4
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 1O-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended June 30, 1995 Commission file number 0-11578
AMERICAN REPUBLIC REALTY FUND I
(Exact name of registrant as specified in its charter)
WISCONSIN 39-1421936
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization Identification
Number)
16415 Addison Road, Suite 200
Dallas, Texas 75248
(Address of principal executive offices)
Registrant's telephone number, including area code: (214) 380-8000.
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: Y No:
REGISTRANT IS A LIMITED PARTNERSHIP
PART I
FINANCIAL INFORMATION
Item 1. Financial Statements
The following unaudited financial statements are filed herewith:
Balance Sheet......................................................Page 3
Statement of Income and Expenses...................................Page 4
(Quarterly)
Statement of Income and Expenses...................................Page 5
(Year to Date)
Statement of Partners' Equity......................................Page 6
Statement of Cash Flows............................................Page 7
Notes to Financial Statements......................................Page 8
The statements, insofar as they related to the period subsequent
to December 31, 1994, are unaudited.
AMERICAN REPUBLIC REALTY FUND I
BALANCE SHEET
June 30, 1995 June 30, 1994
Unaudited Audited
ASSETS:
Investment in realestate
Land $ 1,822,718 $ 1,822,718
Building & iimprovements 14,364,275 14,364,275
Furniture & fixtures 510,493 510,493
$16,697,486 $16,697,486
Less: accumulated depreciation (7,475,144) (7,175,144)
$ 9,222,342 $ 9,522,342
Cash including cash investments 52,151 107,289
Escrow deposits 244,847 146,065
Prepaid expenses 46,692 19,759
Other assets 8,000 0
Total assets $ 9,574,032 $ 9,795,455
Liabilities: and partner equity:
Mortgage and notes payable 8,330511 8,756,972
Notes payable to affiliates 3,164558 3122,696
Amounts due affiliates 1,107,230 1,275,226
Real estate taxes payable 101,040 1,328
Security deposits 53,474 56,540
Accounts payable & accrued 141,370 63,779
expenses
Total liabilities $12,898,183 $13,276,541
Partners equity (3,324,151) (3,481,086)
Total liabilities and partner $ 9,574,032 $ 9,795,455
equity
AMERICAN REPUBLIC REALTY FUND I
STATEMENT OF INCOME AND EXPENSES
(UNAUDITED)
Quarter Ended Quarter Ended
June 30, 1995 June 30, 1994
Income
Rentals $ 581,796 $ 550,809
Other 15,457 16,805
Total $ 597,253 $ 567,614
Expenses
Salaries & wages $ 70,885 $ 59,741
Maintenance & repairs 44,422 56613
Utilities 51,788 49,168
Real estate taxes 55,740 45,300
General & administrative 22,134 27,472
Contract services 23,132 18,435
Insurance 11,112 10,834
$ 279,213 $ 267,563
Interest $ 78,539 $ 32,500
Depreciation and amortization $ 150,000 $ 108,750
General partner fees:
Property management fees $ 29,856 $ 28,379
Total expenses $ 537,608 $ 437,192
Net income $ 59,645 $ 130,422
AMERICAN REPUBLIC REALTY FUND I
STATEMENT OF INCOME AND EXPENSES
(UNAUDITED)
Year to Date Year to Date
June 30,1995 June 30,1994
Income:
Rentals $1,162,060 $1,102,551
Other 26,870 28,384
Total $1,188,930 $1,130,935
Expenses:
Salaries & wages 129,938 91,379
Real estate taxes 101,040 90,600
Utilities 93,146 90,525
Maintenance & repairs 76,135 1,5443
Contract services 47,152 35,942
General & administrative 42,469 47,355
Insurance 22,796 20,764
$ 512,676 $ 492,008
Interest $ 159,880 $ 65,261
Depreciation and amortization $ 300,000 $ 217,500
General partner fees:
Property management fees $ 59,439 $ 56,987
Total expenses $1,031,995 $ 831,756
Net income $ 156,935 $ 299,179
AMERICAN REPUBLIC REALTY FUND I
STATEMENT OF CHANGES IN PARTNER'S EQUITY
THREE MONTHS ENDED JUNE 30, 1995
Total Limited General
Partners Partners
Balance April 1, 1995 $(3,383,796) $(3,435,653) $ 51,857
Net income (loss) 59,645 59,049 596
Balance June 30, 1995 $(3,324,151) $(3,376,604) $ 52,453
AMERICAN REPUBLIC REALTY FUND I
STATEMENT OF CASH FLOW
For The Quarter
Ended
June 30, 1995
Cash flows from operating activities:
Net income (loss) $ 59,645
Adjustments to reconcile net income to
Cash provided by operations:
Depreciation and amortization 150,000
Changes in assets and liabilities
Real estate taxes payable 55,740
Escrow deposits (1,840)
Due to affiliates (124,751)
Accounts payable and accrued expenses 762
Security deposits (3,431)
Prepaid expenses (40,224)
Total adjustments $ 36,256
Net cash provided by operating activities $ 95,901
Cash flows provided by investing activities
Net cash provided by investing activities 0
Cash flows provided by financing activities
Payments on mortgage payable (208,737)
Net cash provided by financing activities $(208,737)
Net increase (decrease) in cash
And cash equivalents $(112,836)
Cash and cash equivalents
Begining of quarter $ 164,987
Cash and cash equivalents
End of quarter $ 52,151
AMERICAN REPUBLIC REALTY FUND I
NOTES TO FINANCIAL STATEMENTS
Basis of Presentation:
Certain information and footnote disclosures normally
included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or
omitted pursuant to such rules and regulations, although the
Partnership believes that the disclosures are adequate to make
the information presented not misleading. It is suggested that
these condensed financial statements be read in conjunction with
the financial statements and notes thereto included in the
Partnership's latest annual report on Form 10-K.
