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
March 31, 1998 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 March 31, 1998, 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 -
March 31, 1998 and December 31, 1997 3
Statements of Operations -
Three Months Ended March 31, 1998 and 1997 4
Statements of Cash Flows -
Three Months Ended March 31, 1998 and 1997 5
Statements of Partners' (Deficit) -
Three Months Ended March 31, 1998 6
Notes to Financial Statements 7 - 13
PART II: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
- ------- -----------------------------------------------------------
AND RESULTS OF OPERATIONS 14 - 15
-------------------------
-2-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP
-----------------------------------------------
BALANCE SHEETS
--------------
March 31, 1998 and December 31, 1997
------------------------------------
(Unaudited)
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
---- ----
<S> <C> <C>
ASSETS
- ------
Property, at cost:
Land $ 182,500 $ 182,500
Land improvements 185,000 185,000
Buildings 2,475,133 2,475,133
Furniture and fixtures 164,141 164,141
------------------ ------------------
3,006,774 3,006,774
Less accumulated depreciation 1,753,995 1,753,995
------------------ ------------------
Property, net 1,252,779 1,252,779
Cash 9,342 -
Cash - security deposits 20,317 30,154
Escrow deposits 51,178 155,194
Prepaid expenses 8,484 15,110
Mortgage costs, net of accumulated
amortization of $33,971 and $32,536 166,980 168,415
------------------ ------------------
Total Assets $ 1,509,080 $ 1,621,652
================== ==================
LIABILITIES AND PARTNERS' (DEFICIT)
- ----------------------------------
Liabilities:
Cash overdraft $ - $ 320,993
Mortgages payable 2,906,142 2,914,486
Accounts payable and accrued expenses 209,687 232,164
Accounts payable - affiliates 1,178,601 780,706
Accrued interest 21,796 65,539
Security deposits and prepaid rent 67,025 42,969
------------------ ------------------
Total Liabilities 4,383,251 4,356,857
------------------ ------------------
Minority interest in consolidated
joint venture 117,011 172,597
------------------ ------------------
Partners' Deficit
General partners (969,227) (968,393)
Limited partners (2,021,955) (1,939,409)
------------------ ------------------
Total Partners' Deficit (2,991,182) (2,907,802)
------------------ ------------------
Total Liabilities and Partners' (Deficit) $ 1,509,080 $ 1,621,652
================== ==================
</TABLE>
See notes to financial statements
-3-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP
-----------------------------------------------
STATEMENTS OF OPERATIONS
------------------------
Three Months Ended March 31, 1998 and 1997
------------------------------------------
(Unaudited)
<TABLE>
<CAPTION>
Three Months Three Months
Ended Ended
March 31, March 31,
1998 1997
---- ----
<S> <C> <C>
Income:
Rental $ 144,562 $ 156,659
Interest and other income 7,513 10,461
------------------ ------------------
Total income 152,075 167,120
------------------ ------------------
Expenses:
Property operations 151,060 86,091
Interest:
Paid to affiliates 26,575 20,190
Other 65,426 65,862
Depreciation and amortization
Administrative:
Paid to affiliates 29,651 15,918
Other 16,893 11,787
------------------ ------------------
Total expenses 291,041 231,453
------------------ ------------------
Loss before allocation
to minority interest (138,966) (64,333)
Loss allocated to minority interest 55,586 22,548
------------------ ------------------
Net loss $ (83,380) $ (41,785)
================== ==================
Loss per limited partnership unit $ (26.63) $ (13.34)
================== ==================
Distributions per limited partnership unit
$ - $ -
================== ==================
Weighted average number
of limited partnership units
outstanding 3,100 3,100
================== ==================
</TABLE>
See notes to financial statements
-4-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP
-----------------------------------------------
STATEMENTS OF CASH FLOWS
------------------------
Three Months Ended March 31, 1998 and 1997
------------------------------------------
(Unaudited)
<TABLE>
<CAPTION>
Three Months Three Months
Ended Ended
March 31, March 31,
1998 1997
---- ----
<S> <C> <C>
Cash flow from operating activities:
Net loss $ (83,380) $ (41,785)
Adjustments to reconcile net loss to net cash
(used in) operating activities:
Depreciation and amortization 1,436 31,605
Minority interest share of net loss (55,586) (22,548)
Changes in operating assets and liabilities:
Cash - security deposits 9,837 (185)
