SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
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EXCHANGE ACT OF 1934.
For the quarterly period ended September 30, 2000
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OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
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EXCHANGE ACT OF 1934.
For the transition period from to
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Commission file number 0-9541
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BALCOR EQUITY PROPERTIES LTD.-VIII
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(Exact name of registrant as specified in its charter)
Illinois 36-3011615
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2333 Waukegan Road, Suite 100
Bannockburn, Illinois 60015
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (847) 267-1600
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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
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BALCOR EQUITY PROPERTIES, LTD. - VIII
(An Illinois Limited Partnership)
BALANCE SHEETS
September 30, 2000 and December 31, 1999
(Unaudited)
ASSETS
2000 1999
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Cash and cash equivalents $ 738,200 $ 819,148
Accounts and accrued interest receivable 4,021 4,489
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$ 742,221 $ 823,637
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LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 15,556 $ 21,174
Due to affiliates 7,194 32,747
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Total liabilities 22,750 53,921
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Commitments and contingencies
Limited Partners' capital (30,005
Interests issued and outstanding) 740,107 790,352
General Partner's deficit (20,636) (20,636)
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Total partners' capital 719,471 769,716
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$ 742,221 $ 823,637
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The accompanying notes are an integral part of the financial statements.
BALCOR EQUITY PROPERTIES, LTD. - VIII
(An Illinois Limited Partnership)
STATEMENTS OF INCOME AND EXPENSES
for the nine months ended September 30, 2000 and 1999
(Unaudited)
2000 1999
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Income:
Interest on short-term investments $ 34,758 $ 30,525
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Total income 34,758 30,525
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Expenses:
Administrative 85,003 77,945
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Total expenses 85,003 77,945
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Net loss $ (50,245) $ (47,420)
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Net loss allocated to General Partner None None
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Net loss allocated to Limited Partners $ (50,245) $ (47,420)
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Net loss per Limited Partnership Interest
(30,005 issued and oustanding) -
Basic and Diluted $ (1.67) $ (1.58)
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The accompanying notes are an integral part of the financial statements.
BALCOR EQUITY PROPERTIES, LTD. - VIII
(An Illinois Limited Partnership)
STATEMENTS OF INCOME AND EXPENSES
for the quarters ended September 30, 2000 and 1999
(Unaudited)
2000 1999
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Income:
Interest on short-term investments $ 12,159 $ 10,330
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Total income 12,159 10,330
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Expenses:
Administrative 24,798 24,922
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Total expenses 24,798 24,922
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Net loss $ (12,639) $ (14,592)
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Net loss allocated to General Partner None None
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Net loss allocated to Limited Partners $ (12,639) $ (14,592)
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Net loss per Limited Partnership Interest
(30,005 issued and oustanding) -
Basic and Diluted $ (0.42) $ (0.49)
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The accompanying notes are an integral part of the financial statements.
BALCOR EQUITY PROPERTIES, LTD. - VIII
(An Illinois Limited Partnership)
STATEMENTS OF CASH FLOWS
for the nine months ended September 30, 2000 and 1999
(Unaudited)
2000 1999
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Operating activities:
Net loss $ (50,245) $ (47,420)
Adjustments to reconcile net loss to net
cash used in operating activities:
Net change in:
Accounts and accrued interest
receivable 468 316
Accounts payable (5,618) (12,618)
Due to affiliates (25,553) 2,791
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Net cash used in operating activities (80,948) (56,931)
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Net change in cash and cash equivalents (80,948) (56,931)
Cash and cash equivalents at beginning
of year 819,148 882,940
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Cash and cash equivalents at end of period $ 738,200 $ 826,009
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The accompanying notes are an integral part of the financial statements.
BALCOR EQUITY PROPERTIES LTD.-VIII
(An Illinois Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
1. Accounting Policy:
In the opinion of management, all adjustments necessary for a fair presentation
have been made to the accompanying statements for the nine months and quarter
ended September 30, 2000, and all such adjustments are of a normal and
recurring nature.
2. Partnership Termination:
As previously reported, class action litigation involving the Partnership was
originally filed in February 1996. This litigation continues to exist after
four and 1/2 years. Since inception of this litigation, the general partner has
stated that the Partnership would not be dissolved until the conclusion of this
litigation and that the general partner has a contingent right to seek recover
from the Partnership of the legal fees it expends in defending against this
litigation. The general partner believed that this litigation would have been
completed and resolved before now. Given the actions of plaintiffs' counsel to
date, at this point in time the general partner does not believe that the
litigation will be concluded in the near future. As a result, the general
partner has decided that it will dissolve the Partnership in December 2000 and
distribute all remaining cash reserves to the limited partners.
The Partnership has accrued on its financial statements the legal fees expended
to date by the general partner in defending against this litigation. The
general partner would be entitled to place such amounts, along with an amount
representing anticipated future legal fees, in a trust account to be held until
the conclusion of this litigation. Because the general partner believes such an
action would not be in the best interests of the limited partners, it has
decided not to do so and will distribute to limited partners such amounts
accrued for legal fees. The general partner does not in any way waive its claim
for indemnification under the partnership agreement; however, the general
partner will not seek to recover from the limited partners any amounts
distributed to them in attempting to satisfy the general partner's
indemnification rights.
