SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
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 No. 0-15511
Development Partners
(A Massachusetts Limited Partnership)
(Exact name of registrant as specified in its charter)
Massachusetts 04-2895800
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
5110 Langdale Way, Colorado Springs, CO 80906
(Address of principal executive offices) (Zip Code)
(719) 527-0544
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Sections 13 and 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 ___
PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
<PAGE>
<TABLE>
DEVELOPMENT PARTNERS
(A Massachusetts Limited Partnership)
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, 1996
---------------
ASSETS March 31,
1996 December 31,
Property, at cost (Notes 2, 3, 5, and 7): (Unaudited) 1995
----------- ----
<S> <C> <C>
Land $5,113,840 $5,110,277
Buildings and improvements 15,561,584 15,561,584
Equipment, furnishings and fixtures 1,432,459 1,404,195
-------------- ---------------
22,107,883 22,076,056
Less accumulated depreciation (4,420,416) (4,322,133)
-------------- ---------------
17,687,467 17,753,923
Cash and cash equivalents (Notes 2 and 4) 498,322 532,019
Short-term investments (Note 2) 464,957 437,688
Real estate tax escrows 56,568 29,457
Deposits and prepaid expenses 4,168 4,168
Due from affiliates (Note 9) 500 392
Investment in partnership (Notes 2 and 6) 343,447 348,504
Deferred expenses, net of accumulated
amortization of $276,093 and $251,449 32,060 38,223
(Note 2)
============== ===============
Total assets $19,087,489 $19,144,374
============== ===============
LIABILITIES AND PARTNERS' EQUITY
Mortgage notes payable (Note 7) 8,703,953 8,732,151
Accounts payable 63,140 88,062
Accrued expenses 194,724 171,283
Due to affiliates (Note 9) 22,331 9,210
Rents received in advance 0
-
Tenant security deposits 65,430 67,430
-------------- ---------------
Total liabilities 9,049,578 9,068,136
Commitments and contingencies (Note 11)
Partners' equity (Note 8) 10,037,911 10,076,238
-------------- ---------------
Total liabilities and partners' $19,087,489 $19,144,374
equity
============== ===============
<PAGE>
DEVELOPMENT PARTNERS
(A Massachusetts Limited Partnership)
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
for the three months ended March 31, 1996 and 1995
-------------
1996 1995
---- ----
<S> <C> <C>
Rental income $667,672 $622,716
Rental operating expenses 286,088 254,419
------------- --------------
Net rental operating income (exclusive of
items
shown separately below) 381,584 368,297
Interest 204,574 206,974
Depreciation and amortization 104,444 104,444
Other (income) and expenses:
Interest income (8,857) (15,161)
General and administrative (Note 9) 58,266 41,957
Equity in (income) loss from partnership (Note 6) (2,235) (3,238)
------------- --------------
47,174 23,558
------------- --------------
Net income $25,392 $33,321
============= ==============
Net income allocated to:
General Partners $508 $666
Per unit of Investor Limited
Partner interest:
36,411 units issued 0.68 0.90
<PAGE>
DEVELOPMENT PARTNERS
(A Massachusetts Limited Partnership)
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF PARTNERS' EQUITY (DEFICIT)
for the three months ended March 31, 1996 and 1995
-------------
Investor Total
General Limited Partners'
Partners Partners Equity
<S> <C> <C> <C>
Balance at December 31, 1994 (67,017) 10,599,504 10,532,487
Cash distributions (10,217) (500,651) (510,868)
Net income 1,092 53,527 54,619
------------- -------------- ---------------
Balance at December 31, 1995 (76,142) 10,152,380 10,076,238
Cash distributions 0 (63,719) (63,719)
Net income 508 24,884 25,392
------------- -------------- ---------------
Balance at March 31, 1996 ($75,634) $10,113,545 10,037,911
============= ============== ===============
<PAGE>
DEVELOPMENT PARTNERS
(A Massachusetts Limited Partnership)
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
for the three months ended March 31, 1996 and 1995
Increase (decrease) in cash and cash equivalents
-------------
1996 1995
---- ----
Cash flows from operating activities:
<S> <C> <C>
Interest received $17,626 $15,161
Cash received from operating revenue 665,672 612,715
Administrative expenses (38,020) (63,514)
Rental operations expenses (321,913) (276,559)
Interest paid (204,574) (207,074)
-------------------------------
Net cash provided by operating activities 118,791 80,729
Cash flows from investing activities:
Purchase of fixed assets (31,827) 0
Purchases of short-term investments (463,129) 0
Proceeds from maturities of short-term investments 427,091 29,390
Deposits 0 (4,318)
Distributions from partnership 7,292 0
-------------------------------
Net cash provided (used) by investing activities (60,573) 25,072
