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 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: 0-13330
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
Attention: Andre Anderson
(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
Consolidated Balance Sheets
May 31, November 30,
Assets 1995 1994
Investments in real estate:
Properties $ 10,450,002 $ 10,450,002
Less accumulated depreciation (1,721,503) (1,536,168)
Mortgage loan investments 9,675,900 9,675,900
Total investments in real estate 18,404,399 18,589,734
Cash and cash equivalents 1,911,266 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 55,917 54,447
Total Assets $ 22,245,682 $ 22,650,001
Liabilities and Partners' Capital
Liabilities:
Distribution payable $ 507,842 $ 507,842
Accounts payable and accrued expenses 113,029 228,662
Due to general partners and affiliates 25,518 25,675
Deferred income - loan modification fees 50,579 60,842
Security deposits 64,766 59,870
Total Liabilities 761,734 882,891
Partners' Capital:
General Partners 298,401 305,145
Limited Partners 21,185,547 21,461,965
Total Partners' Capital 21,483,948 21,767,110
Total Liabilities and
Partners' Capital $ 22,245,682 $ 22,650,001
Statement of Partners' Capital
For the six months ended May 31, 1995
General Limited
Partners Partners Total
Balance at December 1, 1994 $ 305,145 $ 21,461,965 $ 21,767,110
Net income 44,040 688,482 732,522
Cash distributions (50,784) (964,900) (1,015,684)
Balance at May 31, 1995 $ 298,401 $ 21,185,547 $ 21,483,948
Statements of Operations
Three months ended Six months ended
May 31, May 31,
Income 1995 1994 1995 1994
Rental $ 587,718 $ 566,894 $ 1,187,660 $ 1,113,013
Mortgage interest 205,613 205,613 411,226 411,226
Other interest 26,663 13,784 51,589 27,684
Loan origination fees 0 7,257 0 14,514
Loan modification fees 5,131 5,131 10,262 10,262
Total Income 825,125 798,679 1,660,737 1,576,699
Expenses
Property operating 351,841 308,890 681,659 657,203
Depreciation 92,667 100,748 185,335 192,787
General and
administrative 27,489 30,565 61,221 62,171
Total Expenses 471,997 440,203 928,215 912,161
Net Income $ 353,128 $ 358,476 $ 732,522 $ 664,538
Net Income Allocated:
To the General
Partners $ 25,070 $ 20,482 $ 44,040 $ 39,146
To the Limited
Partners 328,058 337,994 688,482 625,392
$ 353,128 $ 358,476 $ 732,522 $ 664,538
Per limited
partnership unit
(96,490 outstanding) $ 3.40 $ 3.50 $ 7.14 $ 6.48
Statements of Cash Flows
For the six months ended May 31, 1995 and 1994
Cash Flows from Operating Activities: 1995 1994
Net income $ 732,522 $ 664,538
Adjustments to reconcile
net income to net cash
provided by operating activities:
Depreciation 185,335 192,787
Increase (decrease) in cash arising
from changes in operating assets
and liabilities:
Interest receivable - deferred, net 0 12,407
Other assets (1,470) (18,867)
Accounts payable and accrued expenses (115,633) (58,881)
Due to general partners and affiliates (157) 3,315
Deferred income - loan origination fees 0 (14,514)
Deferred income - loan modification fees (10,263) (10,262)
Security deposits 4,896 5,439
Net cash provided by operating activities 795,230 775,962
Cash Flows from Investing Activities:
Additions to real estate 0 (408,005)
Net cash used for investing activities 0 (408,005)
Cash Flows from Financing Activities:
Distributions (1,015,684) (660,195)
Net cash used for financing activities (1,015,684) (660,195)
Net decrease in cash and cash equivalents (220,454) (292,238)
Cash and cash equivalents at
beginning of period 2,131,720 2,373,818
Cash and cash equivalents at
end of period $ 1,911,266 $ 2,081,580
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 which are, in the
opinion of management, necessary to present a fair statement of financial
position as of May 31, 1995 and the results of operations and cash flows for
the six months ended May 31, 1995 and 1994 and the statement of changes in
partners' capital for the six months ended May 31, 1995. Results of operations
for the periods are not necessarily indicative of the results to be expected
for the full year.
No significant events have occurred subsequent to fiscal year 1994, which
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 Partnership 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 May 31, 1995, the Partnership had cash and cash equivalents of $1,911,266
which were invested in unaffiliated money market funds.
With respect to the defective polybutelene water pipes used in the construction
of the Bryn Athyn property, the General Partners continue negotiations with the
Plumbing Claims Group to try and reach a settlement. The defective pipes have
resulted in significant leaks and will require a replumbing of the property.
Because it is necessary to complete the replumbing project before winter, the
General Partners' intend to proceed with the work while continuing settlement
negotiations. Year to date expenses related to pipe repairs have totaled
approximately $40,000 and are included in the property's operating expenses.
However, the General Partners' expect the majority of the cost of the
replumbing will be recovered from the Plumbing Claims Group.
Accounts payable and accrued expenses were $113,029 at May 31, 1995, compared
to $228,662 at fiscal year end 1994. The decrease is primarily a result of the
payment of real estate taxes on the Partnership's two wholly-owned properties
in December and the payment of 1994 audit expenses in the first quarter of
1995.
The General Partners declared a cash distribution of $5.00 per Unit for the
quarter ended May 31, 1995 which will be paid to the limited partners on or
about July 17, 1995. A portion of this distribution will be funded from
Partnership cash reserves and reflects the General Partners' 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 and six months ended May 31, 1995
generated net income of $353,128 and $732,522, respectively, compared with net
income of $358,476 and $664,538 for the corresponding periods in fiscal 1994.
The increase for the six month period is primarily due to higher rental and
interest income, partially offset by higher property operating expenses at Bryn
Athyn.
Rental income totaled $587,718 and $1,187,660 for the three and six months
ended May 31, 1995, respectively, compared with $566,894 and $1,113,013 for
the corresponding periods in fiscal 1994. This increase is mainly attributable
to increased occupancy and higher rental rates at the Chaparosa property.
Total expenses for the three and six months ended May 31, 1995 were $471,997
and $928,215, respectively, compared with $440,203 and $912,161 for the
corresponding periods in fiscal 1994. Property operating expenses totaled
$351,841 and $681,659 for the three and six months ended May 31, 1995,
respectively, compared with $308,890 and $657,203 for the corresponding periods
in fiscal 1994. The increase is primarily due to expenditures to repair
damages associated with the polybutelene pipes at Bryn Athyn, partially offset
by a decrease in repair and maintenance expenses at Chaparosa. For the three
and six months ended May 31, 1995 and 1994, average occupancy levels at the
Partnership's two wholly-owned properties and at the properties securing the
Partnership's equity participating loans were as follows:
Three Months Ended Six Months Ended
May 31, May 31,
Real Estate Investments 1995 1994 1995 1994
Bryn Athyn Apartments 95% 96% 95% 96%
Chaparosa Apartments 95% 95% 96% 93%
Mortgage Loan Investments
Oaktree Village 95% 94% 95% 95%
Park View Village 95% 94% 96% 95%
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: July 14, 1995
BY: /s/ Paul L. Abbott
Name: Paul L. Abbott
Title: Director, President, Chief
Executive Officer and Chief
Financial Office
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