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, 2000 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: (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
TABLE OF CONTENTS
Item 1. Financial Statements
The following Unaudited financial statements are filed herewith:
Consolidated Balance Sheet as of March 31, 2000 and
December 31, 1999 Page 3
Consolidated Statements of Operations for the Three
Months Ended March 31, 2000 and 1999 Page 4
Consolidated Statements of Cash Flows for the Three months
Ended March 31, 2000 and 1999 Page 5
Item 2. Results of Operations and Management's Discussion and
Analysis of
Financial Condition Page 6
Liquidity and Capital Resources Page 7
Other Information Page 8
Signatures Page 9
The statements, insofar as they relate to the period subsequent to
December 31, 1999, are Unaudited.
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements
AMERICAN REPUBLIC REALTY FUND I
Condensed Consolidated Balance Sheets
March 31 December 31,
2000 1999
(Unaudited)
ASSETS
Real Estate assets, at cost
Land $1,822,718 $1,822,718
Buildings and improvements 15,656,616 15,656,616
17,479,334 17,479,334
Less: Accumulated (10,552,557) (10,382,557)
depreciation
Real Estate, net 6,926,777 7,096,777
Cash including cash investments 93,661 116,649
Escrow deposits 463,501 542,074
Prepaid Expenses 11,715 14,067
Deferred Financing Fees 150,403 172,072
TOTAL ASSETS $7,646,057 $7,941,639
LIABILITIES AND PARTNERS' EQUITY:
LIABILITIES
Mortgage and notes payable $10,536,316 $10,572,372
Note Payable to affiliates 0 165,346
Amounts due affiliates 8,999 4,490
Real estate taxes payable 68,748 0
Security deposits 69,619 68,610
Accounts payable & accrued expenses 157,062 297,610
Total liabilities 10,840,744 11,108,428
PARTNERS CAPITAL (DEFICIT)
Limited Partners (3,248,435) (3,220,816)
General Partner 53,748 54,027
Total Partners Capital (Deficit) (3,194,687) (3,166,789)
TOTAL LIABILITIES AND PARTNER DEFICIT $7,646,057 $7,941,639
See notes to Condensed Consolidated Financial Statements
AMERICAN REPUBLIC REALTY FUND I
Condensed Consolidated Statement of Operations
(Unaudited)
Three Months Ended
March 31,
REVENUES 2000 1999
Rental income 675,721 663,831
Other property 17,621 15,028
Total revenues 693,342 678,859
EXPENSES
Salaries & wages 66,926 66,277
Maintenance & repairs 44,243 96,332
Utilities 61,899 43,312
Real estate taxes 68,748 67,500
General administrative 19,964 28,663
Contract services 28,811 28,135
Insurance 10,352 10,612
Interest 209,978 211,080
Depreciation and amortization 175,736 179,871
Property management fees (a) 34,583 33,886
Total expenses 721,240 765,668
Net Income ($27,898) ($86,809)
NET INCOME PER UNIT $(2.54) $(7.89)
See Notes to Condensed Consolidated Financial Statements
AMERICAN REPUBLIC REALTY FUND I
Condensed Consolidated Statement of Cash Flows
See Notes to Condensed Consolidated Financial Statements
Unaudited
Three Months Ended
March 31,
2000 1999
CASH FLOWS FROM OPERATING ACTIVITY
Net income (loss) ($27,898) ($86,809)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation and amortization 170,000 165,000
Net Effect of changes in operating accounts
Escrow deposits 78,573 57,680
Prepaid expenses 2,352 2,612
Accrued real estate taxes 68,748 67,500
Security deposits 1,009 3,023
Accounts payable (140,548) (59,281)
Other assets 21,669 14,871
Net cash provided by (used for)
operating activities 173,905 164,596
CASH FLOWS FROM INVESTING ACTIVITIES
Repayment of mortgage notes payable (36,056) (33,335)
Repayment of notes payable to affiliates (165,346) 0
Proceeds from amounts due affiliates 4,509 (98,931)
Repayment of amounts due affiliates (37,888)
Net cash used for investing activities (196,893) (170,154)
NET INCREASE (DECREASE) IN CASH AND (22,988) (5,558)
CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING 116,649 146,358
OF PERIOD
CASH AND CASH EQUIVALENTS, END OF $93,661 $140,800
PERIOD
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. RESULTS OF OPERATIONS AND MANAGEMENT'S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION
FIRST QUARTER 2000 COMPARED TO FIRST QUARTER 1999
At March 31, 2000 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 95.3% for the first quarter of 2000, as
compared to 95.8% for the first quarter of 1999.
