FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Quarterly Report Pursuant to Section 13 or 15 (d)
of the Securities Exchange Act of 1934
For the Quarter Ended Commission File Number
June 30, 1997 2-65391
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP
(Exact Name of Registrant as specified in its Charter)
Delaware 16-1173249
- -------------------- ---------------------------------
(State of Formation) (IRS Employer Identification No.)
2350 North Forest Road
Suite 12-A
Getzville, New York 14068
(Address of Principal Executive Office)
Registrant's Telephone Number: (716) 636-0280
Indicate by a 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
---- ----
Indicate by a check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of the registrant's knowledge, in definitive proxy or information
statements incorporated by reference in part III of this Form 10-Q or any
amendment to this Form 10-Q. (X)
As of June 30, 1997, the issuer had 3,100 units of limited partnership interest
outstanding.
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP
-----------------------------------------------
INDEX
-----
PAGE NO.
--------
PART I: FINANCIAL INFORMATION
---------------------
Balance Sheets -
June 30, 1997 and December 31, 1996 3
Statements of Operations -
Three Months Ended June 30, 1997 and 1996 4
Statements of Operations -
Six Months Ended June 30, 1997 and 1996 5
Statements of Cash Flows -
Six Months Ended June 30, 1997 and 1996 6
Statements of Partners' (Deficit) -
Six Months Ended June 30, 1997 and 1996 7
Notes to Financial Statements 8 - 14
PART II: MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF
----------------------------------
OPERATIONS 15 - 16
----------
-2-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP
BALANCE SHEETS
June 30, 1997 and December 31, 1996
(Unaudited)
June 30, December 31,
1997 1996
---- ----
ASSETS
Property, at cost:
Land $ 182,500 $ 182,500
Land improvements 185,000 185,000
Buildings 2,445,738 2,413,805
Furniture and fixtures 164,141 164,141
----------- -----------
2,977,379 2,945,446
Less accumulated depreciation 1,814,334 1,753,995
----------- -----------
Property, net 1,163,045 1,191,451
Cash - security deposits 29,779 29,406
Escrow deposits 148,816 187,815
Note receivable 0 47,200
Mortgage costs, net of accumulated
amortization of $29,665 and $28,229 171,286 174,157
Other assets 20,984 23,134
----------- -----------
Total Assets $ 1,533,910 $ 1,653,163
=========== ===========
LIABILITIES AND PARTNERS' (DEFICIT)
Liabilities:
Cash overdraft $ 302,285 $ 208,100
Mortgages payable 2,920,940 2,930,266
Accounts payable and accrued expenses 219,275 229,897
Accounts payable - affiliates 764,931 784,461
Non-refundable deposits on sale of property 0 220,000
Accrued interest 21,907 21,977
Security deposits and prepaid rent 32,401 31,858
----------- -----------
Total Liabilities 4,261,739 4,426,559
----------- -----------
Minority interest in consolidated
joint venture 214,363 274,180
----------- -----------
Partners' (Deficit):
General partners (791,915) (792,969)
Limited partners (2,150,277) (2,254,607)
----------- -----------
Total Partners' (Deficit) (2,942,192) (3,047,576)
----------- -----------
Total Liabilities and Partners' (Deficit) $ 1,533,910 $ 1,653,163
=========== ===========
See notes to financial statements
-3-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
Three Months Ended June 30, 1997 and 1996
(Unaudited)
Three Months Three Months
Ended Ended
June 30, June 30,
1997 1996
---- ----
Income:
Rental $ 152,794 $ 166,372
Interest and other income 5,207 11,976
--------- ---------
Total income 158,001 178,348
--------- ---------
Expenses:
Property operations 107,076 71,228
Interest:
Paid to affiliates 20,582 20,274
Other 65,757 66,143
Depreciation and amortization 31,605 31,508
Administrative:
Paid to affiliates 19,041 11,792
Other 24,040 28,089
--------- ---------
Total expenses 268,101 229,034
--------- ---------
Income (loss) before allocation
to minority interest (110,100) (50,686)
Loss allocated to minority interest 37,269 26,936
Extraordinary income:
Deposit on terminated sales contract 220,000 0
--------- ---------
Net income (loss) $ 147,169 ($ 23,750)
========= =========
Income (loss) per limited partnership unit $ 47.00 ($ 7.58)
========= =========
Distributions per limited partnership unit $ 0 $ 0
========= =========
Weighted average number of
