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: November 17, 1998
APPLE RESIDENTIAL INCOME TRUST, INC.
(Exact name of registrant as specified in its charter)
VIRGINIA 0-23983 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
(Courts on Pear Ridge Apartments)
Historical Statement of Income
and Direct Operating Expenses
(Courts on Pear Ridge Apartments)
Note to Historical Statement of Income
and Direct Operating Expenses
(Courts on Pear Ridge Apartments)
b. Pro Forma Balance Sheet as of
September 30, 1998 (unaudited)
Pro Forma Statement of Operations for
the Nine Months ended September 30, 1998
(unaudited)
Pro Forma Statement of Operations
for the year ended December 31, 1997
(unaudited)
<PAGE>
c. Exhibit
23.1 Consent of Independent Auditors
(Courts on Pear Ridge Apartments)
<PAGE>
The Company hereby amends Items 7.a., 7.b., and 7.c. of its Current Report
on Form 8-K dated November 17, 1998 as follows:
<PAGE>
ITEM 7.a.
<PAGE>
[L.P. MARTIN & COMPANY LETTERHEAD]
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 The Courts on Pear Ridge Apartments located in Dallas, Texas for
the twelve month period ended October 31, 1998. This statement is the
responsibility of the management of The Courts on Pear Ridge 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 The Courts on
Pear Ridge Apartments (as defined above) for the twelve month period ended
October 31, 1998, in conformity with generally accepted accounting principles.
Richmond, Virginia
January 21, 1999 /s/ L.P. Martin & Co., P.C.
<PAGE>
THE COURTS ON PEAR RIDGE 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 OCTOBER 31, 1998
INCOME
Rental and Other Income $1,764,273
----------
DIRECT OPERATING EXPENSES
Administrative and Other 240,863
Insurance 21,870
Repairs and Maintenance 250,432
Taxes, Property 234,469
Utilities 102,273
----------
TOTAL DIRECT OPERATING EXPENSES 849,907
----------
Operating income exclusive of items not
comparable to the proposed future operations
of the property $ 914,366
==========
See accompanying notes to the financial statement.
<PAGE>
THE COURTS ON PEAR RIDGE 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 OCTOBER 31, 1998
NOTE 1 - ORGANIZATION
The Courts on Pear Ridge Apartments is a 242 unit garden and townhouse style
apartment complex located on 9.40 acres in Dallas, Texas. The assets comprising
the property were owned by PS II Real Estate Limited Partnership, an entity
unaffiliated with Apple Residential Income Trust, Inc., during the financial
statement period. Apple Residential Income Trust, Inc. purchased the property on
November 17, 1998.
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 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 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.
Advertising - Advertising costs are expensed in the period incurred.
<PAGE>
ITEM 7.b.
<PAGE>
PRO FORMA CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 30, 1998 (UNAUDITED)
The accompanying Unaudited Pro Forma Consolidated Balance Sheet as of September
30, 1998 is presented as if the Company had owned the properties included in the
table below as of September 30 1998. In the opinion of management all
adjustments necessary to reflect the effects of the Offering have been made.
The Unaudited Pro Forma Consolidated 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 September 30, 1998, nor does it
purport to represent the future financial position of the Company. This
Unaudited Pro Forma Consolidated Balance Sheet should be read in conjunction
with, and is qualified in its entirety by, the Company's respective historical
financial statements and notes thereto.
<TABLE>
<CAPTION>
Brandywine Burney Courts on
Historical Park Oaks Pear Ridge
Balance Pro Forma Pro Forma Pro Forma Total
Sheet Adjustments Adjustments Adjustments Pro Forma
------------------------------------------------------------------------------------
Date of acquisition 10/29/98 10/28/98 11/17/98
<S> <C> <C> <C> <C> <C>
ASSETS
Investment in rental property
Land $35,291,836 $1,982,880 $1,043,460 $2,346,000 $40,664,176
Building and improvements 169,230,344 6,279,120 8,442,540 9,384,000 193,336,004
Furniture and fixtures 2,139,825 - - - 2,139,825
------------------------------------------------------------------------------------
206,662,005 8,262,000 9,486,000 11,730,000 236,140,005
Less accumulated depreciation (5,578,003) - - - (5,578,003)
------------------------------------------------------------------------------------
201,084,002 8,262,000 9,486,000 11,730,000 230,562,002
Cash and cash equivalents 47,090,703 (8,262,000) (9,486,000) (11,730,000) 17,612,703
Prepaid expenses 142,156 - - - 142,156
Other assets 1,668,108 - - - 1,668,108
------------------------------------------------------------------------------------
48,900,967 (8,262,000) (9,486,000) (11,730,000) 19,422,967
------------------------------------------------------------------------------------
Total Assets $249,984,969 $- $- $- $249,984,969
====================================================================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Mortgage notes payables $25,323,184 - - - $25,323,184
Accounts payable 763,854 - - - 763,854
Accrued expenses 4,334,180 - - - 4,334,180
Rents received in advance 46,966 - - - 46,966
Tenant security deposits 838,286 - - - 838,286
------------------------------------------------------------------------------------
31,306,470 - - - 31,306,470
Shareholders' equity
Common stock 219,628,535 - - - 219,628,535
Class B convertible stock 20,000 - - - 20,000
Distributions greater than net income (970,036) - - - (970,036)
------------------------------------------------------------------------------------
218,678,499 - - - 218,678,499
------------------------------------------------------------------------------------
Total Liabilities and Shareholders' Equity
$249,984,969 $- $- $- $249,984,969
====================================================================================
</TABLE>
Notes to Pro Forma Balance Sheet
Pro Forma adjustments represent the purchase price of the related property ,
including the 2% acquisition fee to
Apple Residential Management Group, Inc. allocated between land and building.
