FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(MARK ONE)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED...............................SEPTEMBER 30, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM...................TO.........................
COMMISSION FILE NUMBER 0-16792
BASS REAL ESTATE FUND-84
- -----------------------------------------------------------------------------
(EXACT NAME OF PARTNERSHIP AS SPECIFIED IN ITS CHARTER)
NORTH CAROLINA 56-1419569
- ------------------------------------------------------------------------------
(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
4000 PARK ROAD CHARLOTTE, NORTH CAROLINA 28209
- ------------------------------------------------------------------------------
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICE) (ZIP CODE)
PARTNERSHIP'S TELEPHONE NUMBER, INCLUDING AREA CODE: (704) 523-9407
- ------------
INDICATE BY CHECK MARK WHETHER THE PARTNERSHIP (1) HAS FILED ALL REPORTS
REQUIRED TO BE FILED BY SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF
1934 DURING THE PRECEDING 12 MONTHS (OR FOR SUCH SHORTER PERIOD THAT THE
PARTNERSHIP WAS REQUIRED TO FILE SUCH REPORTS), AND [2] HAS BEEN SUBJECT TO SUCH
FILING REQUIREMENTS FOR THE PAST 90 DAYS.
YES X NO
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BASS REAL ESTATE FUND-84
INDEX
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<TABLE>
<CAPTION>
PAGE
NUMBER
<S> <C>
PART I. FINANCIAL INFORMATION:
ITEM 1. FINANCIAL STATEMENTS
CONDENSED BALANCE SHEET
AS OF SEPTEMBER 30, 1995
(UNAUDITED) 3
CONDENSED STATEMENT OF INCOME
THREE MONTHS AND NINE MONTHS ENDED
SEPTEMBER 30, 1995 AND 1994
(UNAUDITED) 4
STATEMENT OF PARTNERS' DEFICIT 5
(UNAUDITED)
CONDENSED STATEMENT OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
(UNAUDITED) 6
NOTES TO CONDENSED FINANCIAL
STATEMENTS (UNAUDITED) 7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF
OPERATIONS 10
PART II. OTHER INFORMATION 12
SIGNATURES 14
</TABLE>
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<PAGE>
BASS REAL ESTATE FUND-84
CONDENSED BALANCE SHEET
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
1995 1994
------------------ -----------------
ASSETS (UNAUDITED)
-------
<S> <C> <C>
RENTAL PROPERTIES, AT COST:
LAND $550,298 $550,298
BUILDINGS 6,409,807 6,377,464
FURNISHINGS AND FIXTURES 816,487 788,552
ACCUMULATED DEPRECIATION (2,929,846) (2,794,236)
------------------ -----------------
4,846,746 4,922,078
CASH AND CASH INVESTMENTS 114,489 115,809
RESTRICTED ESCROW DEPOSITS & FUNDED RESERVES 192,292 104,697
DEFERRED COSTS AND OTHER ASSETS, NET 25,544 18,666
------------------ -----------------
TOTAL ASSETS $5,179,071 $5,161,250
================== =================
LIABILITIES AND PARTNERS' DEFICIT
-------------------------------------
MORTGAGE LOANS PAYABLE:
PAYABLE TO BANK $2,487,227 $2,510,726
PAYABLE TO AFFILIATE 2,856,278 2,856,278
NOTES PAYABLE TO AFFILIATES 114,929 114,929
ACCRUED LIABILITIES:
INTEREST PAYABLE TO AFFILIATE 197,561 215,549
OTHER 90,229 34,724
SECURITY DEPOSITS 58,222 43,116
------------------ -----------------
TOTAL LIABILITIES 5,804,446 5,775,322
------------------ -----------------
PARTNERS' DEFICIT:
LIMITED PARTNERS' INTEREST 0 0
GENERAL PARTNERS' INTEREST (625,375) (614,072)
------------------ -----------------
TOTAL PARTNERS' DEFICIT (625,375) (614,072)
------------------ -----------------
TOTAL LIABILITIES AND PARTNERS' DEFICIT $5,179,071 $5,161,250
================== =================
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THE FINANCIAL STATEMENTS.
