<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549-1004
FORM 10-Q
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the period ended June 30, 1995
-------------------------------------------------
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
----------------- ------------------
Commission File Number: 0-12538
-----------------------------------------------
First Capital Institutional Real Estate, Ltd. - 1
--------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Florida 59-2197264
--------------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Two North Riverside Plaza, Suite 950, Chicago, Illinois 60606-2607
------------------------------------------------------- -------------------
(Address of principal executive offices) (Zip Code)
(312) 207-0020
--------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
--------------------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
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 X No
--- ---
Documents incorporated by reference:
The First Amended and Restated Certificate and Agreement of Limited Partnership
filed as Exhibit A to the definitive Prospectus dated October 25, 1982, included
in the Registrant's Registration Statement on Form S-11 (Registration
No. 2-79092), is incorporated herein by reference in Part I of this report.
<PAGE>
BALANCE SHEETS
(All dollars rounded to nearest 00s)
<TABLE>
<CAPTION>
June 30,
1995 December 31,
(Unaudited) 1994
--------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investment in commercial rental properties:
Land $ 5,501,700 $ 5,501,700
Buildings and improvements 31,091,300 30,590,100
--------------------------------------------------------------------------------
36,593,000 36,091,800
Accumulated depreciation and amortization (11,348,200) (10,767,200)
--------------------------------------------------------------------------------
Total investment properties, net of accumulated
depreciation and amortization 25,244,800 25,324,600
Cash and cash equivalents 4,293,800 4,238,600
Rents receivable 60,700 67,300
Other assets 30,600 162,100
--------------------------------------------------------------------------------
$29,629,900 $29,792,600
--------------------------------------------------------------------------------
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Accounts payable and accrued expenses $ 291,000 $ 363,000
Due to Affiliates 458,500 447,700
Security deposits 148,200 138,000
Distributions payable 385,200 349,800
Other liabilities 69,400 70,100
--------------------------------------------------------------------------------
1,352,300 1,368,600
--------------------------------------------------------------------------------
Partners' (deficit) capital:
General Partners (301,800) (255,700)
Limited Partners (60,000 Units authorized, issued and
outstanding) 28,579,400 28,679,700
--------------------------------------------------------------------------------
28,277,600 28,424,000
--------------------------------------------------------------------------------
$29,629,900 $29,792,600
--------------------------------------------------------------------------------
</TABLE>
STATEMENTS OF PARTNERS' CAPITAL
For the six months ended June 30, 1995
and the year ended December 31, 1994
(Unaudited)
(All dollars rounded to nearest 00s)
<TABLE>
<CAPTION>
General Limited
Partners Partners Total
-------------------------------------------------------------------------------
<S> <C> <C> <C>
Partners' (deficit) capital,
January 1, 1994 $(157,900) $29,546,700 $29,388,800
Net (loss) income for the year ended
December 31, 1994 (97,800) 532,200 434,400
Distributions for the year ended December
31, 1994 (1,399,200) (1,399,200)
-------------------------------------------------------------------------------
Partners' (deficit) capital,
December 31, 1994 (255,700) 28,679,700 28,424,000
Net (loss) income for the six months
ended
June 30, 1995 (46,100) 670,100 624,000
Distributions for the six months ended
June 30, 1995 (770,400) (770,400)
-------------------------------------------------------------------------------
Partners' (deficit) capital,
June 30, 1995 $(301,800) $28,579,400 $28,277,600
-------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
2
<PAGE>
STATEMENTS OF INCOME AND EXPENSES
For the quarters ended June 30, 1995 and 1994
(Unaudited)
(All dollars rounded to nearest 00s
except per Unit amounts)
<TABLE>
<CAPTION>
1995 1994
---------------------------------------------------------------------------
<S> <C> <C>
Income:
Rental $1,093,200 $1,035,600
Interest 60,000 40,900
---------------------------------------------------------------------------
1,153,200 1,076,500
---------------------------------------------------------------------------
Expenses:
Depreciation and amortization 285,600 281,100
Property operating:
Affiliates 66,700 62,600
Nonaffiliates 207,900 228,600
Real estate taxes 64,300 125,700
Insurance--Affiliate 7,500 15,900
Repairs and maintenance 157,800 181,300
General and administrative:
Affiliates 2,700 5,400
Nonaffiliates 58,300 47,200
---------------------------------------------------------------------------
850,800 947,800
---------------------------------------------------------------------------
