FORM 10-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the year ended December 31, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period to
Commission file number 0-14542
SECURED INVESTMENT RESOURCES FUND, L.P.
(Exact name of registrant as specified in its charter)
Kansas 48-0979566
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
5453 W. 61st Place, Mission, Kansas 66205
(Address of principal executive offices) (Zip Code)
(Registrant's telephone number,
including area code) (913) 384-5700
Securities registered pursuant to Section 12(b) of the Act:
None
Securities registered pursuant to Section 12(g) of the Act:
Limited Partnership Interests ("Units")
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 such shorter periods 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
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to
the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. [X]
<PAGE>
PART I
Item 1. Business
Secured Investment Resources Fund, L.P. ("Partnership")
is a Kansas limited partnership formed pursuant to the Kansas
Revised Uniform Limited Partnership Act on March 30, 1984.
James R. Hoyt is the Individual General Partner and Secured
Investment Resources, Inc., a Kansas corporation, is the Corporate
General Partner. The Partnership was formed with the intent to
engage in the business of acquiring, improving, developing, operating
and holding for investment, income producing properties with the
objectives of (i) preserving and protecting the Partnership's capital;
(ii) providing capital gains through potential appreciation; (iii)
providing "tax sheltered" cash distributions from operations; (iv)
generating tax losses in excess of tax shelter distributions, which
May be used to offset taxable income from other sources; and (v)
increasing equity through the reduction of mortgage loans on
Partnership properties.
On August 31, 1986, the Partnership closed its offering, having
received gross proceeds of $12,434,750 from the sale of 24,869.5
units of limited partnership interests. This amount includes the
purchase of 190 units by the Corporate General Partner.
The Partnership acquired two garden-style apartment communities in
1985 and three commercial strip shopping centers in 1986. The
General Partners feel that all of these properties met the
Partnership's investment criteria and objectives.
Total rent charges for Sampler Shoppes, Inc. (SSI), the anchor
tenant at Foothills Village Shopping Center, represented
approximately 8.95% and 9.45% of Partnership rent revenues for the
years ended December 31, 1995 and 1994, respectively. As of
December 31, 1994, rent receivable from SSI totaled $230,667. In
January, 1995 the Partnership received payment of the entire amount
due at that time from SSI which was $247,334. On December 31,
1995, there were no monies owed by SSI.
As of December 31, 1995, the Partnership has made cash distributions
to Limited Partners of $5,343,132 for the period June 1, 1985 through
December 31, 1995. No distributions have been made since January
1990. Future distributions will only be made from excess cash flow
not needed for working capital reserves.
<PAGE>
Item 1. Business--Cont'd.
As of December 31, 1995, the Partnership had no employees. Employees
of SPECS, Inc. provide services to the Partnership. The individual
General Partner is a minority shareholder in Specs, Inc.
Competition
The real estate business is highly competitive and the Partnership
competes with numerous entities engaged in real estate activities,
some of which have greater financial resources than those of the
Partnership. The Partnership's management believes that success
against such competition is dependent upon the geographic location
of the property, the performance of property managers, the amount
of new construction in the area and the maintenance and appearance
of the property. With respect to residential property, competition
is also based upon the design and mix of the units and the ability
to provide a community atmosphere for the tenants. The Partnership's
management believes that general economic circumstances and trends
and new properties in the vicinity of each of the Partnership's
properties will also be competitive factors.
Inflation
The effects of inflation on the Partnership's operations or
investments are not quantifiable. Revenues from property
operations fluctuate proportionately with increases and decreases
in housing costs. Fluctuations in the rate of inflation also
affect the sales values of properties and, correspondingly, the
ultimate gains to be realized by the Partnership from property
sales.
<PAGE>
Item 2. Properties.
The following table sets forth the investment portfolio of the
Partnership at December 31, 1995:
Average
Properties at Occupancy(*)
Property Description Initial Cost Date Acquired Percentage
1995 1994
The Colony
Apartments 140 units $5,940,707 Oct. 16, 1989 94% 94%
Burlington, NC
Cascade
Apartments 86 units $2,584,253 Dec. 7, 1989 94% 95%
Topeka, KS
Hidden Valley
Exchange 27,200 Sq.Ft. $2,013,709 Sep. 30, 1986 76% 74%
Shopping Ctr.
Independence, MO
Foothills Village
Shopping Ctr. 66,953 Sq.Ft. $4,746,556 Nov. 13, 1986 94% 95%
Las Vegas, NV
The Market
Shopping Ctr. 12,782 Sq.Ft. $1,414,510 Nov. 18, 1986 100% 98%
Overland Park, KS
(*) Based upon vacancy amount (in dollars) as a
percent of gross possible rents.
Item 3. Legal Proceedings.
None.
Item 4. Submission of Matters to a Vote of Security Holders.
None.
PART II
Item 5. Market for Registrant's Common Equity and Related Security Holder
Matters.
(A) There is no established public trading market for the Units
of the Partnership.
(B) There have been no distributions the last three years.
(C) As of December 31, 1995, the Partnership had admitted 1,297
Limited Partners who purchased 24,869.5 units.
<PAGE>
Item 6. Selected Financial Data.
For The Years Ended December 31,
OPERATING DATA 1995 1994 1993 1992 1991
(In Thousands)
Rents $ 2,235 $ 2,116 $ 1,857 $ 1,939 $ 1,753
Maintenance
Escalations
and Other Income 91 91 110 128 183
Property Operating
and Administrative Exp 1,023 910 821 887 1,016
Interest
Expense 1,175 1,208 1,140 1,145 1,149
Depreciation/
Amortization 613 590 591 603 762
Partnership
Loss $ (485) $ (501) $ (585) $ (568) $ (991)
PER LIMITED PARTNERSHIP UNIT
Partnership Loss (1)$ (19.32) $ (19.94) $ (23.27) $(22.60) $(39.46)
Cash Distributions(2)$ --- $ --- $ --- $ --- $ ---
BALANCE SHEET DATA 1995 1994 1993 1992 1991
(In Thousands)
Total Assets 12,398 12,973 13,285 13,768 14,329
Mortgage Debt 11,826 11,576 11,630 11,511 11,389
(1) Partnership loss per limited partnership unit is
computed by dividing loss allocated to the Limited
Partners by the weighted average number of limited
partnership units outstanding. Per unit
information has been computed based on 24,869.5
weighted average limited partnership units
outstanding.
