FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended September 30, 1997
Commission file number 0-7752
CONTINENTAL REAL ESTATE PARTNERS, LTD.
(Exact name of Registrant as Specified in its
Certificate of Limited Partnership)
Massachusetts 04-2523977
(State of organization) (Internal Revenue Service
Employer Identification
Number)
Wood Ridge Road
Glen Arbor, Michigan 49636
(Address of principal executive (Zip code)
offices)
(616) 334-5000
Registrants' 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 and Exchange Act of 1934 during the preceding 12 months
(or 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
The number of limited partnership interests outstanding as of
September 30, 1997:
Limited partnership units, $500 per unit - 30,004 units
<PAGE>
Index
CONTINENTAL REAL ESTATE PARTNERS, LTD.
Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Statements of assets, liabilities and partners' capital -
September 30, 1997 and December 31, 1996 3
Statements of operations - quarter ended and nine months
ended September 30, 1997 and 1996 4
Statements of changes in partners' capital - nine months
ended September 30, 1997 and 1996 5
Statements of cash flows - nine months ended
September 30, 1997 and 1996 6
Notes to financial statements - September 30, 1997 7
Report of Independent Certified Public Accountants on
Interim Financial Information 8
PART II. OTHER INFORMATION
Item 6. Exhibits and reports on Form 8-K 9
SIGNATURES 10
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PART I. FINANCIAL INFORMATION
Continental Real Estate Partners, Ltd.
STATEMENTS OF ASSETS, LIABILITIES AND PARTNERS' CAPITAL
<CAPTION>
September 30,December 31,
1997 1996
ASSETS (Unaudited) (Note B)
<S> <C> <C>
Investments in real estate
Land $183,581 $183,581
Land improvements 1,877,263 1,877,263
Buildings and equipment 11,929,196 11,927,766
13,990,040 13,988,610
Less accumulated depreciation 11,498,801 11,194,873
2,491,239 2,793,737
Cash 1,215,426 1,065,816
Other assets 294,984 261,549
$4,001,649 $4,121,102
<CAPTION>
LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES
<S> <C> <C>
Unclaimed distribution checks $170,164 $170,164
Accounts payable and accrued expenses 104,514 46,311
Liabilities to general partner 2,127,568 2,136,320
2,402,246 2,352,795
PARTNERS' CAPITAL
General partner 372,351 380,796
Limited partners - 30,004 units of
limited partnership interest 1,227,052 1,387,511
1,599,403 1,768,307
$4,001,649 $4,121,102
See Notes to Financial Statements.
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</TABLE>
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<TABLE>
Continental Real Estate Partners, Ltd.
STATEMENTS OF OPERATIONS (UNAUDITED)
<CAPTION>
Quarter Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Operating revenue
Rental income $120,572 $110,518 $363,172 $328,782
Other, principally operating
expense reimbursements - 100 200 350
120,572 110,618 363,372 329,132
Operating expense
Depreciation 102,440 102,304 303,928 304,969
Repairs and maintenance 9,744 10,086 33,614 32,333
Insurance 24,727 23,013 72,101 62,279
Real estate taxes 18,134 18,154 54,401 54,462
Utilities 5,506 6,501 18,028 24,565
Professional services 8,377 7,276 25,751 26,704
Property management fees 9,102 9,102 27,308 27,306
Commissions 3,027 3,027 9,081 12,201
Investor communications 1,080 1,080 3,240 4,420
Other 11,658 8,388 23,625 31,398
193,795 188,931 571,077 580,637
Operating loss (73,223) (78,313) (207,705) (251,505)
Interest income 13,022 11,293 38,801 30,209
NET LOSS $(60,201) $(67,020) $(168,904) $(221,296)
Net loss allocated to
General partner $(3,010) $(3,351) $(8,445) $(11,065)
Limited partners -
$(5.35) and $(7.01) net loss
per unit of limited partnership
interest outstanding for the
nine months ended September 30,
1997 and 1996, respectively (57,191) (63,669) (160,459) (210,231)
$(60,201) $(67,020) $(168,904) $(221,296)
See Notes to Financial Statements.
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Continental Real Estate Partners, Ltd.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (UNAUDITED)
Nine months ended September 30,
<CAPTION>
1997 1996
General Limited General Limited
Partner Partner Partner Partner
<S> <C> <C> <C> <C>
Beginning balance $380,796 $1,387,511 $396,194 $1,680,071
NET LOSS (8,445) (160,459) (11,065) (210,231)
Ending balance $372,351 $1,227,052 $385,129 $1,469,840
Balance, September 30, 1997
and 1996, per unit of
limited partnership
interest $40.90 $48.99
See Notes to Financial Statements.
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<TABLE>
Continental Real Estate Partners, Ltd.