-3-
<PAGE>
BASS REAL ESTATE FUND-84
CONDENSED STATEMENT OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS NINE MONTHS THREE MONTHS NINE MONTHS
ENDED ENDED ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
1995 1995 1994 1994
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
REVENUE:
RENTAL INCOME $338,513 $987,890 $304,284 $905,921
INTEREST INCOME 860 2,420 660 1,554
OTHER OPERATING INCOME 7,634 26,913 13,611 38,754
--------------- --------------- --------------- ---------------
347,007 1,017,223 318,555 946,229
--------------- --------------- --------------- ---------------
OPERATING EXPENSES:
FEES AND EXPENSES TO AFFILIATES 52,980 162,991 58,284 153,982
PROPERTY TAXES AND INSURANCE 24,842 74,527 24,449 73,346
UTILITIES 21,930 63,142 22,468 58,271
REPAIRS AND MAINTENANCE 29,148 82,661 30,284 82,265
ADVERTISING 12,422 32,757 13,508 36,616
DEPRECIATION AND AMORTIZATION 58,615 135,753 72,390 217,290
OTHER 4,814 11,395 2,778 10,380
--------------- --------------- --------------- ---------------
204,751 563,226 224,161 632,150
INTEREST EXPENSE:
PAYABLE TO BANK 46,735 140,647 47,310 142,340
PAYABLE TO AFFILIATE 66,559 185,466 85,865 199,726
NONOPERATING EXPENSE 21,395 64,187 15,850 57,120
--------------- --------------- --------------- ---------------
TOTAL EXPENSES 339,440 953,526 373,186 1,031,336
--------------- --------------- --------------- ---------------
NET INCOME (LOSS) $7,567 $63,697 ($54,631) ($85,107)
=============== =============== =============== ===============
NET INCOME (LOSS) ALLOCATED TO GENERAL PARTNERS $76 $637 ($54,631) ($85,107)
=============== =============== =============== ===============
NET INCOME (LOSS) ALLOCATED TO LIMITED PARTNERS $7,491 $63,060 $0 $0
=============== =============== =============== ===============
NET INCOME (LOSS) PER LIMITED PARTNERSHIP UNIT, BASED
ON NUMBER OF UNITS OUTSTANDING (8,530) $0.88 $7.39 $0 $0
=============== =============== =============== ===============
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THE FINANCIAL STATEMENTS.
-4-
<PAGE>
BASS REAL ESTATE FUND-84
STATEMENT OF PARTNERS' DEFICIT
(UNAUDITED)
<TABLE>
<CAPTION>
LIMITED GENERAL
PARTNERS PARTNERS TOTAL
---------------- ---------------- --------------
<S> <C> <C> <C>
BALANCE, JANUARY 1, 1995 $0 ($614,072) ($614,072)
DISTRIBUTION TO PARTNERS (74,250) (750) (75,000)
REALLOCATION OF PARTNERS' DEFICIT DUE TO DISTRIBUTION 11,190 (11,190) 0
NET INCOME 63,060 637 63,697
================ ================ ==============
BALANCE, SEPTEMBER 30, 1995 $0 ($625,375) ($625,375)
================ ================ ==============
LIMITED GENERAL
PARTNERS PARTNERS TOTAL
---------------- ---------------- --------------
BALANCE, JANUARY 1, 1994 $0 ($468,543) ($468,543)
NET LOSS 0 (85,107) (85,107)
---------------- ---------------- --------------
BALANCE, SEPTEMBER 30, 1994 $0 ($553,650) ($553,650)
================ ================ ==============
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THE FINANCIAL STATEMENTS.