Cash flows from financing activities:
Distributions to partners (63,719) (139,328)
Principal payments on mortgage note (28,198) (26,005)
payable
------------- --------------
Net cash used by financing activities (91,917) (165,333)
------------- --------------
Net increase (decrease) in cash and cash equivalents (33,699) (59,532)
Cash and cash equivalents at beginning of year 532,019 176,028
------------- --------------
Cash and cash equivalents at end of year $498,320 $116,496
============= ==============
<PAGE>
DEVELOPMENT PARTNERS
(A Massachusetts Limited Partnership)
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
for the three months ended March 31, 1996 and 1995
Increase (decrease) in cash and cash equivalents
-------------
Reconciliation of net income to net cash provided by operating activities:
Three Months Ended
March 31,
1996 1995
---- ----
<S> <C> <C>
Net income $25,392 $33,321
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 104,444 104,444
Equity in (income) loss from partnership (2,235) (3,238)
Change in assets and liabilities net of
effects
from investing and financing activities:
(Increase) in real estate tax escrow (27,111) (28,115)
Decrease (increase) in accounts
and interest receivable 8,769
(Increase) decrease in prepaid expenses (1,842)
-
Increase (decrease) in accounts
payable and accrued expenses (1,481) (8,144)
(Decrease) increase in due to (from) 13,013 (5,696)
affiliates
(Decrease) increase in rents received in advance (0) (6,483)
(Decrease) increase in tenant security deposits (2,000) (3,518)
------------- --------------
Net cash provided by operating activities $118,791 $80,729
============= ==============
</TABLE>
<PAGE>
DEVELOPMENT PARTNERS
(A Massachusetts Limited Partnership)
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
----------
1. Organization of Partnership:
Development Partners (A Massachusetts Limited Partnership), (the "Partnership"),
formerly Berry and Boyle Development Partners, was formed on October 23, 1985.
GP L'Auberge Communities, L.P., a California Limited Partnership, (formerly
Berry and Boyle Management) and Berry and Boyle Realty Advisors ("Advisors") (A
Massachusetts Limited Partnership), are the General Partners. A total of 2,033
individual Limited Partners owning 36,411 Units have contributed $18,205,500 of
capital to the Partnership. At March 31, 1996, the total number of Limited
Partners was 2,042. Except under certain limited circumstances upon termination
of the Partnership, the General Partners are not required to make any additional
capital contributions. The General Partners or their affiliates will receive
various fees for services and reimbursement for various organizational and
selling costs incurred on behalf of the Partnership.
The accompanying consolidated financial statements present the activity of the
Partnership for the three months ended March 31, 1996, and 1995.
The Partnership will continue until December 31, 2010, unless earlier terminated
by the sale of all or substantially all of the assets of the Partnership, or by
the dissolution and liquidation of the joint ventures.
2. Significant Accounting Policies:
A. Basis of Presentation
The consolidated financial statements include the accounts of the
Partnership and its subsidiaries: Canyon View Joint Venture and
Broadmoor Pines Joint Venture. All intercompany accounts and
transactions have been eliminated in consolidation. The Partnership
accounts for its investment in Casabella Associates utilizing the
equity method of accounting. The Partnership's investment account is
adjusted to reflect its pro rata share of profits, losses and
distributions from Casabella Associates.
The Partnership follows the accrual method of accounting.
B. Cash and Cash Equivalents
The Partnership considers all highly liquid debt instruments purchased
with a maturity of three months or less to be cash equivalents. The
carrying value of cash and cash equivalents approximates fair value. It
is the Partnership's policy to invest cash in income-producing
temporary cash investments. The Partnership mitigates any potential
risk from such concentration of credit by placing investments with high
quality financial institutions.
C. Short-term Investments
At March 31, 1996, short term investments consist solely of various
forms of U. S. Government backed securities, with an aggregate par
value of $468,613, which mature in June 1996. In 1994, the Partnership
adopted Statement of Financial Accounting Standards No. 115,
"Accounting for Certain Investments in Debt and Equity Securities". The
Partnership has the intent and ability to hold its short term
investments to maturity. Accordingly, these securities have been
recorded at amortized cost, which approximates market value. There was
no cumulative effect recorded as a result of this accounting change.
