SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR
15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 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 1-8594
-------
PRESIDENTIAL REALTY CORPORATION
-------------------------------
(Exact name of registrant as specified in its charter)
Delaware 13-1954619
--------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
180 South Broadway, White Plains, New York 10605
------------------------------------------ ------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, indicating area code 914-948-1300
------------
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
------ ------
The number of shares outstanding of each of the issuer's classes of common
stock as of the close of business on November 7, 1995 was 478,940 shares of
Class A common and 3,044,484 shares of Class B common.
PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES
Index to 10-Q
For the Nine Months Ended
September 30, 1995
Part I - Financial Information (Unaudited)
Consolidated Balance Sheets
Consolidated Statements of Operations
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Management's Discussion and Analysis of
Financial Condition and Results of Operations
Part II - Other Information
Item 6. Exhibits and Reports on Form 8-K
<TABLE>
PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Unaudited)
<CAPTION>
Assets September 30, December 31,
1995 1994
------------- ------------
<S> <C> <C>
Mortgage portfolio (Note 2):
Sold properties, accrual $34,713,542 $36,344,060
Related parties, accrual 1,141,876 1,204,499
Sold properties, impaired 16,128,464 14,879,200
Related parties, impaired 1,639,396 2,306,843
------------- ------------
Total mortgage portfolio 53,623,278 54,734,602
------------- ------------
Less discounts:
Sold properties, accrual 3,704,242 4,155,722
Related parties, accrual 175,840 193,851
Sold properties, impaired 7,855,291 7,882,168
------------- ------------
Total discounts 11,735,373 12,231,741
------------- ------------
Less deferred gains:
Sold properties, accrual 14,859,289 15,822,323
Sold properties, impaired 6,539,197 5,592,268
Related parties, impaired 1,639,396 2,306,843
------------- ------------
Total deferred gains 23,037,882 23,721,434
------------- ------------
Net mortgage portfolio (of which $1,866,255 in 1995
and $1,820,911 in 1994 are due within one year) 18,850,023 18,781,427
------------- ------------
Real estate (Note 3) 23,818,745 23,479,627
Less: accumulated depreciation 4,920,037 4,475,288
------------- ------------
Net real estate 18,898,708 19,004,339
------------- ------------
Foreclosed properties (Note 4) 611,719 726,927
Minority partners' interest (Note 5) 4,034,561 4,281,262
Prepaid expenses and deposits in escrow 1,486,643 1,629,218
Other receivables (net of valuation allowance of
$189,315 in 1995 and $117,096 in 1994) 1,057,000 872,169
Other receivables (related party) 14,610 12,224
Securities available for sale (Note 6) 2,290,229 1,766,851
Cash and cash equivalents 1,470,425 2,402,211
Other assets 1,229,493 1,522,248
------------- ------------
Total Assets $49,943,411 $50,998,876
============= ============
<FN>
See notes to consolidated financial statements
</TABLE>
<TABLE>
PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Unaudited)
<CAPTION>
Liabilities and Stockholders' Equity
September 30, December 31,
1995 1994
------------- ------------
<S> <C> <C>
Liabilities:
Mortgage debt:
Properties owned $27,109,800 $27,489,824
Wrap mortgage debt on sold properties 6,169,928 6,492,285
------------- -------------
Total (of which $987,010 in 1995 and $943,800
in 1994 are due within one year) 33,279,728 33,982,109
Executive pension plan liability (Note 8) 1,872,723 1,964,379
Accrued liabilities 1,828,152 2,088,404
Accrued postretirement cost (Note 9) 625,399 646,122
Deferred income 626,035 735,552
Accounts payable 421,647 428,335
Distribution payable on common stock 528,514
Other liabilities 551,707 579,522
------------- -------------
Total Liabilities 39,733,905 40,424,423
------------- -------------
Stockholders' Equity:
Common stock; par value $.10 a share (Note 1-C)
Class A, authorized 700,000 shares, issued and
outstanding 478,940 shares 47,894 47,894
Class B September 30, 1995 December 31, 1994 305,862 304,504
------- ------------------ -----------------
Authorized: 10,000,000 10,000,000
Issued: 3,058,616 3,045,037
Treasury: 14,221 14,221
Additional paid-in capital 1,714,667 1,628,492
Retained earnings 8,368,387 9,071,188
Net unrealized loss on securities available for sale (Note 6) (34,736) (285,057)
Class B, treasury stock (at cost) (192,568) (192,568)
------------- -------------
Total Stockholders' Equity 10,209,506 10,574,453
------------- -------------
Total Liabilities and Stockholders' Equity $49,943,411 $50,998,876
============= =============
<FN>
See notes to consolidated financial statements
</TABLE>
<TABLE>
PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
<CAPTION>
NINE MONTHS ENDED SEPTEMBER 30,
--------------------------------
1995 1994
Income: ------------ ------------
<S> <C> <C>
Rental $5,986,285 $4,711,069
Interest on mortgages - sold properties 1,538,401 1,520,207
Interest on wrap mortgages 1,063,242 1,077,735
Interest on mortgages - related parties 186,597 216,758
Investment income 259,553 158,838
Other 51,882 102,618
------------ ------------
Total 9,085,960 7,787,225
------------ ------------
Costs and Expenses:
General and administrative 1,442,774 1,704,257
Interest on notes payable and other 86,813 108,517
Interest on wrap mortgage debt 202,799 217,292
Depreciation on non-rental property 17,190 22,451
Rental property:
Operating expenses 2,529,213 1,746,755
Interest on mortgages 1,712,565 1,017,763
Real estate taxes 564,429 440,781
Depreciation on real estate 453,149 341,366
Amortization of mortgage and organization costs 102,380 99,697
Minority interest share of partnership income 581,046 519,549
Loss from operations of foreclosed properties (Note 4) 76,774 65,779
Net (gain) loss from sales of foreclosed properties (Note 4) (52,192) (56,056)
------------ ------------
Total 7,716,940 6,228,151
------------ ------------
Income before net gain (loss) from sales of
properties and securities and cumulative effect of
change in accounting principle 1,369,020 1,559,074
Net gain (loss) from sales of properties and securities 38,150 (34,342)
------------ ------------
Income before cumulative effect of change in accounting
principle 1,407,170 1,524,732
Cumulative effect of change in accounting for
securities 37,617
------------ ------------
Net Income $1,407,170 $1,562,349
============ ============
Earnings per Common Share (Note 1-C):
Income before net gain (loss) from sales of
properties and securities and cumulative effect of
change in accounting principle $0.39 $0.45
Net gain (loss) from sales of properties and securities 0.01 (0.01)
------------ ------------
Income before cumulative effect of change in accounting
principle 0.40 0.44
Cumulative effect of change in accounting for
securities 0.01
------------ ------------
Net Income per Common Share $0.40 $0.45
============ ============
Cash Distributions Declared per Common Share 0.60 0.60
============ ============
Weighted Average Number of Shares Outstanding 3,515,001 3,497,464
============ ============
<FN>
See notes to consolidated financial statements.
