<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10 - Q
Annual Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarterly Period
Ended September 30, 1995 Commission File No.: 2-80756
INDEPRO PROPERTY FUND I, L.P.
-------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
600 Dresher Road, Horsham, PA 19044
-------------------------------------------------------------------
(Address of principal executive offices and zip code)
DELAWARE 51-0265801
------------------------------- -----------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
(215) 956-0400
-------------------------------------------------------------------
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
None
Securities registered pursuant to Section 12(g)of the Act:
Limited Partnership Interests
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 for the
past 90 days.
YES X NO
---- ----
There is no public market for the Limited Partnership Interests.
Non-affiliates hold 23,579 Limited Partnership Interests
as of September 30, 1995.
<PAGE>
INDEPRO PROPERTY FUND I, L.P.
INDEX OF FINANCIAL STATEMENTS
Page Number
----------
Part I - Financial Information
Item 1 - Consolidated Financial Statements
Consolidated Balance Sheets, as of September 30, 1995
and December 31, 1994 3
Consolidated Statements of Income, for the three and nine
months ended September 30, 1995 and 1994 4
Consolidated Statement of Partners' Capital for the nine
months ended September 30, 1995 5
Consolidated Statements of Cash Flows, for the nine months
ended September 30, 1995 and 1994 6
Notes to Consolidated Financial Statements 7-8
Item 2 - Management's Discussion and Analysis of Financial
Condition and Results of Operations 9-12
Part II - Other Information 13
2
<PAGE>
INDEPRO PROPERTY FUND I, L.P. AND SUBSIDIARY
(A Delaware Limited Partnership)
CONSOLIDATED BALANCE SHEETS
As of September 30, 1995 and December 31, 1994
<TABLE>
<CAPTION>
September 30, December 31,
1995 1994
---- ----
Assets
<S> <C> <C>
Investments in real estate at cost (note 3) $8,991,515 $8,913,733
Less: Accumulated depreciation and amortization 3,542,025 3,144,977
---------- ----------
Total investments 5,449,490 5,768,756
Cash and cash equivalents 701,979 2,226,528
Accounts receivable (net of allowance for doubtful
accounts of $30,858 in 1995 and $22,996 in 1994) 571,373 421,224
Prepaid expenses and other assets (net of accumulated
amortization of $4,250 in 1995 and $7,859 in 1994) 115,468 114,520
---------- ----------
Total Assets $6,838,310 $8,531,028
========== ==========
Liabilities and Partners' Capital
Notes payable 554,228 605,814
Capital lease obligation 15,279 23,438
Due to general partner and affiliates 36,893 119,307
Accrued liabilities 149,517 194,108
Advance deposits 11,858 7,614
---------- ----------
Total Liabilities 767,775 950,281
---------- ----------
Partners' capital 6,070,535 7,580,747
---------- ----------
Total liabilities and partners' capital $6,838,310 $8,531,028
========== ==========
</TABLE>
The accompanying notes are an integral part of the
consolidated financial statements.
