SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarter ended September 30, 1995 Commission file number 0-9484
CARLYLE REAL ESTATE LIMITED PARTNERSHIP - IX
(Exact name of registrant as specified in its charter)
Illinois 36-2875190
(State of organization) (I.R.S. Employer Identification No.)
900 N. Michigan Ave., Chicago, IL 60611
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code 312/915-1987
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
TABLE OF CONTENTS
PART I FINANCIAL INFORMATION
Item 1. Financial Statements. . . . . . . . . . . . . . . . . . . 3
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations . . . . . . . . . . . 12
PART II OTHER INFORMATION
Item 5. Other Information . . . . . . . . . . . . . . . . . . . . 15
Item 6. Exhibits and Reports on Form 8-K. . . . . . . . . . . . . 16
<TABLE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
CARLYLE REAL ESTATE LIMITED PARTNERSHIP - IX
(A LIMITED PARTNERSHIP)
AND CONSOLIDATED VENTURE
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 1995 AND DECEMBER 31, 1994
(UNAUDITED)
ASSETS
------
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
1995 1994
-------------- -----------
<S> <C> <C>
Current assets:
Cash and cash equivalents (note 1) . . . . . . . . . . . . . . . . . . . . . . . $ 5,232,979 4,789,433
Interest, rents and other receivables. . . . . . . . . . . . . . . . . . . . . . 97,148 218,143
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,057 42,585
------------ -----------
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,378,184 5,050,161
------------ -----------
Investment property, at cost:
Buildings and improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,250,486 34,561,700
Less accumulated depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . 17,412,426 16,651,251
------------ -----------
Total investment property, net of accumulated depreciation . . . . . . . . 17,838,060 17,910,449
------------ -----------
Deferred expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,730,711 2,012,005
Venture partner's deficit in venture (note 2). . . . . . . . . . . . . . . . . . . 33,751,763 33,931,841
------------ -----------
$ 58,698,718 58,904,456
============ ===========
CARLYLE REAL ESTATE LIMITED PARTNERSHIP - IX
(A LIMITED PARTNERSHIP)
AND CONSOLIDATED VENTURE
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND PARTNERS' CAPITAL ACCOUNTS (DEFICITS)
-----------------------------------------------------
SEPTEMBER 30, DECEMBER 31,
1995 1994
-------------- -----------
Current liabilities:
Bank overdrafts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 681,186 297,798
Current portion of long-term debt. . . . . . . . . . . . . . . . . . . . . . . . 82,880,565 813,559
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 542,461 814,444
Unearned rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92,146 68,458
Accrued interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 419,489 422,521
------------ -----------
Total current liabilities. . . . . . . . . . . . . . . . . . . . . . . . . 84,615,847 2,416,780
Tenant security deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 568,557 592,956
Long-term debt, less current portion . . . . . . . . . . . . . . . . . . . . . . . -- 82,670,202
------------ -----------
Commitments and contingencies (notes 2 and 4)
Total liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,184,404 85,679,938
Partners' capital accounts (deficits) (note 1):
General partners:
Capital contributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000 1,000
Cumulative net losses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,245,141) (2,256,733)
Cumulative cash distributions. . . . . . . . . . . . . . . . . . . . . . . . . (897,441) (897,441)
------------ -----------
(3,141,582) (3,153,174)
------------ -----------
Limited partners (55,005 interests):
Capital contributions, net of offering costs . . . . . . . . . . . . . . . . . 49,689,766 49,689,766
Cumulative net earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,221,101 8,942,897
Cumulative cash distributions. . . . . . . . . . . . . . . . . . . . . . . . . (82,254,971) (82,254,971)
------------ -----------
(23,344,104) (23,622,308)
------------ -----------
Total partners' capital accounts (deficits). . . . . . . . . . . . . . . . (26,485,686) (26,775,482)
------------ -----------
$ 58,698,718 58,904,456
============ ===========
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<TABLE>
CARLYLE REAL ESTATE LIMITED PARTNERSHIP - IX
(A LIMITED PARTNERSHIP)
AND CONSOLIDATED VENTURE
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(UNAUDITED)
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
-------------------------- --------------------------
1995 1994 1995 1994
----------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
Income:
Rental income. . . . . . . . . . . . . . . . . . . . . $ 3,919,562 3,992,099 11,844,401 11,811,161
Interest income. . . . . . . . . . . . . . . . . . . . 62,150 49,504 189,740 175,013
Other income . . . . . . . . . . . . . . . . . . . . . 42,847 -- 42,847 --
----------- ---------- ----------- ----------
4,024,559 4,041,603 12,076,988 11,986,174
----------- ---------- ----------- ----------
