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 September 30, 2000 Commission File Number 2-93980
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: (732) 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 November 7, 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 September 30, 2000 [Unaudited]
and December 31, 1999.................................... 1
Statements of Operations for the three and nine months ended
September 30, 2000 and 1999 [Unaudited].................. 2
Statements of Partners' Capital (Deficit) for the nine months
ended September 30, 2000 [Unaudited]..................... 3
Statements of Cash Flows for the nine months ended
September 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 1 - FINANCIAL INFORMATION
Item 1: Financial Statements
FJS PROPERTIES FUND I, L.P.
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BALANCE SHEETS
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September 30, December 31,
2 0 0 0 1 9 9 9
[Unaudited]
Assets:
Current Assets:
Cash and Cash Equivalents $ 317,771 $ 217,906
Cash - Escrow 181,949 119,379
Cash - Security Deposits 138,475 132,748
Other Current Assets 43,878 22,268
Total Current Assets 682,073 492,301
Property Investment:
Land 2,296,804 2,296,804
Buildings 6,569,125 6,569,125
Furniture, Fixtures and Improvements 2,680,580 2,376,165
Totals - At Cost 11,546,509 11,242,094
Less: Accumulated Depreciation (5,332,532) (5,073,750)
Property Investment - Net 6,213,977 6,168,344
Other Assets 180,140 250,216
Total Assets $ 7,076,190 $6,910,861
Liabilities and Partners' Capital (Deficit):
Current Liabilities:
Accounts Payable $ 35,109 $ 108,403
Accrued Interest 37,225 37,740
Other Accrued Expenses 139,570 6,755
Due to Related Party 4,630 16,689
Tenant Security Deposits Payable 138,475 132,748
Mortgage Payable - Current Portion 92,531 85,557
Deferred Income - Current Portion 50,090 7,143
Total Current Liabilities 497,630 395,035
Long-Term Liabilities:
Mortgage Payable - Non-Current Portion 4,489,535 4,559,381
Deferred Income - Non-Current Portion 12,500 17,857
Total Long-Term Liabilities 4,502,035 4,577,238
Partners' Capital (Deficit):
General Partner (1,215,093) (1,216,473)
Limited Partners 3,291,618 3,155,061
Total Partners' Capital (Deficit) 2,076,525 1,938,588
Total Liabilities and Partners' Capital (Deficit) $ 7,076,190 $6,910,861
See Accompanying Notes to These Financial Statements.
1
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PART 1 - FINANCIAL INFORMATION
Item 1: Financial Statements
FJS PROPERTIES FUND I, L.P.
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STATEMENTS OF OPERATIONS
[UNAUDITED]
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Three months ended Nine months ended
September 30, September 30,
2 0 0 0 1 9 9 9 2 0 0 0 1 9 9 9
Revenue:
Rental $ 600,939 $ 524,992 $1,799,107 $1,630,301
Interest 2,448 4,215 6,897 13,386
Total Revenue 603,387 529,207 1,806,004 1,643,687
Expenses:
Operating 169,615 204,560 490,512 601,664
General and Administrative 178,957 190,155 562,842 510,573
Interest 112,027 113,766 337,625 342,617
Depreciation and Amortization 94,163 79,542 277,088 231,808
Total Expenses 554,762 588,023 1,668,067 1,686,662
Net Income (Loss) $ 48,625 $ (58,816) $ 137,937 $ (42,975)
Income (Loss) Per Limited
Partnership Unit $ 2.87 $ (3.47) $ 8.13 $ (2.53)
Distributions Per Limited
Partnership Unit $ 0 $ 0 $ 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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PART 1 - FINANCIAL INFORMATION
Item 1: Financial Statements
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 nine months
ended September 30, 2000 1,380 136,557 137,937
Partners' Capital - September 30, 2000
[Unaudited] $(1,215,093) $ 3,291,618 $2,076,525
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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Nine months ended
September 30,
2 0 0 0 1 9 9 9
Operating Activities:
Net Income (Loss) $ 137,937 $ (42,975)
Adjustments to Reconcile Net Income to
Net Cash Provided by Operating Activities:
Depreciation 258,782 213,502
Amortization 18,306 18,306
Deferred Income 37,590 (5,357)
Changes in Assets and Liabilities:
(Increase) in Escrow (62,570) (80,112)
(Increase) in Security Deposits (5,727) (871)
(Increase) in Other Current Assets (21,610) (10,722)
Decrease (Increase) in Other Assets 51,770 (2,289)
