UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
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FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarter ended March 31, 1996 Commission File Number 2-93980
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FJS PROPERTIES FUND I, L.P.
(Exact name of registrant as specified in its charter)
Delaware 13-3252067
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization)
Identification No.)
264 Route 537 East
Colts Neck, New Jersey 07722
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (908) 542-9209
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 of 15(d) of the Securities and Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
Authorized 100,000 limited partnership interests of which 16,788 have been sold
as of May 10, 1996.
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FJS PROPERTIES FUND I, L.P.
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INDEX
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Part I: FINANCIAL INFORMATION
Item 1: Financial Statements
Balance Sheets as of March 31, 1996 [Unaudited]
and December 31, 1995 ...................................... 1
Statements of Operations for the three months ended
March 31, 1996 and 1995 [Unaudited]......................... 2
Statement of Partners' Capital for the three months
ended March 31, 1996 [Unaudited]...... ..................... 3
Statements of Cash Flows for the three months ended
March 31, 1996 and 1995 [Unaudited]......................... 4
Notes to Financial Statements [Unaudited]................... 5
Item 2: Management's Discussion and Analysis of Financial Condition
and Results of Operations................................... 6
Part II: OTHER INFORMATION
Item 6: Exhibits and Reports on Form 8-K............................ 7
Signature Page............................................ ............ 8
. . . . . . . .
<PAGE>
PART I - FINANCIAL STATEMENTS
Item 1.
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FJS PROPERTIES FUND I, L.P.
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BALANCE SHEETS
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<TABLE>
March 31, December 31,
<S> <C> <C>
1 9 9 6 1 9 9 5
Assets:
Current Assets:
Cash and Cash Equivalents $ 551,076 $ 542,337
Cash - Escrow 248,775 188,468
Cash - Security Deposits 127,147 122,367
Other Current Assets 101,386 101,040
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Total Current Assets 1,028,384 954,212
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Property Investment:
Land 2,296,804 2,296,804
Buildings 6,569,125 6,569,125
Furniture, Fixtures and Building Improvements 1,727,549 1,727,549
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Totals - At Cost 10,593,478 10,593,478
Less: Accumulated Depreciation (4,074,028) (4,011,823)
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Property Investment - Net 6,519,450 6,581,655
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Other Assets 214,903 221,005
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Total Assets $ 7,762,737 $ 7,756,872
=============== ===============
Liabilities and Partners' Capital:
Current Liabilities:
Accounts Payable $ 68,578 $ 63,561
Accounts Payable - Related Party 16,851 25,549
Accrued Interest 39,275 38,947
Other Accrued Expenses 59,729 8,409
Tenant Security Deposits 127,147 122,367
Mortgage Payable - Current Portion 59,444 58,019
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Total Current Liabilities 371,024 316,852
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Long-Term Liability:
Mortgage Payable - Non-Current Portion 4,841,562 4,856,967
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Partners' Capital:
General Partner (1,210,358) (1,210,028)
Limited Partners 3,760,509 3,793,081
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Total Partners' Capital 2,550,151 2,583,053
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Total Liabilities and Partners' Capital $ 7,762,737 $ 7,756,872
=============== ===============
See Accompanying Notes to Financial Statements.
1
</TABLE>
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FJS PROPERTIES FUND I, L.P.
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STATEMENTS OF OPERATIONS
[UNAUDITED]
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<TABLE>
Three months ended
March 31,
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1 9 9 6 1 9 9 5
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<S> <C> <C>
Rental Income $ 467,880 $ 462,995
Cost of Rental Income 158,682 143,748
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Gross Profit 309,198 319,247
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Expenses:
Selling, General and Administrative Expenses 153,940 144,349
Depreciation and Amortization 68,307 68,371
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Total Expenses 222,247 212,720
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Operating Income 86,951 106,527
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Other [Income] and Expenses:
Interest Income (5,491) (5,417)
Interest Expense 119,578 120,882
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Total Other Expenses - Net 114,087 115,465
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Net Loss $ (27,136) $ (8,938)
=============== ===============
Loss Per Limited Partnership Unit $ (1.62) $ (.53)
=============== ===============
Distributions Per Limited Partnership Unit $ .34 $ .23
=============== ===============
Weighted Average Number of Limited
Partnership Units Outstanding 16,788 16,788
=============== ===============
See Accompanying Notes to Financial Statements.