Expenses:
Mortgage and other interest. . . . . . . . . . . . . . 1,890,734 1,907,672 5,685,941 5,738,275
Depreciation . . . . . . . . . . . . . . . . . . . . . 248,661 273,814 761,175 818,340
Property operating expenses. . . . . . . . . . . . . . 1,602,094 1,640,505 4,711,934 4,728,869
Professional services. . . . . . . . . . . . . . . . . 694 4,257 11,966 31,657
Amortization of deferred expenses. . . . . . . . . . . 133,944 139,077 401,376 391,434
General and administrative . . . . . . . . . . . . . . 11,187 16,591 34,722 94,795
----------- ---------- ----------- ----------
3,887,314 3,981,916 11,607,114 11,803,370
----------- ---------- ----------- ----------
Operating earnings . . . . . . . . . . . . . . 137,245 59,687 469,874 182,804
Venture partner's share of
venture's operations . . . . . . . . . . . . . . . . . (33,133) (31,623) (180,078) (100,341)
----------- ---------- ----------- ----------
Net earnings . . . . . . . . . . . . . . . . . $ 104,112 28,064 289,796 82,463
=========== ========== =========== ==========
Net earnings per
limited partnership
interest . . . . . . . . . . . . . . . . . . $ 1.82 .49 5.06 1.44
=========== ========== =========== ==========
Cash distributions per
limited partnership
interest . . . . . . . . . . . . . . . . . . $ -- -- -- 95.00
=========== ========== =========== ==========
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<TABLE>
CARLYLE REAL ESTATE LIMITED PARTNERSHIP - IX
(A LIMITED PARTNERSHIP)
AND CONSOLIDATED VENTURE
CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(UNAUDITED)
<CAPTION>
1995 1994
------------ -----------
<S> <C> <C>
Cash flows from operating activities:
Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 289,796 82,463
Items not requiring (providing) cash or cash equivalents:
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 761,175 818,340
Amortization of deferred expenses. . . . . . . . . . . . . . . . . . . . . . . . . 401,376 391,434
Venture partner's share of venture's operations . . . . . . . . . . . . . . . . . 180,078 100,341
Changes in:
Interest, rents and other receivables. . . . . . . . . . . . . . . . . . . . . . . 120,995 74,877
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,472) 37,973
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (271,983) 21,898
Unearned rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,688 (15,006)
Accrued interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,032) (6,060)
Tenant security deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (24,399) 43,386
------------ -----------
Net cash provided by operating activities. . . . . . . . . . . . . . . . . 1,472,222 1,549,646
------------ -----------
Cash flows from investing activities:
Net sales and maturities of short-term investments . . . . . . . . . . . . . . . . . -- 8,381,513
Additions to investment property . . . . . . . . . . . . . . . . . . . . . . . . . . (688,786) (1,231,401)
Payment of property disposition fees . . . . . . . . . . . . . . . . . . . . . . . . -- (2,314,071)
Payment of deferred expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . (120,082) (216,820)
------------ -----------
Net cash provided by (used in) investing activities. . . . . . . . . . . . (808,868) 4,619,221
------------ -----------
CARLYLE REAL ESTATE LIMITED PARTNERSHIP - IX
(A LIMITED PARTNERSHIP)
AND CONSOLIDATED VENTURE
CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED
1995 1994
------------ -----------
Cash flows from financing activities:
Bank overdrafts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 383,388 --
Principal payments on long-term debt . . . . . . . . . . . . . . . . . . . . . . . . (603,196) (550,863)
Distributions to limited partners. . . . . . . . . . . . . . . . . . . . . . . . . . -- (5,225,475)
Distributions to general partners. . . . . . . . . . . . . . . . . . . . . . . . . . -- (32,260)
------------ -----------
Net cash used in financing activities. . . . . . . . . . . . . . . . . . . (219,808) (5,808,598)
------------ -----------
Net increase in cash and cash equivalents. . . . . . . . . . . . . . . . . 443,546 360,269
Cash and cash equivalents, beginning of year . . . . . . . . . . . . . . . 4,789,433 2,633,311
------------ -----------
Cash and cash equivalents, end of period . . . . . . . . . . . . . . . . . $ 5,232,979 2,993,580
============ ===========
Supplemental disclosure of cash flow information:
Cash paid for mortgage and other interest. . . . . . . . . . . . . . . . . . . . . . $ 5,688,973 5,744,335
============ ===========
Non-cash investing and financing activities. . . . . . . . . . . . . . . . . . . . . $ -- --
============ ===========
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
CARLYLE REAL ESTATE LIMITED PARTNERSHIP - IX
(A LIMITED PARTNERSHIP)
AND CONSOLIDATED VENTURE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1995 AND 1994
(UNAUDITED)
Readers of this quarterly report should refer to the Partnership's
audited financial statements for the year ended December 31, 1994 which are
included in the Partnership's 1994 Annual Report, as certain footnote
disclosures which would substantially duplicate those contained in such
audited financial statements have been omitted from this report.
