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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) October 23, 1996
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VINLAND PROPERTY TRUST
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(Exact name of registrant as specified in its charter)
California 0-8003 94-2432628
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File No.) Identification No.)
3100 Monticello, Suite 200, Dallas, Texas 75205
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (214) 599-2200
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3878 Oak Lawn, Suite 300, Dallas, Texas 75219
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(Former name or former address, if changed since last report)
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ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
On October 23, 1996, Vinland Property Trust (the "Trust") sold its interest in
Polynesia Village Apartments, a 448-unit complex located in Tacoma, Washington,
to Pearl Street 1995, L.L.C., a Washington limited liability company not
affiliated with the Trust or any of its officers or trustees, for $9.6 million.
The Trust had recorded an in-substance foreclosure of the property on August 31,
1995, pursuant to a settlement with a borrower on a $2.0 million mortgage note
receivable. The Trust accepted a note receivable from the purchaser of
$325,000 for a portion of the purchase price, and the purchaser agreed to
reimburse the Trust for certain capital improvements to the property totaling
approximately $99,000. Through prorations at closing, the note balance was
reduced to $192,000. The carrying value of the property, which was subject to
a $5.7 million first mortgage loan, exceeded 10% of the Trust's assets. The
Trust received net cash proceeds of $3.2 million, including earnest money
deposits received prior to closing, after the payoff of the first mortgage
loan, closing costs and prorated property taxes, and a selling commission to
the purchaser's real estate broker. In connection with this disposition, the
Trust paid Tarragon Realty Advisors, Inc., the Trust's advisor, a brokerage
commission of 2% of the total sales consideration, or $194,000. In October
1996, the Trust recorded a gain on this sale of $837,000.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(b) Pro forma financial information:
Pro forma statements of operations are presented for the fiscal year ended
November 30, 1995, and the nine months ended August 31, 1996. A pro forma
balance sheet as of August 31, 1996, is also presented.
The pro forma statement of operations for the nine months ended August 31,
1996, presents the Trust's operations as if the transaction described in Item 2.
had occurred on December 1, 1995. The pro forma statement of operations for the
fiscal year ended November 30, 1995, presents the Trust's operations as if the
transaction described in Item 2. had occurred on August 31, 1995, the date the
Trust acquired the property. Pro forma adjustments related to the pro forma
balance sheet have been computed assuming the transaction was consummated on
August 31, 1996.
[This space intentionally left blank.]
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VINLAND PROPERTY TRUST
PRO FORMA
CONSOLIDATED BALANCE SHEET
AUGUST 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
Sale of
Polynesia
Actual Village (1) Pro forma
-------- --------------- ---------
<S> <C> <C> <C>
(dollars in thousands)
Assets
------
Real estate
Held for investment, net of
accumulated depreciation . . $ 22,211 $ - $ 22,211
Held for sale, net of
accumulated depreciation . . 8,590 (8,348) 242
-------- -------- --------
30,801 (8,348) 22,453
Less - allowance for estimated
losses . . . . . . . . . . . . . (241) - (241)
-------- -------- --------
30,560 (8,348) 22,212
Notes and interest receivable . . 734 192 926
Cash and cash equivalents . . . . 443 2,967 3,410
Other assets . . . . . . . . . . . 2,356 27 2,383
-------- -------- --------
$ 34,093 $ (5,162) $ 28,931
======== ======== ========
Liabilities and Shareholders' Equity
- ------------------------------------
Liabilities
Notes, debentures, and interest
payable . . . . . . . . . . . $ 23,360 $ (5,770) $ 17,590
Other liabilities . . . . . . . . 1,392 (178) 1,214
-------- -------- --------
24,752 (5,948) 18,804
Commitments and contingencies
Shareholders' equity
Shares of beneficial interest, no
par value; authorized shares,
unlimited; issued and outstanding,
1,346,833 shares (after deducting
1,154 shares held in treasury) 2,242 - 2,242
Paid-in capital . . . . . . . . . 43,727 - 43,727
Accumulated distributions in excess
of accumulated earnings . . . (36,628) 786 (35,842)
-------- -------- --------
9,341 786 10,127
-------- -------- --------
$ 34,093 $ (5,162) $ 28,931
======== ======== ========
</TABLE>
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(1) Assumes the Trust sold Polynesia Village on August 31, 1996, and
accordingly represents the changes in balance sheet accounts related
to the sale, including the gain thereon.
