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: August 6, 1997
APPLE RESIDENTIAL INCOME TRUST, INC.
(Exact name of registrant as specified in its charter)
VIRGINIA 333-10635 54-1816010
(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
<PAGE>
APPLE RESIDENTIAL INCOME TRUST, INC.
FORM 8-K/A
Index
Page No.
--------
Item 7. Financial Statements, Pro Forma Financial
Information and Exhibits
a. Independent Auditors' Report
(Chaparosa Apartments)
Historical Statement of Income
and Direct Operating Expenses
(Chaparosa Apartments)
Note to Historical Statement of Income
and Direct Operating Expenses
(Chaparosa Apartments)
b. Independent Auditors' Report
(Riverhill Apartments)
Historical Statement of Income
and Direct Operating Expenses
(Riverhill Apartments)
Note to Historical Statement of
Income and Direct Operating Expenses
(Riverhill 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)
-2-
<PAGE>
d. Exhibit
23.1 Consent of Independent Auditors
(Chaparosa Apartments)
23.2 Consent of Independent Auditors
(Riverhill Apartments)
-3-
<PAGE>
The Company hereby amends Items 7.a., 7.b. and 7.c. of its Current
Report on Form 8-K dated August 6, 1997 as follows:
-4-
<PAGE>
ITEM 7.a.
<PAGE>
[L.P. MARTIN & COMPANY LETTERHEAD]
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
Apple Residential 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 Chaparosa Apartments located in Irving, Texas for the
twelve month period ended June 30, 1997. This statement is the responsibility of
the management of Chaparosa 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 Apple Residential 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 Chaparosa
Apartments (as defined above) for the twelve month period ended June 30, 1997,
in conformity with generally accepted accounting principles.
Richmond, Virginia
September 24, 1997
<PAGE>
CHAPAROSA APARTMENTS
STATEMENT OF INCOME AND DIRECT OPERATING EXPENSES EXCLUSIVE OF
ITEMS NOT COMPARABLE TO THE PROPOSED FUTURE
OPERATIONS OF THE PROPERTY
TWELVE MONTHS ENDED JUNE 30, 1997
INCOME
Rental and Other Income $ 1,374,365
-----------
DIRECT OPERATING EXPENSES
Administrative and Other 187,182
Insurance 18,284
Repairs and Maintenance 226,512
Taxes, Property 148,416
Utilities 78,209
-----------
TOTAL DIRECT OPERATING EXPENSES 658,603
-----------
Operating income exclusive of items not
comparable to the proposed future operations
of the property $ 715,762
===========
See accompanying notes to the financial statement.
<PAGE>
CHAPAROSA 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
Chaparosa Apartments is a 170 unit garden and townhouse style apartment complex
located on 7.48 acres in Irving, Texas. The assets comprising the property were
owned by Hutton/Con Am Realty Pension Investors, an entity unaffiliated with
Apple Residential Income Trust, Inc. during the financial statement period.
Apple Residential Income Trust, Inc. purchased the property in August, 1997.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 Regulation 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 property depreciation and management fees.
Estimates - The preparation of financial statements in conformity with generally
accepted accounting principles requires management to 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.
<PAGE>
ITEM 7.b.
<PAGE>
[L.P. MARTIN & COMPANY LETTERHEAD]
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
Apple Residential 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 Riverhill Apartments located in Irving, Texas for the
twelve month period ended June 30, 1997. This statement is the responsibility of
the management of Riverhill 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 Apple Residential 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 Riverhill
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 24, 1997
<PAGE>
RIVERHILL APARTMENTS
STATEMENT OF INCOME AND DIRECT OPERATING EXPENSES EXCLUSIVE OF
ITEMS NOT COMPARABLE TO THE PROPOSED FUTURE
OPERATIONS OF THE PROPERTY
TWELVE MONTHS ENDED JUNE 30, 1997
INCOME
Rental and Other Income $ 1,529,649
-----------
DIRECT OPERATING EXPENSES
Administrative and Other 210,774
Insurance 20,274
Repairs and Maintenance 254,466
Taxes, Property 192,345
Utilities 115,741
-----------
TOTAL DIRECT OPERATING EXPENSES 793,600
-----------
Operating income exclusive of items not
comparable to the proposed future operations
of the property $ 736,049
===========
See accompanying notes to the financial statement.
