UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1998
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 0-23983
APPLE RESIDENTIAL INCOME TRUST, INC.
(Exact name of registrant as specified in its charter)
VIRGINIA 54-1816010
(State or other jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
306 EAST MAIN STREET
RICHMOND, VIRGINIA 23219
(Address of principal executive offices) (Zip Code)
(804) 643-1761
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address, and former fiscal
year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
At May 1, 1998, there were outstanding 17,816,856 shares of common stock, no par
value, of the registrant.
<PAGE>
APPLE RESIDENTIAL INCOME TRUST, INC.
FORM 10-Q
INDEX
Page Number
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Consolidated Balance Sheets - 3
March 31, 1998
and December 31, 1997
Consolidated Statements of 4
Operations -
Three months ended March 31, 1998
and March 31, 1997
Consolidated Statement of 5
Shareholders' Equity-
Three months ended March 31, 1998
Consolidated Statements of Cash Flows - 6
Three months ended March 31, 1998
and March 31, 1997
Notes to Consolidated Financial 7
Statements
Item 2. Management's Discussion and Analysis 11
of Financial Condition and Results of
Operations
PART II. OTHER INFORMATION:
Item 1. Legal Proceedings (not applicable).
Item 2. Changes in Securities and Use of Proceeds 14
Item 3. Defaults Upon Senior Securities
(not applicable).
Item 4. Submission of Matters to a Vote of
Security Holders (not applicable).
Item 5. Other Information (not applicable)
Item 6. Exhibits and Reports on Form 8-K 15
<PAGE>
APPLE RESIDENTIAL INCOME TRUST, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
---------------------------------------------
<S><C>
ASSETS
Investment in Rental Property
Land $ 19,242,535 $ 15,396,823
Building and improvements 95,914,449 73,113,886
Furniture and fixtures 1,410,819 1,123,639
---------------------------------------------
116,567,803 89,634,348
Less accumulated depreciation (2,787,548) (1,898,003)
---------------------------------------------
113,780,255 87,736,345
---------------------------------------------
Cash and cash equivalents 36,601,110 24,162,572
Prepaid expenses 90,784 142,581
Other assets 774,271 444,022
---------------------------------------------
37,466,165 24,749,175
---------------------------------------------
Total Assets $151,246,420 $112,485,520
=============================================
LIABILITIES and SHAREHOLDERS' EQUITY
Liabilities
Accounts payable $ 355,938 $ 536,324
Accrued expenses 2,143,818 2,143,888
Rents received in advance 23,902 70,051
Tenant security deposits 492,175 394,702
---------------------------------------------
3,015,833 3,144,965
Shareholders' equity
Common stock, no par value, authorized 50,000,000
shares; issued and outstanding 16,708,817 shares
and 12,371,829 shares, respectively 148,058,824 109,090,459
Class B convertible stock, no par value,
authorized 200,000 shares;
issued and outstanding 200,000 shares 20,000 20,000
Receivable from officer-shareholder (20,000) (20,000)
Net income greater than distributions 171,763 250,096
---------------------------------------------
148,230,587 109,340,555
---------------------------------------------
Total Liabilities
and Shareholders' Equity $151,246,420 $112,485,520
===========================================
</TABLE>
See accompanying notes to financial statements
3
<PAGE>
APPLE RESIDENTIAL INCOME TRUST, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Three Months Ended
March 31, March 31,
1998 1997
-------------------------------------------------------
<S> <C>
REVENUE:
Rental income $ 4,928,751 $ 1,154,400
EXPENSES:
Property and maintenance 1,236,828 292,652
Taxes and insurance 738,151 106,098
Property management 257,038 60,663
General and administrative 162,873 73,335
Amortization 8,484 8,476
Depreciation of rental property 889,545 137,689
-------------------------------------------------------
Total expenses 3,292,919 678,913
-------------------------------------------------------
Income before interest income (expense) 1,635,832 475,487
Interest income 336,387 84,935
Interest expense (12,501) (4,167)
-------------------------------------------------------
Net income $ 1,959,718 $ 556,255
=======================================================
Basic and diluted earnings per common share $ 0.14 $ 0.16
=======================================================
Distributions per common share 0.20 -
=======================================================
</TABLE>
See accompanying notes to financial statements
4
<PAGE>
APPLE RESIDENTIAL INCOME TRUST, INC.