Net income $ 302,400 $ 128,700
---------------------------------------------------------------------------
Net (loss) allocated to General Partners $ (22,700) $ (24,000)
---------------------------------------------------------------------------
Net income allocated to Limited Partners $ 325,100 $ 152,700
---------------------------------------------------------------------------
Net income allocated to Limited Partners per Unit
(60,000 Units authorized, issued and outstanding) $ 5.42 $ 2.55
---------------------------------------------------------------------------
</TABLE>
STATEMENTS OF INCOME AND EXPENSES
For the six months ended June 30, 1995 and 1994
(Unaudited)
(All dollars rounded to nearest 00s
except per Unit amounts)
<TABLE>
<CAPTION>
1995 1994
---------------------------------------------------------------------------
<S> <C> <C>
Income:
Rental $2,360,200 $2,192,700
Interest 116,500 73,800
---------------------------------------------------------------------------
2,476,700 2,266,500
---------------------------------------------------------------------------
Expenses:
Depreciation and amortization 581,000 555,400
Property operating:
Affiliates 136,600 120,200
Nonaffiliates 482,700 441,100
Real estate taxes 196,500 245,100
Insurance--Affiliate 23,200 31,800
Repairs and maintenance 312,900 343,700
General and administrative:
Affiliates 16,100 19,800
Nonaffiliates 103,700 86,900
---------------------------------------------------------------------------
1,852,700 1,844,000
---------------------------------------------------------------------------
Net income $ 624,000 $ 422,500
---------------------------------------------------------------------------
Net (loss) allocated to General Partners $ (46,100) $ (45,800)
---------------------------------------------------------------------------
Net income allocated to Limited Partners $ 670,100 $ 468,300
---------------------------------------------------------------------------
Net income allocated to Limited Partners per Unit
(60,000 Units authorized, issued and outstanding) $ 11.17 $ 7.81
---------------------------------------------------------------------------
</TABLE>
STATEMENTS OF CASH FLOWS
For the six months ended June 30, 1995 and 1994
(Unaudited)
(All dollars rounded to nearest 00s)
<TABLE>
<CAPTION>
1995 1994
------------------------------------------------------------------------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 624,000 $ 422,500
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 581,000 555,400
Changes in assets and liabilities:
Decrease in rents receivable 6,600 132,900
Decrease in other assets 131,500 32,800
(Decrease) in accounts payable and accrued expenses (72,000) (44,600)
Increase in due to Affiliates 10,800 1,500
(Decrease) increase in other liabilities (700) 53,000
------------------------------------------------------------------------------
Net cash provided by operating activities 1,281,200 1,153,500
------------------------------------------------------------------------------
Cash flows from investing activities:
Payments for capital and tenant improvements (501,200) (326,000)
------------------------------------------------------------------------------
Net cash (used for) investing activities (501,200) (326,000)
------------------------------------------------------------------------------
Cash flows from financing activities:
Distributions paid to Partners (735,000) (549,600)
Decrease (increase) in security deposits 10,200 (5,600)
------------------------------------------------------------------------------
Net cash (used for) financing activities (724,800) (555,200)
------------------------------------------------------------------------------
Net increase in cash and cash equivalents 55,200 272,300
Cash and cash equivalents at the beginning of the
period 4,238,600 4,245,900
------------------------------------------------------------------------------
Cash and cash equivalents at the end of the period $4,293,800 $4,518,200
------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
June 30, 1995
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
DEFINITION OF SPECIAL TERMS:
Capitalized terms used in this report have the same meaning as those terms have
in the Partnership's Registration Statement filed with the Securities and
Exchange Commission on Form S-11. Definitions of these terms are contained in
Article III of the First Amended and Restated Certificate and Agreement of
Limited Partnership, which is incorporated herein by reference.
ACCOUNTING POLICIES:
The financial statements have been prepared in accordance with generally
accepted accounting principles. Under this method of accounting, revenues are
recorded when earned and expenses are recorded when incurred.
The financial information included in these financial statements is unaudited;
however, in management's opinion, all adjustments (consisting of only normal,
recurring accruals) necessary for a fair presentation of the results of
operations for the periods included have been made. Results of operations for
the quarter and six months ended June 30, 1995 are not necessarily indicative
of the operating results for the year ending December 31, 1995.
