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 June 30, 2000 Commission File Number 0-15755
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FJS PROPERTIES FUND I, L.P.
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(Exact name of registrant as specified in its charter)
Delaware 13-3252067
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(State or other jurisdiction of (I.R.S. Employer
-
incorporation or organization) Identification No.)
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264 Route 537 East
Colts Neck, NJ 07722
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(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (732) 542-9209
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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
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Authorized 100,000 limited partnership interests of which 16,788 have been sold
as of August 5, 2000.
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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 June 30, 2000 [Unaudited]
and December 31, 1999.................................... 1
Statement of Operations for the three and six months ended
June 30, 2000 and 1999 [Unaudited]....................... 2
Statement of Partners' Capital for the six months
ended June 30, 2000 [Unaudited].......................... 3
Statements of Cash Flows for the six months ended
June 30, 2000 and 1999 [Unaudited]....................... 4
Notes to Financial Statements [Unaudited]................ 5
Item 2: Management's Discussion and Analysis of Financial Condition
and Results of Operations................................ 6
Part III: OTHER INFORMATION
Item 6: Exhibits and Reports on Form 8-K......................... 8
Signature......................................................... 9
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PART I - FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
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FJS PROPERTIES FUND I, L.P.
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BALANCE SHEETS
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June 30, December 31,
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2 0 0 0 1 9 9 9
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[Unaudited]
Assets:
Current Assets:
Cash and Cash Equivalents $ 297,652 $ 217,906
Cash - Escrow 116,976 119,379
Cash - Security Deposits 139,162 132,748
Other Current Assets 57,064 22,268
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Total Current Assets 610,854 492,301
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Property Investment:
Land 2,296,804 2,296,804
Buildings 6,569,125 6,569,125
Furniture, Fixtures and Improvements 2,604,511 2,376,165
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Totals - At Cost 11,470,440 11,242,094
Less: Accumulated Depreciation (5,244,471) (5,073,750)
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Property Investment - Net 6,225,969 6,168,344
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Other Assets 166,860 250,216
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Total Assets $ 7,003,683 $6,910,861
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Liabilities and Partners' Capital (Deficit):
Current Liabilities:
Accounts Payable $ 74,785 $ 108,403
Accrued Interest 37,401 37,740
Other Accrued Expenses 94,918 6,755
Due to Related Party 4,554 16,689
Tenant Security Deposits Payable 139,162 132,748
Mortgage Payable - Current Portion 90,150 85,557
Deferred Income - Current Portion 7,143 7,143
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Total Current Liabilities 448,113 395,035
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Long-Term Liabilities:
Mortgage Payable - Non-Current Portion 4,513,384 4,559,381
Deferred Income - Non-Current Portion 14,286 17,857
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Total Long-Term Liabilities 4,527,670 4,577,238
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Partners' Capital (deficit):
General Partner (1,215,580) (1,216,473)
Limited Partners 3,243,480 3,155,061
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Total Partners' Capital (deficit) 2,027,900 1,938,588
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Total Liabilities and Partners' Capital (deficit) $ 7,003,683 $6,910,861
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See Accompanying Notes to These Financial Statements.
1
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FJS PROPERTIES FUND I, L.P.
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STATEMENTS OF OPERATIONS
[UNAUDITED]
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Three months ended Six months ended
June 30, June 30,
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2 0 0 0 1 9 9 9 2 0 0 0 1 9 9 9
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Revenue:
Rental $ 617,048 $ 561,425 $1,198,168 $1,105,308
Interest 2,000 4,371 4,449 9,171
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Total Revenue 619,048 565,796 1,202,617 1,114,479
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Expenses:
Operating 172,005 199,714 320,897 397,103
General and administrative 198,161 162,446 383,885 320,418
Interest 112,546 114,192 225,598 228,850
Depreciation and amortization 92,923 76,927 182,925 152,267
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Total Expenses 575,635 553,279 1,113,305 1,098,638
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Net Income 43,413 12,517 89,312 15,841
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Income Per Limited Partnership
Unit $ 2.56 $ .74 $ 5.27 $ .94
========= ========= ========== ==========
Distributions Per Limited
Partnership Unit. $ 0 $ 2.20 $ 0 $ 4.48
Weighted Average Number of Limited
Partnership Units Outstanding 16,788 16,788 16,788 16,788
See Accompanying Notes to These Financial Statements.
2
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FJS PROPERTIES FUND I, L.P.
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STATEMENT OF PARTNERS' CAPITAL
[UNAUDITED]
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Total
General Limited Partners'
Partner Partners Capital
Partners' Capital - December 31, 1999 $(1,216,473) $ 3,155,061 $1,938,588
Net Income for the six months
ended June 30, 2000 893 88,419 89,312
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Partners' Capital - June 30, 2000
[Unaudited] $(1,215,580) $ 3,243,480 $2,027,900
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See Accompanying Notes to These Financial Statements.
3
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FJS PROPERTIES FUND I, L.P.