Adjustments to cash reflect the use of cash on hand to purchase properties.
<PAGE>
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS FOR THE NINE MONTH PERIOD ENDED
SEPTEMBER 30, 1998 (UNAUDITED)
The Unaudited Pro Forma Consolidated Statement of Operations for the nine month
period ended September 30, 1998 is presented as if the 16 property
acquisitions during 1998 had occurred on January 1, 1998. The Unaudited Pro
Forma Consolidated Statement of Operations assumes the Company qualifying as a
REIT, distributing at least 95% of its taxable income, and, therefore, incurring
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 Consolidated 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 nine month period ended September
30, 1998 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 Consolidated Statement of Operations
should be read in conjunction with, and is qualified in its entirety by, the
Company's respective historical financial statements and notes thereto.
<TABLE>
<CAPTION>
Copper Bitter
Historical Main Park Timberglen Ridge Creek
Statement of Pro Forma Pro Forma Pro Forma Pro Forma
Operations Adjustments Adjustments Adjustments Adjustments
----------------------------------------------------------------------------------
Date of Acquisition - 2/4/98 2/13/98 3/31/98 5/8/98
Rental income $20,256,606 $ 122,458 $ 162,912 $ 228,612 $ 876,661
Rental expenses:
Property and maintenance 5,555,743 44,674 39,814 147,405 308,738
Taxes and insurance 2,832,675 18,797 21,513 29,927 98,600
Property management 1,109,495 - - - -
General and administrative 579,015 - - - -
Amortization 28,544 - - - -
Depreciation of rental property 3,680,000 - - - -
----------------------------------------------------------------------------------
Total expenses 13,785,472 63,471 61,327 177,332 407,338
Income before interest income (expense) 6,471,134 58,987 101,585 51,280 469,323
Interest income 1,188,355 - - - -
Interest expense (338,297) - - - -
---------------------------------------------------------------------------------
Net income $7,321,192 $58,987 $101,585 $51,280 $469,323
Basic and diluted earnings per common share $0.41
======
Wgt. avg. number of common shares outstanding 17,823,314
===========
<CAPTION>
Summer Park Hayden's Pace's Pepper
Tree Village Cottonwood Crossing Point Square
Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma
Adjustments Adjustments Adjustments Adjustments Adjustments Adjustments
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Date of Acquisition 6/1/98 7/1/98 7/9/98 7/24/98 7/17/98 7/17/98
Rental income $ 505,033 $ 641,049 $ 565,147 $ 536,970 $ 1,167,372 $ 534,027
Rental expenses:
Property and maintenance 202,428 224,466 216,861 188,406 349,407 156,111
Taxes and insurance 63,114 79,850 74,067 61,559 143,119 75,941
Property management - - -- -- -- --
General and administrative - - -- -- -- --
Amortization - - -- -- -- --
Depreciation of rental prop - - -- -- -- --
-------------------------------------------------------------------------------------
Total expenses 265,542 304,316 290,928 249,965 492,526 232,052
Income before interest income (expense) 239,491 336,733 274,219 287,005 674,846 301,975
Interest income - - -- -- -- --
Interest expense - - -- -- -- --
-------------------------------------------------------------------------------------
Net income $239,491 $336,733 $ 274,219 $ 287,005 $ 674,846 $ 301,975
Basic and diluted earnings per common share
Wgt. avg. number of common shares outstanding
<CAPTION>
Emerald Brandywine Burney Courts on
Newport Oaks Estrada Park Oaks Pear Ridge
Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma
