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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
October 20, 1998
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Date of Report (Date of Earliest Event Reported)
TRANSCONTINENTAL REALTY INVESTORS, INC.
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(Exact Name of Registrant as Specified in its Charter)
Nevada 0-13291 94-6565852
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(State of Incorporation) (Commission (IRS Employer
File No.) Identification No.)
10670 North Central Expressway, Suite 300, Dallas, TX 75231
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(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (214) 692-4700
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Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
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This Form 8-K/A amends the Registrant's current report on Form 8-K, dated
October 20, 1998 as follows:
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS - EXHIBIT 99.10 - in its entirety.
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SIGNATURE 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 hereto duly authorized.
TRANSCONTINENTAL REALTY INVESTORS,
INC.
Date: January 27, 1999 By: /s/ Thomas A. Holland
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Thomas A. Holland
Executive Vice President and
Chief Financial Officer
(Principal Financial and
Accounting Officer)
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INDEX TO EXHIBITS
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<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
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<S> <C>
99.10 THE CLIFFS OF ELDORADO STATEMENT OF REVENUES AND DIRECT OPERATING
EXPENSES NINE MONTHS ENDED DECEMBER 31, 1997
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EXHIBIT 99.10
THE CLIFFS OF ELDORADO
STATEMENT OF REVENUES
AND DIRECT OPERATING EXPENSES
NINE MONTHS ENDED DECEMBER 31, 1997
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Independent Auditors' Report
To the Board of Trustees
Transcontinental Realty Investors, Inc.
We have audited the accompanying statement of revenues and direct operating
expenses of The Cliffs of Eldorado from inception, April 1, 1997, (date of
commencement of marketing and rent-up activities, etc.) through December 31,
1997. This statement of revenues and direct operating expenses is the
responsibility of the Property's management. Our responsibility is to express an
opinion on this statement of revenues and direct operating expenses based on our
audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the statement of revenues and direct operating expenses
is free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the statement of revenues and
direct operating expenses. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall statement of revenues and direct operating expenses
presentation. We believe that our audit provides a reasonable basis for our
opinion.
The accompanying financial statement is prepared for the purpose of complying
with the rules and regulations of the Securities and Exchange Commission (for
inclusion in Form 8-K of Transcontinental Realty Investors, Inc.) and, as
described in Note 1, is not intended to be a complete presentation of the
results of operations.
In our opinion, the statement of revenues and direct operating expenses referred
to above presents fairly, in all material respects, the revenues and direct
operating expenses of The Cliffs of Eldorado for the initial period ended
December 31, 1997, in conformity with generally accepted accounting principles.
FARMER, FUQUA, HUNT & MUNSELLE, P.C.
Dallas, Texas
October 30, 1998
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THE CLIFFS OF ELDORADO
STATEMENT OF REVENUES
AND DIRECT OPERATING EXPENSES
Nine months ended December 31, 1997
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<S> <C>
REVENUES
Net rental revenues $572,693
Other revenues 10,177
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Total revenues 582,870
DIRECT OPERATING EXPENSES
Repairs and maintenance 162,483
Salaries and benefits 131,774
Utilities 71,995
Property taxes 39,026
Insurance 7,813
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Total direct operating expenses 413,091
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REVENUES IN EXCESS OF DIRECT OPERATING EXPENSES $169,779
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The accompanying notes are an integral part of this statement.
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THE CLIFFS OF ELDORADO
NOTES TO STATEMENT OF REVENUES
AND DIRECT OPERATING EXPENSES
December 31, 1997
NOTE 1: ORGANIZATION AND BASIS OF PRESENTATION
The Cliffs of Eldorado is a 208-unit apartment complex located in
McKinney, Texas. During 1997, the property was owned by 96
Eldorado I, Ltd. The property began marketing and rent-up
activities on April 1, 1997 and the accompanying financial
statement presents activity for the nine months beginning then and
ending December 31, 1997. The property is operated under the
provisions of Section 221(d)(4) of the National Housing Act, with
mortgage insurance provided by the Federal Housing Administration
(FHA) of the Department of Housing and Urban Development.
The accompanying financial statement does not include a provision
for depreciation and amortization, bad debt expense, interest
expense, or income taxes. Accordingly, this statement is not
intended to be a complete presentation of the results of
operations.
NOTE 2: ACCOUNTING ESTIMATES
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of
revenues and expenses during the reporting period. Actual results
could differ from those estimates.
NOTE 3: OTHER REVENUES
Other revenues consists of the following:
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NSF Fees $ 5,093
Other Income 5,084
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$10,177
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NOTE 4: SUBSEQUENT EVENT
The property was sold to Transcontinental Realty Investors, Inc.,
a Nevada corporation, on October 20, 1998.
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