<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
------------------------------
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarter period ended May 31, 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 0-11023
NOONEY REAL PROPERTY INVESTORS-FOUR, L.P.
...............................................................................
(Exact name of Registrant as specified in its charter)
Missouri 43-1250566
........................................... ..................................
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
7701 Forsyth Boulevard, St. Louis, Missouri 63105
........................................... ..................................
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (314) 863-7700
Former name, former address and former fiscal year, if changed since last
report.
...............................................................................
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 [ ].
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDING DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12,13, or 15 (d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes [ ] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares
outstanding of each of the issuer's classes of common stock, as of the latest
practicable date .....................
Page 1 of 15 Pages
<PAGE> 2
PART I
ITEM 1 - FINANCIAL STATEMENTS:
- ------------------------------
<TABLE>
NOONEY REAL PROPERTY INVESTORS-FOUR, L.P.
-----------------------------------------
(A LIMITED PARTNERSHIP)
-----------------------
BALANCE SHEETS
--------------
<CAPTION>
May 31, November 30,
1995 1994
(Unaudited)
------------ ------------
<S> <C> <C>
ASSETS:
Cash and short-term investments . . . . . . . $ 280,063 $ 363,649
Accounts receivable . . . . . . . . . . . . . 126,309 122,744
Prepaid expenses and deposits . . . . . . . . 45,590 35,649
Investment property, at cost:
Land and improvements . . . . . . . . . . . 2,219,236 2,219,236
Buildings . . . . . . . . . . . . . . . . . 17,853,753 17,817,235
------------ ------------
20,072,989 20,036,471
Less accumulated depreciation . . . . . . . 9,145,742 8,865,810
------------ ------------
10,927,247 11,170,661
Deferred expenses-At amortized cost . . . . . 95,840 97,291
------------ ------------
$11,475,049 $11,789,994
============ ============
LIABILITIES AND PARTNERS' DEFICIT
Liabilities:
Accounts payable and accrued expenses . . . . $ 166,290 $ 299,200
Mortgage notes payable. . . . . . . . . . . . 12,670,763 12,721,302
Refundable tenant deposits. . . . . . . . . . 94,032 93,121
------------ ------------
12,931,085 13,113,623
------------ ------------
Partners' Deficit. . . . . . . . . . . . . . . . . (1,456,036) (1,323,629)
------------ ------------
$ 11,475,049 $11,789,994
============ ============
</TABLE>
<PAGE> 3
<TABLE>
NOONEY REAL PROPERTY INVESTORS-FOUR, L.P.
-----------------------------------------
(A LIMITED PARTNERSHIP)
-----------------------
STATEMENTS OF OPERATIONS AND PARTNERS' DEFICIT
----------------------------------------------
(UNAUDITED)
-----------
<CAPTION>
Three Months Ended Six Months Ended
May 31, May 31, May 31, May 31,
1995 1994 1995 1994
As Restated As Restated
See Note E See Note E
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
REVENUES:
Rental and other income . . . . . . . . . . . $ 852,350 $ 802,792 $ 1,661,366 $ 1,595,669
Interest. . . . . . . . . . . . . . . . . . . 867 795 1,718 1,547
------------ ------------ ------------ ------------
853,217 803,587 $ 1,663,084 $ 1,597,216
EXPENSES:
Interest. . . . . . . . . . . . . . . . . . . 290,189 307,923 577,268 612,640
Depreciation and amortization . . . . . . . . 162,791 195,727 329,310 388,159
Real estate taxes . . . . . . . . . . . . . . 135,129 137,905 259,836 257,516
Property management fees paid to
Nooney Krombach Company. . . . . . . . . . . 46,049 43,002 89,326 85,538
Reimbursement to Nooney Krombach Company for
partnership management services and
indirect expenses. . . . . . . . . . . . . . 10,000 10,000 20,000 20,000
Other operating expenses. . . . . . . . . . . 246,253 254,167 519,751 505,218
------------ ------------ ------------ ------------
890,411 948,724 1,795,491 1,869,071
------------ ------------ ------------ ------------
NET LOSS . . . . . . . . . . . . . . . . . . . . . $ (37,194) $ (145,137) $ (132,407) $ (271,855)
============ ============ ============ ============
NET LOSS PER LIMITED PARTNERSHIP UNIT. . . . . . . $ (2.70) $ (10.54) $ (9.62) $ (19.75)
============ ============ ============ ============
PARTNERS' DEFICIT:
Beginning of Period . . . . . . . . . . . . . $(1,418,842) $(1,045,175) $(1,323,629) $ (918,457)
Net Loss. . . . . . . . . . . . . . . . . . . (37,194) (145,137) (132,407) $ (271,855)
------------ ------------ ------------ ------------
End of Period . . . . . . . . . . . . . . . . $(1,456,036) $(1,190,312) $(1,456,036) $(1,190,312)
============ ============ ============ ============
</TABLE>
<PAGE> 4
<TABLE>
NOONEY REAL PROPERTY INVESTORS-FOUR, L.P.
