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 March 31, 1994
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 0-15348
MRI Business Properties Fund, Ltd. III
(Exact name of Registrant as specified in its charter)
California 94-2969782
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
5665 Northside Drive N.W., Ste. 370, Atlanta, Georgia 30328
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code (404) 916-9090
N/A
Former name, former address and fiscal year, if changed since last report.
Indicate by check mark whether 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 ____
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 12, 13, or 15(d) of the Securities Exchange Act of 1934
subsequent to the distribution of securities under a plan confirmed by a court.
Yes ____ No _____
APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares
outstanding of each of the issuer's classes of common stock, as of the
latest practicable date __________________.
1 of 16
MRI BUSINESS PROPERTIES FUND, LTD. III - FORM 10-Q - MARCH 31, 1994
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
CONSOLIDATED BALANCE SHEETS
March 31, September 30,
1994 1993
(Unaudited) (Audited)
Assets
Cash and cash equivalents $ 10,298,000 $ 5,088,000
Cash investments - 3,467,000
Accounts and interest receivable - net 771,000 1,814,000
Inventories and operating supplies 36,000 533,000
Prepaid expenses and other assets 176,000 434,000
Real Estate:
Real estate 47,956,000 110,924,000
Accumulated depreciation (14,630,000) (30,459,000)
Allowance for impairment of value - (14,348,000)
------------ ------------
Net real estate 33,326,000 66,117,000
Deferred financing costs - net 97,000 158,000
------------ ------------
Total assets $ 44,704,000 $ 77,611,000
------------ ------------
------------ ------------
Liabilities and Partners' Equity (Deficiency)
Accounts payable $ 972,000 $ 1,466,000
Accrued interest 123,000 966,000
Accrued property taxes 211,000 1,779,000
Payable to affiliate of joint venture partner - 1,581,000
Due to unconsolidated joint venture 149,000 147,000
Other liabilities 578,000 1,467,000
Note payable to affiliate of joint venture partner - 2,500,000
Notes payable 22,946,000 51,799,000
------------ ------------
Total liabilities 24,979,000 61,705,000
------------ ------------
Minority interest in joint ventures - (444,000)
------------ ------------
Partners' equity (deficiency):
General partners (1,947,000) (2,014,000)
Limited partners (109,027 units outstanding at
March 31, 1994 and September 30, 1993) 21,672,000 18,364,000
------------ ------------
Total partners' equity 19,725,000 16,350,000
------------ ------------
Total liabilities and partners' equity $ 44,704,000 $ 77,611,000
------------ ------------
------------ ------------
See notes to consolidated financial statements.
2 of 16
MRI BUSINESS PROPERTIES FUND, LTD. III - FORM 10-Q - MARCH 31, 1994
Consolidated Statements of Operations (Unaudited)
For the Six Months Ended
March 31, 1994 March 31, 1993
Revenues:
Room revenue $ 12,945,000 $ 12,510,000
Food and beverage revenue 2,593,000 2,998,000
Other operating revenues 955,000 957,000
Interest and other income 130,000 86,000
Gain on sale of joint venture interests 1,467,000 -
------------ -----------
Total revenues 18,090,000 16,551,000
------------ -----------
Expenses:
Room expenses 3,098,000 3,332,000
Food and beverage expenses 2,331,000 2,876,000
Other operating expenses 6,653,000 7,643,000
Depreciation 878,000 1,696,000
Interest 942,000 2,539,000
Equity in unconsolidated joint venture's operations 152,000 622,000
General and administrative 257,000 198,000
------------ -----------
Total expenses 14,311,000 18,906,000
------------ -----------
Income (loss) before minority interest in joint
ventures' operations 3,779,000 (2,355,000)
Minority interest in joint ventures' operations (404,000) 401,000
------------ -----------
Net income (loss) $ 3,375,000 $(1,954,000)
------------ -----------
------------ -----------
Net income (loss) per limited partnership
assignee unit $ 30 $ (18)
------------ -----------
------------ -----------
See notes to consolidated financial statements.
