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Previous: NOONEY INCOME FUND LTD II L P, PRER14A, 1995-08-07 |
Next: MORRISON KNUDSEN CORP, DEF 14A, 1995-08-07 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the quarter ended June 30, Commission file number 0-14510
1995
CEDAR INCOME FUND, LTD.
(Exact name of registrant as specified in its charter)
Iowa 42-1241468
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
4333 Edgewood Road N.E., Cedar 52499
Rapids, IA (Zip Code)
(Address of principal executive
offices)
Registrant's telephone number, including area code: (319) 398-8975
N/A
(Former name, address and fiscal year, if changed since last
report)
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
The number of shares of common stock outstanding at
August 3, 1995 was 2,245,411.
PART I FINANCIAL INFORMATION
Item 1. Financial Statements.
CEDAR INCOME FUND, Ltd.
Balance Sheets
(unaudited)
<TABLE>
<S> <C> <C> <C>
June 30 December 31,
1995 1994 1994
ASSETS
Real estate
Land 4,126,044 4,126,044 4,126,044
Buildings and improvements 14,200,539 14,200,539 14,200,539
Total real estate 18,326,583 18,326,583 18,326,583
Less accumulated depreciation (3,100,148) (2,663,716) (2,881,997)
Total net real estate 15,226,435 15,662,867 15,444,586
Mortgage loan receivable 586,886 593,997 590,834
Total real estate and mortgage 15,813,321 16,256,864 16,035,420
participation
Cash and cash equivalents 624,886 377,386 447,015
Rent and other receivables 83,039 71,682 62,543
Interest receivable 4,035 1,319 6,103
Prepaid expenses 43,432 47,710 53,583
Deferred lease commissions 150,518 190,317 171,264
Taxes held in escrow 37,390 34,829 10,304
TOTAL ASSETS 16,756,621 16,980,107 16,786,232
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Mortgage loan payable 1,454,517 1,472,912 1,463,929
Accounts payable and accrued 168,927 174,604 86,059
expenses
Due to affiliates 25,528 20,212 29,062
Security deposits 68,491 62,084 68,127
Advance rents 41,540 60,169 48,884
TOTAL LIABILITIES 1,759,003 1,789,981 1,696,061
Shareholders' equity
Common stock, $1 par value,
5,020,000 shares authorized 2,245,411 2,245,411 2,245,411
Additional paid-in capital 12,752,207 12,944,715 12,844,760
TOTAL SHAREHOLDERS' EQUITY 14,997,618 15,190,126 15,090,171
TOTAL LIABILITIES AND SHAREHOLDERS 16,756,621 16,980,107 16,786,232
EQUITY
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
CEDAR INCOME FUND, Ltd
Statements of Operations
(unaudited) Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
REVENUE
Rents 599,724 579,377 1,199,911 1,139,487
Interest 21,532 16,226 41,238 31,267
Total revenue 621,256 595,603 1,241,149 1,170,754
EXPENSES
Property expenses:
Real estate taxes 62,363 68,451 115,903 132,273
Wages and salaries 5,237 10,183 9,859 21,783
Repairs and maintenance 103,389 88,697 197,763 145,344
Utilities 29,610 26,949 56,250 56,348
Management fee 29,985 28,969 59,995 56,974
Insurance 3,623 4,677 7,314 9,171
Other 23,363 24,191 45,495 41,861
Total property expenses, excluding 257,570 252,117 492,579 463,754
depreciation
Depreciation 109,063 109,141 218,151 218,281
Total property expenses 366,633 361,258 710,730 682,035
Interest 35,081 35,506 70,273 71,112
Administrative fees 24,825 24,708 49,630 49,364
Directors' fees and expenses 11,233 12,468 22,480 25,714
Other administrative 11,825 14,610 31,507 32,103
Total expenses 449,597 448,550 884,620 860,328
Net earnings 171,659 147,053 356,529 310,426
Net earnings per share .08 .07 .16 .14
Dividends to shareholders 224,541 224,541 449,082 449,082
Dividends to shareholders per share .10 .10 .20 .20
Average number of shares outstanding 2,245,411 2,245,411 2,245,411 2,245,411
</TABLE>
<TABLE>
CEDAR INCOME FUND, Ltd.
Statements of Cash Flows
(unaudited)
<S> <C> <C>
Six Months Ended
June 30,
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES:
Rents collected 1,157,971 1,127,024
Interest received 43,306 34,785
Payments for operating expenses (500,784) (481,198)
Interest paid (68,440) (69,279)
Net cash provided by operating 632,053 611,332
activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal portion of scheduled
mortgage loan collections 3,948 4,247
Security deposits collected, net 364 (2,245)
Net cash provided by investing 4,312 2,002
activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal portion of scheduled
mortgage loan payments (9,412) (8,574)
Dividends paid to shareholders (449,082) (449,082)
Net cash used by financing (458,494) (457,656)
activities
Net increase in cash and cash 177,871 155,678
equivalents.