(1) BASIS OF ACCOUNTING
The accompanying consolidated financial statements include the
accounts of the Partnership and its venture (note 2), Wright-Carlyle
Partners ("Wright-Carlyle"). The effect of all transactions between the
Partnership and Wright-Carlyle have been eliminated.
The Partnership's records are maintained on the accrual basis of
accounting as adjusted for Federal income tax reporting purposes. The
accompanying consolidated financial statements have been prepared from such
records after making appropriate adjustments to reflect the Partnership's
accounts in accordance with generally accepted accounting principles
("GAAP") and to consolidate the accounts of its venture as described above.
Such adjustments are not recorded on the records of the Partnership. The
net effect of these items is summarized as follows for the nine months
ended September 30:
1995 1994
----------------------- -----------------------
GAAP BASIS TAX BASIS GAAP BASIS TAX BASIS
---------- --------- ---------- ----------
Net earnings
(loss). . . . . . . . $289,796 145,122 82,463 (1,846,963)
Net earnings
(loss) per
limited
partnership
interest. . . . . . . $ 5.06 2.53 1.44 (32.23)
======== ======= ====== ==========
The net earnings (loss) per limited partnership interest ("Interest")
is based upon the Interests outstanding at the end of each period (55,005).
Deficit capital accounts will result, through the duration of the
Partnership, in net gain for financial reporting and income tax purposes.
Certain amounts in the 1994 consolidated financial statements have
been reclassified to conform with the 1995 presentation.
CARLYLE REAL ESTATE LIMITED PARTNERSHIP - IX
(A LIMITED PARTNERSHIP)
AND CONSOLIDATED VENTURE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
The Partnership records amounts held in U.S. Government obligations at
cost, which approximates market. For the purposes of these statements, the
Partnership's policy is to consider all such amounts held with original
maturities of three months or less ($5,231,485 and $1,918,398 at September
30, 1995 and December 31, 1994, respectively) as cash equivalents with any
remaining amounts (none at September 30, 1995 or December 31, 1994 but
generally with maturities of one year or less) reflected as short-term
investments being held to maturity.
(2) WRIGHT-CARLYLE
The Partnership at September 30, 1995 is a party to one operating
joint venture agreement. Pursuant to such agreement, the Partnership made
an initial capital contribution of approximately $9,334,000 (before legal
and other acquisition costs). Under certain circumstances, either pursuant
to the venture agreement or due to the Partnership's obligations as a
general partner, the Partnership may be required to make additional cash
contributions to the venture.
The Partnership acquired, through the above venture, a medical office
complex in Los Angeles, California in which it still has an ownership
interest. The venture property was refinanced under a long-term debt
arrangement which currently matures in January 1996. The Partnership has
initiated discussions with the venture partner regarding a potential
purchase of the Partnership's interest in the joint venture. In the event
the venture partner does not purchase the Partnership's interest in the
near term, the joint venture has begun marketing the property for sale.
The Partnership is also exploring other alternatives for the property,
including a refinancing or short-term extension of the existing mortgage
loan. However, there can be no assurance that the Partnership will be able
to obtain such financing or arrange such a sale. The Partnership has a
cumulative preferred interest of $675,000 per annum in net cash receipts
from the property. After the Partnership receives its preferential return,
the venture partner is entitled to a non-cumulative return of $675,000 per
annum; additional net cash receipts are generally shared in a ratio
relating to the various ownership interests of 50% to the Partnership and
50% to its venture partner. The Partnership also has a preferred position
(related to the Partnership's cash investment in the venture) with respect
to distribution of sale and refinancing proceeds from the venture.