<PAGE>
D. Significant Risks and Uncertainties
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ
from those estimates.
E. Depreciation
Depreciation is provided for by the use of the straight-line method
over estimated useful lives as follows:
Buildings and improvements 40 years
Equipment, furnishings and fixtures 5-15 years
F. Deferred Expenses
Costs of obtaining various mortgages on the properties are being
amortized over the term of the related mortgage notes payable using the
straight-line method. Buy down fees relating to permanent loan
refinancings (see Note 7) are being amortized over a three year period.
Any unamortized costs remaining at the date of a refinancing are
expensed in the year of refinancing.
G. Income Taxes
No provision is made for income taxes since the Partners are required
to include on their tax returns their pro rata share of the
Partnership's taxable income or loss. If the Partnership's tax returns
are examined by the Internal Revenue Service or a state taxing
authority, and such an examination results in a change in partnership
taxable income or loss, such change will be reported to the Partners.
H. Rental Income
Leases require the payment of rent in advance, however, rental income
is recorded as earned.
I. Long-Lived Assets
The Partnership's long-lived assets include property and equipment and
deferred expenses. The Partnership will evaluate the possible
impairment of long-lived assets whenever events or circumstances
indicate that the carrying value of the assets may not be recoverable.
<PAGE>
3. Cash and Cash Equivalents:
Cash and cash equivalents at March 31, 1996 and December 31, 1995 consisted of
the following:
1996 1995
---- ----
Cash on hand $ 117,516 $ 130,805
Certificate of deposit 202,763 100,000
Money market accounts 178,043 301,214
--------- ---------
$498,322 $532,019
======= ========
4. Joint Venture and Property Acquisitions:
The Partnership has invested in three properties located in Scottsdale and
Tucson, Arizona and Colorado Springs, Colorado. The success of the Partnership
will depend upon factors which are difficult to predict including general
economic and real estate market conditions, both on a national basis and in the
areas where the Partnership's investments are located.
Canyon View
On September 29, 1987, the Partnership acquired a majority interest in the
Canyon View Joint Venture which owns and operates a 168-unit multifamily
residential property located in Tucson, Arizona. The Partnership has been
designated as the managing joint venture partner and will control all decisions
regarding the operation and sale of the property.
In accordance with the terms of the purchase agreement and the joint venture
agreement, through March 31, 1996, the Partnership has contributed total capital
of $6,715,984 to the Canyon View Joint Venture, which was used to repay a
portion of the construction loan from a third party lender, to pay certain costs
related to the refinancing of the permanent loan, to cover operating deficits
incurred during the lease up period and to fund certain capital improvements. In
addition, the Partnership funded $745,902 of property acquisition costs which
were subsequently treated as a capital contribution to the joint venture.
For the years ended March 31, 1996 and 1995, the Canyon View Joint Venture had a
net income of $17,558 and net income of $41,688, respectively.
Net cash from operations (as defined in the joint venture agreement) will be
distributed as available to each joint venture partner not less often than
quarterly, as follows:
First, to the Partnership until it has received an annual
non-cumulative 11.25% priority return on its capital contribution for
such year.
Second, the balance 75% to the Partnership and 25% to the other joint
venture partner.
Income from operations will be allocated to the Partnership and the other joint
venture partner generally in accordance with the distribution of net cash from
operations.
Losses from operations will generally be allocated 100% to the Partnership.
In the case of certain capital transactions and distributions, as defined in the
joint venture agreement, the allocation of related profits, losses and cash
distributions, if any, would be different than as described above and would be
effected by the relative balances in the individual partners' capital accounts.
Broadmoor
On October 12, 1988, the Partnership acquired L'Auberge Broadmoor ("Broadmoor")
(formerly Broadmoor Pines), a 108-unit residential property located in Colorado
Springs, Colorado and simultaneously contributed the property to a joint venture
comprised of the Partnership and the property developer (the "Broadmoor Pines
Joint Venture"). The Partnership owns a majority interest in the Broadmoor Pines
Joint Venture and, therefore, the accounts and operations of the Broadmoor Pines
Joint Venture have been consolidated into those of the Partnership.