STATEMENTS OF CASH FLOWS (UNAUDITED)
Nine months ended September 30,
<CAPTION>
1997 1996
<S> <C> <C>
Operating activities
Net loss $(168,904) $(221,296)
Adjustments to reconcile net loss to cash
provided by operating activities
Depreciation and amortization 313,009 314,050
Increase in other assets (42,516) (31,701)
Increase in accounts payable and
accrued expenses 49,451 46,536
Net cash flow provided by operating activities 151,040 107,589
Cash flows from investing activities
Purchase of improvements (1,430) -
Real estate redevelopment costs - (18,086)
Net cash flow used by investing activities (1,430) (18,086)
NET INCREASE IN CASH 149,610 89,503
Balance of cash, beginning of period 1,065,816 978,299
Balance of cash, end of period $1,215,426 $1,067,802
See Notes to Financial Statements.
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Continental Real Estate Partners, Ltd.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE A - BASIS OF PRESENTATION
The accompanying financial statements have been prepared in
accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-
Q and Article 10 of Regulation S-X. Accordingly, they do not
include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements.
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 nine
month period ended September 30, 1997 are not necessarily
indicative of the results that may be expected for the year ended
December 31, 1997. For further information, refer to the
financial statements and footnotes thereto included in the
company's annual report on Form 10-K for the year ended December
31, 1996.
NOTE B - DECEMBER 31, 1996 STATEMENT OF ASSETS, LIABILITIES AND
PARTNERS' CAPITAL
The statement of assets, liabilities and partners' capital at
December 31, 1996 has been derived from the audited financial
statements at that date.
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<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
ON INTERIM FINANCIAL INFORMATION
The Bayberry Group, Inc.
Sole General Partner of
Continental Real Estate Partners, Ltd.
The accompanying statement of assets, liabilities and partners'
capital of Continental Real Estate Partners, Ltd. (a Massachusetts
limited partnership) as of September 30, 1997 and the related
statements of operations for the three and nine month period ended
September 30, 1997 and the statement of cash flows and changes in
partners' capital for the nine month periods ended September 30,
1997 and 1996 were not audited by us and, accordingly, we do not
express an opinion on them.
The accompanying statement of assets and liabilities for the year
ended December 31, 1996 was audited by us, and we expressed an
unqualified opinion on it in our report dated January 17, 1997, but
we have not performed any auditing procedures since that date.
Traverse City, Michigan
November 28, 1997
-8-
<PAGE>
CONTINENTAL REAL ESTATE PARTNERS, LTD.
PART II. OTHER INFORMATION
Item 6. Exhibits and reports on Form 8-K
The company did not file any reports on Form 8-K during the three
months ended September 30, 1997.
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<PAGE>
CONTINENTAL REAL ESTATE PARTNERS, LTD.
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.
CONTINENTAL REAL ESTATE PARTNERS, LTD.
Date
Robert A. Kuras, Principal Financial
Officer and President of
The Bayberry Group, Inc.
Sole General Partner
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[ARTICLE] 5
[CIK] 0000024148
[NAME] CONTINENTAL REAL ESTATE PARTNERS LTD
<TABLE>
<S> <C> <C>
[PERIOD-TYPE] 3-MOS 9-MOS
[FISCAL-YEAR-END] DEC-31-1997 DEC-31-1997
[PERIOD-END] SEP-30-1997 SEP-30-1997
[CASH] 1215426 1215426
[SECURITIES] 0 0
[RECEIVABLES] 0 0
[ALLOWANCES] 0 0
[INVENTORY] 0 0
[CURRENT-ASSETS] 294984 294984
[PP&E] 13990040 13990040
[DEPRECIATION] 11498801 11498801
[TOTAL-ASSETS] 4001649 4001649
[CURRENT-LIABILITIES] 2402246 2402246
[BONDS] 0 0
[PREFERRED-MANDATORY] 0 0
[PREFERRED] 0 0
[COMMON] 0 0
[OTHER-SE] 1599403 1599403
[TOTAL-LIABILITY-AND-EQUITY] 4001649 4001649
[SALES] 133594 402173
[TOTAL-REVENUES] 133594 402173
[CGS] 0 0
[TOTAL-COSTS] 0 0
[OTHER-EXPENSES] 193795 571077
[LOSS-PROVISION] 0 0
[INTEREST-EXPENSE] 0 0
[INCOME-PRETAX] (60201) (168904)
[INCOME-TAX] 0 0
[INCOME-CONTINUING] (60201) (168904)
[DISCONTINUED] 0 0
[EXTRAORDINARY] 0 0
[CHANGES] 0 0
[NET-INCOME] (60201) (168904)
[EPS-PRIMARY] (1.91) (5.35)
[EPS-DILUTED] (1.91) (5.35)
</TABLE>
