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Previous: NUVEEN TAX EXEMPT UNIT TRUST STATE SERIES 166, 497, 1996-05-10 |
Next: MICROTEK MEDICAL INC, SC 13D, 1996-05-10 |
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 March 31, 1996 Commission file number 0-14510
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 May 10, 1996 was 2,245,411.
PART I FINANCIAL INFORMATION
Item 1. Financial Statements.
CEDAR INCOME FUND, Ltd.
Balance Sheets
(unaudited)
<TABLE>
March 31 December 31,
1996 1995 1995
<S> <C> <C> <C>
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
18,326,583 18,326,583 18,326,583
Less accumulated depreciation (3,427,922) (2,991,085) (3,318,273)
14,898,661 15,335,498 15,008,310
Mortgage loan receivable 580,643 588,881 582,769
15,479,304 15,924,379 15,591,079
Cash and cash equivalents 845,020 453,478 772,144
Rent and other receivables 110,962 127,416 80,213
Interest receivable 3,992 6,676 4,007
Prepaid expenses 34,183 39,199 44,275
Deferred lease commissions 119,005 158,396 114,807
Taxes held in escrow 22,556 23,847 3,580
Due from affiliates -- 42,440 --
TOTAL ASSETS 16,615,022 16,775,831 16,610,105
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Mortgage loan payable 1,439,547 1,459,278 1,444,654
Accounts payable and accrued expenses 157,305 139,892 99,673
Due to affiliates 32,136 -- 28,762
Security deposits 69,030 69,224 66,869
Advance rents 13,896 56,937 8,519
TOTAL LIABILITIES 1,711,914 1,725,331 1,648,477
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 12,657,697 12,805,089 12,716,217
TOTAL SHAREHOLDERS' EQUITY 14,903,108 15,050,500 14,961,628
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 16,615,022 16,775,831 16,610,105
</TABLE>
<TABLE>
CEDAR INCOME FUND, Ltd.
Statements of Operation
(unaudited) Three Months Ended
March 31,
<S> <C> <C>
1996 1995
REVENUE
Rents 559,047 600,187
Interest 23,245 19,706
TOTAL REVENUE 582,292 619,893
EXPENSES
Property expenses:
Real estate taxes 62,723 53,540
Wages and salaries 5,356 4,622
Repairs and maintenance 56,457 94,374
Utilities 34,222 26,640
Management fee 27,953 30,010
Insurance 4,311 3,691
Other 23,804 22,132
Property expenses, excluding depreciation 214,826 235,009
Depreciation 109,649 109,088
Total property expenses 324,475 344,097
Interest 34,736 35,192
Administrative fees 24,975 24,805
Directors' fees and expenses 11,144 11,247
Other administrative 20,941 19,682
TOTAL EXPENSES 416,271 435,023
Net earnings 166,021 184,870
Net earnings per share .07 .08
Dividends to shareholders 224,541 224,541
Dividends to shareholders per share .10 .10
Average number of shares outstanding 2,245,411 2,245,411
</TABLE>
<TABLE>
CEDAR INCOME FUND, Ltd.
Statements of Cash Flows
(unaudited)
Three Months Ended
March 31,
1996 1995
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Rents collected 533,684 529,267
Interest received 23,260 19,133
Payments for operating expenses (224,887) (281,520)
Interest paid (33,819) (34,275)
Net cash provided by operating activities 298,238 232,605
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal portion of scheduled
mortgage loan collections 2,126 1,953
Security deposits collected, net 2,160 1,097
Net cash provided by investing activities 4,286 3,050
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal portion of scheduled
mortgage loan payments (5,107) (4,651)
Dividends paid to shareholders (224,541) (224,541)
Net cash used by financing activities (229,648) (229,192)
Net increase in cash and cash equivalents. 72,876 6,463
Cash and cash equivalents at beginning of period 772,144 447,015
Cash and cash equivalents at end of period 845,020 453,478
RECONCILIATION OF NET EARNINGS TO NET
CASH PROVIDED BY OPERATING ACTIVITIES:
Net earnings 166,021 184,870
Add (deduct) reconciling adjustments:
Depreciation 109,649 109,088
Amortization 917 917
Increase in rent and other receivables (49,725) (78,416)
Decrease (increase) in interest receivable 15 (573)
Decrease in prepaid expenses 9,175 13,467
Decrease (increase) in deferred lease commissions (4,198) 12,868
Increase in due from affiliates -- (42,440)
Increase in operating accounts payable,
accrued expenses and due to affiliates 61,007 24,771
Increase in advance rents 5,377 8,053
Net cash provided by operating activities 298,238 232,605
</TABLE>
NOTES TO FINANCIAL STATEMENTS
Note 1: The unaudited 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 1995 Annual Report.