The financial statements include the Partnership's 50% interest in three joint
ventures with Affiliated partnerships. These joint ventures were formed for the
purpose of acquiring interests in certain real properties and are operated
under the common control of the Managing General Partner. Accordingly, the
Partnership's pro rata share of the ventures' revenues, expenses, assets,
liabilities and capital is included in the financial statements.
Certain reclassifications have been made to the previously reported 1994
statements in order to provide comparability with the 1995 statements. These
reclassifications have no effect on the net income (loss) or Partners' capital.
Cash equivalents are considered all highly liquid investments purchased with a
maturity of three months or less.
Reference is made to the Partnership's annual report for the year ended
December 31, 1994, for a description of other accounting policies and
additional details of the Partnership's financial condition, results of
operations, changes in Partners' capital and changes in cash balances for the
year then ended. The details provided in the notes thereto have not changed
except as a result of normal transactions in the interim or as otherwise
disclosed herein.
2. RELATED PARTY TRANSACTIONS:
Subsequent to March 31, 1983, the Termination of the Offering, the General
Partners are entitled to 10% of Cash Flow as their Partnership Management Fee,
provided that the Limited Partners first receive specified cumulative annual
returns on their Original Capital Contributions. In accordance with the
Partnership Agreement, Net Profits (exclusive of depreciation and Net Profits
from the sale or disposition of Partnership properties) are allocated first to
the General Partners in an amount equal to the greater of the General Partners'
Partnership Management Fee or 1% of such Net Profits. The balance of Net
Profits, if any, is allocated to the Limited Partners. Net Losses (exclusive of
depreciation and Net Losses from the sale or disposition of Partnership
properties) are allocated 1% to the General Partners and 99% to the Limited
Partners. All depreciation shall be allocated 10% to the General Partners and
90% to the Limited Partners. The General Partners were not entitled to cash
distributions for the quarter and six months ended June 30, 1995. During the
quarter and six months ended June 30, 1995, the General Partners were allocated
Net Losses of $22,700 and $46,100, respectively.
Fees and reimbursements paid and payable by the Partnership to Affiliates
during the quarter and six months ended June 30, 1995 were as follows:
<TABLE>
<CAPTION>
Paid
Quarter Six Months Payable
------------------------------------------------------------------------------
<S> <C> <C> <C>
Property management and leasing fees $ 76,100 $115,300 $ 51,100
Reimbursement of property insurance premiums, at
cost 23,200 23,200 None
Real estate commissions (a) None None 403,000
Reimbursement of expenses, at cost:
(1) Accounting 2,400 8,600 2,000
(2) Investor communication 2,300 7,100 2,400
(3) Legal 9,200 11,600 None
------------------------------------------------------------------------------
$113,200 $165,800 $458,500
------------------------------------------------------------------------------
</TABLE>
(a) As of June 30, 1995, the Partnership owed $403,000 to the Managing General
Partner for real estate commissions earned in connection with the sales of
Partnership properties. These commissions have been accrued but not paid.
Under the terms of the Partnership Agreement, these commissions will not be
paid until the Limited Partners have received cumulative distributions of
Sale or Refinancing Proceeds equal to 100% of their Original Capital
Contribution plus a cumulative return (including all Cash Flow which has
been distributed to the Limited Partners from the initial date of
investment) of 6% simple interest per annum on their Capital Investment
from the initial date of investment.
4
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Reference is made to the Partnership's annual report for the year ended
December 31, 1994, for a discussion of the Partnership's business.
OPERATIONS
The table below is a recap of certain operating results of each of the
Partnership's properties for the quarters and six months ended June 30, 1995
and 1994. The discussion following the table should be read in conjunction with
the Financial Statements and Notes thereto appearing in this report.