<PAGE>
RIVERHILL 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
Riverhill Apartments is a 192 unit garden and townhouse style apartment complex
located on 9.33 acres in Irving, Texas. The assets comprising the property were
owned by Riverhill Apartments Limited Partnership, an entity unaffiliated with
Apple Residential Income Trust, Inc. during the financial statement period.
Apple Residential Income Trust, Inc. purchased the property in August, 1997.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 Regulation 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 property depreciation and management fees.
Estimates - The preparation of financial statements in conformity with generally
accepted accounting principles requires management to 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.
<PAGE>
ITEM 7.c.
<PAGE>
Pro Forma Statement of Operations for the six months ended June 30, 1997
(unaudited)
The accompanying Unaudited Pro Forma Statement of Operations for the six months
ended June 30, 1997 is presented as if (a) the Company had acquired the
properties shown below on January 1, 1997; (b) the Company had qualified as a
REIT, distributed at least 95% of its taxable income and, therefore, incurred no
federal income tax liability for the period presented; and (c) the Company had
used proceeds from its best efforts offering to acquire the properties. 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 six months ended June 30, 1997 if the
acquisitions and Offering 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.
<TABLE>
<CAPTION>
Historical Brookfield Eagle Crest Tahoe Mill Crossing Polo Run
Statement of Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma
Operations Adjustments Adjustments Adjustments Adjustments Adjustments
---------------------------------------------------------------------------------------------
<S> <C>
Date of Acquisitions - 1/31/97 1/31/97 1/31/97 2/28/97 03/31/97
Rental income $3,982,478 $99,879 $266,385 $100,023 $151,389 $326,137
Expenses
Utilities 410,852 7,722 25,425 12,431 24,712 32,231
Repairs and maintenance 264,296 14,519 31,593 29,313 36,083 64,401
Taxes and insurance 578,955 12,720 36,546 12,099 19,230 40,508
Property management 196,453 - - - - -
Advertising 106,003 2,547 4,429 2,475 4,272 6,338
General and administrative 199,317 - - - - -
Depreciation of real estate 443,341 - - - - -
Amortization 16,960 - - - - -
Other operating expenses 323,782 7,642 13,288 7,424 12,815 19,013
---------------------------------------------------------------------------------------------
2,539,959 45,150 111,281 63,742 97,112 162,491
Income before interest income 1,442,519 54,729 155,104 36,281 54,277 163,646
Interest income 88,541 - - - - -
Interest expense (144,336) - - - - -
---------------------------------------------------------------------------------------------
Net income $1,386,724 $54,729 $155,104 $36,281 $54,277 $163,646
=============================================================================================
Net income per share $0.31
==========
Weighted average number of shares
outstanding 4,430,927
==========
</TABLE>
<TABLE>
<CAPTION>
Wildwood Toscana The Arbors Paces Cove Chaparosa Riverhill
Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma
Adjustments Adjustments Adjustments Adjustments Adjustments Adjustments
--------------------------------------------------------------------------------------------
<S> <C>
Date of Acquisitions 03/31/97 03/31/97 4/25/97 6/30/97 8/6/97 8/6/97
Rental income $202,389 $270,812 $460,338 $916,348 $687,183 $764,825
Expenses
Utilities 19,734 21,222 28,394 59,454 39,105 57,871
Repairs and maintenance 30,868 29,279 36,526 136,551 113,256 127,233
Taxes and insurance 25,216 35,674 60,729 128,306 83,350 106,310
Property management - - - - - -
Advertising 6,877 8,055 9,303 29,629 23,398 26,347
General and administrative - - - - - -
Depreciation of real estate - - - - - -
Amortization - - - - - -
Other operating expenses 20,632 24,166 27,909 88,887 70,193 79,040
--------------------------------------------------------------------------------------------
103,327 118,396 162,861 442,827 329,302 396,801
Income before interest income 99,062 152,416 297,477 473,521 357,881 368,024
Interest income - - - - - -