-----------------------------------------
(A LIMITED PARTNERSHIP)
-----------------------
STATEMENTS OF CASH FLOWS
------------------------
(UNAUDITED)
-----------
<CAPTION>
Three Months Ended Six Months Ended
May 31, May 31, May 31, May 31,
1995 1994 1995 1994
As Restated As Restated
See Note E See Note E
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
CASH FLOWS PROVIDED BY (USED IN)
OPERATING ACTIVITIES:
Net Loss. . . . . . . . . . . . . . . . . . . $ (37,194) $ (145,137) $ (132,407) $ (271,855)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation and amortization . . . . . . . 162,791 195,727 329,310 388,159
Changes in assets and liabilities:
(Decrease) increase in accounts
receivable. . . . . . . . . . . . . . . (19,886) (21,957) (3,565) 1,841
Increase in deferred expenses at
amortized cost. . . . . . . . . . . . . (8,741) (4,050) (8,741) (4,050)
(Decrease) Increase in prepaid expenses
and deposits. . . . . . . . . . . . . . (9,135) (68,658) (9,941) (47,913)
Increase (Decrease) in accounts payable
and accrued expenses. . . . . . . . . . (18,376) 74,311 (132,910) (76,341)
Increase in refundable tenant deposits. . 1,019 3,120 911 4,026
------------ ------------ ------------ ------------
Total Adjustments . . . . . . . . . . . . 107,672 178,493 175,064 265,722
------------ ------------ ------------ ------------
Net cash provided by (used in)
operating activities . . . . . . . . 70,478 33,356 42,657 (6,133)
------------ ------------ ------------ ------------
CASH FLOWS USED IN INVESTING ACTIVITIES:
Addition to investment property . . . . . . . (55,261) (51,435) (75,704) (61,100)
------------ ------------ ------------ ------------
Net cash used in investing activities . . (55,261) (51,435) (75,704) (61,100)
CASH FLOWS USED IN FINANCING ACTIVITIES:
Payments on mortgage notes payable. . . . . . (25,292) (37,082) (50,539) (74,597)
------------ ------------ ------------ ------------
Net cash used in financing activities . . (25,292) (37,082) (50,539) (74,597)
------------ ------------ ------------ ------------
NET DECREASE IN CASH . . . . . . . . . . . . . . . (10,075) (55,161) (83,586) (141,830)
<PAGE> 5
CASH, Beginning of period. . . . . . . . . . . . . 290,138 263,089 363,649 349,758
------------ ------------ ------------ ------------
CASH, End of period. . . . . . . . . . . . . . . . $ 280,063 $ 207,928 $ 280,063 $ 207,928
============ ============ ============ ============
</TABLE>
<PAGE> 6
NOONEY REAL PROPERTY INVESTORS-FOUR, L.P.
-----------------------------------------
(A LIMITED PARTNERSHIP)
-----------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
THREE AND SIX MONTHS ENDED MAY 31, 1995 AND 1994
------------------------------------------------
NOTE A:
Refer to the Registrant's financial statements for the year ended November 30,
1994, which are contained in the Registrant's Annual Report on Form 10-K, for a
description of the accounting policies which have been continued without change
except as noted below. Also, refer to the footnotes to those statements for
additional details of the Registrant's financial condition. The details in
those notes have not changed except as a result of normal transactions in the
interim or as noted below.