<TABLE>
<CAPTION>
Comparative Operating Results (a)
For the Quarters For the Six
Ended Months Ended
6/30/95 6/30/94 6/30/95 6/30/94
------------------------------------------------------------
<S> <C> <C> <C> <C>
FOXHALL SQUARE BUILDING
Rental revenues $411,300 $353,100 $836,700 $775,300
------------------------------------------------------------
Property net income $116,100 $ 51,300 $241,200 $204,000
------------------------------------------------------------
Average occupancy 85.7% 85.1% 85.4% 84.9%
------------------------------------------------------------
PEACHTREE PALISADES OFFICE BUILDING
Rental revenues $275,300 $288,200 $673,800 $598,700
------------------------------------------------------------
Property net (loss) $(30,900) $(52,100) $(33,700) $(56,500)
------------------------------------------------------------
Average occupancy 78.2% 77.0% 78.0% 77.0%
------------------------------------------------------------
LAKEWOOD SQUARE SHOPPING CENTER
Rental revenues $282,300 $279,900 $595,100 $589,700
------------------------------------------------------------
Property net income $180,200 $116,300 $337,900 $262,000
------------------------------------------------------------
Average occupancy 88.4% 82.0% 85.9% 83.0%
------------------------------------------------------------
12621 FEATHERWOOD BUILDING
Rental revenues $124,300 $114,400 $254,600 $229,000
------------------------------------------------------------
Property net income $ 38,700 $ 22,600 $ 82,800 $ 46,700
------------------------------------------------------------
Average occupancy 100.0% 100.0% 100.0% 100.0%
------------------------------------------------------------
</TABLE>
(a) the above table excludes certain income and expense items which are either
not directly related to individual property operating results such as
interest income and general and administrative expenses or are related to
properties previously owned by the Partnership.
Net income increased $173,700 and $201,600, respectively, for the quarter and
six months ended June 30, 1995 when compared to the quarter and six months
ended June 30, 1994. The increases in net income were primarily due to: 1)
increased operating results at all of the Partnership's properties totaling
approximately $163,000 and $172,600, respectively, for both periods under
comparison and 2) increased interest income of $19,100 and $42,800,
respectively, for both periods under comparison resulting from an increase in
rates available on the Partnership's short-term investments. Partially
offsetting the increases in net income was increased general and administrative
expenses of $8,400 and $13,700, respectively, for the periods under comparison
due to an increase in professional fees and printing and mailing costs.
Total rental revenues increased by approximately $56,600 or 5.6% and $167,500
or 7.6%, respectively, for the quarter and six months ended June 30, 1995, when
compared to the quarter and six months ended June 30, 1994. The primary factors
which caused the increase in rental revenues for the quarterly periods under
comparison were: 1) increased rental income at Foxhall Square ("Foxhall") due
to increases in base rents charged to new and renewing tenants, tenant expense
reimbursements for real estate tax escalations, percentage rents and other
rental income, primarily parking income and 2) an increase in base rents at
Lakewood Square Shopping Mall ("Lakewood") due to an increase in occupancy.
Partially offsetting the increase in rental revenues for the quarterly periods
under comparison was a decrease in rental revenue at Peachtree Palisades
("Peachtree") as a result of a correction made in the second quarter to reduce
billings previously charged to a tenant, JACOR Broadcasting ("JACOR"), which
was included in the first quarter results. Due to construction delays JACOR is
not expected to take occupancy until August 1995. Rental revenues increased at
all of the Partnership's properties for the six month periods under comparison
due to the following: 1) increased base rent and tenant expense reimbursements
for real estate tax escalations due to an increase in occupancy, partially
offset by a decrease in tenant receivables deemed uncollectible at Peachtree;
2) increased parking lot income at Foxhall; 3) increased base rents charged to
the sole tenant at 12621 Featherwood Building ("Featherwood") and 4) increased
base rents at Lakewood.
The increase in parking income for the quarter and six month periods under
comparison was primarily the result of discharging the third party parking
management agent and taking the operations in-house. Parking income was
previously recorded net of the agent's fees. Currently the income and expenses
are reflected on a gross basis in income and property operating expenses,
respectively.
Total real estate tax expense decreased by approximately $61,400 or 48.9% and
$48,600 or 19.8%, respectively, for the quarter and six months ended June 30,
1995 when compared to the quarter and six months ended June 30, 1994. The
decrease in real estate tax expense was primarily due to: 1) the receipt of a
refund of $57,100 for 1993/1994 real estate taxes at Lakewood during the
quarter and six month periods under comparison and 2) a decrease in real estate
tax expense at Foxhall due to a reduction in the property's assessed valuation
(real estate taxes at Foxhall are assessed for the fiscal year April 1994
through March 1995) for the comparable quarters. Partially offsetting these
decreases was a minimal increase in real estate tax expense at Peachtree for
the quarter and six month periods under comparison.