<TABLE>
<S> <C>
Note 2: Shareholders' equity, December 31, 1995 14,961,628
Net earnings 166,021
Dividends to shareholders (224,541)
Shareholders' equity, March 31, 1996 14,903,108
</TABLE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
We are pleased to present the first quarter report for Cedar
Income Fund, Ltd. Net earnings for the three months ended March
31, 1996 were $166,021 ($.07 per share) compared to $184,870
($.08 per share) for the same period in 1995. Funds from
operations (earnings from operations plus depreciation) were
$275,670 for the first three month of 1996 compared to $293,958
for the same period a year ago.
Net earnings and funds from operations were lower in 1996
primarily due to the Hewlett Packard Corporation vacating 20,400
square feet of space at Corporate Center East in Bloomington,
Illinois when its lease expired on December 31, 1995. The
Company is in the process of obtaining one or more replacement
tenants for this space. Despite Hewlett Packard vacating its
space, the Company's real estate portfolio had an overall
occupancy rate of 90% at March 31, 1996.
Rental income for the first quarter was $559,047 compared to
$600,187 for the first quarter in 1995. The decrease in rental
income is due to Corporate Center East, where Hewlett Packard
contributed approximately $73,000 in rents during the first
quarter of 1995. This decrease was offset by rents increasing
at the remaining properties. Rents increased by 8% at Broadbent
Business Center in Salt Lake City, Utah and by 13% at Germantown
Square in Louisville, Kentucky as base rents and expense
recoveries from tenants increased at these properties. Rents at
Southpoint Parkway Center in Jacksonville, Florida increased
slightly.
Total property expenses, excluding depreciation, decreased from
39% of rental income in 1995 to 38% in 1996. Repairs and
maintenance decreased in the first quarter of 1996 compared to
1995 primarily due to tenant remodeling and other expenses
incurred in 1995 that were not required this year. The increase
in utilities is partially attributed to Hewlett Packard vacating
their space, since they were responsible for their own
utilities. This expense is now the Company's.
Capital resources of the Company consist of equity in real
estate investments and a mortgage loan receivable. The company
maintains its real estate in good condition and provides
adequate insurance coverage. The Company's liquidity at March
31, 1996 is represented by cash and cash equivalents of
$845,020, a mortgage loan participation of $580,643 and cash
flow from operating activities. This liquidity is considered
sufficient to meet current obligations.
The Board of Directors declared a dividend of $.10 per share
payable May 20, 1996 to shareholders of record May 10, 1996.
The Board of Directors will continue to consider leasing
activity, operating results and the financial condition of the
Company in determining future dividends.
PART II OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders.
At the Company's annual meeting of shareholders on April 30,
1996, 61% of the Company's outstanding shares were represented
(in person or by proxy). All five incumbent Directors were re-
elected to the Board of Directors, with each receiving at least
97% of the vote for the shares represented. The vote tabulation
for each Director was as follows:
<TABLE>
<S> <C> <C>
Director Votes for Votes Withheld
Patrick E. Falconio 1,339,172 38,753
Edwin L. Ingraham 1,337,335 40,590
James C. Kafes 1,338,633 39,292
Edwin B. Lancaster 1,338,142 39,783
Alex A. Meyer 1,337,904 40,021
</TABLE>
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/ Roger L. Schulz
Roger L. Schulz
Controller
(principal accounting officer)
Dated: May 10, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000761648
<NAME> CEDAR INCOME FUND LTD
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1996
<CASH> 845,020
<SECURITIES> 0
<RECEIVABLES> 128,621
<ALLOWANCES> 17,659
<INVENTORY> 0
<CURRENT-ASSETS> 1,113,162
<PP&E> 18,326,583
<DEPRECIATION> 3,427,922
<TOTAL-ASSETS> 16,615,022
<CURRENT-LIABILITIES> 272,367
<BONDS> 1,439,547
<COMMON> 2,245,411
0
0
<OTHER-SE> 12,657,697
<TOTAL-LIABILITY-AND-EQUITY> 16,615,022
<SALES> 0
<TOTAL-REVENUES> 582,292
<CGS> 0
<TOTAL-COSTS> 324,475
<OTHER-EXPENSES> 57,060
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 34,736
<INCOME-PRETAX> 166,021
<INCOME-TAX> 0
<INCOME-CONTINUING> 166,021
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 166,021
<EPS-PRIMARY> .07
<EPS-DILUTED> .07
</TABLE>
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