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 June 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
JUNE 30, 1995 AND DECEMBER 31, 1994
(UNAUDITED)
ASSETS
------
<CAPTION>
JUNE 30, DECEMBER 31,
1995 1994
------------ -----------
<S> <C> <C>
Current assets:
Cash and cash equivalents (note 1) . . . . . . . . . . . . . . . . . . . . . . . $ 1,680,928 4,789,433
Short-term investments (note 1). . . . . . . . . . . . . . . . . . . . . . . . . 2,738,593 --
Interest, rents and other receivables. . . . . . . . . . . . . . . . . . . . . . 81,559 218,143
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,932 42,585
------------ -----------
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,555,012 5,050,161
------------ -----------
Investment property, at cost:
Buildings and improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,017,432 34,561,700
Less accumulated depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . 17,163,765 16,651,251
------------ -----------
Total investment property, net of accumulated depreciation . . . . . . . . 17,853,667 17,910,449
------------ -----------
Deferred expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,834,770 2,012,005
Venture partner's deficit in venture (note 2). . . . . . . . . . . . . . . . . . . 33,784,896 33,931,841
------------ -----------
$ 58,028,345 58,904,456
============ ===========
CARLYLE REAL ESTATE LIMITED PARTNERSHIP - IX
(A LIMITED PARTNERSHIP)
AND CONSOLIDATED VENTURE
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND PARTNERS' CAPITAL ACCOUNTS (DEFICITS)
-----------------------------------------------------
JUNE 30, DECEMBER 31,
1995 1994
------------ -----------
Current liabilities:
Bank overdrafts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ -- 297,798
Current portion of long-term debt. . . . . . . . . . . . . . . . . . . . . . . . 83,086,210 813,559
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,774 814,444
Unearned rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128,286 68,458
Accrued interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 420,509 422,521
------------ -----------
Total current liabilities. . . . . . . . . . . . . . . . . . . . . . . . . 84,035,779 2,416,780
Tenant security deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 582,364 592,956
Long-term debt, less current portion . . . . . . . . . . . . . . . . . . . . . . . -- 82,670,202
------------ -----------
Commitments and contingencies (notes 2 and 4)
Total liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84,618,143 85,679,938
Partners' capital accounts (deficits) (note 1):
General partners:
Capital contributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000 1,000
Cumulative net losses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,249,306) (2,256,733)
Cumulative cash distributions. . . . . . . . . . . . . . . . . . . . . . . . . (897,441) (897,441)
------------ -----------
(3,145,747) (3,153,174)
------------ -----------
Limited partners (55,005 interests):
Capital contributions, net of offering costs . . . . . . . . . . . . . . . . . 49,689,766 49,689,766
Cumulative net earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,121,154 8,942,897
Cumulative cash distributions. . . . . . . . . . . . . . . . . . . . . . . . . (82,254,971) (82,254,971)
------------ -----------
(23,444,051) (23,622,308)
------------ -----------
Total partners' capital accounts (deficits). . . . . . . . . . . . . . . . (26,589,798) (26,775,482)
------------ -----------
$ 58,028,345 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 SIX MONTHS ENDED JUNE 30, 1995 AND 1994
(UNAUDITED)
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
-------------------------- --------------------------
1995 1994 1995 1994
----------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
Income:
Rental income. . . . . . . . . . . . . . . . . . . . . $ 4,050,881 3,924,672 7,924,839 7,819,062
Interest income. . . . . . . . . . . . . . . . . . . . 69,944 47,993 127,590 125,509
----------- ---------- ----------- ----------
4,120,825 3,972,665 8,052,429 7,944,571
----------- ---------- ----------- ----------
Expenses:
Mortgage and other interest. . . . . . . . . . . . . . 1,895,349 1,912,790 3,795,207 3,830,603
Depreciation . . . . . . . . . . . . . . . . . . . . . 260,422 274,513 512,514 544,526
Property operating expenses. . . . . . . . . . . . . . 1,588,824 1,581,399 3,109,840 3,088,364
Professional services. . . . . . . . . . . . . . . . . 10,440 20,980 11,272 27,400
Amortization of deferred expenses. . . . . . . . . . . 136,432 126,878 267,432 252,357
General and administrative . . . . . . . . . . . . . . 20,390 56,817 23,535 78,204
----------- ---------- ----------- ----------
3,911,857 3,973,377 7,719,800 7,821,454
----------- ---------- ----------- ----------
Operating earnings (loss). . . . . . . . . . . 208,968 (712) 332,629 123,117
Venture partner's share of
