UNITED STATES 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 quarterly period ended February 28, 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: 0-13330
HUTTON/CONAM REALTY PENSION INVESTORS
(Exact name of registrant as specified in its charter)
New York 11-2673854
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3 World Financial Center, 29th Floor, New York, NY 10285
(Address of principal executive offices) (Zip Code)
(212) 526-3237
(Registrant's telephone number, including area code)
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
Balance Sheets
February 28, November 30,
Assets 1995 1994
Investments in real estate:
Properties $ 10,450,002 $ 10,450,002
Less- accumulated depreciation (1,628,836) (1,536,168)
Mortgage loan investments 9,675,900 9,675,900
Total investments in
real estate 18,497,066 18,589,734
Cash and cash equivalents 1,943,020 2,131,720
Interest receivable - deferred, net of
accumulated provision for losses of
$1,945,176 in 1995 and 1994 1,874,100 1,874,100
Other assets 54,447 54,447
Total Assets $ 22,368,633 $ 22,650,001
Liabilities and Partners' Capital
Liabilities:
Distribution payable $ 507,842 $ 507,842
Accounts payable and
accrued expenses 81,654 228,662
Due to general partners
and affiliates 25,421 25,675
Deferred income - loan
modification fees 55,711 60,842
Security deposits 59,343 59,870
Total Liabilities 729,971 882,891
Partners' Capital:
General Partners 298,723 305,145
Limited Partners 21,339,939 21,461,965
Total Partners'
Capital 21,638,662 21,767,110
Total Liabilities
and Partners' Capital $ 22,368,633 $ 22,650,001
Statement of Partners' Capital
For the three months ended February 28, 1995
General Limited
Partners Partners Total
Balance at December 1, 1994 $ 305,145 $ 21,461,965 $ 21,767,110
Net income 18,970 360,424 379,394
Cash distributions (25,392) (482,450) (507,842)
Balance at February 28, 1995 $ 298,723 $ 21,339,939 $ 21,638,662
Statements of Operations
For the three months ended February 28, 1995 and 1994
Income 1995 1994
Rental $ 599,942 $ 546,119
Mortgage interest 205,613 205,613
Other interest 24,926 13,900
Loan modification fees 5,131 5,131
Loan origination fees -- 7,257
Total Income 835,612 778,020
Expenses
Property operating 329,818 348,313
Depreciation 92,668 92,039
General and administrative 33,732 31,606
Total Expenses 456,218 471,958
Net Income $ 379,394 $ 306,062
Net Income Allocated:
To the General Partners $ 18,970 $ 18,664
To the Limited Partners 360,424 287,398
$ 379,394 $ 306,062
Per limited partnership unit
(96,490 outstanding) $ 3.74 $ 2.98
Statements of Cash Flows
For the three months ended February 28, 1995 and 1994
Cash Flows from Operating Activities: 1995 1994
Net income $ 379,394 $ 306,062
Adjustments to reconcile
net income to net cash
provided by operating activities:
Depreciation 92,668 92,039
Increase (decrease) in
cash arising from changes
in operating assets and
liabilities:
Other assets -- (5,312)
Accounts payable and
accrued expenses (147,008) (147,538)
Due to general partners
and affiliates (254) 528
Deferred income - loan
origination fees -- (7,257)
Deferred income - loan
modification fees (5,131) (5,131)
Security deposits (527) 1,162
Net cash provided by operating activities 319,142 234,553
Cash Flows from Investing Activities:
Additions to real estate -- (297,057)
Net cash used for investing activities -- (297,057)
Cash Flows from Financing Activities:
Distributions (507,842) (253,921)
Net cash used for financing activities (507,842) (253,921)
Net decrease in cash and
cash equivalents (188,700) (316,425)
Cash and cash equivalents
at beginning of period 2,131,720 2,373,818
Cash and cash equivalents at
end of period $ 1,943,020 $ 2,057,393
Notes to Financial Statements
General
The unaudited interim financial statements should be read in conjunction with
the Partnership's annual 1994 audited financial statements within Form 10-K.