3 of 16
MRI BUSINESS PROPERTIES FUND, LTD. III - FORM 10-Q - MARCH 31, 1994
Consolidated Statements of Operations (Unaudited)
For the Three Months Ended
March 31, 1994 March 31, 1993
Revenues:
Room revenue $ 6,016,000 $ 6,404,000
Food and beverage revenue 816,000 1,117,000
Other operating revenues 418,000 470,000
Interest and other income 76,000 42,000
Gain on sale of joint venture interests 1,467,000 -
----------- -----------
Total revenues 8,793,000 8,033,000
----------- -----------
Expenses:
Room expenses 1,406,000 1,626,000
Food and beverage expenses 832,000 1,222,000
Other operating expenses 3,189,000 3,838,000
Depreciation 492,000 741,000
Interest 435,000 1,270,000
Equity in unconsolidated joint
venture's operations 46,000 246,000
General and administrative 132,000 105,000
----------- -----------
Total expenses 6,532,000 9,048,000
----------- -----------
Income (loss) before minority interest in joint
ventures' operations 2,261,000 (1,015,000)
Minority interest in joint ventures' operations 41,000 372,000
----------- -----------
Net income (loss) $ 2,302,000 $ (643,000)
----------- -----------
----------- -----------
Net income (loss) per limited partnership
unit assignee $ 21 $ (6)
----------- -----------
----------- -----------
See notes to consolidated financial statements.
4 of 16
MRI BUSINESS PROPERTIES FUND, LTD. III - FORM 10-Q - MARCH 31, 1994
Consolidated Statements of Partners' Equity (Deficiency) (Unaudited)
For the Six Months Ended March 31, 1994
General Limited
Partners Partners Total
Balance - October 1, 1993 $ (2,014,000) $ 18,364,000 $ 16,350,000
Net income 67,000 3,308,000 3,375,000
------------ ------------ ------------
Balance - March 31, 1994 $ (1,947,000) $ 21,672,000 $ 19,725,000
------------ ------------ ------------
------------ ------------ ------------
See notes to consolidated financial statements.
5 of 16
MRI BUSINESS PROPERTIES FUND, LTD. III - FORM 10-Q - MARCH 31, 1994
Consolidated Statements of Cash Flows (Unaudited)
For the Six Months Ended
March 31, 1994 March 31, 1993
Operating Activities:
Net income (loss) $ 3,375,000 $(1,954,000)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation and amortization 939,000 1,717,000
Minority interest in joint ventures' operations 404,000 (401,000)
Gain on sale of joint venture interests (1,467,000) -
Equity in unconsolidated joint venture's
operations 152,000 622,000
Changes in operating assets and liabilities:
Accounts and interest receivable 1,043,000 (81,000)
Inventories and operating supplies 497,000 27,000
Prepaid expenses and other assets 258,000 75,000
Accounts payable, accrued expenses and
other liabilities (3,794,000) 1,116,000
------------ -----------
Net cash provided by operating activities 1,407,000 1,121,000
------------ -----------
Investing Activities:
Net proceeds from sale of joint venture interests 34,332,000 -
Properties and improvements additions (912,000) (932,000)
Unconsolidated joint venture contributions (150,000) -
Proceeds from cash investments 5,842,000 1,486,000
Purchase of cash investments (2,375,000) (1,983,000)
------------ -----------
Net cash provided by (used in) investing
activities 36,737,000 (1,429,000)
------------ -----------
Financing Activities:
Satisfaction of payables to affiliate of
joint venture partner (4,081,000) -
Satisfaction of notes payable (28,731,000) -
Notes payable principal payments (122,000) (9,000)
------------ -----------
Net cash (used in) financing activities (32,934,000) (9,000)
------------ -----------
Increase (Decrease) in Cash and Cash Equivalents 5,210,000 (317,000)
Cash and Cash Equivalents at Beginning of Period 5,088,000 5,223,000
------------ -----------
Cash and Cash Equivalents at End of Period $ 10,298,000 $ 4,906,000
------------ -----------
------------ -----------
Supplemental Disclosure of Cash Flow Information:
Interest paid in cash during the period $ 875,000 $ 1,755,000
------------ -----------
------------ -----------
See notes to consolidated financial statements.
6 of 16
MRI BUSINESS PROPERTIES FUND, LTD. III - FORM 10-Q - MARCH 31, 1994
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. General
The accompanying consolidated financial statements, footnotes and discussions
should be read in conjunction with the consolidated financial statements,
related footnotes and discussions contained in the Partnership's Annual Report
for the year ended September 30, 1993. Certain balance sheet accounts have been
reclassified in order to conform to the current period.
The financial information contained herein is unaudited. However, in the
opinion of management, all adjustments necessary for a fair presentation of such
financial information have been included. All adjustments are of a normal
recurring nature.