Adjustments Adjustments Adjustments Adjustments Adjustments Adjustments
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Date of Acquisition 7/24/98 7/24/98 7/27/98 10/29/98 10/28/98 11/17/98
Rental income $ 686,911 $ 1,046,462 $ 962,727 $ 1,095,515 $ 1,178,780 $ 1,323,205
Rental expenses:
Property and maintenance 235,111 284,868 281,613 387,118 424,927 445,176
Taxes and insurance 109,875 133,916 124,830 131,915 162,395 192,254
Property management -- -- -- -- -- --
General and administrative -- -- -- -- -- --
Amortization -- -- -- -- -- --
Depreciation of rental prop -- -- -- -- -- --
-------------------------------------------------------------------------------------
Total expenses 344,986 418,784 406,443 519,033 587,322 637,430
Income before interest income (expense)
Interest income 341,925 627,678 556,284 576,482 591,458 685,775
Interest expense -- -- -- -- -- --
-- -- -- -- -- --
-------------------------------------------------------------------------------------
Net income $ 341,925 $ 627,678 $ 556,284 $ 576,482 $ 591,458 $ 685,775
Basic and diluted earnings per common share
Wgt. avg. number of common shares outstanding
<CAPTION>
Pro Forma Total
Adjustments Pro Forma
---------------------------------
Date of Acquisition -- --
<S> <C> <C>
Rental income -- $31,890,447
Rental expenses:
Property and maintenance -- 9,492,866
Taxes and insurance -- 4,354,347
Property management $ 636,837 (A) 1,746,332
General and administrative 131,486 (B) 710,501
Amortization -- 28,544
Depreciation of rental prop 1,986,912 (C) 5,666,912
---------------------------------
Total expenses 2,755,236 21,999,503
Income before interest income (expense) (2,755,236) 9,890,944
Interest income (1,188,355)(F) --
Interest expense (1,069,313)(D) (1,407,610)
---------------------------------
Net income ($5,012,904) $ 8,483,334
Basic and diluted earnings per common share $0.38
=====
Wgt. avg. number of common shares outstanding 4,774,071 (E) 22,597,385
=================================
</TABLE>
(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 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, 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 5 of the 16 properties for the period in
which the properties were not owned for the nine months period ended
September 30, 1998, interest was computed based on interest rates on
the properties debt that was assumed at acquisition.
(E) Represents additional common shares assuming the properties were acquired on
January 1, 1998 with the net proceeds from the "best efforts" offering of
$10 per share (net $8.70 per share).
(F) Represents reduction of interest income associated with $32.7 million of
cash used to purchase properties at an interest rate of 5%.
<PAGE>
Pro Forma Consolidated Statement of Operations for the year ended December 31,
1997 (unaudited) The Unaudited Pro Forma Consolidated Statement of Operations
for the year ended December 31, 1997 is presented as if the 12 property
acquisitions during 1997 and the 16 property acquisitions during 1998 had
occurred on January 1, 1997. The Unaudited Pro Forma Consolidated Statement of
Operations assumes the Company qualifying as a REIT, distributing at least 95%
of its taxable income, and, therefore, incurring 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 Consolidated 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, 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 Consolidated Statement of Operations should be read in
conjunction with, and is qualified in its entirety by, the Company's respective
historical financial statements and notes thereto.
