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, 1996
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 quarterly
"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 9.0% and 8.95% of Partnership
rent revenues for the years ended December 31, 1996 and
1995, respectively.
As of December 31, 1996, the Partnership has made cash
distributions to Limited Partners of $5,343,132 for the
period June 1, 1985 through December 31, 1996. No
distributions have been made since January 1990. Future
distributions will only be made from excess cash flow not
needed for working capital reserves.
As of December 31, 1996, the Partnership had no
employees. Employees of SPECS, Inc. provide services to
the Partnership. The individual General Partner is a
shareholder in SPECS, Inc.
<PAGE>
Item 1. Business--Cont'd.
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.
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<PAGE>
Item 2. Properties.
The following table sets forth the investment portfolio of the
Partnership at December 31, 1996:
Average
Properties at Occupancy(*)
Property Description Initial Cost Date Acquired Percentage
1996 1995
The Colony
Apartments 140 units $5,940,707 Oct. 16, 1989 90% 94%
Burlington, NC
Cascade
Apartments 86 units $2,584,253 Dec. 7, 1989 94% 94%
Topeka, KS
Hidden Valley
Exchange 27,200 Sq.Ft. $2,013,709 Sep. 30, 1986 76% 76%
Shopping Ctr.
Independence, MO
Foothills Village
Shopping Ctr. 66,953 Sq.Ft. $4,746,556 Nov. 13, 1986 87% 94%
Las Vegas, NV
The Market
Shopping Ctr. 12,782 Sq.Ft. $1,414,510 Nov. 18, 1986 74% 100%
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.
<PAGE>
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, 1996, the Partnership had admitted 1,297
Limited Partners who purchased 24,869.5 units.
Item 6. Selected Financial Data.
For The Years Ended December 31,
OPERATING DATA 1996 1995 1994 1993 1992
(In Thousands)
Rents $ 2,225 $ 2,235 $ 2,116 $ 1,857 $ 1,939
Maintenance
Escalations
and Other Income 74 91 91 110 128
Property Operating
and Administrative Exp 997 1,009 910 821 887
Interest
Expense 1,202 1,175 1,208 1,140 1,145
Depreciation/
Amortization 624 627 590 591 603
Partnership
Loss $ (524) $ (485) $ (501) $ (585) $ (568)
PER LIMITED PARTNERSHIP UNIT
Partnership Loss (1)$ (20.88) $ (19.32) $ (19.94) $ (23.27) $ (22.60)
Cash Distributions $ --- $ --- $ --- $ --- $ ---
BALANCE SHEET DATA 1996 1995 1994 1993 1992
(In Thousands)
Total Assets 11,962 12,398 12,973 13,285 13,768
Mortgage Debt 11,952 11,826 11,576 11,630 11,511
(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.
<PAGE>
Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
Results of Operations
Revenue for the partnership decreased in 1996 to
$2,299,000 as compared to $2,326,000 in 1995. This
represented a decrease of $27,000 or 1.2%.
The operating costs stabilized in 1996 over 1995 with a
slight decrease of $12,000 (1.2%) from $1,009,000 to
$997,000. Interest expense was up from 1995 by $27,000
(2.3%). Depreciation and amortization for 1996 decreased
slightly by $3,000 (.3%) over 1995 depreciation of
$627,000. The net result to the Partnership was an
increase in the loss of $39,000 (8.0%) over 1995 levels.
In 1996 AT&T Wireless Services signed a 10 year lease on
a pad at the rear of Foothills Shopping Center. In
November of 1996, AT&T paid the ten (10) years rent in
the amount of $60,000. This rent is being amortized at
$500.00 per month over the term of the lease.
Revenue in 1995 was $2,326,000 as compared to $2,207,000
in 1994, an increase of 5.4%. 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.
The increased residential rental rates resulted in a high
resident turnover and higher operating costs. The
operating costs increased $99,000 (10.9%) from $910,000
to $1,009,000. 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 $37,000 (6.3%) 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 to 1993, the lower occupancy levels at Hidden
Valley were more than offset by higher occupancy levels
at Foothills and the Market.
