FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Quarterly Report Under Section 13 or 15(d) of the
Securities Exchange Act of 1934
For Quarter Ended March 31, 1997
Commission File Number: 2-94509
LIF
(Exact name of registrant as specified in its governing instruments)
California 94-2969720
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
P. O. Box 130, Carbondale, Colorado 81623
(Address of principal executive offices)
(970) 963-8007
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Sections 13 or 15(d) of the Securities 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: [ ]
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
LIF
CONSOLIDATED BALANCE SHEETS, MARCH 31, 1997 AND DECEMBER 31, 1996
(Unaudited) (Dollars in thousands)
<CAPTION>
March 31, December 31,
1997 1996
<S> <C> <C>
ASSETS
INVESTMENTS IN REAL ESTATE:
Rental properties $ 11,822 $ 11,598
Accumulated depreciation (2,358) (2,282)
Rental properties - net 9,464 9,316
CASH AND CASH EQUIVALENTS (including
Interest bearing deposits of $261
in 1997 and $282 in 1996) 265 388
OTHER ASSETS:
Accounts receivable 92 9
Prepaid expenses and deposits 63 29
Deferred organization costs and loan costs
(net of accumulated amortization of $181
in 1997 and $174 in 1996) 116 122
Total other assets 271 160
TOTAL $ 10,000 $ 9,864
LIABILITIES AND PARTNERS' EQUITY LIABILITIES:
Notes payable $ 8,075 $ 7,960
Accounts payable 42 29
Other liabilities 213 194
Total liabilities 8,330 8,183
Minority Interest 75 75
PARTNERS' EQUITY 1,595 1,606
TOTAL $ 10,000 $ 9,864
See Financial Notes.
</TABLE>
<PAGE>
LIF
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(Unaudited) (In thousands except per share amounts)
[CAPTION]
1997 1996
[S] [C] [C]
REVENUE:
Rental $ 439 $ 382
Interest 1 11
Total revenue 440 394
EXPENSE:
Interest 160 149
Operating 163 133
Depreciation and amortization 83 84
General and administrative 45 41
Total expense 451 407
NET INCOME (LOSS) $ (11) $ (13)
NET INCOME (LOSS) PER PARTNERSHIP UNIT:
Limited Partners (1) (1)
General Partners 0 0
----- -----
(1) (1)
[/TABLE]
<PAGE>
<TABLE>
LIF
CONSOLIDATED STATEMENTS OF CHANGES IN PARTNERS' EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND
THE YEAR ENDED DECEMBER 31, 1996
(Unaudited)(Dollars in thousands)
<CAPTION>
..LIMITED PARTNERS..
NUMBER OF GENERAL TOTAL
PARTNERSHIP PARTNER PARTNERS'
UNITS AMOUNT AMOUNT DEFICIT
<S> <C> <C> <C> <C>
BALANCE, JANUARY 1, 1996 12,820 $2,087 $ (158) $1,929
Net Loss - 1996 (136) 0 (136)
Net Distribution - 1996 (192) (22) (214)
Net Contribution - 1996 0 27 27
BALANCE, DECEMBER 31, 1996 12,820 $1,759 $ (153) $1,606
Net loss (11) 0 (11)
BALANCE, MARCH 31, 1997 12,820 $1,748 $ (153) $1,595
See Financial Notes.
</TABLE>
<PAGE>
<TABLE>
LIF
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(Unaudited) (Dollars in thousands)
<CAPTION>
1997 1996
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (11) $ (13)
Adjustments to reconcile net increase to net cash
provided by operating activities:
Depreciation and amortization 76 78
Change in operating assets and liabilities:
Increase in other liabilities 19 19
Increase (decrease) in accounts payable 13 (69)
Increase in accounts receivable (83) (8)
Decrease in deferred expenses 7 6
Increase in prepaid expenses (34) (36)
Net cash used in operating activities (13) (23)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (224) (106)
Net cash used in investing activities (224) (106)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Financing 150 0
Payment on notes payable (35) (20)
Net cash provided by financing activities 115 (20)
Decrease in cash and cash equivalents (123) (149)
Cash and cash equivalents at beginning of period 388 655
Cash and cash equivalents at end of period $ 265 $ 506
See Financial Notes.