<TABLE>
<CAPTION>
<S> <C>
Historical 1997 Pro Forma Main Park
Statement of Acquisitions Pro Forma Before 1998 Pro Forma
Operations Adjustments Adjustments Acquisitions Adjustments
--------------------------------------------------------------------------
Date of Acquisition -- -- -- -- 2/4/98
Rental income $ 12,005,968 $ 5,392,558 -- $ 17,398,526 $ 1,469,496
Rental expenses:
Property and maintenance 3,571,484 1,982,189 -- 5,553,673 536,090
Taxes and insurance 1,765,741 706,939 -- 2,472,680 225,564
Property management 656,267 -- $ 295,813 (A) 952,080 --
General and administrative 351,081 -- 67,262 (B) 418,343 --
Amortization 28,490 -- -- 28,490 --
Depreciation of rental property 1,898,003 -- 792,074 (C) 2,690,077 --
--------------------------------------------------------------------------
Total expenses 8,271,066 2,689,128 1,155,149 12,115,343 761,654
Income before interest income (expense) 3,734,902 2,703,430 (1,155,149) 5,283,183 707,842
Interest income 222,676 -- -- 222,676 --
Interest expense (458,384) -- -- (458,384) --
--------------------------------------------------------------------------
Net income $ 3,499,194 $ 2,703,430 ($ 1,155,149) $ 5,047,475 $ 707,842
Basic and diluted earnings per common share $ 0.54 $ 0.53
========== ===========
Wgt. avg. number of common shares outstanding 6,493,114 3,106,405 (E) 9,599,519
========== ========= ===========
Copper Bitter Summer Park
Timberglen Ridge Creek Tree Village
Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma
Adjustments Adjustments Adjustments Adjustments Adjustments
----------------------------------------------------------------------------------
Date of Acquisition 2/13/98 3/31/98 5/8/98 6/1/98 7/1/98
Rental income $ 1,954,938 $ 914,447 $ 2,629,983 $ 1,212,080 $ 1,282,097
Rental expenses:
Property and maintenance 477,771 589,618 926,213 485,827 448,932
Taxes and insurance 258,159 119,708 295,801 151,473 159,700
Property management -- -- -- -- --
General and administrative -- -- -- -- --
Amortization -- -- -- -- --
Depreciation of rental property -- -- -- -- --
----------------------------------------------------------------------------------
Total expenses 735,930 709,326 1,222,014 637,300 608,632
Income before interest income (expense) 1,219,008 205,121 1,407,969 574,780 673,465
Interest income -- -- -- -- --
Interest expense -- -- -- -- --
----------------------------------------------------------------------------------
Net income $ 1,219,008 $ 205,121 $ 1,407,969 $ 574,780 $ 673,465
Basic and diluted earnings per common share
Wgt. avg. number of common shares outstanding
Hayden's Pace's Pepper
Cottonwood Crossing Point Square Newport
Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma
Adjustments Adjustments Adjustments Adjustments Adjustments
---------------------------------------------------------------------------------
Date of Acquisition 7/9/98 7/24/98 7/17/98 7/17/98 7/24/98
Rental income $ 1,130,293 $ 920,520 $ 2,001,209 $ 915,474 $ 1,177,562
Rental expenses:
Property and maintenance 433,721 322,981 598,984 267,618 403,047
Taxes and insurance 148,133 105,530 245,347 130,185 188,357
Property management -- -- -- -- --
General and administrative -- -- -- -- --
Amortization -- -- -- -- --
Depreciation of rental property -- -- -- -- --
---------------------------------------------------------------------------------
Total expenses 581,854 428,511 844,331 397,803 591,404
Income before interest income (expense) 548,439 492,009 1,156,878 517,671 586,158
Interest income -- -- -- -- --
Interest expense -- -- -- -- --
---------------------------------------------------------------------------------
Net income $ 548,439 $ 492,009 $ 1,156,878 $ 517,671 $ 586,158
Basic and diluted earnings per common share
Wgt. avg. number of common shares outstanding
Emerald Brandywine Burney Courts on
Oaks Estrada Park Oaks Pear Ridge
Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma
Adjustments Adjustments Adjustments Adjustments Adjustments
---------------------------------------------------------------------------------
Date of Acquisition 7/24/98 7/27/98 10/29/98 10/28/98 11/17/98
Rental income $ 1,793,934 $ 1,650,389 $ 1,460,686 $ 1,571,707 $ 1,764,273
Rental expenses:
Property and maintenance 488,345 482,765 516,157 566,569 593,568
Taxes and insurance 229,570 214,029 175,886 216,526 256,339
Property management -- -- -- -- --
General and administrative -- -- -- -- --
Amortization -- -- -- -- --
Depreciation of rental property -- -- -- -- --
---------------------------------------------------------------------------------
Total expenses 717,915 696,794 692,043 783,095 849,907
Income before interest income (expense) 1,076,019 953,595 768,643 788,612 914,366
Interest income -- -- -- -- --
Interest expense -- -- -- -- --
---------------------------------------------------------------------------------
Net income $ 1,076,019 $ 953,595 $ 768,643 $ 788,612 $ 914,366
Basic and diluted earnings per common share
Wgt. avg. number of common shares outstanding
Pro Forma Total
Adjustments Pro Forma
-----------------------------------
Date of Acquisition -- --
Rental income -- $ 41,247,614
Rental expenses:
Property and maintenance -- 13,691,879
Taxes and insurance -- 5,592,987
Property management $ 1,307,294 (A) 2,259,374
General and administrative 278,195 (B) 696,538
Amortization -- 28,490
Depreciation of rental property 4,031,750 (C) 6,721,827
-----------------------------------
Total expenses 5,617,239 28,991,095
Income before interest income (expense) (5,617,239) 12,256,519
Interest income -- 222,676
Interest expense (1,833,108)(D) (2,291,492)
-----------------------------------
Net income ($ 7,450,347) $ 10,187,703
Basic and diluted earnings per common share $ 0.46
============
Wgt. avg. number of common shares outstanding 12,790,563 (E) 22,390,082
========== ============
</TABLE>
(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 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, 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 5 of the 16 properties for the period
in which the properties were not owned, interest was computed based on
interest rates on the properties debt that was assumed at acquisition.