-5-
<PAGE>
BASS REAL ESTATE FUND-84
CONDENSED STATEMENT OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
NINE MONTHS NINE MONTHS
ENDED ENDED
SEPTEMBER 30, SEPTEMBER 30,
1995 1994
------------------- -----------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME (LOSS) $63,697 ($85,107)
ADJUSTMENTS TO RECONCILE NET LOSS TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES-
DEPRECIATION AND AMORTIZATION 135,753 217,290
CHANGE IN ASSETS AND LIABILITIES:
INCREASE IN ACCRUED LIABILITIES 37,517 67,798
INCREASE IN ESCROWS AND OTHER ASSETS, NET (79,510) (56,501)
------------------- -----------------
NET CASH PROVIDED BY OPERATING ACTIVITIES 157,457 143,480
------------------- -----------------
CASH FLOWS FROM INVESTING ACTIVITIES:
ADDITIONS TO RENTAL PROPERTIES (60,278) (74,099)
------------------- -----------------
CASH FLOWS FROM FINANCING ACTIVITIES:
DISTRIBUTION TO PARTNERS (75,000) 0
PAYMENTS ON MORTGAGE LOAN PAYABLE TO BANK (23,499) (21,806)
------------------- -----------------
NET CASH USED IN FINANCING ACTIVITIES (98,499) (21,806)
------------------- -----------------
NET INCREASE (DECREASE) IN CASH AND
CASH INVESTMENTS (1,320) 47,575
CASH AND CASH INVESTMENTS, BEGINNING OF YEAR 115,809 81,455
------------------- -----------------
CASH AND CASH INVESTMENTS, SEPTEMBER 30 $114,489 $129,030
=================== =================
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL
PART OF THE FINANCIAL STATEMENTS.
-6-
<PAGE>
BASS REAL ESTATE FUND-84
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
1. ORGANIZATION
Bass Real Estate Fund-84 (the Partnership) was organized on June 1, 1984,
to engage in the acquisition, development, operation, holding and disposition of
income-producing residential and commercial properties. Limited partnership
interests were sold at $500 per unit (8,530 units) for a total of $4,265,000.
Under the terms of the partnership agreement, net income (loss) and cash
distributions from operations are to be allocated 99% to the limited partners
and 1% to the general partners. In the event of a sale or liquidation of the
partnership properties, the partnership agreement provides for special
allocations of resultant gains or losses. Due to recurring financial statement
losses, the limited partners' interest is zero at March 31, 1995, and future
losses will be allocated 100% to the general partners. In addition, limited
partners' deficits resulting from the allocation of cash distributions have been
reallocated to the general partners in order to return the limited partners'
interest to zero.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Partnership records are maintained on the accrual basis of accounting
in accordance with generally accepted accounting principles.
In the opinion of management, the accompanying unaudited financial
statements reflect all adjustments (which include only normal recurring
adjustments) necessary to present fairly the Partnership's financial position as
of September 30, 1995, results of operations for the three months and nine
months ended September 30, 1995 and 1994, and cash flow for the nine months
ended September 30, 1995 and 1994.
3. RENTAL PROPERTIES
The rental properties consist of two residential apartment complexes: The
Chase on Commonwealth (The Chase) and Willow Glen Apartments (formerly Sunset
Apartments). Both complexes are managed by Marion Bass Properties, Inc.
The Chase, constructed by Marion Bass Construction Company for the
Partnership, contains 54 one-bedroom and 78 two-bedroom units. The land upon
which the complex is constructed was purchased for the Partnership by Marion F.
Bass and was sold to the Partnership at his acquisition cost.
Willow Glen Apartments (an existing 120-unit residential apartment complex)
was purchased by the Partnership in April 1986.