The results of operations for the six and three months ended March 31, 1994 and
1993 are not necessarily indicative of the results to be expected for the full
year.
2. Transactions with Related Parties
NPI Equity Investments II, Inc. received reimbursement of administrative
expenses amounting to $21,000 during the period ended March 31, 1994. These
reimbursements are primarily included in general and administrative expenses.
3. Gain on Sale of Joint Venture Interests
On March 7, 1994 the Partnership sold its 60 percent interest in the Park Hyatt
Water Tower Associates Joint Venture, which owned the Park Hyatt Hotel, located
in Chicago, Illinois. The sales price of $5,831,000 is comprised of the
following: (1) the assumption of the purchase money note payable in the amount
of $2,500,000, (2) accrued and unpaid interest of $1,581,000 assumed by the
buyer, and (3) cash of $1,750,000. The sale resulted in a gain of approximately
$543,000. The Partnership had recorded a provision for impairment of value of
$6,985,000 during fiscal year 1992.
On March 15, 1994 the Partnership sold its 65 percent interest in the Washington
Park Hotel Associates Joint Venture, which owned the Radisson Park Terrace
Hotel, located in Washington, D.C. for $1,455,000 in cash. The sale resulted in
a gain of approximately $924,000. The Partnership had recorded a provision for
impairment of value of $7,363,000, of which $2,755,000 was recognized in fiscal
year 1990 and the remaining $4,608,000 was recognized in fiscal year 1992.
7 of 16
MRI BUSINESS PROPERTIES FUND, LTD. III - FORM 10-Q - MARCH 31, 1994
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
4. Investment in Unconsolidated Joint Venture
The following are the condensed balance sheets as of March 31, 1994 and
September 30, 1993 and condensed statements of operations for the six and the
three months ended March 31, 1994 and 1993 of the unconsolidated joint venture:
MRI BUSINESS PROPERTIES COMBINED FUND NO. 1
CONDENSED BALANCE SHEETS
March 31, September 30,
1994 1993
(Unaudited) (Audited)
Assets
Cash and cash equivalents $ 798,000 $ 302,000
Restricted cash 1,036,000 739,000
Accounts receivable 1,318,000 1,132,000
Net property and improvements 34,139,000 34,778,000
Deferred financing costs 14,000 45,000
Other assets 256,000 257,000
------------ ------------
Total assets $ 37,561,000 $ 37,253,000
------------ ------------
------------ ------------
Liabilities and partners' equity
Accounts payable and accrued liabilities $ 4,169,000 $ 3,854,000
Note payable 34,000,000 34,000,000
------------ ------------
Total liabilities 38,169,000 37,854,000
------------ ------------
Minority interest in joint venture (311,000) (308,000)
------------ ------------
Partners' equity:
MRI BPF, Ltd. II (148,000) (146,000)
MRI BPF, Ltd. III (149,000) (147,000)
------------ ------------
Total liabilities and partners' equity $ 37,561,000 $ 37,253,000
------------ ------------
------------ ------------
8 of 16
MRI BUSINESS PROPERTIES FUND, LTD. III - FORM 10-Q - MARCH 31, 1994
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
4. Investment in Unconsolidated Joint Venture (Continued)
MRI BUSINESS PROPERTIES COMBINED FUND NO. 1
CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
For the Six Months Ended
March 31, 1994 March 31, 1993
Revenues $ 10,152,000 $ 8,974,000
Expenses 10,759,000 10,218,000
------------ ------------
Loss before minority interest in joint
venture operations (607,000) (1,244,000)
Minority interest in joint venture operations 303,000 -
------------ ------------
Net loss $ (304,000) $ (1,244,000)
------------ ------------
------------ ------------
Allocation of net loss:
MRI BPF, Ltd. II $ (152,000) $ (622,000)
MRI BPF, Ltd. III (152,000) (622,000)
------------ ------------
Net loss $ (304,000) $ (1,244,000)
------------ ------------
------------ ------------
For the Three Months Ended
March 31, 1994 March 31, 1993
Revenues $ 5,024,000 $ 4,580,000
Expenses 5,210,000 5,071,000
------------ ------------
Loss before minority interest in joint
venture operations (186,000) (491,000)
Minority interest in joint venture operations 95,000 -
------------ ------------
Net loss $ (91,000) $ (491,000)
------------ ------------
------------ ------------
Allocation of net loss:
MRI BPF, Ltd. II $ (45,000) $ (245,000)
MRI BPF, Ltd. III (46,000) (246,000)
------------ ------------
Net loss $ (91,000) (491,000)
------------ ------------
------------ ------------
9 of 16
MRI BUSINESS PROPERTIES FUND, LTD. III - FORM 10-Q - MARCH 31, 1994
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.