The increased residential rental rates in 1994 resulted
in a high resident turnover and higher operating costs.
The operating costs increased $88,500 (10.8%) from
$822,000 to $910,000. These increases were primarily in
the areas of repairs, payroll, and utilities. Interest
<PAGE>
Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations.--Cont'd.
Results of Operations -- Cont'd.
expense was up from 1993 by $68,200 (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.
The Partnership anticipates that the operating results
will improve during 1997. The general partner anticipates
that the Fund will achieve higher occupancy levels,
increased rental rates, decreased rent promotions and
will begin a closer monitoring of operating expenses.
Liquidity and Sources of Capital
During 1996, the Partnership's primary source of working
capital was from borrowing/refinancing of long term debt
of $118,000 net of repayments. Operations provided
$68,000 of funds. Property improvements utilized
$200,000 of these funds, and $58,000 was provided by
restricted deposits for capital improvements. The net
effect was an increase in cash of $46,000 at year end.
The trend of higher occupancy levels and higher rental
rents that began several years ago should continue
through 1997 and improve cash flow from operations.
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.
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.
The General Partners' believe that sufficient working
capital will be available to fund known, on-going
<PAGE>
Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations.--Cont'd.
Liquidity and Sources of Capital--Cont'd.
operating and capital expenditure requirements for the
Partnership during 1997. The Partnership expects con-
tinued 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 1997
will be up slightly from 1996 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 1996 levels.
On May 28, 1996, the Partnership signed a note,
collateralized by a second mortgage on The Market and
Hidden Valley Exchange, in the amount of $410,000 at 7%
interest. The proceeds of this note were used to pay
delinquent real estate taxes for The Market and Hidden
Valley Exchange as well as accrued interest and related
loan costs.
The Partnership is actively seeking a mortgage lender for
the Cascade Apartments mortgage, which matured in March,
1996. The 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 monthly
principal and interest payments of $18,900 and will
continue on a month-to-month basis with the lender until
a refinancing can be completed which is anticipated to be
in 1997.
The Foothills Village Shopping Center's first mortgage
matured in November, 1996. The Partnership is
aggressively seeking replacement financing and has
entered negotiations with the current mortgage holder to
extend the existing financing.
The Foothills Village Shopping Centers second mortgage
matured on November 11, 1996. The maturity date of this
note was extended to December 1, 2001 with an interest
rate of 8.5%.
The General Partners believe that sufficient working
capital will be available during 1997 to fund known,
ongoing operating and capital requirements of the
Partnership. In 1997, the Partnership anticipates cash
flow from operations will improve because management
intends to 1) improve occupancy on the commercial
properties; 2) achieve rental rate increase; 3) decrease
the amount of promotional rent discounts offered on the
residential properties; and 4) continue to maintain
stringent controls over expenses.
<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 intend to evaluate the property
portfolio to determine if it is prudent to offer one or
more properties for sale or possibly restructure the
related financing packages. Any unleveraged portion of
the net sales proceeds or favorable refinancing terms
will generate additional working capital.
The General Partners have determined it prudent to
discontinue cash distributions until such time that
adequate working capital reserves are available.
All statements contained herein that are not historical
facts including the Partnership's current business
strategy, the Partnership's projected sources and uses of
cash, and the Partnership's plans for future operations,
are based upon current expectations. These statements
are forward-looking in nature and involve a number of
risks and uncertainties. Actual results may differ
materially. Among the factors that could cause actual
results to differ materially are the following: the
availability of sufficient capital to finance the
Partnership's business plans on terms satisfactory to the
Partnership; competitive factors; changes in regulations
affecting the Partnership's business; general businesses
and economic conditions; and other factors described from
time to time in the Partnership's reports filed with the
Securities and Exchange Commission. The Partnership
cautions readers not to place undue reliance on any such
forward-looking statements, which statements are made
pursuant to the Private Litigation Reform Act of 1995
and, as such, speak only as of the date made.