(E) Represents additional common shares assuming the properties were acquired
on January 1, 1997 with the net proceeds from the "best efforts" offering
of $9 per share (net $7.83 per share) for the first $15 million and $10
per share (net $8.70 per share) above $15 million.
<PAGE>
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31,
1997 (UNAUDITED)
The following schedule provides detail of 1997 acquisitions by property included
in the Pro Forma Consolidated Statement of Operations for the year ended
December 31, 1997.
<TABLE>
<CAPTION>
Brookfield Eagle Crest Aspen Hills Mill Crossing Polo Run Wildwood
Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma
Adjustments Adjustments Adjustments Adjustments Adjustments Adjustments
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Date of Acquisitions 1/31/97 1/31/97 1/31/97 2/28/97 03/31/97 03/31/97
Rental income $99,879 $266,385 $100,023 $151,389 $326,137 $202,389
Expenses
Property and maintenance 32,430 74,735 51,643 77,882 121,983 78,111
Taxes and insurance 12,720 36,546 12,099 19,230 40,508 25,216
Property management - - - - - -
General and administrative - - - - - -
Depreciation of real estate - - - - - -
Amortization - - - - - -
----------------------------------------------------------------------------------------------
45,150 111,281 63,742 97,112 162,491 103,327
Income before interest income 54,729 155,104 36,281 54,277 163,646 99,062
Interest income - - - - - -
Interest expense - - - - - -
----------------------------------------------------------------------------------------------
Net income $54,729 $155,104 $36,281 $54,277 $163,646 $99,062
==============================================================================================
<CAPTION>
Copper
Toscana The Arbors Paces Cove Chaparosa Riverhill Crossing
Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma Pro Forma
Adjustments Adjustments Adjustments Adjustments Adjustments Adjustments
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Date of Acquisitions 03/31/97 4/25/97 6/30/97 8/6/97 8/6/97 11/25/97
Rental income $270,812 $460,338 $916,348 $801,713 $892,295 $904,850
Expenses
Property and maintenance 82,722 102,132 314,521 286,943 338,906 420,181
Taxes and insurance 35,674 60,729 128,306 97,242 124,028 114,641
Property management - - - - - -
General and administrative - - - - - -
Depreciation of real estate - - - - - -
Amortization - - - - - -
-----------------------------------------------------------------------------------------------
118,396 162,861 442,827 384,185 462,934 534,822
Income before interest income 152,416 297,477 473,521 417,528 429,361 370,028
Interest income - - - - - -
Interest expense - - - - - -
-----------------------------------------------------------------------------------------------
Net income $152,416 $297,477 $473,521 $417,528 $429,361 $370,028
===============================================================================================
<CAPTION>
Total
Pro Forma
------------------
<S> <C>
Date of Acquisitions
Rental income $5,392,558
Expenses
Property and maintenance 1,982,189
Taxes and insurance 706,939
Property management 0
General and administrative 0
Depreciation of real estate 0
Amortization 0
------------------
2,689,128
Income before interest income 2,703,430
Interest income 0
Interest expense 0
------------------
Net income $2,703,430
==================
</TABLE>
<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: January 29, 1999 By:/s/ Glade M. Knight
-------------------
Glade M. Knight
President of
Apple Residential Realty Income
Trust, Inc.
<PAGE>
ITEM 7.c.
<PAGE>
EXHIBIT INDEX
Apple Residential Income Trust, Inc.
Form 8-K/A to Form 8-K dated November 17, 1998
Exhibit Number Exhibit Page Number
23.1 Consent of Independent Auditors
(Courts on Pear Ridge Apartments)
Exhibit 23.1
[L.P. MARTIN & COMPANY LETTERHEAD]
Consent of Independent Auditors'
The Board of Directors
Apple Residential Income Trust, Inc.
Richmond, Virginia
We consent to the use of our report dated January 21, 1999 with respect to
the statement of income and direct operating expenses exclusive of items not
comparable to the proposed future operations of the property The Courts on Pear
Ridge Apartments for the twelve month period ended October 31, 1998, for
inclusion in a form 8K filing with the Securities and Exchange Commission by
Apple Residential Income Trust, Inc.
Richmond, Virginia
January 21, 1999 /s/ L.P. Martin & Co., P.C.
