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 quarterly period ended March 31, 1995
Commission File Number 2-99673
LINCAM PROPERTIES LTD. SERIES 85
(Exact name of registrant as specified in charter)
Illinois 36-3377785
(State of Organization) (I.R.S. Employer Identification No.)
125 South Wacker Drive, Suite 3100, Chicago, Illinois 60606
(Address of principal executive office)
Registrants's telephone number, including area code: (312) 443-1477
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
<TABLE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
LINCAM PROPERTIES LTD. SERIES 85
(A LIMITED PARTNERSHIP) AND CONSOLIDATED VENTURE
CONSOLIDATED BALANCE SHEETS
MARCH 31, 1995 AND DECEMBER 31, 1994
(UNAUDITED)
ASSETS
------
<CAPTION>
1995 1994
------------ -----------
<S> <C> <C>
Current assets:
Cash and cash equivalents. . . . . . . . . . . . . . . . . . $ 558,234 823,430
Prepaid expenses and other . . . . . . . . . . . . . . . . . 34,243 37,901
Receivable from tenant . . . . . . . . . . . . . . . . . . . 7,845 61,679
------------ -----------
Total current assets . . . . . . . . . . . . . . . . 602,322 923,010
------------ -----------
Note receivable. . . . . . . . . . . . . . . . . . . . . . . . 5,485,000 5,485,000
------------ -----------
Investment properties, at cost:
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,933,945 4,933,945
Building and improvements. . . . . . . . . . . . . . . . . . 22,311,681 22,307,104
------------ -----------
27,245,626 27,241,049
Less accumulated depreciation. . . . . . . . . . . . . . . . (5,744,333) (5,588,495)
------------ -----------
Total investment properties, net of
accumulated depreciation. . . . . . . . . . . . . . . . . 21,501,293 21,652,554
Deferred expenses, net . . . . . . . . . . . . . . . . . . . . 73,657 86,655
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . 288,594 304,856
------------ -----------
Total assets . . . . . . . . . . . . . . . . . . . . $ 27,950,866 28,452,075
============ ===========
LINCAM PROPERTIES LTD. SERIES 85
(A LIMITED PARTNERSHIP) AND CONSOLIDATED VENTURE
CONSOLIDATED BALANCE SHEETS - CONTINUED
LIABILITIES AND PARTNERS' CAPITAL (DEFICITS)
--------------------------------------------
1995 1994
------------ -----------
Current liabilities:
Accounts payable . . . . . . . . . . . . . . . . . . . . . . $ 33,978 77,063
Accrued interest payable . . . . . . . . . . . . . . . . . . 10,139 14,383
Funds held for others. . . . . . . . . . . . . . . . . . . . 25,863 126,586
Amounts due to affiliates. . . . . . . . . . . . . . . . . . 6,731 --
Accrued real estate taxes. . . . . . . . . . . . . . . . . . 183,402 427,116
Tenant security deposits . . . . . . . . . . . . . . . . . . 108,308 113,228
Unearned income. . . . . . . . . . . . . . . . . . . . . . . 1,482 1,952
------------ -----------
Total current liabilities. . . . . . . . . . . . . . 369,903 760,328
Note payable (note 4). . . . . . . . . . . . . . . . . . . . . 5,000,000 5,000,000
------------ -----------
Total liabilities. . . . . . . . . . . . . . . . . . 5,369,903 5,760,328
------------ -----------
Venture partners' investment in venture. . . . . . . . . . . . 4,098,525 4,106,229
------------ -----------
Partners' capital (deficits) (note 1):
General Partners:
Capital contributions. . . . . . . . . . . . . . . . . . . 2,000 2,000
Allocated portion of cumulative net income . . . . . . . . 66,642 63,124
Cumulative cash distributions. . . . . . . . . . . . . . . (106,634) (102,086)
------------ -----------
(37,992) (36,962)
------------ -----------
Limited Partners:
Interest of $1,000. Authorized 40,001 Interests;
issued and outstanding, 25,016 Interests . . . . . . . . 22,479,645 22,479,645
Allocated portion of cumulative net income . . . . . . . . 6,653,692 6,305,454
Cumulative cash distributions. . . . . . . . . . . . . . . (10,612,907) (10,162,619)