NOTE B:
The financial statements include only those assets, liabilities, and results of
operations of the partners which relate to the business of Nooney Real Property
Investors-Four, L.P. The statements do not include assets, liabilities,
revenues or expenses attributable to the partners' individual activities. No
provision has been made for federal and state income taxes since these taxes
are the responsibility of the partners. In the opinion of the general
partners, all adjustments (which include only normal recurring adjustments)
necessary to present fairly the financial position, results of operations and
changes in financial position at May 31, 1995 and for all periods presented
have been made.
NOTE C:
The Registrant's properties are managed by Nooney Krombach Company, a wholly-
owned subsidiary of Nooney Company. Certain individual general partners of the
Registrant are officers and directors of Nooney Company. Nooney Four Capital
Corp., a general partner, is a 75% owned subsidiary of Nooney Company.
NOTE D:
The loss per limited partnership unit for the three and six months ended
May 31, 1995 and 1994 was computed based on 13,529 units, the number of units
outstanding during the periods.
NOTE E:
Subsequent to the filing of the 1994 10-Q's, the Registrant's management
determined that certain adjustments were not properly reflected in the
quarterly financial statements. The adjustments were as follows:
(i) Depreciation expense had previously been overstated as a result of a
computational error. The adjustment results in a reduction of depreciation
expense and an increase in net income of $8,819 for each of the quarters
<PAGE> 7
ended February 28, 1994 and May 31, 1994. The aforementioned adjustment
was properly reflected in the November 30, 1994 financial statements.
(ii) Net loss per limited partnership unit amounts have also been restated
to reflect an error made in the previous per unit calculations.
ITEM 7: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
- -------------------------------
Cash on hand as of May 31, 1995 is $280,063, a decrease of $83,586 from
year end November 30, 1994. The decrease in cash for the six month period
ended May 31, 1995 is the result of real estate tax payments made in December
1994 and May 1995. The Registrant expects the decrease in cash to be temporary
due to the timing of the real estate tax payments. An additional cause for the
decrease in cash is attributable to capital expenditures. For the quarter ended
and six month period ended capital expenditures increased $4,000 and $14,000,
respectively. Considering the properties expected cash flow, the Registrant
expects the properties to provide adequate cash flow from operations to fund
anticipated real estate tax payments and capital expenditures for the remainder
of 1995. The anticipated capital expenditures by property are as follows:
<TABLE>
<CAPTION>
Leasing Other Roof
Capital Capital Replacement Total
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Woodhollow $ -0- $23,600 $ -0- $23,600
Cobblestone 10,000 5,000 26,000 41,000
----------- ----------- ----------- -----------
$10,000 $28,600 $26,000 $64,600
=========== =========== =========== ===========
</TABLE>
During the remainder of 1995, approximately $64,600 of capital expenditures
are expected. The capital to be expended at Woodhollow is necessary to improve
the property's overall energy efficiency with exception to the expending of
approximately $4,800 to repair or replace balconies. At Cobblestone, as noted
in the table, the Registrant will be repairing/replacing a portion of the
property's roof. Cobblestone leasing capital includes floor plan changes to
accommodate tenant's needs.
During 1994, the Registrant successfully negotiated with first mortgage
lender on Woodhollow Apartments, an extension of the maturity of its note,
which matured August 1, 1994. Under the modification, the note, with a
principal balance of $8,276,961, was extended for an additional seven years
reducing the interest rate from 10-3/8% to 9-1/8%. During the first three
years, the payments are interest only, thereafter the Registrant will pay
principal based on a 15-year amortization schedule. In connection with the
refinancing, the Registrant was required to establish a capital reserve escrow
account to fund certain deferred capital improvements including new siding,
parking lot upgrades and common area renovations estimated to cost
approximately $900,000. The refinancing of the first mortgage of Woodhollow
<PAGE> 8
reduced its annual debt service by approximately $170,000. In addition, rental
rates are increasing as the apartment market continues to strengthen. Due to
the foregoing factors, the Registrant will fund deferred capital improvements
from cash flow from operations over a three-to-five year period if occupancy
and rental rates remain level or improve.
Subsequent to quarter ended May 31, 1995, the State of Missouri passed a
law changing the assessment rate for residential properties. The change
reduces the real estate tax payment for Woodhollow Apartments by approximately
38%. The savings recognized will be placed into the property's capital reserve
escrow.
