SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 2O549
FORM 1O-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended June 30, 1995 Commission file number 2-9O654
AMRECORP REALTY FUND II
(Exact name of registrant as specified in its charter)
Texas 75-1956009
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
16415 Addison Road, Suite 200
Dallas, Texas 75248
(Address of principal executive offices)
Registrant's telephone number, including area code: (214) 38O-8OOO
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 9O days.
Yes: Y No:
REGISTRANT IS A LIMITED PARTNERSHIP
PART I
FINANCIAL INFORMATION
Item 1. Financial Statements
The following unaudited financial statements are filed herewith:
Balance Sheet..................................................Page 3
Statement of Income and Expenses...............................Page 4
(Quarterly)
Statement of Income and Expenses...............................Page 5
(Year to Date)
Statement of Changes In Partner's Equity.......................Page 6
Statement of Cash Flows........................................Page 7
Notes to Financial Statements..................................Page 8
The statements, insofar as they relate to the period subsequent
to December 31, 1994, are unaudited.
AMRECORP REALTY FUND II
BALANCE SHEET
June 30, 1995 June 30, 1994
Unaudited Audited
ASSETS
Investment in realestate
Land $ 1,858,048 $ 1,858,048
Building & Improvements 10,023,687 10,023,687
Furniture & fixtures 544,421 544,421
$12,426,156 $12,426,156
Less: Accumulated Depreciation (5,009,182) (4,793,182)
$ 7,416,974 $ 7,632,974
Cash including cash investments 267,248 480
Escrow deposits 191,556 13,203
Deferred costs and fees 117,271 69,108
Other assets 47,710 36,748
Total assets $ 8,040,759 $ 7,752,513
Liabilities: and partner equity:
Mortgage and notes payable 6,578,395 6,203,740
Accounts payable & accrued expenses 119,480 79,782
Real estate taxes payable 75,090 0
Security deposits 44,258 41,243
Accrued interest 233,781 235,161
Due to affiliates 5,303 3,283
Total liabilities $ 7,056,307 $ 6,563,209
Partners equity 984,452 1,189,304
Total liabilities and partner equity $ 8,040,759 $ 7,752,513
AMRECORP REALTY FUND II
STATEMENT OF INCOME AND EXPENSES
(UNAUDITED)
Quarter ended Quarter ended
June 30, 1995 June 30, 1994
Income
Rentals $ 393,880 $ 384,833
Other 10,718 5,749
Total $ 404,598 $ 390,582
Expenses:
Maintenance & repairs 77,359 43,029
Salaries & wages 42,871 30,997
Real estate taxes 32,790 19,618
Contract services 19,816 19,618
General & administrative 19,101 27,384
Utilities 17,539 16,765
Insurance 8,715 8,386
$ 218,191 $ 194,179
Interest 149,650 161,020
Depreciation and amortization 108,000 154,000
General partner fees:
Property management fees 20,844 19,768
Deferred costs and fees 1,741 1,661
Total expenses $ 498,426 $ 530,628
Net income before $ (93,828) $(140,046)
extraordinary item
Extraordinary items:
Loss on extinguishment of 0 (60,531)
debt
Net income $ (93,828) $(200,577)
AMRECORP REALTY FUND II
STATEMENT OF INCOME AND EXPENSES
(UNAUDITED)
Year To Date Year To Date
June 30,1995 June 30,1994
INCOME
Rentals $ 786,509 $ 762,564
Other 26,599 11,234
Total $ 813,108 $ 773,798
Expenses:
Maintenance & repairs 147,710 83,169
Salaries & wages 80,533 64,461
Real estate taxes 75,090 96,000
General & administrative 50,485 48,895
Utilities 37,220 31,819
Contract service 36,340 36,568
Insurance 17,790 15,354
$ 445,168 $ 376,266
Interest 311,393 321,138
Depreciation and amortization 216,000 308,000
General partner fees:
Property management fees 41,917 39,531
Deferred costs and fees 3,482 3,161
Total expenses $1,017,960 $1,048,096
Net income before $(204,852) $(274,298)
extraordinary items
Extraordinary items:
Loss on extinguishment of debt 0 (60,531)
Net income (loss) $(204,852) $(334,829)
AMRECORP REALTY FUND II
STATEMENT OF CHANGES IN PARTNER'S EQUITY
THREE MONTHS ENDED JUNE 30, 1995
Total Limited General
Partners Partners
Balance April 1, 1995 $1,078,280 $ (109,370) $1,187,650
Net income (loss) (93,828) (938) (92,890)
Balance June 30, 1995 $ 984,452 $ (110,308) $1,094,760
AMRECORP REALTY FUND II
STATEMENT OF CASH FLOWS
For The Quarter
Ended
JUNE 30, 1995
Cash flows from operating activities:
Net income (loss) $ (93,828)
Adjustments to reconcile net income to
Cash provided by operations:
Depreciation and amortization 108,000
Changes in assets and liabilities
Real estate taxes payable 32,790
Escrow deposits (24,724)
Due to affiliates (1,340)
Accounts payable and accrued expenses 37,655
Security deposits 750
Accured interest 32,514
Deferred costs and fees 24,445
Other assets (33,930)
Total adjustments $ 176,160
Net cash provided by operating activities $ 82,332
Cash flows provided by investing activities
Net cash provided by investing activities 0
Cash flows provided by financing activities
Payments on mortgage payable (35,197)
Net cash provided by financing activities $ (35,197)
Net increase (decrease) in cash
And cash equivalents $ 47,135
Cash and cash equivalents
Begining of quarter 220,113
Cash and cash equivalents
End of quarter $ 267,248
Supplemental disclosure of cash flow
information:
Cash paid during the quarter for interest 136,336
AMRECORP REALTY FUND II
NOTES TO FINANCIAL STATEMENTS
Basis of Presentation:
Certain information and footnote disclosures normally
included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or
omitted pursuant to such rules and regulations, although the
Partnership believes that the disclosures are adequate to make
the information presented not misleading.