------------ -----------
18,520,430 18,622,480
------------ -----------
Total partners' capital. . . . . . . . . . . . . . . 18,482,438 18,585,518
------------ -----------
Total liabilities and partners' capital. . . . . . . $ 27,950,866 28,452,075
============ ===========
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<TABLE>
LINCAM PROPERTIES LTD. SERIES 85
(A LIMITED PARTNERSHIP) AND CONSOLIDATED VENTURE
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 1995 AND 1994
(UNAUDITED)
<CAPTION>
1995 1994
----------- ----------
<S> <C> <C>
Income:
Rental income. . . . . . . . . . . . . . . . . . . . . . . . . . $ 977,535 893,055
Charges to tenant. . . . . . . . . . . . . . . . . . . . . . . . 34,095 13,119
Interest income. . . . . . . . . . . . . . . . . . . . . . . . . 110,292 105,163
Other income . . . . . . . . . . . . . . . . . . . . . . . . . . 22,536 20,447
----------- ----------
Total income . . . . . . . . . . . . . . . . . . . . . . 1,144,458 1,031,784
----------- ----------
Expenses:
Property operating expenses. . . . . . . . . . . . . . . . . . . 309,561 318,367
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . 155,838 147,284
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . 113,201 79,795
Management fees paid to an affiliate of General Partner. . . . . 45,072 39,451
Professional services. . . . . . . . . . . . . . . . . . . . . . 19,773 20,815
Amortization of deferred expenses. . . . . . . . . . . . . . . . 12,998 12,998
General and administrative . . . . . . . . . . . . . . . . . . . 23,963 16,932
----------- ----------
Total expenses . . . . . . . . . . . . . . . . . . . . . 680,406 635,642
----------- ----------
Operating income . . . . . . . . . . . . . . . . . . . . 464,052 396,142
Venture partner's share of venture's operations. . . . . . . . . . (112,296) (89,308)
----------- ----------
Net income . . . . . . . . . . . . . . . . . . . . . . . $ 351,756 306,834
=========== ==========
Net income per limited partnership interest. . . . . . . . . . . $ 13.92 12.14
=========== ==========
Cash distributions per limited partnership interest. . . . . . . $ 18.00 16.00
=========== ==========
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<TABLE>
LINCAM PROPERTIES LTD. SERIES 85
(A LIMITED PARTNERSHIP) AND CONSOLIDATED VENTURE
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1995 AND 1994
(UNAUDITED)
<CAPTION>
1995 1994
----------- ----------
<S> <C> <C>
Cash flows from operating activities:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 351,756 306,834
Adjustments to reconcile net income to net cash provided
by operating activities:
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . 155,838 147,284
Amortization . . . . . . . . . . . . . . . . . . . . . . . . 12,998 12,998
Venture Partner's share of income. . . . . . . . . . . . . . 112,296 89,308
Changes in assets and liabilities:
Decrease in prepaid expenses and other current assets. . . 1,658 35,057
Decrease in receivable from tenant . . . . . . . . . . . . 53,834 --
Decrease in other assets . . . . . . . . . . . . . . . . . 16,262 8,191
Decrease in accounts payable . . . . . . . . . . . . . . . (43,085) (21,961)
Increase (decrease) in accrued interest payable. . . . . . (4,244) 1,866
Decrease in funds held for others. . . . . . . . . . . . . (100,723) (71,396)
Increase in amounts due to affiliates. . . . . . . . . . . 6,731 18,061
Decrease in accrued real estate taxes. . . . . . . . . . . (243,714) (240,868)
Decrease in tenant security deposits . . . . . . . . . . . (4,920) (2,505)
Increase (decrease) in unearned income . . . . . . . . . . (470) (471)
----------- ----------
Total adjustments. . . . . . . . . . . . . . . . . . . . (37,539) (24,436)
----------- ----------
Net cash provided by operating activities. . . . . . . . 314,217 282,398