</TABLE>
<TABLE>
PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
<CAPTION>
THREE MONTHS ENDED SEPTEMBER 30,
--------------------------------
1995 1994
Income: ------------ ------------
<S> <C> <C>
Rental $2,094,834 $1,564,520
Interest on mortgages - sold properties 526,682 542,568
Interest on wrap mortgages 353,182 358,057
Interest on mortgages - related parties 61,891 71,126
Investment income 96,204 55,807
Other 14,776 (13,182)
------------ ------------
Total 3,147,569 2,578,896
------------ ------------
Costs and Expenses:
General and administrative 455,191 610,012
Interest on notes payable and other 28,937 36,513
Interest on wrap mortgage debt 66,368 71,243
Depreciation on non-rental property 5,762 10,544
Rental property:
Operating expenses 832,310 650,066
Interest on mortgages 572,227 365,989
Real estate taxes 188,143 147,592
Depreciation on real estate 153,950 117,314
Amortization of mortgage and organization costs 32,667 41,878
Minority interest share of partnership income 258,411 114,044
Loss from operations of foreclosed properties (Note 4) 45,230 20,861
Net (gain) loss from sales of foreclosed properties (Note 4) 12,413 (78,485)
------------ ------------
Total 2,651,609 2,107,571
------------ ------------
Income before net gain (loss) from sales of
properties and securities and cumulative effect of
change in accounting principle 495,960 471,325
Net gain (loss) from sales of properties and securities 7,953 (97,355)
------------ ------------
Income before cumulative effect of change in accounting
principle 503,913 373,970
Cumulative effect of change in accounting for
securities
------------ ------------
Net Income $503,913 $373,970
============ ============
Earnings per Common Share (Note 1-C):
Income before net gain (loss) from sales of
properties and securities and cumulative effect of
change in accounting principle $0.14 $0.14
Net gain (loss) from sales of properties and securities 0.00 (0.03)
------------ ------------
Income before cumulative effect of change in accounting
principle 0.14 0.11
Cumulative effect of change in accounting for
securities
------------ ------------
Net Income per Common Share $0.14 $0.11
============ ============
Cash Distributions Declared per Common Share $0.30 $0.30
============ ============
<FN>
See notes to consolidated financial statements.
</TABLE>
<TABLE>
PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
<CAPTION>
NINE MONTHS ENDED SEPTEMBER 30,
------------------------------------
1995 1994
Cash Flows from Operating Activities: ------------ ------------
<S> <C> <C>
Cash received from rental properties $5,935,122 $4,492,378
Interest received 2,429,467 2,765,935
Miscellaneous income (disbursements) (89,305) 107,260
Interest paid on rental property mortgages (1,710,448) (1,018,764)
Interest paid on wrap mortgage debt (202,799) (217,292)
Interest paid on loans (37,603)
Cash disbursed for rental and foreclosed property operations (3,073,980) (2,298,332)
Cash disbursed for general and administrative costs (1,369,938) (1,022,658)
------------ ------------
Net cash provided by operating activities 1,918,119 2,770,924
------------ ------------
Cash Flows from Investing Activities:
Payments received on notes receivable 738,575 946,065
Payments disbursed for investments in notes receivable (12,264) (25,696)
Net payments received on sales of foreclosed properties 162,710 323,614
Payments disbursed for additions and improvements (409,264) (510,080)
Proceeds from sales of securities 113,000 99,994
Purchases of securities (387,060) (100,000)
Net cash receipts from operations of foreclosed properties 3,562 12,913
------------ ------------
Net cash provided by investing activities 209,259 746,810
------------ ------------
Cash Flows from Financing Activities:
Principal payments on mortgage debt:
Properties owned (380,024) (289,276)
Wrap mortgage debt on sold properties (322,357) (311,019)
Mortgage debt payment from proceeds of mortgage refinancing (2,008,576)
Mortgage proceeds 3,522,036
Mortgage refinancing repairs and replacement escrows (846,773)
Mortgage costs (791,343)
Principal payments on note payable (187,304)
Cash distributions on common stock (2,109,971) (2,099,429)
Proceeds from dividend reinvestment and share purchase plan 87,533 97,207
Distributions to minority partners (334,345) (522,097)
------------ ------------
Net cash used in financing activities (3,059,164) (3,436,574)
------------ ------------
Net Increase (Decrease) in Cash and Cash Equivalents (931,786) 81,160
Cash and Cash Equivalents, Beginning of Period 2,402,211 1,349,755
------------ ------------
Cash and Cash Equivalents, End of Period $1,470,425 $1,430,915
============ ============
<FN>
See notes to consolidated financial statements.
</TABLE>
<TABLE>
PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
<CAPTION>
NINE MONTHS ENDED SEPTEMBER 30,
------------------------------------
1995 1994
------------ ------------
<S> <C> <C>
Reconciliation of Net Income to Net Cash
Provided by Operating Activities
Net Income $1,407,170 $1,562,349
------------ ------------
Adjustments to reconcile net income to net
cash provided by operating activities:
Cumulative effect of accounting change for
securities (37,617)
Depreciation and amortization 572,719 463,514
Loss (gain) from sales of properties and securities (38,150) 34,342
Net gain from sales of foreclosed properties (52,192) (56,056)
Amortization of discounts on notes and fees (491,922) (515,232)
Increase in accounts receivable (187,217) (420,830)
Increase (decrease) in accounts payable
and accrued liabilities (379,319) 505,928
Increase (decrease) in deferred income (109,517) 437,429
Decrease (increase) in prepaid expenses, deposits in
escrow and deferred charges 124,497 (335,541)
Decrease in security deposit liabilities (20,149) (1,536)
Miscellaneous (17,361) 88,792
Minority share of partnership income 581,046 519,549
Distribution payable on common stock 528,514 525,833
------------ ------------
Total adjustments 510,949 1,208,575
------------ ------------
Net cash provided by operating activities $1,918,119 $2,770,924
============ ============
Supplemental noncash disclosures:
Notes received from sales of foreclosed properties $80,200 $1,238,750
============ ============
Deferred loan modification fee and deferred interest
added to sold property note receivable $310,000
============ ============
<FN>
See notes to consolidated financial statements.
