SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended March 31, 2000 Commission file number 2-90654
AMRECORP REALTY FUND II
(Exact name of registrant as specified in its charter)
TEXAS 75-1956009
(State or other jurisdiction of (IRS Employer
incorporation or organization Identification Number)
6210 Campbell Road Suite 140
Dallas, Texas 75248
(Address of principal executive offices)
Registrant's telephone number, including area code: (972) 380-8000.
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes: Y No:
REGISTRANT IS A LIMITED PARTNERSHIP
TABLE OF CONTENTS
Item 1. Financial Statements
The following Unaudited financial statements are filed herewith:
Consolidated Balance Sheet as of March 31, 2000 and
December 31, 1999 Page 3
Consolidated Statements of Operations for the Three months
Ended March 31, 2000 and 1999 Page 4
Consolidated Statements of Cash Flows for the Three months Ended
March 31, 2000 and 1999 Page 5
Item 2. Results of Operations and Management's Discussion and
Analysis of Financial Condition Page 6
Liquidity and Capital Resources Page 7
Other Information Page 8
Signatures Page 9
The statements, insofar as they relate to the period subsequent
to December 31, 1999 are Unaudited.
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements
AMRECORP REALTY FUND II
Condensed Consolidated Balance Sheets
March 31, December 31,
2000 1999
(Unaudited)
ASSETS
Real Estate assets, at cost $580,045 $580,045
Land 4,617,978 4,617,978
Buildings and improvements 5,198,023 5,198,023
Less: Accumulated depreciation (2,973,170) (2,923,170)
Real estate, net 2,224,853 2,274,853
Investments in Real Estate Held for Sale
Cash including cash investments 429,875 378,479
Escrow deposits 150,105 205,850
Deferred Costs and Fees 33,641 35,352
Other assets 2,911 6,681
Total assets $2,841,385 $2,901,215
LIABILITIES AND PARTNERS' EQUITY:
LIABILITIES:
Mortgage and notes payable $2,312,784 $2,325,774
Payable to Affiliates 3,556 977
Interest payable 0 18,161
Real estate taxes payable 23,751 0
Security deposits 18,701 18,901
Accounts payable and accrued expenses 66,511 130,174
Total liabilities 2,425,303 2,493,987
PARTNERS CAPITAL (DEFICIT):
Limited Partners 505,169 496,403
General Partners (89,087) (89,175)
Total Partners Capital (Deficit) 416,082 407,228
Total Liability and Partners equity $2,841,385 $2,901,215
See notes to Condensed Consolidated Financial Statements
AMRECORP REALTY FUND II
Condensed Consolidated Statement of Operations
(Unaudited)
Three Months Ended
March 31,
REVENUES 2000 1999
Rental income $201,314 $197,508
Other property 7,058 5,556
Total revenues 208,372 203,064
EXPENSES
Salaries & wages 19,114 12,740
Maintenance & repairs 13,094 15,119
Utilities 6,994 6,880
Real estate taxes 23,751 20,250
General administrative 6,810 22,316
Contract services 9,873 10,604
Insurance 3,770 3,641
Interest 54,144 55,015
Depreciation and amortization 50,000 48,000
Property managment fees 10,257 10,091
Amortization of deferred costs and fees 1,711 1,711
Total expenses 199,518 206,367
NET INCOME (LOSS) $8,854 ($3,303)
NET INCOME PER SHARE $0.61 $(0.23)
See Notes to Condensed Consolidated Financial Statements
AMRECORP REALTY FUND II
Condensed Consolidated Statement of Cash Flows
Unaudited
Three Months Ended
March 31,
2000 1999
CASH FLOWS FROM OPERATING ACTIVITY
Net income (loss) $8,854 ($3,303)
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation and amortization 50,000 48,000
Net Effect of changes in operating accounts
Escrow deposits 55,745 36,126
Deferred Costs 1,711 1,711
Accrued real estate taxes 23,751 20,220
Security deposits (200) 251
Accounts payable (63,663) (69,826)
Other assets 3,770 3,640
Net cash used by operating activities 79,968 36,819
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash used by operating activities 0 0
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of mortgage notes payable (12,990) (11,895)
Proceeds from amounts due affiliates 2,579 13,212
Increase in accrued interest (18,161) 0
Net cash provided by investing activities (28,572) 1,317
NET INCREASE (DECREASE) IN CASH AND CASH 51,396 38,136
EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF 378,479 217,493
PERIOD
CASH AND CASH EQUIVALENT, END OF PERIOD $429,875 $255,629
See Notes to Condensed Consolidated 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. It is suggested that
these condensed financial statements be read in conjunction
with the financial statements and notes thereto included in the
Partnership's latest annual report on Form 10-K.
Item 2. RESULTS OF OPERATIONS AND MANAGEMENT'S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION
Results of Operations
At March 31, 2000 the Partnership owned one property, Chimney
Square Apartments located in Abilene Texas with approximately
126,554 net rentable square feet.
The occupancy of Chimney Square averaged 98.3% during the first
quarter of 2000 as compared to 94.8% for the fist quarter of
1999.
FIRST QUARTER 2000 COMPARED TO FIRST QUARTER 1999
Revenue from property operations increased $5,308 or 2.61%, for
the first quarter of 2000, as compared to the 1999 first
quarter. The increase in rental income of $3,806 or 1.93% is
primarily due to increased occupancy and higher rental rates.