2
</TABLE>
<PAGE>
FJS PROPERTIES FUND I, L.P.
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STATEMENT OF PARTNERS' CAPITAL FOR THE THREE MONTHS ENDED MARCH 31, 1996.
[UNAUDITED]
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<TABLE>
Total
General Limited Partners'
Partner Partners Capital
<S> <C> <C> <C>
Partners' Capital - December 31, 1995 $ (1,210,028) $ 3,793,081 $ 2,583,053
Net Loss for the three months
ended March 31, 1996 (272) (26,864) (27,136)
Cash Distributions to Partners (58) (5,708) (5,766)
---------------- --------------- ---------------
Partners' Capital - March 31, 1996
[Unaudited] $ (1,210,358) $ 3,760,509 $ 2,550,151
================ =============== ===============
See Accompanying Notes to Financial Statements.
3
</TABLE>
<PAGE>
FJS PROPERTIES FUND I, L.P.
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STATEMENTS OF CASH FLOWS
[UNAUDITED]
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<TABLE>
Three months ended
March 31,
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1 9 9 6 1 9 9 5
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<S> <C> <C>
Operating Activities:
Net Loss $ (27,136) $ (8,938)
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Adjustments to Reconcile Net Loss to
Net Cash Provided by Operating Activities:
Depreciation 62,205 62,269
Amortization 6,102 6,102
Changes in Assets and Liabilities:
[Increase] Decrease in:
Escrow (60,307) (94,491)
Security Deposits (4,780) (1,969)
Other Current Assets (345) 29,579
Increase [Decrease] in:
Accounts Payable 5,018 (12,678)
Accrued Interest 326 (101)
Other Accrued Expenses 51,320 53,389
Accounts Payable - Related Party (8,698) 225
Tenant Security Deposits 4,780 1,969
Deferred Income -- (400)
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Total Adjustments 55,621 43,894
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Net Cash - Operating Activities 28,485 34,956
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Financing Activities:
Principal Payments on Mortgages (13,980) (12,687)
Cash Distributions to Partners (5,766) (3,901)
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Net Cash - Financing Activities (19,746) (16,588)
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Net Increase in Cash and Cash Equivalents 8,739 18,368
Cash and Cash Equivalents - Beginning of Periods 542,337 574,627
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Cash and Cash Equivalents - End of Periods $ 551,076 $ 592,995
=============== ===============
</TABLE>
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest during the three months ended March 31, 1996 and 1995
was $119,690 and $120,984, respectively.
For purposes of the statement of cash flows, the Company considers all highly
liquid debt instruments purchased with a maturity of three months or less to be
cash equivalents.
See Accompanying Notes to Financial Statements.
4
<PAGE>
FJS PROPERTIES FUND I, L.P.
NOTES TO FINANCIAL STATEMENTS
[UNAUDITED]
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[A] Significant Accounting Policies
Significant accounting policies of FJS Properties Fund I, L.P. are set forth in
the Partnership's Form 10-K for the year ended December 31, 1995, as filed with
the Securities and Exchange Commission.
[B] Basis of Reporting
The balance sheet as of March 31, 1996, the statements of operations for the
three months ended March 31, 1996 and 1995, the statement of partners' capital
for the three months ended March 31, 1996, and the statements of cash flows for
the three months ended March 31, 1996 and 1995 have been prepared by the
Partnership without audit. The accompanying unaudited financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and Rule
10-01 of Regulation S-X. Accordingly, they do not include all of the information
and footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of the managing partner, such statements
include all adjustments [consisting only of normal recurring items] which are
considered necessary for a fair presentation of the financial position of the
Partnership at March 31, 1996, and the results of its operations and cash flows
for the three months then ended. It is suggested that these financial statements
be read in conjunction with Form S-11 filed with the Securities and Exchange
Commission on April 25, 1985 and with the financial statements and notes
contained in the Partnership's Form 10-K for the year ended December 31, 1995.