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (UNAUDITED)
<TABLE>
<CAPTION>
Common Stock
---------------------------------------------
Number
of Shares Amount
---------------------------------------------
<S> <C>
Balance at December 31, 1997 12,371,829 $ 109,090,459
Net proceeds from the sale of shares 4,212,296 37,846,237
Net income - -
Cash distributions declared to shareholders ($. 203 per share) - -
Shares issued through reinvestment of distributions 124,681 1,122,128
---------------------------------------------
Balance at March 31, 1998 16,708,806 $ 148,058,824
=============================================
</TABLE>
<TABLE>
<CAPTION>
Convertible Class B Stock
Number
of Shares Amount
--------------------------------------
<S> <C>
Balance at December 31, 1997 200,000 $ 20,000
Net proceeds from the sale of shares - -
Net income - -
Cash distributions declared to shareholders ($. 203 per share) - -
Shares issued through reinvestment of distributions - -
--------------------------------------
Balance at March 31, 1998 200,000 $ 20,000
======================================
</TABLE>
<TABLE>
<CAPTION>
Receivable Net Income Total
From Principal Greater Than Shareholders'
Shareholder Distributions Equity
------------------------------------------------------
<S> <C>
Balance at December 31, 1997 $ (20,000) $ 250,096 $ 109,340,555
Net proceeds from the sale of shares - - 37,846,237
Net income - 1,959,718 1,959,718
Cash distributions declared to shareholders ($. 203 per share) - (2,038,051) (2,038,051)
Shares issued through reinvestment of distributions - - 1,122,128
------------------------------------------------------
Balance at March 31, 1998 $ (20,000) 171,763 $ 148,230,587
======================================================
</TABLE>
See accompanying notes to financial statements.
5
APPLE RESIDENTIAL INCOME TRUST, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
Three Months Three Months
Ended Ended
1998 1997
---------------------------------------------------------
<S> <C>
Cash flow from operating activities:
Net income $1,959,718 $556,255
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation and amortization 898,029 146,165
Amortization of deferred financing costs 12,501 4,167
Changes in operating assets and liabilities:
Prepaid expenses 51,797 (132,486)
Other assets (351,234) (751,257)
Accounts payable (180,386) 508,843
Accrued expenses (69,296) 589,338
Rent received in advance (46,149) 19,241
Tenant security deposits (962) 599
---------------------------------------------------------
Net cash provided by operating activities 2,274,018 940,865
Cash flow from investing activities:
Acquisitions of rental property, net of liabilities assumed (25,160,351) (49,240,262)
Capital improvements (1,595,174) (210,600)
---------------------------------------------------------
Net cash used in investing activities (26,755,525) (49,450,862)
Cash flow from financing activities:
Proceeds from short-term borrowings - 10,000,000
Net proceeds from issuance of shares 38,958,096 39,893,637
Cash distributions paid to shareholders (2,038,051) -
---------------------------------------------------------
Net cash provided by financing activities 36,920,045 49,893,637
Increase in cash and cash equivalents 12,438,538 1,383,640
Cash and cash equivalents, beginning of year 24,162,572 100
---------------------------------------------------------
Cash and cash equivalents,
end of year $36,601,110 $1,383,740
=========================================================
</TABLE>
See accompanying notes to financial statements
6
APPLE RESIDENTIAL INCOME TRUST, INC
Notes to Consolidated Financial Statements (Unaudited)
March 31, 1998
(1) General Information and Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited financial statements have been prepared in
accordance with the instructions for Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information
required by generally accepted accounting principles. In the opinion of
management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included.
Operating results for the three months ended March 31, 1998 are not
necessarily indicative of the results that may be expected for the year
ended December 31, 1998. These financial statements should be read in
conjunction with the Company's December 31, 1997 Annual Report on Form
10-K.
All earnings per share amounts for all periods have been presented and
where appropriate, restated to conform to the Statement 128
requirements.