(2) Cash distributions per limited partnership unit
have been computed by dividing distributions paid
to the Limited Partners by 24,869.5 weighted
average limited partnership units
outstanding.
<PAGE>
Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
Results of Operations
Revenue for the partnership achieved an all time high in 1995 of
$2,326,000 as compared to $2,207,000 in 1994. This represented
an increase of $119,000 or 5.4%.
The increased residential rental rates resulted in a high resident
turnover and higher operating costs. The operating costs increased
$113,000 (12.4%) from $910,000 to $1,023,000. These increases were
primarily in the areas of repairs, payroll, and utilities. Interest
expense was down from 1994 by $33,000 (2.7%). Depreciation for 1995
increased $23,000 (3.8%) over 1994 depreciation of $590,000. The net
result to the Partnership was a reduction of the loss by $16,000
(3.1%) from 1994 levels.
Revenue in 1994 was $2,207,000 as compared to $1,968,000 in 1993, an
increase of 12.2%. This higher revenue was achieved through average
higher occupancy levels at both residential and commercial properties
and through increased rental rates on the residential properties.
In 1994, the lower occupancy levels at Hidden Valley were more than
offset by higher occupancy levels at Foothills and the Market. In
November, 1993, Centel Cellular Company of Nevada Limited Partnership
("Centel") signed a 20 year lease of a 30 foot by 40 foot pad site at
the rear of Foothills Shopping Center for a cellular phone tower. On
March 9, 1994, Centel prepaid the first ten (10) years rent in the
amount of $60,000. This rent is being amortized at $500 per month
over the first ten years of the lease.
The increased residential rental rates in 1994 resulted in a high
resident turnover and higher operating costs.
The operating costs increased $88,000 (10.8%) from $822,000 to
$910,000. These increases were primarily in the areas of repairs,
payroll, and utilities. Interest expense was up from 1993 by $68,000
(6.0%) due primarily to prime interest rate increases during 1994.
The net result to the Partnership was a reduction of the loss by
$84,000 (14.3%) from 1993 levels.
In 1993, net revenues decreased $99,000 (4.8%) from 1992 levels. The
revenues on the residential properties increased $7,000 due to higher
occupancy and decreased rental promotions. However, even though
average occupancy increased on the commercial retail centers,
revenues decreased by $106,000 due to rental promotions and
concessions. Operating and administrative expenses continued to
decline, continuing a trend that began
<PAGE>
Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations--Cont'd.
during 1991. In 1993 Operating and Administrative expenses declined
$65,000 (7.3%). This is the result of lower payroll costs, reduced
repair and utility expense due to higher occupancy, and reduced real
estate tax expense the result of paying delinquent real estate taxes
in the first quarter of 1993. Interest for the year decreased by
$6,000, due to debt restructuring.
The Partnership anticipates that the operating results will continue
to improve during 1996. The general partner anticipates that the Fund
will continue to enjoy high occupancy levels, increased rental rates,
decreased rent promotions and will begin a closer monitoring of
operating expenses.
Liquidity and Sources of Capital
During 1995, the Partnership's primary source of working capital was
from borrowing/refinancing of long term debt of $196,000 net of
repayments. Operations provided $39,000 of funds. Property
improvements utilized $183,000 of these funds, as did $73,000 in
restricted deposits for capital improvements. The net effect was a
decrease in cash of $21,000 at year end. The trend of higher
occupancy levels and higher rental rents that began several years ago
should continue through 1996 and improve cash flow from operations.
During 1995 Sampler Shoppes, Inc. (the primary tenant at Foothills)
paid the entire amount of delinquent rent thereby reducing the Rent
and Other receivable balance at December 31, 1994 by $231,000. With
these funds the partnership paid delinquent real estate taxes of
$138,000 at Foothills Shopping Center, reduced accrued interest on
real estate loans and funded additional closing costs on the new
Colony Apartments' loan.
During 1994, the Partnership's primary source of working capital was
from operations, which provided $413,000. These funds were used to
fund capital improvements of $142,000 to investment properties, and
$186,000 was used for financing activities. The net effect was an
increase in cash of $85,000 at year end.
During 1993, the Partnership's primary source of working capital was
from borrowings of $193,000 from lending institutions and $129,000
from related parties.
These funds were used to fund capital improvements to investment
properties, reduce accounts payable and accrued expenses as well as
fund negative cash flow from operations. Cash used in operations
during 1993 was $205,000.
<PAGE>
Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations--Cont'd.
Liquidity and Sources of Capital--Cont'd.
The General Partners' believe that sufficient working capital will
be available to fund known, on-going operating and capital
expenditure requirements for the Partnership during 1996. This is
based upon the improved operating trend that began in 1991. The
Partnership expects continued increased rental income from the
residential properties due to ongoing scheduled rental increases.
It is also anticipated that occupancy will remain stable on the
commercial properties. Operating expenses in 1996 will be up
slightly from 1995 due primarily to increased operating costs
incurred in conjunction with scheduled rent increases. Interest
expense on variable rate notes is expected to increase slightly
from 1995 levels.
The Partnership is actively seeking a mortgage lender for the Cascade
Apartments mortgage, which matures in March, 1996. This mortgage was
extended by the lender from March, 1995 at the same rate of interest.
As of the date of this report, the Partnership continues to make
principal and interest payments of $18,900.00 and will continue on
a month-to-month basis with the lender until a refinancing can be
completed which is anticipated to be in the third or fourth quarter
of 1996.
The General Partners' intend to evaluate the property portfolio to
determine if it is prudent to offer one or more properties for sale.
Any unleveraged portion of the net sales proceeds will generate
additional working capital. At this time, the North Carolina
property is currently being offered for sale.