Through March 31, 1996, the Partnership has made cash payments in the form of
capital contributions totaling $5,959,862 and has funded $684,879 of property
acquisition costs which were treated as a capital contribution to the joint
venture.
For the three months ended March 31, 1996 and 1995, the Broadmoor Pines Joint
Venture had net income of $55,646 and $12,292, respectively.
The Partnership has been designated the managing joint venture partner of the
Broadmoor Pines Joint Venture and will have control over all decisions affecting
the Broadmoor Pines Joint Venture and the property.
Net cash from operations (as defined in the joint venture agreement) is to be
distributed as available to each joint venture partner quarterly, as follows:
First, to the Partnership an amount equal to 11.25% per annum,
noncumulative (computed daily on a simple noncompounded basis from the
date of completion funding) of its respective capital investment, as
defined in the joint venture agreement;
Second, the balance 80% to the Partnership, and 20% to the property
developer.
Losses from operations and depreciation for the Broadmoor Pines Joint Venture
are allocated 100% to the Partnership.
All profits from operations to the extent of cash distributions shall first be
allocated to the Partnership and the property developer in the same proportion
as the cash distributions. Any remaining profits are allocated 80% to the
Partnership and 20% to the property developer.
In the case of certain capital transactions and distributions as defined in the
joint venture agreement, the allocation of related profits, losses and cash
distributions, if any, would be different than as described above and would be
effected by the relative balances in the individual partners' capital accounts.
5. Investment in Partnership:
On November 5, 1990, the Partnership contributed $400,000 to purchase an
approximate 8% interest in Casabella Associates, a general partnership among the
Partnership, Development Partners II (A Massachusetts Limited Partnership)
("DPII") and Development Partners III (A Massachusetts Limited Partnership)
("DPIII"). In addition to its contribution referred to above, the Partnership
incurred $83,668 of acquisition costs, including $41,400 in acquisition fees
paid to the General Partners. The difference between the partnership's carrying
value of the investment in Casabella Associates and the amount of underlying
equity in net assets is $65,345, representing a portion of the acquisition costs
stated above that were not recorded on the books of Casabella Associates.
On September 28, 1990, Casabella Associates purchased a majority interest in the
Casabella I Joint Venture, an Arizona joint venture that owned and operated
Casabella Phase I, a 61-unit residential property located in Scottsdale,
Arizona. On April 23, 1991, Casabella Associates, acquired a majority interest
in the Casabella Joint Venture which owned Casabella Phase II, a 93-unit
residential community, located adjacent to Casabella Phase I. On that date,
Casabella Associates and EW Casabella I Limited Partnership contributed their
interests in the Casabella I Joint Venture to the Casabella Joint Venture. In
addition, the permanent lender funded a $7,320,000 permanent loan, the proceeds
of which were used to refinance the $2,700,000 loan pertaining to Phase I and,
together with cash contributions of Casabella Associates, to repay the
construction loan for Phase II. As a result of such transactions, by operation
of law, Casabella Joint Venture, which is comprised of Casabella Associates and
EW Casabella I Limited Partnership, now owns both Phases I and II of Casabella.
Casabella is now managed and operated as one single 154-unit residential
community.
On June 30, 1992, Casabella Joint Venture refinanced its original $7,320,000
permanent loan using the proceeds of a new first mortgage loan in the amount of
$7,300,000. Under the terms of the new note, monthly principal and interest
payments of $61,887, based on a fixed interest rate of 9.125%, are required over
the term of the loan.
The balance of the note will be due on July 15, 1997.
6.. Mortgage Notes Payable:
All of the property owned by the Partnership is pledged as collateral for the
mortgage notes payable outstanding at March 31, 1996 and December 31, 1995,
which consisted of the following:
1996 1995
---- ----
Canyon View $5,135,505 $5,154,887
Broadmoor 3,568,448 3,577,264
--------- ---------
$8,709,953 $8,732,151
Canyon View is subject to a nonrecourse first mortgage in the original principal
amount of $5,380,000. Under the terms of the note, monthly principal and
interest payments of $45,610, based on a fixed interest rate of 9.125%, are
required over the term of the loan. The balance of the note will be due on July
15, 1997.
Broadmoor is subject to a nonrecourse first mortgage in the principal amount of
$3,650,000. Interest only at the rate of 8% was payable monthly for the first
three years of the loan term. Commencing on September 15, 1993 monthly payments
of $31,980 including principal and interest, at the rate of 9.75%, were payable.