</TABLE>
PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. General - Presidential Realty Corporation ("Presidential" or the "Company"),
a Real Estate Investment Trust ("REIT"), is engaged principally in the holding
of notes and mortgages secured by real estate and in the ownership of income
producing real estate.
B. Principles of Consolidation - The consolidated financial statements include
the accounts of Presidential Realty Corporation and its wholly owned
subsidiaries. Additionally, the accompanying consolidated financial statements
include 100% of the account balances of UTB Associates and PDL, Inc. and
Associates Limited Co-Partnership ("Metmor Plaza Associates"), partnerships in
which Presidential is the General Partner and owns a 66-2/3% interest and a 25%
interest, respectively (see Note 5).
All significant intercompany balances and transactions have been eliminated.
C. Earnings Per Common Share - Per share data is based on the weighted average
number of shares of Class A and Class B common stock outstanding and
equivalents during each period. No dilution in per share earnings for the
nine months ended September 30, 1995 and 1994 would result from the exercise of
stock options issued under the Company's stock option plans.
D. Cash and Cash Equivalents - Cash and cash equivalents includes cash on hand,
cash in banks and money market funds.
E. Basis of Presentation - The accompanying unaudited consolidated financial
statements have been prepared in accordance with generally accepted accounting
principles for interim financial information. In the opinion of management,
all adjustments (consisting of only normal recurring accruals) considered
necessary for a fair presentation of the results for the respective periods
have been reflected. These financial statements and accompanying notes should
be read in conjunction with the Company's Form 10-K for the year ended December
31, 1994.
2. MORTGAGE PORTFOLIO
The Company's mortgage portfolio includes notes receivable - sold properties
and notes receivable - related parties and includes both accrual and impaired
loans.
Effective January 1, 1995, the Company adopted Statement of Financial
Accounting Standards ("SFAS") No. 114, "Accounting by Creditors for Impairment
of a Loan" and, accordingly, have classified loans that are within the scope of
this statement as impaired loans.
Notes receivable - sold properties consist of:
(1) Long-term purchase money notes from sales of properties previously owned by
the Company. These purchase money notes have varying interest rates with
balloon payments due at maturity.
(2) Notes receivable from sales of cooperative apartment units. Substantially
all of these notes were either received from Ivy Properties, Ltd. or its
affiliates (collectively "Ivy") in connection with a settlement agreement
between the Company and Ivy executed in November, 1991 (the "Settlement
Agreement") or from sales of foreclosed cooperative apartments received from
Ivy pursuant to the Settlement Agreement (see Note 4). These notes have market
interest rates and the majority of these notes amortize monthly with balloon
payments due at maturity.
Notes receivable - related parties are all due from Ivy and consist of:
(1) Purchase money notes resulting from sales of property or partnership
interests to Ivy.
(2) Notes receivable relating to loans made by the Company to Ivy in connection
with Ivy's cooperative conversion business.
At September 30, 1995, all of the notes in the Company's mortgage portfolio are
current with the exception of those notes which are classified as impaired
loans in accordance with SFAS No. 114.
Two sold property loans, the Kent Terrace and the Fairfield Towers loans, and
one related party loan, the Ivy Overlook loan, have been classified as
impaired loans and at September 30, 1995, are in the aggregate amount of
$17,767,860. At September 30, 1995, the loans have a net carrying value of
$1,733,976 after deducting discounts of $7,855,291 and deferred gains of
$8,178,593. In accordance with SFAS No. 114, the Company has determined that
at this time no allowances for credit losses are required for these loans
because the net carrying value of these loans is less than the fair value of
the underlying collateral.
The Company recognizes income on these loans only to the extent that such
income is actually received. The average recorded investment in these loans
during the period ending September 30, 1995 was $18,059,482.
The $1,300,000 Kent Terrace note, which was due on October 31, 1994, was not
paid when due because the owner was unable to obtain a new mortgage loan on the
property. As a result, Presidential commenced proceedings to foreclose on its
mortgage on the property and, in February of 1995, the owner of the property
filed for protection under Chapter 11 of the Bankruptcy Act. Through December
31, 1994, substantially all interest had been paid when due and, pending the
outcome of the foreclosure and Bankruptcy proceedings, the loan was not
classified as a nonaccrual loan at December 31, 1994. As a result of the
adoption of SFAS No. 114 by the Company on January 1, 1995, this loan has been
classified as an impaired loan. At September 30, 1995, the outstanding
principal balance of this loan was $1,300,000 and there was $338,190 of interest
deferred in accordance with the terms of the note. The net carrying value of
the note was $329,212 after a deferred gain of $970,788.
The Fairfield Towers and Overlook loans which were classified as nonaccrual
loans at December 31, 1994 have been classified as impaired loans in
accordance with SFAS No. 114. There have been no significant changes in the
status of these loans since December 31, 1994 with the exception of the
modification of the Overlook loan discussed below. Condominium sales at the
Fairfield Towers property have continued and an additional 21 units were
sold during the nine months ended September 30, 1995.
Effective April 1, 1995, the Company and Ivy modified the terms of the Overlook
loan to extend the maturity date from November 21, 1994 to December 31, 2003.