4. MORTGAGE LOAN PAYABLE TO AFFILIATE
The mortgage loan payable to affiliate was obtained in 1987 from Bass
Mortgage Income Fund I, Limited Partnership (the Fund). This mortgage loan was
evidenced by a nonrecourse promissory note maturing in 2002 with original terms
requiring payments of interest only at 11.75% prior to maturity. Under the
mortgage loan, all rental property associated with The Chase is pledged as
collateral. In January 1994, certain terms of this mortgage loan were modified
in a troubled-debt restructuring approved by the Partnership, the Fund and the
managing general partner. The restructured mortgage loan agreement includes the
following provisions:
(Bullet) The interest rate has been reduced from 11.75% to 9.5% for the period
from September 1, 1991, through September 30, 1992. Beginning October
1, 1992, through maturity, the interest rate is 7%
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<PAGE>
BASS REAL ESTATE FUND-84
(the Stated Interest Rate) per year. In addition to the Stated Interest
Rate, the Partnership is required to pay additional interest on a
quarterly basis to the extent of net cash flow from operations, as
defined, with total quarterly interest payments not to exceed 9.5% per
year.
(Bullet) The Partnership has executed a nonrecourse promissory note in the
amount of $113,061 representing certain interest deferred during 1991
and 1992. This promissory note bears simple interest at 9.5% per year
and is secured by a deed of trust on the property collateralizing the
mortgage loans. The principal and interest on this promissory note are
due and payable on the maturity of the mortgage loan, except that
prepayments in full are permitted at the same time the mortgage loan is
paid.
(Bullet) A tax escrow and replacement reserve will continue to be funded as
required by the restructured loan agreement. These reserves have been
pledged by the Partnership as additional collateral for the loans.
(Bullet) Finally, as part of the restructuring, the Managing General Partner
agreed to convert certain management fees payable in the amount of
$1,868 to a nonrecourse, subordinated promissory note from the
Partnership to Marion Bass Properties, Inc. The note bears interest at
the applicable federal rates as provided by the Internal Revenue
Service.
(Bullet) The contractual commitment of the General Partner of the Partnership to
loan amounts equal to certain fees payable by the Partnership to
affiliates of the Managing General Partner has been terminated.
The troubled-debt restructuring is being accounted for under the provisions
of Statement of Financial Accounting Standards No. 15 "Accounting by Debtors and
Creditors for Troubled Debt Restructurings" (the Statement). The Statement
requires that the Partnership account for the effects of the restructuring
prospectively from the time of the restructuring. Thus, interest expense has
been computed by applying a constant effective interest rate to the carrying
amount of the loan and accrued interest outstanding. This effective rate is the
discount rate that equates the present value of all future noncontingent cash
payments with the carrying amount of the restructured liabilities outstanding at
the date of the restructuring.
In July 1995, the Fund had accepted the Partnership's proposal for a
negotiated prepayment of the mortgage loan and promissory notes payable to the
Fund. There can be no assurances that the Partnership will be able to meet the
terms of this prepayment agreement by November 30, 1995. The accompanying
financial statements do not reflect any adjustments related to the acceptance of
this proposal.
5. MORTGAGE LOAN PAYABLE TO BANK
The mortgage loan payable to a bank is a 7.5% insured loan payable over 40
years from June 1981. This mortgage is insured under Section 221(d)(4) of the
National Housing Act, as amended, and requires monthly payments of $18,238 that
include principal and interest. In addition, the mortgage also requires the
Partnership to fund certain reserves for capital improvement, insurance and tax
expenditures. Under the Federal Housing Administration Regulatory Agreement
entered into under the mortgage, all rental property associated with the Willow
Glen complex is pledged as collateral. The agreement contains certain other
reporting and operating requirements, the most significant of which restricts
partnership distributions from Willow Glen operations to the amount of "surplus
cash" as defined. As of December 31, 1994, "surplus cash" available for
distribution amounted to $85,660. Therefore, a distribution of $75,000 ($8.70
per limited partnership unit) was made during the first quarter of 1995.
8
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BASS REAL ESTATE FUND-84
6. GENERAL PARTNERS AND RELATED PARTY TRANSACTIONS
The general partners are Marion F. Bass (The Individual General Partner)
and Marion Bass Real Estate Group, Inc., (The Managing General Partner).
The rental properties are managed by Marion Bass Properties, Inc., which is
wholly owned by Marion F. Bass.