Total repairs and maintenance expense decreased approximately $23,500 or 12.9%
and $30,800 or 9.0%, respectively, for the quarter and six months ended June
30, 1995 when compared to the quarter and six months ended June 30, 1994. The
decrease was primarily due to the fact that 1994 repairs & maintenance at
Peachtree included architectual costs associated with space planning for new
and relocating tenants. Partially offsetting the decrease in these expenses was
increased repairs and maintenance expenses at Featherwood resulting from: 1)
increased janitorial costs due to increased cleanable square footage and 2)
increased minor repairs required to maintain the HVAC system.
Total property operating expenses decreased by approximately $16,600 or 5.7%
for the quarter ended June 30, 1995 when compared to the quarter ended June 30,
1994. The primary factors which caused the decrease for the quarterly periods
under comparison were decreased utilities at Peachtree and Featherwood and
decreased professional fees at Featherwood and Lakewood, partially offset by
increased personnel costs related to the operations of the parking garage at
Foxhall. Total property operating expenses increased by approximately $58,000
or 10.3% for the six months ended June 30, 1995 when compared to the six months
ended June 30, 1994. The primary factors which caused the increase were: 1)
increased personnel costs (due to the hiring of a full-time on-site property
manager), utilities and professional fees at Peachtree and 2) increased
personnel costs at Foxhall as previously stated above. Partially offsetting the
increase for the six month periods under comparison was a decrease in
professional fees and utilities, at Lakewood and Featherwood, respectively.
Total insurance expense decreased by approximately $8,400 or 52.8% and $8,600
or 27%, respectively, during the quarter and six months ended June 30, 1995,
when compared to the prior year periods. These decreases were primarily due to
lower group rates on the Partnership's combined insurance coverage as a result
of a minimal amount of claims made over the past several years, which provided
a good loss experience relative to the Partnership's properties.
5
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Affiliated asset and property management groups continue to take the necessary
actions deemed appropriate for the properties discussed above. Some of these
actions include: 1) implementation of marketing programs, including hiring of
third-party leasing agents or providing on-site leasing personnel, advertising,
direct mail campaigns and development of building brochures; 2) early renewal
of existing tenants and addressing any expansion needs these tenants may have;
3) promotion of local broker events and networking with local brokers; 4)
networking with national level retailers; 5) cold-calling other businesses and
tenants in the market area and 6) providing rental concessions or competitively
pricing rental rates depending on market conditions.
LIQUIDITY AND CAPITAL RESOURCES
One of the Partnership's objectives is to dispose of its properties when market
conditions allow for the achievement of the maximum possible sales price. In
the interim, the Partnership continues to manage and maintain its four
remaining properties. Notwithstanding the Partnership's intention relative to
property sales, another primary objective of the Partnership is to provide cash
distributions to Limited Partners from Partnership operations. To the extent
cumulative cash distributions exceed net income, such excess distributions will
be treated as a return of capital. Cash Flow (as defined in the Partnership
Agreement) is generally not equal to Partnership net income or cash flows as
defined by generally accepted accounting principles ("GAAP"), since certain
items are treated differently under the Partnership Agreement than under GAAP.
Management believes that to facilitate a clear understanding of the
Partnership's operations, an analysis of Cash Flow (as defined by the
Partnership Agreement) should be examined in conjunction with an analysis of
net income or cash flows as defined by GAAP.
The following table includes a reconciliation of Cash Flow (as defined by the
Partnership Agreement) to cash flow provided by operating activities as
determined by GAAP and are not indicative of actual distributions to Partners
and should not neccessarily be considered as an alternative to the results
disclosed in the Statements of Income and Expenses and Cash Flow.
<TABLE>
<CAPTION>
Comparative Cash Flow
Results For the Six
Months Ended
6/30/95 6/30/94
---------------------------------------------------------------------------
<S> <C> <C>
Amount of Cash Flow (as defined in the Partnership
Agreement) $1,205,000 $ 977,900
Items of reconciliation:
Decrease in current assets 138,100 165,700
(Decrease) increase in current liabilities (61,900) 9,900
---------------------------------------------------------------------------
Net cash provided by operating activities $1,281,200 $1,153,500
---------------------------------------------------------------------------
Net cash (used for) investing activities $ (501,200) $ (326,000)
---------------------------------------------------------------------------
Net cash (used for) financing activities $ (724,800) $ (555,200)
---------------------------------------------------------------------------
</TABLE>
The increase in Cash Flow (as defined by the Partnership Agreement) of $227,100
for the six months ended June 30, 1995 when compared to six months ended June
30, 1994 was primarily due to the increase in net income, as previously
discussed, exclusive of depreciation and amortization and the receipt of a
rebate for the replacement of the air conditioner at Foxhall in the amount of
$155,000, which previously had been included in other assets on the
Partnership's balance sheet.