Certain reclassifications may have been made to the 1995 financial statements to
conform to classifications used in 1996.
5
<PAGE>
Item 2:
FJS PROPERTIES FUND I, L.P.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
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Liquidity and Capital Resources
As of the present date, the Partnership owns and operates one property, the
Pavilion Apartments, and does not intend to acquire any other property.
Cash flow from Pavilion should be sufficient to permit the Partnership to make
the constant monthly payments due prior to maturity on the first mortgage and to
meet its monthly operating expenses. However, should there be a significant
decrease in Pavilion's occupancy or rental rates, there can be no assurance that
the Partnership would be able to obtain sufficient funds to make such payments.
Operations
The Partnership has operated the Pavilion Apartments, located in West Palm
Beach, Florida since January 1985.
The project operated with occupancies around 90% for the first quarter of 1996.
Physical occupancy stands at 89.7% as of May 6, 1996, with 32 vacant apartments
of which 18 have been rented with tenant move-in scheduled during May, and 14
apartments available for lease. Rental income for the three month period ended
March 31, 1996, increased slightly to $467,880 as compared to $462,995 for the
comparable period of the prior year. This increase was attributable to the
increased rental rates enjoyed by the Pavilion Apartments as well as a reduction
in the rental allowances given to tenants, which were offset by increased
vacancies at the project. Cost of rental income, consisting mainly of real
estate taxes, repairs and maintenance and utilities increased from $143,748 to
$158,682 for the comparable three month periods of 1995 and 1996, respectively.
The increase was principally from increased repairs, maintenance and
replacements at the project which reflect the initiation of the
upgrade/rehabilitation program at the Pavilion. This will include pressure
cleaning, recaulking and repainting of the buildings, remarciting of the
swimming pool, reroofing of many of the patio areas at the property and
improvements in various other areas to improve the look and presentation of the
property as required to compete in the local real estate market.
Selling, general and administrative expenses increased to $153,940 as compared
to $144,349 for the comparable three month period of the prior year. This
increase is attributable to increased payroll costs, reflecting additional
leasing staff to provide additional marketing and follow-up for the leasing
program. In addition greater professional fees were accrued reflecting the costs
of the quarterly and annual reporting requirements for the Partnership.
Although rental income showed a slight increase, the increases in the cost of
rental income and selling, general and administrative expenses resulted in
operating income showing a decrease for the comparable three month periods of
1995 and 1996 from $106,527 to $86,951, respectively.
Inflation
As of the present date, inflation has not had a major impact on the operations
of the Partnership.
6
<PAGE>
PART II - OTHER INFORMATION
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Item 6. Exhibits and Reports on Form 8-K
[a] Exhibits as required by Item 601 of Regulation S-K:
None Required
[b] Reports on Form 8-K:
None filed during the quarter for which this report is submitted
7
<PAGE>
SIGNATURES
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
FJS PROPERTIES FUND I, L.P.
Date: May 14, 1996 By: /s/ Andrew C. Alson
-------------------
Andrew C. Alson
(President and Chief Financial Officer)
FJS Properties, Inc.
General Partner
8
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
(THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION FROM THE CONSOLIDATED
BALANCE SHEET AND THE CONSOLIDATED STATEMENTS OF OPERATIONS AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.)
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 551,076
<SECURITIES> 127,147
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,028,384
<PP&E> 10,593,478
<DEPRECIATION> (4,074,028)
<TOTAL-ASSETS> 7,762,737
<CURRENT-LIABILITIES> 371,024
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 2,550,151
<TOTAL-LIABILITY-AND-EQUITY> 7,762,737
<SALES> 467,880
<TOTAL-REVENUES> 467,880
<CGS> 158,682
<TOTAL-COSTS> 222,247
<OTHER-EXPENSES> 5,491
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (119,578)
<INCOME-PRETAX> (27,136)
<INCOME-TAX> 0
<INCOME-CONTINUING> (27,136)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (27,136)
<EPS-PRIMARY> .34
<EPS-DILUTED> .34
</TABLE>