----------- ----------
Cash flows from investing activities -
additions to buildings and improvements. . . . . . . . . . . . . (4,577) (25,072)
----------- ----------
Net cash used in investing activities. . . . . . . . . . (4,577) (25,072)
----------- ----------
LINCAM PROPERTIES LTD. SERIES 85
(A LIMITED PARTNERSHIP) AND CONSOLIDATED VENTURE
CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED
1995 1994
----------- ----------
Cash flows from financing activities:
Cash distributions to Limited Partners . . . . . . . . . . . . . (450,288) (400,256)
Cash distributions to General Partners . . . . . . . . . . . . . (4,548) (4,042)
Cash distributions to Venture Partner. . . . . . . . . . . . . . (120,000) (120,000)
----------- ----------
Net cash used in financing activities. . . . . . . . . . (574,836) (524,298)
----------- ----------
Net decrease in cash and cash equivalents. . . . . . . . . . . . . (265,196) (266,972)
Cash and cash equivalents at beginning of period . . . . . . . . . 823,430 825,370
----------- ----------
Cash and cash equivalents at end of period . . . . . . . . . . . . $ 558,234 558,398
=========== ==========
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
LINCAM PROPERTIES LTD. SERIES 85
(A LIMITED PARTNERSHIP) AND CONSOLIDATED VENTURE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1995 AND 1994
(UNAUDITED)
Readers of this quarterly report should refer to the Partnership's audited
financial statements for the fiscal year ended December 31, 1994, which are
included in the Partnership's 1994 Annual Report, as certain footnote
disclosures which would substantially duplicate those contained in such
audited financial statements have been omitted from this report.
(1) ORGANIZATION AND BASIS OF ACCOUNTING
The accompanying consolidated financial statements include the
accounts of the Partnership and its consolidated venture, LincAm Barton
Venture (Note 3). The effect of all transactions between the Partnership
and the venture has been eliminated.
For purposes of reporting cash flows, cash and cash equivalents
include an investment in a money market account and other investments
(having daily availability) at cost which approximates market.
The Partnership records are maintained on the accrual basis of
accounting as adjusted for Federal income tax reporting purposes. The
accompanying consolidated financial statements have been prepared from such
records after making appropriate adjustments to reflect the Partnership's
accounts in accordance with generally accepted accounting principles
(GAAP). Such adjustments are not recorded on the records of the
Partnership. The net effect of these items is summarized below:
THREE MONTHS ENDED THREE MONTHS ENDED
MARCH 31, 1995 MARCH 31, 1994
----------------------- -----------------------
GAAP BASIS TAX BASIS GAAP BASIS TAX BASIS
---------- --------- ---------- ---------
Total assets . . $27,950,866 20,135,061 28,477,647 20,735,131
Partners' capital
(deficits):
General Partners (37,992) (155,340) (33,759) (149,772)
Limited Partners 18,520,430 15,407,323 18,939,454 15,958,641
Net income:
General Partners 3,518 3,206 3,068 2,670
Limited Partners 348,238 317,374 303,766 264,374
Net income
per limited
partnership
interest . . . 13.92 12.69 12.14 10.56
========== ========== ========== ==========
The net income and cash distributions per limited partnership
interest, as presented for the three month period ended March 31, 1995 and
1994 are based upon the limited partnership interests outstanding at the
end of the periods (25,016).
Deferred commitment fees are amortized using the straight-line method
over the term stipulated in the related agreements.
No provision for Federal income taxes has been made as any liability
for such taxes is that of the partners rather than the Partnership.