From April 1, 1995 through December 31, 1995, the loan will bear interest at
the rate of 5-1/2% per annum and from January 1, 1996 until maturity, the loan
will bear interest at the rate of 6% per annum. The Overlook loan, which is a
nonrecourse loan, continues to be secured by three second mortgages (the
"Collateral Security") with face values totalling $1,639,396 at September 30,
1995. Interest will be due and payable only to the extent of interest payments
received by Ivy on the Collateral Security. To the extent that Ivy receives
interest on the Collateral Security in excess of the interest due on the
Overlook loan, Ivy shall pay such amounts to Presidential to be applied by
Presidential (a) first in reduction of any Deferred Interest (past due interest
which has not been accrued for financial reporting purposes) and (b) then in
reduction of the outstanding principal balance.
At the time of the modification, the Overlook loan had an outstanding principal
balance of $2,306,843. Such amount exceeded the Collateral Security by $667,447
and, as a result, the Company reduced the gross carrying value of the loan and
its related deferred gain by the $667,447. The net carrying value of the
Overlook loan remains at zero at September 30, 1995.
The following table reflects the activity in impaired loans.
<TABLE>
IMPAIRED LOANS
----------------
<CAPTION>
Impaired Impaired
Loan Additions Loan
Balance (Payments) Balance
Loan Description 12/31/94 1995 9/30/95
----------------------------------- ------------- ------------ ------------
<S> <C> <C> <C>
Notes receivable-sold properties:
Properties previously owned-
Fairfield Towers $14,879,200 ($50,736) $14,828,464
Kent Terrace 1,300,000 1,300,000
Notes receivable-related parties:
Sold properties-
Overlook (1) 2,306,843 (667,447) 1,639,396
------------- ------------ ------------
Total $17,186,043 $581,817 $17,767,860
============= ============ ============
Discount Deferred Net
on Gain on Carrying
Loans Loans Value
Loan Description 9/30/95 9/30/95 9/30/95
----------------------------------- ------------- ------------ ------------
Notes receivable-sold properties:
Properties previously owned-
Fairfield Towers ($7,855,291) ($5,568,409) $1,404,764
Kent Terrace (970,788) 329,212
Notes receivable-related parties:
Sold properties-
Overlook (1) (1,639,396)
------------- ------------ ------------
Total ($7,855,291) ($8,178,593) $1,733,976
============= ============ ============
Nine months ended September 30,
--------------------------------
1995 1994
------------ ------------
Reported Interest Income and
Amortization of Discount (Cash Basis)
-----------------------------------
Fairfield Towers - interest income $40,820 $361
Fairfield Towers - amortization of discount 26,877 56,314
Kent Terrace - interest income (2) 82,307
Overlook - interest income 83,678 103,799
------------ ------------
Total $233,682 $160,474
============ ============
Recognized Gain from Sale of Property
-------------------------------------
Fairfield Towers $23,859 $49,990
Kent Terrace (2)
Overlook 28,116
------------ ------------
Total $23,859 $78,106
============ ============
Nonreported Interest Income and Amortization of Discount
---------------------------------------------------------
The following additional amounts would have been reported
if these loans had been fully performing:
Fairfield Towers - interest income $709,539 $756,220
Fairfield Towers - additional interest income 83,517 162,608
Fairfield Towers - amortization of discount 590,614 468,006
Kent Terrace - interest income (2) 120,737
Overlook - interest income 37,820 222,196
------------ ------------
Total $1,542,227 $1,609,030
============ ============
<FN>
(1) The $667,447 reduction for Overlook is an adjustment of the carrying
value of the note so that it will not exceed the face value of the
Collateral Security. Deferred gain was reduced by the same amount.
(2) Kent Terrace was not impaired in 1994 and, as a result, no amounts
are listed for the nine months ended September 30, 1994.
</TABLE>
3. REAL ESTATE
Real estate is comprised of the following:
September 30, December 31,
1995 1994
------------- ------------
Land $ 3,615,176 $ 3,615,176
Buildings and leaseholds 20,108,073 19,779,473
Furniture and equipment 95,496 84,978
----------- -----------
Total real estate $23,818,745 $23,479,627
=========== ===========
4. FORECLOSED PROPERTIES
At September 30, 1995, Presidential owns a number of cooperative apartment
units which it had received in satisfaction of certain loans due Presidential.
These cooperative apartment units are located at five properties.
Cooperative apartment units at four properties were received from Ivy in 1991
and 1992 in connection with the Settlement Agreement. In the fourth quarter of
1994, Presidential received five cooperative apartment units at Long Beach, New
York from Ivy in payment of the $57,592 outstanding loan on that property and
$44,204 of other amounts due to Presidential pursuant to the Settlement
Agreement. These cooperative apartment units are reported as foreclosed
properties on Presidential's consolidated balance sheets and are carried at the
lower of cost or estimated fair value (net of estimated costs to sell).
Net loss from operations of foreclosed properties is reported as a separate
line item on the statement of operations, while net cash receipts from
operations of foreclosed properties reduces the Company's carrying value of the
foreclosed property.
The following table presents the Company's foreclosed properties, loss from
operations of foreclosed properties, gain (loss) from sales of foreclosed
properties and number of units sold:
<TABLE>
Foreclosed properties:
---------------------------
<CAPTION>
Property Name and Location
---------------------------------------------------------------
Hastings 6300 Riverdale
330 W. 72nd St. Gardens Ave. Towne House
New York, Hastings, Bronx, New Rochelle,
New York New York New York New York
------------ --------- ----------- -------------
<S> <C> <C> <C> <C>
Balance January 1, 1995 $55,840 $119,106 $76,196 $373,264
Capitalized costs 11,965 36,086
Net carrying value of property sold (72,748) (43,674)
Net cash receipts from operations (3,562)
------------ --------- ----------- -------------
Balance September 30, 1995 $52,278 $58,323 $76,196 $365,676
============ ========= =========== =============
Loss from operations of foreclosed properties:
-------------------------------------------------------
Nine months ended September 30, 1995 $25,094 $13,542 $23,794
============ ========= =========== =============
Nine months ended September 30, 1994 $13,084 $9,339
============ ========= =========== =============
Gain (loss) from sales of foreclosed properties:
-------------------------------------------------------
Nine months ended September 30, 1995 $24,185 $30,882
============ ========= =========== =============
Nine months ended September 30, 1994 $78,485 $33,530
============ ========= =========== =============
Number of units sold:
---------------------------
Nine months ended September 30, 1995 13 3
============ ========= =========== =============
Nine months ended September 30, 1994 1
============ ========= =========== =============
Property Name and Location
--------------------------------------------
Long Beach Hoboken Total
Long Beach, Hoboken, Foreclosed
New York New Jersey (1) Properties
------------ --------- -----------
Balance January 1, 1995 $102,521 $ $726,927
Capitalized costs 7,778 55,829
Net carrying value of property sold (51,053) (167,475)
Net cash receipts from operations (3,562)
------------ --------- -----------
Balance September 30, 1995 $59,246 $ $611,719
============ ========= ===========
Loss from operations of foreclosed properties:
------------------------------------------------------- Total Loss
-----------
Nine months ended September 30, 1995 $14,344 N/A $76,774
============ ========= ===========
Nine months ended September 30, 1994 N/A $43,356 $65,779
============ ========= ===========
Gain (loss) from sales of foreclosed properties:
------------------------------------------------------- Total
Gain (Loss)
-----------
Nine months ended September 30, 1995 ($2,875) N/A $52,192
============ ========= ===========
Nine months ended September 30, 1994 N/A ($55,959) $56,056
============ ========= ===========
Number of units sold:
--------------------------- Total
Units Sold
-----------
Nine months ended September 30, 1995 2 N/A 18
============ ========= ===========
Nine months ended September 30, 1994 N/A 40 41
============ ========= ===========
<FN>
(1) The remaining Hoboken apartment buildings were sold in June, 1994.