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<PAGE>
Item 8. Financial Statements and Supplementary Data.
SECURED INVESTMENT RESOURCES FUND, L.P.
Index
Page
Independent Auditors' Report 11
Financial Statements:
Consolidated Balance Sheets - December 31,
1996 and 1995 12-13
Consolidated Statements of Operations -
Years Ended December 31, 1996, 1995
and 1994 14
Consolidated Statements of Partnership Capital (Deficit)-
Years Ended December 31, 1996, 1995
and 1994 15
Consolidated Statements of Cash Flows -
Years Ended December 31, 1996,
1995 and 1994 16-17
Notes to Consolidated Financial Statements 18-27
<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, 1996 and 1995, and the related statements of
operations, partnership capital (deficit) and cash flows for each
of the three years in the period ended December 31, 1996. 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 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, 1996 and 1995, and the results of its operations and
its cash flows for each of the three years in the period ended
December 31, 1996 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
February 7, 1997
<PAGE>
SECURED INVESTMENT RESOURCES FUND, L.P.
BALANCE SHEETS
December 31,
1996 1995
ASSETS
INVESTMENT PROPERTIES (Note B)
Land and buildings $16,523,135 $16,486,456
Furniture, fixtures and equipment 1,714,939 1,552,076
18,238,074 18,038,532
Less accumulated depreciation and
allowance for losses 6,667,531 6,078,281
11,577,543 11,960,251
Cash 206,974 161,414
Rents and other receivables, less
allowance of $42,350 in 1996 and
$57,200 in 1995 (Notes F and I) 10,236 18,351
Prepaid expenses 368 8,257
Debt issuance costs, net of accumulated
amortization of $63,135 in 1996 and
$41,550 in 1995 141,488 149,231
Commercial commissions, deposits and
other 17,015 27,591
Restricted deposits 15,105 73,299
397,186 438,143
$11,967,729 $12,398,394
See notes to consolidated financial statements.
<PAGE>
SECURED INVESTMENT RESOURCES FUND, L.P.
CONSOLIDATED BALANCE SHEETS--CONT'D.
December 31,
1996 1995
LIABILITIES AND PARTNERSHIP CAPITAL (DEFICIT)
Mortgage Debt (Note C) $11,952,227 $11,826,431
Accrued interest 128,096 94,146
Accounts payable and accrued
expenses (Note G) 106,926 240,756
Due to related parties (Note D) 57,416 50,922
Unearned revenue 110,733 51,483
Tenant security deposits 75,485 79,383
TOTAL LIABILITIES 12,430,883 12,343,121
PARTNERSHIP CAPITAL (DEFICIT)
General Partners
Capital contribution 1,000 1,000
Partnership deficit (60,789) (55,545)
(59,789) (54,545)
Limited Partners
Capital contributions 5,608,838 5,608,838
Partnership deficit (6,018,203) (5,499,020)
(409,365) 109,818
TOTAL PARTNERSHIP CAPITAL
(DEFICIT) (469,154) 55,273
$11,961,729 $12,398,394
See notes to consolidated financial statements.
<PAGE>
SECURED INVESTMENT RESOURCES FUND, L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
Years Ended December 31,
1996 1995 1994
REVENUES
Rents $ 2,224,610 $ 2,234,875 $ 2,116,070
Interest 4,990 6,721 1,267
Maintenance escalations 68,992 84,824 90,151
2,297,592 2,326,420 2,207,488
OPERATING AND ADMINISTRATIVE
EXPENSES
Property operating
expenses 753,457 738,543 688,186
General and administrative
expenses 50,846 58,304 44,919
Professional services (Note D) 89,990 104,216 82,181
Management fees (Note D) 102,613 107,915 94,860
996,906 1,008,978 910,146
NET OPERATING INCOME 1,301,686 1,317,442 1,297,342
NON-OPERATING EXPENSES
Interest 1,202,257 1,175,423 1,207,972
Depreciation and
amortization 623,856 627,298 590,270
1,826,113 1,802,721 1,798,242
PARTNERSHIP LOSS $ (524,427) $ (485,279) $ (500,900)
Allocation of loss:
General Partners $ (5,244) $ (4,853) $ (5,009)
Limited Partners (519,183) (480,426) (495,891)
$ (524,427) $ (485,279) $ (500,900)
Partnership loss per
limited partnership
unit $ (20.88) $ (19.32) $ (19.94)
See notes to consolidated financial statements.