LINCAM PROPERTIES LTD. SERIES 85
(A LIMITED PARTNERSHIP) AND CONSOLIDATED VENTURE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1995 AND 1994
(UNAUDITED)
Certain amounts in the consolidated 1994 financial statements have
been reclassified to conform to the 1995 presentation.
(2) INVESTMENT PROPERTIES
(a) General
The Partnership has acquired, either directly or through a
joint venture (Note 3), three apartment complexes, a distribution center,
and a warehouse/research facility. One apartment complex was sold in 1993.
All four of the properties owned at March 31, 1995 were completed and in
operation.
The cost of the investment properties, as acquired, represents
the total cost to the Partnership or its venture plus miscellaneous
acquisition costs.
Depreciation on the investment properties acquired has been
provided over the estimated useful lives of five to forty years using the
straight-line method.
Maintenance and repair expenses are charged to operations as
incurred. Expenditures which materially add to the value or utility of the
property or appreciably prolong its useful life are capitalized and
depreciated over their estimated useful lives.
(b) Oak View Apartments
On September 30, 1986, the Partnership acquired the Oak View
Apartments, a recently constructed 124 unit apartment complex located in
the Augusta, Georgia metropolitan area, and title to the approximately
twenty acre parcel of land on which the complex is situated.
The Partnership's purchase price was $3,604,460, excluding
closing costs, fees, reserves and prorations, and was determined by arm's-
length negotiations.
An affiliate of the General Partners manages the apartment
complex for a fee equal to 5% of the gross revenue of the property.
(c) 5521 Meadowbrook Court Distribution Center
On January 12, 1987, the Partnership acquired for $2,492,500 an
approximately 50,000 square foot distribution center and the approximately
110,000 square foot parcel of land on which the building is situated. The
property is located at 5521 Meadowbrook Court in Rolling Meadows, Illinois,
and has been leased to Komori America , Inc. since February 11, 1991.
Komori America, Inc. has entered into a new thirty-two month lease
agreement which commenced August 16, 1993. Under the terms of the new
lease the tenant will occupy approximately 41.67% of the distribution
center and pay a base rent of $4.85 per square foot in year one. The base
rent increases to $4.90
LINCAM PROPERTIES LTD. SERIES 85
(A LIMITED PARTNERSHIP) AND CONSOLIDATED VENTURE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1995 AND 1994
(UNAUDITED)
on August 1, 1994. Komori America, Inc. has amended their
lease effective February 1, 1994 to occupy an additional 4,167 square feet
(8.33%) for $2.75 per square foot. Komori America, Inc. currently occupies
50% of the distribution center and is responsible for 50% of all operating
expenses including real estate taxes, during 1994.
On January 11, 1994, the Partnership leased the remaining
25,000 square feet of the distribution center to Samsung America, Inc. The
thirty-eight month lease commenced March 6, 1994 and provides for an annual
base rent of $3.75 per square foot in year one. The terms of the lease
provide for three percent annual increases in the base rent. The terms of
the lease also provide that the tenant be responsible for their
proportionate share of all operating expenses, including real estate taxes,
during the term of the lease.
An affiliate of the General Partners manages and provides
leasing services for the distribution center for a fee equal to 6% of the
gross revenue for the property.
(d) Walker's Mark Apartments
On July 29, 1987, the Partnership acquired for $5,950,000 the
Walker's Mark Apartments, a 164 unit apartment complex located in Dallas,
Texas, and title to the approximately seven acre parcel of land on which
the complex is situated.
On August 19, 1993, the Partnership sold this apartment complex
for $6,585,000. The Partnership received $911,617 in cash (after closing
costs and commissions) and a note receivable for $5,485,000 which is
secured by a first mortgage on the property. The Partnership is receiving
monthly payments of interest only, at an annual rate of 7.5% with the note
balance due October 1, 1997.
