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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
AMENDMENT NO. 2 TO
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
July 31, 1995
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Date of Report (Date of Earliest Event Reported)
CONTINENTAL MORTGAGE AND EQUITY TRUST
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(Exact Name of Registrant as Specified in its Charter)
California 0-10503 94-2738844
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(State of Incorporation) (Commission (IRS Employer
File No.) Identification No.)
10670 North Central Expressway, Suite 300, Dallas, TX 75231
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(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (214) 692-4700
Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
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This Form 8-K/A amends the Registrant's Current Report on Form 8-K dated July
31, 1995 as amended by a Form 8-K/A dated September 7, 1995 as follows:
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS - pages 5, 9 and 10
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CONTINENTAL MORTGAGE AND EQUITY TRUST
PRO FORMA
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1994
<TABLE>
<CAPTION>
McCallum Glen Other Property
Actual Apartments(1) Acquisition(1) Pro forma
------------- --------------- -------------- ---------------
(dollars in thousands)
<S> <C> <C> <C> <C>
Income
Rentals...................... $ 27,042 $ 1,245 $ 2,772 $ 31,059
Interest..................... 2,699 - - 2,699
Other........................ (479) - - (479)
------------- --------------- -------------- ---------------
29,262 1,245 2,772 33,279
Expenses
Property operations.......... 16,888 676 1,032 18,596
Interest..................... 7,711 362 1,260 9,333
Depreciation................. 3,214 126 444 3,784
Advisory fee to affiliate.... 1,326 - - 1,326
General and administrative... 1,235 - - 1,235
Provision for losses......... 1,429 - - 1,429
------------- --------------- -------------- ---------------
31,803 1,164 2,736 35,703
Income (loss) before gain on
sale of real estate.......... (2,541) 81 36 (2,424)
Gain on sale of real estate... 1,708 - - 1,708
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Net income (loss)............. $ (833) $ 81 $ 36 $ (716)
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Earnings per share
Net (loss)................... $ (.29) $ (.25)
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Shares of beneficial interest
outstanding.................. 2,919,815 2,919,815
============= ===============
</TABLE>
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(1) Assumes acquisition by the Trust on January 1, 1994.
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Independent Auditors' Report
To the Board of Trustees
Continental Mortgage and Equity Trust
We have audited the accompanying statement of revenues and direct operating
expenses of McCallum Glen Apartments for the year ended December 31, 1994.
This statement of revenues and direct operating expenses is the responsibility
of the Property's management. Our responsibility is to express an opinion on
this statement of revenues and direct operating expenses based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the statement of revenues and direct
operating expenses is free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the statement of revenues and direct operating expenses. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall statement of revenues and
direct operating expenses presentation. We believe that our audit provides a
reasonable basis for our opinion.
The accompanying financial statement is prepared for the purpose of complying
with the rules and regulations of the Securities and Exchange Commission (for
inclusion in Form 8-K of Continental Mortgage & Equity Trust) and, as described
in Note 1, is not intended to be a complete presentation of the results of
operations.
In our opinion, the statement of revenues and direct operating expenses
referred to above presents fairly, in all material respects, the revenues and
direct operating expenses of McCallum Glen Apartments for the year ended
December 31, 1994, in conformity with generally accepted accounting principles.
Farmer, Fuqua, Hunt & Munselle, P.C.
Dallas, Texas
August 31, 1995
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MCCALLUM GLEN APARTMENTS
STATEMENT OF REVENUES
AND DIRECT OPERATING EXPENSES
YEAR ENDED DECEMBER 31, 1994
<TABLE>
<S> <C>
REVENUES
Rental revenues $ 1,204,177
Other 40,730
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Total Revenues 1,244,907
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DIRECT OPERATING EXPENSES
Administration 21,392
Insurance 27,793
Management Fees 62,579
Marketing 22,960
Payroll & benefits 184,083
Property Taxes 163,161
Repairs & Maintenance 90,773
Utilities 103,062
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Direct Operating Expenses 675,803
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REVENUES IN EXCESS OF DIRECT OPERATING EXPENSES $ 569,104
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</TABLE>
The accompanying notes are an integral part of this statement.
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