Other income increased $1,502 or 27.03% primarily due to
increased late charges and other fees. The following table
illustrates the components:
Increase Per Cent
(Decrease) Change
Rental income $3,806 1.93%
Other property 1,502 27.03%
$5,308 2.61%
Property operating expenses decreased $6,849 or 3.32%, for the
first quarter of 2000, as compared to the same period in 1999.
This was primarily due from decreased general and
administrative costs which dropped $15,506 or 69.48% from
decreases in postage related mailings. Salaries & wages
increased $6,374 or 50.03% due to increased staff levels. Real
estate taxes increased $3,501 or 17.29% due to higher property
value assessments. Maintenance and repairs decreased $2,025 or
13.39% from lower turnover of residents. The following table
illustrates the components by category:
Increase Per Cent
(Decrease) Change
Salaries & wages $6,374 50.03%
Maintenance & repairs (2,025) 13.39%
Utilities 114 1.66%
Real estate taxes 3,501 17.29%
General administrative (15,506 69.48%
Contract services (731) 6.89%
Insurance 129 3.54%
Interest (871) 1.58%
Depreciation and amortization 2,000 4.17%
Property management fees 166 1.65%
Net Increase (Decrease) ($6,849) 3.32%
LIQUIDITY AND CAPITAL RESOURCES
While it is the General Partners primary intention to operate
and manage the existing real estate investments, the General
Partner also continually evaluates this investment in light of
current economic conditions and trends to determine if these
assets should be considered for disposal. Accordingly, in 1996
the Partnership sold its investment in the shopping center
located in Lancaster, Texas, recognizing a loss of $10,177.
Shorewood Apartments, an apartment complex located in
Charlotte, North Carolina was sold in January 1997. Net
proceeds from the sale was 1.3 million dollars resulting in
cash distribution of $100.00 per unit.
As of March 31, 2000, the Partnership had $429,875 in cash and
cash equivalents as compared to $378,479 as of December 31
1999. The net increase in cash of $51,396 is principally due
to cash flow from operations.
The property is encumbered by non-recourse mortgage as of
March 31, 2000, with an interest rate of 9.325%. Required
principal payments on this mortgage note for the three years
ended December 31, 2002, are $40,717, $44,680, and $49,029
respectively.
For the foreseeable future, the Partnership anticipates that
mortgage principal payments (excluding balloon mortgage
payments), improvements and capital expenditures will be funded
by net cash from operations. The primary source of capital to
fund future Partnership acquisitions and balloon mortgage
payments will be proceeds from the sale, financing or
refinancing of the properties.
On February 7, 1995 the Partnership refinanced the loan on
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 Apartments, owned 99% by the Fund.
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 is performed by Univesco, Inc., a Texas
corporation, Robert J. Werra, CEO.
Management intends to continue operating the Partnership
in its present form while investigating options to improve
operations of the Partnership.
Part II
Other Information
Item 1. Legal Proceedings
See Part I 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 Matter to a Vote of Security Holders.
None
Item 5. Other Information.
None
Item 6. Exhibits and Reports on Form 8-K.
None.
(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. 2-90654
effective July 6, 1984.
Limited Partnership Agreement
incorporated by reference to
Registration Statement No. 2-90654
effective July 6, 1984.
11 Not Applicable
15 Not Applicable
18 Not Applicable
19 Not Applicable
20 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 thereunto duly
authorized.
AMRECORP REALTY FUND II
a Texas limited partnership
By: /s/ Robert J. Werra
Robert J. Werra,
General Partner
Date: May 8, 2000
[ARTICLE] 5
[LEGEND]
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM BOTH
THE MARCH 31, 2000 BALANCE SHEET AND STATEMENT OF INCOME AND EXPENSES
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
[/LEGEND]
[CIK] 0000745061
[NAME] AMRECORP REALTY FUND II
<TABLE>
<S> <C>
[PERIOD-TYPE] 3-MOS
[FISCAL-YEAR-END] DEC-31-2000
[PERIOD-END] MAR-31-2000
[CASH] 429,875
[SECURITIES] 0
[RECEIVABLES] 0
[ALLOWANCES] 0
[INVENTORY] 0
[CURRENT-ASSETS] 0
[PP&E] 5,198,023
[DEPRECIATION] 2,973,170
[TOTAL-ASSETS] 2,841,385
[CURRENT-LIABILITIES] 0
[BONDS] 2,312,784
[PREFERRED-MANDATORY] 0
[PREFERRED] 0
[COMMON] 0
[OTHER-SE] 416,082
[TOTAL-LIABILITY-AND-EQUITY] 2,841,385
[SALES] 0
[TOTAL-REVENUES] 208,372
[CGS] 0
[TOTAL-COSTS] 0
[OTHER-EXPENSES] 145,374
[LOSS-PROVISION] 0
[INTEREST-EXPENSE] 54,144
[INCOME-PRETAX] 0
[INCOME-TAX] 0
[INCOME-CONTINUING] 0
[DISCONTINUED] 0
[EXTRAORDINARY] 0
[CHANGES] 0
[NET-INCOME] 8,854
[EPS-BASIC] 0.61
[EPS-DILUTED] 0
</TABLE>