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VINLAND PROPERTY TRUST
PRO FORMA
STATEMENT OF OPERATIONS
NINE MONTHS ENDED AUGUST 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
Polynesia
Actual Village (1) Pro forma(2)
------ ----------- ------------
(dollars in thousands, except per share data)
<S> <C> <C> <C>
Income
Rentals . . . . . . . . . . . . . $ 7,099 $ (1,417) $ 5,682
Interest . . . . . . . . . . . . . 105 - 105
Equity in income of partnerships . 40 - 40
---------- ---------- ----------
7,244 (1,417) 5,827
Expenses
Property operations . . . . . . . 4,362 (792) 3,570
Interest . . . . . . . . . . . . . 1,452 (330) 1,122
Depreciation . . . . . . . . . . . 673 - 673
Advisory fees to affiliate . . . . 187 - 187
General and administrative . . . . 342 - 342
---------- ---------- ----------
7,016 (1,122) 5,894
---------- ---------- ----------
Income (loss) before gain (loss) on
sale of real estate and
extraordinary gain . . . . . . . . 228 (295) (67)
Gain (loss) on sale of real estate . (171) 837 666
---------- ---------- ----------
Income from continuing operations . . $ 57 $ 542 $ 599
========== ========= ==========
Earnings per share
Income from continuing operations . . $ .04 $ .44
========== ==========
Weighted average shares of
beneficial interest used in
computing earnings per share . . . 1,357,773 1,357,773
========== ==========
</TABLE>
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(1) Assumes the Trust sold Polynesia Village on December 1, 1995, and
accordingly represents operations for the property for the nine months
ended August 31, 1996.
(2) Includes gains and losses on the sale of real estate.
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VINLAND PROPERTY TRUST
PRO FORMA
STATEMENT OF OPERATIONS
YEAR ENDED NOVEMBER 30, 1995
<TABLE>
<CAPTION>
Polynesia
Actual Village (1) Pro forma(2)
-------------- -------------- ------------
(audited) (unaudited) (unaudited)
(dollars in thousands, except per share data)
<S> <C> <C> <C>
Income
Rentals . . . . . . . . . . . . . $ 8,306 $ (465) $ 7,841
Interest . . . . . . . . . . . . . 131 - 131
----------- --------- -----------
8,437 (465) 7,972
Expenses
Property operations . . . . . . . 5,666 (276) 5,390
Interest . . . . . . . . . . . . . 1,441 (111) 1,330
Depreciation . . . . . . . . . . . 991 (40) 951
Advisory fees to affiliate . . . . 146 - 146
General and administrative . . . . 356 - 356
Provision for losses . . . . . . . (190) - (190)
----------- --------- -----------
8,410 (427) 7,983
----------- --------- -----------
Income (loss) before gain on
sale of real estate . . . . . . . . 27 (38) (11)
Gain on sale of real estate . . . . . - 837 837
----------- --------- -----------
Net income . . . . . . . . . . . . . $ 27 $ 799 $ 826
=========== ========= ===========
Earnings per share
Net income . . . . . . . . . . . . . $ .02 $ .59
=========== ===========
Weighted average shares of
beneficial interest used in
computing earnings per share . . . 1,392,006 1,392,006
=========== ==========
</TABLE>
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(1) Assumes the Trust sold Polynesia Village on August 31, 1995, the date the
Trust acquired the property, and accordingly represents operations for
the property for the three months ended November 30, 1995.
(2) Includes gains and losses on the sale of real estate.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
VINLAND PROPERTY TRUST
By: /s/ ROBERT C. IRVINE
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Robert C. Irvine
Chief Financial Officer
DATED: November 7, 1996
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