During the second quarter of 1995, the Registrant was able to extend the
first mortgage debt on Cobblestone Court for a period of two months through
July 1, 1995. In the early part of June this extension was extended through
September 1, 1995 upon notification that the significant tenant who occupies
approximately 26% of the available space exercised their option for an
additional five year lease period. The intent of the first mortgage lender to
extend the loan for a short period of time through September 1, 1995 is to
allow time for the Registrant to place the first mortgage debt with another
lender. The current first mortgage debt holder has verbally informed the
Registrant that they will not renew the loan due to their underwriting
standards relating to loan size. Since that time, the Registrant has been
negotiating with other potential lenders in an effort to move the existing
debt.
During the fourth quarter of 1994, the Registrant successfully negotiated a
renewal to September 1995, of its second mortgage debts with principal balances
of $1,438,039 and $227,821 secured by Cobblestone Court and Woodhollow,
respectively. For the past several years the second mortgage debt has been
renewed in short-term increments. The Registrant anticipates, based on past
experience, the second mortgage debt will be renewed. As long as the second
mortgage debt is current, the Registrant is unaware of any reason the mortgage
holder would not continue to renew the debt on a short-term basis.
The future liquidity of the Registrant is dependent in its ability to fund
future capital expenditures and mortgage payments from operations and cash
reserves, maintain occupancy and negotiate with lenders the refinancing of
mortgage debt as is matures. Until such time as the real estate market
recovers and profitable sale of the properties is feasible, the Registrant will
continue to manage the properties to achieve its investment objectives.
<PAGE> 9
Results of Operations
- ---------------------
The results of operations for the Registrant's properties for the quarters
ended May 31, 1995, 1994 and 1993 are detailed in the schedule below. The
information contained in the schedule excludes all partnership expenses and
includes all properties that were operating properties during the first and
second quarters of 1993, 1994 and 1995. Net operating cash income (NOCI)
represents rental revenue less operating expenses, excluding depreciation and
amortization, less debt service.
<TABLE>
<CAPTION>
Woodhollow Cobblestone Quad I
Apartments Court S.C. Warehouse
----------- ----------- -----------
<S> <C> <C> <C>
1995
- ----
Net Operating Cash Income $ 46,000 $ 49,000 $ -0-
Capital Expenditures 9,000 30,000 -0-
Tenant Alterations -0- -0- -0-
Lease Commissions -0- 5,500 -0-
----------- ----------- -----------
Net Property Cash Flow $ 37,000 $ 13,500 $ -0-
=========== =========== ===========
1994
- ----
Net Operating Cash Income $ (5,000) $ 22,000 $ -0-
Capital Expenditures 1,000 24,000 -0-
Tenant Alterations -0- 7,000 -0-
Lease Commissions -0- -0- -0-
----------- ----------- -----------
Net Property Cash Flow $ (6,000) $ (9,000) $ -0-
=========== =========== ===========
1993
- ----
Net Operating Cash Income $ (14,000) $ 44,000 $ 10,000
Capital Expenditures 9,000 7,000 -0-
Tenant Alterations -0- -0- -0-
Lease Commissions -0- -0- -0-
----------- ----------- -----------
Net Property Cash Flow $ (23,000) $ 37,000 $ 10,000
=========== =========== ===========
</TABLE>
The occupancy levels at the Registrant's properties during the second
quarter remain at a high level. However, the Registrant has received notice
from two tenants at Cobblestone Court which occupy approximately 13% of the
available space that they will be vacating their space in July and December
1995.
<PAGE> 10
The occupancy rates at the Registrant's properties are listed below:
<TABLE>
<CAPTION>
PROPERTY Occupancy Rates at May 31,
----------------------------
1995 1994 1993
- ------------------------------------------------- -------- -------- --------
<S> <C> <C> <C>
Woodhollow Apartments 96% 95% 95%
Cobblestone Court S.C. 98% 97% 95%
Quad I Warehouse N/A N/A 78%
</TABLE>
At Cobblestone Court, during the second quarter of 1995, the Registrant
received written notification from a major tenant who occupies approximately
26% that they are exercising their option for an additional five years
commencing December 1, 1995. Also in the second quarter, a 9,000 square foot
user renewed for an additional five years commencing April 18,1995. Other
leasing activity which occurred in the second quarter was the renewal of 3,167
square feet, the turnover of 990 square feet and the signing of a new lease
occupying 584 square feet. The leasing activity netted an increase in
occupancy of approximately 1%.