In general, operating profits and losses are shared in the same ratio
as net cash receipts. However, if there are no net cash receipts,
substantially all profits or losses are allocated to the Partnership.
The Partnership did not receive its preferred return in 1994 or 1993
and does not anticipate the receipt of any of its preferred return in 1995.
As a result, such deficiencies will increase prior years' cumulative
preferred return ($2,700,000 at December 31, 1994) and become an addition
to the Partnership's preferred position in relation to the distribution of
sale and refinancing proceeds by the venture as discussed above.
Physical management of the property is performed by an affiliate of
the venture partner. Compensation to the manager is calculated as a
percentage of certain receipts.
There are certain risks associated with the Partnership's investment
made through a joint venture including the possibility that the
Partnership's venture partner in the investment might become unable or
unwilling to fulfill their financial or other obligations, or that such
venture partner may have economic or business interests or goals that are
inconsistent with those of the Partnership.
CARLYLE REAL ESTATE LIMITED PARTNERSHIP - IX
(A LIMITED PARTNERSHIP)
AND CONSOLIDATED VENTURE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
(3) SALE OR DISPOSITION OF INVESTMENT PROPERTIES
In connection with the sale or refinancing of properties by the
Partnership, the General Partners' right to share in the net proceeds of
sale or refinancing is subject to the Limited Partners first receiving from
such sale or refinancing proceeds an amount equal to their aggregate
initial capital investment in the Partnership plus cumulative cash
distributions from Partnership operations, which, when combined with sale
or refinancing proceeds previously distributed, equal a 6% annual return on
their average capital investment for each year. With the distribution of
sale proceeds made in February 1994, the Limited Partners have received
their aggregate initial capital investment in its entirety and have also
received cumulative cash distributions equal to a 6% return on their
average capital investment. Therefore, on February 28, 1994, the General
Partners received their deferred disposition fees aggregating $2,314,071
and shall receive 15% of any remaining sale or refinancing proceeds; the
Limited Partners shall receive 85% of any remaining sale or refinancing
proceeds.
(4) TRANSACTIONS WITH AFFILIATES
Fees, commissions and other expenses required to be paid by the
Partnership to the General Partners and their affiliates as of September
30, 1995 and for the nine months ended September 30, 1995 and 1994 are as
follows:
<TABLE>
<CAPTION>
Unpaid at
September 30,
1995 1994 1995
------ ----- -------------
<S> <C> <C> <C>
Reimbursement (at cost) for
out-of-pocket expenses . . . . . $1,535 2,444 8
====== ===== ===
</TABLE>
On February 28, 1994, the Partnership paid previously deferred
disposition fees aggregating $2,314,071 to the General Partners (note 3).
The Corporate General Partner of the Partnership has determined to use
independent third parties to perform certain administrative services
beginning in the fourth quarter of 1995. Use of such third parties is not
expected to have a material effect on the operations of the Partnership.
(5) ADJUSTMENTS
In the opinion of the Corporate General Partner, all adjustments
(consisting solely of normal recurring adjustments) necessary for a fair
presentation have been made to the accompanying figures as of September 30,
1995 and for the three and nine months ended September 30, 1995 and 1994.
PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
All reference herein to "Notes" are to Notes to Consolidated Financial
Statements contained in this report.
At September 30, 1995, the Partnership and its consolidated venture
had cash and cash equivalents of approximately $5,233,000. Such funds are
available for distributions to partners and for working capital
requirements including the Partnership's share of capital improvements at
the Cedars-Sinai Medical Office Complex, the Partnership's remaining
investment property. The Partnership and its consolidated venture has
currently budgeted approximately $1,042,000 for tenant improvements and
other capital expenditures. The Partnerships' share of such items is
budgeted to be approximately $521,000 in 1995. Actual amounts expended in
1995 may vary depending on a number of factors including actual leasing
activity, liquidity considerations and other market conditions over the
course of the year. The sources of capital for such items and for both
short-term and long-term future liquidity and distributions are expected to
be from net cash generated by the Partnership's remaining investment
property and through the sale and refinancing of such investment. However,
as discussed below, the Partnership does not consider the operations of the
Cedars-Sinai Medical Office Complex (the last property owned by the
Partnership) to be a significant source of short-term liquidity. In the
longer term, the Partnership's liquidity is dependent upon the
Partnership's plans to extend or refinance the property's mortgage loan
which matures in January 1996 or to sell the property before such maturity.
