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 March 31, 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
(in thousands, except unit data)
<TABLE>
<CAPTION>
March 31,
1996
(Unaudited)
<S> <C> <C>
Assets
Cash and cash equivalents $ 917
Security deposits and other assets 210
Loan costs, net 310
Investment properties:
Land $ 1,409
Buildings and related personal property 13,102
14,511
Less accumulated depreciation (6,525) 7,986
Total assets $ 9,423
Liabilities and Partners' Equity
Accounts payable and accrued expenses $ 273
Mortgages payable 7,534
Partners' Equity (Deficit):
Limited partners' (130,000 units outstanding) $ 5,409
General partners' (3,793) 1,616
Total liabilities and partners' equity $ 9,423
<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
March 31,
1996 1995
<S> <C> <C>
Revenues:
Rental income $ 690 $ 670
Other income 29 25
Total revenues 719 695
Expenses:
Operating 469 441
Mortgage interest 157 199
Depreciation 111 114
General and administrative expenses 84 59
Total expenses 821 813
Net loss $ (102) $ (118)
Net loss allocated to general partners $ (7) $ (8)
Net loss allocated to limited partners (95) (110)
Net loss $ (102) $ (118)
Net loss per limited partnership unit $ (.73) $ (.85)
<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 three
months ended March 31, 1996 -- (7) (95) (102)
Partners' (deficit) equity at
March 31, 1996 130,000 $(3,793) $ 5,409 $ 1,616
<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>
Three Months Ended
March 31,
1996 1995
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (102) $ (118)
Adjustments to reconcile net loss to
cash provided by operating activities:
Depreciation and amortization 119 133
Change in accounts:
Security deposits and other assets 17 92
Accounts payable and accrued expenses 195 (102)
Net cash provided by operating activities 229 5
Cash flows from investing activities:
Property improvements and replacements (14) (20)
Cash used in investing activities (14) (20)
Cash flows from financing activities:
Mortgage principal repayments (16) --
Loan costs (128) --
Cash used in financing activities (144) --
Net increase (decrease) in cash and cash equivalents 71 (15)
Cash and cash equivalents at beginning of period 846 932
Cash and cash equivalents at end of period $ 917 $ 917
Supplemental information:
Interest paid $ 149 $ 173
<FN>
See Notes to Consolidated Financial Statements
</TABLE>
e) CENTURY PROPERTIES FUND XVI
NOTES TO 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 the Managing General Partner, all
adjustments (consisting of normal recurring accruals) considered necessary for a
fair presentation have been included. Operating results for the three month
period ended March 31, 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 Fox Capital Management Corporation ("the managing
general partner" or "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.,
National Property Investors, Inc. ("NPI"), and affiliates of NPI were charged to
expense in 1996 and 1995:
For the Three Months Ended
March 31,
1996 1995
Property management fees (included in operating
expenses) $ 32,000 $ 33,000
Reimbursement for services of affiliates (included
in general and administrative expenses) 60,000 36,000
For the period from January 19, 1996 to March 31, 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.
Note B - Transactions with Affiliated Parties (continued)
On December 6, 1993, the shareholders of FCMC entered into a Voting Trust
Agreement with NPI Equity Investments II, Inc. ("NPI Equity") pursuant to which
NPI Equity was granted the right to vote 100 percent of the outstanding stock of
FCMC and NPI Equity became the managing general partner of FRI. As a result,
NPI Equity became responsible for the operation and management of the business
and affairs of the Partnership and the other investment partnerships originally
sponsored by FCMC and/or FRI. NPI Equity is a wholly-owned subsidiary of NPI.
The shareholders of FCMC and the partners of FRI retain indirect economic
interests in the Partnership and such other investment limited partnership, but
have ceased to be responsible for the operation and management of the
Partnership and such other partnerships.
On August 17, 1995, the stockholders of NPI entered into an agreement to sell
to IFGP Corporation, a Delaware corporation, an affiliate of Insignia Financial
Group, Inc., a Delaware corporation ("Insignia"), all of the issued and
outstanding common stock of NPI, for an aggregate purchase price of $1,000,000.
The closing of the transactions contemplated by the above mentioned agreement
(the "Closing") occurred on January 19, 1996.
Upon the Closing, the officers and directors of NPI, FCMC and NPI Equity
resigned and IFGP Corporation caused new officers and directors to each of those
entities to be elected.
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 the
three months ended March 31, 1996 and 1995:
Average
Occupancy
Property 1996 1995
The Landings Apartments
Tampa, Florida 91% 95%
Woods of Inverness
Houston, Texas 92% 98%
The decline in average occupancy from March 31, 1995, to March 31, 1996, at
the Landings is attributable to completed apartment construction in the area as
well as the elimination of a large number of jobs by a major employer in the
area. The decline in average occupancy from March 31, 1995, to March 31, 1996,
for the Woods of Inverness is due to repairs to major interstates in the area
making access to the complex more difficult as well as the increase in new home
purchases.
The Partnership's net loss for the three months ended March 31, 1996, was
approximately $102,000 versus $118,000 for the same period of 1995. The
decrease in net loss is attributable to an increase in rental revenue and a
decrease in interest expense. The increase in rental revenue is attributable
to increased rental rates at the Partnership's investment properties. 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. This decrease in interest expense was offset by an increase in
general and administrative expenses. General and administrative expenses
increased due to an increase in cost reimbursements which were as a result of
transitioning the administrative offices to a new location and operating two
offices during the period ended March 31, 1996. A decrease in these cost
reimbursements is expected for the remainder of the year.
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 March 31, 1996, the Partnership had unrestricted cash of $917,000 as
compared to $917,000 at March 31, 1995. Net cash provided by operating
activities increased primarily as a result of an increase in accounts payable
and accrued expenses including the prepayment of rent. The increase in cash
used in financing activities is due to the amortization of the mortgage
principal balance and loan costs paid during the period ended March 31, 1996,
for the refinancing in December of 1995.
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 Registrant 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 mortgage
indebtedness of $7,534,000 is based on a fixed interest rate, amortized over a
thirty year period with a balloon payment of the principal and interest to be
repaid in ten years 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 quarter of 1996. At this time, it appears
that the original investment objectives of capital growth from the inception of
the Partnership 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: Form 8-K dated January 19, 1996 was filed reporting
the change in control of the Partnership.
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
/s/William H. Jarrard, Jr.
President and Director
/s/Ronald Uretta
Treasurer
(Principal Financial Officer
and Principal Accounting Officer)
Date: May 13, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Century
Properties Fund XVI 1996 First 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> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 917
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 14,511
<DEPRECIATION> 6,525
<TOTAL-ASSETS> 9,423
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 7,534
0
0
<COMMON> 0
<OTHER-SE> 1,616
<TOTAL-LIABILITY-AND-EQUITY> 9,423
<SALES> 0
<TOTAL-REVENUES> 719
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 821
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 157
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> (102)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (102)
<EPS-PRIMARY> (.73)
<EPS-DILUTED> 0
<FN>
<F1>The Registrant has an unclassified balance sheet.
</FN>
</TABLE>