limited partnership units
outstanding 3,100 3,100
========= =========
See notes to financial statements
-4-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
Six Months Ended June 30, 1997 and 1996
(Unaudited)
Six Months Six Months
Ended Ended
June 30, June 30,
1997 1996
---- ----
Income:
Rental $ 309,453 $ 343,689
Interest and other income 15,668 19,919
--------- ---------
Total income 325,121 363,608
--------- ---------
Expenses:
Property operations 193,167 156,223
Interest:
Paid to affiliates 40,772 43,267
Other 131,619 132,425
Depreciation and amortization 63,210 63,015
Administrative:
Paid to affiliates 34,959 21,857
Other 35,827 80,218
--------- ---------
Total expenses 499,554 497,005
--------- ---------
Income (loss) before allocation
to minority interest (174,433) (133,397)
Loss allocated to minority interest 59,817 45,211
Extraordinary income:
Deposit on terminated sales contract 220,000 0
--------- ---------
Net income (loss) $ 105,384 ($ 88,186)
========= =========
Income (loss) per limited partnership unit $ 33.65 ($ 28.16)
========= =========
Distributions per limited partnership unit $ 0 $ 0
========= =========
Weighted average number of
limited partnership units
outstanding 3,100 3,100
========= =========
See notes to financial statements
-5-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
Six Months Ended June 30, 1997 and 1996
(Unaudited)
Six Months Six Months
Ended Ended
June 30, June 30,
1997 1996
---- ----
Cash flow from operating activities:
Net income (loss) $ 105,384 ($ 88,186)
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
Depreciation and amortization 63,210 63,015
Minority interest share of net loss (59,817) (45,211)
Changes in operating assets and liabilities:
Cash - security deposits (373) (278)
Escrow deposits 38,999 (20,268)
Other assets 2,150 17,769
Accounts payable and accrued expenses (10,621) 14,696
Accrued interest (70) (64)
Security deposits and prepaid rent 543 6,955
--------- ---------
Net cash provided by (used in) operating activities 139,405 (51,572)
--------- ---------
Cash flow from investing activities:
Property additions and net cash
(used in) investing activities (31,933) 0
--------- ---------
Cash flows from financing activities:
Cash overdraft 94,184 93,900
Accounts payable - affiliates (19,530) (33,801)
Principal payments on mortgage(s) (9,326) (8,527)
Mortgage costs 0 0
Deposits received on sale of property (172,800) 0
--------- ---------
Net cash (used in) provided by financing activities (107,472) 51,572
--------- ---------
Increase (decrease) in cash 0 0
Cash - beginning of period 0 0
--------- ---------
Cash - end of period $ 0 $ 0
========= =========
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest $ 131,549 $ 132,361
========= =========
See notes to financial statements
-6-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP
STATEMENTS OF PARTNERS' (DEFICIT)
Six Months Ended June 30, 1997 and 1996
(Unaudited)
General Limited Partners
Partners ---------------------------
Amount Units Amount
------ ----- ------
Balance, January 1, 1996 ($ 790,336) 3,100 ($1,993,893)
Net loss (882) 0 (87,304)
----------- ----------- -----------
Balance, June 30, 1996 ($ 791,218) 3,100 ($2,081,197)
=========== =========== ===========
Balance, January 1, 1997 ($ 792,969) 3,100 ($2,254,607)
Net income 1,054 0 104,330
----------- ----------- -----------
Balance, June 30, 1997 ($ 791,915) 3,100 ($2,150,277)
=========== =========== ===========
See notes to financial statements
-7-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
Six Months Ended June 30, 1997 and 1996
(Unaudited)
1. GENERAL PARTNER'S DISCLOSURE
----------------------------
In the opinion of the General Partners of Realmark Property Investors
Limited Partnership, all adjustments necessary for the fair presentation
of the Partnership's financial position, results of operations, and
changes in cash flows for the six months ended June 30, 1997 and 1996 have
been made in the financial statements. The financial statements are
unaudited and subject to any year-end adjustments which may be necessary.
2. FORMATION AND OPERATION OF PARTNERSHIP
--------------------------------------
Realmark Property Investors Limited Partnership (the "Partnership"), a
Delaware Limited Partnership, was formed August 28, 1979, to invest in a
diversified portfolio of income-producing real estate.
