FORM 10-QSB--QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Quarterly or Transitional Report
(As last amended by 34-32231, eff. 6/3/93.)
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] Quarterly Report Pursuant to Section 13 or 15(d) of The Securities
Exchange Act of 1934
For the quarterly period ended June 30, 1996
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period.........to.........
Commission file number 0-10435
CENTURY PROPERTIES FUND XVI
(Exact name of small business issuer as specified in its charter)
California 94-2704651
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Insignia Financial Plaza
Greenville, South Carolina 29602
(Address of principal executive offices)
(864) 239-1000
Issuer's phone number
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15 (d) of the Exchange Act during the past 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 .
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
a) CENTURY PROPERTIES FUND XVI
CONSOLIDATED BALANCE SHEET
(Unaudited)
(in thousands, except unit data)
June 30, 1996
<TABLE>
<CAPTION>
<S>
Assets <C> <C>
Cash and cash equivalents $ 766
Security deposits and other assets 262
Loan costs, net 302
Investment properties:
Land $ 1,409
Buildings and related personal property 13,144
14,553
Less accumulated depreciation (6,640) 7,913
Total assets $ 9,243
Liabilities and Partners' Equity
Accounts payable and accrued expenses $ 293
Mortgages payable 7,520
Partners' Equity (Deficit):
Limited partners' (130,000 units outstanding) $ 5,236
General partners' (3,806) 1,430
Total liabilities and partners' equity $ 9,243
<FN>
See Notes to Consolidated Financial Statements
</TABLE>
b) CENTURY PROPERTIES FUND XVI
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except unit data)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 581 $ 659 $ 1,271 $ 1,329
Other income 37 29 66 54
Total income 618 688 1,337 1,383
Expenses:
Operating 472 427 941 868
Mortgage interest 141 202 298 401
Depreciation 116 114 227 228
General and administrative
expenses 75 58 159 117
Total expenses 804 801 1,625 1,614
Net loss $ (186) $ (113) $ (288) $ (231)
Net loss allocated to
general partner $ (13) $ (8) $ (20) $ (16)
Net loss allocated to
limited partners (173) (105) (268) (215)
Net loss $ (186) $ (113) $ (288) $ (231)
Net loss per limited
partnership unit $ (1.34) $ (.81) $ (2.07) $ (1.65)
<FN>
See Notes to Consolidated Financial Statements
</TABLE>
c) CENTURY PROPERTIES FUND XVI
CONSOLIDATED STATEMENTS OF PARTNERS' EQUITY
(Unaudited)
(in thousands, except unit data)
<TABLE>
<CAPTION>
Limited General Limited
Partnership Partners' Partners' Total
Units Deficit Equity Equity
<S> <C> <C> <C> <C>
Original capital contributions 130,000 $ -- $ 65,000 $ 65,000
Partners' (deficit) equity at
December 31, 1995 130,000 $ (3,786) $ 5,504 $ 1,718
Net loss for the six
months ended June 30, 1996 -- (20) (268) (288)
Partners' (deficit) equity at
June 30, 1996 130,000 $ (3,806) $ 5,236 $ 1,430
<FN>
See Notes to Consolidated Financial Statements
</TABLE>
d) CENTURY PROPERTIES FUND XVI
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands, except unit data)
<TABLE>
<CAPTION>
Six Months Ended
June 30,
1996 1995
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (288) $ (231)
Adjustments to reconcile net loss to
cash provided by operating activities:
Depreciation and amortization 242 264
Change in accounts:
Security deposits and other assets (35) 43
Accounts payable and accrued expenses 90 (50)
Net cash provided by operating activities 9 26
Cash flows from investing activities:
Property improvements and replacements (56) (37)
Cash used in investing activities (56) (37)
Cash flows from financing activities:
Mortgage principal repayments (30) --
Loan costs (3) --
Cash used in financing activities (33) --
Net decrease in cash and cash equivalents (80) (11)
Cash and cash equivalents at beginning of period 846 932
Cash and cash equivalents at end of period $ 766 $ 921
Supplemental information:
Interest paid $ 282 $ 351
<FN>
See Notes to Consolidated Financial Statements
</TABLE>
e) CENTURY PROPERTIES FUND XVI
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note A - Basis of Presentation
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-QSB and Item 310(b) of
Regulation S-B. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of Fox Capital Management Corporation (the
"Managing General Partner" or "FCMC"), all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have been
included. Operating results for the six month period ended June 30, 1996, are
not necessarily indicative of the results that may be expected for the fiscal
year ending December 31, 1996. For further information, refer to the financial
statements and footnotes thereto included in the Partnership's annual report on
Form 10-K for the year ended December 31, 1995.
Certain reclassifications have been made to the 1995 information to conform
to the 1996 presentation.
Note B - Transactions with Affiliated Parties
Century Properties Fund XVI (the "Partnership"), has no employees and is
dependent on its general partners Fox Realty Investors ("FRI"), a California
general partnership, and FCMC, a California corporation and their affiliates for
the management and administration of all partnership activities. The
Partnership Agreement provides for payments to affiliates for services and as
reimbursement of certain expenses incurred by affiliates on behalf of the
Partnership.
The following transactions with affiliates of Insignia Financial Group, Inc.