Cash and cash equivalents at beginning 447,015 221,708
of period
Cash and cash equivalents at end of 624,886 377,386
period
RECONCILIATION OF NET EARNINGS TO NET
CASH PROVIDED BY OPERATING
ACTIVITIES:
Net earnings 356,529 310,426
Add (deduct) reconciling adjustments:
Depreciation 218,151 218,281
Amortization 1,834 1,833
Increase in rent and other (47,582) (33,826)
receivables
Decrease in interest receivable 2,068 3,518
Decrease in prepaid expenses 8,317 11,312
Decrease (increase) in deferred 20,746 (2,862)
lease commissions
Increase in operating accounts
payable,
accrued expenses and due to 79,334 84,686
affiliates
Increase (decrease) in advance rents (7,344) 17,964
Net cash provided by operating 632,053 611,332
activities
</TABLE>
NOTES TO FINANCIAL STATEMENTS
Note 1: Interim financial statements are prepared in accordance
with generally accepted accounting principles and include all
adjustments of a normal recurring nature necessary for a fair
presentation of the financial position and quarterly results.
Interim reports should be read in conjunction with the audited
financial statements and related notes included in the 1994
Annual Report.
<TABLE>
<S> <C>
Note 2: Shareholders' equity, December 31, 1994 15,090,171
Net earnings 356,529
Dividends to shareholders (449,082)
Shareholders' equity, June 30, 1995 14,997,618
</TABLE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
We are pleased to present the second quarter report for Cedar
Income Fund, Ltd. Net earnings for the three and six months
ended June 30, 1995 were $171,659 ($.08 per share) and $356,529
($.16 per share), respectively, compared to $147,053 ($.07 per
share) and $310,426 ($.14 per share) for the same periods in
1994. Funds from operations (earnings from operations plus
depreciation) were $574,680 for the first six months of 1995
compared to $528,707 for the same period in 1994.
The increases in net earnings and funds from operations were
primarily the result of higher revenues. Rental income for the
second quarter of 1995 increased 4% over the prior year (from
$579,377 to $599,724) and 5% year-to-date (from $1,139,487 to
$1,199,911). Rents increased at Broadbent Business Center in
Salt Lake City, Utah due to higher occupancy and rental rates.
Southpoint Parkway Center in Jacksonville, Florida also
experienced higher rents due to stable occupancies and higher
rental rates. As of June 30, 1995, the Company's real estate
portfolio had an overall occupancy rate of 98%.
Total property expenses, excluding depreciation, increased from
$463,754 for the first six months of 1994 to $492,579 for the
same period in 1995, which represented 41% of rental income for
both years, respectively. Higher repairs and maintenance
expenses at Broadbent and Southpoint were the primary cause of
the increase in property expenses. Real estate taxes decreased
primarily as a result of a partial refund of 1994 taxes on
Germantown Square Shopping Center in Louisville, Kentucky.
Wages and salaries were reduced due to a reduction in property
management personnel at Broadbent.
Hewlett Packard Corporation has notified the Company that it
does not intend to renew its lease for 20,400 square feet of
space at Corporate Center East in Bloomington, Illinois when it
expires on September 30, 1995, but has exercised its option to
extend the current lease until November 30, 1995. This lease
represented 11% of the Company's revenue in 1994. The Company
has begun efforts to secure one or more replacement tenants for
this space.
The Company's capital resources consist of its current equity in
real estate investments (current value less mortgage
indebtedness) and a mortgage loan receivable. The Company
maintains its real estate in good condition and provides
adequate insurance coverage. The Company's liquidity at June
30, 1995 is represented by cash and cash equivalents of
$624,886, a mortgage loan participation of $586,886, and cash
flow from operating activities. This liquidity is considered
sufficient to meet current obligations.
On July 20, 1995, the Board of Directors declared a dividend of
$.10 per share payable August 21, 1995 to shareholders of record
on August 8, 1995. The Board of Directors will continue to
consider leasing activity, operating results and financial
condition of the Company in determining future dividends.
For the Board of Directors,
David Blankenship
President
August 3, 1995
SIGNATURE
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.
CEDAR INCOME FUND, LTD.
/s/ Alan F. Fletcher
Alan F. Fletcher
Vice President and Treasurer
(principal financial officer)
/s/ Edward J. Kittleson
Edward J. Kittleson
Controller
(principal accounting officer)
Dated: August 3, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000761648
<NAME> CEDAR INCOME FUND LTD
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-END> JUN-30-1995
<CASH> 624,886
<SECURITIES> 0
<RECEIVABLES> 114,410
<ALLOWANCES> 27,336
<INVENTORY> 0
<CURRENT-ASSETS> 943,300
<PP&E> 18,326,583
<DEPRECIATION> 3,100,148
<TOTAL-ASSETS> 16,756,621
<CURRENT-LIABILITIES> 304,486
<BONDS> 1,454,517
<COMMON> 2,245,411
0
0
<OTHER-SE> 12,752,207
<TOTAL-LIABILITY-AND-EQUITY> 16,756,621
<SALES> 0
<TOTAL-REVENUES> 1,241,149
<CGS> 0
<TOTAL-COSTS> 710,730
<OTHER-EXPENSES> 103,617
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 70,273
<INCOME-PRETAX> 356,529
<INCOME-TAX> 0
<INCOME-CONTINUING> 356,529
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 356,529
<EPS-PRIMARY> .16
<EPS-DILUTED> .16
</TABLE>
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