SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
**********************************************************************
Date of Report (Date of earliest event reported): April 10, 1996
Merry Land & Investment Company, Inc.
(Exact name of registrant as specified in its charter)
Georgia 001-11081
(State or other jurisdiction of incorporation) (Commission File Number)
58-0961876
(I.R.S. Employer I.D. Number)
624 Ellis Street, Augusta, Georgia 30901
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 706/722-6756
n/a
------------------------------------------------------------
(Former name or former address, if changed since last report)
**********************************************************************
Filed: August 2, 1996
<PAGE>
ITEM 5. OTHER EVENTS. Merry Land & Investment Company, Inc. (the
"Company") has previously reported the acquisition of the Mariner Club and
Sedona Springs Apartments. Financial statements with respect to these
properties have been prepared and are being filed herewith.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
EXHIBITS.
Statements of excess of revenues over specific operating expenses
with respect to the Mariner Club and Sedona Springs Apartments are attached
hereto as Exhibits 99.1 and 99.2.
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
Merry Land & Investment Company,
Inc. (Registrant)
By: /s/
------------------------
Dorrie E. Green
As Its Vice President
<PAGE>
THE OPERATIONS OF THE SEDONA SPRINGS PROPERTY
STATEMENTS OF THE EXCESS OF OPERATING REVENUES OVER
SPECIFIC OPERATING EXPENSES FOR THE THREE MONTHS ENDED
MARCH 31,1996 (UNAUDITED) AND FOR THE YEAR ENDED
DECEMBER 31, 1995
TOGETHER WITH AUDITOR'S REPORT
<PAGE>
ARTHUR ANDERSEN LLP
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Shareholders and
Board of Directors of
Merry Land & Investment Company, Inc.:
We have audited the accompanying statement of excess of revenues over
specific operating expenses of THE OPERATIONS OF THE SEDONA SPRINGS
PROPERTY for the year ended December 31, 1995. This financial statement is
the responsibility of management. Our responsibility is to express an
opinion on this financial statement 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 excess of
revenue over specific 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 excess of revenues over
specific operating expenses. An audit also includes assessing the
accounting principles used and significant estimates made by management as
well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
As described in Note 2, the financial statement excludes certain expenses
that would not be comparable with those resulting from the operations of
the property after acquisition by Merry Land & Investment Company, Inc. The
accompanying financial statement was prepared for the purpose of complying
with the rules and regulations of the Securities and Exchange Commission
and is not intended to be a complete presentation of the property's revenue
and expenses.
In our opinion, the statement of excess of revenues over specific operating
expenses referred to above presents fairly, in all material respects, the
excess of revenues over specific operating expenses (exclusive of expenses
described in Note 2) of THE OPERATIONS OF THE SEDONA SPRINGS PROPERTY for
the year ended December 31,1995 in conformity with generally accepted
accounting principles.
Arthur Andersen LLP
Atlanta, Georgia
June 22, 1996
<PAGE>
THE OPERATIONS OF THE SEDONA SPRINGS PROPERTY
STATEMENTS OF EXCESS OF REVENUES OVER SPECIFIC OPERATING
EXPENSES FOR THE THREE MONTHS ENDED MARCH 31, 1996 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
1996 1995
---------- ----------
(Unaudited)
<S> <C> <C>
REVENUES:
Rents (Note 1) $764,045 $996,859
Other Income 28,032 73,269
---------- ----------
Total revenues 792,077 1,070,128
---------- ----------
SPECIFIC OPERATING EXPENSES (Note 2):
Real estate taxes 78,061 213,925
Personnel 144,168 183,654
Utilities 52,643 165,255
General and administrative 35,771 61,500
Repairs, maintenance, and contract services 30,616 47,618
Marketing 5,395 22,282
Property insurance 11,880 8,342
---------- ----------
358,534 702,576
---------- ----------
EXCESS OF REVENUES OVER SPECIFIC
OPERATING EXPENSES $433,543 $367,552
========== ==========
</TABLE>
The accompanying notes are an integral part of these statements.
<PAGE>
THE OPERATIONS OF SEDONA SPRINGS PROPERTY
NOTES TO THE STATEMENTS OF EXCESS OF REVENUES
OVER SPECIFIC OPERATING EXPENSES
FOR THE THREE MONTHS ENDED MARCH 31, 1996 (UNAUDITED)
AND FOR THE YEAR ENDED DECEMBER 31, 1995
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
On April 10, 1996, Merry Land & Investment Company, Inc. ("Merry
Land") purchased all of the partnership interests in Embrey Oakwell
Family Ltd. for $27.4 million cash, representing ownership of the 396
unit apartment complex located in Austin, Texas. Construction of the
property commenced in 1994, and the first unit was leased in May 1995.
Rental Income
Rents from leases are accounted for ratably over the term of each
lease which is generally for a period of twelve months or less.