</TABLE>
5. MINORITY PARTNERS' INTEREST
Presidential is the General Partner of UTB Associates and Metmor Plaza
Associates, partnerships in which Presidential has a 66-2/3% interest and a 25%
interest, respectively. As the General Partner of these partnerships,
Presidential exercises effective control over the business of these
partnerships, and, accordingly, has included 100% of the account balances of
these partnerships in the accompanying financial statements (see Note 1-B).
The minority partners' interest reflects the minority partners' equity in the
partnerships.
Included in the Company's mortgage debt is a mortgage note payable by the
Metmor Plaza Associates partnership which is substantially in excess of the
historical cost of the property. This was due to a refinancing of the original
mortgage note on the building and subsequent distribution of these proceeds to
the partners. This event resulted in a negative partnership interest for each
partner and a negative minority partners' interest on the Company's books. The
estimated fair value of the building is significantly greater than the mortgage
debt and the minority partners' interest is expected to be recovered when the
building is sold and the partnership is liquidated.
Minority partners' interest is comprised of the following:
September 30, December 31,
1995 1994
------------- ------------
Metmor Plaza Associates $4,287,553 $4,537,001
UTB Associates (252,992) (255,739)
---------- ----------
Total minority partners' interest $4,034,561 $4,281,262
========== ==========
6. SECURITIES AVAILABLE FOR SALE
The Company's investments are marketable equity securities consisting of stocks
of listed corporations. Effective January 1, 1994, the Company adopted SFAS
No. 115, "Accounting for Certain Investments in Debt and Equity Securities".
The Company does not acquire securities for purposes of engaging in trading
activities and, as a result, the Company's investments are classified as
securities available for sale in accordance with this pronouncement.
Disposition of such securities may be appropriate for either liquidity
management or in response to changing economic conditions.
The cost and fair value of securities available for sale are as follows:
September 30, December 31,
1995 1994
------------- ------------
Cost $2,324,965 $2,051,908
Gross unrealized gains 37,252 14,804
Gross unrealized losses (71,988) (299,861)
---------- ----------
Fair value $2,290,229 $1,766,851
========== ==========
Net unrealized loss on securities available for sale, which is a separate
component of stockholders' equity on the Company's consolidated balance sheets,
decreased by $250,321 from $285,057 at December 31, 1994 to $34,736 at September
30, 1995.
During the nine months ended September 30, 1995, the Company sold securities
available for sale for gross proceeds of $113,000 and a gross (and net) loss of
$1,002. During the nine months ended September 30, 1994, the Company sold
securities available for sale for gross proceeds of $100,000 and a gross (and
net) loss of $6. Gains and losses on sales of securities are determined using
the specific identification method.
7. INCOME TAXES
Presidential elected to qualify as a Real Estate Investment Trust effective
January 1, 1982 under Sections 856-860 of the Internal Revenue Code. Under
those sections, a REIT which distributes at least 95% of its real estate
investment trust taxable income to its shareholders each year by the end of
the following year and which meets certain other conditions will not be taxed
on that portion of its taxable income which is distributed to its shareholders.
Upon filing the Company's income tax return for the year ended December 31,
1994, Presidential applied its available 1994 stockholders' distributions and
elected to apply (under Section 858 of the Internal Revenue Code) all but
approximately $8,000 of its 1995 stockholders' distributions to reduce its
taxable income for 1994 to zero.
Furthermore, the Company had taxable income (before distributions to
stockholders) for the nine months ended September 30, 1995 of approximately
$1,117,000 ($.32 per share), which included approximately $238,000 ($.07 per
share) of capital gains. This amount will be reduced by 1995 distributions
that were not utilized in reducing the Company's 1994 taxable income and by any
eligible 1996 distributions that the Company may elect to utilize as a reduction
of its 1995 taxable income.
Presidential intends to continue to maintain its REIT status and although no
assurances can be given at this time, the Company expects that it will not have
to pay Federal income taxes for 1995 because its present intention is to
distribute all of its 1995 taxable income during 1995 and 1996. Therefore, no
provision for income taxes has been made at September 30, 1995.
Presidential has, for tax purposes, reported the gain from the sale of certain
of its properties using the installment method.
8. PENSION PLANS
Defined Benefit Plan
Effective January 1, 1994, the Company adopted a noncontributory defined
benefit pension plan, which covers substantially all of its employees. The
plan provides monthly retirement benefits commencing at age 65. The monthly
benefit is equal to the sum of (1) 6.5% of average monthly compensation
multiplied by the total number of plan years of service (up to a maximum of 10
years), plus (2) .62% of such average monthly compensation in excess of one-
twelfth of covered compensation multiplied by the total number of plan years of
service (up to a maximum of 10 years). The Company makes annual contributions
that meet the minimum funding requirements and the maximum contribution
limitations under the Internal Revenue Code.