In March 1981, the Partnership commenced the public offering of units of
limited partnership interest. On December 31, 1981 the offering was
concluded, at which time 3,100 units of limited partnership interest were
outstanding. The General Partners are Realmark Properties, Inc., a
Delaware corporation, the corporate General Partner, and Mr. Joseph M.
Jayson, the individual General Partner. Joseph M. Jayson is the sole
shareholder of J.M. Jayson & Company, Inc. Realmark Properties, Inc. is a
wholly-owned subsidiary of J.M. Jayson & Company, Inc.
Under the Partnership agreement, the General Partners and affiliates can
receive compensation for services rendered and reimbursement for expenses
incurred on behalf of the Partnership. The Partnership agreement provides
for taxable income or loss of the Partnership to be allocated 99% to the
limited partners and 1% to the general partners. Through December 31,
1986, and for 1991 and 1996, taxable income or loss was allocated in
accordance with this provision. For the years 1987 through 1990, 1992,
1993, 1994 and 1995, the Partnership was required to allocate losses in
accordance with Internal Revenue Section 704(b). In general, Section
704(b) may be applicable when Partnership capital is negative and limited
partners are not required to restore negative capital accounts. In such
instances, the IRS code requires that the general partners bear a greater
portion of the economic loss than that which would be allocated pursuant
to the partnership agreement and, therefore, the loss must be reallocated.
For the six month period ended June 30, 1997, Section 704(b) was
applicable.
-8-
<PAGE>
FORMATION AND OPERATION OF PARTNERSHIP (CONTINUED)
--------------------------------------------------
Losses arising from the sale of properties shall be allocated 99% to the
Limited Partners and 1% to the General Partners subject to the revisions
made in the Internal Revenue Code, pursuant to the Tax Reform Act of 1986.
Net proceeds arising from a sale or refinancing shall be distributed first
to the Limited Partners in an amount equivalent to a 7% return on their
average adjusted capital balances, plus an amount equal to their
respective positive capital account balances.
Additional proceeds after property disposition fees shall be allocated to
the Limited Partners in an amount equivalent to 5% of their average
adjusted capital balances and the remainder, if any, in the ratio of 90%
to the Limited Partners and 10% to the General Partners. Income arising
from the sale or refinancing shall be allocated in the same manner as the
proceeds are to be distributed, except that the General Partners are to be
allocated at least 1% of the income.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
------------------------------------------
Cash
----
For purposes of reporting cash flows, cash includes the following items:
cash on hand; cash in checking; and money market savings.
Cash - security deposits
------------------------
Cash - security deposits represents cash on deposit in accordance with the
HUD regulatory agreement for the one property with a HUD mortgage.
Escrow deposits
---------------
Escrow deposits represent cash which is restricted for the payment of
property taxes or for repairs and replacements in accordance with the
mortgage agreement.
Property and depreciation
-------------------------
Depreciation is provided using the straight-line method over the estimated
useful lives of the respective assets. Expenditures for maintenance and
repairs are expensed as incurred, and major renewals and betterments are
capitalized. The Accelerated Cost Recovery System is used to calculate
depreciation expense for tax purposes.
-9-
<PAGE>
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
------------------------------------------ -----------
Minority interest in consolidated joint venture
-----------------------------------------------
The minority interest in a consolidated joint venture is stated at the
amount of capital contributed by the minority investor adjusted for its
share of joint venture losses.
Rental income
-------------
Rental income is recognized under the operating method. The outstanding
leases with respect to rental properties owned are for terms of no more
than one year.
Income (loss) per limited partnership unit
------------------------------------------
The income or loss per limited partnership unit is based on the weighted
average number of limited partnership units outstanding during the period
then ended.
4. ACQUISITION AND DISPOSITION OF RENTAL PROPERTY
----------------------------------------------
In November 1981, the Partnership acquired a 144 unit apartment complex
(Carriage House of Englewood, formerly Gold Key Village Apartments)
located in Englewood, Ohio, for a purchase price of $2,860,754, which
included $191,872 in acquisition fees.
In July 1982 , the Partnership acquired a 99 unit apartment complex
(Clarewood) located in Lafayette, Louisiana, for a purchase price of
$2,428,834, which included $134,992 in acquisition fees.
In July 1982, the Partnership acquired a 155 unit apartment complex
(Gallery) located in Lafayette, Louisiana, for a purchase price of
$3,546,653, which included $197,987 in acquisition fees.
In October 1989, the Partnership sold the Clarewood and Gallery apartments
for a combined price of $4,647,516, which generated a total net gain for
financial statement purposes of $1,209,164.