Certain previously reported amounts have been reclassified to conform
with the current financial statement presentation.
As of January 1, 1998, the Company adopted Statement 130, "Reporting
Comprehensive Income." Statement 130 establishes new rules for the
reporting and display of comprehensive income and its components;
however, the adoption of this Statement had no impact on the Company's
net income or shareholders' equity. The Company does not currently have
any items of comprehensive income requiring separate reporting and
disclosure.
(2) Investment in Rental Property
The Company purchased three properties located in the Dallas/ Fort
Worth area of Texas for $24,525,000. The following is a summary of
rental property acquired during the three months ended March 31, 1998:
Initial Date
Description Acquisition Cost Acquisition
----------- ---------------- -----------
Main Park $ 8,000,000 February, 1998
Timberglen 12,000,000 February, 1998
Copper Ridge 4,525,000 March, 1998
<PAGE>
(3) Notes Payable
During 1997, the Company entered into an agreement with a commercial
bank for an unsecured revolving line of credit not to exceed $20
million to facilitate the timely acquisition of properties. The line
of credit expired on March 31, 1998 and has not been amended to
extend the maturity date. Borrowings under the agreement were
evidenced by an unsecured promissory note and bore interest at
one-month LIBOR plus 200 basis points. As of March 31, 1998 there
were no outstanding borrowings under the line of credit.
(4) Related Parties
Prior to March 1, 1997, the Company had contracted with Apple
Residential Management Group, Inc. (the "Management Company") to
manage the acquired properties, Apple Residential Advisors, Inc. (the
"Advisor") to advise and provide the Company with day to day
management, and Apple Realty Group, Inc. to acquire and dispose of
real estate assets held by the Company. The Company paid the
Management Company a management fee equal to 5% of rental income plus
reimbursement of certain expenses in the amount of $52,375. The
Company paid the Advisor a fee equal to .25% of total contributions
received by the Company in the amount of $14,894. The Company paid
Apple Realty Group, Inc. a fee of 2% of the purchase price of the
acquired properties in the amount of $624,382.
Effective March 1, 1997, with the approval of the Company,
Cornerstone Realty Income Trust Inc. ("Cornerstone"), for which Glade
M. Knight (Chief Executive Officer and Chairman of the Board of the
Company) also serves as Chief Executive Officers and Chairman,
entered into subcontract agreements with the Management Company and
Advisor whereby Cornerstone will provide advisory and property
management services to the Company in exchange for fees and expense
reimbursement per the same terms described above. For the three
months ended March 31, 1998, the Company paid Cornerstone $351,534
under the agreements.
During 1997, with the consent of the Company, Cornerstone acquired
all the assets of Apple Realty Group, Inc. The sole material asset of
the company was the acquisition/disposition agreement with the
Company. Cornerstone paid $350,000 in cash and issued 150,000 common
shares (valued at $11 per common share for a total of $1,650,000) in
exchange for the assignment of the rights to the
acquisition/disposition agreement. Cornerstone is entitled, under the
terms of the acquisition/disposition agreement, to a real commission
equal to 2% of the gross purchase price of the Company's properties.
For the three months ended March 31, 1998, the Company paid
Cornerstone approximately $490,500 under the agreement.
During the first quarter of 1997, the Company granted Cornerstone a
continuing right to acquire up to 9.8% of the common shares of the
Company at the market price, net of selling commissions. In April
1997, Cornerstone purchased 417,778 common shares of the Company at
$9 per share for approximately $3.76 million. Cornerstone owns
approximately 2.5% of the total common shares of the Company
outstanding as of March 31, 1998. Cornerstone intends to make
periodic evaluations of the advisability of purchasing additional
common shares of the Company and may make such purchases, if such
purchases are deemed by the Cornerstone board of directors to be in
the best interests of Cornerstone and its shareholders.
