<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 June 30, 1997 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 (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: (972)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 June 30, 1997 and
December 31, 1996 Page 3
Consolidated Statements of Operations for the Three
Months Ended June 30, 1997 and 1996 Page 4
Consolidated Statements of Cash Flows for the Three Months Ended
June 30, 1997 and 1996 Page 5
Item 2. Results of Operations and Management's Discussion and Analysis of:
Financial Condition Page 6-7
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, 1996, are Unaudited.
<PAGE>
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements
_____________________________
AMERICAN REPUBLIC REALTY FUND I
Condensed Consolidated Balance Sheets
June December
30, 31,
1997 1996
__________ __________
(Unaudited)
ASSETS
Real Estate assets, at cost
Land $1,822,718 1,822,718
Buildings and improvements 14,994,509 14,994,509
__________ ___________
16,817,227 16,817,227
Less Accumulated depreciation (8,699,635) (8,397,635)
____________ ____________
Real Estate,net 8,117,592 8,419,592
Cash including cash investments 61,668 23,211
Escrow deposits 232,213 182,966
Prepaid Expenses 58,606 19,614
__________ __________
TOTAL ASSETS $8,470,079 $8,645,383
============ ============
LIABILITIES AND PARTNERS'EQUITY:
LIABILITES
Mortgage and notes payable $6,889,368 $7,239,679
Note Payable to affiliates 2,935,310 2,935,310
Amounts due affiliates 1,115,169 1,282,696
Real estate taxes payable 133,156 0
Security deposits 50,325 45,746
Accounts payable & accrued expenses 147,198 117,202
____________ ____________
Total liabilities 11,270,526 11,620,633
____________ ____________
PARTNERS CAPITAL(DEFICIT)
Limited Partners (2,858,137) (3,031,192)
General Partner 57,690 55,942
___________ ___________
Total Partners capital(Deficit) (2,800,447) (2,975,250)
___________ ___________
TOTAL LIABILITIES AND PARTNER DEFICIT $8,470,079 $8,645,383
============= ============
See notes to Condensed Consolidated Financial Statements
<PAGE>
AMERICAN REPUBLIC REALTY FUND I
Condensed Consolidated Statement of Operations
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -----------------
REVENUES 1997 1996 1997 1996
---- ---- ---- ----
Rental income $635,855 $581,766 1,235,634 1,177,098
Other property 15,006 11,269 23,990 17,960
---------- --------- --------- ---------
Total revenues 650,861 593,035 1,259,624 1,195,058
EXPENSES
Salaries & wages 77,361 75,639 140,638 138,462
Maintenance & repairs 58,787 74,980 111,518 109,220
Utilities 41,075 48,000 93,011 92,590
Real estate taxes 66,900 60,900 133,800 121,800
General administrative 21,889 21,895 29,421 42,369
Contract services 31,339 27,020 59,465 47,234
Insurance 13,649 11,543 25,747 22,864
Interest 64,540 67,370 126,267 135,850
Depreciation and amortization 151,000 155,000 302,000 310,000
Property management fees (a) 32,535 29,688 62,954 59,783
-------- -------- -------- --------
Total expenses 559,075 572,035 1,084,821 1,080,172
NET INCOME (LOSS) $91,786 $21,000 $174,803 $114,886
========= ========= ========== ==========
NET INCOME PER UNITS $ 8.34 $ 1.91 $ 15.89 $ 10.44
======== ======== ========= ========
See Notes to Condensed Consolidated Financial Statements
<PAGE>
AMERICAN REPUBLIC REALTY FUND I
Condensed Consolidated Statement of Cash Flows
Six Months Ended
June 30,
----------------
1997 1996
----- -----
CASH FLOWS FROM OPERATING ACITIVTY
Net income (loss) $174,803 $114,886
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation and amortization 302,000 310,000
Net Effect of changes in operating accounts
Escrow deposits (49,247) (133,704)
Prepaid expenses (38,992) (26,661)
Accrued real estate taxes 133,156 107,800
Security deposits 4,579 3,700
Accounts payable 29,996 55,559
Other assets 0 (24,756)
-------- ---------
Net cash provided by (used for)operating activities 556,295 406,824
-------- ---------
CASH FLOWS FROM INVESTING ACTIVITES
Repayment of mortgage notes payable (350,311) (377,414)
Repayment of notes payable to affiliates 0 0
Proceeds from amounts due affiliates (167,527) (89,598)
Repayment of amounts due affiliates 0 57,738
--------- ----------
Net cash used for investing activities (517,838) (409,274)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND CASH 38,457 (2,450)
EQUVILENTS
CASH AND CASH EQUIVELNTS, BEGINNING OF PERIOD 23,211 19,047
--------- ---------
CASH AND CASH EQUIVELNTS, END OF PERIOD $61,668 $16,597
========= =========
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
----------------------
FIRST SIX MONTHS 1997 COMPARED TO FIRST SIX MONTHS 1996
- -------------------------------------------------------
At June 30, 1997 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 93.70% for the first six months of 1997,
as compared to 93.75% for the first six months of 1996.