This item should be read in conjunction with the Consolidated Financial
Statements and other Items contained elsewhere in this Report.
Fund Liquidity and Capital Resources
All of the Fund's properties are hotels. The Fund receives hotel operating
revenues and is responsible for operating expenses, capital improvements and
debt service payments under mortgage obligations. The Fund uses working capital
reserves provided from any undistributed cash flow from operations and sales
proceeds as its primary source of liquidity. During the first half of fiscal
year 1994, all of the Fund's hotels generated positive cash flow. To preserve
working capital reserves required for necessary capital improvements to
properties and provide resources for debt restructuring, cash distributions
remained suspended during the first half of fiscal year 1994. The Managing
General Partner will evaluate future cash distributions based on the capital
needs of the Fund.
The level of liquidity based upon cash and cash equivalents experienced a
$5,210,000 increase at March 31, 1994, as compared to September 30, 1993. The
Fund's $36,737,000 from investing activities and $1,407,000 from operating
activities was only partially offset by $32,934,000 from financing activities.
Net cash provided by operating activities increased during the first half of
fiscal 1994, as compared to 1993, due to the disposition of the Fund's interest
in the Park Hyatt Water Tower Associates Joint Venture and the Washington Park
Hotel Associates Joint Venture. Cash provided by investing activities consisted
of $34,332,000 of net proceeds from the sale of the Fund's joint venture
interests and $3,467,000 of cash from the liquidation of the Fund's
investments. These funds were used for $912,000 of capital improvements at the
properties and to provide $150,000 of funds to the Holiday Inn Crowne Plaza for
continuing property improvements. Financing activities consisted of $122,000 of
note payable principal payments, $4,081,000 in satisfaction of payables to an
affiliate of the joint venture partner and $28,731,000 in satisfaction of notes
payable. Mortgage principal payments increased due to the Fund's Residence Inn,
Orlando property loan, which started principal amortization during November
1993. All other increases (decreases) in certain assets and liabilities are the
result of the timing of receipt and payment of various operating activities.
Working capital reserves are being invested in money market accounts or
repurchase agreements secured by United States Treasury obligations. It is the
opinion of the Managing General Partner that, if market conditions remain
relatively stable, cash flow from operations, when combined with working capital
reserves, will be sufficient to fund essential capital improvements and debt
service payments in 1994 and the foreseeable future. Balloon payments on
mortgages encumbering the Fund's properties are due from October 1996 to October
1997. Management is confident that there will be sufficient cash flow generated
by the remaining properties to continue operations, in the event that any of the
properties are lost through foreclosure. The Managing General Partner believes
that each property generates sufficient cash flow to allow all mortgages to be
refinanced in an orderly fashion.
10 of 16
MRI BUSINESS PROPERTIES FUND, LTD. III - FORM 10-Q - MARCH 31, 1994
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.
Fund Liquidity and Capital Resources (Continued)
At this time, it appears that the investment objective of capital growth will
not be attained and that a significant portion of invested capital will not be
returned to investors. The extent to which invested capital is returned to
investors is dependent upon the performance of the Fund's remaining properties
and the markets in which such properties are located and on the sales price of
the remaining properties. In this regard, it is anticipated at this time that
some of the remaining properties will be held longer than originally expected.
Real Estate Market
The income and expenses of operating the properties owned by the Fund are
subject to factors outside of the Fund's control, such as over-supply of similar
properties resulting from over-building, increases in unemployment or population
shifts or changes in patterns or needs of users. Expenses, such as local real
estate taxes and miscellaneous expenses, are subject to change and cannot always
be reflected in room rate increases due to market conditions. In addition,
there are risks inherent in owning and operating lodging facilities because such
properties are management and labor intensive and especially susceptible to the
impact of economic and other conditions outside the control of the Fund.
There have been, and it is possible there may be other Federal, state and local
legislation and regulations enacted relating to the protection of the
environment. The Fund is unable to predict the extent, if any, to which such
new legislation or regulations might occur and the degree to which such existing
or new legislation or regulations might adversely affect the properties still
owned by the Fund.