2. BASIS OF ACCOUNTING
The accompanying statements of excess of revenues over specific
operating expenses are presented on the accrual basis. The statements
have been prepared in accordance with the applicable rules and
regulations of the Securities and Exchange Commission for real estate
properties acquired. Accordingly, the statements exclude certain
historical expenses not comparable to the operations of the property
after acquisition by Merry Land, such as depreciation, interest and
management fees.
Merry Land has elected to be taxed as a real estate investment trust
("REIT") under the Internal Revenue Code and intends to maintain its
qualification as a REIT in the future. Accordingly, no provision for
federal or state income taxes is required.
<PAGE>
THE OPERATIONS OF THE MARINER CLUB PROPERTY
STATEMENTS OF THE EXCESS OF OPERATING REVENUES OVER
SPECIFIC OPERATING EXPENSES FOR THE THREE MONTHS ENDED
MARCH 31,1996 (UNAUDITED) AND FOR THE YEAR ENDED
DECEMBER 31, 1995
TOGETHER WITH AUDITOR'S REPORT
<PAGE>
ARTHUR ANDERSEN LLP
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Shareholders and
Board of Directors of
Merry Land & Investment Company, Inc.:
We have audited the accompanying statement of excess of revenues over
specific operating expenses of THE OPERATIONS OF THE MARINER CLUB PROPERTY
for the year ended December 31, 1995. This financial statement is the
responsibility of management. Our responsibility is to express an opinion
on this financial statement 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 excess of
revenue over specific 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 excess of revenues over
specific operating expenses. An audit also includes assessing the
accounting principles used and significant estimates made by management as
well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
As described in Note 2, the financial statement excludes certain expenses
that would not be comparable with those resulting from the operations of
the property after acquisition by Merry Land & Investment Company, Inc. The
accompanying financial statement was prepared for the purpose of complying
with the rules and regulations of the Securities and Exchange Commission
and is not intended to be a complete presentation of the property's revenue
and expenses.
In our opinion, the statement of excess of revenues over specific operating
expenses referred to above presents fairly, in all material respects, the
excess of revenues over specific operating expenses (exclusive of expenses
described in Note 2) of THE OPERATIONS OF THE MARINER CLUB PROPERTY for the
year ended December 31,1995 in conformity with generally accepted
accounting principles.
Arthur Andersen LLP
Atlanta, Georgia
June 22, 1996
<PAGE>
THE OPERATIONS
OF THE MARINER CLUB PROPERTY
STATEMENTS OF EXCESS OF REVENUES OVER SPECIFIC OPERATING
EXPENSES FOR THE THREE MONTHS ENDED MARCH 31,1996 (UNAUDITED)
AND THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
1996 1995
---------- ----------
(Unaudited)
<S> <C> <C>
REVENUES:
Rents (Note 1) $692,437 $2,811,167
Other Income 20,920 81,434
---------- ----------
Total revenues 713,357 2,892,601
---------- ----------
SPECIFIC OPERATING EXPENSES (Note 2):
Real estate taxes 81,249 286,433
Personnel 62,012 225,534
Utilities 43,544 180,220
General and administrative 35,805 153,562
Repairs, maintenance, and contract services 47,371 206,212
Marketing 6,873 34,175
Property insurance 7,600 33,766
---------- ----------
284,454 1,119,902
---------- ----------
EXCESS OF REVENUES OVER SPECIFIC
OPERATING EXPENSES $428,903 $1,772,699
========== ==========
</TABLE>
The accompanying notes are an integral part of these statements.
<PAGE>
THE OPERATIONS OF THE MARINER CLUB PROPERTY
NOTES TO THE STATEMENTS OF EXCESS OF REVENUES
OVER SPECIFIC OPERATING EXPENSES
FOR THE THREE MONTHS ENDED MARCH 31, 1996 (UNAUDITED)
AND FOR THE YEAR ENDED DECEMBER 31,1995
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Description of Properties
-------------------------
On April 25, 1996, Merry Land & Investment Company, Inc. ("Merry
Land") purchased the 304 unit apartment complex located in Hollywood,
Florida from Southwest Realty Acquisition Trust for $8.4 million cash
and $9.6 million assumption of mortgage.
Rental Income
-------------
Rents from leases are accounted for ratably over the term of each
lease which is generally for a period of 12 months or less.
2. BASIS OF ACCOUNTING
The accompanying statements of excess of revenues over specific
operating expenses are presented on the accrual basis. The statements
have been prepared in accordance with the applicable rules and
regulations of the Securities and Exchange Commission for real estate
properties acquired. Accordingly, the statements exclude certain
historical expenses not comparable to the operations of the property
after acquisition by Merry Land, such as depreciation, interest and
management fees,
Merry Land has elected to be taxed as a real estate investment trust
("REIT") under the Internal Revenue Code and intends to maintain its
qualification as a REIT in the future. Accordingly, no provision for
federal or state income taxes is required.