venture's operations . . . . . . . . . . . . . . . . . (101,775) (27,533) (146,945) (68,718)
----------- ---------- ----------- ----------
Net earnings (loss). . . . . . . . . . . . . . $ 107,193 (28,245) 185,684 54,399
=========== ========== =========== ==========
Net earnings (loss) per
limited partnership
interest . . . . . . . . . . . . . . . . . . $ 1.87 (.49) 3.24 .95
=========== ========== =========== ==========
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
SIX MONTHS ENDED JUNE 30, 1995 AND 1994
(UNAUDITED)
<CAPTION>
1995 1994
------------ -----------
<S> <C> <C>
Cash flows from operating activities:
Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 185,684 54,399
Items not requiring (providing) cash or cash equivalents:
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 512,514 544,526
Amortization of deferred expenses. . . . . . . . . . . . . . . . . . . . . . . . . 267,432 252,357
Venture partner's share of venture's operations . . . . . . . . . . . . . . . . . 146,945 68,718
Changes in:
Interest, rents and other receivables. . . . . . . . . . . . . . . . . . . . . . . 136,584 (292,184)
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,347) (127,462)
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (413,670) 138,015
Unearned rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59,828 --
Accrued interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,012) --
Tenant security deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,592) (5,286)
------------ -----------
Net cash provided by operating activities. . . . . . . . . . . . . . . . . 871,366 633,083
------------ -----------
Cash flows from investing activities:
Net sales and maturities (purchases) of short-term investments . . . . . . . . . . . (2,738,593) 8,381,516
Additions to investment property . . . . . . . . . . . . . . . . . . . . . . . . . . (455,732) (875,379)
Payment of property disposition fees . . . . . . . . . . . . . . . . . . . . . . . . -- (2,314,071)
Payment of deferred expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . (90,197) (93,527)
------------ -----------
Net cash provided by (used in) investing activities. . . . . . . . . . . . (3,284,522) 5,098,539
------------ -----------
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (297,798) --
Principal payments on long-term debt . . . . . . . . . . . . . . . . . . . . . . . . (397,551) (362,156)
Distributions to limited partners. . . . . . . . . . . . . . . . . . . . . . . . . . -- (5,225,475)
Distributions to general partners. . . . . . . . . . . . . . . . . . . . . . . . . . -- (32,260)
------------ -----------
Net cash used in financing activities. . . . . . . . . . . . . . . . . . . (695,349) (5,619,891)
------------ -----------
Net increase (decrease) in cash and cash equivalents . . . . . . . . . . . (3,108,505) 111,731
Cash and cash equivalents, beginning of year . . . . . . . . . . . . . . . 4,789,433 2,633,311
------------ -----------
Cash and cash equivalents, end of period . . . . . . . . . . . . . . . . . $ 1,680,928 2,745,042
============ ===========
Supplemental disclosure of cash flow information:
Cash paid for mortgage and other interest. . . . . . . . . . . . . . . . . . . . . . $ 3,797,219 3,830,603
============ ===========
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
JUNE 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 six months ended
June 30:
1995 1994
----------------------- -------------------------
GAAP BASIS TAX BASIS GAAP BASIS TAX BASIS
---------- --------- ---------- ---------
Net earnings
(loss). . . . . . . . $185,684 96,749 54,399 (1,884,349)
Net earnings
(loss) per
limited
partnership
interest. . . . . . . $ 3.24 1.69 .95 (39.11)
======== ======= ====== ==========
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
Statement of Financial Accounting Standards No. 95 requires the
Partnership to present a statement which classifies cash receipts and
payments according to whether they stem from operating, investing or
financing activities. The required information has been segregated and
accumulated according to the classifications specified in the
pronouncement. 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 ($1,583,172 and $1,918,398
at June 30, 1995 and December 31, 1994, respectively) as cash equivalents
with any remaining amounts (generally with maturities of one year or less)
reflected as short-term investments being held to maturity.
(2) WRIGHT-CARLYLE
The Partnership at June 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). The venture partner, which contributed in 1979,
an interest in the property then being developed, made no cash
contributions to the venture. Their retention of an interest in the
property, through the joint venture, was taken into account in determining
the purchase price of the Partnership's interest, which was determined by
arm's-length negotiations. 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 will begin 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.