Periodic pension costs are reflected in general and administrative expenses in
the Company's consolidated statement of operations.
Net periodic pension cost for the nine months ended September 30, 1995 was
$192,000.
The assumptions for the discount rate, expected long-term rate of return of
assets, and average increase in compensation used in determining net periodic
pension cost were 7%, 7% and 5%, respectively.
Executive Pension Plan
Presidential has employment contracts with several active and retired key
officers and employees. Such contracts are being accounted for as constituting
pension agreements. The contracts generally provide for annual benefits in
specified amounts commencing upon retirement for each participant for life,
with an annual adjustment for an increase in the consumer price index.
Presidential complies with the provisions of SFAS No. 87, "Employers'
Accounting for Pensions". The principal assumption used in the accounting was
a discount rate of 7-1/2%. Periodic pension costs are reflected in general and
administrative expenses in the Company's consolidated statement of operations.
Net periodic pension cost for the nine months ended September 30, 1995, included
the following components:
Service cost-benefits earned during the period $ 8,183
Interest cost on projected benefit obligation 140,121
Net amortization 25,617
--------
Net periodic pension cost $173,921
========
Presidential has elected not to fund expenses accrued under these contracts.
9. POSTRETIREMENT BENEFITS
Presidential has employment contracts with several active and retired key
officers and employees which provide for postretirement benefits other than
pensions (such as health care benefits). The Company complies with the
provisions of SFAS No. 106,"Employers' Accounting for Postretirement Benefits
Other Than Pensions". SFAS No. 106 requires the Company to accrue the
estimated cost of retiree benefit payments during the years the employee
provides services. The components of postretirement benefit cost for the
nine months ended September 30, 1995, were as follows:
Service cost - benefits earned $ 4,109
Interest cost on accumulated postretirement
benefit obligation 28,019
Net amortization (7,128)
-------
Postretirement benefit cost $25,000
=======
PRESIDENTIAL REALTY CORPORATION AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FOR THE NINE AND THREE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
Results of Operations
Financial Information for the nine months ended September 30, 1995 and 1994:
- ----------------------------------------------------------------------------
Income for 1995 increased by $1,298,735 from $7,787,225 in 1994 to $9,085,960
in 1995 primarily as a result of increases in rental income and investment
income, partially offset by a decrease in other income.
Rental income increased by $1,275,216 from $4,711,069 in 1994 to $5,986,285 in
1995. The purchase of the Continental Gardens apartment property in December,
1994, resulted in rental income of $1,235,180 in 1995. Additionally, rental
income increased by $136,686 at the Metmor Plaza property, offset by a decrease
of $55,423 at the Palmer Mapletree property.
Investment income increased by $100,715 from $158,838 in 1994 to $259,553 in
1995 primarily as a result of increased interest income on cash and cash
equivalent accounts and interest income received on mortgage deposits in
escrow.
Other income decreased by $50,736 from $102,618 in 1994 to $51,882 in 1995
because the 1994 period included $41,696 of modification and late fees received
on the Fairfield Towers note and a commitment fee of $15,503 on the Hoboken
purchase money note.
Costs and expenses increased by $1,488,789 from $6,228,151 in 1994 to $7,716,940
in 1995 primarily due to increases in all areas of rental property operations
resulting from the ownership of the Continental Gardens apartment property which
was purchased in December, 1994, as well as increases in operating expenses and
mortgage interest on other rental properties. These increases were offset by
a decrease in general and administrative expenses.
General and administrative expenses decreased by $261,483 from $1,704,257 in
1994 to $1,442,774 in 1995 primarily due to decreases in franchise tax expense
of $61,754, decreases in professional fees, directors fees and expenses, and
executive pension plan expense of $77,045 and decreases in salary expense of
$61,027, as a result of a $52,601 decrease in accruals for contractual bonuses.
Additionally, the 1994 period reflected a $67,200 bad debt related to the
write-off of the Brookline Manor loan.
Rental property operating expenses increased by $782,458 from $1,746,755 in
1994 to $2,529,213 in 1995. The purchase of Continental Gardens referred to
above resulted in increases of $341,249. In addition, at the Palmer Mapletree
property there were increases in bad debts of $46,418, repairs and maintenance
of $36,867 and insurance costs of $79,522. Also, the 1994 period reflected the
receipt of net insurance proceeds of $294,350 pertaining to the flood at the
Cambridge Green Apartments.
Rental property mortgage interest increased by $694,802 from $1,017,763 in 1994
to $1,712,565 in 1995. This increase is primarily due to $532,566 of mortgage
interest for Continental Gardens and an increase of $155,240 for the Metmor
Plaza property. The Metmor Plaza mortgage has a variable rate of interest
based on the Libor rate and the "Section 936" rate (which is established by the
lender), but cannot exceed 8% per annum.
Real estate tax expense increased by $123,648 from $440,781 in 1994 to $564,429
in 1995 as a result of the purchase of Continental Gardens.
Rental property depreciation expense increased by $111,783 from $341,366 in 1994
to $453,149 in 1995 primarily as a result of the purchase of Continental
Gardens. Depreciation for Continental Gardens was $144,170, partially offset
by a decrease of $37,336 pertaining to the Palmer Mapletree property.
Minority interest share of partnership income increased by $61,497 from
$519,549 in 1994 to $581,046 in 1995, as a result of an increase in partnership
income on the Metmor Plaza property.
Loss from operations of foreclosed properties increased by $10,995 from $65,779
in 1994 to $76,774 in 1995 primarily as a result of sales in 1994 and 1995 which
resulted in decreased rental income of $113,745 offset by decreased operating
expenses of $102,750.
Net gain from sales of properties and securities are sporadic (as they depend
on the timing of sales or the receipt of installments or prepayments on
purchase money notes). In 1995, the net gain from sales of properties and
securities was $38,150 compared with a net loss of $34,342 in 1994. The 1995
gain was primarily a result of the receipt of principal payments on the
Fairfield Towers note. The 1994 loss was the result of a $172,442 loss on the
write-off of the loan in process of foreclosure on the Brookline Manor property,
partially offset by recognized gains of approximately $138,000 as a result of
the receipt of principal payments on the Presidential Park note, the Fairfield
Towers note, and the Overlook note.