The Partnership has initiated discussions with the venture partner
regarding a potential purchase of the Partnership's interest in the joint
venture. In the event the venture partner does not purchase the
Partnership's interest in the near term, the joint venture has begun
marketing the property for sale. The Partnership is also exploring other
alternatives for the property, including a refinancing of the existing
mortgage loan. However, there can be no assurance that the Partnership
will be able to obtain such financing or arrange such a sale. As the
Cedar-Sinai property is the Partnership's last investment property, upon
sale or disposition of such investment, the Partnership would then proceed
to terminate its affairs. The Partnership's and its venture's mortgage
obligation is non-recourse. Therefore, the Partnership and its venture are
not obligated to pay mortgage indebtedness unless the property produces
sufficient net cash flow from operations or sale.
The East and West Towers of the Cedars-Sinai Medical Office Complex in
Los Angeles, California are occupied 98% and 94%, respectively. During the
remaining portion of 1995, in 1996 and in 1997, expiration of tenant leases
for the entire property will be approximately 6%, 16% and 10%,
respectively. There can be no assurance that all of the expiring tenant
space will be renewed. In addition, due to an extremely competitive office
market in which the property is located, it is possible that significant
costs (a portion of which have been budgeted as described above) will be
required to re-lease such space. Such factors are expected to cause the
property to operate at close to a break even level for such years. In
anticipation of such future costs, all current cash flow of the property is
being reserved by the Cedars-Sinai venture rather than distributed to the
Partnership or the venture partner.
There are certain risks associated with the Partnership's investments
made through joint ventures including the possibility that the
Partnership's venture partners in an investment might become unable or
unwilling to fulfill their financial or other obligations, or that such
venture partners may have economic or business interests or goals that are
inconsistent with those of the Partnership.
While the real estate markets are recuperating, highly competitive
market conditions continue to exist in most locations. The Partnership's
philosophy and approach has been to aggressively and creatively manage the
Partnership's remaining real estate asset to attract and retain tenants.
Net effective rents to the landlord from renewal tenants are much more
favorable than lease terms which can be negotiated with new tenants.
However, the Partnership's capital resources must also be preserved and
allocated in such a manner as to maximize the value of its remaining
property. As a result of the real estate market conditions discussed
above, the Partnership continues to conserve its working capital. All
expenditures are carefully analyzed and certain capital projects are
deferred when appropriate. The Partnership is currently expected to
operate at approximately break-even cash flow in the aggregate, in the near
term, due to the large number of lease expirations at the Cedars-Sinai
Medical Office Complex, as described above. As a result, the Partnership
suspended operating distributions beginning the first quarter of 1993. By
conserving working capital, the Partnership will be in a better position to
meet its future needs since outside sources of capital may be limited. As
previously reported, due to these factors, the Partnership has held certain
of its investment properties longer than originally anticipated in an
effort to maximize the return to the Limited Partners. After reviewing the
remaining property and its competitive marketplace, the General Partners of
the Partnership expect to be able to liquidate the remaining asset as
quickly as practicable. Therefore, the affairs of the Partnership are
expected to be wound up no later than 1999 (sooner if the property is sold
or disposed of in the nearer term), barring unforeseen economic
developments.
RESULTS OF OPERATIONS
The decrease in interest, rents and other receivables and the increase
in unearned rents at September 30, 1995 as compared to December 31, 1994 is
primarily due to the timing of receipt of rental income at the Cedars-Sinai
Medical Office Complex.
The increase in investment property at September 30, 1995 as compared
to December 31, 1994 is primarily due to the 1995 capitalization of
approximately $396,000 of tenant improvement costs and approximately
$292,000 of other budgeted capital items at the Cedars-Sinai Medical Office
Complex.
The decrease in deferred expenses at September 30, 1995 as compared to
December 31, 1994 is primarily due to amortization of such deferred items.
This decrease is partially offset by the capitalization of approximately
$120,000 of deferred leasing costs at the Cedars-Sinai Medical Office
Complex.