Escrow deposits 104,016 (33,177)
Prepaid expenses 6,626 7,783
Accounts payable and accrued expenses (22,477) (16,581)
Accrued interest (43,743) 1,379
Security deposits and prepaid rent 24,056 (3,729)
------------------ ------------------
Net cash (used in) operating activities (59,215) (77,238)
------------------ ------------------
Cash flow from investing activities:
Property additions and net cash
provided by investing activities - -
------------------ ------------------
Cash flows from financing activities:
Cash overdraft - 85,909
Accounts payable - affiliates 397,894 (4,060)
Principal payments on mortgage(s) (8,344) (4,611)
Mortgage costs - -
------------------ ------------------
Net cash provided by financing activities 389,550 77,238
------------------ ------------------
Increase (decrease) in cash 330,335 -
Cash - beginning of period (320,993) -
------------------ ------------------
Cash - end of period $ 9,342 $ -
================== ==================
Supplemental Disclosure of Cash Flow
Information:
Cash paid for interest $ 65,426 $ 84,673
================== ==================
</TABLE>
See notes to financial statements
-5-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP
-----------------------------------------------
STATEMENTS OF PARTNERS' (DEFICIT)
---------------------------------
Three Months Ended March 31, 1998
---------------------------------
(Unaudited)
-----------
<TABLE>
<CAPTION>
General Limited Partners
Partners
Amount Units Amount
------ ----- ------
<S> <C> <C> <C>
Balance, January 1, 1998 $ (968,393) 3,100 $ (1,939,409)
Net loss
(834) - (82,546)
------------------ --------------- -----------------
Balance, March 31, 1998 $ (969,227) 3,100 $ (2,021,955)
================== =============== =================
</TABLE>
See notes to financial statements
-6-
<PAGE>
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP
-----------------------------------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
Three Months Ended March 31, 1998 and 1997
------------------------------------------
(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 three months ended March
31, 1998 and 1997 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
--------------------------------------
RealmarkProperty 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 three
month period ended March 31, 1998, Section 704(b) was not applicable.
-7-
<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
------------------------------------------
Use of Estimates
----------------
The preparation of financial statements in conformity with generally
accepted accounting priniples requires management to make estimates and
assumptions that affect the reported amounts of assests and liabilities
and disclosure of contingent assets an liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
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.
-8-
<PAGE>
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
-----------------------------------------------------
Mortgage Costs
--------------
Mortgage costs incurred in obtaining property mortgage financing hace
been deferred and are being amortized over the term of the mortgage
using the straight line method.
Property and depreciation
-------------------------
Depreciation is provided using the straight-line method over the
estimated useful lives of the respective assets and totaled $70,290 and
$118,702 for the years ended December 31, 1996 and 1995, respectively.
No depreciation was recorded in the year ended December 31, 1997. The
estimated useful lives of the Partnership's assets range from 5 to 25
years. 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.
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.
Accrued Rent Receivable
-----------------------
Due to the nature of accrued rent receivable, all such receivables are
fully reserved for as of March 31, 1998 and 1997.
-9-
<PAGE>
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.
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.
In connection with the pending sale, the Partnership has received
$220,000 in non-refundable deposits, of which $47,200 is represented by
a note receivable from the buyer.
5. MORTGAGES PAYABLE
-----------------
Carriage House of Englewood (formerly Gold Key Village Apartments)
-----------------------------------------------------------------
On May 5, 1992, the Partnership's first and second mortgages on
Carriage House of Englewood 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 $8,135. The balance of the mortgage at March 31, 1998
$2,906,142. The mortgage is secured by all of the assets of Carriage
House of Englewood.