The increase in the Partnership's cash position as of June 30, 1995 when
compared to December 31, 1994 was primarily the result of the increase in net
income as previously discussed, partially offset by an increase in payments
made for capital and tenant improvements and distributions paid to Partners.
Liquid assets of the Partnership as of June 30, 1995 were comprised of
undistributed cash from operations retained for working capital purposes.
Net cash provided by operating activities continues to be the Partnership's
primary source of funds. Net cash provided by operating activities increased
$127,700 for the six months ended June 30, 1995 when compared to the six months
ended June 30, 1994. This increase was primarily due to the increase in net
income as previously discussed, and the decrease in other assets due to the
receipt of a rebate at Foxhall, as previously discussed.
The increase in net cash (used for) investing activities of approximately
$175,200 for the six months ended June 30, 1995 when compared to the six months
ended June 30, 1994 was due to an increase in expenditures for capital and
tenant improvements to the Partnership's properties. During the six months
ended June 30, 1995, the Partnership spent $501,200 for building and tenant
improvements and has budgeted to spend an additional $1,125,000 during the
remainder of 1995. Of the remaining budgeted amount, approximately $565,000,
$350,000 and $195,000 relates to anticipated capital and tenant improvements
and leasing costs expected to be incurred at Peachtree, Lakewood and Foxhall,
respectively. The Managing General Partner believes these expenditures are
necessary to maintain occupancy levels in very competitive markets and ready
the remaining properties for disposition.
The increase in net cash (used for) financing activities of approximately
$169,600 for the six months ended June 30, 1995 when compared to the six months
ended June 30, 1994 was due primarily to an increase in distributions paid to
Limited Partners, partially offset by an increase in the net collection of
tenant security deposits.
The Managing General Partner continues to take a conservative approach to
projections of future rental income and to maintain higher levels of cash
reserves due to the anticipated capital and tenant improvements necessary to be
made at the Partnership's properties during the next several years. As a result
of this, cash continues to be retained to supplement working capital reserves.
Cash Flow (as defined by the Partnership Agreement) retained to supplement
working capital reserves approximated $434,600 for the six months ended June
30, 1995.
Distributions to Limited Partners for the quarter ended June 30, 1995 were
declared in the amount of $6.42 per Unit. Cash distributions are made 60 days
after quarter end. The amount of future distributions will ultimately be
dependent upon the performance of the Partnership's investments, as well as the
amount of cash retained in the future to supplement working capital reserves.
Accordingly, there can be no assurance of the availability of cash for
distribution to Partners.
6
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits: Financial Data Schedule
(b) Reports on Form 8-K:
There were no reports filed on Form 8-K during the quarter ended
June 30, 1995.
<PAGE>
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.
FIRST CAPITAL INSTITUTIONAL REAL ESTATE, LTD. - 1
BY: FIRST CAPITAL FINANCIAL CORPORATION
MANAGING GENERAL PARTNER
Date: August 14, 1995 By: /s/ DOUGLAS CROCKER II
--------------- -------------------------------------
DOUGLAS CROCKER II
President and Chief Executive Officer
Date: August 14, 1995 By: /s/ NORMAN M. FIELD
--------------- --------------------------------------
NORMAN M. FIELD
Vice President - Finance and Treasurer
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<CIK> 0000730212
<NAME> First Capital Institutional Real Estate, Ltd.-1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 4,293,800
<SECURITIES> 0
<RECEIVABLES> 60,700
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 4,385,100
<PP&E> 36,593,000
<DEPRECIATION> 11,348,200
<TOTAL-ASSETS> 29,629,900
<CURRENT-LIABILITIES> 731,700
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 28,277,600
<TOTAL-LIABILITY-AND-EQUITY> 29,629,900
<SALES> 0
<TOTAL-REVENUES> 2,476,700
<CGS> 0
<TOTAL-COSTS> 1,151,900
<OTHER-EXPENSES> 119,800
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 624,000
<INCOME-TAX> 0
<INCOME-CONTINUING> 624,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 624,000
<EPS-PRIMARY> 11.17
<EPS-DILUTED> 11.17
</TABLE>