Item 2. Managements Discussion and Analysis of Financial Condition and
Results of Operations.
Occupancy levels of the Partnership's properties as of July 2, 1995
are as follows:
Four Winds Apartments, Jacksonville, Florida 92.9%
Forestwood Apartments, Bedford, Texas 96.6%
Excess construction of new apartment units during the mid-
1980's affected the market areas where the Partnership properties
are located and an over supply of apartment units resulted in
lower rent and occupancy levels than originally anticipated. This
overbuilding coupled with tax law reform, which occurred in 1986,
has drastically slowed new construction. During 1994 the
Partnership's apartment communities experienced an increase in
revenues.
When the Partnership's properties were acquired interest
rates were substantially higher than they are today. By reducing
the rates through refinancing the properties the Partnership has
improved its cash flow. Large discounts were offered by past
lenders on the Partnership debt which has also improved the
Partnership's cash flow.
The Partnership successfully refinanced Four Winds in June,
1992. New South Federal Savings Bank loaned the Partnership
$2,750,000 collateralized by the Four Winds Apartments and a
guarantee of the General Partner. First Union National Bank
obtained the proceeds of the new loan plus a $350,000 Surplus
Cash Mortgage Note in full satisfaction of its debt. In addition
to guaranteeing this new loan the General Partner loaned an
additional $100,000 to the Partnership to complete the refinance.
In 1994 the Partnership obtained an assignment of the Surplus
Cash Mortgage Note at a discounted price of $120,000.
The current problems in today's real estate market were
caused by overbuilding and the Tax Reform Act of 1986.
Management intends to continue to operate the Partnership in its
present form while investigating options to improve the
Partnership's operations. The operations and value of the two
remaining Partnership properties are such that your General
Partner is not optimistic that you have any equity. However
since you have had substantial tax deductions from the
Partnership's losses it is prudent to keep the Partnership in
operation as long as possible to avoid adverse tax consequences
to Limited Partners today. The refinancing of both Partnership
properties allows the Partnership to continue operating for
another five years with the hope that we continue to see
increases in rental income as a result of improved market
conditions. The 1994 financial statements show an improvement in
operations over 1993 primarily due to reduction in interest
expense and an increase in operating revenues.
On August 1, 1989, an affiliate of the General Partner
loaned the Partnership $350,000 which was used to pay off certain
debt at a discount. The discount resulted in a gain to the
Partnership on forgiveness of debt totaling $424,538. The loan
accrues interest at the rate of two percent over the prime rate.
In February, 1991, Amrecorp Realty Inc., resigned as the
Managing General Partner of the Partnership. As was communicated
to all limited partners this step was taken in order to minimize
any effect that Amrecorp's financial difficulties might have on
the Partnership. Management of the Partnership's assets is
performed by Univesco, Inc., a Texas corporation, Robert J.
Werra, President.
During the first quarter of 1993, the partnership was able
to secure a new mortgage on Forestwood Apartments in Bedford,
Texas. The partnership secured a $4,300,000, 9.125%, five year
mortgage with Collateral Mortgage, Ltd. Under the agreement
American Republic Realty Fund I paid $4,300,000 and gave a
$200,000 promissory note to Lincolnshire Associates in full
satisfaction of its previous mortgage obligation. Lincolnshire
Associates was paid in full during 1993.
Item 1. Legal Proceedings
Item 2. Changes in Securities
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
(a) The following documents are filed herewith or
incorporated herein by reference as indicated as Exhibits:
Exhibit Designation Document Description
2 Certificate of Limited
partnership, as amended,
incorporated by reference
to Registration Statement
No. 2-81074 effective May
2, 1983.
Limited Partnership
Agreement, incorporated
by reference to
Registration Statement
No.2-81074 effective May
2, 1983.
11 Not applicable.
15 Not applicable.
18 Not applicable.
19 Not applicable.
2O Not applicable.
23 Not applicable.
24 Not applicable.
25 Power of Attorney,
incorporated by reference
to Registration Statement
No. 2-81074 effective May
2, 1983.
28 None
(b) Reports on Form 8-K for the quarter ended June 30, 1995.
1 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.
AMERICAN REPUBLIC REALTY FUND I, a
Wisconsin limited partnership
By: /s/ Robert J. Werra
Robert J. Werra, General Partner
Date: August 11, 1995