At Woodhollow Apartments the occupancy increased by approximately 1% when
comparing May 31, 1995 to May 31, 1994 statistics. The increase in occupancy
is attributable to the increasing demand for apartments without a comparable
increase in supply. The Registrant expects this trend to continue.
1995 Comparisons
- ----------------
As of May 31, 1995., the Registrant's consolidated revenues are $853,217
for the quarter ended and $1,663,084 for the six month period ended. The
revenues have increased approximately 6.2% for the quarter ended and 4.1% for
the six month period ended when compared to the same periods ended May 31,
1994.
At Woodhollow Apartments revenues have increased by approximately $11,000
and $34,100 for the quarter ended and six month period ended May 31, 1995 when
compared to the same periods in 1994. The cause for the quarterly increase
relates to furniture rental income which had an increase of $9,100. This
increase is attributable to a greater demand by the tenants for rental
furniture. The revenues for the six month period ended May 31, 1995 increased
from the same period in 1994 due to the following: furniture rental income
$9,300; net rental income $20,900; remaining income categories $3,900. As
previously discussed, the furniture rental income increased due to greater
demand and the same can be said about net rental income. With the demand
increasing for apartment units without the corresponding increase in supply,
the Registrant has been able to increase per unit rental rates and/or reduce
rent concessions over the period from May 31, 1994 to May 31, 1995.
<PAGE> 11
At Cobblestone Court for the quarter ended and six month period ended
May 31, 1995 revenues increased by $38,300 and $32,900, respectively when
compared to May 31, 1994. The significant increase in quarterly income can be
attributable to the following income categories: rental income $7,200;
percentage rent income $8,600; expense recovery income $6,400; real estate tax
recovery $18,700. The increase in rental income is the result of the
strengthening market and the Registrant's ability to negotiate rate increases
on new leases and renewals. The percentage rent increase is attributable to
several tenants who are enjoying prosperous years. The increase in expense
recovery income for the quarter ended is due to timing of prior year recovery
billings. The increase in expense recovery income for the six month period
ended May 31, 1995 when compared to May 31, 1994 is $224. The increase in real
estate tax recovery income directly correlated with the increase in real estate
taxes from 1993 to 1994. Increases in real estate taxes are directly passed
through to the tenants.
As of May 31, 1995, the Registrant's consolidated expenses excluding
depreciation, amortization and interest for the quarter ended May 31, 1995 is
$437,431 and for the six month period ended the expenses are $888,913. For the
quarter ended and six month period ended May 31, 1994 the expenses were
$445,074 and $868,272, respectively. The expenses have decreased approximately
1.7% when comparing quarter ended May 31, 1995 to 1994. However, when
comparing the six month period ending May 31, 1995 to 1994 expenses have
increased by approximately 2.4%.
<PAGE> 12
The decrease in consolidated expenses excluding depreciation, amortization
and interest during the second quarter of 1995 and the increase in expenses for
the six month period ended May 31, 1995 can be attributable to several expense
categories. The table set forth below outlines the properties and expense
categories that cause the increase/(decrease) in the consolidated expense for
the quarter ended and six month period ended May 31,1995.
<TABLE>
<CAPTION>
Quarter Ended Six month period ended
May 31, 1995 May 31, 1995
Cobblestone Woodhollow Cobblestone Woodhollow
Court Apartments Court Apartments
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Electric ----- ----- (1,406) -----
Swimming pool ----- (3,374) (3,237)
Insurance (1,061) (5,598) (4,183) (8,062)
Landscaping ----- 938 ----- 8,079
Administrative (1,426) 8,076 (6,247) 21,312
Furniture expense ----- 3,193 ----- 3,319
Parking lot expense 11,534 ----- 10,675 -----
Professional services 3,119 ----- 4,300 20,319
Repairs & Maintenance (4,148) 6,409 (2,892) 11,325
Real Estate Taxes (3,239) ----- 1,792 1,606
Water & Sewer 1,191 (2,512) 996 (1,342)
Snow removal (2,841) (1,853) ----- -----
------------ ------------ ------------ ------------
Property Totals $3,129 $5,279 $3,035 (1) $53,391
Other expenses (765) (2,432)
Decrease in Nooney
Real Property
Investors-Four, L.P.
expenses (1) $(33,353)
Consolidated total 7,643 20,641
- ---------------
<FN>
<F1> As part of the restructuring of the first mortgage debt on Woodhollow
Apartments, 50% of Nooney Real Property Investors-Four, L.P. expenses
are to be paid from the operations of the property.
