 36,095,652 - 36,095,652
Furniture 7,915,483 - 7,915,483
------------------------------------------- ---------------------
416,223,360 15,200,000 431,423,360
Less accumulated depreciation (19,315,189) - (19,315,189)
------------------------------------------- ---------------------
396,908,171 15,200,000 412,108,171
Cash and cash equivalents 5,263,185 - 5,263,185
Prepaid expenses 602,766 - 602,766
Other assets 6,691,358 - 6,691,358
------------------------------------------- ---------------------
12,557,309 - 12,557,309
------------------------------------------- ---------------------
$409,465,480 $15,200,000 $424,665,480
=========================================== =====================
LIABILITIES and SHAREHOLDERS' EQUITY
Liabilities
Notes payable $87,650,147 4,639,688 (A) $92,289,835
Accounts payable-related party 7,558,246 - 7,558,246
Accounts payable 1,172,932 - 1,172,932
Accrued expenses 2,793,708 - 2,793,708
Rents received in advance 209,189 - 209,189
Tenant security deposits 1,870,562 - 1,870,562
------------------------------------------- ---------------------
101,254,784 4,639,688 105,894,472
Shareholders' equity
Common stock 335,509,830 10,560,312 (A) 346,070,142
Deferred Compensation (44,000) - (44,000)
Distributions in excess of net income (27,255,134) - (27,255,134)
------------------------------------------- ---------------------
308,210,696 10,560,312 318,771,008
------------------------------------------- ---------------------
$409,465,480 $15,200,000 $424,665,480
=========================================== =====================
(A) Reflects a portion of the acquisition using proceeds of the common stock
offering in April, 1997, yielding net proceeds of $9.5875 per share to the
Company. The remaining portion of the purchase price was assumed to be funded
by the Company's line of credit.
Pro Forma Statement of Operations for the year ended December 31, 1996
(unaudited)
The Unaudited Pro Forma Statement of Operations for the year ended December 31,
1996 is presented as if 20 of the 21 Property acquisitions during 1996 and 7 of
the 9 Property acquisitions during 1997 occurred on January 1, 1996. The
Unaudited Pro Forma Statement of Operations assumes the Company qualifying as a
REIT, distributing at least 95% of its taxable income, and, therefore, incurred
no federal income tax liability for the period presented. In the opinion of
management all adjustments necessary to reflect the effects of these
transactions have been made.
The Unaudited Pro Forma Statement of Operations is presented for comparative
purposes only and is not necessarily indicative of what the actual results of
the Company would have been for the period ended December 31, 1996 if the
acquisitions had occurred at the beginning of the period presented, nor does it
purport to be indicative of the results of operations in future periods. The
Unaudited Pro Forma Statement of Operations should be read in conjunction with,
and is qualified in its entirety by, the respective historical financial
statements and notes thereto of the Company incorporated by reference into this
Prospectus.
