SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities and Exchange Act of 1934
Date of Report (Date of earliest event reported) OCTOBER 21, 1998
PROPERTY RESOURCES EQUITY TRUST
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(Exact Name of Registrant as Specified in its Charter)
CALIFORNIA 0-15880 95-3859770
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State or other jurisdiction Commission File IRS Employer
of incorporation Number Identification Number
1800 GATEWAY DRIVE, SAN MATEO, CA 94404
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (650) 312-3000
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ITEM 7: PRO FORMA FINANCIAL INFORMATION
On October 21, 1998, pursuant to a contract entered into on July 10, 1998,
Property Resources Equity Trust (the "Registrant") sold the Good Guys Plaza
Shopping Center, located in Santa Rosa (the "Property").
The Property was sold for all cash at a gross price of $5,108,000. The
unaffiliated purchaser was Sami Khoury and Suad Khoury, trustees of the Sami
Khoury and Suad Khoury Living Trust dated 5/21/92 ("Buyer"). A real estate
brokerage commission of $102,000.00 was paid to Keegan & Coppin Company, an
unaffiliated real estate broker retained by the Registrant under a listing
agreement dated May 12, 1998 and $102,000 was paid to Arikat Real Estate &
Finance, Inc., as agent for the Buyer. The Registrant purchased the Property
in July of 1988 for a total all cash cost (including closing costs and
acquisition fees) of $5,834,000.
PRET PROFORMA BALANCE PROFORMA
SHEET (in thousands) 30-SEP-98 ADJUSTMENTS 30-SEP-98
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Rental property 4,478 (4,478) -
Cash and cash 314 2,100 2,414
equivalents
Deferred rent receivable 72 (72) -
Note receivable - -
Other assets, net 304 (304) -
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Total assets 5,168 (2,754) 2,414
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Notes payable 2,804 (2,804) -
Tenant deposit and other 37 (33) 4
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Total liabilities 2,841 (2,837) 4
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Common stock 9,394 9,394
Accumulated distributions (7,067) 83 (6,984)
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Total equity 2,327 83 2,410
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Total liabilities and
equity 5,168 (2,754) 2,414
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The proforma balance sheet estimates the effect that the sale of Good Guys would
have had on the balance sheet as of September 30, 1998, if it had been completed
as of that date.
The adjustments reflect the removal of the property and its associated debt from
the balance sheet and the recognition of the sales proceeds.
Following the sale of Good Guys, The REIT has no rental revenues, interest
expense, depreciation or property operating expenses. A proforma table showing
the effects of the sale on the historical results of operations for the three
and nine month periods ended September 30, 1998 follows.
Three Nine
months months
(in thousands) ended ended
9.30.98 Proforma 9.30.98 Proforma
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Total revenues $ 175 $ 30 $ 571 $ 118
Net income $ 50 $ 16 $ 96 $ 35
Net income per share $0.05 $ 0.01 $ 0.09 $ 0.03
Proforma net income does not include the estimated gain on sale of
$192 thousand from the sale of Good Guys.
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 heretofore duly authorized.
Dated: November 20, 1998 PROPERTY RESOURCES EQUITY TRUST
BY: /S/ DAVID P. GOSS
David P. Goss
President