<PAGE>
(5) Earnings Per Common Share
The following table sets forth the computation of basic and
diluted earnings per common share:
<TABLE>
<CAPTION>
Three Months Three Months
Ended Ended
3/31/98 3/31/97
------- -------
<S> <C>
Numerator:
Net income $ 1,959,718 $ 556,255
Numerator for basic and
diluted earnings 1,959,718 556,255
Denominator:
Denominator for basic
earnings per share-weighted-
average shares 13,882,117 3,403,759
Effect of dilutive securities:
Stock options - -
----------------------------------------------------------------
Denominator for diluted earnings
per share-adjusted weighted-
average shares and assumed
conversions 13,882,117 3,403,759
----------------------------------------------------------------
Basic and diluted earnings per
common share $ 0.14 $ 0.16
----------------------------------------------------------------
</TABLE>
(6) Subsequent Events
During April 1998, the Company distributed to its shareholders
approximately $2,753,213 (20.4 cents per share) of which
approximately $1,746,082 was reinvested in the purchase of additional
shares through the Additional Share Option. During April 1998, the
Company also closed the sale to investors of 933,431 shares at $10
per share representing net proceeds to the Company after payment of
brokerage fees of $8,400,876.
During May 1998, the Company purchased Bitter Creek Apartments, a
472-unit apartment community located in Grand Prairie, Texas for
$13,505,000.
(7) Acquisitions (unaudited)
The following unaudited pro forma information for the three months
ended March 31, 1998 and 1997 assumes the property acquisitions made
during 1998 and 1997 were made by the Company on January 1 of the
respective year and is presented as if (a) the Company had qualified
as a REIT, distributed at least 95% of its taxable income and,
therefore incurred no federal income tax expense during the period,
and (b) the Company had used proceeds from its best efforts offering
to acquire the properties. The pro forma information does not purport
to represent what the Company's results of operations would actually
have been if such transactions, in fact, had occurred on January 1,
1997, nor does it purport to represent the results of operations for
future periods.
Three Months Three Months
Ended Ended
3/31/98 3/31/97
------- -------
Rental Income $5,442,733 $5,432,343
Net Income $2,048,501 $1,761,932
Net Income Per Share $ .13 $ .13
The pro forma information reflects adjustments for the actual rental
income and rental expenses of the 3 acquisitions made in 1998 and the
12 acquisitions made in 1997 for the respective periods in 1998 and
1997 prior to their acquisition by the Company. Net income has been
adjusted as follows: (1) property management and advisory expenses
have been adjusted based on the Company's contractual arrangements of
5% of revenues from rental income plus reimbursement of certain
monthly expenses estimated to be $2.50 per unit; (2) advisory
expenses have been adjusted based on the Company's contractual
arrangement of .25% of annual gross proceeds of common stock raised;
and (3) depreciation has been adjusted based on the Company's
allocation of purchase price to buildings over an estimated useful
life of 27.5 years.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
This report contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1993, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended. Such
forward-looking statements include, without limitation, statements
concerning anticipated improvements in financial operations from
completed and planned property renovations. Such statements involve
known and unknown risks, uncertainties, and other factors which may
cause the actual results, performance, or achievements of the Company
to be materially different from the results of operations or plans
expressed or implied by such forward-looking statements. Such factors
include, among other things, unanticipated adverse business
developments affecting the Company or the properties, as the case may
be, adverse changes in the real estate markets and general and local
economies and business conditions. Although the Company believes that
the assumptions underlying the forward-looking statements contained
herein are reasonable, any of the assumptions could be inaccurate, and
therefore there can be no assurance that such statements included in
this quarterly report will prove to be accurate. In light of the
significant uncertainties inherent in the forward-looking statements
included herein, the inclusion of such information should not be
regarded as a representation by the Company or any other person that
the results or conditions described in such statements or the
objectives and plans of the Company will be achieved.
Results of Operations
Income and occupancy
The Company's property operations for three months ended March 31,1998
reflect the operations from the properties acquired before 1998 and
from the 3 properties acquired in 1998 from their respective
acquisition dates. The increase in rental income and operating expenses
from the first quarter 1997 to first quarter 1998 is primarily due to a
full quarter of operation of the 1997 acquisitions as well as the
incremental effect of the 1998 acquisitions.
Substantially all of the Company's income is from the rental operation
of apartment communities. Rental income for the first three months
increased to $4,928,751 in 1998 from $1,154,400 in 1997 due to the
factors stated above.