Historical Pro Forma Westchase
Statement of 1996 Pro Forma Before 1997 Pro Forma
Operations Acquisitions Adjustments Acquisitions Adjustments
------------------------------------------------ -----------------------------
Date of Acquisitions - - 1/15/97
Revenues from rental properties $40,352,955 $11,707,374 - $52,060,329 $1,999,870
Rental expenses:
Utilities 3,870,541 816,694 - 4,687,235 144,841
Repairs and maintenance 4,203,180 1,883,845 - 6,087,025 309,732
Taxes and insurance 3,275,422 947,968 - 4,223,390 192,289
Property management fee 1,243,215 - 603,961 (A) 1,847,176 -
Property management 741,257 - - 741,257 -
Advertising 1,126,295 306,249 - 1,432,544 49,665
General and administrative 1,495,528 - 97,860 (B) 1,593,388 -
Amortization and other depreciation 47,133 - - 47,133 -
Depreciation of rental property 8,068,063 - 2,513,278 (C) 10,581,341 -
Other operating expenses 2,638,183 - - 2,638,183 -
Other 151,537 927,643 - 1,079,180 148,994
Management contract termination 16,526,012 - - 16,526,012 -
------------------------------------------------ -----------------------------
43,386,366 4,882,399 3,215,099 51,483,864 845,521
Income before interest income (expense) (3,033,411) 6,824,975 (3,215,099) 576,465 1,154,349
Interest income 287,344 - - 287,344 -
Interest expense (1,423,782) - (2,991,838) (D) (4,415,620) -
------------------------------------------------ -----------------------------
Net income ($4,169,849) $6,824,975 ($6,206,937) ($3,551,811) $1,154,349
Net income per share ($0.21) ($0.14)
------- -------
Wgt. avg. number of shares outstanding 20,210,432 4,693,325 (E) 24,903,757
------------ ========== ===========
Paces Arbor Paces Forest Ashley Run Carlyle
Pro Forma Pro Forma Pro Forma Pro Forma
Adjustments Adjustments Adjustments Adjustments
--------------------------------------------------------
Date of Acquisitions 3/1/97 3/1/97 4/30/97 4/30/97
Revenues from rental properties $773,960 $928,214 $2,750,461 $1,913,527
Rental expenses:
Utilities 23,325 28,891 174,135 191,838
Repairs and maintenance 116,391 114,620 357,004 277,214
Taxes and insurance 48,563 54,649 207,720 140,909
Property management fee - - - -
Property management - - - -
Advertising 18,921 19,788 52,118 37,029
General and administrative - - - -
Amortization and other depreciation - - - -
Depreciation of rental property - - - -
Other operating expenses - - - -
Other 56,764 59,364 156,355 111,086
Management contract termination - - - -
--------------------------------------------------------
263,964 277,312 947,332 758,076
Income before interest income (expense) 509,996 650,902 1,803,129 1,155,451
Interest income - - - -
Interest expense - - - -
--------------------------------------------------------
Net income $509,996 $650,902 $1,803,129 $1,155,451
Net income per share
Wgt. avg. number of shares outstanding
Summit Dunwoody
Pro Forma Pro Forma Pro Forma Total
Adjustments Adjustments Adjustments Pro Forma
-------------------------------------- -----------
Date of Acquisitions 5/13/97 7/25/97 -
Revenues from rental properties 1,429,893 2,463,823 - $64,320,077
Rental expenses:
Utilities 56,563 193,261 - 5,500,089
Repairs and maintenance 201,408 376,874 - 7,840,268
Taxes and insurance 93,299 248,171 - 5,208,990
Property management fee - - $443,158 (A) 2,290,334
Property management - 741,257
Advertising 48,712 51,152 - 1,709,929
General and administrative - 1,593,388
Amortization and other depreciation - 47,133
Depreciation of rental property 2,191,634 (C) 12,772,975
Other operating expenses - 2,638,183
Other 146,137 153,455 - 1,911,335
Management contract termination - - - 16,526,012
-------------------------------------- -----------
546,119 1,022,913 2,634,792 58,779,893
Income before interest income (expense) 883,774 1,440,910 (2,634,792) 5,540,184
Interest income - - - 287,344
Interest expense - - (1,992,860) (D) (6,408,480)
-------------------------------------- -----------
Net income $883,774 $1,440,910 ($4,627,652) ($580,952)
Net income per share ($0.02)
-------
Wgt. avg. number of shares outstanding 5,175,000 (F) 30,078,757
============ -----------
(A) Represents the property management fee of 5% of rental income and the
processing costs equal to $2.50 per apartment unit per month charged by the
external management company for the period of time not owned by the Company
until the management contract was terminated in September, 1996.
(B) Represents the advisory fee of .25% of accumulated capital contributions
under the "best efforts" offering for the period of time not owned by the
Company until the time the advisor contract was terminated in September, 1996.