3
<PAGE>
INDEPRO PROPERTY FUND I, L.P. AND SUBSIDIARY
(A Delaware Limited Partnership)
CONSOLIDATED STATEMENTS OF INCOME
For the three and nine months ended September 30, 1995 and 1994
<TABLE>
<CAPTION>
Three months Three months Nine months Nine months
Ended Ended Ended Ended
Sept. 30, 1995 Sept. 30, 1994 Sept. 30, 1995 Sept. 30, 1994
-------------- -------------- -------------- --------------
Income
<S> <C> <C> <C> <C>
Hotel revenues $ 1,294,317 $ 1,285,162 $ 3,548,928 $ 3,645,421
Hotel cost of revenues 476,597 488,439 1,337,599 1,422,600
----------- ----------- ----------- -----------
Gross profit from hotel operations 817,720 796,723 2,211,329 2,222,821
Equity income of joint venture -- (3,612) -- 1,413,764
Investment income 4,139 33,449 53,411 71,397
Miscellaneous income -- 660 -- 882
----------- ----------- ----------- -----------
Total income 821,859 827,220 2,264,739 3,708,864
----------- ----------- ----------- -----------
Expenses
Property operating expenses 255,476 263,509 749,254 761,937
Depreciation and amortization 133,762 128,727 398,441 384,892
Real estate taxes 51,815 51,497 171,056 162,431
Administrative 32,512 25,046 69,181 56,520
Repairs and maintenance 24,721 22,774 80,790 83,105
Insurance 13,001 14,568 50,425 62,723
Provision for doubtful accounts 1,730 3,385 10,212 16,195
Write-off of other assets -- 106,620 10,720 106,620
Interest expense 12,292 13,965 37,898 42,636
----------- ----------- ----------- -----------
Total expenses 525,308 630,091 1,577,977 1,677,059
----------- ----------- ----------- -----------
Net Income $ 296,552 $ 197,129 $ 686,762 $ 2,031,805
=========== =========== =========== ===========
Net income allocated to Limited
Partners $ 293,586 $ 195,158 $ 679,894 $ 2,011,487
Net income allocated to General
Partner 2,966 1,971 6,868 20,318
----------- ----------- ----------- -----------
$ 296,552 $ 197,129 $ 686,762 $ 2,031,805
=========== =========== =========== ===========
Net income per Limited Partnership
interests outstanding (30,000) $ 10 $ 7 $ 23 $ 67
=========== =========== =========== ===========
</TABLE>
The accompanying notes are an integral part of the
consolidated financial statements.
4
<PAGE>
INDEPRO PROPERTY FUND I, L.P. AND SUBSIDIARY
(A Delaware Limited Partnership)
CONSOLIDATED STATEMENTS OF PARTNERS' CAPITAL
For the nine months ended September 30, 1995
<TABLE>
<CAPTION>
Limited
General Partnership
Partner Units Total
----------- ----------- -----------
<S> <C> <C> <C>
Partners' capital at January 1, 1995 $ 771,190 $ 6,809,557 $ 7,580,747
Net income for the quarter ended March 31, 1995 854 84,527 85,381
Cash distributions from operations (2,274) (225,000) (227,274)
----------- ----------- -----------
Partners' capital at March 31, 1995 769,770 6,669,084 7,438,854
Net income for the quarter ended June 30, 1995 3,048 301,781 304,829
Cash distributions from operations (17,426) (1,725,000) (1,742,426)
----------- ----------- -----------
Partners' capital at June 30, 1995 755,392 5,245,865 6,001,257
Net income for the quarter ended September 30, 1995 2,966 293,586 296,552
Cash distributions from operations (2,274) (225,000) (227,274)
----------- ----------- -----------
Partners' capital at September 30,1995 $ 756,084 $ 5,314,451 $ 6,070,535
=========== =========== ===========
</TABLE>
The accompanying notes are an integral part of the
consolidated financial statements.