Revenue from property operations increased $14,483, or 2.13%,
for the first quarter of 2000, as compared to the 1999 first
quarter. The increase in rental income of $11,890 or 1.79% is
primarily due to an increase in rental rates. The increase in
other income of $2,593 or 17.25% is primarily due to an
increase in Late and other fee collections from the properties.
The following table illustrates the components:
Increase Per Cent
(Decrease) Change
Rental income 11,890 1.79%
Other property 2,593 17.25%
Net Increase (Decrease) 14,483 2.13%
Property operating expenses decreased $44,428, or 5.80%, for
the first quarter of 2000, as compared to the same period in
1999, primarily due to decreases in maintenance and repairs
expense. The decrease in maintenance and repairs expense is
due to a one time charge in 1999 for resurfacing the parking
lots. Utilities rose $18,587 or 42.91% primarily due to
increases in usage and rates of water and wastewater charges.
General and Administrative decreased $8,699 or 30.35% primarily
due to professional fees relating to cable wiring of the
properties. The following table illustrates the components
by category:
Increase Percent
(Decrease) Change
Salaries & wages 649 0.98%
Maintenance & repairs (52,089) 54.07%
Utilities 18,587 42.91%
Real estate taxes 1,248 1.85%
General administrative (8,699) 30.35%
Contract services 676 2.40%
Insurance (260) 2.45%
Interest (1,102) 0.52%
Depreciation and amortization (4,135) 2.30%
Property management fees (a) 697 2.06%
Net Increase (Decrease) (44,428) 5.80%
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 March 31, 2000, the Partnership had $93,661 in cash
and cash equivalents as compared to $116,649 as of December 31,
1999 . The net decrease in cash of $22,988 is principally due
to the repayment of notes payable to affiliates.
During the first quarter of 2000 ending March 31, the
partnership paid off the remaining balance owned to the general
partner of $165,346. The payment was made with operating cash
flow from the partnership.
Each asset of the fund refinanced its debt during July
1997. The fund retired debt with a face value of $6,500,000
and replaced with debt of $10,800,000. The new mortgages in
the amounts of $4,000,000, $6,800,000 carry interest rates of
7.8% and 7.92% respectively. The notes come due August, 2007.
The Partnership's required principal payments due under the
stated terms of the Partnership's mortgage notes payable and
notes payable to affiliates are $111,063, $120,132 and
$129,941, for each of the next three years.
Net proceeds from the refinancing were used to reduce the
notes payable to affiliates. During July, 1997 payments of
$3,500,000 were made to reduce the debt to affiliates. This
together with interest on the debt reduced the amounts due
affiliates to $300,461 at March 31, 1999.
A gain on retirement of debt arose with the note
refinancing being triggered by the early retirement of the
debt. The recognized gain of $348,836, was the difference
between the carrying value of the debt and the funds necessary
to retire the debt.
Additionally, the general partner has provided funding to
the Partnership in the form of notes payable with balances at
December 31,1998 totaling $399,392 which accrue interest at
rates ranging from prime plus 2%; to 8.25% and are due on June
30, 2001, or upon demand 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 $102,678, $111,063 and
$120,131 for each of the next three years.
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, 2000.
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: May 8, 2000
[ARTICLE] 5
[LEGEND]
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM BOTH
THE March 31, 2000 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
<TABLE>
<S> <C>
[PERIOD-TYPE] 3-MOS
[FISCAL-YEAR-END] DEC-31-2000
[PERIOD-END] MAR-31-1999
[CASH] 93,661
[SECURITIES] 0
[RECEIVABLES] 0
[ALLOWANCES] 0
[INVENTORY] 0
[CURRENT-ASSETS] 0
[PP&E] 17,479,334
[DEPRECIATION] 10,552,557
[TOTAL-ASSETS] 7,646,057
[CURRENT-LIABILITIES] 0
[BONDS] 10,536,316
[PREFERRED-MANDATORY] 0
[PREFERRED] 0
[COMMON] 0
[OTHER-SE] (3,194,687)
[TOTAL-LIABILITY-AND-EQUITY] 7,646,057
[SALES] 0
[TOTAL-REVENUES] 693,342
[CGS] 0
[TOTAL-COSTS] 0
[OTHER-EXPENSES] 511,262
[LOSS-PROVISION] 0
[INTEREST-EXPENSE] 209,978
[INCOME-PRETAX] 0
[INCOME-TAX] 0
[INCOME-CONTINUING] 0
[DISCONTINUED] 0
[EXTRAORDINARY] 0
[CHANGES] 0
[NET-INCOME] (27,898)
[EPS-BASIC] (2.54)
[EPS-DILUTED] 0
</TABLE>