<PAGE>
SECURED INVESTMENT RESOURCES FUND, L.P.
CONSOLIDATED STATEMENTS OF PARTNERSHIP CAPITAL (DEFICIT)
Years Ended December 31, 1996, 1995 and 1994
General Limited
Partners Partners Total
Balances at January 1, 1994 $ (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
Partnership loss (5,244) (519,183) (524,427)
Balances at December 31, 1996 $ (59,789) $ (409,365) $ (469,154)
See notes to consolidated financial statements.
<PAGE>
SECURED INVESTMENT RESOURCES FUND, L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended December 31,
1996 1995 1994
OPERATING ACTIVITIES
Partnership loss $ (524,427) $ (485,279) $ (500,900)
Adjustments to reconcile
partnership loss to net
cash provided by operating
activities:
Depreciation and
amortization 623,856 627,298 590,270
Provisions for losses
on rents and other
receivables (14,850) 36,819 46,068
Changes in assets and
liabilities:
Rents and other
receivables 22,965 189,148 (55,746)
Prepaid expenses 7,889 12,675 62,035
Commercial commissions,
deposits and other (2,445) (12,097) 3,933
Accounts payable
and accrued expenses (133,830) (131,140) 54,906
Accrued interest 33,950 (188,743) 149,896
Unearned revenue 59,250 (9,376) 58,234
Tenant security
deposits (3,898) 166 4,058
NET CASH PROVIDED BY
OPERATING ACTIVITIES 68,460 39,471 412,754
INVESTING ACTIVITIES
Improvements to investment
properties (199,542) (182,714) (142,105)
Restricted deposits 58,194 (73,299) ---
NET CASH USED IN
INVESTING ACTIVITIES (141,348) (256,013) (142,105)
<PAGE>
SECURED INVESTMENT RESOURCES FUND, L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS--CONT'D.
Years Ended December 31,
1996 1995 1994
FINANCING ACTIVITIES
Borrowings under
debt arrangements $ 2,017,300 $ 3,850,781 $ ---
Debt issuance costs (13,842) (43,867) (108,250)
Advances (to) from
related parties 6,494 (11,178) (23,000)
Principal payments on
debt (1,891,504) (3,600,042) (54,574)
NET CASH PROVIDED BY (USED IN)
FINANCING ACTIVITIES 118,448 195,694 (185,824)
INCREASE (DECREASE) IN CASH 45,560 (20,848) 84,825
CASH BEGINNING OF YEAR 161,414 182,262 97,437
CASH END OF YEAR $ 206,974 $ 161,414 $ 182,262
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
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 are 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. The
application of this pronouncement did not have a material effect on
the financial statements of the Partnership.
Reclassification--Certain reclassifications have been made to the
1995 Financial Statement to conform to the 1996 presentation.
These reclassifications had no effect on the results of operations.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--CONT'D.
NOTE B--INVESTMENT PROPERTIES
Investment properties consist of the following:
December 31,
1996 1995
Cost (including capital
improvements subsequent
to acquisition):
The Colony Apartments $ 6,339,111 $ 6,223,377
Cascade Apartments 2,693,957 2,667,321
Hidden Valley Exchange
Shopping Center 2,122,326 2,118,826
Foothills Village
Shopping Center 5,645,845 5,595,794
The Market Shopping Center 1,434,163 1,430,542
Partnership 2,672 2,672
18,238,074 18,038,532
Less
Accumulated depreciation 6,262,531 5,673,281
Allowance for losses 405,000 405,000
$ 11,570,543 $ 11,960,251
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 $589,250,
$584,926 and $576,209 for the years ended December 31, 1996,
1995, and 1994.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--CONT'D.