5
<PAGE>
INDEPRO PROPERTY FUND I, L.P. AND SUBSIDIARY
(A Delaware Limited Partnership)
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 1995 and 1994
<TABLE>
<CAPTION>
Nine months Nine months
Ended Ended
Sept. 30, 1995 Sept. 30, 1994
--------------- --------------
Cash flows from operating activities:
<S> <C> <C>
Net income $ 686,762 $ 2,031,805
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 398,441 384,892
Write-off of other assets 10,720 106,620
Change in assets and liabilities:
Increase in accounts receivable (150,149) (171,361)
Increase in prepaid expenses (13,062) (4,420)
Decrease in accrued liabilities (44,591) (87,537)
Increase in advance deposits 4,245 5,087
Increase (decrease) in amounts due to general
partner and affiliates (82,414) 105,650
----------- -----------
Net cash provided by (used in) operating activities 809,952 2,370,736
----------- -----------
Cash flows from investing activities:
Distributions received from joint venture in excess of
equity in earnings -- 1,744,464
Additions to real estate (77,782) (185,836)
----------- -----------
Net cash provided by (used in) investing activities (77,782) 1,558,628
----------- -----------
Cash flows from financing activities:
Repayment of notes payable (51,586) (47,453)
Repayment of capital lease obligation (8,159) (7,422)
Distributions to partners from operations (2,196,974) (909,090)
Distributions to partners from sale of Lincoln Oaks -- (2,950,904)
----------- -----------
Net cash (used in) financing activities (2,256,719) (3,914,869)
----------- -----------
Net increase (decrease) in cash and cash equivalents (1,524,549) 14,495
Cash and cash equivalents, beginning of period 2,226,528 2,257,939
----------- -----------
Cash and cash equivalents, end of period $ 701,979 $ 2,272,434
=========== ===========
</TABLE>
The accompanying notes are an integral part of the
consolidated financial statements.
6
<PAGE>
INDEPRO PROPERTY FUND I, L.P.
NOTES TO FINANCIAL STATEMENTS
As of September 30, 1995
1. General
The preceding unaudited financial information sets forth the operations of
Indepro Property Fund I, L.P. for the nine months ended September 30,
1995. In the opinion of Management, the financial statements reflect all
adjustments necessary to present fairly the results of operations for the
nine months ended September 30, 1995.
Footnotes are presented pursuant to Rule 10-01 of Regulation S-X and do
not include complete financial information otherwise made in the Form 10 -
K. These interim financial statements should be read in conjunction with
the Form 10 - K for the year ended December 31, 1994.
2. Partners' Capital
Indepro Property Fund I, L.P. made distributions of $227,274 in March 1995
relating to the operations for the fourth quarter of 1994, $227,274 in May
1995 relating to the operations for the first quarter of 1995 and $227,274
in August 1995 relating to operations for the second quarter of 1995. In
addition, on May 15, 1995, the Partnership distributed excess cash
reserves totaling $1,515,152. Pennsylvania withholding taxes that were
paid by Indepro Property Fund I, L.P. on the partners behalf were deducted
from the quarterly distributions. The General Partner expects to make a
distribution of approximately $227,000 in the fourth quarter of 1995.
The General Partner is obligated under the terms of the Partnership
Agreement to make capital contributions upon the Partnership's dissolution
in the amount necessary to enable the Partnership to pay to each Limited
Partner an 8% non-compounded return on the unrecovered capital
contribution of the Limited Partner, less all distributions of
distributable cash and all distributions of sale or refinancing proceeds
in excess of the capital contributions of the Limited Partner. This
guaranteed return is computed from the date of each Limited Partner's
admission to the Partnership. This obligation does not guarantee to the
Limited Partners a return of their capital contributions and is limited by
the available assets of the Partnership and the General Partner.
3. Investment in Real Estate
Investment in real estate consisted of the following as of September
30,1995:
<TABLE>
<CAPTION>
Building and
Property Land Improvements Total
-------- ---- ------------ -----
<S> <C> <C> <C>
Brunswick Hotel and Conference Center $ 285,000 $8,706,515 $8,991,515
Less: Accumulated Depreciation 0 3,542,025 3,542,025
---------- ---------- ----------
Total $ 285,000 $5,164,490 $5,449,490
========== ========== ==========
</TABLE>
7
<PAGE>
INDEPRO PROPERTY FUND I, L.P.
NOTES TO FINANCIAL STATEMENTS
As of September 30, 1995
3. Investments in Real Estate (continued)
On at least an annual basis, the General Partner prepares an estimate of
value for the property in the Partnership. The methodology used is either a
discounted cash flow analysis or a value based on a direct capitalization of
net operating income. This information is used to assist the General Partner
in determining net realizable value of the assets of the Partnership. A
valuation allowance is provided for assets in cases where the net realizable
value is less than the carrying amount of the asset. In addition, assets are
reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount of the asset may not be recoverable.