(e) 1880 Country Farm Drive Facility
On July 1, 1988, the Partnership acquired a recently completed,
approximately 162,000 square foot office and warehouse/research facility
and title to the approximately 354,000 square foot parcel of land on which
the building is situated. The property is located at 1880 Country Farm
Drive in Naperville, Illinois, and is leased to Babson Bros. for a ten-year
lease term commencing September, 1987. Babson Bros. Co. has two 5-year
options to renew its lease at market rates.
The Partnership's purchase price was $7,840,000 excluding
closing costs, fees, reserves and prorations, and was determined by arm's-
length negotiations.
An affiliate of the General Partners manages the property for a
fee equal to 1% of the gross revenue of the property.
LINCAM PROPERTIES LTD. SERIES 85
(A LIMITED PARTNERSHIP) AND CONSOLIDATED VENTURE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1995 AND 1994
(UNAUDITED)
(3) VENTURE AGREEMENT - LINCAM BARTON VENTURE
At March 31, 1995 the Partnership owned a 60% interest in Barton
Creek Landing Apartments, a 250 unit apartment complex located in Austin,
Texas which was completed in 1986, and title to the approximately nineteen
acre parcel of land on which the complex is situated. The Partnership and
its venture partner, an affiliate of the General Partners, made cash
contributions aggregating $7,746,000 and $5,164,000, respectively, to the
joint venture partnership (the "Joint Venture"). The Joint Venture's
purchase price was $12,500,000 plus closing costs, fees, reserves and
prorations, and was determined by arm's-length negotiations.
Under the terms of the Joint Venture Agreement, all costs incurred by
the Joint Venture and all profits and losses and cash distributions will be
shared by the Partnership and its venture partner in proportion to their
ownership percentages (60% and 40%, respectively).
An affiliate of the General Partners manages the apartment complex
for a fee equal to 5% of the gross revenue of the property.
On April 12, 1995, the Joint Venture sold this apartment complex for
$14,871,600 in an all cash transaction. The Partnership received
approximately $8,950,000 in cash distributions from the joint venture which
was used to repay debt (see Note 4 of Notes to Consolidated Financial
Statements) and make a special distribution of $3,537,616 or a $140 per
limited partnership interest.
(4) NOTE PAYABLE
At March 31, 1995 the Partnership owed $5,000,000 to a bank, the
proceeds of which were used to refinance the prior indebtedness used to
acquire the 1880 Country Farm Drive Facility. The note provided for
interest at 300 basis points over LIBOR (9.125% at March 31, 1995), is due
in August 1996, and is secured by first mortgages on three of the
Partnership's properties. The Partnership paid the note in full in April
1995 upon closing of the sale of the Barton Creek Landing Apartments.
(5) TRANSACTIONS WITH AFFILIATES
Fees, commissions and other expenses required to be paid by the
Partnership to the Corporate General Partner and its affiliates as of and
for the three months ended March 31, 1995 and 1994 are summarized as
follows:
LINCAM PROPERTIES LTD. SERIES 85
(A LIMITED PARTNERSHIP) AND CONSOLIDATED VENTURE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1995 AND 1994
(UNAUDITED)
Three Months Three Months
Ended Ended Unpaid at
March 31, 1995 March 31, 1994 March 31, 1995
--------------- ---------------- ---------------
Property management
fees . . . . . . $45,072 39,451 2,314
Reimbursement
(at cost) for:
Out-of-Pocket
expenses. . . . $17,587 18,061 6,329
======= ====== =====
(6) ADJUSTMENTS
In the opinion of the Corporate General Partner, all adjustments
necessary for a fair presentation have been made to the accompanying
figures as of March 31, 1995 and 1994 and for the three month periods ended
March 31, 1995 and 1994.
ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF RESULTS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
On October 23, 1985, the Partnership commenced an offering of $25,000,000
(subject to increase by up to $15,000,000) of Limited Partnership Interests
pursuant to a Registration Statement on Form S-11 under the Securities Act
of 1933. The offering of Limited Partnership Interests terminated April
15, 1986. A total of 25,015 Interests were assigned to the public between
October 23, 1985 and May 16, 1986.