Organization:
The Partnership was formed April 16, 1984 by filing a
Certificate of Limited Partnership under the Statutes of the
State of Texas for the purpose of investing in income producing
real estate. The Partnership began offering Limited Partnership
interests to the public effective July 6, 1984. The sale of Fund
II concluded on July 5, 1985 with sales of 14,544 units.
Item 2. Management's Discussion and Analysis of Financial
Conditions and Results of Operations
Occupancy levels of the Partnerships properties as of April
2, 1995 are as follows: Chimney Square 92.2%; Shorewood 94.8%;
Lancaster 90.0%.
The Partnership's property operations improved from 1993 to
1994 due to improved occupancy levels and rental rates. These
improvements in rental income were offset primarily by increases
in repairs and maintenance, real estate taxes and general and
administrative expenses. Property management fees also increased
due to increases in rental income level.
The Partnership has incurred losses from operations for the
years ended December 31, 1994 and 1993. There are no further
commitments for limited partner contributions or general partner
funding of cash flow deficits. Accordingly, the Partnership's
ability to continue in its present form is uncertain. The
refinancing of the Partnership's mortgage loans, described below,
plus an improvement in the markets where these properties are
located has benefitted the Partnership's financial position.
Management intends to continue operating the Partnership in its
present form while investigating options to improve operations of
the Partnership.
On February 7, 1995 the Partnership refinanced the loan on
the Chimney Square Apartments. The original loan matured and a
new $2,475,000 loan bearing interest at 9.325% per year was
secured from Newport Mortgage Company, L.P. The loan matures on
March 1, 2005. In connection with this loan, the lender
required, and the Partnership provided, a new single asset
partnership known as Chimney Square, L.P., a Texas limited
partnership to hold Chimney Square Apartments.
In May 2, 1994 the Partnership refinanced the loan on the
Shorewood Apartments. A new $2,725,000 loan bearing interest at
7.75% per year replaced the original loan bearing interest at
11.75%. The new loan with John Hancock Mutual Life Insurance
Company matures on June 1, 2001.
During 1991, the Partnership defaulted on its required
mortgage note payments on the Lancaster Place Shopping Center
mortgage note. The Partnership entered into an agreement with
the note holder (Transamerica) to pay net operating income until
the note matured in 1993. In November 1993 the general partner
negotiated the purchase of the mortgage note from Transamerica
Life Insurance Company. The Partnership had no ability to
purchase the note and the consequence would have been the
foreclosure of the property. The general partner modified the
note after his purchase of it to enable the Partnership to retain
ownership of the Lancaster Place Shopping Center. Effective
November, 1993 the modified note calls for monthly payments of
interest only from available cash flow from the property until
maturity, September 30, 1998. During 1993, the Partnership
recorded an impairment of $136,156 to lower the carrying value of
the fixed assets collateralizing this mortgage note to their
estimated net realizable value. A similar impairment amount of
$150,607 was recorded in 1991.
In February, 1991, Amrecorp Realty Inc., resigned as the
Managing General Partner of the Partnership. As was communicated
to all limited partners this step was taken in order to minimize
any effect that Amrecorp's financial difficulties might have on
the Partnership. Management of the Partnership's assets was
transferred to Univesco, Inc., a Texas corporation, Robert J.
Werra, President.
Management intends to continue operating the Partnership in
its present form while investigating options to improve
operations of the Partnership and to refinance and modify the
existing indebtedness. However, there is no assurance management
will be successful in its efforts, in which case the
Partnership's assets could be foreclosed upon and the Partnership
would cease to be a going concern.
PART II
Item 1. Legal Proceedings.
See PartI, Item 2. Management's Discussion and Analysis
of Financial Conditions and Results of Operations.
Item 2. Changes in Securities.
None.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Submission of Matters to a Vote of Security Holders.
None.
Item 5. Other Information.
None.
Item 6. Exhibits and Reports on Form 8-K.
(a) The following documents are filed herewith or
incorporated herein by reference as indicated as Exhibits:
Exhibit Designation Document Description
Limited Partnership
Agreement incorporated by
reference to Registration
Statement No. 2-9O654
effective July 6, 1984.
Limited Partnership
Agreement, incorporated by
reference to Registration
Statement No. 2-9O654
effective July 6, 1984.
11 Not applicable.
15 Not applicable.
18 Not applicable.
19 Not applicable.
2O Not applicable.
23 Not applicable.
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 hereunto duly authorized.
AMRECORP REALTY FUND II, a Texas
limited partnership
By: /s/ Robert J. Werra
Robert J. Werra, General Partner
Date: August 11, 1995