NOTE C--MORTGAGE DEBT
Non-recourse mortgage debt consists of the following:
December 31,
1996 1995
Collateralized by Investment Property
First Mortgages
Hidden Valley Exchange S.C. $ 813,628 $ 811,973
The Market S.C./Hidden Valley 1,601,745 1,825,697
Foothills Village S.C. 2,621,779 2,621,779
The Colony Apts. 3,661,657 3,699,260
Cascade Apts. 1,875,173 1,914,656
Second Mortgages
Foothills Village S.C. 968,245 953,066
The Colony Apartments 410,000 ---
$11,952,227 $11,826,431
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 with interest charged at 8.5%.
This loan requires monthly principal and interest payments of
$6,266 with the final payment due September 2000.
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
7.0% interest with monthly principal and interest of $11,426
through the maturity date of June 2001.
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. Subsequent
to the loan's maturity date, the Partnership has been able to make
monthly interest only payments continuing at 10%.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--CONT'D.
NOTE C--MORTGAGE DEBT--CONT'D.
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. During 1996, the maturity date of this note was extended to
December 1, 2001 with monthly payments of $8,416 of principal and
interest at 8.5%.
The net book value of this property was $2,706,000 as of December
31, 1996.
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.
On May 28, 1996, the Partnership signed a note, collateralized by
a second mortgage on The Colony Apartments, in the amount of
$410,000 at 7% interest. The Partnership will make monthly
interest payments on this mortgage until June 25, 1998 when the
entire amount becomes due and payable. The proceeds of this note
were used to pay delinquent real estate taxes for The Market and
Hidden Valley Exchange as well as accrued interest and related loan
costs.
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 of $21,733 until permanent financing is found.
The net book value of this property was $1,663,000 as of December
31, 1996.
Cash paid for interest totaled $1,168,308, $1,364,166 and
$1,058,076 during 1996, 1995, and 1994, respectively.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--CONT'D.
NOTE C--MORTGAGE DEBT--CONT'D.
Maturities of mortgage debt are as follows:
Year
1997 $ 4,590,272
1998 511,876
1999 111,236
2000 906,452
2001 2,428,806
Thereafter 3,403,585
TOTAL $11,952,227
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 an 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 follow:
Years Ended December 31,
1996 1995 1994
Property management fees $102,613 $107,915 $ 94,860
Professional Services 47,168 46,000 ---
$149,781 $153,915 $ 94,860
These professional services were provided by an unrelated entity
previous to January 1, 1995.
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, 1996, 1995 and 1994.
Amounts due from (to) related parties consist of the following:
Years Ended December 31,
1996 1995
SIR Inc. $ 25,929 $ 23,721
Secured Investment Resources
Fund, L.P. II (5,000) ---
Secured Investment Resources
Fund, L.P. III (78,345) (74,643)
Due To Related Parties $ (57,416) $ (50,922)
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--CONT'D.
NOTE D -- CONT'D.
Advances to SIR Inc. are scheduled to be reimbursed in 1997.
In May, 1995, the Partnership began repaying the advances owed to
Secured Investment Resources Fund, L.P. III. During 1996, $2,440
of principal was repaid while $6,142 of interest expense was
accrued at 9% per annum into the note balance.
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.
The General Partners believe that sufficient working capital will
be available to fund known, ongoing operating and capital
expenditure requirements of the Partnership during 1997. The
primary sources of working capital during 1997 are expected to be
cash flow from operations. The Partnership is actively seeking a
mortgage lender for the Cascade Apartments mortgage and the
Foothills Village Shopping Center first mortgage. The projected
new loan proceeds would include refinancing costs as well as
reserves for capital improvements as needed on the mortgaged
properties.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--CONT'D.