("Insignia"), National Property Investors, Inc. ("NPI"), and affiliates of NPI
were charged to expense in 1996 and 1995:
<TABLE>
<CAPTION>
For the Six Months Ended
June 30,
1996 1995
<S> <C> <C>
Property management fees (included in operating
expenses) $ 65,000 $ 66,000
Reimbursement for services of affiliates (included
in general and administrative expenses) 94,000 75,000
</TABLE>
For the period from January 19, 1996, to June 30, 1996, the Partnership
insured its properties under a master policy through an agency and insurer
unaffiliated with the Managing General Partner. An affiliate of the Managing
General Partner acquired, in the acquisition of a business, certain financial
obligations from an insurance agency which was later acquired by the agent who
placed the current year's master policy. The current agent assumed the
financial obligations to the affiliate of the Managing General Partner who
received payments on these obligations from the agent. The amount of the
Partnership's insurance premiums accruing to the benefit of the affiliate of the
Managing General Partner by virtue of the agent's obligations is not
significant.
Pursuant to a series of transactions which closed during the first half of 1996,
affiliates of Insignia acquired (i) control of NPI Equity Investments II, Inc.,
the managing general partner of FRI, and (ii) all of the issued and outstanding
shares of stock of FCMC. In connection with these transactions, affiliates of
Insignia appointed new officers and directors of NPI Equity Investments II, Inc.
and FCMC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
The Partnership's investment properties consist of two apartment complexes.
The following table sets forth the average occupancy of the properties for each
of the six month periods ended June 30, 1996 and 1995:
Average
Occupancy
Property 1996 1995
The Landings Apartments
Tampa, Florida 92% 96%
Woods of Inverness
Houston, Texas 92% 96%
The decline in average occupancy from June 30, 1995, to June 30, 1996, at the
Landings is attributable to completed apartment construction in the area. The
decline in average occupancy from June 30, 1995, to June 30, 1996, for the Woods
of Inverness is due to a soft market in the area as well as the increase in new
home purchases.
The Partnership's net loss for the three and six month periods ended June 30,
1996, was approximately $186,000 and $288,000, respectively, versus $113,000 and
$231,000, repectively for the same periods of 1995. The increase in net loss is
attributable to a decrease in rental income and an increase in operating
expense. The decrease in rental income is attributable to the decrease in
occupancy rates at the Partnership's investment properties. The increase in
operating expense is due to increased advertising in an effort to increase
occupancy, and increases in repairs and maintenance expense due to a traffic
accident at The Landings causing increases in landscape costs. The Partnership
also had an increase in general and administrative expenses due to costs related
to the transition of the Partnership administration offices in 1996. Partially
offsetting these increases, was a decrease in interest expense. The decrease in
interest expense is attributable to the decrease in interest rates due to the
more favorable terms of the mortgages which were refinanced in December 1995.
As part of the ongoing business plan of the Partnership, the Managing General
Partner monitors the rental market environment of its investment properties to
assess the feasibility of increasing rents, maintaining or increasing occupancy
levels and protecting the Partnership from increases in expenses. As part of
this plan, the Managing General Partner attempts to protect the Partnership from
the burden of inflation-related increases in expenses by increasing rents and
maintaining a high overall occupancy level. However, due to changing market
conditions, which can result in the use of rental concessions and rental
reductions to offset softening conditions, there is no guarantee that the
Managing General Partner will be able to sustain such a plan.
At June 30, 1996, the Partnership had unrestricted cash of $766,000 as
compared to $921,000 at June 30, 1995. Net cash provided by operating
activities decreased primarily as a result of the increase in the net loss as
discussed above, and an increase in security deposits and other assets. The
increase in cash used in financing activities is due to the payment of the
mortgage principal balance during the period ended June 30, 1996.
An affiliate of the Managing General Partner has made available to the
Partnership a credit line of up to $150,000 per property owned by the
Partnership. The Partnership has no outstanding amounts due under this line of
credit. Based on present plans, the Managing General Partner does not
anticipate the need to borrow in the near future. Other than cash and cash
equivalents, the line of credit is the Partnership's only unused source of
liquidity.
The sufficiency of existing liquid assets to meet future liquidity and
capital expenditure requirements is directly related to the level of capital
expenditures required at the property to adequately maintain the physical assets
and other operating needs of the Partnership. Such assets are currently thought
to be sufficient for any near-term needs of the Partnership. The total mortgage
indebtedness of $7,520,000 is based on fixed interest rate notes, amortized over
a thirty year period, with balloon payments of principal and interest due on the
maturity date of January 1, 2006. Future cash distributions will depend on the
levels of cash generated from operations, property sales, and the availability
of cash reserves. No cash distributions were paid in 1995 or during the first
two quarters of 1996. At this time, it appears that the original investment
objective of capital growth will not be attained and that investors will not
receive a return of their invested capital.
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a) Exhibit 27, Financial Data Schedule, is filed as an exhibit to this
report.
b) Reports on Form 8-K: None filed during the period ended June 30, 1996.
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.
CENTURY PROPERTIES FUND XVI
By: Fox Capital Management Corporation,
it's Managing General Partner
By: /s/William H. Jarrard, Jr.
President and Director
By: /s/Ronald Uretta
Treasurer
(Principal Financial Officer
and Principal Accounting Officer)
Date: August 14, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Century
Properties Fund XVI 1996 Second Quarter 10-QSB and is qualified in its entirety
by reference to such 10-QSB filing.
</LEGEND>
<CIK> 0000351931
<NAME> CENTURY PROPERTIES FUND XVI
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 766
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 14,553
<DEPRECIATION> 6,640
<TOTAL-ASSETS> 9,243
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 7,520
0
0
<COMMON> 0
<OTHER-SE> 1,430
<TOTAL-LIABILITY-AND-EQUITY> 9,243
<SALES> 0
<TOTAL-REVENUES> 1,337
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,625
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 298
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (288)
<EPS-PRIMARY> (2.07)<F2>
<EPS-DILUTED> 0
<FN>
<F1>The Registrant has an unclassified balance sheet.
<F2>Multiplier is 1.
</FN>
</TABLE>