The Foothills Village Shopping Center's first and second mortgages
mature on November 11, 1996 and December 10, 1996, respectively.
Additionally, the first mortgage on The Hidden Valley Exchange
Shopping Center matures on December 10, 1996. The Partnership
is aggressively seeking replacement financing for both properties
and has entered negotiations with the current mortgage holders to
extend the existing financing. Placement of new mortgages or
extensions of existing debt could have a significant impact on the
Partnership's cash flow.
The General Partners have determined it prudent to discontinue cash
distributions, until such time that adequate working capital
reserves are available. No distributions have been made since 1990.
<PAGE>
Item 8. Financial Statements and Supplementary Data
SECURED INVESTMENT RESOURCES FUND, L.P.
Index Page
Independent Auditors' Report 10
Financial Statements:
Consolidated Balance Sheets - December 31,
1995 and 1994 11-12
Consolidated Statements of Operations -
Years Ended December 31, 1995, 1994
and 1993 13
Consolidated Statements of Partnership Capital -
Years Ended December 31, 1995, 1994
and 1993 14
Consolidated Statements of Cash Flows -
Years Ended December 31, 1995,
1994 and 1993 15-16
Notes to Consolidated Financial Statements 17-23
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Partners
Secured Investment Resources Fund, L.P.
Mission, KS
We have audited the accompanying consolidated balance sheets of Secured
Investment Resources Fund, L.P. and affiliated companies as of December 31,
1995 and 1994, and the related statements of operations, partnership capital
and cash flows for each of the three years in the period ended December 31,
1995. We have also audited the schedules listed in the accompanying index.
These financial statements and schedules are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on
these financial statements and schedules based upon our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
schedules are free of material misstatement. An audit includes examining, on
a test basis, evidence supporting the amounts and disclosures in the financial
statements and schedules. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall presentation of the financial statements and schedules.
We believe that our audits provide a reasonable basis for our opinion.
As discussed in Note C, the Partnership has mortgage loans that mature
during the next fiscal year or that have become due. The Partnership is in
current negotiations with the mortgage holders to extend or refinance these
obligations.
In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of Secured
Investment Resources Fund, L.P. and affiliated companies at December 31, 1995
and 1994, and the results of their operations and their cash flows for each
of the three years in the period ended December 31, 1995 in conformity with
generally accepted accounting principles.
Also in our opinion, the schedules present fairly, in all material
respects, the information set forth therein.
s/ BDO Seidman, LLP
St. Louis, Missouri
April 10, 1996
<PAGE>
SECURED INVESTMENT RESOURCES FUND, L.P.
CONSOLIDATED BALANCE SHEETS
December 31,
1995 1994
ASSETS
INVESTMENT PROPERTIES (Note B)
Land and buildings $16,486,456 $16,377,255
Furniture, fixtures and equipment 1,552,076 1,478,563
18,038,532 17,855,818
Less accumulated depreciation and
allowance for losses 6,078,281 5,493,355
11,960,251 12,362,463
Cash 161,414 182,262
Rents and other receivables, less
allowance of $57,200 in 1995 and
$141,476 in 1994 (Notes F and I) 18,351 244,318
Prepaid expenses 8,257 20,932
Debt issuance costs, net of accumulated
amortization of $41,550 in 1995 and
$13,543 in 1994 149,231 133,371
Commercial commissions, deposits and
other 27,591 29,859
Restricted deposits 73,299 ---
438,143 610,742
$12,398,394 $12,973,205
<PAGE>
SECURED INVESTMENT RESOURCES FUND, L.P.
CONSOLIDATED BALANCE SHEETS--CONT'D.
December 31,
1995 1994
LIABILITIES AND PARTNERSHIP CAPITAL
Mortgage debt (Note C) $11,826,431 $11,575,692
Accrued interest 94,146 282,889
Accounts payable and accrued
expenses (Note G) 240,756 371,896
Due to related parties (Note D) 50,922 62,100
Unearned revenue 51,483 60,859
Tenant security deposits 79,383 79,217
TOTAL LIABILITIES 12,343,121 12,432,653
PARTNERSHIP CAPITAL
General Partners
Capital contribution 1,000 1,000
Partnership deficit (55,545) (50,692)
(54,545) (49,692)
Limited Partners
Capital contributions 5,608,838 5,608,838
Partnership deficit (5,499,020) (5,018,594)
109,818 590,244
TOTAL PARTNERSHIP CAPITAL 55,273 540,552
$12,398,394 $12,973,205
See notes to consolidated financial statements.
<PAGE>
SECURED INVESTMENT RESOURCES FUND, L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
Years Ended December 31,
1995 1994 1993
REVENUES
Rents $ 2,234,875 $ 2,116,070 $ 1,857,266
Interest 6,721 1,267 198
Maintenance escalations 84,824 90,151 110,247
2,326,420 2,207,488 1,967,711
OPERATING AND ADMINISTRATIVE
EXPENSES
Property operating
expenses 738,543 688,186 605,866
General and administrative
expenses 58,304 44,919 53,614
Professional services (Note D) 104,216 82,181 77,665
Management fees (Note D) 107,915 94,860 84,511
1,008,978 910,146 821,656
NET OPERATING INCOME 1,317,442 1,297,342 1,146,055
NON-OPERATING EXPENSES
Interest 1,175,423 1,207,972 1,139,787
Depreciation and
amortization 627,298 590,270 590,865
1,802,721 1,798,242 1,730,652
PARTNERSHIP LOSS $ (485,279) $ (500,900) $ (584,597)
Allocation of loss:
General Partners $ (4,853) $ (5,009) $ (5,846)
Limited Partners (480,426) (495,891) (578,751)
$ (485,279) $ (500,900) $ (584,597)
Partnership loss per
limited partnership
unit $ (19.32) $ (19.94) $ (23.37)
See notes to consolidated financial statements.
<PAGE>
SECURED INVESTMENT RESOURCES FUND, L.P.
