UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended June 30, 1995
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from to
Commission file number 2-68727
Krupp Associates 1980-1
Massachusetts 04-2708956
(State or other jurisdiction of (IRS employer
incorporation or organization) identification no.)
470 Atlantic Avenue, Boston, Massachusetts 02210
(Address of principal executive offices) (Zip Code)
(617) 423-2233
(Registrant's telephone number, including area code)
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
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
KRUPP ASSOCIATES 1980-1
BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
June 30, December 31,
1995 1994
<S> <C> <C>
Multi-family apartment complex, net of
accumulated depreciation of $2,452,560
and $2,365,138, respectively $ 2,162,267 $2,218,305
Cash and cash equivalent 108,281 44,832
Cash restricted for tenant security deposits 39,187 41,529
Escrow for property replacements 52,313 52,444
Prepaid expenses and other assets 70,344 64,360
Deferred expenses, net of accumulated
amortization of $31,071 and $28,976,
respectively 115,554 117,649
Total assets $ 2,547,946 $2,539,119
LIABILITIES AND PARTNERS' DEFICIT
Mortgage note payable $ 2,238,143 $2,244,913
Notes payable 1,257,385 1,257,385
Accounts payable 163,200 149,866
Accrued expenses and other liabilities 218,621 227,927
Accrued interest due to an affiliate (Note 2) 456,639 394,046
Total liabilities 4,333,988 4,274,137
Partners' deficit (Note 3) (1,786,042) (1,735,018)
Total liabilities and partners' deficit $ 2,547,946 $2,539,119
</TABLE>
The accompanying notes are an integral
part of the financial statements.
<PAGE>
KRUPP ASSOCIATES 1980-1
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
For the Three Months For the Six Months
Ended June 30, Ended June 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Revenue:
Rental $259,133 $241,769 $509,972 $481,609
Other income 536 179 728 3,108
Total revenue 259,669 241,948 510,700 484,717
Expenses:
Operating 83,189 87,544 178,980 190,431
Maintenance 18,103 25,754 30,696 37,010
Real estate taxes 23,679 34,576 58,713 69,815
Depreciation and amortization 45,487 43,873 89,517 86,375
General and administrative 13,656 3,918 17,826 8,211
Interest (Note 2) 93,392 89,968 185,992 171,211
Total expenses 277,506 285,633 561,724 563,053
Net loss $(17,837) $(43,685) $(51,024) $(78,336)
Allocation of net loss (Note 3):
Per Unit of Class A Limited
Partnership Interest
(4,000 Units) $ (4.01) $ (9.83) $ (11.48) $ (17.63)
Original Limited Partner $ (1,605) $ (3,931) $ (4,592) $ (7,050)
General Partners $ (178) $ (436) $ (510) $ (783)
</TABLE>
The accompanying notes are an integral
part of the financial statements.
<PAGE>
KRUPP ASSOCIATES 1980-1
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
For the Six Months
Ended June 30,
1995 1994
<S> <C> <C>
Operating activities:
Net loss $ (51,024) $(78,336)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization 89,517 86,375
Decrease(increase) in cash restricted for
tenant security deposits 2,342 (345)
Increase in prepaid expenses and other
assets (5,984) (54,224)
Increase in accounts payable 13,334 8,993
Increase (decrease) in accrued expenses
and other liabilities (9,306) 73,626
Increase in due to an affiliate 62,593 47,178
Net cash provided by operating
activities 101,472 83,267
Investing activities:
Additions to fixed assets (31,384) (37,024)
Net decrease (increase) in escrow for
property replacements 131 (9,957)
Net cash used in investing activities (31,253) (46,981)
Financing activity:
Principal payments on mortgage note payable (6,770) (6,083)
Net increase in cash and cash equivalent 63,449 30,203
Cash and cash equivalent, beginning of period 44,832 5,044
Cash and cash equivalent, end of period $ 108,281 $ 35,247
</TABLE>
The accompanying notes are an integral
part of the financial statements.
<PAGE>
KRUPP ASSOCIATES 1980-1
NOTES TO FINANCIAL STATEMENTS
(1) Accounting Policies
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted in this report on
Form 10-Q pursuant to the Rules and Regulations of the Securities and
Exchange Commission. In the opinion of the General Partners of Krupp
Associates 1980-1 (the "Partnership"), the disclosures contained in this
report are adequate to make the information presented not misleading.
See Notes to Financial Statements included in the Partnership's Annual
Report on Form 10-K for the year ended December 31, 1994 for additional
information relevant to significant accounting policies followed by the
Partnership.
In the opinion of the General Partners of the Partnership, the
accompanying unaudited financial statements reflect all adjustments
(consisting of only normal recurring accruals) necessary to present
fairly the Partnership's financial position as of June 30, 1995, its
results of operations for the three and six months ended June 30, 1995
and 1994, and its cash flows for the six months ended June 30, 1995 and
1994. Certain prior year balances have been reclassified to conform with
current period financial statement presentation.
The results of operations for the three and six months ended June 30,
1995 are not necessarily indicative of the results which may be expected
for the full year. See Management's Discussion and Analysis of Financial
Condition and Results of Operations included in this report.
(2) Related Party Transactions
Interest on notes payable to the General Partner and its affiliates was
$62,678 for the six months ended June 1995 and $31,785 for the three
months ended June 1995, as compared to $47,178 for the six months ended
June 1994 and $25,174 for the three months ended June 1994.