Interest expense - - - - - -
--------------------------------------------------------------------------------------------
Net income $99,062 $152,416 $297,477 $473,521 $357,881 $368,024
============================================================================================
Net income per share
Weighted average number of shares
outstanding
</TABLE>
1997
Pro Forma Total
Adjustments Pro Forma
------------ ----------
Date of Acquisitions
Rental income - $8,228,186
Expenses
Utilities - 739,153
Repairs and maintenance - 913,918
Taxes and insurance - 1,139,643
Property management 232,065 (A) 428,518
Advertising - 229,673
General and administrative 53,375 (B) 252,692
Depreciation of real estate 628,871 (C) 1,072,212
Amortization - 16,960
Other operating expenses - 694,791
----------- ----------
(914,311) 5,487,560
Income before interest income (914,311) 2,740,626
Interest income - 88,541
Interest expense - (144,336)
----------- ----------
Net income ($914,311) $2,684,831
=========== ==========
Net income per share $0.29
==========
Weighted average number of shares
outstanding 4,953,908 (D) 9,384,835
========= ==========
(A) Represents the property management fees of 5% of rental income and
processing costs equal to $2.50 per apartment per month charged by the external
management company for the period of time not owned by the company.
(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.
(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 additional common shares assuming the properties were acquired on
January 1, 1997 with the best efforts offering of $9 per share for the first $15
million and $10 per share above $15 million.
<PAGE>
Pro Forma Balance Sheet as of June 30, 1997 (unaudited)
The accompanying Unaudited Pro Forma Balance Sheet as of June 30, 1997 is
presented as if the Company had owned the properties included in the table below
as of June 30, 1997. In the opinion of management, all adjustments necessary to
reflect the effects of the Offering have been made.
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.
The Pro Forma columns assumes the Company used the proceeds from its best
efforts offerings to acquire the properties.
<TABLE>
<CAPTION>
Historical Chaparosa Riverhill
Balance Pro Forma Pro Forma Total
Sheet Adjustments Adjustments Pro Forma
------------------------------------------------------
<S> <C>
ASSETS
Investment in rental property
Land $ 10,338,514 $ 1,425,960 $1,780,920 $13,545,394
Building 56,431,640 4,515,540 5,639,580 66,586,760
Property improvements 1,167,914 - - 1,167,914
Furniture and fixtures 87,385 - - 87,385
-------------------------------------------------------
68,025,453 5,941,500 7,420,500 81,387,453
Less accumulated depreciation (443,341) - - (443,341)
-------------------------------------------------------
67,582,112 5,941,500 7,420,500 80,944,112
Cash and cash equivalents 932,613 - - 932,613
Prepaid expenses 144,540 - - 144,540
Other assets 201,521 - - 201,521
-------------------------------------------------------
Total Assets $68,860,786 $5,941,500 $7,420,500 $82,222,786
=======================================================
LIABILITIES
Notes payable $10,000,000 - - $10,000,000
Accounts payable 276,967 - - 276,967
Accrued expenses 819,170 - - 819,170
Rents received in advance 3,772 - - 3,772
Tenant security deposits 334,029 - - 334,029
-------------------------------------------------------
11,433,938 - - 11,433,938
SHAREHOLDERS' EQUITY
Common stock, no par value 56,720,606 5,941,500 7,420,500 70,082,606
Class B Convertible Stock, no par value 20,000 - - 20,000
Receivable from principal shareholder (20,000) - - (20,000)
Net income 706,242 - - 706,242
-------------------------------------------------------
57,426,848 5,941,500 7,420,500 70,788,848
Total Liabilities and Shareholders' Equity $68,860,786 $5,941,500 $7,420,500 $82,222,786
=======================================================
</TABLE>
Notes to Pro Forma Balance Sheet
Pro Forma adjustments represents the purchase price of the related property,
including the 2% acquisition fee to Cornerstone Realty Income Trust, Inc.
allocated between land and building. Adjustments to common stock reflect the net
proceeds from sales of common stock from the Company's continuous offering.