</TABLE>
As presented on the financial statements for the quarter ended and six
month period ended May 31, 1995, the decrease in consolidated operating
expenses is $7,643 and the increase is $20,641, respectively.
Interest expense decreased $17,734 and $35,372 for the quarter ended and
six month period ended May 31, 1995 when compared to the same period ended
May 31, 1994. The decrease in interest expense for both the quarter ended and
six month period ended May 31, 1995 is attributable to the refinancing of the
first mortgage debt on Woodhollow Apartments. To offset the decrease in
interest expense due to the refinancing were increases in interest rates on the
Registrant's floating rate debt.
<PAGE> 13
1994 Comparisons
- ----------------
On a consolidated basis, gross revenues for the quarter ended May 31, 1994
decreased from $870,000 to $804,000 when compared to the previous year. For
the six months ended May 31, gross revenues decreased from $1,709,000 in 1993
to $1,597,000 in 1994. These decreases were largely attributable to the
disposal of Quad I Warehouse during 1993. Quad I's revenues for the three and
six months ended May 31, 1994 were $78,000 and $156,000, respectively. Revenue
at cobblestone Court decreased from $291,000 to $287,000 for the quarter ending
May 31, 1994. This decrease is mainly a result of decreases in operating
expense recoveries partially offset by higher rental income due to increased
occupancy. Year-to-date revenue increased from $567,000 to $577,000 due to
increases in rental income, percentage rent, tax participation recoveries and a
recovery of bad debt in the current year. This was partially offset by a
decrease in operating expense recoveries. Revenues at Woodhollow for the
quarter ended May 31, 1994 increased from $491,000 in 1993 to $516,000 in 1994,
and for the six months ended May 31, from $973,000 to $1,018,000. The
quarterly and year-to-date increases are due to fewer rent concessions given in
1994 and an increase in miscellaneous rental fees.
Operating expenses for the three months ended May 31, 1994 increased from
$439,000 to $445,000 on a consolidated basis when compared to the previous
year. Year-to-date operating expenses decreased from $889,000 to $868,000 over
the same period in 1993. The changes are primarily due to increases at
Cobblestone and Woodhollow offset by the sale of Quad I in 1993. Quad I's
expenses for the three and six months ended May 31, 1993 were $29,000 and
$60,000, respectively. Operating expenses at Cobblestone increased from
$138,000 to $156,000 for the quarter ended May 31, and year-to-date, from
$278,000 to $297,000. Increases in real estate taxes and utilities account for
the quarterly increase, a decrease in snow removal partially offsetting the
current quarter tax and utility increases account for the year-to-date increase
in expenses. Operating expenses at Woodhollow for the quarter increased from
$254,000 in 1993 to $265,000 in 1994, and year-to-date increased from $500,000
to $503,000. The quarterly increase is a result of increases in swimming pool
expenses, insurance premiums, tenant related expenses, and repairs and
maintenance partially offset by decreases in cleaning, landscaping,
administrative and water and sewer expenses. Increases in employee benefit
expenses and snow removal costs combined with the current quarter fluctuations
account for the year-to-date increase in expenses.
Interest expenses for the quarter and year-to-date decreased due to the
sale of Quad I Warehouse in the third quarter of 1993. This decrease is
partially offset by higher interest rates on floating rate debt.
1993 Comparisons
- ----------------
On a consolidated basis, gross revenues for the quarter ended May 31, 1993
remain unchanged from 1992, and for the six months ended May 31, revenues
increased from $1,680,000 to $1,709,000 when compared to the previous year.
Revenues at Cobblestone Court decreased from $322,000 to $291,000 for the
quarter ended May 31. This decrease is largely attributable to operating
expense recoveries with slight decreases in rental revenues. Year-to-date
revenue decreased primarily due to lower operating expense recovery. Revenues
at Woodhollow for the quarter ended May 31 increased from $481,000 in 1992 to
$491,000 in 1993, and for the six months ended May 31, 1993 from $967,000 to
<PAGE> 14
$977,000. The quarterly and year-to-date increases are primarily due to higher
occupancy. Compared to 1992, quarterly income at Quad I increased from $47,000
to $89,000 and year-to-date income from $101,000 to $169,000. This sharp
increase is due to a 20% increase in occupancy.