(3) Summary of Changes in Partners' Deficit
A summary of changes in Partners' Deficit for the six months ended June
30, 1995 is as follows:
<TABLE>
<CAPTION>
Class A Original Total
General Limited Limited Partners'
Partners Partners Partner Deficit
<C> <C> <C> <C> <C>
Balance at
December 31, 1994 $(1,144,880) $(163,523) $(426,615) $(1,735,018)
Net loss (510) (45,922) (4,592) (51,024)
Balance at
June 30, 1995 $(1,145,390) $(209,445) $(431,207) $(1,786,042)
</TABLE>
<PAGE>
KRUPP ASSOCIATES 1980-1
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Liquidity and Capital Resources
The Partnership's ability to generate cash adequate to meet its needs is
dependent primarily upon the successful operation of Riverside Apartments.
Such ability is also dependent upon the future availability of short-term
borrowings and upon the potential refinancing or sale of the asset. These
sources of liquidity could be used by the Partnership for payment of expenses
related to real estate operations, debt service and expenses. Cash Flow and
Capital Transaction Proceeds, if any, as calculated under Section 8.2(a)
("Cash Flow") and 8.3(a) of the Partnership Agreement would then be available
for distribution to the Partners. The Partnership has discontinued
distributions due to insufficient operating cash flow.
The Partnership has experienced cash flow deficiencies for several years and
currently has very limited liquidity. Expenditures are being monitored
closely and capital improvements are made on an as-needed basis. To date, the
General Partners have been able to arrange financing through borrowings, from
an affiliate of the General Partners, to cover a substantial portion of these
cash flow deficiencies. Also, one of the General Partners, The Krupp Company
Limited Partnership ("The Krupp Company"), contributed an additional $100,000
to the Partnership during 1991. In January 1993, The Krupp Company loaned an
additional $135,000 to the Partnership in the form of a demand note to payoff
a demand note from an unaffiliated bank. In addition, the affiliate lender
has been willing to defer interest payments on the borrowings since late 1990.
Furthermore, the General Partners, through annual negotiations, have continued
to arrange for the waiver of property management fees and expense
reimbursements payable to the management agent, also an affiliate of the
General Partners.
The General Partners anticipate operating deficits to continue and cannot
guarantee that they will be able to take actions that will cover any future
deficits. If the property is unable to generate funds sufficient to cover
these deficits, the Partnership could default on its mortgage payments and
become subject to foreclosure proceedings. However, the Partnership is
current on its mortgage payments. In the past several years, management has
tried several times to market the property for sale but has been unsuccessful
in generating interest because of the limited demand for product in this area.
However, continued efforts will be made to sell the property in the future and
to retire all existing debts.
Cash Flow
Shown below is the calculation of Cash Flow for the six months ended June
30, 1995.
<TABLE>
<CAPTION>
Rounded to $1,000
<S> <C>
Net loss for tax purposes $(52,000)
Items not requiring (requiring) the use of
operating funds:
Tax basis depreciation and amortization 90,000
Principal payments on mortgage (7,000)
Expenditures for capital improvements (31,000)
Cash Flow $ -
</TABLE>
Continued
<PAGE>
KRUPP ASSOCIATES 1980-1
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS - Continued
Operations
For the three and six months ended June 30, 1995, as compared to the same
period in 1994, Riverside Apartments experienced an increase in revenue
attributable to rental rate increases established throughout the first half of
the year.
During the first and second quarters of 1995 as compared to 1994, total
expenses have remained relatively stable with the exception of operating and
interest expense. Operating expense decreased primarily as a result of a
reduction in insurance expense due to a favorable claim history. Interest
expense increased as a result of the rise in prime rate from approximately 6%
to 9% from the first half of 1994 to the first half of 1995, respectively.
<PAGE>
KRUPP ASSOCIATES 1980-1
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
Response: None
Item 2. Changes in Securities
Response: None
Item 3. Defaults upon Senior Securities
Response: None
Item 4. Submission of Matters to a Vote of Security Holders
Response: None
Item 5. Other Information
Response: None
Item 6. Exhibits and Reports on Form 8-K
Response: None
<PAGE>
SIGNATURE
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.
Krupp Associates 1980-1
(Registrant)
BY: /s/Marianne Pritchard
Marianne Pritchard
Treasurer and Chief Accounting
Officer of The Krupp Corporation,
a General Partner.
DATE: August 4, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the 1980-1
financial statement for the quarter ended June 30, 1995 and is qualified in its
entirety by reference to such financial statements. This is the first time we
have electrically filed this fund with edgar.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 108,281
<SECURITIES> 0
<RECEIVABLES> 3,803
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 158,041
<PP&E> 4,761,452<F1>
<DEPRECIATION> (2,483,631)<F2>
<TOTAL-ASSETS> 2,547,946
<CURRENT-LIABILITIES> 838,460
<BONDS> 3,495,528<F3>
<COMMON> (1,786,042)<F4>
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 2,547,946
<SALES> 510,700<F5>
<TOTAL-REVENUES> 510,700
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 375,732<F6>
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 185,992
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (51,024)
<EPS-PRIMARY> 0<F7>
<EPS-DILUTED> 0<F7>
<FN>
<F1>Includes Multi-family complex of $4,614,827 and deferred expenses of $146,625.
<F2>Includes depreciation of $2,452,560 and amortization of deferred expenses of
$31,071.
<F3>Represents mortgage notes payable of $2,238,143 and notes to an affiliated
party of $1,257,385.
<F4>Deficit of general partners (1,145,390) and limited partners of (640,652).
<F5>Includes all revenue of the Partnership.
<F6>Includes operating expenses of $227,502, real estate tax expense of $58,713,
and depreication & amortization of $89,517.
<F7>Net loss allocated $(510) to the General Partners and $(50,514) to the limited
partners average net loss is $(11.48) per unit for 4,000 units outstanding.
</FN>
</TABLE>