CONSOLIDATED STATEMENTS OF PARTNERSHIP CAPITAL
Years Ended December 31, 1995, 1994 and 1993
General Limited
Partners Partners Total
Balances at January 1, 1993 $ (38,837) $ 1,664,886 $ 1,626,049
Partnership loss (5,846) (578,751) (584,597)
Balances at December 31, 1993 (44,683) 1,086,135 1,041,452
Partnership loss (5,009) (495,891) (500,900)
Balances at December 31, 1994 (49,692) 590,244 540,552
Partnership loss (4,853) (480,426) (485,279)
Balances at December 31, 1995 $ (54,545) $ 109,818 $ 55,273
See notes to consolidated financial statements.
<PAGE>
SECURED INVESTMENT RESOURCES FUND, L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended December 31,
1995 1994 1993
OPERATING ACTIVITIES
Partnership loss $ (485,279) $ (500,900) $ (584,597)
Adjustments to reconcile
partnership loss to net
cash used in operating
activities:
Depreciation and
amortization 627,298 590,270 590,865
Provisions for losses
on rents and other
receivables 36,819 46,068 64,825
Changes in assets and
liabilities:
Rents and other
receivables 189,148 (55,746) (185,141)
Prepaid expenses 12,675 62,035 (9,525)
Commercial commissions,
deposits and other (12,097) 3,933 21,658
Accounts payable
and accrued expenses (131,140) 54,906 (162,600)
Accrued interest (188,743) 149,896 56,323
Unearned revenue (9,376) 58,234 1,612
Tenant security
deposits 166 4,058 1,240
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES 39,471 412,754 (205,340)
INVESTING ACTIVITIES
Improvements to investment
properties (182,714) (142,105) (50,146)
Restricted deposits (73,299) --- ---
NET CASH USED IN
INVESTING ACTIVITIES (256,013) (142,105) (50,146)
<PAGE>
SECURED INVESTMENT RESOURCES FUND, L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS--CONT'D.
Years Ended December 31,
1995 1994 1993
FINANCING ACTIVITIES
Borrowings under
debt arrangements $ 3,850,781 $ --- $ 192,680
Debt issuance costs (43,867) (108,250) (38,663)
Advances (to) from
related parties (11,178) (23,000) 129,736
Principal payments on
debt (3,600,042) (54,574) (73,214)
NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES 195,694 (185,824) 210,539
INCREASE (DECREASE) IN CASH (20,848) 84,825 (44,947)
CASH BEGINNING OF YEAR 182,262 97,437 142,384
CASH END OF YEAR $ 161,414 $ 182,262 $ 97,437
See notes to consolidated financial statements.
<PAGE>
SECURED INVESTMENT RESOURCES FUND, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE A--SIGNIFICANT ACCOUNTING POLICIES
Organization and Business--Secured Investment Resources Fund, L.P. (the
Partnership) is a Kansas limited partnership formed pursuant to the Kansas
Revised Uniform Limited Partnership Act on March 30, 1984. The General
Partners' and Limited Partners' interest in Partnership earnings or loss
initially amounts to 1% and 99%, respectively. The allocation of the 1%
interest between the General Partners is discretionary. At such point in time
cash distributions to the Limited Partners amount to their original invested
capital plus interest at a rate of the greater of 8% or the increase in the
consumer price index per annum, cumulative non-compounded on their adjusted
invested capital, earnings or loss will be allocated 15% to the General
Partners and 85% to the Limited Partners.
Consolidated Limited Partnerships
In order to satisfy current real estate lending requirements that real estate
assets be in single asset partnerships, the Partnership has formed two single
asset partnerships. Cascade Joint Venture L.P., a Kansas limited partnership
was formed on December 28, 1993 and Colony Joint Venture, L.P., a Kansas
limited partnership was formed on September 14, 1994. These partnerships
retained the same partnership structure as Secured Investment Resources Fund,
L.P., with Secured Investment Resources Fund, L.P. being the sole Limited
Partner. The General Partners of Cascade Joint Venture L.P. and Colony Joint
Venture, L.P. are identical to the General Partners of Secured Investment
Resources Fund, L.P. The result of operations of these single asset
partnerships have been consolidated with the Partnership.
Depreciation--Investment property is depreciated on a straight-line basis
over the estimated useful life of the property (30 years for buildings and
5 years for furniture, fixtures and equipment). Improvements are capitalized
and depreciated over their estimated useful lives. Maintenance and repair
expenses and charged to operations as incurred.
Income Taxes--Any tax liabilities or benefits arising from Partnership
operations are recognized individually by the respective partners and,
consequently, no provision will be made by the Partnership for income
taxes or income tax benefits.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--CONT'D.
NOTE A--SIGNIFICANT ACCOUNTING POLICIES--CONT'D.
Partnership Loss Per Limited Partnership Unit--Partnership loss per limited
partnership unit is computed by dividing loss allocated to the Limited
Partners by the weighted average number of limited partnership units
outstanding. Per unit information has been computed based on 24,869.5
weighted average limited partnership units outstanding.
Debt Issuance Costs--Loan costs are capitalized by the Partnership and are
amortized over the term of the related loan.
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 assets and
liabilities and disclosure of contingent assets and liabilities at the date
of the financial statement and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
New Accounting Standards--In March 1995, the FASB issued its Statement of
Financial Accounting Standards No. 121, Accounting for the Impairment of
Long-Lived Assets and For Long-Lived Assets to Be Disposed Of ("SFAS 121").
SFAS 121 requires that long-lived assets and certain intangibles to be held
and used by an entity be reviewed for impairment when events or changes in
circumstances indicate that the carrying amount may not be recoverable. In
addition, SFAS 121 requires long-lived assets and certain intangibles to be
disposed of to be reported at the lower of carrying amount or fair value less
costs to sell. SFAS 121 is effective for fiscal years beginning after
December 15, 1995. Management does not expect the application of this
pronouncement to have a material effect on the financial statements of the
Partnership.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--CONT'D.