The balance of the note is payable on September 15, 1997.
Interest accrued at March 31, 1996 and 1995 consisted of $34,132 and $34,446,
respectively, relating to the Canyon View and Broadmoor Pines Joint Ventures.
The aggregate principal amounts of long term borrowings due during the calendar
years 1996 and 1997, respectively, are $116,824 and $8,615,327.
The principal balance of the mortgage notes payable appearing on the
consolidated balance sheet approximates the fair value of such notes.
7. Partners' Equity:
Under the terms of the Partnership Agreement profits are generally allocated 98%
to the Limited Partners and 2% to the General Partners; losses are allocated 99%
to the Limited Partners and 1% to the General Partners.
Cash distributions to the partners are governed by the Partnership Agreement and
are made, to the extent available, 98% to the Limited Partners and 2% to the
General Partners.
The allocation of the related profits, losses, and distributions, if any, would
be different than described above in the case of certain events defined in the
Partnership Agreement, such as the sale of an investment property or an interest
in a joint venture partnership.
8. Related Party Transactions:
Due to affiliates at March 31, 1996 and 1995 consisted of $22,331 and $4,911,
respectively, relating to reimbursable costs due to L'Auberge Communities, Inc.
As of March 31, 1996 and 1995, general and administrative expenses included
$21,991and $17,280, respectively, of salary reimbursements paid to the General
Partners for certain administrative and accounting personnel who performed
services for the Partnership.
The the three months ended March 31, 1996, and 1995, $32,047 and $30,832 of
property management fees had been paid or accrued to Residential
Services-L'Auberge, formerly Berry and Boyle Residential Services, an affiliate
of the General Partners of the Partnership.
9. Subsequent Event:
On May 14, 1996, the Partnership and certain affiliates consummated an agreement
with Evans Withycombe Management, Inc. and certain of its affiliates ("EWI")
which separated the interests of EWI and the Partnership, thus affording the
Partnership greater flexibility in the operation and disposition of the
properties...In consideration of a payment by the Partnership, DPII and DPIII to
EWI totaling $71,009 ($5,681 of which would be the Partnership's portion), for
EWI (i) to relinquish its contract to manage Casabella and its option to
exercise its rights of first refusal with regard to the sale of the property and
(ii) to assign all of its interest in the Casabella Joint Venture to the
Partnership, DPII and DPIII (while preserving the economic interests of the
venturer in these Joint Ventures), resulting in the dissolution of the Casabella
Joint Venture.
<PAGE>
================================================================================
BERRY AND BOYLE DEVELOPMENT PARTNERS
================================================================================
(A Massachusetts Limited Partnership)
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
----------
-6-
================================================================================
================================================================================
-9-
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Liquidity; Capital Resources
At the close of the offering on February 26, 1987, the Partnership had admitted
2,033 Limited Partners who contributed capital of $18,205,500 to the
Partnership. These offering proceeds, net of organizational and offering costs
of $2,730,825, provided $15,474,675 of net proceeds to be used for the purchase
of income-producing residential properties, including related fees and expenses,
and working capital reserves. The Partnership has expended $14,384,167 to (i)
acquire its joint venture interests in the Canyon View Joint Venture, Broadmoor
Pines Joint Venture and Casabella Associates, (ii) pay acquisition expenses,
including acquisition fees to one of the General Partners, and (iii) pay certain
costs associated with the refinancing of the Canyon View and Broadmoor Pines
permanent loans. The Partnership distributed $56,437 to the Limited Partners as
a return of capital resulting from excess reserves. The remaining net proceeds
of $1,034,071 were used to establish initial working capital reserves. These
reserves are used periodically to enable the Partnership to meet its various
financial obligations including contributions to the various joint ventures that
may be required. As of March 31, 1996, $312,736 cumulatively was contributed to
the joint ventures for this purpose.
The working capital reserves of the Partnership consist of cash and cash
equivalents and short-term investments. Together these amounts provide the
Partnership with the necessary liquidity to carry on its day-to-day operations
and to make necessary contributions to the various joint ventures. Thus far in
1996, the aggregate net decrease in working capital reserves has been $6,428.
This decrease resulted primarily from cash provided by operations of $118,791,
offset by purchases of fixed assets totaling $31,827, distributions to partners
of $63,719 and $28,198 of principal payments on mortgage notes payable.