Overall economic occupancy for the Company's properties was 94% and 92%
at the three months ended March 31, 1998 and 1997. Overall, the average
rental rates for the portfolio increased 13% to $588 from $516 per
month for the three months ended March 31, 1998 and 1997, respectively.
The increase is primarily due to rental increases.
<PAGE>
The Company's other source of income is the investment of its cash and
cash reserves. Interest income for the three months ended March 31,
1998 and 1997 was $336,387 and $84,935, respectively. The increase
during the three months ended March 31, 1998 is due to the Company's
investment balance held pending acquisitions. It is anticipated the
interest income will decrease with future acquisitions.
Expenses
Total expenses for the first three months increased to $3,292,919 in
1998 from $678,913 in 1997. The increase is due largely to the increase
in the number of apartments. The operating expense ratio (the ratio of
rental expenses, excluding general and administrative, amortization and
depreciation expense, to rental income) was 45% and 40% for the three
months ended March 31, 1998 and 1997, respectively. The increase from
the first quarter of 1997 to the first quarter of 1998 is primarily due
to a full quarter of operation of the 1997 acquisitions.
General and administrative expenses totaled 3% of total rental income
for the three months ended March 31, 1998 and 6% for the same period in
1997. This percentage is expected to decrease as the Company's asset
base and rental income grow. These expenses represent the
administrative expenses of the Company as distinguished from the
operations of the Company's properties.
Depreciation expense for the three months has increased to $889,545 in
1998 from $137,689 in 1997. The increase is directly attributable to
the acquisition of additional apartment communities in 1998 and 1997.
<PAGE>
Liquidity and Capital Resources
There was a significant change in the Company's liquidity during the
three months ended March 31, 1998, as the Company continued to acquire
properties. During the three months ended March 31, 1998, the Company
closed the sale to investors of 4,336,988 shares representing gross
proceeds to the Company of $43,369,884 and net proceeds after payment
of brokerage fees and other offering-related costs of $38,973,479.
Using proceeds from the sale of common shares, the Company acquired 696
apartment units in three residential rental communities during first
quarter of 1998. The following is information on these three
acquisitions:
<TABLE>
<CAPTION>
Property Name Date Acquired Units Purchase Price Location
------------- ------------- ----- -------------- --------
<S> <C>
Main Park Apartments February 1998 192 $ 8,000,000 Duncanville, TX
Timberglen Apartments February 1998 304 12,000,000 Dallas, TX
Copper Ridge Apartments March 1998 200 4,525,000 Fort Worth, TX
</TABLE>
Notes payable
The Company generally seeks to hold all of its properties on an
unsecured basis, although it is not prohibited from incurring secured
debt . The Company's $20 million unsecured line of credit expired on
March 31,1998 and was not amended to extend the maturity date. As of
March 31, 1998, there was no outstanding balance on the unsecured line
of credit.
Cash and cash equivalents
Cash and cash equivalents totaled $36,601,110 at March 31, 1998. During
the first quarter in 1998, the Company distributed $2,038,051 to its
shareholders, of which $1,246,809 was reinvested in additional shares
through the Additional Share Option. The reinvested funds netted the
Company $1,122,128 after payment of brokerage fees. During this
quarter, the Company distributed $84,808 to Cornerstone on shares that
had been purchased by Cornerstone.
Capital requirements
The Company has an ongoing capital expenditure commitment to fund its
renovation program for recently acquired properties. In addition, the
Company is always assessing potential acquisitions and intends to
acquire additional properties during 1998. On May 8, 1998, the Company
purchased Bitter Creek Apartments , a 472-unit apartment community
located in Grand Prairie, Texas for $13,505,000. As of May 9, 1998, no
material definitive commitments existed for the purchase of additional
properties. The potential sources to fund the improvements and
acquisitions include additional equity, cash reserves, and debt
provided by its line of credit.
The Company capitalized $1.6 million of improvements to its various
properties during the first quarter of 1998. It is anticipated that
some $6 million in additional capital improvements will be completed
during the next year on the current portfolio, which are expected to be
funded through cash reserves and dividend reinvestment.