<PAGE>
Pro Forma Statement of Operations for the twelve months ended December 31, 1996
(unaudited)
The accompanying Unaudited Pro Forma Statement of Operations for the year ended
December 31, 1996 is presented as if (a) the Company had acquired the
properties shown below on January 1, 1996; (b) the Company had qualified as a
REIT , distributed at least 95% of its taxable income and, therefore, incurred
no federal income tax liability for the period presented; and (c) the Company
had used proceeds from its best efforts offering to acquire the properties. The
Company had no operations during the period ending December 31, 1996.
Accordingly, the Company had no revenue or operating profits or loss. 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 year ended December 31, 1996 if the
acquisitions and Offering 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.
<TABLE>
<CAPTION>
Historical Brookfield Eagle Crest Tahoe Mill Crossing Polo Run
Statement of Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma
Operations Adjustments Adjustments Adjustments Adjustments Adjustments
---------------------------------------------------------------------------------------------
<S> <C>
Date of Acquisitions - 1/31/97 1/31/97 1/31/97 2/28/97 03/31/97
Rental income - $1,198,543 $3,196,618 $1,200,270 $908,336 $1,304,547
Expenses
Utilities - 92,664 305,101 149,166 148,270 128,924
Repairs and maintenance - 174,233 379,120 351,750 216,500 257,602
Taxes and insurance - 152,636 438,546 145,184 115,377 162,030
Property management fee - - - - - -
Advertising - 30,567 53,153 29,695 25,631 25,350
Other operating expenses - - - - - -
General and administrative - - - - - -
- - - - - -
Depreciation of real estate - - - - - -
Amortization - - - - - -
Other - 91,702 159,460 89,086 76,891 76,050
---------------------------------------------------------------------------------------------
541,802 1,335,380 764,881 582,669 649,956
Income before interest income - 656,741 1,861,238 435,389 325,667 654,591
Interest income - - - - - -
---------------------------------------------------------------------------------------------
Net income - $656,741 $1,861,238 $435,389 $325,667 $654,591
=============================================================================================
Net income per share -
========
Weighted average number of shares
outstanding -
========
</TABLE>
<TABLE>
<CAPTION>
Wildwood Toscana The Arbors Paces Cove Chaparosa Riverhill
Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma
Adjustments Adjustments Adjustments Adjustments Adjustments Adjustments
------------------------------------------------------------------------------------
<S> <C>
Date of Acquisitions 03/31/97 03/31/97 4/25/97 6/30/97 8/6/97 8/6/97
Rental income $809,555 $1,083,249 $1,381,014 $1,832,695 $1,374,365 $1,529,649
Expenses
Utilities 78,937 84,886 85,182 118,907 78,209 115,741
Repairs and maintenance 123,470 117,117 109,577 273,102 226,512 254,466
Taxes and insurance 100,862 142,695 182,186 256,612 166,700 212,619
Property management fee - - - - - -
Advertising 27,509 32,221 27,909 59,257 46,796 52,694
Other operating expenses - - - - - -
General and administrative - - - - - -
- - - - - -
Depreciation of real estate - - - - - -
Amortization - - - - - -
Other 82,526 96,663 83,727 177,773 140,387 158,081
------------------------------------------------------------------------------------
413,304 473,582 488,581 885,651 658,604 793,601
Income before interest income 396,251 609,667 892,433 947,044 715,761 736,048
Interest income - - - - - -
------------------------------------------------------------------------------------
Net income $396,251 $609,667 $892,433 $947,044 $715,761 $736,048