4. Cash Flow Information
Net cash provided by operating activities reflects cash payments for
interest of $38,028 and $42,636 respectively, during the nine months ended
September 30, 1995 and September 30, 1994.
For purposes of the Consolidated Statements of Cash Flows, the Partnership
considers highly liquid debt instruments purchased with a maturity of three
months or less to be cash equivalents.
5. Concentration of Credit Risk
The Partnership's operations consist solely of ownership of a hotel located
in Lancaster, Pennsylvania. The Partnership maintains adequate levels of
property and liability insurance for the hotel. The Partnership's hotel
customers primarily include governmental agencies, and to a lesser extent,
corporate travelers and tourists. The Partnership performs credit
evaluations of its customers and generally does not require collateral.
The Partnership invests its excess cash primarily through a major commercial
bank. Cash available in these accounts may at times exceed FDIC insurance
limits.
6. Investment in Joint Venture
The Partnership previously invested in a Joint Venture which was accounted
for under the equity method. The property in this joint venture was sold on
June 22, 1994 for a gain of $1,434,295 and a loss of $106,620 was recorded
related to the write off of the remaining balance of capitalized fees paid
in connection with the acquisition of the Partnership's interest in the
joint venture. The following is a summary of the results of operations of
the Joint Venture for the nine months ended September 30, 1994:
September 30,
1994
Revenues $ 533,133
Gain on Sale 1,536,915
Operating Expenses 590,914
-----------
Net Income $ 1,479,134
===========
Partnership's equity in net income
(loss) $ 1,413,764
===========
8
<PAGE>
INDEPRO PROPERTY FUND I, L.P. AND SUBSIDIARY
(A Delaware Limited Partnership)
Part I, Item 2
Management's Discussion and Analysis of Financial Condition and Results of
Operations
Results of Operations
The Partnership's net income for the nine months ended September 30, 1995 was
$686,762, a decrease of $1,345,043 from the same period of the prior year. The
September 30, 1994 results reflected the gain on the sale of the Lincoln Oaks
Apartments on June 22, 1994 of $1,434,295, offset partially by a loss of
$106,620 related to the write-off of the remaining balance of capitalized fees
paid in connection with the acquisition of the Partnership's interest in the
joint venture. Excluding the effects of the Lincoln Oaks transaction, the
Partnerships net income decreases by $17,368 for the period. (See discussion
under individual property headings below.)
Brunswick Hotel and Conference Center
The Brunswick Hotel and Conference Center (the Hotel) is a 227 room hotel
located in downtown Lancaster, Pennsylvania. It recently has served three main
client segments which are the U.S. Government, tourist and corporate. Income
attributable to the Brunswick Hotel decreased from $711,951 for the nine months
ended September 30, 1994 to $691,290 for the nine months ended September 30,
1995 due to decline in occupancy rates. Occupancy rates declined from an average
of 79.2% for the nine months ended September 30, 1994 to an average of 77.3% for
the nine months ended September 30, 1995. This decline in occupancy was
primarily attributable to the cancellation of several Army classes and the fact
that the OPM business was slower than anticipated during the first three months
of the year. These factors caused a decline in revenue of approximately $96,493
from the same period of the prior year. The Government business with both the
Army and OPM recovered during the second and third quarters of 1995 with the
shifting of some of the classes scheduled for first quarter into the second and
third quarters. The decline in revenue was partially offset by a decrease in
cost of sales of approximately $85,002.
The Brunswick Hotel property also includes an adjacent conference center. Prior
to 1991, this space was primarily a retail mall. In 1991, the Partnership
converted a portion of the upper level Mall to office space for the Army. In
addition, the lower level Mall was converted to additional conference facilities
and office space for the Office of Personnel Management (OPM). Hotel room night
charges generally include a provision for the use of the office and conference
space. The Hotel does not separately charge customers for these facilities in
most cases. The remaining mall retail space does not generate revenues that are
significant to the operations of the Hotel. The Hotel's lease with the adjacent
United Artist Theater expires in November, 1995, and the operators of the
theater have indicated that they do not intend to renew or extend their lease
beyond its current term. Annual revenues from the Theater of approximately
$41,000 are not significant to the operations of the hotel.