NOTE B--INVESTMENT PROPERTIES
Investment properties consist of the following:
December 31,
1995 1994
Cost (including capital
improvements subsequent
to acquisition):
The Colony Apartments $ 6,223,377 $ 6,084,556
Cascade Apartments 2,667,321 2,632,256
Hidden Valley Exchange
Shopping Center 2,118,826 2,117,881
Foothills Village
Shopping Center 5,595,794 5,587,911
The Market Shopping Center 1,430,542 1,430,542
Partnership 2,672 2,672
18,038,532 17,855,818
Less
Accumulated depreciation 5,673,281 5,088,355
Allowance for losses 405,000 405,000
$ 11,960,251 $ 12,362,463
During 1990, the Partnership reduced the carrying value of its commercial
property portfolio to reflect real estate market conditions. This change is
reflected in Allowance for Losses on Investment Properties. Depreciation
expense was $584,296, $576,209 and $574,234 for the years ended December 31,
1995, 1994, and 1993.
The Partnership has mortgage debt maturing in 1996 (Note C). The non-recourse
debt maturing on Hidden Valley Exchange Shopping Center, Foothills Village
Shopping Center, The Market Shopping Center, and The Cascade Apartments totals
$8,127,171. In addition, Hidden Valley Exchange Shopping Center and The Market
Shopping Center have delinquent real estate taxes of $115,293. As of December
31, 1995, these properties have a combined net book value of $7,840,629.
<PAGE>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--CONT'D.
NOTE C--MORTGAGE DEBT
Non-recourse mortgage debt consists of the following:
December 31,
1995 1994
Collateralized by Investment Property
First Mortgages
Hidden Valley Exchange S.C. $ 811,973 $ 814,035
The Market S.C/Hidden Valley 1,825,697 1,702,916
Foothills Village S.C. 2,621,779 2,621,714
The Colony Apts. 3,699,260 3,500,000
Cascade Apts. 1,914,656 1,950,441
Second Mortgage
Foothills Village S.C. 953,066 986,586
$11,826,431 $11,575,692
Hidden Valley Exchange Shopping Center (Hidden Valley) and The
Market Shopping Center (The Market)
In February 1993, a $750,000 note, collateralized by Hidden Valley and
assignment of its rents and leases, was increased to $820,000 and converted
to a mortgage payable. This loan matures December 10, 1996. The interest
rate is prime plus 1.5%. The prime rate at December 31, 1995 was 8.5%. Also
in February 1993, a $1,650,000 note, collateralized by Hidden Valley and
The Market, was increased to $1,800,000 and converted to a mortgage payable.
In August of 1995 an advance on the $1,800,000 note brought the balance
to $1,825,696. This loan is payable at 8.5% interest with a thirty year
amortization rate through the maturity date of August 1, 2000.
Foothills Village Shopping Center (Foothills)
A purchase money note in the amount of $2,621,714 is collateralized by
Foothills. Interest only payments are due monthly at the rate of 10%
through the maturity date of November 11, 1996.
On December 24, 1990, the Partnership secured a line of credit note,
collateralized by the second mortgage on Foothills, in the amount of
$1,000,000. On February 26, 1993, this note was converted to a mortgage
payable at 8% interest with a twenty-five year amortization rate through
the maturity date of December 10, 1996.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--CONT'D.
NOTE C--MORTGAGE DEBT--CONT'D.
The Colony Apartments (The Colony)
On January 17, 1995, the purchase money note in the amount of $3,500,000 was
retired through the issuance of a new mortgage. This new mortgage in the
original amount of $3,728,000 is due in February, 2005. The interest rate is
fixed for the term of the loan at 10.09%, with monthly principal and interest
payments of $34,113.
Cascade Apartments (Cascade)
A 9.875% note is collateralized by Cascade. Both principal and interest
payments are made in an amount necessary to amortize the $2,100,000 loan over
25 years with the unpaid principal due on the maturity date of March 1, 1995.
The lender has given a verbal commitment to extend the mortgage on a
month-to-month basis. The Partnership will make monthly principal, interest
and escrow payments until permanent financing is found.
Cash paid for interest totaled $1,364,166, $1,058,076 and $1,179,810 during
1995, 1994, and 1993, respectively.
Maturities of mortgage debt are as follows:
1996 $ 6,353,268
1997 57,026
1998 62,790
1999 69,141
2000 1,818,476
Thereafter 3,465,730
TOTAL $11,826,431
NOTE D--RELATED PARTY TRANSACTIONS
Through December 31, 1994, property management services were provided by The
Hoyt Group, a Kansas Corporation in which the individual General Partner had a
majority interest. As of January 1, 1995, SPECS, Inc., a Kansas Corporation
in which the individual General Partner has a minority interest, receives
property management fees for providing property management services. SPECS,
Inc. also performs various professional services for the Partnership,
primarily tax accounting, audit preparation, SEC 10Q and 10K preparation, and
investor services. Amounts paid by the Partnership to The Hoyt Group and
SPECS, Inc. are as follows:
Years Ended December 31,
1995 1994 1993
Property management fees $107,915 $ 94,860 $ 84,511
Professional services 46,000 -0- -0-
$153,915 $ 94,860 $ 84,511
These professional services were provided by an unrelated entity previous to
January 1 , 1995.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--CONT'D.
NOTE D--RELATED PARTY TRANSACTIONS--CONT'D.
The General Partners are entitled to receive a Partnership Management Fee
equal to 5% of Cash Flow From Operations (as defined) for managing the normal
operations of the Partnership except for Hidden Valley and The Market whose
Management Fee is equal to 3% of Cash Flow From Operations. There was no
management fee due for the years ending December 31, 1995, 1994 and 1993.
Amounts due from (to) related parties consist of the following:
Years Ended December 31,
1995 1994
SIR Inc. $ 23,721 $ 23,000
Secured Investment Resources
Fund, L.P. III (74,643) (85,100)
Due From (To) Related Parties $ (50,922) $ (62,100)
Advances to SIR Inc. are scheduled to be reimbursed in 1996.
In May, 1995, the Partnership began repaying the monies owed to Secured
Investment Resources Fund, L.P. III at the rate of $3,000 per month which
includes 9% interest.