Revenue from property operations increased $64,566, or 5.40%,
for the first six months of 1997, as compared to the 1996 first
six months. The increase in other income of $6,030 or 33.57% is
primarily due to a increase in late and returned check charges
over the prior year. The following table illustrates the
components:
Increase
(Decrease)
-----------------
Rental income $58,536 4.97%
Other property 6,030 33.57%
-------- --------
$64,566 5.40%
========= =========
Property operating expenses increased $4,649, or 0.43%, for the
first six months of 1997, as compared to the same period in
1996, primarily due to increases in contract services, offset
by decreases in general and administrative expense. The
increase in contract service of $12,231 or 25.89% is due
primarily to increased lawn care and rubbish removal costs.
Insurance costs rose $2,883 or 12.61% higher annual insurance
premiums that began in May, 1997. Interest expenses declined
by $9,583 or 7.05% as a result of normal amortization of the
self-amortizing mortgage debt. The following table illustrates
the components by category:
Increase
Decrease
------------------
Salaries & wages $2,176 1.57%
Maintenance & repairs 2,298 2.10%
Utilities 421 0.45%
Real estate taxes 12,000 9.85%
General administrative (12,948) 30.56%
Contract services 12,231 25.89%
Insurance 2,883 12.61%
Interest (9,583) 7.05%
Depreciation and amortization (8,000) 2.58%
Property management fees (a) 3,171 5.30%
-------- --------
Net Increase (Decrease) $4,649 0.43%
======== ========
<PAGE>
SECOND QUARTER 1997 COMPARED TO SECOND QUARTER 1996
- ---------------------------------------------------
At June 30, 1997 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 95.0% for the second quarter of 1997, as
compared to 95.2% for the second quarter of 1996.
Revenue from property operations increased $57,826, or 9.75%,
for the second quarter of 1997, as compared to the 1996 second
quarter. The increase in other income of $3,737 or 33.16% is
primarily due to an increase in late and returned check charges
from the prior year. The following table illustrates the
components:
Increase
Decrease
---------------
Rental income $54,089 9.30%
Other property 3,737 33.16%
-------- --------
Net Increase (Decrease) $57,826 9.75%
======= ========
Property operating expenses decreased $12,960, or 2.27%, for
the second quarter of 1997, as compared to the same period in
1996, primarily due to decreases in maintenance & repairs and
utilities, offset by increases in contract services insurance
and real estate taxes. The increase in contract service of
$4,319 or 15.98% is due primarily to increased lawn care and
rubbish removal costs. Insurance costs rose $2,106 or 18.24%
due to higher annual insurance premiums that began in May 1997.
Interest expenses declined by $2,830 or 4.20% as a result of
normal amortization of the self-amortizing mortgage debt. The
following table illustrates the components by category:
Increase
(Decrease)
------------------------
Salaries & wages $1,722 2.28%
Maintenance & repairs (16,193) 21.60%
Utilities (6,925) 14.43%
Real estate taxes 6,000 9.85%
General administrative (6) 0.03%
Contract services 4,319 15.98%
Insurance 2,106 18.24%
Interest (2,830) 4.20%
Depreciation and amortization (4,000) 2.58%
Property management fees (a) 2,847 9.59%
--------- -------
Net Increase (Decrease) $(12,960) 2.27%
========= ========
<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 asset should be considered for disposal. At this time,
there is no plan to dispose of either property.
As of June 30, 1997, the Partnership had $61,668 in cash
and cash equivalents as compared to $23,211 as of December 31,
1996 . The net increase in cash of $38,457 is principally due
to positive cash flow from operations repayments on mortgages
and notes payable.
The properties are encumbered by two non-recourse mortgage
notes as of December 31, 1996. These mortgages payable have a
carrying value of $7,239,679 at December 31, 1996. 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 31,1996 totaling $2,35,310 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 $1,282,696 at December 31,
1996. 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 June 30, 1997.
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: August 11, 1997
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM BOTH
THE JUNE 30, 1997 BALANCE SHEET AND STATEMENT OF INCOME AND EXPENSES
AND IS QAULIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000711512
<NAME> AMERICAN REPUBLIC REALTY FUND I
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 61,668
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 16,817,227
<DEPRECIATION> 8,699,635
<TOTAL-ASSETS> 8,470,079
<CURRENT-LIABILITIES> 0
<BONDS> 6,889,368
0
0
<COMMON> 0
<OTHER-SE> (2,800,447)
<TOTAL-LIABILITY-AND-EQUITY> 8,470,079
<SALES> 0
<TOTAL-REVENUES> 1,235,634
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 958,554
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 126,267
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 174,803
<EPS-PRIMARY> 15.89
<EPS-DILUTED> 0
</TABLE>