In October 1990, the Partnership contracted with two agencies of the U.S.
Government to provide training facilities and rooms. The Department of Defense
(the Army) has guaranteed a minimum of 11,000 room nights per year of the
agreement. The current agreement grants to the Army two one-year options
expiring on September 30, 1997. The U.S. Army has booked approximately 18,000
room nights for the fiscal year ended September 30, 1995 and approximately
15,100 room nights for the fiscal year ended September 30, 1996. The lease is
terminable by the Army at any time by giving at least sixty days prior written
notice, subject to the guaranty provisions in the lease.
9
<PAGE>
Management's Discussion and Analysis of Financial Condition and Results of
Operations (Continued)
Results of Operations (continued)
Brunswick Hotel and Conference Center (continued)
In addition, the U.S. Government's Office of Personnel Management ("OPM") was
offered three six month options extending through May, 1996. OPM has exercised
all three consecutive six month options. OPM has booked approximately 22,000
room nights for the period ending September 30, 1995 and approximately 23,600
room nights for the period ending September 30, 1996. Historically, OPM has
canceled less than 5% of rooms booked.
In 1992, the Office of Personnel Management closed its training and conference
facility in King's Point, New York and relocated the majority of this business
to the Brunswick Hotel and Conference Center in Lancaster, Pennsylvania. OPM
expressed a further commitment to the facility in Lancaster by closing another
training center in Oak Ridge, Tennessee in January 1995 and relocating personnel
and equipment to the Brunswick Hotel. There are currently fourteen full-time
employees occupying space in the OPM offices with plans for further expansion
under review. The Hotel is currently developing plans to schedule an additional
track of classes for OPM that would run throughout this year. Denver, Colorado
and Lancaster, Pennsylvania are now the two primary training facilities for the
OPM with the OPM offices in Lancaster having the distinction of being the
reservation center for all training including those classes held in the Denver
location.
Lincoln Oaks
Lincoln Oaks Apartments (Phase I) in Fort Worth, Texas, was sold on June 22,
1994. Accordingly, no equity income was recognized for the nine months ended
September 30, 1995. Equity income for the nine months ended September 30, 1994
was $1,413,764, which reflected a gain of $1,434,295 from the sale of the
apartments, partially offset by a loss of $106,620 related to the write off of
the remaining balance of capitalized fees paid in connection with the
acquisition of the Partnership's interest in the joint venture.
Liquidity and Capital Resources
As of September 30, 1995, the Partnership had cash and cash equivalents totaling
$701,979, in comparison with $2,226,528 at December 31, 1994 and $2,272,431 at
September 30, 1994. The decrease in cash is due to the distribution of excess
cash reserves of $1,515,152 in May 1995. Management believed that this cash was
no longer needed for capital improvements at the Brunswick Hotel.
Since 1989, competition to the Hotel has increased dramatically as more than ten
new hospitality facilities have opened, adding many additional new rooms to the
marketplace. In order to remain competitive with the other hotels in the area
for business in the government, corporate and tourist segments, an upgrading of
the Hotel began in 1991 and continues in 1995. These renovations have included
upgrades to most guest rooms, renovations of the lobby and other common areas,
and replacement of the boiler and laundry equipment. During 1993, the Hotel
spent approximately $381,000 to install a complete sprinkler system in all guest
rooms and common areas. Approximately $64,000 was spent during 1994 to complete
this sprinkler work. In addition, approximately $245,000 was spent during 1994
for the replacement of bedding, carpet, and other room fixtures. The General
Partner has budgeted approximately $150,000 to be spent in 1995 for the
continued upgrading of the Hotel rooms and an additional $50,000 will be spent
during 1995 for work that was completed during 1994. Approximately $77,800 of
the amounts budgeted for 1995 was expended in the nine months ended September
30, 1995. These 1995 improvements are being funded through cash flows from
operations.