<PAGE>
The Company has short-term cash flow needs in order to conduct the
operation of its properties. The rental income generated from the
properties supplies sufficient cash to provide for the payment of these
operating expenses and distributions.
Capital resources are expected to grow with the future sale of its
shares and the cash flow from operations. Approximately 55% of all
first quarter 1998 distributions, $1,122,128, were reinvested in
additional common shares. In general, the Company's liquidity and
capital resources are expected to be adequate to meet its cash
requirements in 1998.
<PAGE>
Part II, Item 2. Changes in Securities and Use of Proceeds
The following table sets forth information concerning the Company's ongoing
offering of common shares (the "Offering") and the use of proceeds from the
Offering as of March 31, 1998:
<TABLE>
<CAPTION>
Common Shares Registered:
<S> <C>
1,666,666.67 Common Shares $ 9 per Common Shares $ 15,000,000
23,500,000.00 Common Shares $10 per Common Shares $235,000,000
-------------
Totals: 25,166,666.67 Common Shares
-------------
Common Shares Sold:
1,666,666.67 Common Shares $ 9 per Common Share $ 15,000,000
14,624,361.33 Common Shares $10 per Common Share $146,243,616
------------- -----------
Totals: 16,291,028.00 Common Shares $161,243,616
------------- -----------
Expenses of Issuance and Distribution of Common Shares
1. Underwriting discounts and commissions $ 16,124,362
2. Expenses of underwriters $ -
3. Direct or indirect payments to directors or officers
of the Company or their associates, to ten percent
shareholders, or to affiliates of the Company $ -
4. Fees and expenses of third parties $ 820,430
---------------
Total Expenses of Issuance and Distribution of
Common Shares $ 16,944,792
Net Proceeds to the Company $144,298,824
1. Purchase of real estate (including repayment of
indebtedness incurred to purchase real estate) $103,661,452
2. Interest on indebtedness $ 470,885
3. Working capital $ 36,409,371
4. Fees to the following (all affiliates of officers of
the Company):
a. Apple Residential Advisors, Inc. $ 14,894
b. Apple Realty Group, Inc. $ 624,382
c. Cornerstone Realty Income Trust, Inc. $ 3,117,840
5. Fees and expenses of third parties: $ -
a. Legal $ -
b. Accounting $ -
6. Other (specify ____________) $ -
------------
Total of Application of Net Proceeds to the
Company $144,298,824
</TABLE>
<PAGE>
Part II, Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits - Exhibit 27- Financial Data Schedule
(b) Reports on Form 8-K
The following table lists the reports on Form 8-K filed by the Company
during the quarter ended March 31, 1998, the items reported and the financial
statements included in such filings.
<TABLE>
<CAPTION>
Type and Date of Reports Items Reported Financial Statements Filed
- ------------------------ -------------- --------------------------
<S> <C>
Form 8-K dated 2 None
February 4, 1998
Form 8-K/A (date of 7 Historical Statement of
Original Report: Income and Direct Operating
November 24, 1997) Expenses of Copper Crossing
Apartments for the twelve
months ended October 31, 1997
Form 8-K dated 2 None
February 13, 1998
</TABLE>
<PAGE>
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 thereunto duly authorized.
Apple Residential Income Trust, Inc.
(Registrant)
DATE: 5-14-98 BY: /s/ Glade M. Knight
------------------ -------------------
Glade M. Knight
President
BY: /s/ Stanley J. Olander
----------------------
Stanley J. Olander
Treasurer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1998
<CASH> 36,601,110
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 116,567,803
<DEPRECIATION> 2,787,548
<TOTAL-ASSETS> 151,246,420
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 148,058,824
<OTHER-SE> 171,763
<TOTAL-LIABILITY-AND-EQUITY> 151,246,420
<SALES> 0
<TOTAL-REVENUES> 4,928,751
<CGS> 0
<TOTAL-COSTS> 3,292,919
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 12,501
<INCOME-PRETAX> 1,959,718
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,959,718
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,959,718
<EPS-PRIMARY> .14
<EPS-DILUTED> .14
</TABLE>