After deducting selling expenses and other offering costs, the Partnership
had approximately $22,500,000 with which to make investments in income-
producing commercial and residential real property, to pay legal fees and
other costs (including acquisition fees) related to such investments and to
satisfy working capital requirements. A portion of the proceeds was
utilized to acquire the properties owned by the Partnership at March 31,
1995.
On April 12, 1995, the Joint Venture sold Barton Creek Landing Apartments
for $14,871,600 in an all cash transaction. As described in Notes 3 and 4
of Notes to Consolidated Financial Statements, the Partnership received
approximately $8,950,000 in cash in April 1995 of which $5,000,000 was used
to retire the Partnership's bank debt. The remaining proceeds are being
distributed to the partners via a special distribution of $140 per limited
partnership interest.
At March 31, 1995, the Partnership and its consolidated joint venture had
cash of $39,486 and short-term investments in asset management accounts of
$518,748, which will be utilized for distributions to partners and for
working capital requirements.
At March 31, 1995 the Partnership has total current assets of $602,322 and
current liabilities of $369,903 and a current ratio of 1.63. Cash
distributions have also increased. The Partnership distributed $64 per
Limited Partnership Interest in 1993. This distribution increased 9% to
$70 per Limited Partnership Interest in 1994. Including a special
distribution of the net proceeds from the sale of the Barton Creek Landing
Apartments equal to $140 per limited partnership interest, cash
distributions are anticipated to be $206 per Limited Partnership Interest
in 1995.
In August 1993, the Partnership replaced its existing bank debt. This note
was repaid in full in April 1995 from the proceeds of the sale of the
Barton Creek Landing Apartments.
On January 30, 1993, Komori America, Inc. entered into a new lease
agreement to occupy 20,833 square feet of the 50,000 square foot
distribution center. The lease became effective on August 16, 1993, upon
expiration of their previous lease for 100% of the space of the
distribution center. In February 1994 Komori America, Inc. amended their
lease to occupy an additional 4,167 square feet of the distribution center
bringing their total occupancy to 25,000 square feet. Samsung America,
Inc. has leased the remaining 25,000 square feet of the distribution center
effective March 6, 1994. See Note 2(c) of Notes to Consolidated Financial
Statements.
As described in Note 2(d) of Notes to Consolidated Financial Statements the
Partnership sold Walker's Mark Apartments in Dallas, Texas for $6,585,000
on August 19, 1993. The Partnership received $911,617 in cash (net of
closing costs) at closing and a note receivable for $5,485,000. The note
provides for monthly payments of interest only in the amount of $34,281 for
50 months, at which time the note balance is due. The Partnership used the
funds from the sale, together with working capital reserves, to pay its
note payable down to $5,000,000.
The Corporate General Partner will continue to explore selling each of the
properties at a time when, from the standpoint of maximizing value, it
makes the most sense.
RESULTS OF OPERATIONS
At March 31, 1995, the Partnership owned four investment properties,
consisting of two apartment complexes, a distribution center and a
warehouse/research facility.
The increase in rental income for the three months ended March 31, 1995
compared to 1994 of approximately $84,500 (9.5%) is primarily due to rental
increases at Barton Creek Landing Apartments in Austin, Texas ($57,800) and
at the Rolling Meadows distribution center ($24,900). The increase in
charges to tenant for the three months ended March 31, 1995 compared to
1994 of approximately $21,000 (160%) is primarily due to the distribution
center being fully occupied in the first quarter of 1995 as Samsung America
Inc.'s lease for 50% of the distribution center commenced March 6, 1994.
