3
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended March 31, 1996 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 (IRS Employer
incorporation or organization Identification
Number)
6210 Campbell Road Suite 140
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
<PAGE>
TABLE OF CONTENTS
Item 1. Financial Statements
The following Unaudited financial statements are filed
herewith:
Consolidated Balance Sheet as of March 31, 1996
and December 31, 1995 Page 3
Consolidated Statements of Operations for the
Three Months Ended March 31, 1996 and 1995 Page 4
Consolidated Statements of Cash Flows for the
Three Months Ended March 31, 1996 and 1995 Page 5
Notes to Consolidated Financial Statement Page 6
Item 2. Results of Operations and Management's
Discussion and Analysis of Financial Condition Page 7
Liquidity and Capital Resources Page 8
Other Information Page 9
Signatures Page 10
The statements, insofar as they relate to the period
subsequent to December 31, 1995, are Unaudited.
<PAGE>
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements
AMERICAN REPUBLIC REALTY FUND I
Condensed Consolidated Balance Sheets
March 31, December 31,
1996 1995
(Unaudited)
ASSETS
Real Estate assets, at cost $1,822,718 $1,822,718
Land 14,925,164 14,925,164
Buildings and improvements 16,747,882 16,747,882
Less: Accumulated depreciation (7,948,822) (7,793,822)
Real Estate, net 8,799,060 8,954,060
Cash including cash investments 36,280 19,047
Escrow deposits 192,412 102,508
Prepaid Expenses 13,314 23,596
Other assets 8,000 0
TOTAL ASSETS $9,049,066 $9,099,211
LIABILITIES AND PARTNERS' EQUITY:
LIABILITES
Mortgage and notes payable $7,798,774 $7,998,325
Note Payable toaffiliates 2,982,525 3,108,081
Amounts due affiliates 1,153,585 1,120,323
Real estate taxes payable 46,900 0
Security deposits 51,151 51,418
Accounts payable & accrued expenses 155,443 54,262
Total liabilities 12,188,378 12,332,409
PARTNERS CAPITAL (DEFICIT)
Limited Partners (3,193,614) (3,286,561)
General Partner 54,302 53,363
Total Partners Capital (Deficit) (3,139,312) (3,233,198)
TOTAL LIABILITES AND PARTNER DEFICIT $9,049,066 $9,099,211
See notes to Condensed Consolidated Financial Statements
<PAGE>
AMERICAN REPUBLIC REALTY FUND I
Condensed Consolidated Statement of Operations
(Unaudited)
Three Months
Ended
March 31,
REVENUES 1996 1995
Rental income $595,630 $580,264
Other property 6,687 11,413
Total revenues 602,317 591,677
EXPENSES
Salaries & wages 62,823 59,133
Maintenance & repairs 34,239 31,714
Utilities 44,591 41,358
Real estate taxes 60,900 45,300
General administrative 20,443 20,255
Contract services 20,214 24,020
Insurance 11,321 11,684
Interest 68,480 81,341
Depreciation and amortization 155,000 150,000
Property management fees (a) 30,420 29,582
Total expenses 508,431 494,387
NET INCOME (LOSS) $93,886 $97,290
NET INCOME PER UNITS $8.54 $8.84
See Notes to Condensed Consolidated Financial Statements
<PAGE>
AMERICAN REPUBLIC REALTY FUND I
Condensed Consolidated Statement of Cash Flows
Three Months Ended
March 31,
1996 1995
CASH FLOWS FROM OPERATING ACITIVTY
Net income (loss) $93,886 $97,290
Adjustments to reconcile net income (loss) to
net cash
provided by operating activities:
Depreciation and amortization 155,000 150,000
Net Effect of changes in operating accounts
Escrow deposits (89,904) (96,942)
Prepaid expenses 10,282 13,291
Accrued real estate taxes 46,900 43,972
Security deposits (267) 365
Accounts payable 101,181 76,829
Other assets (8,000) (8,000)
Net cash provided by (used for) operating 309,078 276,805
activities
CASH FLOWS FROM INVESTING ACTIVITES
Repayment of mortgage notes payable (199,551) (217,724)
Repayment of notes payable to affiliates (125,556)
Proceeds from amounts due affiliates 33,262 41,862
Repayment of amounts due affiliates (43,245)
Net cash used for investing activities (291,845) (219,107)
NET INCREASE (DECREASE) IN CASH AND CASH 17,233 57,698
EQUVILENTS
CASH AND CASH EQUIVELNTS, BEGINNING OF PERIOD 19,047 107,289
CASH AND CASH EQUIVELNTS, END OF PERIOD $36,280 $164,987
See Notes to Condensed Consolidated 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.