Results of Operations
Six Months Ended March 31, 1994 vs. March 31, 1993
Operating results, before the minority interest in joint venture operations,
improved by $6,134,000 for the six months ended March 31, 1994, as compared to
1993, due to an increase in revenues of $1,539,000 and a decrease in expenses of
$4,595,000. Operating results improved primarily due to the sale of the Fund's
joint venture interests. With respect to the remaining properties, operating
results improved by $1,297,000 for the six months ended March 31, 1994, as
compared to 1993, due to a $575,000 increase in revenues and a $722,000 decrease
in expenses.
Revenues increased by $1,539,000 for the six months ended March 31, 1994,
primarily due to the gain on the sale of the Fund's joint venture interests.
With respect to the remaining properties, revenue increased by $575,000 due to
increases in room revenue of $495,000, other operating revenue of $31,000 and
interest and other income of $49,000.
11 of 16
MRI BUSINESS PROPERTIES FUND, LTD. III - FORM 10-Q - MARCH 31, 1994
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.
Six Months Ended March 31, 1994 vs. March 31, 1993 (Continued)
Room revenue increased at all of the Fund's remaining properties. The largest
increases were at the Embassy Suites and the Residence Inn - Sacramento
properties, primarily due to increased occupancy coupled with a slight increase
in average daily room rate at the Fund's Embassy Suites property. The Fund's
Residence Inn - Orlando had a slight increase in room revenue due to the
increase in average daily room rate, which was only partially offset by the
decline in occupancy. Other operating revenue increased primarily due to
increased telephone revenue at the Fund's Residence Inn - Orlando property.
Interest income increased due to an increase in average working capital reserves
available for investment.
Expenses decreased by $4,595,000 for the six months ended March 31, 1994, as
compared to 1993, primarily due to the sale of the Fund's joint venture
interests. With respect to the remaining properties, expenses decreased by
$722,000. The increase in room expenses of $82,000, general and administrative
of $59,000 and other operating expenses of $167,000 were more that offset by
decreases in depreciation of $314,000, interest of $246,000, and equity in
unconsolidated joint venture operations of $470,000.
Room expenses increased primarily at the Fund's Embassy Suites and Residence Inn
- - - Sacramento properties, which was attributable to increased room occupancy at
the hotels. General and administrative expenses increased primarily due to
costs associated with the management transition. Other operating expenses
increased slightly primarily at the Fund's Embassy Suites and Residence Inn -
Sacramento properties. Depreciation decreased due to a portion of the Fund's
assets becoming fully depreciated during the prior year coupled with an over
estimate of expense for the first quarter of fiscal 1993. Interest expense
decreased primarily due to the reduction in the interest rate on the loan
encumbering the Fund's Residence Inn - Orlando property from 10% to 6.5%. The
loss from the Fund's unconsolidated joint venture (Holiday Inn Crowne Plaza)
decreased due to improved operations at the hotel.
Three Months Ended March 31, 1994 vs. March 31, 1993
Operating results, before the minority interest in joint venture operations,
improved by $3,276,000 for the three months ended March 31, 1994, as compared to
1993, due to an increase in revenues of $760,000 and a decrease in expenses of
$2,516,000. Operating results improved primarily due to the sale of the Fund's
joint venture interests. With respect to the remaining properties, operating
results increased by approximately $772,000 for the three months ended March 31,
1994, as compared to 1993, due to a $622,000 increase in revenues and a $150,000
decrease in expenses.
Revenues increased by $760,000 for the three months ended March 31, 1994, due to
the gain on the sale of the Fund's joint venture interests. With respect to the
remaining properties, revenues increased by approximately $622,000 due to
increases in room revenue of $562,000, other operating revenue of $20,000 and
interest and other income of $40,000.
12 of 16
MRI BUSINESS PROPERTIES FUND, LTD. III - FORM 10-Q - MARCH 31, 1994
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.
Three Months Ended March 31, 1994 vs. March 31, 1993 (Continued)
Room revenue increased at all of the Fund's remaining properties. The largest
increases were at the Embassy Suites and the Residence Inn - Sacramento
properties primarily due to increased occupancy coupled with a slight increase
in average daily room rate at the Fund's Embassy Suites property. Other
operating revenue increased primarily due to increased telephone revenue at the
Fund's Residence Inn - Orlando property. Interest income increased due to an
increase in average working capital reserves available for investment.