Interest income increased approximately $5,100 (4.9%) for the three months
ended March 31, 1995 compared to 1994. This increase is primarily
attributable to increased interest rates and amounts held in interest
bearing short-term asset management accounts. Other income remained
essentially flat for the three months ended March 31, 1995 as compared to
1994. Property operating expenses decreased approximately $8,800 (2.8%)
for the three months ended March 31, 1995 compared to 1994. This decrease
is primarily attributable to leasing commissions which were paid in 1994
for Samsung America Inc.'s lease. The increase in depreciation expense of
approximately $8,500 (5.8%) for the three months ended March 31, 1995
compared to 1994 is primarily attributable to increase in personal property
at the properties. The increase in interest expense of approximately
$33,400 (41.9%) for the three months ended March 31, 1995 as compared to
1994 is due to the increase in interest rates. Management fees paid to an
affiliate of General Partner increased approximately $5,600 (14.2%) for the
three months ended March 31, 1995 as compared to 1994. This increase is
primarily attributable to the increases in rental income and charges to
tenants. Professional services have remained essentially flat for the
three months ended March 31, 1995 as compared to 1994. Operating income
for the three months ended March 31, 1995 as compared to 1994 increased by
$67,910 to $464,052 (17.1%) and net income increased by $44,922 to $351,756
(14.6%) over the same period.
<TABLE>
OCCUPANCY
The following is a listing of approximate occupancy levels by quarter for the partnership's investment properties:
<CAPTION>
1994 1995
-------------------------------------------------------------------
At At At At At At At At
3/31 6/30 9/30 12/31 3/31 6/30 9/30 12/31
---- ---- ---- ----- ---- ---- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Barton Creek Landing
Apartments
Austin, Texas. . . . . . . 90% 98% 99% 94% 96%
Oak View Apartments
Augusta, Georgia . . . . . 98% 98% 98% 98% 99%
5521 Meadowbrook Court
Distribution Center
Rolling Meadows, Illinois. 100% 100% 100% 100% 100%
1880 Country Farm Drive
Warehouse/Research Facility
Naperville, IL . . . . . . 100% 100% 100% 100% 100%
</TABLE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
27. Financial Data Schedule
(b) Reports on Form 8-K:
None
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.
LINCAM PROPERTIES LTD. SERIES 85
By: LINCAM PROPERTIES, INC.
Corporate General Partner
By: /s/ John E. Allen
------------------------------
John E. Allen
President of Corporate
General Partner
Date:May 11, 1995
Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
By: LINCAM PROPERTIES, INC.
Corporate General Partner
By: /s/ Gregory T. Mutz
------------------------------
Gregory T. Mutz
Chairman and Director
Principal Executive Officer
By: /s/ John E. Allen
------------------------------
John E. Allen
President and Director
By: /s/ Charles C. Kraft
------------------------------
Charles C. Kraft, Treasurer
Principal Financial Officer and
Principal Accounting Officer
Date:May 11, 1995<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
THE REGISTRANT'S FORM 10-Q FOR THE THREE MONTHS ENDED MARCH 31,
1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS INCLUDED IN SUCH REPORT.
</LEGEND>
<CIK> 0000774489
<NAME> LINCAM PROPERTIES LTD. SERIES 85
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 558,234
<SECURITIES> 0
<RECEIVABLES> 7,845
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 602,322
<PP&E> 27,245,626
<DEPRECIATION> 5,744,333
<TOTAL-ASSETS> 27,950,866
<CURRENT-LIABILITIES> 369,903
<BONDS> 5,000,000
<COMMON> 0
0
0
<OTHER-SE> 18,482,438
<TOTAL-LIABILITY-AND-EQUITY> 27,950,866
<SALES> 0
<TOTAL-REVENUES> 1,144,458
<CGS> 0
<TOTAL-COSTS> 680,406
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 113,201
<INCOME-PRETAX> 351,756
<INCOME-TAX> 0
<INCOME-CONTINUING> 351,756
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 351,756
<EPS-PRIMARY> 13.92
<EPS-DILUTED> 13.92
</TABLE>