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STATEMENTS OF CASH FLOWS
[UNAUDITED]
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Six months ended
June 30,
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2 0 0 0 1 9 9 9
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Operating activities:
Net income $ 89,312 $ 15,841
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 170,721 140,063
Amortization 12,204 12,204
Deferred Income (3,571) (3,571)
Changes in Assets and Liabilities:
Decrease (Increase) in escrow 2,403 (11,394)
(Increase) in security deposits (6,414) (3,196)
(Increase) in other current assets (34,796) (25,956)
Decrease (increase) in other assets 71,152 (1,542)
Increase in accounts payable
and accrued expenses 54,206 86,583
(Decrease) in due to related party (12,135) (15,189)
Increase in tenant security deposits 6,414 3,196
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Net Cash Provided by Operating Activities 349,496 197,039
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Investing Activities:
Capital Expenditures (228,346) (104,045)
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Net Cash (used in) Investing Activities (228,346) (104,045)
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Financing Activities:
Principal Payments on Mortgages (41,404) (38,183)
Cash Distributions to Partners 0 (75,970)
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Net cash (used in) Financing Activities (41,404) (114,153)
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Net increase [decrease] in cash and cash equivalents 79,746 (21,159)
Cash and Cash Equivalents - Beginning of Period 217,906 458,782
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Cash and Cash Equivalents - End of Period $ 297,652 $ 437,623
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Supplemental disclosure of cash flow information:
Interest paid $ 225,937 $ 229,157
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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 These Financial Statements.
4
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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, 1999, as filed with
the Securities and Exchange Commission.
[B] Basis of Reporting
The balance sheet as of June 30, 2000, the statements of operations for the
three and six months ended June 30, 2000 and 1999, the statement of partners'
capital for the six months ended June 30, 2000, and the statements of cash flows
for the six months ended June 30, 2000 and 1999 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 June 30, 2000, 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, 1999.
5
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FJS PROPERTIES FUND I, L.P.
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Item 2. 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.
The holder of the first mortgage on the Pavilion Apartments has agreed to the
withdrawal of $59,675 from an escrow account held by the first mortgagee. These
funds are intended to be utilized for capital improvements at the Pavilion
Apartments, in particular, among other items, for roof repairs that are needed
at the property. $59,675 was disbursed from the escrow account to the
Partnership on May 22, 2000. The Partnership will reestablish the escrow account
with payments of $5,000 per month commencing July 2000 and continuing monthly
for twelve months. It is anticipated that cash flow from the Pavilion Apartments
will be sufficient 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 in the mid-90% range for the second
quarter of 2000. Physical occupancy stands at 98.7% as of August 4, 2000. There
are presently 4 units vacant (including one model apartment), with two of those
units rented for August occupancy and one unit available for rental.
Rental revenues increased to $617,048 from $561,425, and to $1,198,168 from
$1,105,308 for the three and six month periods ended June 30, 2000 as compared
to the comparable periods of the prior year. These increases were attributable
to the increased rental rates enjoyed by the Pavilion Apartments as well as a
reduction in vacancies at the project. Operating expenses, consisting mainly of
real estate taxes, repairs and maintenance and utilities decreased to $172,005
from $199,714 and to $320,897 from $397,103 for the comparable three and six
month periods of 2000 and 1999 respectively. The decrease was principally from a
reduction in amounts expended on landscaping, water and sewer charges and
sanitation expenses, as well as a reduction in real estate taxes as a result of
a reduction in the assessed valuation of the project. A reduction in amounts
expensed for replacements was offset by an increase in repairs and maintenance
at the project. In addition there was a reduction in amounts paid for electric
expense during the second quarter of the year, resulting from overpayments
during the first quarter of 2000 which were credited to the second quarter
expenses.
6
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FJS PROPERTIES FUND I, L.P.
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Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
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During the second quarter of 2000 the following sums were expended on
capitalizable replacements.
Item Amount spent
Stoves/Refrigerators/Dishwashers $ 27,506.90
Carpeting $ 26,947.63
Carpet Machine $ 2,326.70
Tile Replacement $ 19,581.33
Roofs $ 19,500.00
Sewer Line Replacement $ 3,948.93
Misc. Interior Improvements $ 18,606.73
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Total: $ 118,418.22
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General and administrative expenses increased to $198,161 and $383,885 as
compared to $162,446 and $320,418 for the comparable three and six month periods
of the prior year respectively. This reflects increases in court costs and
eviction expenses as well as real estate commissions for tenant referrals and
security expenses, as well as increases in professional fees incurred.
INFLATION
As of the present date, inflation has not had a major impact on the operations
of the Partnership.
7
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FJS PROPERTIES FUND I, L.P.
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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 From 8-K:
None filed during the quarter for which this report is submitted.
8
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FJS PROPERTIES FUND I, L.P.
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SIGNATURE
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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: August 7, 2000 By: /s/ Andrew C. Alson
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Andrew C. Alson
(President and Chief Financial Officer)
FJS Properties, Inc.
General Partner
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