NOTE F -- CONT'D.
Certain positive factors are expected to 1997 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 1997. Management believes revenue will increase from 1996
levels because of this leasing activity. It is anticipated that
property operating expenses in 1997 will increase only slightly
from those amounts which were incurred during 1996.
Interest expense on the variable rate notes payable is expected to
increase slightly over those levels realized during 1996. 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,
1996 1995
Vendor accounts payable $ 16,353 $ 14,032
Property taxes 16,473 178,416
Professional fees 55,458 28,176
Utilities 11,764 13,013
Accrued Payroll and taxes 6,878 7,119
$ 106,926 $ 240,756
As of December 31, 1996, all real estate taxes are current.
<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,
1996 1995
Financial reporting basis:
Total assets $ 11,961,729 $ 12,398,394
Total liabilities (12,430,883) (12,343,121)
Total Partners' capital $ (469,154) $ 55,273
Tax basis:
Total assets $ 11,016,535 $ 11,537,581
Total liabilities (12,320,149) (12,291,638)
Total Partners' capital $ (1,303,614) $ (754,057)
Years Ended December 31,
1996 1995 1994
Partnership loss-financial
reporting purposes $ (524,427) $ (485,279) $ (500,900)
Book versus tax differences
due to:
Depreciation and
amortization (69,531) (57,364) (54,856)
Provision for doubtful
accounts (14,850) (49,902) (8,976)
Other 59,251 (2,017) (28,636)
(25,130) (109,283) (92,468)
Partnership loss-federal
income tax purposes $ (549,557) $ (594,562) $ (593,368)
<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,
1996 are as follows:
Year
1997 $ 561,381
1998 382,700
1999 346,013
2000 289,807
2001 227,155
Thereafter 133,142
Total $ 1,940,198
NOTE J--DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS
The carrying values reflected in the balance sheets at December 31,
1996, reasonably approximate the fair values for cash and cash
equivalents. The Partnership cannot estimate the fair value of its
fixed-rate borrowings at December 31, 1996, as there is no readily
available market value for instruments with similar
characteristics.
(The remainder of this page intentionally left blank.)
<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 59,
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 and Secured
Investment Resources Fund, L.P. 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, 1996, these partnerships,
including Secured Investment Resources Fund, L.P., have
raised a total of $60,709,750.
<PAGE>
Item 11. Management Compensation
During 1996, The Partnership paid $102,613 in fees to
affiliated companies 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%.
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) Report of Independent Auditor 11
(ii) Consolidated Balance Sheets -
December 31, 1996 and 1995 12-13
(iii) Consolidated Statements of Operations -
Years Ended December 31, 1996,
1995 and 1994 14
(iv) Consolidated Statements of Partnership
Capital - Years ended December 31,
1996, 1995 and 1994 15
(v) Consolidated Statements of Cash Flows -
Years Ended December 31, 1996,
1995 and 1994 16-17
(vi) Notes to Consolidated Financial
Statements 18-27
(a)(2) The following Financial Statement Schedules are filed
as part of this report:
(i) Schedule II - Allowance for
Doubtful Accounts 34
(ii) Schedule III - Real Estate and
Accumulated Depreciation 35-37
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, 1996
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,
1994 $150,452 $46,068 $ 55,044 $141,476
1995 141,476 36,819 121,095 57,200
1996 57,200 44,725 59,575 42,350
<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: /s/ James R. Hoyt
James R. Hoyt
as Individual General Partner
Date: April 14, 1997
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: /s/ James R. Hoyt
James R. Hoyt, President
Date: April 14, 1997
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>
<TABLE>
Secured Investment Resources Fund, L.P.