<PAGE>
Item 2. RESULTS OF OPERATIONS AND MANAGEMENT'S DISCUSSION
AND ANALYSIS OF FINANCIAL CONDITION
Results of Operations
FIRST QUARTER 1996 COMPARED TO FIRST QUARTER 1995
At March 31, 1996 the Partnership owned two properties with
approximately 416,623 net rentable square feet. Both
properties are apartment communities. The portfolio had an
average occupancy of 90.25% for the first three months of
1996, as compared to 93.35% for the first three months of
1995.
Revenue from property operations increased $10,640, or
1.80%, for the first quarter of 1996, as compared to the
1995 first quarter. The decrease in other income of $4,726
or 41.41% is primarily due to a reduction in late and
returned check charges from the prior year. The following
table illustrates the components:
Increase
(Decrease)
Rental income 15,366
Other property (4,726)
10,640
Property operating expenses increased $14,044, or 2.84%, for
the first quarter of 1996, as compared to the same period in
1995, primarily due to increases in real estate tax
expense, offset by decreases in interest expense and
contract service expense.
The increase in real estate taxes of $15,600 or 34.44%
is due to increases in property valuation and anticipated
increases in property tax rates.
Interest expenses declined by $12,681 or 15.81% as a
result of normal amortization of the self-amortizing
mortgage debt.
Contract service expense was reduced by $3,806 or
15.85% primarily by utilizing vendors offering a more
competitive price.
The following table illustrates the components by
category:
Increase
(Decrease)
Salaries & wages 3,690
Maintenance & repairs 2,525
Utilities 3,233
Real estate taxes 15,600
General administrative 188
Contract services (3,806)
Insurance (363)
Interest (12,861)
Depreciation and amortization 5,000
Property management fees (a) 838
Net Increase (Decrease) 14,044
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
While it is the General Partners primary intention to
operate and manage the existing real estate investments, the
General Partner also continually evaluates this investment
in light of current economic conditions and trends to
determine if this assets should be considered for disposal.
At this time, there is no plan to dispose of either
Property.
As of March 31, 1996, the Partnership had $36,280 in cash
and cash equivalents as compared to $19,047 as of December
31, 1995. The net increase in cash of $17,233 is principally
due to positive cash flow from operations and decrees in
accounts payable offset by repayments on mortgages and notes
payable.
The properties are encumbered by two non-recourse mortgage
notes as of December 31, 1995. These mortgages payable have
a carrying value of $7,998,325 at December 31, 1995. The
mortgage notes were entered into during 1993 and 1992 to
refinance certain mortgage notes which were in default. The
Partnership accounted for these transactions as troubled
debt restructuring, and accordingly, are being carried at
the total future cash outflows for principal and interest.
Accordingly, no interest expense was or will be recorded on
these notes.
Additionally, the general partner has provided funding to
the Partnership in the form of notes payable with balances
at December 31, 1995 totaling $3,108,081 which accrue
interest at prime plus 2% and are due on June 30, 2001, or
upon demand. Additional funds have been provided by the
general partner in the form of advances which totaled
$1,120,323 at December 31, 1995. The general partner is not
obligated to provide additional funding to the Partnership.
For the foreseeable future, the Partnership anticipates that
mortgage principal payments (excluding any balloon mortgage
payments), improvements and capital expenditures will be
funded by net cash from operations. The primary source of
capital to fund future Partnership acquisitions and balloon
mortgage payments will be proceeds from the sale, financing
or refinancing of the Properties.
The Partnership's required principal payments due under the
stated terms of the Partnership's mortgage notes payable
and notes payable to affiliates are $124,505, $2,580,216 and
$4,021,625 for each of the next three years. The
Partnership is not generating sufficient cash flows to meet
these obligations. Management believes it will be able to
refinance these debt obligations; however, at this time,
there can be no assurance this refinancing will occur.
<PAGE>
Other Information
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. Exhibit 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
20 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 March 31, 1996.
1 None
<PAGE>
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: April 9, 1996
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM BOTH
THE MARCH 31, 1996 BALANCE SHEET AND STATEMENT OF INCOME AND EXPENSES
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000711512
<NAME> AMERICAN REPUBLIC REALTY FUND I
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 36,280
<SECURITIES> 0
<RECEIVABLES> 0
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<PP&E> 16,747,882
<DEPRECIATION> 7,948,822
<TOTAL-ASSETS> 9,049,066
<CURRENT-LIABILITIES> 0
<BONDS> 7,798,774
0
0
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<OTHER-SE> (3,139,312)
<TOTAL-LIABILITY-AND-EQUITY> 9,049,066
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<TOTAL-REVENUES> 595,630
<CGS> 0
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<OTHER-EXPENSES> 439,951
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 68,400
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