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.
-10-
<PAGE>
MORTGAGES PAYABLE (CONTINUED)
----------------------------
The maturity of the mortgage payable for each of the next five years
and thereafter is as follows:
Year Amount
---- ------
1998 20,871
1999 22,829
2000 24,970
2001 27,312
2002 29,901
Thereafter 2,780,259
-----------
TOTAL $ 2,906,142
===========
6. FAIR VALUE OF FINANCIAL INSTRUMENTS
-----------------------------------
Statement of Financial Accounting Standards No. 107 requires dislosure
about fair value of certain financial instruments. The fair value of
cash, accounts receivable, accounts receivable - affiliates, accounts
payable - affiliates, accounts payable, accrued expenses and deposit
liabilities approximate the carrying value due to the short-term mature
of these instruments.
7. 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. Carriage House of Englewood incurred a net loss of
$83,380 for the quarter ended March 31, 1998.
-11-
<PAGE>
MINORITY INTEREST OF RELATED PARTY IN CARRIAGE HOUSE OF ENGLEWOOD JOINT
-----------------------------------------------------------------------
VENTURE (CONTINUED)
------------------
A reconciliation of the minority interest share in Carriage House of
Englewood joint venture is as follows:
Balance, January 1 $ 172,597
Capital contribution -
Allocated loss (55,586)
---------
Balance, March 31 $ 117,011
=========
8. 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 $8700 for the three months ended March 31, 1998 and 1997,
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 three months ended March 31, 1998 and 1997.
Accountspayable - affiliates amounted to $1,178,601 at March 31, 1998.
The payable represents fees due and advances from the General Partner.
Interest charged on accounts payable - affiliates totaled $26,575 and
$20,190 for the three month period ended March 31, 1998 and 1997,
respectively.
Pursuantto 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.
Computerservice 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 $758 for the three month periods ended
March 31, 1998 and 1997.
-12-
<PAGE>
RELATED PARTY TRANSACTIONS (CONTINUED)
-------------------------------------
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).
9. 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.
The reconciliation of net loss for the three month periods ended March
31, 1998 and 1997 as reported in the statements of operations, and as
would be reported for tax purposes respectively, is as follows:
March 31, March 31,
1998 1997
---- ----
Net loss -
Statement of operations $ (86,672) $ (41,785)
(Add to) deduct from:
Difference in depreciation - 8,779
Difference in amortization 1,436 -
Difference in bad debt reserve - 7,130
Tax adjustment - Joint Venture - -
------------ -------------
Net loss for tax purposes $ (85,236) $ (25,876)
============ =============
-13-
<PAGE>
INCOME TAXES (CONTINUED)
-----------------------
The reconciliation of partners' (deficit) at March 31, 1998 and
December 31, 1997 as reported in the balance sheets, and as reported
for tax purposes, is as follows:
March 31, December 31,
1998 1997
---- ----
Partners' (Deficit) - balance sheet $ (3,292,086) $ (3,089,361)
Add to (deduct from):
Accumulated difference in
depreciation (951,776) ( 951,776)
Accumulated amortization 241,436 240,000
Syndication fees 248,000 248,000
Reserve for bad debts 75,683 75,683
Tax Basis Adjustment
- Joint Venture (17,085) (17,085)
Other 1,711 1,711
-------------- ---------------
Partners' (Deficit) - tax return $ (3,694,117) $ (3,492,828)
============== ===============
- 14 -
<PAGE>
PART II: MANAGEMENT'S DISCUSSION AND ANALYSIS OF
---------------------------------------
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
---------------------------------------------
Liquidity and Capital Resources
-------------------------------
The Partnership continued to struggle financially during the first
quarter of 1998 with declining receipts due to lower occupancy and
poorer cash collections. The partnership is still operating with cash
flow shortages, with the General Partner advancing funds to the
Partnership to cover shortfalls, 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 $1,178,601 as of March 31, 1998, all
of which is payable on demand.