Effective January 1, 1994, the Company adopted Statement of Financial
Accounting Standards ("SFAS") No. 115, "Accounting for Certain Investments in
Debt and Equity Securities". As a result of the adoption of SFAS No. 115, the
cumulative effect of change in accounting for securities of $37,617 of income
was recognized in the first quarter of 1994.
Financial Information for the three months ended September 30, 1995 and 1994:
- -----------------------------------------------------------------------------
Income for 1995 increased by $568,673 from $2,578,896 in 1994 to $3,147,569 in
1995 primarily as a result of increases in rental income and investment income.
Rental income increased by $530,314 from $1,564,520 in 1994 to $2,094,834 in
1995 primarily as a result of rental income of $416,407 at the Continental
Gardens apartment property and increased rental income of $149,976 at the Metmor
Plaza property, offset by decreased rental income of $30,018 at the Palmer
Mapletree property.
Investment income increased by $40,397 from $55,807 in 1994 to $96,204 in 1995
primarily as a result of increased interest income on cash and cash equivalent
accounts and interest income received on mortgage deposits in escrow.
Costs and expenses increased by $544,038 from $2,107,571 in 1994 to $2,651,609
in 1995 primarily due to increases in all areas of rental property operations
resulting from the ownership of the Continental Gardens apartment property which
was purchased in December, 1994, as well as increases in operating expenses
and mortgage interest on other rental properties. These increases were offset
by a decrease in general and administrative expenses.
General and administrative expenses decreased by $154,821 from $610,012 in 1994
to $455,191 in 1995 primarily as a result of a decrease of $25,692 in franchise
tax expense, decreases in salary expense, executive pension plan expense and
directors fees and expenses of $29,186 and a decrease of $31,334 in employee
pension expense. Additionally, in 1994, there was a bad debt write-off of
$67,200 relating to the Brookline Manor loan.
Rental property operating expenses increased by $182,244 from $650,066 in 1994
to $832,310 in 1995. The purchase of Continental Gardens referred to above
resulted in increases of $106,560. In addition, operating expenses for the 1994
period reflected the receipt of net insurance proceeds of $83,599 pertaining to
the flood at the Cambridge Green Apartments.
Rental property mortgage interest increased by $206,238 from $365,989 in 1994
to $572,227 in 1995. This increase is primarily due to $178,908 of mortgage
interest for Continental Gardens and an increase of $28,742 for the Metmor
Plaza property. The Metmor Plaza mortgage has a variable rate of interest
based on the Libor rate and the "Section 936" rate (which is established by the
lender), but cannot exceed 8% per annum.
Real estate tax expense increased by $40,551 from $147,592 in 1994 to $188,143
in 1995 as a result of the purchase of Continental Gardens.
Rental property depreciation expense increased by $36,636 from $117,314 in 1994
to $153,950 in 1995 primarily as a result of the purchase of Continental
Gardens. Depreciation for Continental Gardens was $48,847, partially offset by
a decrease of $12,339 pertaining to the Palmer Mapletree property.
Minority interest share of partnership income increased by $144,367 from
$114,044 in 1994 to $258,411 in 1995, as a result of an increase in partnership
income on the Metmor Plaza property.
Loss from operations of foreclosed properties increased by $24,369 from $20,861
in 1994 to $45,230 in 1995. This increase in loss is primarily the result of
decreased rental income of $12,890, as a result of sales in 1995 and increases
of $10,270 of repairs and maintenance expenses at the Towne House apartments.
Net (gain) loss from sales of foreclosed properties decreased from a gain of
$78,485 in 1994 to a loss of $12,413 in 1995. The 1994 period reflects the
recognition of a $78,485 deferred gain from the sale of a cooperative apartment
unit at 330 West 72nd Street upon the payment of a purchase money note.
Net gain from sales of properties and securities are sporadic (as they depend
on the timing of sales or the receipt of installments or prepayments on purchase
money notes). In 1995, the net gain from sales of properties and securities was
$7,953 compared with a net loss of $97,355 in 1994. The 1994 loss of $97,355
is the result of a loss recorded on the write-off of the Brookline Manor loan
in the amount of $172,442, partially offset by recognized gains of approximately
$75,000 from the receipt of principal payments on the Presidential Park note,
the Fairfield Towers note, and the Overlook note.
Balance Sheet
Effective January 1, 1995, the Company adopted SFAS No. 114, "Accounting by
Creditors for Impairment of a Loan" and, accordingly, have classified loans
that are within the scope of this statement as impaired loans. The Fairfield
Towers and Ivy Overlook loans, which were previously classified as nonaccrual
loans, have been reclassified as impaired loans. The Kent Terrace loan, in the
outstanding principal amount of $1,300,000 and having a net carrying value of
$329,212 after a deferred gain of $970,788, which was classified as an accrual
loan has been reclassified as an impaired loan because the loan was not
paid when due and the borrower filed for protection under Chapter 11 of the
Bankruptcy Act. At September 30, 1995, these loans are in the aggregate amount
of $17,767,860, and have a net carrying value of $1,733,976 after deducting
discounts of $7,855,291 and deferred gains of $8,178,593.
Effective April 1, 1995, the Company and Ivy modified the terms of the Overlook
loan. At the time of the modification, the Overlook loan, which is a
nonrecourse loan, had an outstanding principal balance of $2,306,843 and was
secured by three second mortgages. Since the outstanding principal balance
exceeded the face value of the security for the loan by $667,447, the Company
reduced the gross carrying value of the loan and its related deferred gain by
the $667,447. The net carrying value of the Overlook loan remains at zero at
September 30, 1995.
Foreclosed properties decreased by $115,208 from $726,927 at December 31, 1994
to $611,719 at September 30, 1995. This decrease was primarily the result of
the reduction of $167,475 in the carrying value for eighteen cooperative
apartments sold during the first nine months of 1995, partially offset by
capitalized costs of $55,829.
Securities available for sale increased by $523,378 from $1,766,851 at
December 31, 1994 to $2,290,229 at September 30, 1995. This increase was the
result of a $250,321 increase in the fair value of securities held at September
30, 1995 and $387,060 of additional securities purchased during the period,
offset by the sale of securities having a cost of $114,003.