Operating expenses for the three months ended May 31, 1993 decreased from
$451,000 to $439,000 on a consolidated basis when compared to previous year.
Year-to-date operating expenses decreased from $906,000 to $889,000 over the
same period in 1992. Operating expenses at Cobblestone decreased from $144,000
to $138,000 for the quarter ended May 31, and year-to-date, from $306,000 to
$278,000. A cleaning refund accounts for the quarterly decrease, and heavy
snowfall in 1992 combined with the current quarter cleaning refund, accounts
for the sharp year-to-date decrease in expenses. Operating expenses at
Woodhollow for the quarter ended May 31 decreased from $260,000 in 1992 to
$254,000 in 1993, and year-to-date increased from $475,000 to $504,000. The
quarterly decreases is the result of lower swimming pool, water and sewer, and
employee benefit expenses, partially offset by increases in landscaping and
real estate taxes. Year-to-date increases are comprised of increases in
landscaping, maintenance, real estate taxes and water/sewer, and is offset by
the timing of the insurance premiums. Compared to 1992, quarterly operating
expenses at Quad I increased from $15,000 to $29,000, and year-to-date
operating expenses remained steady at $59,000. Management fees, parking lot,
and real estate tax expenses increased, offset by a large drop in vacancy
expenditures due to higher occupancy on a year-to-date basis. The quarterly
increase is the result of timing of certain expense payments.
Interest expense decreased by $6,000 per quarter, $12,000 in aggregate,
when compared to the previous year primarily due to lower interest rates on
certain floating rate debt.
Inflation
- ---------
The effects of inflation did not have a material impact upon the
Registrant's operation in fiscal 1994 and are not expected to materially affect
the Registrant's operation in 1995.
Interest Rates
- --------------
Declining interest rates on floating rate debt positively affected the
operations of the Registrant during 1993. Increases in the prime interest rate
did adversely affect the operations of the Registrant in 1994, 1995 and will in
the future.
<PAGE> 15
PART II. OTHER INFORMATION
- ---------------------------
Item 6. Exhibits and Reports on Form 8-K
- ----------------------------------------
(a) Exhibits
Exhibit 27 -- Financial Data Schedule (provided for the
information of the Securities and Exchange
Commission only).
(b) Reports on Form 8-K
None
SIGNATURES
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.
NOONEY REAL PROPERTY INVESTORS-FOUR, L.P.
Dated: July 12, 1995 /S/ Gregory J. Nooney, Jr.
---------------------------------------------
Gregory J. Nooney, Jr.
General Partner
NOONEY CAPITAL CORPORATION
/S/ Gregory J. Nooney, Jr.
---------------------------------------------
Gregory J. Nooney, Jr.
Chairman
Patricia A. Nooney
---------------------------------------------
Patricia A. Nooney
Senior Vice President and Secretary
BEING A MAJORITY OF DIRECTORS
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS FOR NOONEY REAL PROPERTY INVESTORS-FOUR, L.P. AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000700720
<NAME> NOONEY REAL PROPERTY INVESTORS-FOUR, L.P.
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> NOV-30-1995
<PERIOD-START> DEC-01-1994
<PERIOD-END> FEB-28-1995
<CASH> 290,138
<SECURITIES> 0
<RECEIVABLES> 106,423
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 396,561
<PP&E> 20,056,914
<DEPRECIATION> 9,027,141
<TOTAL-ASSETS> 11,554,892
<CURRENT-LIABILITIES> 277,679
<BONDS> 12,696,055
<COMMON> 0
0
0
<OTHER-SE> (1,418,842)
<TOTAL-LIABILITY-AND-EQUITY> 11,554,892
<SALES> 809,867
<TOTAL-REVENUES> 809,867
<CGS> 618,003
<TOTAL-COSTS> 618,003
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 287,079
<INCOME-PRETAX> (95,215)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (95,215)
<EPS-PRIMARY> (6.92)
<EPS-DILUTED> 0
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