The Partnership did not make any distributions during the three month
periods ending March 31, 1998 and 1997, nor does it anticipate making
any distributions in the near future due to the considerable financial
obligations of the Partnership which must be attended to first. 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 of its mortgage. If the General Partner ceases to advance funds
to the Partnership to cover any negative cash flow, the Partnership
could lose the property in a foreclosure. At this time it is highly
unlikely that the Limited Partners will receive any proceeds from the
sale. The General Partner continues to market Carriage House of
Englewood, the Partnership's one remaining property, to other buyers
since the pending sale is subject to a number of contingencies.
Management continues to communicate and work with the United States
Department of Housing and Urban Development (HUD) for the release of
escrowed funds to be used to do needed capital improvements to the
property, such as roofing repairs and interior painting. Thus far, HUD
and the mortgagor have assisted the Partnership with its cash needs
through the release of escrowed funds, although they are under no
obligation to do so and there is no guarantee that they will continue
to do so.
Results of Operations:
---------------------
For the quarter ended March 31, 1998, the Partnership's net loss was
$83,380 or $26.63 per limited partnership unit. Net loss for the
quarter ended March 31, 1997, amounted to $41,785 or $13.34 per unit.
Partnership revenue for the quarter ended March 31, 1998 totaled
$152,075 which is a decrease of over $15,045 from the quarter ended
March 31, 1997. The net change between the two periods is a direct
result of a decrease in occupancy, increased concessions given to lease
vacant units, and an increase in delinquencies at Carriage House of
Englewood. Partnership revenues for the period ended March 31, 1997
were $167,120. A decrease in rental income was responsible for the
entire decrease in total revenues between the quarters ended March 31,
1998 and 1997; such income decreased from $156,659 in 1997 to $144,562
during the same quarter in 1998. The increase in other income can be
attributed to an increase in security deposit forfeitures.
-15-
<PAGE>
Results of Operations (continued):
----------------------------------
For the three month period ended March 31, 1998, Partnership expenses
totaled $151,060, an increase of $64,969 from the quarter ended March
31, 1997. Increases in payroll and related expenses and repairs and
maintenance resulting in an increase in total property operation
expenses between the quarters ended March 31, 1998 and 1997. Insurance
expense and real estate taxes remained fairly constant between the two
quarters. Interest expense, depreciation and amortization fell for the
two quarters.
The Partnership is expecting the property operation expenses to
increase slightly over the next several months as management continues
to put emphasis on improving the property's appearance in order to
lease up the vacant units. As the condition of the property improves,
operations expenses should level out. Management is continuing to make
every effort to reduce and/or control expenses in coming quarters.
Administrative charges are also expected to level off as the property's
performance improves; expenses that are indirectly tied to performance
such as advertising and legal fees (i.e. collection fees) will decline
as vacancies decrease and collections improve.
For the three month period March 31, 1998, the tax basis loss was
$85,236 or $27.50 per limited partnership unit compared to a tax loss
of $25,876 or $8.26 per unit for the three month period ended March 31,
1997.
- 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
- -----------------------------------------
None.
-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 May 20, 1998
----------------------------- -----------------------
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 May 20, 1998
------------------------------ ------------------------
Joseph M. Jayson, Date
President and Director
/s/ Michael J. Colmerauer May 20, 1998
------------------------------ ------------------------
Michael J. Colmerauer Date
Secretary
-18-
<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 three months ended March 31, 1998, and is qualified in its entirety
by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 29,659
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 89,321
<PP&E> 3,006,774
<DEPRECIATION> 1,753,995
<TOTAL-ASSETS> 1,509,080
<CURRENT-LIABILITIES> 1,477,109
<BONDS> 2,906,142
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 1,509,080
<SALES> 0
<TOTAL-REVENUES> 152,075
<CGS> 0
<TOTAL-COSTS> 235,455
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 92,001
<INCOME-PRETAX> (83,380)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (83,380)
<EPS-PRIMARY> (26.63)
<EPS-DILUTED> 0
</TABLE>