(C) Represents the depreciation expense of the properties acquired based on the
purchase price, excluding amounts allocated to land, of the properties for the
period of time not owned by the Company. The weighted average life of the
property depreciated was 27.5 years.
(D) Represents the interest expense for the properties for the period in which
the properties were not owned for the year ended December 31, 1996, interest was
computed based on interest rates under the Company's line of credit in effect at
the time of the respective acquisition.
(E) Represents additional common shares used to purchase 16 of the 21 properties
purchased during 1996 using the proceeds of the "best efforts" common stock
offering with net proceeds of $9.79 per share to the Company.
(F) Represents additional common shares used to purchase Ashley Run, Carlyle,
Summit and a portion of Dunwoody based upon purchase prices of $18,000,000,
$11,580,000, $9,475,000 and $10,560,312 (total purchase price of $15,200,000),
respectively and common shares issued in April, 1997 with net proceeds of
$9.5875 per share to the Company.
Pro Forma Statement of Operations for the year ended December 31, 1996
(unaudited)
The following schedule provides detail of 1996 acquisitions by property included
in the Pro Forma Statement of Operations for the year ended December 31, 1996.
Meadows West Eagle Ashley Park Arbor Trace Longmeadow
Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma
Adjustments Adjustments Adjustments Adjustments Adjustments
----------- ----------- ----------- ----------- -----------
Date of Acquisition 1/31/96 3/31/96 3/1/96 3/1/96 4/1/96
Property operations
Revenues from rental properties $ 90,006 $127,302 $284,403 $138,795 $186,114
Rental expenses:
Utilities 7,903 7,327 16,769 14,849 9,440
Repairs and maintenance 14,553 22,819 39,027 19,702 25,542
Taxes and insurance 5,273 9,776 27,496 10,819 14,262
Property management -- -- -- -- --
Advertising 1,484 3,066 3,213 3,215 5,455
General and administrative -- -- -- -- --
Amortization -- -- -- -- --
Depreciation of rental property -- -- -- -- --
Other 4,452 9,198 18,542 9,645 16,367
----- ----- ------ ----- ------
33,665 52,186 105,047 58,230 71,066
------ ------ ------- ------ ------
Income before interest income (expense) 56,341 75,116 179,356 80,565 115,048
Interest income -- -- -- -- --
Interest expense -- -- -- -- --
------ ------ ------- ------ ------
Net Income $ 56,341 $ 75,116 $179,356 $ 80,565 $115,048
-------- -------- -------- -------- --------
Trophy Chase Beacon Hill Summerwalk The Landing
Pro Forma Pro Forma Pro Forma Pro Forma
Adjustments Adjustments Adjustments Adjustments
----------- ----------- ----------- -----------
Date of Acquisition 4/1/96 5/1/96 5/1/96 5/1/96
Property operations
Revenues from rental properties $217,183 $684,622 $297,115 $418,247
Rental expenses:
Utilities 21,899 48,373 23,038 30,473
Repairs and maintenance 39,180 68,173 59,973 68,918
Taxes and insurance 13,830 58,443 15,663 38,620
Property management -- -- -- --
Advertising 5,819 12,974 7,559 10,041
General and administrative -- -- -- --
Amortization -- -- -- --
Depreciation of rental property -- -- -- --
Other 17,458 38,922 22,676 30,122
------ ------ ------ ------
98,186 226,885 128,909 178,174
------ ------- ------- -------
Income before interest income (expense) 118,997 457,737 168,206 240,073
Interest income -- -- -- --
Interest expense -- -- -- --
------ ------- ------- -------
Net Income $118,997 $457,737 $168,206 $240,073
-------- -------- -------- --------
Meadowcreek Trolley East Savannah Paces Glen Signature
Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma
Adjustments Adjustments Adjustments Adjustments Adjustments
----------- ----------- ----------- ----------- -----------
Date of Acquisition 5/31/96 6/26/96 7/1/96 7/19/96 8/1/96
Property operations
Revenues from rental properties $ 671,043 $ 345,237 $1,038,285 $ 628,639 $ 509,713
Rental expenses: --
Utilities 32,330 62,247 102,411 39,060 25,951
Repairs and maintenance 90,083 97,819 221,613 92,090 122,995
Taxes and insurance 50,931 41,086 49,192 46,834 47,162
Property management -- -- -- -- --
Advertising 12,198 10,293 23,992 14,827 9,500
General and administrative -- -- -- -- --
Amortization -- -- -- -- --
Depreciation of rental property -- -- -- -- --
Other 36,593 30,878 71,976 44,481 28,499
------ ------ ------ ------ ------
222,135 242,323 469,184 237,292 234,107
------- ------- ------- ------- -------
Income before interest income (expense) 448,908 102,914 569,101 391,347 275,606
Interest income -- -- -- -- --
Interest expense -- -- -- -- --
------- ------- ------- ------- -------
Net Income $ 448,908 $ 102,914 $ 569,101 $ 391,347 $ 275,606
---------- ---------- ---------- ---------- ----------
Hampton Glen Sterling Parkside Greenbrier
Pro Forma Pro Forma Pro Forma Pro Forma
Adjustments Adjustments Adjustments Adjustments
----------- ----------- ----------- -----------
Date of Acquisition 8/1/96 9/1/96 9/30/96 10/1/96
Property operations
Revenues from rental properties $ 970,246 $1,077,164 $ 653,152 $1,250,682
Rental expenses:
Utilities 56,883 45,391 34,669 70,957
Repairs and maintenance 130,430 155,415 94,280 205,550
Taxes and insurance 62,436 81,204 66,873 98,321
Property management -- -- -- --
Advertising 24,998 21,877 64,687 24,988
General and administrative -- -- -- --
Amortization -- -- -- --
Depreciation of rental property -- -- -- --
Other 74,993 65,629 194,059 74,964
------ ------ ------- ------
349,740 369,516 454,568 474,780
------- ------- ------- -------
Income before interest income (expense) 620,506 707,648 198,584 775,902
Interest income -- -- -- --
Interest expense -- -- -- --
------- ------- ------- -------
Net Income $ 620,506 $ 707,648 $ 198,584 $ 775,902
Deerfield Franklin 1996
Pro Forma Pro Forma Acquisition
Adjustments Adjustments Adjustments
----------- ----------- -----------
Date of Acquisition 11/20/96 12/1/96
Property operations
Revenues from rental properties $ 1,489,997 $ 629,429 $11,707,374
Rental expenses:
Utilities 62,040 104,684 816,694
Repairs and maintenance 190,567 125,116 1,883,845
Taxes and insurance 155,082 54,665 947,968
Property management -- -- --
Advertising 25,476 20,587 306,249
General and administrative -- -- --
Amortization -- -- --
Depreciation of rental property -- -- --
Other 76,430 61,759 927,643
------ ------ -------
509,595 366,811 4,882,399
------- ------- ---------
Income before interest income (expense) 980,402 262,618 6,824,975
Interest income -- -- --
Interest expense -- -- --
------- ------- ---------
Net Income $ 980,402 $ 262,618 $ 6,824,975
----------- ----------- -----------
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this Report on Form 8-K/A to be signed on its behalf
by the undersigned hereunto duly authorized.
Cornerstone Realty Income Trust, Inc.
Date: October __, 1997 By:/s/ Stanley J. Olander, Jr.
---------------------------
Stanley J. Olander, Jr.
Chief Financial Officer of
Cornerstone Realty Income
Trust, Inc.
EXHIBIT INDEX
Cornerstone Realty Income Trust, Inc.
Form 8-K/A to Form 8-K dated May 14, 1997
Exhibit Number Exhibit Page Number
23.1 Consent of Independent Auditors
(Dunwoody Springs Apartments)