Other assets decreased by $292,755 from $1,522,248 at December 31, 1994 to
$1,229,493 at September 30, 1995. This decrease was primarily the result of
the sale of the remaining five cooperative apartments at Rye Colony, Rye, New
York which had a basis of $191,386 and which were received from Ivy in 1994 as
partial payment on the Overlook loan. In addition, $102,380 of mortgage and
organization costs were amortized during the period.
Net unrealized loss on securities available for sale decreased by $250,321 from
$285,057 at December 31, 1994 to $34,736 at September 30, 1995. This decrease
in unrealized loss is a result of the increase in the fair value of the
securities available for sale for the period.
Liquidity and Capital Resources
Management believes that the Company has sufficient liquidity and capital
resources to carry on its existing business and, barring any unforeseen
circumstances, to pay the dividends required to maintain REIT status in the
foreseeable future. The Company is actively seeking to expand its portfolio of
real estate equities and plans to utilize for this purpose a portion of its
available funds and additional funds that the Company may receive from balloon
payments due on the Company's notes receivable as they mature, as well as funds
that may be available from external sources. However, the Company's plans to
expand its portfolio of real estate equities may be affected by limitations
on funds available to it on satisfactory terms from external sources.
Presidential does not maintain any line of credit or short term financing
arrangement. At the present time, Presidential obtains funds for working
capital and investment from its available cash and cash equivalents, from
operating activities and from repayments of its mortgage portfolio.
At September 30, 1995, Presidential had $1,470,425 in available cash and cash
equivalents and $2,290,229 in securities available for sale. The September 30,
1995 total of $3,760,654 represents a decrease of $408,408 from the $4,169,062
total at December 31, 1994. This decrease is primarily due to the payment of
$180,833 in accrued bonuses, and employee pension costs of $387,182 paid in 1995
for employee pension costs accrued in 1994 and 1995. In addition, there was a
decrease in cash for the net payments of $274,060 for purchases of securities.
These decreases were partially offset by an increase of $250,321 in the fair
value of securities available for sale and net receipts of $189,771 from rental
property operations and foreclosed property sales.
Operating Activities
Presidential's principal source of cash from operating activities is from
interest on its mortgage and investment portfolio, which was $2,226,668 in 1995,
net of interest payments on wrap mortgage debt. Net cash received from rental
property operations in 1995 was $816,349, net of distributions to minority
partners.
Investing Activities
Presidential holds a portfolio of mortgage notes receivable which consist
primarily of notes arising from sales of real properties previously owned by
the Company. Some of these notes wrap around underlying mortgage debt (the
"Underlying Debt") which is paid by Presidential only out of funds received on
its mortgage portfolio relating to the Underlying Debt. During 1995, the
Company received principal payments of $416,218 on its mortgage portfolio (net
of any principal payments attributable to the Underlying Debt), of which
$356,893 represented prepayments, which are sporadic and cannot be relied upon
as a regular source of liquidity. In 1995, the Company also received $162,710
from sales of foreclosed properties, which are also sporadic.
During 1995, the Company invested $409,264 in additions and improvements to its
properties.
Financing Activities
The Company's indebtedness at September 30, 1995, consisted of $33,279,728 of
mortgages (including $6,169,928 of underlying indebtedness on properties not
owned by the Company but on which the Company holds wraparound mortgages).
The mortgage debt, which is secured by individual properties, is nonrecourse to
the Company and generally is serviced with cash flow from the operations of the
individual properties. During 1995, the Company made $380,024 of principal
payments on mortgage debt on properties which it owns. The mortgages on the
Company's properties are self-liquidating at fixed rates of interest with the
exception of the mortgages on Metmor Plaza and Continental Gardens.
During 1995, Presidential declared cash distributions of $2,109,971 (including
$528,514 payable in the fourth quarter) to its shareholders and received
proceeds from dividend reinvestments of $87,533.
Fairfield Towers
The Company's financial performance and liquidity in 1995 and subsequent years
will be affected by the results of the condominium conversion of Fairfield
Towers Apartments in Brooklyn, New York by the owner of that property. The
Company holds a second mortgage having an outstanding principal balance of
$14,828,464 on this 1,152 unit apartment property, which mortgage was modified
in December, 1992 and is subordinate to a first mortgage having an outstanding
principal balance of $16,278,512. Until the first mortgage is repaid (when
approximately 50% of the units have been sold) Presidential will receive basic
interest on its note payable only out of net cash flow from operations of the
property and release payments upon the sale of each condominium unit averaging
$3,000 per unit. All unpaid basic interest and additional interest (which is
based on percentages of gross sales proceeds) will be deferred until after
repayment of the first mortgage. While the Company's return on the loan during
the initial years of the conversion will be limited, if the conversion is
successful and the first mortgage is repaid, the Company expects to ultimately
recover the outstanding principal balance of the note and substantial amounts
of basic and additional interest. In June of 1994, the owners of the Fairfield
Towers property closed the first sales of the condominium units pursuant to the
conversion of the property to condominium status. At September 30, 1995, a
total of 71 units were sold.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibit 27. Financial Data Schedule.
(b) No reports on form 8-K have been filed during the quarter ended
September 30, 1995.
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.
PRESIDENTIAL REALTY CORPORATION
(Registrant)
DATE: November 8, 1995 By: /s/ Jeffrey F. Joseph
---------------------
Jeffrey F. Joseph
President
DATE: November 8, 1995 By: /s/ Elizabeth Delgado
---------------------
Elizabeth Delgado
Treasurer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 1,470,425
<SECURITIES> 2,290,229
<RECEIVABLES> 20,110,948
<ALLOWANCES> 189,315
<INVENTORY> 0
<CURRENT-ASSETS> 8,185,162
<PP&E> 23,818,745
<DEPRECIATION> 4,920,037
<TOTAL-ASSETS> 49,943,411
<CURRENT-LIABILITIES> 4,391,358
<BONDS> 32,292,718
<COMMON> 353,756
0
0
<OTHER-SE> 9,855,750
<TOTAL-LIABILITY-AND-EQUITY> 49,943,411
<SALES> 0
<TOTAL-REVENUES> 9,085,960
<CGS> 0
<TOTAL-COSTS> 4,254,799
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<INTEREST-EXPENSE> 2,002,177
<INCOME-PRETAX> 1,407,170
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