</TABLE>
<PAGE>
LIF
FINANCIAL NOTES
(Dollars in thousands)
The accompanying unaudited financial statements should be read in
conjunction with the Partnership's 1996 Annual Report. These statements
have been prepared in accordance with the instructions to the Securities
and Exchange Commission Form 10-Q and do not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements.
In the opinion of the general partner, all adjustments (consisting of
normal recurring accruals) considered necessary for a fair presentation
have been included. The results of operations for the three months ended
March 31, 1997 and 1996, are not necessarily indicative of the results
that may be expected for the year ending December 31, 1997.
For purposes of the statement of cash flows, the Partnership considers
all highly liquid investments with a maturity of three months or less at
the time of purchase to be cash equivalent. The Partnership paid
interest of $160 and $149 for the three months ended March 31, 1997 and
1996, respectively.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
INTRODUCTION
LIF (the "Partnership") is a California limited partnership. Operations
commenced in November 1985.
The Partnership currently has an investment in Landsing Private
Partnership-21 ("P-21") which owns one multi-family rental property,
Cattle Creek Development Partners ("CCDP") which owns two retail rental
properties, and Alpine Center Partners ("ACP") which owns one commercial
property. For financial reporting purposes the Partnership's investments
are presented on a consolidated basis.
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 1997, the Partnership's consolidated cash balance totaled
$265,000. Cash not required for current operations is placed in
federally insured financial instruments, certificates of deposit and
money market funds which can be liquidated as needed. It is the
Partnership's intention to maintain adequate cash reserves for its
operations.
During the first quarter of 1997, the Partnership experienced a net
decrease in cash of $123,000. As of March 31, 1997, cash plus short-term
investments totaled $265,000 versus a balance of $388,000 at December 31,
1996 for a net decrease of $123,000. The General Partner expects
Partnership operations to remain stable for the remainder of the year.
The Partnership's investment in Alpine Center Partners has completed
construction of Phase I of its commercial building. Rent-up started
February 1, 1997. Occupancy of this building was 56% at March 31, 1997.
This property, while under construction, was the primary reason for
increases in capital expenditures and notes payable.
RESULTS OF OPERATIONS
The Partnership's operating results for the first quarter of 1997 are
similar to that of 1996. Revenues have increased 11% as compared to
1996. Operating expenses have increased 22% in 1997 as a result of
bringing the new Alpine Center online. Interest expense has increased 7%
from 1996 to 1997 as a result of the additional debt associated with the
new construction of the Alpine Center.
OCCUPANCY
As of March 31, 1997, occupancy at Whistler Point Apartments was 98%.
This occupancy is expected to remain stable through 1997. Occupancy at
properties owned by CCDP and ACP was 88% and 54% respectively, as of
March 31, 1997. Alpine Center is in the process of rent up after new
construction. It is expected that all Partnership properties will
maintain stable occupancy during 1997, with ACP achieving full rent-up by
year end.
DISTRIBUTIONS
No distributions were declared or paid during the first quarter 1997.
INFLATION
The effects of inflation on the Partnership's operations have been no
greater than the effect on the economy as a whole. Because of
competitive conditions, market rate rents may increase or decrease
disproportionately with inflation while property operating costs continue
to follow inflationary trends. Inflationary conditions are not expected
to have a major impact on the Partnership during 1997.
<PAGE>
PART II. OTHER INFORMATION
All items in Part II have been omitted since they are inapplicable or the
answer is negative.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
L I F
Date: May 12, 1997 /s/ Gary K. Barr
Gary K. Barr, President & Director
Landsing Equities Corporation
Managing Partner of the General Partner,
Partners '85
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 265
<SECURITIES> 0
<RECEIVABLES> 92
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 116
<PP&E> 11,822
<DEPRECIATION> 2,358
<TOTAL-ASSETS> 10,000
<CURRENT-LIABILITIES> 255
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 1,670
<TOTAL-LIABILITY-AND-EQUITY> 10,000
<SALES> 0
<TOTAL-REVENUES> 440
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 291
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 160
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (11)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