====================================================================================
Net income per share
Weighted average number of shares
outstanding
</TABLE>
Pro Forma Total
Adjustments Pro Forma
------------ ----------
Date of Acquisitions
Rental income - $15,818,841
Expenses
Utilities - 1,385,987
Repairs and maintenance - 2,483,449
Taxes and insurance - 2,075,447
Property management fee 868,222 (A) 868,222
Advertising - 410,782
Other operating expenses - -
General and administrative 199,273 (B) 509,273
310,000 (D) -
Depreciation of real estate 2,367,872 (C) 2,367,872
Amortization - -
Other - 1,232,346
------------ ----------
3,745,367 11,333,378
Income before interest income (3,745,367) 4,485,463
Interest income - -
------------ ----------
Net income ($3,745,367) $4,485,463
============ ==========
Net income per share $0.48
==========
Weighted average number of shares
outstanding 9,328,665 (E) 9,328,665
========= ==========
(A) Represents the property management fees of 5% of rental income and
processing costs equal to $2.50 per apartment per month charged by the external
management company for the period of time not owned by the company.
(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.
(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 expenses related to operations as a public REIT, which
consists of directors and officers insurance, investor relations, corporate
accounting, legal and director expenses.
(E) Represents additional common shares assuming the properties were acquired on
January 1, 1996 with the best efforts offering of $9 per share for the first $15
million and $10 per share above $15 million.
<PAGE>
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.
APPLE RESIDENTIAL INCOME TRUST, INC.
Date: October __, 1997 By:/s/ Glade M. Knight
-------------------
Glade M. Knight
President of
Apple Residential Realty Income
Trust, Inc.
-12-
<PAGE>
EXHIBIT INDEX
Apple Residential Income Trust, Inc.
Form 8-K/A to Form 8-K dated August 6, 1997
Exhibit Number Exhibit Page Number
- -------------- ------- -----------
23.1 Consent of Independent Auditors
(Chaparosa Apartments)
23.2 Consent of Independent Auditors
(Riverhill Apartments)
Exhibit 23.1
[L.P. MARTIN & COMPANY LETTERHEAD]
A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
4132 INNSLAKE DRIVE
GLEN ALLEN, VIRGINIA 23060
PHONE: (804) 346-2626
FAX: (804) 346-9311
Consent of Independent Auditors'
The Board of Directors
Apple Residential Income Trust, Inc.
Richmond, Virginia
We consent to the use of our report dated September 24, 1997 with
respect to the statement of income and direct operating expenses exclusive of
items not comparable to the proposed future operations of the property Chaparosa
Apartments for the twelve month period ended June 30, 1997, for inclusion in a
form 8K filing with the Securities and Exchange Commission by Apple Residential
Income Trust, Inc.
/s/ L.P. Martin & Co., P.C.
Richmond, Virginia
October 1, 1997
Exhibit 23.2
[L.P. MARTIN & COMPANY LETTERHEAD]
A PROFESSIONAL CORPORATION
CERTIFIED PUBLIC ACCOUNTANTS
4132 INNSLAKE DRIVE
GLEN ALLEN, VIRGINIA 23060
PHONE: (804) 346-2626
FAX: (804) 346-9311
Consent of Independent Auditors'
The Board of Directors
Apple Residential Income Trust, Inc.
Richmond, Virginia
We consent to the use of our report dated September 24, 1997 with
respect to the statement of income and direct operating expenses exclusive of
items not comparable to the proposed future operations of the property Riverhill
Apartments for the twelve month period ended June 30, 1997, for inclusion in a
form 8K filing with the Securities and Exchange Commission by Apple Residential
Income Trust, Inc.
/s/ L.P. Martin & Co., P.C.
Richmond, Virginia
October 1, 1997