10
<PAGE>
Management's Discussion and Analysis of Financial Condition and Results of
Operations
Liquidity and Capital Resources (continued)
During 1991, the Hotel obtained third party financing in the form of a
promissory note to fund the major renovations to the Hotel and Mall. On August
12, 1993, this promissory note was refinanced from a 10.7% interest rate to an
8.25% interest rate. The balance of this loan as of September 30, 1995 was
$554,228.
The General Partner believes that cash flows from operations will be adequate to
fund both debt service and the remainder of 1995 improvements.
On June 22, 1994, Lincoln Oaks I, Fort Worth Ltd., (the "Joint Venture"), a
joint venture in which Indepro Property Fund I, L.P. (the "Registrant") had a
50% interest, including certain significant priorities and preferences in the
event of sale, conveyed title to Lincoln Oaks Apartments (Phase I) to South West
Properties, L.P., (the "Purchaser"). Lincoln Oaks Apartments is a 248 unit
garden apartment complex located on approximately 10 acres in Fort Worth, Texas.
In accordance with the joint venture agreement, the net sales proceeds of
$3,193,000 were distributed to the Partnership. The Partnership distributed the
net sales proceeds, less $90,900 due to the Advisor for its purchase of the
preferred return, to the Limited Partners on July 28, 1994 in a distribution of
$97.38 per unit.
The sale of Lincoln Oaks Apartments will not have a material ongoing impact on
the net income of the Partnership. The Partnership had been receiving cash
distributions averaging approximately $150,000 each year for the past three
years from its investment in Lincoln Oaks. The General Partner does not believe
that the loss of these cash flows will result in a change in the level of the
quarterly distribution in the future.
With the sale of Lincoln Oaks on June 22, 1994, the Brunswick Hotel is now the
sole remaining property owned by the Partnership. The General Partner has
engaged the Grubb and Ellis Hospitality Group to assist in the marketing and
sale of the Brunswick Hotel. The General Partner is currently negotiating with a
prospective buyer and anticipates that a sale will be completed in the first
quarter of 1996. In accordance with the Partnership Agreement, the Partnership
is expected to be dissolved upon the sale of the Brunswick Hotel, unless all or
a portion of the purchase price is payable on a deferred basis.
11
<PAGE>
Management's Discussion and Analysis of Financial Condition and Results of
Operations (Continued)
Liquidity and Capital Resources (continued)
Distributions
Indepro Property Fund I, L.P. made a distribution of $227,274 in March 1995
relating to the operating results for the fourth quarter of 1994, $227,274 in
May 1995 related to the operating results for the first quarter of 1995, and
$227,274 in August 1995 related to the operating results for the second quarter
of 1995. In addition, a distribution of excess cash reserves of $1,515,152 was
made on May 15, 1995. Management believed that this cash was no longer needed
for capital improvements at the Brunswick Hotel. Pennsylvania withholding taxes
that were paid by Indepro Property Fund I, L.P. on the partners behalf were
deducted from the quarterly distributions. The General Partner expects to make a
distribution of approximately $227,000 in the fourth quarter of 1995.
