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 May 31, 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
Attention: Andre Anderson
(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
May 31, 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 (10,614,348) (10,050,009)
20,720,125 21,284,464
Cash and cash equivalents 2,199,410 2,219,395
Restricted cash 301,434 223,328
Other assets, net of accumulated
amortization of $51,109 in 1995
and $34,969 in 1994 198,345 218,518
Total Assets $ 23,419,314 $ 23,945,705
Liabilities and Partners' Capital
Liabilities:
Mortgage payable $ 6,454,412 $ 6,502,325
Distribution payable 439,974 381,311
Accounts payable and
accrued expenses 255,138 293,785
Due to general partners
and affiliates 41,617 38,643
Security deposits 135,173 131,189
Total Liabilities 7,326,314 7,347,253
Partners' Capital:
General Partners 189,962 200,071
Limited Partners 15,903,038 16,398,381
Total Partners' Capital 16,093,000 16,598,452
Total Liabilities and
Partners' Capital $ 23,419,314 $ 23,945,705
Consolidated Statement of Partners' Capital
For the six months ended May 31, 1995
General Limited
Partners Partners Total
Balance at December 1, 1994 $ 200,071 $ 16,398,381 $ 16,598,452
Net income 7,490 367,007 374,497
Cash distributions (17,599) (862,350) (879,949)
Balance at May 31, 1995 $ 189,962 $ 15,903,038 $ 16,093,000
Consolidated Statements of Operations
Three months ended Six months ended
May 31, May 31,
Income 1995 1994 1995 1994
Rental $ 1,116,752 $ 1,033,372 $ 2,215,449 $ 2,096,019
Interest 29,674 13,055 57,785 28,157
Total Income 1,146,426 1,046,427 2,273,234 2,124,176
Expenses
Property operating 506,595 495,950 1,006,140 1,025,504
Depreciation and amortization 290,240 289,866 580,479 579,617
Interest 125,367 127,165 251,197 254,759
General and administrative 28,252 27,488 60,921 57,049
Total Expenses 950,454 940,469 1,898,737 1,916,929
Net Income $ 195,972 $ 105,958 $ 374,497 $ 207,247
Net Income Allocated:
To the General Partners $ 3,920 $ 4,872 $ 7,490 $ 9,698
To the Limited Partners 192,052 101,086 367,007 197,549
$ 195,972 $ 105,958 $ 374,497 $ 207,247
Per limited partnership unit
(57,490 outstanding) $ 3.34 $ 1.76 $ 6.38 $ 3.44
Consolidated Statements of Cash Flows
For the six months ended May 31, 1995 and 1994
Cash Flows from Operating Activities: 1995 1994
Net income $ 374,497 $ 207,247
Adjustments to reconcile net income
to net cash provided by
operating activities:
Depreciation and amortization 580,479 579,617
Increase (decrease) in cash arising
from changes in operating
assets and liabilities:
Fundings to restricted cash (78,106) (89,758)
Other assets 4,033 16,839
Accounts payable and accrued expenses (38,647) (20,692)
Due to general partners and affiliates 2,974 (5,842)
Security deposits 3,984 9,845
Net cash provided by operating activities 849,214 697,256
Cash Flows from Financing Activities:
Distributions (821,286) (1,847,893)
Receipt of deposit on financing 0 278,487
Mortgage fees 0 (40,773)
Mortgage principal payments (47,913) (44,351)
Net cash used for financing activities (869,199) (1,654,530)
Net decrease in cash and cash equivalents (19,985) (957,274)
Cash and cash equivalents at
beginning of period 2,219,395 2,927,635
Cash and cash equivalents at
end of period $ 2,199,410 $ 1,970,361
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for interest $ 251,197 $ 254,759
Notes to the Consolidated Financial Statements
The unaudited interim consolidated financial statements should be read in
conjunction with the Partnership's annual 1994 audited consolidated financial
statements within Form 10-K.
The unaudited consolidated financial statements include all adjustments which
are, in the opinion of management, necessary to present a fair statement of
financial position as of May 31, 1995 and the results of operations and cash
flows for the six months ended May 31, 1995 and 1994 and the statement of
changes in the partners' capital for the six months ended May 31, 1995.
Results of operations for the periods are not necessarily indicative of the
results to be expected for the full year.
No significant events have occurred subsequent for fiscal year 1994, which
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 May 31, 1995, the Partnership had cash and cash equivalents of $2,199,410
which were invested in unaffiliated money market funds, compared with
$2,219,395 at November 30, 1994. The Partnership also maintains a restricted
cash balance which totaled $301,434 at May 31, 1995 compared with $223,328 at
November 30, 1994. 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.
Accounts payable and accrued expenses were $255,138 at May 31, 1995 compared to
$293,785 at fiscal year end 1994. The decrease is primarily a result of the
payment of real estate taxes on two of the Partnership's properties in January
and the payment of 1994 audit expenses in the first quarter of 1995.
The General Partners declared a cash distribution of $7.50 per Unit for the
quarter ended May 31, 1995 which will be paid to the limited partners on or
about July 17, 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 and six months ended May 31, 1995
generated net income of $195,972 and $374,497, respectively, compared with net
income of $105,958 and $207,247 for the corresponding periods in fiscal 1994.
After adding back depreciation and amortization, both non-cash expenses, and
subtracting mortgage amortization, operations generated cash flow of $462,024
and $907,063 for the three and six months ended May 31, 1995, respectively,
compared with cash flow of $373,434 and $742,513 for the corresponding periods
in fiscal 1994. The increase in net income and cash flow is primarily
attributable to higher rental income and, for the six month period, a decrease
in property operating expenses.
Rental income totaled $1,116,752 and $2,215,449 for the three and six months
ended May 31, 1995, respectively, compared with $1,033,372 and $2,096,019 for
the corresponding periods in fiscal 1994. The increases reflect 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.
Rental income also increased due to significantly higher average occupancy at
Lakeview Village from the second quarter of 1994 during which a number of
leases had expired.
Property operating expenses totaled $506,595 and $1,006,140 for the three and
six months ended May 31, 1995 compared with $495,950 and $1,025,504 for the
corresponding periods in fiscal 1994. The increase for the three-month period
is primarily attributable to repair and maintenance expenses incurred at
Canterbury Park and The Hamptons at Quail Hollow. The decrease for the
six-month period is primarily attributable to lower rental administration costs
at all three of the properties and lower repair and maintenance expenses at
Lakeview Village.
For the three and six months ended May 31, 1995 and 1994, average occupancy
levels at each of the properties were as follows:
Three Months Ended Six Months Ended
May 31, May 31,
Property 1995 1994 1995 1994
Canterbury Park 95% 95% 96% 97%
The Hamptons at Quail Hollow 97% 98% 96% 97%
Lakeview Village 95% 89% 94% 90%
PART II OTHER INFORMATION
Items 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: July 14, 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> 6-MOS
<FISCAL-YEAR-END> NOV-30-1995
<PERIOD-END> MAY-31-1995
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