NOTE E--CASH DISTRIBUTIONS
No distributions have been made since January 1990. Future distributions will
be made only from excess cash flow not needed for working capital reserves.
NOTE F--PARTNERSHIP LIQUIDITY
The Partnership operates within the real estate industry and is subject to its
economic forces, which contributes additional liquidity risk to the
Partnership's investment portfolio. These risks include, but are not limited
to, changes in general or local economic conditions, changes in interest rates
and the availability of permanent mortgage financing which may render the
acquisition, sale or refinancing of a property difficult or unattractive,
changes in real estate and zoning laws, increases in real estate taxes,
federal or local economic or rent controls, floods, earthquakes and other acts
of God and other factors beyond the control of the Partnership's management.
The illiquidity of real estate investments generally may impair the ability of
the Partnership to respond promptly to changing economic conditions.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--CONT'D.
NOTE F--PARTNERSHIP LIQUIDITY--CONT'D.
The General Partners believe that sufficient working capital will be available
to fund known, ongoing operating and capital expenditure requirements of the
Partnership during 1996. The primary sources of working capital during 1996
are expected to be cash flow from operations and proceeds from mortgage
refinancing.
The Partnership is actively seeking a mortgage lender for the Cascade
Apartments mortgage. This mortgage presently has an interest rate of 9.875%.
The projected new loan proceeds would include refinancing costs as well as
reserves for capital improvements as needed on the mortgaged properties.
Certain positive factors are expected to affect 1996 operations. Occupancy
levels on the commercial properties have improved and stabilized requiring
less tenant improvement costs and leasing commission expense. The two
residential properties are expected to maintain, if not increase, their levels
of occupancy and income during 1996. Management believes revenue will
increase from 1995 levels because of this leasing activity. It is anticipated
that property operating expenses in 1996 will increase only slightly from
those amounts which were incurred during 1995.
Interest expense on the variable rate notes payable is expected to increase
slightly over those levels realized during 1995. The availability of the
liquidity sources and accomplishment of these objectives are partially
predicated on the real estate economic conditions discussed above, which are
beyond the control of the Partnership and will influence the achieved results.
NOTE G--ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Accounts payable and accrued expenses consist of the following:
December 31,
1995 1994
Vendor accounts payable $ 14,032 $ 34,196
Property taxes 178,416 299,593
Professional fees 28,176 23,622
Utilities 13,013 8,564
Accrued Payroll and taxes 7,119 5,921
$ 240,756 $ 371,896
As of December 31, 1995, delinquent real estate taxes consist of 1995, 1994
and 1993 taxes for Hidden Valley and The Market. Real estate taxes on all
other Partnership properties are current as of December 31, 1995.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--CONT'D.
NOTE H--INCOME TAX
The Partners' capital accounts differ for financial reporting purposes and
federal income tax purposes. The primary difference results from depreciation
and amortization and provision for doubtful accounts. The effect of these
items is summarized as follows:
December 31,
1995 1994
Financial reporting basis:
Total assets $ 12,398,394 $ 12,973,205
Total liabilities (12,343,121) (12,432,653)
Total Partners' capital $ 55,273 $ 540,552
Tax basis:
Total assets $ 11,537,581 $ 12,273,157
Total liabilities (12,291,638) (12,432,652)
Total Partners' capital $ (754,057) $ (159,495)
Years Ended December 31,
1995 1994 1993
Partnership loss-financial
reporting purposes $ (485,279) $ (500,900) $ (584,597)
Book versus tax differences
due to:
Depreciation and
amortization (57,364) (54,856) (73,144)
Provision for doubtful
accounts (49,902) (8,976) 23,083
Other (2,017) (28,636) 83,767
(109,283) (92,468) 33,706
Partnership loss-federal
income tax purposes $ (594,562) $ (593,368) $ (550,891)
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--CONT'D.
NOTE I--LEASES
Rental income on investment properties is reported when earned. The
Partnership leases its commercial properties under non-cancelable operating
lease agreements. The Partnership's residential properties are leased under
short-term lease agreements. Future minimum rents to be received as of
December 31, 1995 are as follows:
1996 $ 556,842
1997 287,668
1998 105,107
1999 86,588
2000 54,980
Thereafter 163,215
Total $ 1,254,400
NOTE J--DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS
The following methods and assumptions were used to estimate the fair value of
each class of financial instrument for which it is practicable to estimate
that value:
Long-Term Debt. The fair value of the Partnership's long-term debt is
estimated based on the quoted market prices for the same or similar issues
or on the current rates offered to the Partnership for debt of the same
remaining maturities.
The estimated fair values of the Partnership's financial instruments are as
follows:
Carrying Fair
1995 Amount Value
Long-term debt $11,826,400 $11,916,000
<PAGE>
Item 9. Changes in and Disagreements with Registrant's Certifying
Accountants on Accounting and Financial Disclosure.
None
PART III
Item 10. Directors and Executive Officers of the Registrant.
The General Partners of the Partnership are James R.
Hoyt and Secured Investment Resources, Inc.
Secured Investment Resources, Inc. (the "Corporate
General Partner") was incorporated under the laws of
the State of Kansas on December , 1983 for the purpose
of acting as General Partner and the Acquisition Agent
of the Partnership.
James R. Hoyt is the sole director and officer of the
Corporate General Partner.
James R. Hoyt, the Individual General Partner, age 58,
holds a Bachelor's Degree in Business Administration
and is a licensed real estate broker in two states.
Mr. Hoyt has been actively involved for more than the
past twenty years in various real estate endeavors
including development, syndication, property management
and brokerage.
Mr. Hoyt is the Individual General Partner and sponsor
of Secured Investment Resources Fund, L.P. II, (S.I.R.
II) and Secured Investment Resources Fund, L.P. III,
(S.I.R. III). Since 1983, Mr. Hoyt has also been
involved as the Individual General Partner in ten
specified real estate private placement offerings. As
of December 31, 1995, these partnerships, including
Secured Investment Resources Fund, L.P., have raised a
total of $60,709,750.
<PAGE>
Item 11. Management Compensation
During 1995, The Partnership paid $107,915 in fees to
related parties for property management services.