The unaudited financial statements include all adjustments consisting of only
normal recurring accruals which are, in the opinion of management, necessary to
present a fair statement of financial position as of February 28, 1995 and the
results of operations, changes in partners' capital and cash flows for the
three months then ended. Results of operations for the period are not
necessarily indicative of the results to be expected for the full year.
No significant events have occurred subsequent to fiscal year 1994, and no
material contingencies exist, which would require disclosure in this interim
report per Regulation S-X, Rule 10-01, Paragraph (a)(5).
Part I, Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
The Partnership's investment portfolio currently consists of: (1) two mortgage
loans funded to Southridge Partners I ("Southridge") which are secured by two
apartment properties, Park View Village and Oaktree Village; and (2) two
apartment properties, Bryn Athyn Apartments and Chaparosa Apartments, which
were acquired by the Partnerships on July 14, 1989 and January 31, 1992,
respectively. The General Partners intend to operate the Bryn Athyn and
Chaparosa properties until such time as real estate market conditions indicate
favorable sales conditions.
Liquidity and Capital Resources
At February 28, 1995, the Partnership had cash and cash equivalents of
$1,943,020 which were invested in unaffiliated money market funds.
The General Partners are pursuing a settlement agreement with the manufacturers
of the polybutelene water pipes used in the construction of the Bryn Athyn
property. These pipes have been determined to be defective and have the
potential to leak at the connections. The General Partners anticipate reaching
a settlement in the first half of 1995. Costs to date on the repair work have
totalled $53,985. Any repair costs associated with the plumbing defects not
covered by the pending settlement are not expected to have a material impact on
the Partnership's operating results.
The General Partners declared a cash distribution of $5.00 per Unit for the
quarter ended February 28, 1995 which will be paid to investors on or about
April 18, 1995. A portion of this distribution will be funded from Partnership
cash reserves and reflects the General Partner's decision to gradually release
excess cash reserves in consideration of the completion of construction at the
Chaparosa property. The level of future distributions will be reviewed and
determined on a quarterly basis.
Results of Operations
Partnership operations for the three months ended February 28, 1995 generated
net income of $379,394 compared with net income of $306,062 for the
corresponding period in fiscal 1994. The increase is primarily due to higher
rental and interest income and lower property operating expenses.
Rental income totaled $599,942 for the three months ended February 28, 1995
compared with $546,119 for the corresponding period in fiscal 1994. This
increase is mainly attributable to increased occupancy and higher rental rates
at the Chaparosa property. Interest income totaled $24,926 for the three
months ended February 28, 1995 compared with $13,900 for the corresponding
period in fiscal 1994. The increase is primarily due to higher interest rates
earned on available cash balances.
Total expenses for the three months ended February 28, 1995 were $456,218
compared with $471,958 for the corresponding period in fiscal 1994. Property
operating expenses totaled $329,818 for the three months ended February 28,
1995 compared with $348,313 for the corresponding period in fiscal 1994. The
decrease is primarily due to a reduction in repairs and maintenance expense at
the Chaparosa property in 1995 as a result of the completion of repairs to the
property's sewer lines in 1994. The decrease at Chaparosa was partially offset
by increased expenditures at the Bryn Athyn property to repair the leaking
water pipes, discussed in "Liquidity and Capital Resources."
For the three months ended February 28, 1995 and 1994, average occupancy levels
at the Partnership's two properties and at the properties securing the
Partnership's equity participating loans were as follows:
Real Estate Investments 1995 1994
Bryn Athyn Apartments 95% 96%
Chaparosa Apartments 97% 90%
Mortgage Loan Investments:
Oaktree Village 96% 96%
Park View Village 94% 97%
PART II OTHER INFORMATION
Items 1-5 Not applicable
Item 6 Exhibits and Reports on Form 8-K.
(a) Exhibits - None
(b) Reports on Form 8-K - No reports on Form 8-K
were filed during the three month period
covered by this report.
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.
HUTTON/CONAM REALTY PENSION INVESTORS
BY: RPI REAL ESTATE SERVICES, INC.
General Partner
Date: April 13, 1995 BY: /s/ Paul L. Abbott
Name: Paul L. Abbott
Title: Director, President, Chief
Executive Officer and Chief
Financial Officer
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