Canyon View
As of March 31, 1996, the property was 89 % occupied, compared to 90 %
approximately one year ago. At March 31, 1996 and 1995, the market rents for the
various unit types were as follows:
Unit Type 1996 1995
--------- ---- ----
One bedroom one bath 725 $725
Two bedroom two bath 810 810
Two bedroom two bath w/den 980 980
Broadmoor Pines
As of March 31, 1996, the property was 88.8% occupied, compared to 86 %
approximately one year ago. At March 31, 1996 and 1994, the market rents for the
various unit types were as follows:
Unit Type 1996 1995
--------- ---- ----
One bedroom two bath w/den $864 $864
Two bedroom two bath 975 975
Two bedroom two bath w/den 1,175 1,175
Casabella
As of March 31, 1996, the property was 96 % occupied, compared to 95 %
approximately one year ago. At March 31, 1996 and 1994, the average monthly
rents collected for the various unit types were as follows:
Unit Type 1996 1995
--------- ---- ----
One bedroom two bath w/den $805 $805
Two bedroom two bath 930 930
Two bedroom two bath w/den 1,136 1,136
Results of Operations
The Partnership's operating results for the three months ended March 31, 1996
consisted of interest earned on short-term investments of $8,209, administrative
expenses of $58,256, the Partnership's share of the income from Casabella
Associates of $2,235 and the income allocated from Canyon View and Broadmoor
Pines, as follows:
Canyon Broadmoor
View Pines
Total revenue $365,592 $302,728
Expenses:
General and administrative 10 0
Operations 171,654 114,434
Depreciation and amortization 58,921 45,523
Interest 117,449 87,125
Equity in (income) loss from partnership - -
---------------- ------------------
348,034 247,082
---------------- ------------------
Net income $17,558 $55,646
================ ==================
The Partnership's operating results for the three months ended March 31, 1995
consisted of interest earned on short-term investments of $14,775,
administrative expenses of $38,675, the Partnership's share of the loss from
Casabella Associates of $3,238 and the income allocated from Canyon View and
Broadmoor Pines, as follows:
Canyon Broadmoor
View Pines
Revenue $368,149 $254,953
Expenses:
General and administrative 1,745 1,537
Operations 146,728 107,691
Depreciation and amortization 58,921 45,523
Interest 119,066 87,908
----------------- -----------------
326,460 242,659
----------------- -----------------
Net income (loss) $41,689 $12,294
================= =================
Comparison of Operating Results for the Three Months Ended March 31, 1996 and
1995:
Interest income decreased 44% over the prior period as a result of lower
interest rates on the Partnership's short term investments. General and
administrative expenses increased 39% due to increased legal and accounting
expense, as well as the costs associated with the transition of the Wellesley
office to Colorado Springs. Operating expenses increased 12% as a result of
increases in repairs and maintenance, salaries and wages, and advertising and
promotion.
Thus far in 1996, the Partnership has made the following cash distributions to
its Partners:
Limited Partners $ 63,719
General Partners -
$ 63,719
<PAGE>
PART II - OTHER INFORMATION
-----------------
ITEM 1. Legal Proceedings
Response: None
ITEM 2. Changes in Securities
Response: None
ITEM 3. Defaults Upon Senior Securities
Response: None
ITEM 4. Submission of Matters to a Vote of Security Holders
Response: None
ITEM 5. Other Information
Response: None
ITEM 6. Exhibits and Reports on Form 8-K
Response: None
SIGNATURES
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.
DEVELOPMENT PARTNERS
(A Massachusetts Limited Partnership)
By: GP L'Auberge Communities, L.P., a California Limited Partnership,
General Partner
By: L'Auberge Communities, Inc., its General Partner
By: ____/s/ Stephen B. Boyle________________
President
Date: _________________________, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Dec-31-1996
<PERIOD-END> Mar-31-1996
<CASH> 498,322
<SECURITIES> 464,957
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 22,107,883
<DEPRECIATION> (4,420,416)
<TOTAL-ASSETS> 19,087,489
<CURRENT-LIABILITIES> 345,625
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 8,703,953
<TOTAL-LIABILITY-AND-EQUITY> 19,087,489
<SALES> 0
<TOTAL-REVENUES> 676,529
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 446,563
<LOSS-PROVISION> 0
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