Under the terms of the partnership agreement, the General Partners or their
affiliates charged certain fees and expenses during the nine-month period ending
September 30, 1995 as follows:
Management fee of 5% of gross revenues $50,102
Reimbursed maintenance salaries and benefits 48,536
Reimbursed property manager salaries and benefits 64,353
$162,991
The general partners and certain of their affiliates also perform, without
cost to the Partnership, day-to-day investment, management and administrative
functions of the Partnership.
The general partners are entitled to receive 1% of all items of partnership
income, gain, loss, deduction, credit and net cash flow from operations.
Therefore, during the first quarter of 1995 the General Partners received a cash
distribution of $750 from available surplus cash that represented net cash flow
from operations for the period January 1, 1994 through December 31, 1994.
9
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BASS REAL ESTATE FUND-84
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
At September 30, 1995, partners' equity had a deficit of $625,375 and cash
and cash reserves amounted to $114,489. The Partnership had accrued liabilities
of $287,790 that consisted of interest payable to affiliates of $197,561, 1995
property taxes of $63,513, net fees due to an affiliate of $11,578 and trade
accounts payable of $15,138.
Net cash provided by operations totaled $157,457 for the nine months ended
September 30, 1995. This is compared to net cash provided by operating
activities of $143,480 for the corresponding period in 1994. The Partnership had
a non-amortizing mortgage note of $2,856,278 with a 15-year term requiring
minimum interest payments of 7% not to exceed 9.5% per year. The Partnership
also had a 7.5% amortizing mortgage note in the amount of $2,487,227 and made
principal payments of $23,499 during the nine month period ended September 30,
1995.
The 1995 operating plan and budget projects a net cash flow from
partnership activities (exclusive of changes in assets and liabilities and
distribution to partners) of $70,000 at The Chase and $30,000 at Willow Glen.
The budget assumes that the Partnership will achieve occupancy rates equivalent
to 94% at The Chase and 95% at Willow Glen. For the nine months ended September
30, 1995, actual combined averaged economic occupancy was 96% and actual
combined net cash flow from partnership activities (exclusive of changes in
assets and liabilities and distribution to partners) was $115,673. Rents have
been increased 5% over rates charged in 1994 to offset normal increases in
operating expenses. Capital expenditures of $18,473 and $73,730 are budgeted for
The Chase and Willow Glen, respectively, and include selected replacement of
carpeting and appliances at both properties. This also includes scheduled roof
repairs and replacements of $28,000 at Willow Glen. As of September 30, 1995,
actual capital expenditures and additions to rental property have totaled
$33,351 for the Chase (which included non budgeted pool repairs of $6,485 and
budgeted carpet, appliance and other miscellaneous replacements of $26,866) and
$55,905 for Willow Glen (which included roof repairs of $25,857 and carpet,
appliance and other miscellaneous replacements of $30,048). Projected cash flows
from the two properties and available cash reserves, restricted and
unrestricted, have been used to fund the replacements. Due to the efforts of the
Partnership to refinance the mortgage loan for The Chase, additional unbudgeted
replacements of carpet and appliances were funded from available cash reserves.
On the basis of these estimates and year-to-date results, the Partnership
believes that the cash flow from operations will be sufficient to meet cash
requirements and rebuild cash reserves, which at September 30, 1995, totaled
$114,489. Under the HUD Regulatory Agreement with respect to Willow Glen,
distributions are limited to "surplus cash" as defined and calculated at the end
of a semi-annual fiscal period. During 1994 Willow Glen generated "surplus cash"
of $85,660 of which $75,000 was distributed to partners in January, 1995. The
difference of $10,660 was placed in the reserve account for scheduled
replacements. The Partnership does not anticipate a distribution to be made to
partners from 1995 results of operations. Instead, all cash produced from 1995
operations will be placed into reserves for future improvements to the two
properties and loan fees associated with the refinancing of the mortgage loan
for The Chase (this action is dependent upon the Partnership's ability to meet
the terms of the prepayment agreement by November 30, 1995).