3. Transactions with Affiliates:
Fees and expenses paid and payable by the Partnership to affiliates for the
nine months and quarter ended September 30, 2000 are:
Paid
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Nine Months Quarter Payable
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Reimbursement of expenses to
the General Partner, at cost $ 48,260 $ 7,798 $ 7,194
BALCOR EQUITY PROPERTIES LTD.-VIII
(An Illinois Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS
Balcor Equity Properties Ltd.-VIII (the "Partnership") was formed in 1979 to
invest in and operate income-producing real property. The Partnership raised
$30,005,000 through the sale of Limited Partnership Interests and utilized
these proceeds to acquire thirteen real property investments. The Partnership
sold its final real estate investment in July 1997.
Inasmuch as the management's discussion and analysis below relates primarily to
the time period since the end of the last fiscal year, investors are encouraged
to review the financial statements and the management's discussion and analysis
contained in the annual report for 1999 for a more complete understanding of
the Partnership's financial position.
Operations
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2000 Compared to 1999
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The operations of the Partnership in 2000 and 1999 consisted of administrative
expenses which were partially offset by interest income earned on short-term
investments.
As a result of higher interest rates in 2000, interest income on short-term
investments increased during the nine months and quarter ended September 30,
2000 as compared to the same periods in 1999.
Primarily due to an increase in printing costs, administrative expenses
increased during the nine months ended September 30, 2000 as compared to the
same period in 1999. This increase was partially offset by lower accounting
fees, which resulted in slightly lower administrative expenses during the
quarter ended September 30, 2000 as compared to the same period in 1999.
Liquidity and Capital Resources
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The cash position of the Partnership decreased by approximately $81,000 as of
September 30, 2000 as compared to December 31, 1999 due to cash used in
operating activities for the payment of administrative expenses, which was
partially offset by interest income earned on short-term investments.
As previously reported, class action litigation involving the Partnership was
originally filed in February 1996. This litigation continues to exist after
four and 1/2 years. Since inception of this litigation, the general partner has
stated that the Partnership would not be dissolved until the conclusion of this
litigation and that the general partner has a contingent right to seek recovery
from the Partnership of the legal fees it expends in defending against this
litigation. The general partner believed that this litigation would have been
completed and resolved before now. Given the actions of plaintiffs' counsel to
date, at this point in time the general partner does not believe that the
litigation will be concluded in the near future. As a result, the general
partner has decided that it will dissolve the Partnership in December 2000 and
distribute all remaining cash reserves to the limited partners.
The Partnership has accrued on its financial statements the legal fees expended
to date by the general partner in defending against this litigation. The
general partner would be entitled to place such amounts, along with an amount
representing anticipated future legal fees, in a trust account to be held until
the conclusion of this litigation. Because the general partner believes such an
action would not be in the best interests of the limited partners, it has
decided not to do so and will distribute to limited partners such amounts
accrued for legal fees. The general partner does not in any way waive its claim
for indemnification under the partnership agreement; however, the general
partner will not seek to recover from the limited partners any amounts
distributed to them in attempting to satisfy the general partner's
indemnification rights.
Limited Partners have received distributions totaling $622.57 per $1,000
Interest, as well as certain tax benefits. Of this amount, $173.33 represents
Cash Flow from operations and $449.24 represents Net Cash Proceeds. No
additional distributions are anticipated to be made prior to the termination of
the Partnership. However, after paying final partnership expenses, any
remaining cash reserves will be distributed. Limited Partners will not recover
all of their original investment.
BALCOR EQUITY PROPERTIES LTD.-VIII
(An Illinois Limited Partnership)
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
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(3) Exhibits:
(3) The Amended and Restated Agreement of Limited Partnership previously filed
as Exhibit 2(a) to Amendment No. 5 to the Registrant's Registration Statement
on Form S-11 dated July 16, 1980 (Registration No. 2-63821) is incorporated
herein by reference.
(4) Certificate of Limited Partnership set forth as Exhibit 4 to Amendment
No. 2 to the Registrant's Registration Statement on Form S-11 dated
February 26, 1980 (Registration No. 2-63821) and Form of Confirmation regarding
Interests in the Registrant set forth as Exhibit 4.2 to the Registrant's Report
on Form 10-Q for the quarter ended June 30, 1992 (Commission File No. 0-9541)
are incorporated herein by reference.
(27) Financial Data Schedule of the Registrant for the nine months ending
September 30, 2000 is attached hereto.
(b) Reports on Form 8-K: No reports were filed on Form 8-K during the quarter
ended September 30, 2000.
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.
BALCOR EQUITY PROPERTIES LTD.-VIII
By: /S/Thomas E. Meador
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Thomas E. Meador
President and Chief Executive Officer
(Principal Executive Officer) of BRI
Partners-79, the General Partner
By: /s/Jayne A. Kosik
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Jayne A. Kosik
Senior Managing Director and Chief Financial
Officer (Principal Accounting and Financial
Officer) of BRI Partners-79, the General
Partner
Date: November 13, 2000
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