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 August 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
ATTN: Andre Anderson 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
August 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 (10,892,035) (10,050,009)
20,442,438 21,284,464
Cash and cash equivalents 2,292,772 2,219,395
Restricted cash 344,212 223,328
Other assets, net of accumulated
amortization of $59,179 in 1995
and $34,969 in 1994 188,930 218,518
Total Assets $ 23,268,352 $ 23,945,705
Liabilities and Partners' Capital
Liabilities:
Mortgage payable $ 6,429,753 $ 6,502,325
Distribution payable 439,974 381,311
Accounts payable and accrued expenses 355,134 293,785
Due to general partners and affiliates 54,367 38,643
Security deposits 136,283 131,189
Total Liabilities 7,415,511 7,347,253
Partners' Capital:
General Partners 185,159 200,071
Limited Partners 15,667,682 16,398,381
Total Partners' Capital 15,852,841 16,598,452
Total Liabilities and
Partners' Capital $ 23,268,352 $ 23,945,705
Consolidated Statement of Partners' Capital
For the nine months ended August 31, 1995
General Limited
Partners Partners Total
Balance at December 1, 1994 $ 200,071 $ 16,398,381 $ 16,598,452
Net income 11,486 562,826 574,312
Cash distributions (26,398) (1,293,525) (1,319,923)
Balance at August 31, 1995 $ 185,159 $ 15,667,682 $ 15,852,841
Consolidated Statements of Operations
Three months ended Nine months ended
August 31, August 31,
Income 1995 1994 1995 1994
Rental $ 1,129,170 $ 1,085,577 $ 3,344,619 $ 3,181,596
Interest 26,845 16,993 84,630 45,150
Total Income 1,156,015 1,102,570 3,429,249 3,226,746
Expenses
Property operating 510,273 418,341 1,516,413 1,443,845
Depreciation and amortization 285,757 290,116 866,236 869,733
Interest 124,896 126,729 376,093 381,488
General and administrative 35,274 30,877 96,195 87,926
Total Expenses 956,200 866,063 2,854,937 2,782,992
Net Income $ 199,815 $ 236,507 $ 574,312 $ 443,754
Net Income Allocated:
To the General Partners $ 3,996 $ 6,179 $ 11,486 $ 15,877
To the Limited Partners 195,819 230,328 562,826 427,877
$ 199,815 $ 236,507 $ 574,312 $ 443,754
Per limited partnership unit
(57,490 outstanding) $ 3.41 $ 4.00 $ 9.79 $ 7.44
Consolidated Statements of Cash Flows
For the nine months ended August 31, 1995 and 1994
Cash Flows from Operating Activities: 1995 1994
Net income $ 574,312 $ 443,754
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 866,236 869,733
Increase (decrease) in cash arising from changes
in operating assets and liabilities:
Fundings to restricted cash (120,884) (134,867)
Other assets 5,378 16,838
Accounts payable and accrued expenses 61,349 66,564
Due to general partners and affiliates 15,724 (1,513)
Security deposits 5,094 11,942
Net cash provided by operating activities 1,407,209 1,272,451
Cash Flows from Investing Activities:
Additions to real estate 0 (39,780)
Net cash used for investing activities 0 (39,780)
Cash Flows from Financing Activities:
Distributions (1,261,260) (2,229,204)
Receipt of deposit on financing 0 278,487
Mortgage fees 0 (41,131)
Mortgage principal payments (72,572) (67,177)
Net cash used for financing activities (1,333,832) (2,059,025)
Net increase (decrease) in cash and cash
equivalents 73,377 (826,354)
Cash and cash equivalents at beginning
of period 2,219,395 2,927,635
Cash and cash equivalents at end
of period $ 2,292,772 $ 2,101,281
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for interest $ 376,093 $ 381,488
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 August 31, 1995 and the results of operations and cash
flows for the nine months ended August 31, 1995 and 1994 and the statement of
changes in the partners' capital for the nine months ended August 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 to 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 August 31, 1995, the Partnership had cash and cash equivalents of $2,292,772
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 $344,212 at August 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 totaled $355,134 at August 31, 1995
compared to $293,785 at November 30,1994. The increase is primarily a result
of timing for the accrual of real estate taxes on the Partnership's properties.
The General Partners declared a cash distribution of $7.50 per Unit for the
quarter ended August 31, 1995 which will be paid to the limited partners on or
about October 16, 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 nine months ended August 31, 1995
generated net income of $199,815 and $574,312, respectively, compared with net
income of $236,507 and $443,754 for the corresponding periods in fiscal 1994.
After adding back depreciation and amortization, both non-cash expenses, and
subtracting mortgage amortization and additions to real estate, operations
generated cash flow of $460,913 and $1,367,976 for the three and nine months
ended August 31, 1995, respectively, compared with cash flow of $464,017 and
$1,206,530 for the corresponding periods in fiscal 1994. The increase in net
income and cash flow for the nine-month period is primarily attributable to
higher rental and interest income. The decrease in net income and cash flow
for the three-month period is primarily attributable to an increase in property
operating expense.
Rental income totaled $1,129,170 and $3,344,619 for the three and nine months
ended August 31, 1995, respectively, compared with $1,085,577 and $3,181,596
for the corresponding periods in fiscal 1994. The increases reflect higher
rental income at all three of the Partnership's properties, due to rental rate
increases instituted over the past year at all three properties and higher
average occupancy at Lakeview Village.
Property operating expenses totaled $510,273 and $1,516,413 for the three and
nine months ended August 31, 1995 compared with $418,341 and $1,443,845 for the
corresponding periods in fiscal 1994. The increase is primarily attributable
to roof repairs at The Hamptons at Quail Hollow, and carpeting and floor tiling
expenses incurred at Lakeview Village.
For the three and nine months ended August 31, 1995 and 1994, average occupancy
levels at each of the properties were as follows:
Three Months Ended Nine Months Ended
August 31, August 31,
Property 1995 1994 1995 1994
Canterbury Park 96% 96% 96% 96%
The Hamptons at Quail Hollow 96% 97% 96% 97%
Lakeview Village 95% 92% 94% 92%
PART II OTHER INFORMATION
Items 1-5 Not Applicable
Item 6 Exhibits and Reports on Form 8-K.
(a) Exhibits
(27) Financial Data Schedule
(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: October 16, 1995
BY: /S/ Paul L. Abbott
Name: Paul L. Abbott
Title: Director, President,
Chief Executive Officer
and Chief Financial Officer
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<FISCAL-YEAR-END> NOV-30-1995
<PERIOD-END> AUG-31-1995
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