CARLYLE REAL ESTATE LIMITED PARTNERSHIP - IX
(A LIMITED PARTNERSHIP)
AND CONSOLIDATED VENTURE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
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.
(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 June 30,
1995 and for the six months ended June 30, 1995 and 1994 are as follows:
Unpaid at
June 30,
1995 1994 1995
---- ---- -------------
Reimbursement (at cost) for
out-of-pocket expenses . . . . . $ 69 45 --
==== === =======
On February 28, 1994, the Partnership paid previously deferred
disposition fees aggregating $2,314,071 to the General Partners (note 3).
Subsequent to June 30, 1995, the Managing General Partner of the
Partnership has determined to use an independent third party or parties to
perform certain administrative services beginning in late 1995. Use of a
third party is not expected to have a material effect on the operations of
the Partnership.
CARLYLE REAL ESTATE LIMITED PARTNERSHIP - IX
(A LIMITED PARTNERSHIP)
AND CONSOLIDATED VENTURE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONCLUDED
(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 June 30, 1995
and for the three and six months ended June 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 June 30, 1995, the Partnership and its consolidated venture had
cash and cash equivalents of approximately $1,681,000. Such funds and
short-term investments of approximately $2,739,000 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 will begin 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 95% and 96%, respectively. During the
remaining portion of 1995, in 1996 and in 1997, expiration of tenant leases
for the entire property will be approximately 8%, 15% 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 the property's
rental rates achieved on new leases will be less than rates currently in
place and 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.
RESULTS OF OPERATIONS
The decrease in cash and cash equivalents and the increase in short-
term investments at June 30, 1995 as compared to December 31, 1994 is
primarily due to a portion of the Partnership's investments in U.S.
Government obligations being classified as short-term investments at June
30, 1995 and all of the Partnership's investments in U.S. Government
obligations being classified as cash equivalents at December 31, 1994.
Reference is made to Note 1.
The decrease in interest, rents and other receivables and the increase
in unearned rents at June 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 June 30, 1995 as compared to
December 31, 1994 is primarily due to the 1995 capitalization of
approximately $208,000 of tenant improvement costs and approximately
$248,000 of other capital items at the Cedars-Sinai Medical Office Complex.
The decrease in deferred expenses at June 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
$90,000 of deferred leasing costs at the Cedars-Sinai Medical Office
Complex.
Bank overdrafts at December 31, 1994 of $297,798 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 January 1995.
The increase in current portion of long-term debt and the
corresponding decrease in long-term debt, less current portion at June 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 June 30, 1995.
The decrease in accounts payable at June 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 rental income and venture partner's share of venture's
operations for the three and six months ended June 30, 1995 as compared to
the three and six months ended June 30, 1994 is primarily due to an
increase in the average occupancy of the Cedars-Sinai Medical Office
Complex in 1995.
The increase in interest income for the three and six months ended
June 30, 1995 as compared to the three and six months ended June 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 six month periods by a decrease in 1995
in the average balance of investments in U.S. Government obligations.
The decrease in general and administrative for the three and six
months ended June 30, 1995 as compared to the three and six months ended
June 30, 1994 is primarily due to the payment 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%
West Tower . . . . . . . . . . 89% 96% 96% 96% 96% 96%
</TABLE>
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: August 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: August 9, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
REGISTRANT'S FORM 10-Q FOR THE SIX MONTHS ENDED JUNE 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> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 1,680,928
<SECURITIES> 2,738,593
<RECEIVABLES> 135,491
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 4,555,012
<PP&E> 35,017,432
<DEPRECIATION> 17,163,765
<TOTAL-ASSETS> 58,028,345
<CURRENT-LIABILITIES> 84,035,779
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> (26,589,798)
<TOTAL-LIABILITY-AND-EQUITY> 58,028,345
<SALES> 7,924,839
<TOTAL-REVENUES> 8,052,429
<CGS> 0
<TOTAL-COSTS> 3,889,786
<OTHER-EXPENSES> 34,807
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,795,207
<INCOME-PRETAX> 332,629
<INCOME-TAX> 0
<INCOME-CONTINUING> 185,684
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 185,684
<EPS-PRIMARY> 3.24
<EPS-DILUTED> 3.24
</TABLE>