The General Partner is obligated under the terms of the Partnership agreement to
make capital contributions upon the Partnership's dissolution in the amount
necessary to enable the Partnership to pay to each Limited Partner an 8%
non-compounded return on the unrecovered capital contribution of the Limited
Partner, less all distributions of distributable cash and all distributions of
sale or refinancing proceeds in excess of the capital contributions of the
Limited Partner. This guaranteed return is computed from the date of each
Limited Partner's admission to the Partnership. This obligation does not
guarantee to the Limited Partners a return of their capital contributions and is
limited by the available assets of the Partnership and the General Partner. As
of September 30, 1995, the estimated amount of this obligation to the Limited
Partners (excluding the General Partner's Limited Partnership Units) was
approximately $3,062,389. The Partnership had cash of $701,979 at September 30,
1995. If the General Partner distributed this cash, the Limited Partners' share
would have been $546,215, which would have reduced the amount of this obligation
to $2,516,174. The General Partner has cash of $2,053,358, demand notes of
$1,400,000, and would have $155,764 of its share of Partnership cash for a total
of $3,609,122 available to satisfy the remaining obligation. This does not
include the value of the General Partner's investment in the Partnership or any
estimated proceeds from disposal of the Brunswick Hotel which would be
distributed to the General Partner. Future operations of the Partnership may
impact the ability of the Partnership and the General Partner to satisfy this
obligation. In addition to its various initiatives to improve the financial
condition of the Partnership as discussed herein, the General Partner is
considering the potential benefits and liabilities, and their impact on the
Limited Partners, of sale of the Brunswick Hotel, the sole remaining property in
the Partnership, and the ultimate dissolution and liquidation of the
Partnership. The Hotel is currently listed for sale with Grubb and Ellis and the
General Partner is negotiating with a prospective buyer for a possible sale in
the first quarter of 1996.
Inflation
The rate of inflation during the three most recent years has been low. Low rates
of inflation combined with increased market competition generally produce an
environment in which rental rate increases are relatively modest. The Brunswick
Hotel has not experienced significant increases in major expenditures since
inflation has been offset by more effective expense management. In the markets
in which the Brunswick Hotel competes, it is not feasible to pass on all
increasing costs in the form of higher room rates.
In the past, it was assumed that inflation would result in capital appreciation
in investment properties through increases in rental rates and replacement costs
in comparison with new properties. During the term in which the Brunswick Hotel
has been owned by the Partnership, inflation has been modest and capital
appreciation as a result of inflation has not occurred.
12
<PAGE>
INDEPRO PROPERTY FUND I, L.P.
(A Delaware Limited Partnership)
PART II
OTHER INFORMATION
ITEM 1. Legal Proceedings
None
ITEM 2. Changes in Securities
None
ITEM 3. Defaults Upon Senior Securities
Not applicable
ITEM 4. Submission of Matters to a Vote of Security Holders
Not applicable
ITEM 5. Other Information
None
ITEM 6. Exhibits and Reports on Form 8 - K
No reports were filed on Form 8 - K during the quarter ended
September 30, 1995.
13
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 12 of 15(d) 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.
INDEPRO PROPERTY FUND I, L.P.
By: Indepro Property Fund I Corp.,
General Partner
By: /s/ Wayne L. Harris
-------------------------------
Wayne L. Harris
Vice President
Date: November 13, 1995 By: /s/ Ann M. Strootman
------------------------
Ann M. Strootman
Controller
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 701,979
<SECURITIES> 0
<RECEIVABLES> 602,231
<ALLOWANCES> (30,858)
<INVENTORY> 0
<CURRENT-ASSETS> 1,388,820
<PP&E> 8,991,515
<DEPRECIATION> 3,542,025
<TOTAL-ASSETS> 6,838,310
<CURRENT-LIABILITIES> 213,547
<BONDS> 554,228
<COMMON> 0
0
0
<OTHER-SE> 6,070,535
<TOTAL-LIABILITY-AND-EQUITY> 6,838,310
<SALES> 3,548,928
<TOTAL-REVENUES> 3,602,339
<CGS> 1,337,599
<TOTAL-COSTS> 1,337,599
<OTHER-EXPENSES> 1,540,079
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 37,898
<INCOME-PRETAX> 686,762
<INCOME-TAX> 0
<INCOME-CONTINUING> 686,762
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 686,762
<EPS-PRIMARY> 23
<EPS-DILUTED> 23
</TABLE>