Expenses decreased by $2,516,000 for the three months ended March 31, 1994, as
compared to 1993, primarily due to the sale of the Fund's joint venture
interests. With respect to the remaining properties, expenses decreased by
approximately $150,000. The increases in room expenses of $85,000, general and
administrative expenses of $27,000 and other operating expenses of $197,000 were
more than offset by decreases in depreciation of $54,000, interest of $205,000
and equity in unconsolidated joint ventures operations of $200,000.
Room expenses increased primarily at the Fund's Embassy Suites and Residence Inn
- - - Sacramento, which was attributable to the increased room occupancy at the
hotels. General and administrative expenses increased primarily due to costs
associated with the management transition. Other operating expenses increased
primarily at the Fund's Embassy Suites and Residence Inn - Sacramento
properties. Depreciation decreased due to a portion of the Fund's assets
becoming fully depreciated in the prior years. Interest expense decreased
primarily due to the reduction in the interest rate on the loan encumbering the
Fund's Residence Inn - Orlando property from 10% to 6.5%. The loss from the
Fund's unconsolidated joint venture (Holiday Inn Crowne Plaza) decreased due to
improved operations at the hotel.
Unconsolidated Joint Venture Operations
(MRI BPF Combined Fund No. 1)
Operating results, prior to minority interests, improved by $637,000 for the
first half of fiscal 1994 as revenues increased by $1,178,000 and expenses
increased by $541,000. The large increase in revenue is attributable to both
higher occupancy and higher average room rates.
In addition, under the terms of the joint venture agreement, the loss from the
Holiday Inn Crowne Plaza was allocated in different proportions during the first
half of fiscal 1994, as compared to 1993. This, combined with improved
operations, resulted in a smaller loss being allocated to the Fund.
13 of 16
MRI BUSINESS PROPERTIES FUND, LTD. III - FORM 10-Q - MARCH 31, 1994
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.
Properties
A description of the hotel properties in which the Fund has an ownership
interest, together with occupancy and room rate data, follows:
MRI BUSINESS PROPERTIES FUND, LTD. III
OCCUPANCY AND ROOM RATE SUMMARY
<TABLE>
<CAPTION>
Average Average
Occupancy Rate (%) Daily Room Rate ($)
----------------------- ---------------------------
Six Months Three Months Six Months Three Months
Date Ended Ended Ended Ended
of March 31, March 31, March 31, March 31,
Name and Location Rooms Purchase 1994 1993 1994 1993 1994 1993 1994 1993
- - ----------------- ----- -------- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Holiday Inn Crowne
Plaza (1)
Atlanta, Georgia 492 03/86 72 63 76 70 89.78 82.72 92.03 84.63
Embassy Suites - Tempe
Tempe, Arizona 224 12/86 85 80 90 87 88.06 85.50 96.77 92.34
Residence Inn - Orlando
Orlando, Florida 176 09/87 71 72 84 87 84.16 77.22 89.41 77.53
Residence Inn - Sacramento,
California 176 09/87 83 75 87 76 77.53 76.55 77.59 77.46
Radisson Park Terrace Hotel (2)
Washington, D.C. 219 09/86 72 66 69 70 87.52 87.61 88.53 89.42
Park Hyatt Hotel (3)
Chicago, Illinois 255 12/86 63 55 53 47 149.37 147.44 141.24 140.28
</TABLE>
(1) The Fund and an affiliated partnership, MRI Business Properties Fund,
Ltd. II, own the hotel through a joint venture which has a 50 percent
interest in this property.
(2) The Fund sold its 65% interest in this property on March 15, 1994.
(3) The Fund sold its 60% interest in this property on March 7, 1994.
14 of 16
MRI BUSINESS PROPERTIES FUND, LTD. III - FORM 10-Q - MARCH 31, 1994
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
The following reports on Form 8-K were required to be filed during the quarter
covered by this report:
Item
Date of numbers
report reported Description
------------- -------- ----------------------
March 7, 1994 2,7 Disposition of Assets.
March 15, 1994 2,7 Disposition of Assets.
15 of 16
MRI BUSINESS PROPERTIES FUND, LTD. III - FORM 10-Q - MARCH 31, 1994
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.
MRI BUSINESS PROPERTIES FUND, LTD. III
By: MONTGOMERY REALTY COMPANY 85,
A California General Partnership,
its managing general partner
By: FOX REALTY INVESTORS,
A California General Partnership,
its managing general partner
By: NPI Equity Investments II, Inc.,
A Florida Corporation,
its managing partner
-----------------------------------
ARTHUR N. QUELER
Executive Vice President (Principal
Financial and Accounting Officer)
and Director NPI
16 of 16