Bank overdrafts at September 30, 1995 and December 31, 1994 of
$681,186 and $297,798, respectively, result from overdrafts at the Cedars-
Sinai Medical Office Complex which is managed by an affiliate of the
Partnership's venture partner. These overdrafts, which were the result of
the timing of transfers from investment accounts to cash accounts, were
repaid in October 1995 and January 1995, respectively.
The increase in current portion of long-term debt and the
corresponding decrease in long-term debt, less current portion at September
30, 1995 as compared to December 31, 1994 is primarily due to the entire
balance of the mortgage loan secured by the Cedars-Sinai Medical Office
Complex, which matures in January 1996, being classified as a current
liability at September 30, 1995.
The decrease in accounts payable at September 30, 1995 as compared to
December 31, 1994 is primarily due to the timing of payment of certain
costs at the Cedars-Sinai Medical Office Complex.
The increase in interest income for the three and nine months ended
September 30, 1995 as compared to the three and nine months ended September
30, 1994 is primarily due to an increase in the average rate of interest
earned on investments in U.S. Government obligations in 1995. This
increase is partially offset for the comparable nine month periods by a
decrease in 1995 in the average balance of investments in U.S. Government
obligations.
The increase in other income for the three and nine months ended
September 30, 1995 as compared to the three and nine months ended September
30, 1994 is primarily due to the reversal of an accrued tax liability.
The decrease in general and administrative for the three and nine
months ended September 30, 1995 as compared to the three and nine months
ended September 30, 1994 is primarily due to the accrual in 1994 of certain
costs associated with the sale of the Partnership's interest in the White
Marsh II venture.
<TABLE>
PART II. OTHER INFORMATION
ITEM 5. OTHER INFORMATION
OCCUPANCY
The following is a listing of approximate occupancy levels by quarter for the Partnership's remaining
investment property:
<CAPTION>
1994 1995
------------------------------------- ------------------------------
At At At At At At At At
3/31 6/30 9/30 12/31 3/31 6/30 9/30 12/31
---- ---- ---- ----- ---- ---- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Cedars-Sinai Medical
Office Complex
Los Angeles, California
East Tower . . . . . . . . . . 99% 94% 92% 94% 95% 95% 98%
West Tower . . . . . . . . . . 89% 96% 96% 96% 96% 96% 94%
/TABLE
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits.
4. Modification documents relating to the long-term
mortgage note secured by the Cedars-Sinai Medical Office Complex located in
Los Angeles, California are incorporated by reference to the Partnership's
report for December 31, 1992 on Form 8-K (File No. 0-9484) dated January
15, 1991.
10. Acquisition documents relating to the purchase by the
Partnership of an interest in Cedars-Sinai Medical Office Complex located
in Los Angeles, California are incorporated herein by reference to the
Partnership's Registration Statement on Post-Effective Amendment No. 2 to
the Partnership's Prospectus on Form S-11 (File No. 2-63958) dated August
17, 1979.
27. Financial Data Schedule
(b) No reports on Form 8-K have been filed for the quarter covered
by this report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Company has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CARLYLE REAL ESTATE LIMITED PARTNERSHIP - IX
BY: JMB Realty Corporation
(Corporate General Partner)
By: GAILEN J. HULL
Gailen J. Hull, Senior Vice President
Date: November 9, 1995
Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following person in the capacity
and on the date indicated.
GAILEN J. HULL
Gailen J. Hull, Principal Accounting Officer
Date: November 9, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
REGISTRANT'S FORM 10-Q FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS
INCLUDED IN SUCH REPORT.
</LEGEND>
<CIK> 0000310812
<NAME> CARLYLE REAL ESTATE LIMITED PARTNERSHIP - IX
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 5,232,979
<SECURITIES> 0
<RECEIVABLES> 145,205
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 5,378,184
<PP&E> 35,250,486
<DEPRECIATION> 17,412,426
<TOTAL-ASSETS> 58,698,718
<CURRENT-LIABILITIES> 84,615,847
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> (26,485,686)
<TOTAL-LIABILITY-AND-EQUITY> 58,698,718
<SALES> 11,844,401
<TOTAL-REVENUES> 12,076,988
<CGS> 0
<TOTAL-COSTS> 5,874,485
<OTHER-EXPENSES> 46,688
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 5,685,941
<INCOME-PRETAX> 469,874
<INCOME-TAX> 0
<INCOME-CONTINUING> 289,796
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 289,796
<EPS-PRIMARY> 5.06
<EPS-DILUTED> 5.06
</TABLE>