-10-
<PAGE>
ACQUISITION AND DISPOSITION OF RENTAL PROPERTY (CONTINUED)
----------------------------------------------------------
In July 1996, the Partnership entered into a plan to dispose of the
property, plant and equipment of Carriage House of Englewood with a
carrying amount of $1,191,451. Management has determined that a sale of
the property is in the best interest of the investors. As of June 30,
1997, the contract for the sale of Carriage House of Englewood had been
terminated. The equity provider for the purchaser was unwilling to provide
the equity necessary to close the deal due to the extent of rehab work
needed at the property. A non-refundable deposit on the sale of
$220,000.00 was received and maintained by the registrant.
5. MORTGAGE PAYABLE
----------------
Carriage House of Englewood (formerly Gold Key Village Apartments)
--------------------------- --------------------------------------
On May 5, 1992, the Partnership's first and second mortgages on the Gold
Key apartment complex were refinanced with a 9% U.S. Department of Housing
and Urban Development (HUD) guaranteed mortgage in the amount of
$2,997,800 due June 1, 2027. The mortgage provides for monthly principal
and interest payments of $23,503, plus monthly escrow deposits for real
estate taxes, insurance and repairs and maintenance totaling $11,346. The
balance of the mortgage at June 30, 1997 and 1996 was $2,920,940 and
$2,939,184, respectively. The mortgage is secured by all of the assets of
the Carriage House of Englewood apartment complex.
The mortgage is subject to a HUD regulatory agreement which, among other
things, places restrictions on the uses and handling of cash and restricts
distributions to the property owner to amounts that are considered to be
surplus cash as defined in the agreement.
The maturity of the mortgage payable for each of the next five years and
thereafter is as follows:
Year Amount
---- ------
1997 $ 19,080
1998 20,871
1999 22,829
2000 24,970
2001 27,312
Thereafter 2,815,204
-----------
TOTAL $ 2,930,266
===========
-11-
<PAGE>
6. MINORITY INTEREST OF RELATED PARTY IN CARRIAGE HOUSE OF ENGLEWOOD JOINT
--------------------------------------------------------------------------
VENTURE
-------
On May 5, 1992, the Partnership entered into an agreement to form a joint
venture with Realmark Property Investors Limited Partnership VI-A (RPILP
VI-A). The joint venture was formed for the purpose of operating Carriage
House of Englewood owned by the Partnership. Under the terms of the
original agreement, RPILP VI-A contributed $497,911 with the Partnership
contributing the property net of the first mortgage. On March 1, 1993,
RPILP VI-A contributed an additional $125,239, amending the original joint
venture agreement in the process.
The amended agreement now provides that any income, loss, gain, cash flow,
or sale proceeds be allocated 60.0% to the Partnership and 40.0% to RPILP
VI-A. The net loss from the date of inception has been allocated to the
minority interest in accordance with the terms of the agreement and has
been recorded as a reduction of the capital contribution.
A reconciliation of the minority interest share in the Carriage House of
Englewood Joint Venture is as follows:
Balance, January 1 $ 274,180
Capital contribution -
Allocated loss (37,269)
----------
Balance, June 30, $ 236,911
7. RELATED PARTY TRANSACTIONS
--------------------------
Management fees for Carriage House of Englewood are paid or accrued to an
affiliate of the General Partners. The management agreement provides for
5% of gross monthly rental receipts of the complex to be paid as fees for
administering the operations of the property. These fees totaled $16,081
and $17,400 for the six months ended June 30, 1997 and 1996, respectively.
The general partner is also entitled to receive a Partnership management
fee equal to 9% of net cash flow (as defined in the partnership
agreement), 2% of which is subordinated to the limited partners having
received an annual cash return equal to 7% of their adjusted capital
contributions. No such fee has been paid or accrued by the Partnership for
the six months ended June 30, 1997 and 1996.
Accounts payable - affiliates amounted to $764,931 and $840,683 at June
30, 1997 and 1996, respectively. The payable represents fees due and
advances from the General Partner. Interest charged on accounts payable -
affiliates totaled $40,772 for the six month period ended June 30, 1997.
-12-
<PAGE>
RELATED PARTY TRANSACTIONS (CONTINUED)
-------------------------- -----------
Pursuant to the terms of the Partnership agreement, the corporate general
partner charged the Partnership for reimbursement of certain costs and
expenses incurred by the corporate general partner and its affiliates.