Increase in Accounts Payable and Accrued Expenses 59,006 132,132
(Decrease) in Due to Related Party (12,059) (15,197)
Increase in Tenant Security Deposits 5,727 871
Net Cash Provided by Operating Activities 467,152 207,288
Investing Activities:
Capital Expenditures (304,415) (235,271)
Net Cash (used in) Investing Activities (304,415) (235,271)
Financing Activities:
Principal Payments on Mortgages (62,872) (57,981)
Cash Distributions to Partners 0 (75,971)
Net Cash (used in) Financing Activities (62,872) (133,952)
Net Increase [Decrease] in Cash and Cash Equivalents 99,865 (161,935)
Cash and Cash Equivalents - Beginning of Period 217,906 458,782
Cash and Cash Equivalents - End of Period $ 317,771 $ 296,847
Supplemental disclosure of cash flow information:
Interest paid $ 338,140 $ 343,031
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 September 30, 2000, the statements of operations for the
three and nine months ended September 30, 2000 and 1999, the statement of
partners' capital for the nine months ended September 30, 2000, and the
statements of cash flows for the nine months ended September 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 September 30, 2000, and the
results of its operations and cash flows for the three and nine 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.
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FJS PROPERTIES FUND I, L.P.
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 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 agreed to 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 third quarter
of 2000. Physical occupancy stands at 96.8% as of November 6, 2000. There are
presently 10 units vacant (including one model apartment), with seven of those
units rented for November occupancy and two units available for rental.
Rental revenues increased to $600,939 from $524,992, and to $1,799,107 from
$1,630,301 for the three and nine month periods ended September 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
$169,615 from $204,560 and to $490,512 from $601,664 for the comparable three
and nine month periods of 2000 and 1999 respectively. The decrease was
principally from a reduction in amounts expended on landscaping during the first
two quarters, electric expenses, as well as a reduction in real estate taxes as
a result of a reduction in the assessed valuation of the project. These
reductions were offset to some extent by an increase in repairs and maintenance
at the project. In addition the substantial decrease over the nine month period
reflected the substantial replacements completed at the Pavilion Apartments
during the first half of 1999.
6
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FJS PROPERTIES FUND I, L.P.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
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During the third quarter of 2000 the following sums were expended on
capitalizable replacements.
Item Amount spent
Stoves/Refrigerators/Dishwashers $ 6,487.20
Carpeting 17,902.73
Sprinkler System Improvements 5,272.87
Tile Replacement 23,279.51
Roofs 8,487.72
Fire Alarm Boxes Improvements 5,317.21
Sewer Line Replacement 6,054.50
Misc. Interior Improvements 3,267.58
Total $76,069.32
General and administrative expenses were $178,957 and $562,842 as compared to
$190,155 and $510,573 for the comparable three and nine month periods of the
prior year respectively. The increase for the nine month period reflects
increases in professional fees, court costs, security expenses and increased
insurance premiums for the property insurance on the Pavilion Apartments. These
were offset somewhat by a decrease in payroll expenses for the property. The
decrease for the three month period reflects decreased costs for payroll,
commissions and advertising at the project which were offset somewhat by
increased costs for insurance and court costs. The increase in court costs
reflects the higher occupancy rates at the project and increased diligence with
respect to delinquent tenants.
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.
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.
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: November 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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