Item 12. Security Ownership of Certain Beneficial Owners and
Management.
(a) Security ownership of certain beneficial owners.
No individual or group as defined by Section
13(d)(3) of the Securities Exchange Act of 1934,
known to the registrant is the beneficial owner of
more than 5 percent of the registrant's securities.
(b) Security ownership of Management.
The General Partners own less than 1%.
(c) Change in Control.
None.
Item 13. Certain Relationships and Related Transactions.
See Notes to Consolidated Financial Statements, Note D,
appearing in Item 8.
<PAGE>
PART IV
Item 14. Exhibits, Financial Statement Schedules and Reports
on Form 8-K.
(a)(1) The following Financial Statements of Secured
Investment Resources Fund, L.P. are included in
Item 8:
Page
(i) Independent Auditors' Report 10
(ii) Consolidated Balance Sheets -
December 31, 1995 and 1994 11-12
(iii) Consolidated Statements of Operations -
Years Ended December 31, 1995,
1994 and 1993 13
(iv) Consolidated Statements of Partnership
Capital - Years ended December 31,
1995, 1994 and 1993 14
(v) Consolidated Statements of Cash Flows -
Years Ended December 31, 1995,
1994 and 1993 15-16
(vi) Notes to Consolidated Financial
Statements 17-23
(a)(2) The following Financial Statement Schedules are
filed as part of this report:
(i) Schedule II - Allowance for
Doubtful Accounts 32
(ii) Schedule III - Real Estate and
Accumulated Depreciation 33-34
All schedules other than those indicated in the index have
been omitted as the required information is presented in the
financial statements, related notes or is inapplicable.
<PAGE>
(a)(3) The following Exhibits are Incorporated by Reference and are
an integral part of this Form 10-K.
Exhibit Number Description
(4) (a) Restated Certificate and Agreement
of Limited Partnership. (iii)
(b) Second Amendment to Restated
Certificate and Agreement of
Limited Partnership. (i)
(10) (a) Property Management Agreement, as
amended. (i)
(b) Escrow Agreement. (i)
(c) Administrative Services Agreement. (i)
(d) Amendment No. 1 to Escrow
Agreement. (i)
(e) Agreement of Sale for The Colony
Apartments. (v)
(f) Purchase Money Short-Term Note for
The Colony Apartments. (v)
(g) Purchase Money Deed of Trust for
The Colony Apartments. (v)
(h) Purchase Money Wraparound Deed of
Trust for The Colony Apartments. (v)
(i) Purchase Money Wraparound Deed of
Trust for The Colony Apartments. (v)
(j) Real Estate Contract of Sale for
The Cascade Apartments. (v)
(k) Lease Agreement for Certain
Portions of The Cascade Apartments. (v)
(l) Real Estate Contract of Sale for
the Hidden Valley Exchange Shopping
Center. (vi)
(m) Real Estate Contract of Sale for
the Foothills Village Shopping
Center. (vii)
<PAGE>
Exhibit Number Description
(n) Real Estate Contract of Sale for
the Market Shopping Center. (viii)
(o) Assignment of Real Estate Contract
(The Market Shopping Center). (viii)
(16) (a) Letter Regarding Change in
Certified Accountant. (ix), (x)
(28) (a) Guarantee of James R. Hoyt. (ii)
(b) Guarantee of General Partners. (ii)
(c) North Carolina Special Warranty
Deed for The Colony Apartments. (v)
(d) General Warranty Deed for The
Cascade Apartments. (v)
(i) Previously filed on September 13, 1985 as an Exhibit to
Post-Effective Amendment #2 to the Registration Statement
on Form S-11 (file no. 2-90975) such Exhibit and Registration
Statement incorporated herein by reference.
(ii) Previously filed on September 19, 1984 as an Exhibit to
Amendment #2 to the Registration Statement of Form S-11 such
Exhibit and Registration Statement incorporated herein by
reference.
(iii) Previously included in the Prospectus filed as part of
Amendment #2 to Registration Statement and incorporated herein
by reference.
(iv) Previously filed as an exhibit to a current report on Form 8-K
dated February 1, 1985 which exhibit and Form are incorporated
herein by reference.
(v) Previously filed on January 6, 1986 as an exhibit to
Post-Effective Amendment #3 to the Registration Statements
on Form S-11, such Exhibit and Registration Statement
incorporated herein by reference.
(vi) Previously filed as an exhibit to a report on Form 8-K dated
September 30, 1986, which exhibit and Form are incorporated
herein by reference.
(vii) Previously filed as an Exhibit to a report on Form 8-K dated
November 10, 1986, which Exhibit and Form are incorporated
herein by reference.
<PAGE>
(viii) Previously filed as an Exhibit to a report on Form 8-K dated
November 20, 1986, which Exhibit and Form are incorporated
herein by reference.
(ix) Previously filed as an Exhibit to a report on Form 8-K dated
December 5, 1986, which Exhibit and Form are incorporated herein
by reference.
(x) Previously filed as an Exhibit to a current report on Form 8-K
dated December 4, 1989, which Exhibit and Form are incorporated
herein by reference.
(b) Report of Form 8-K filed during the fourth quarter.
None.
(The remainder of this page intentionally left blank.)
<PAGE>
Secured Investment Resources Fund L.P.
Schedule II - Allowance for Doubtful Accounts
December 31, 1995
Balance at Additions Bad Debt Write Balance at
Beginning of Charged to Offs Deducted End
Period Operations From Allowance of Period
For Years Ended December 31,
1993 $127,369 $64,825 $41,742 $150,452
1994 150,452 46,068 55,044 141,476
1995 141,476 36,819 121,095 57,200
<PAGE>
<TABLE>
Secured Investment Resources Fund, L.P.
