UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended February 28, 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: 0-14341
HUTTON/CONAM REALTY INVESTORS 5
(Exact name of registrant as specified in its charter)
California 11-2712111
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3 World Financial Center, 29th Floor, New York, NY 10285
(Address of principal executive offices) (Zip Code)
(212) 526-3237
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (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
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
Consolidated Balance Sheets
February 28, November 30,
Assets 1995 1994
Investments in real estate:
Land $ 4,941,450 $ 4,941,450
Buildings and improvements 26,393,023 26,393,023
31,334,473 31,334,473
Less- accumulated depreciation (10,332,178) (10,050,009)
21,002,295 21,284,464
Cash and cash equivalents 2,146,043 2,219,395
Restricted cash 266,032 223,328
Other assets, net of accumulated amortization of
$43,039 in 1995 and $34,969 in 1994 227,638 218,518
Total Assets $ 23,642,008 $ 23,945,705
Liabilities and Partners' Capital
Liabilities:
Mortgage payable $ 6,478,600 $ 6,502,325
Distribution payable 439,975 381,311
Accounts payable and accrued expenses 212,531 293,785
Due to general partners and affiliates 41,041 38,643
Security deposits 132,859 131,189
Total Liabilities 7,305,006 7,347,253
Partners' Capital:
General Partners 194,841 200,071
Limited Partners 16,142,161 16,398,381
Total Partners' Capital 16,337,002 16,598,452
Total Liabilities and Partners' Capital $ 23,642,008 $ 23,945,705
Consolidated Statement of Partners' Capital
For the three months ended February 28, 1995
General Limited
Partners Partners Total
Balance at December 1, 1994 $ 200,071 $ 16,398,381 $ 16,598,452
Net income 3,570 174,955 178,525
Cash distributions (8,800) (431,175) (439,975)
Balance at February 28, 1995 $ 194,841 $ 16,142,161 $ 16,337,002
Consolidated Statements of Operations
For the three months ended February 28, 1995 and 1994
Income 1995 1994
Rental $ 1,098,697 $ 1,062,647
Interest 28,111 15,102
Total Income 1,126,808 1,077,749
Expenses
Property operating 499,545 529,554
Depreciation and amortization 290,239 289,751
Interest 125,830 127,594
General and administrative 32,669 29,561
Total Expenses 948,283 976,460
Net Income $ 178,525 $ 101,289
Net Income Allocated:
To the General Partners $ 3,570 $ 4,826
To the Limited Partners 174,955 96,463
$ 178,525 $ 101,289
Per limited partnership unit
(57,490 outstanding) $ 3.04 $ 1.68
Consolidated Statements of Cash Flows
For the three months ended February 28, 1995 and 1994
Cash Flows from Operating Activities: 1995 1994
Net income $ 178,525 $ 101,289
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation and amortization 290,239 289,751
Increase (decrease) in cash arising
from changes in operating assets
and liabilities:
Fundings to restricted cash (42,704) (44,619)
Other assets (17,190) 1,819
Accounts payable and accrued expenses (81,254) (44,358)
Due to general partners and affiliates 2,398 (1,790)
Security deposits 1,670 (1,017)
Net cash provided by operating activities 331,684 301,075
Cash Flows from Financing Activities:
Distributions (381,311) (1,466,582)
Receipt of deposit on financing -- 80,488
Mortgage fees -- (39,124)
Mortgage principal payments (23,725) (21,961)
Net cash used for financing activities (405,036) (1,447,179)
Net decrease in cash and cash equivalents (73,352) (1,146,104)
Cash and cash equivalents at
beginning of period 2,219,395 2,927,635
Cash and cash equivalents at end of period $ 2,146,043 $ 1,781,531
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for interest $ 125,830 $ 127,594
Notes to the Consolidated Financial Statements
The unaudited interim financial statements should be read in conjunction with
the Partnership's annual 1994 audited financial statements included in its
Annual Report on Form 10-K for the fiscal year ended November 30, 1994.
The unaudited financial statements include all adjustments consisting of only
normal recurring accruals which are, in the opinion of management, necessary to
present a fair statement of financial position as of February 28, 1995, the
results of operations for the three months then ended and the changes in
partners' capital and cash flows for the three months then ended. Results of
operations for the period are not necessarily indicative of the results to be
expected for the full year.
No significant events have occurred or material contingencies exist which would
require disclosure in this interim report per Regulation S-X, Rule 10-01,
Paragraph (a)(5).
Part I, Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Liquidity and Capital Resources
At February 28, 1995, the Partnership had cash and cash equivalents of
$2,146,043 which were invested in unaffiliated money market funds. The
Partnership also maintains a restricted cash balance which totaled $266,032 at
February 28, 1995. Restricted cash represents escrows for insurance and real
estate taxes required under the terms of the mortgage loan for the Lakeview
Village property. The Partnership expects sufficient cash to be generated from
operations to meet its current operating expenses.
The General Partners declared a cash distribution of $7.50 per Unit for the
quarter ended February 28, 1995 which will be paid to investors on or about
April 18, 1995. The level and timing of any future cash distributions will be
reviewed and determined on a quarterly basis.
Results of Operations
Partnership operations for the three months ended February 28, 1995 generated
net income of $178,525 compared with net income of $101,289 for the
corresponding period in fiscal 1994. After adding back depreciation and
amortization, both non-cash expenses, and subtracting mortgage amortization,
operations generated cash flow of $445,039 for the three months ended February
28, 1995 compared with cash flow of $369,079 for the corresponding period in
fiscal 1994. The increase in net income and cash flow is primarily
attributable to higher rental income and a decrease in property operating
expenses.
Rental income totaled $1,098,697 for the three months ended February 28, 1995
compared with $1,062,647 for the corresponding period in fiscal 1994. The
increase reflects higher rental income at all three of the Partnership's
properties, especially at The Hamptons at Quail Hollow, due to rental rate
increases instituted over the past year, partially offset by lower occupancy
rates. Interest income totaled $28,111 for the three months ended February 28,
1995, compared with $15,102 for the corresponding period in fiscal 1994. The
increase is due to higher rates of interest earned on cash balances.
Property operating expenses totaled $499,545 for the three months ended
February 28, 1995 compared with $529,554 for the corresponding period in fiscal
1994. The decrease is primarily attributable to reduced administrative
expenses at Canterbury Park, salary and advertising expenses at The Hamptons at
Quail Hollow, and expenditures for routine property upgrades at Lakeview
Village.
Three Months Ended
February 28,
Property 1995 1994
Canterbury Park 97% 98%
The Hamptons at Quail Hollow 95% 97%
Lakeview Village 92% 92%
PART II OTHER INFORMATION
Item 1-5 Not applicable
Item 6 Exhibits and Reports on Form 8-K.
(a) Exhibits: None
(b) Reports on Form 8-K - No reports on Form 8-K were filed
during the three month period covered by this report.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
HUTTON/CONAM REALTY INVESTORS 5
BY: RI 5 Real Estate Services, Inc.
General Partner
Dated: April 13, 1995
BY: /S/ Paul L. Abbott
Name: Paul L. Abbott
Title: Director, President, Chief Executive Officer
and Chief Financial Officer
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<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> NOV-30-1995
<PERIOD-END> FEB-28-1995
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