Schedule III - Real Estate & Accumulated Depreciation
December 31, 1996
<CAPTION>
Initial Cost to Partnership (A) Subsequent to Acquisition
Buildings & Furniture Reduction
Encumbrances Land Improvements Equipment Improvements of Basis
<S> <C> <C> <C> <C> <C> <C> (B)
Other Equipment $ --- $ --- $ --- $ --- $ 2,672 $ ---
Garden Apartments:
Colony Apts 3,661,657 578,791 5,035,482 259,367 465,471 ---
Burlington, NC
Cascade Apts 1,875,173 389,924 1,903,915 254,347 145,771 ---
Topeka, KS
Strip Shopping Centers
Hidden Valley 813,628 293,715 1,775,991 --- 143,838 (91,218)
Independence MO
Foothills 3,590,024 1,069,233 3,661,619 --- 914,993 ---
Las Vegas, NV
The Market Square 2,011,745 265,250 1,196,129 --- 19,653 (46,869)
Overland Park, KS
$11,952,227 $2,596,913 $13,573,136 $ 513,714 $1,692,398 $(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>
Other Equipment $ --- $ --- $ 2,672 $ 2,672 $ 2,672 <C> <C>
Garden Apartments:
Colony Apartments 578,791 5,250,599 509,721 6,339,111 2,307,003 16-Oct-85 30 Yrs <F1>
Burlington, NC 5 Yrs <F2>
Cascade Apartments 390,509 2,057,481 245,967 2,693,957 1,030,670 19-Dec-85 30 Yrs <F1>
Topeka, KS 5 Yrs <F2>
Strip Shopping Centers
Hidden Valley 277,809 1,747,242 97,275 2,122,326 656,027 30-Sep-85 30 Yrs <F1>
Independence, MO 5 Yrs <F2>
Foothills 1,069,233 3,721,335 855,278 5,645,846 1,870,165 13-Nov-85 30 Yrs <F1>
Las Vegas, NV 5 Yrs <F2>
Market Square 256,345 1,173,791 4,026 1,434,162 800,994 18-Nov-85 30 Yrs <F1>
Overland Park, KS 5 Yrs <F2>
$2,572,687 $13,950,448 $1,714,939 $18,238,074 $ 6,667,531
<FN>
(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, 1996
<CAPTION>
Furniture
Buildings & Fixtures &
Total Land Improvements Equipment
<S> <C> <C> <C> <C>
Reconciliation of Real Estate Owned:
Balance at January 1, 1994 $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
Additions during year:
Improvements 199,542 --- 36,678 162,864
Balance at December 31, 1996 $18,238,074 $2,572,687 $13,950,447 $1,714,940
(D) Reconciliation of Accumulated Depreciation:
Balance at January 1, 1994 $ 4,917,146 $ --- $ 4,346,045 $ 571,101
Additions during year:
Depreciation 576,209 --- 419,540 156,669
Balance at December 31, 1994 5,493,355 --- 4,765,585 727,770
Additions during year:
Depreciation 584,926 --- 277,906 307,020
Balance at December 31, 1995 6,078,281 --- 5,043,491 1,034,790
Additions during year:
Depreciation 589,250 --- 459,358 129,892
Balance at December 31, 1996 $ 6,667,531 $ --- $ 5,502,849 $1,164,682
(E) The total gross amount of real estate at December 31, 1996 includes
$971,323 of acquisition fees paid to affiliates.
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<CASH> 206,974
<SECURITIES> 0
<RECEIVABLES> 52,586
<ALLOWANCES> 42,350
<INVENTORY> 0
<CURRENT-ASSETS> 397,183
<PP&E> 18,238,074
<DEPRECIATION> 6,667,531
<TOTAL-ASSETS> 11,967,729
<CURRENT-LIABILITIES> 478,656
<BONDS> 11,952,227
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 11,961,729
<SALES> 0
<TOTAL-REVENUES> 2,297,592
<CGS> 0
<TOTAL-COSTS> 996,906
<OTHER-EXPENSES> 623,856
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,202,257
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (524,427)
<EPS-PRIMARY> (20.88)
<EPS-DILUTED> 0
</TABLE>