In January, 1991, the Partnership negotiated a restructure of the mortgage
loan payable to affiliate for The Chase. Under the terms of the restructured
mortgage loan agreement between the Partnership and the lender (Bass Mortgage
Income Fund I), the following provisions were instituted:
(Bullet) The interest rate has been reduced from 11.75% to 9.5% for the period
from September 1, 1991, through September 30, 1992. Beginning October
1, 1992, through maturity, the interest rate is 7% (the Stated Interest
Rate) per year. In addition to the Stated Interest Rate, the
Partnership is
10
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BASS REAL ESTATE FUND-84
required to pay additional interest on a quarterly basis
to the extent of net cash flow from operations, as defined, with total
quarterly interest payments not to exceed 9.5% per year.
(Bullet) The Partnership has executed a nonrecourse promissory note in the
amount of $113,061 representing certain interest deferred during 1991
and 1992. This promissory note bears interest at 9.5% per year and is
secured by a deed of trust on the property collateralizing the mortgage
loans. The principal and interest on this promissory note are due and
payable on the maturity of the mortgage loan, except that prepayments
in full are permitted at the same time the mortgage loan is paid.
(Bullet) A tax escrow and replacement reserve will continue to be funded as
required by the restructured loan agreement. These reserves have been
pledged by the Partnership as additional collateral for the loans.
(Bullet) Finally, as part of the restructuring, the Managing General Partner
agreed to convert certain management fees payable in the amount of
$1,868 to a nonrecourse, subordinated promissory note from the
Partnership to Marion Bass Properties, Inc. The note bears interest at
the applicable federal rates as provided by the Internal Revenue
Service.
(Bullet) The contractual commitment of the General Partner of the Partnership to
loan amounts equal to certain fees payable by the Partnership to
affiliates of the Managing General Partner has been terminated.
The troubled-debt restructuring is being accounted for under the provisions
of Statement of Financial Accounting Standards No. 15 "Accounting by Debtors and
Creditors for Troubled Debt Restructurings" (the Statement). The Statement
requires that the Partnership account for the effects of the restructuring
prospectively from the time of the restructuring. Thus, interest expense has
been computed by applying a constant effective interest rate to the carrying
amount of the loan and accrued interest outstanding. This effective rate is the
discount rate that equates the present value of all future noncontingent cash
payments with the carrying amount of the restructured liabilities outstanding at
the date of the restructuring.
In July 1995, the Fund had accepted the Partnership's proposal for a
negotiated prepayment of the mortgage loan and promissory notes payable to the
Fund. There can be no assurances that the Partnership will be able to meet the
terms of this prepayment agreement by November 30, 1995. The accompanying
financial statements do not reflect any adjustments related to the acceptance of
this proposal.
RESULTS OF OPERATIONS
The following discussion relates to the Partnership's operation of The
Chase and Willow Glen Apartments for the three months and nine months ended
September 30, 1995 and 1994.
Results of operations for the three months ended September 30, 1995 reflect
a combined average economic occupancy of 95% compared to 92% for the
corresponding period in 1994. A third quarter comparison of 1995 and 1994
reflects higher rental income of $34,229 during 1995 due to increased occupancy
and rents being increased 5% over rates charged in 1994. Other operating income
was $5,977 lower in 1995 due mainly to the receipt of a one-time commission in
1994 from the supplier of laundry equipment. Overall, total income for the third
quarter ended September 30, 1995 was $28,452 higher than the corresponding
period in 1994.
Operating expenses were $204,751 for the three months ended September 30,
1995, compared to $224,161 for the corresponding period in 1994 which reflects a
variance of $19,410. Fees and expenses to affiliates that consist of a
management fee of 5% of gross revenues and the reimbursement of complex employee
salaries and benefits were lower by $5,304. Utilities were lower by $538.