These charges were for the Partnership's allocated share of costs and
expenses such as payroll, travel and communication, costs related to
partnership accounting, and partner's communication and relations.
Computer service charges for the Partnership are paid or accrued to an
affiliate of the General Partners. The fee is based upon the number of
apartment units and totaled $1,580 for the six month periods ended June
30, 1997 and 1996.
The corporate general partner is allowed to collect property disposition
fees upon the sale of acquired properties. This fee is not to exceed the
lesser of 9% of the gross proceeds of the offering applicable to the
property or 50% of normal rates, subordinated to: (1) the payment to the
limited partners of a cumulative annual return (not compounded) equal to
7% of their average adjusted capital balances; (2) the repayment to the
limited partners of a cumulative amount equal to their capital
contributions; and (3) the payment to all partners of an amount equal to
their respective positive capital account balances to the extent such
balances exceed the amounts provided for in the preceding clauses (1) and
(2).
8. INCOME TAXES
------------
No provision has been made for income taxes since the income or loss of
the Partnership is to be included in the tax returns of the individual
partners.
The tax returns of the Partnership are subject to examination by federal
and state taxing authorities. Under federal and state income tax laws,
regulations and rulings, certain types of transactions may be accorded
varying interpretations and, accordingly, reported Partnership amounts
could be changed as a result of any such examination.
-13-
<PAGE>
INCOME TAXES (CONTINUED)
The reconciliation of net income (loss) for the six month periods ended
June 30, 1997 and 1996 as reported in the statements of operations, and as
would be reported for tax purposes respectively, is as follows:
June 30, June 30,
1997 1996
---- ----
Net income (loss)
Statement of operations $ 147,169 $ ( 88,186)
(Add to) deduct from:
Difference in depreciation 17,558 19,548
Difference in amortization - -
Difference in bad debt reserve 14,260 10,760
Tax adjustment - Joint Venture - (2,998)
--------- ----------
Net income (loss) for tax purposes $ 178,987 $ ( 60,876)
The reconciliation of partners' (deficit) at June 30, 1997 and December
31, 1996 as reported in the balance sheets, and as reported for tax
purposes, is as follows:
June 30, December 31,
1997 1996
---- ----
Partners' (Deficit) - balance sheet $ (2,942,192) $ (3,047,576)
Add to (deduct from):
Accumulated difference in
depreciation (942,997) (960,555)
Accumulated amortization 240,000 240,000
Syndication fees 248,000 248,000
Reserve for bad debts 82,813 68,553
Tax Basis Adjustment
- Joint Venture (17,085) (17,085)
Other 1,711 1,711
------------ ------------
Partners' (Deficit) - tax return $ (3,329,750) $ (3,466,952)
-14-
<PAGE>
PART II: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
---------------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
Liquidity and Capital Resources
- -------------------------------
The Partnership continues operating with cash flow shortages due to a decrease
in the total revenue generated. The General Partner meanwhile, continues to
advance funds to the Partnership, although under no obligation to do so. There
is no assurance that the General Partner will continue to do so. The General
Partner has advanced $764,931, as of June 30, 1997, and these funds are payable
on demand.
The Partnership did not make any distributions during the six month periods
ending June 30, 1997 and 1996, nor does it anticipate making any distributions
until the remaining property is sold and all Partnership obligations are
satisfied. The General Partner believes that unless there is a significant
increase in income and a major reduction in expenses, the property could be in
default concerning their mortgages. The General Partner has been corresponding
with the United States Department of Housing and Urban Development and the
mortgagor on the Gold Key property in search of means of obtaining more usable
cash to operate the property with.
The General Partner continues to aggressively seek a buyer for the sole
remaining property in this Partnership as it is felt that the sale of the
property is in the best interests of the limited partners. At this time it is
highly unlikely that the Limited Partners will receive any proceeds from the
sale.
Results of Operations:
- ----------------------
For the quarter ended June 30, 1997, the Partnership's net income was $147,169
or $47.00 per limited partnership unit. Net loss for the quarter ended June 30,
1996, amounted to $23,750 or $7.58 per unit. For the six month period ended June
30, 1997, the net income was $105,384 or $33.65 per limited partnership unit as
compared to a loss of $88,186 or $28.16 per limited partnership unit for the six
month period ended June 30, 1996. The net income for the quarter ended June 30,
1997 was the result of the Partnership recognizing $220,000 in income from a
non-refundable deposit received on the sale of Carriage House of Englewood; this
sale fell through and as a result, the deposit was recognized as income.