Schedule III - Real Estate & Accumulated Depreciation
December 31, 1995
<CAPTION>
Initial Cost to Partnership (A) Subsequent to Acquisition
Buildings & Furniture Reduction
Encumbrances Land Improvements Equipment Improvements of Basis (B)
<S> <C> <C> <C> <C> <C> <C>
Other Equipment $2,672
Garden Apartments:
Colony Apts $3,699,260 $ 578,791 $5,035,482 $259,367 $349,737
Burlington, NC
Cascade Apts 1,914,656 389,924 1,903,915 254,347 119,135
Topeka, KS
Strip Shopping Centers
Hidden Valley 811,973 293,715 1,775,991 140,338 $( 91,218)
Independence, MO
Foothill 3,574,845 1,069,233 3,661,619 864,942
Las Vegas, NV
The Market Square 1,825,697 265,250 1,196,129 16,032 ( 46,869)
Overland Park,KS
$11,826,431 $2,596,913 $13,573,136 $513,714 $1,492,856 $(138,087)
</TABLE>
<PAGE>
<TABLE>
Gross Amount at Which
Carried at Close of Period
<CAPTION>
Buildings & Furniture Accumulated Date Depreciation
Land Improvements Equipment Total Depreciation Acquired Life
<S> <C> <C> <C> <C> <C> <C>
Other Equipment 2,672 2,672 2,604
Garden Apartments:
Colony Apartments 578,791 5,222,557 422,029 6,223,377 2,103,823 16-Oct-85 30 Yrs (1)
Burlington, NC 5 Yrs (2)
Cascade Apartments 390,509 2,052,014 224,797 2,667,320 953,262 19-Dec-85 30 Yrs (1)
Topeka, KS 5 Yrs (2)
Strip Shopping Centers
Hidden Valley 277,809 1,747,242 93,776 2,118,827 590,294 30-Sep-85 30 Yrs (1)
Independence, MO 5 Yrs (2)
Foothills 1,069,233 3,721,335 805,226 5,595,794 1,666,517 13-Nov-85 30 Yrs (1)
Las Vegas, NV 5 Yrs (2)
Market Square 256,345 1,170,621 3,576 1,430,542 761,781 18-Nov-85 30 Yrs (1)
Overland Park, KS 5 Yrs (2)
$2,572,687 $13,913,769 $1,552,076 $18,038,532 $6,078,281
(1) Estimated useful life of buildings.
(2) Estimated useful life of furniture and fixtures.
(3) Includes Allowance for Losses of $405,000.
NOTES:
(A) The initial cost to the Partnership represents the original purchase price of the properties, including $181,643 and
$7,943 of
improvements incurred in 1986 and 1985, respectively, which were contemplated at the time the property was acquired.
(B) Receipts received under the terms of certain guarantee agreements are recorded by the Partnership as a reduction of the
basis
of the property to which the guaranteed income relates.
</TABLE>
<PAGE>
<TABLE>
Secured Investment Resources Fund, L.P.
Schedule III - Real Estate & Accumulated Depreciation -- Continued
December 31, 1995
<CAPTION>
Furniture
Buildings & Fixtures &
Total Land Improvements Equipment
<S> <C> <C> <C> <C>
Reconciliation of Real Estate Owned:
Balance at January 1, 1993 $17,663,567 $2,572,687 $13,716,007 $1,374,873
Additions during year:
Improvements 50,146 27,996 22,150
Balance at December 31, 1993 $17,713,713 $2,572,687 $13,744,003 $1,397,023
Additions during year:
Improvements 142,105 60,565 81,540
Balance at December 31, 1994 17,855,818 2,572,687 13,804,568 1,478,563
Additions during year:
Improvements 182,714 109,201 73,513
Balance at December 31, 1995 $18,038,532 $2,572,687 $13,913,769 $1,552,076
(D) Reconciliation of Accumulated Depreciation:
Balance at January 1, 1993 4,342,911 0 $3,601,405 $741,506
Additions during year:
Depreciation 574,235 468,076 106,159
Reclassifications 276,564 (276,564)
Balance at December 31, 1993 4,917,146 0 4,346,045 571,101
Additions during year:
Depreciation 576,209 419,540 156,669
Balance at December 31, 1994 $5,493,355 $ 0 $4,765,585 $727,770
Additions during year:
Depreciation 584,926 277,906 307,020
Balance at December 31, 1995 $6,078,281 0 $5,043,491 $1,034,790
(E) The total gross amount of real estate at December 31, 1995 includes
$971,323 of acquisition fees paid to affiliates.
</TABLE>
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
SECURED INVESTMENT RESOURCES FUND, L.P.
A Kansas Limited Partnership
(Registrant)
By:
James R. Hoyt
as Individual General Partner
Date:
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
By: Secured
Investment Resources, Inc.,
as Corporate General Partner
By:
James R. Hoyt, President
Date:
Supplemental Information to be Furnished With Reports Filed Pursuant to
Section 15(d) of the Act by Registrants Which Have Not Registered Securities
Pursuant to Section 12 of the Act.
No annual report or proxy material has been sent to security holders.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
SECURED INVESTMENT RESOURCES FUND, L.P.
A Kansas Limited Partnership
(Registrant)
By:
James R. Hoyt
as Individual General Partner
Date:
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
By: Secured
Investment Resources, Inc.,
as Corporate General Partner
By:
James R. Hoyt, President
Date:
Supplemental Information to be Furnished With Reports Filed Pursuant to
Section 15(d) of the Act by Registrants Which Have Not Registered Securities
Pursuant to Section 12 of the Act.
No annual report or proxy material has been sent to security holders.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<CASH> 161,414
<SECURITIES> 0
<RECEIVABLES> 75,551
<ALLOWANCES> 57,200
<INVENTORY> 0
<CURRENT-ASSETS> 438,143
<PP&E> 18,038,532
<DEPRECIATION> 6,078,281
<TOTAL-ASSETS> 12,398,394
<CURRENT-LIABILITIES> 516,690
<BONDS> 11,826,431
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 12,398,394
<SALES> 0
<TOTAL-REVENUES> 2,326,420
<CGS> 0
<TOTAL-COSTS> 1,560,096
<OTHER-EXPENSES> 627,298
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,175,423
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (485,279)
<EPS-PRIMARY> (19.32)
<EPS-DILUTED> 0
</TABLE>