Repairs and
11
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BASS REAL ESTATE FUND-84
maintenance was $1,136 lower due to reduced turnkey costs (expenses
associated with preparing rental units for occupation). Depreciation and
amortization was lower by $13,775.
In applying the principles of Statement of Financial Accounting Standards
No. 15, the Partnership recognized interest expense payable to affiliates of
$48,707 that reflected an effective interest rate of 6.14% for the three months
ended September 30, 1995. Under the original terms of the mortgage loan payable
to affiliate, the Partnership would have recognized $83,903 as interest expense
based on the interest rate of 11.75%. Additional interest expense of $17,852
(based on 2.5% for three months) was recognized and represents the interest in
excess of the Stated Interest Rate of 7%.
After combined interest expense of $113,294 and nonoperating expenses
(partnership expenses and nonrecurring replacement costs) of $21,395,
partnership operations recognized a net income of $7,567 for the three months
ended September 30, 1995. This is compared to a net loss of $54,631 for the
corresponding period in 1994.
Overall the Partnership recognized a net increase in total revenues of
$70,994 and a net decrease in operating expenses of $68,924 for the nine months
ended September 30, 1995 compared with the corresponding period in 1994. Under
the original terms of the mortgage loan payable to affiliates, the Partnership
would have recognized $251,709 (actual was $185,466) as interest payable to
affiliate based on the interest rate of 11.75%. After combined interest expense
of $326,113 and nonoperating expenses of $64,187, Partnership operations
recognized a net income of $63,697 for the nine months ended September 30, 1995.
This is compared to a net loss of $85,107 for the corresponding period in 1994.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Response: None
Item 2. Changes in Securities
Response: None
Item 3. Defaults upon Senior Securities
Response: None
Item 4. Submission of Matters to a Vote of Security Holders
Response: None
Item 5. Other Information
Response: None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
4(a) Copy of Limited Partnership Agreement dated as of June 1,
1984, filed as Exhibit 4(a) to Partnership's Registration
Statement of Form S-18 (No. 2-92295A), filed with the
Securities and Exchange Commission on July 19, 1984, which is
incorporated by reference to such Form S-18.
4(b) Copy of Certificate of Limited Partnership dated as of June 1,
1984, filed as Exhibit 4(b) to Partnership's Registration
Statement on Form S-18 (No. 2-92295A), filed with the
Securities and Exchange Commission on July 19, 1984, which is
incorporated by reference to such Form S-18.
12
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BASS REAL ESTATE FUND-84
4(c) Copy of Amendment to Agreement of Limited Partnership dated as
of March 14, 1986, filed as Exhibit 4(c) to the Partnership's
Form 10-K Annual report for the fiscal year ended December 31,
1985, filed with the Securities and Exchange Commission, which
is incorporated herein by reference to such Form 10-K.
(b) Reports on Form 8-K. No reports of Form 8-K were filed during the
quarter covered by this report.
13
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BASS REAL ESTATE FUND-84
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Partnership has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.
BASS REAL ESTATE FUND-84
By: Marion Bass Real Estate Group, Inc. as Managing General Partner
By: Marion F. Bass, President
Date: November 13, 1995
By: Robert J. Brietz, Executive Vice President
Date: November 13, 1995
14
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Article 5 for 3rd Quarter 10-Q for Bass Real Estate Fund-84.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 114,489
<SECURITIES> 0
<RECEIVABLES> 9,827
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 203,016
<PP&E> 7,776,592
<DEPRECIATION> 2,929,846
<TOTAL-ASSETS> 5,179,071
<CURRENT-LIABILITIES> 148,450
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> (625,375)
<TOTAL-LIABILITY-AND-EQUITY> 5,179,071
<SALES> 987,890
<TOTAL-REVENUES> 1,017,223
<CGS> 0
<TOTAL-COSTS> 427,473
<OTHER-EXPENSES> 199,940
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 326,113
<INCOME-PRETAX> 63,697
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 63,697
<EPS-PRIMARY> 7.39
<EPS-DILUTED> 7.39
</TABLE>