Partnership revenue for the quarter ended June 30, 1996 totaled $158,001, which
is a decrease of $20,347 from the quarter ended June 30, 1996. The change
between the two years is mostly attributable to an increase in delinquencies at
Carriage House of Englewood. Partnership revenues for the quarter ended June 30,
1995 were $178,348. Rental income decreased $13,578 between the two quarters.
For the six month period ended June 30, 1997, Partnership revenue totaled
$325,121 as compared to $363,608 for the same period in the previous year.
-15-
<PAGE>
Results of Operations (continued):
- --------------------- ------------
For the three month period ended June 30, 1997, Partnership expenses totaled
$268,101, an increase of just over $39,000 from the quarter ended June 30, 1996.
For the six month period ended June 30, 1997, total expenses remained fairly
constant when compared to the same period in 1996. Increases in repairs and
maintenance expenses due to increased focus by management on the property's
appearance accounted for much of the change in operating expenses. Also, a large
increase in payroll and associated benefits as compared to the previous year
continued as was noted in the first quarter of 1997. Utility costs decreased
over $5,000 between the six months ended June 30, 1997 and June 30, 1996, while
insurance expense and real estate taxes remained almost unchanged from the same
six month period in the previous year. The decrease seen in administrative
expenses was due to a significant decrease in advertising and promotional
expenses; this decrease is primarily due to the cash flow difficulty the
Partnership continues to encounter.
The Partnership is making every effort to control/maintain property operation
and administrative expenses in the immediate future, however additional
expenses, such as cleaning, painting, and carpeting costs related to preparing
units for new tenants, are likely to be incurred in an attempt to improve
occupancy.
The property did, during the second quarter of 1997, secure the release of
escrowed funds from the U.S. Department of Housing and Urban Development for use
in repairing/replacing several roofs. The roof work is expected to be completed
during the third quarter of 1997.
For the six month period ended June 30, 1997, tax basis income amounted to
$178,987 or $57.16 per limited partnership unit compared to a tax loss of
$60,876 or $19.44 per unit for the six month period ended June 30, 1996. The tax
basis income is once again due to the recognition of $220,000 in extraordinary
income resulting from the cancellation of a sales contract on Carriage House of
Englewood (i.e., the funds were received as a non-refundable deposit on such
sale).
-16-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP
-----------------------------------------------
PART II
OTHER INFORMATION
Item 1 - Legal Proceedings
- --------------------------
The Partnership is not a party to, nor are any of the Partnership's properties
subject to any material pending legal proceedings other than ordinary, routine
litigation incidental to the Partnership's business.
Items 2, 3, 4 and 5
- -------------------
Not applicable.
Item 6 - Exhibits and reports on Form 8-K
- -----------------------------------------
Form 8-K was filed August 1, 1997 to report the termination of a sales contract
previously reported on Form 8-K filed in July 1996.
-17-
<PAGE>
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.
REALMARK PROPERTY INVESTORS
LIMITED PARTNERSHIP
By: /s/Joseph M. Jayson August 8, 1997
------------------------------ ------------------------
Joseph M. Jayson, Date
Individual General Partner
Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed by the following persons on behalf of the registrant and in the
capacities and on the dates indicated.
By: REALMARK PROPERTIES, INC.
Corporate General Partner
/s/Joseph M. Jayson August 8, 1997
------------------------------ ------------------------
Joseph M. Jayson, Date
President and Director
/s/Michael J. Colmerauer August 8, 1997
------------------------------ ------------------------
Michael J. Colmerauer Date
Secretary
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP FOR THE
SIX MONTHS ENDED JUNE 30, 1997, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 29,779
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 199,579
<PP&E> 2,977,379
<DEPRECIATION> 1,814,334
<TOTAL-ASSETS> 1,533,910
<CURRENT-LIABILITIES> 1,340,799
<BONDS> 2,920,940
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 1,533,910
<SALES> 0
<TOTAL-REVENUES> 325,121
<CGS> 0
<TOTAL-COSTS> 439,737
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 172,391
<INCOME-PRETAX> (114,616)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 220,000
<CHANGES> 0
<NET-INCOME> 105,384
<EPS-PRIMARY> 33.65
<EPS-DILUTED> 0
</TABLE>
