<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended JUNE 30, 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 number 0-16805
ASSOCIATED PLANNERS REALTY FUND
(Exact name of registrant as specified in its charter)
CALIFORNIA 95-4036980
(State or other Jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
5933 W. CENTURY BLVD., SUITE 900
LOS ANGELES, CALIFORNIA 90045
(Address of principal executive offices)
(Zip Code)
(310) 670-0800
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes u No
<PAGE>
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
ITEM 1. FINANCIAL STATEMENTS
In the opinion of the General Partner of Associated Planners Realty Fund
(the"Partnership"), all adjustments necessary for a fair presentation of the
Partnership's results for the three and six months ended June 30, 1996 and
1995, have been made in the following financial statements which are
normal and recurring in nature. However, such financial statements are
unaudited and are subject to any year-end adjustments that may be necessary.
<TABLE>
BALANCE SHEETS
JUNE 30, 1996 (UNAUDITED) AND DECEMBER 31, 1995
<CAPTION>
JUNE 30, DECEMBER 31,
1996 1995
<S> <C> <C>
REAL ESTATE, net of accumulated
depreciation (Note 2) $5,779,997 $5,843,681
CASH 250,998 103,300
OTHER ASSETS 35,695 64,089
$6,066,690 $6,011,070
LIABILITIES AND PARTNERS' EQUITY
CONSTRUCTION LOAN PAYABLE 1,225,950 1,225,950
ACCOUNTS PAYABLE (Note 5) 149,026 29,036
SECURITY DEPOSITS AND PREPAID RENT 44,133 44,848
TOTAL LIABILITIES 1,419,109 1,299,834
MINORITY INTEREST 214,915 232,968
COMMITMENTS AND CONTINGENCIES (Note 5)
PARTNERS' EQUITY:
limited Partner:
$1,000 stated value per unit;
authorized 7,500 units;
issued - 7,499 4,392,657 4,133,882
General Partner: 40,009 344,386
TOTAL PARTNERS EQUITY 4,432,666 4,478,268
$6,066,690 $6,011,070
</TABLE>
[FN]
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<PAGE>
<TABLE>
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENTS OF PARTNERS' EQUITY
SIX MONTHS ENDED JUNE 30, 1996
(UNAUDITED)
<CAPTION>
LIMITED PARTNERS GENERAL
TOTAL UNITS AMOUNT PARTNER
<S> <C> <C> <C> <C>
BALANCE, DECEMBER 31, 1995 $4,478,268 7,499 $4,133,882 $344,386
Net income 81,798 --- 67,887 13,911
Distributions to general partners (12,740) --- --- (12,740)
Distributions to limited partners (114,660) --- (114,660) ---
Reallocation of balances
prior to January 1, 1996 (Note 7) --- --- 305,548 (305,548)
BALANCE, JUNE 30, 1996 $4,432,666 7,499 $4,392,657 $40,009
SIX MONTHS ENDED JUNE 30, 1995
(UNAUDITED)
LIMITED PARTNERS GENERAL
TOTAL UNITS AMOUNT PARTNER
BALANCE, DECEMBER 31, 1994 $5,985,898 7,499 $5,653,977 $331,921
Net income 223,755 --- 195,365 28,390
Distributions to limited partners (150,080) --- (150,080) ---
BALANCE, JUNE 30, 1995 $6,059,573 7,499 $5,699,262 $360,311
</TABLE>
[FN]
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
<PAGE>
<TABLE>
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENTS OF INCOME
THREE AND SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(UNAUDITED)
<CAPTION>
THREE MONTHS THREE MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
REVENUE:
Rental $178,132 $152,753 $352,098 $341,771
Gain on sale of property --- 116,749 --- 116,749
Interest 2,720 9,845 3,702 10,625
180,852 279,347 355,800 469,145
EXPENSES:
Operating 43,704 30,371 91,506 87,168
Property taxes 7,965 10,927 15,596 24,924
Property management fees 8,733 6,836 17,310 16,793
Unealized (gain) loss in
government securities --- --- --- (98)
General and administrative 15,238 23,830 26,675 46,249
Depreciation 31,842 30,591 63,684 66,823
Interest expense 39,361 --- 41,178 ---
146,843 102,555 255,949 241,859
MINORITY INTEREST
INCOME (LOSS) OF
JOINT VENTURE 460 1,502 18,053 3,531
NET INCOME $34,549 $175,290 $81,798 $223,755
NET INCOME PER
LIMITED PARTNERSHIP UNIT $ 3.76 $20.67 $9.05 $26.05
</TABLE>
[FN]
See accompanying notes to financial statements.
<PAGE>
<TABLE>
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 1996 AND 1995
(UNAUDITED)
<CAPTION>
SIX MONTHS SIX MONTHS
ENDED ENDED
JUNE 30, 1996 JUNE 30, 1995
<S> <C> <C>
Cash Flow from operating activities:
Net income $81,798 $223,755
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 63,684 66,823
Net proceeds from sale of investment
in government securities account --- 55,652
Unrealized loss (gain)
investment in government securities --- (98)
Minority interest in net income (loss) (18,053) (3,531)
Gain on sale of property --- (116,749)
Increase (decrease) from changes in:
Other assets 28,394 62,209
Accounts payable 119,990 (15,877)
Security deposits (715) 10,736
Net cash provided by operating activities
275,098 282,920
Cash flows used in investing activities:
Furniture and fixture additions --- (11,746)
Construction in progress --- (751,490)
Proceeds from sale of property --- 1,517,819
Net cash provided by investing activities --- 754,583
Cash flows used in financing activities:
Construction loan proceeds --- 672,675
Distributions to general partners (12,740) ---
Distributions to limited partners (114,660) (150,080)
Net cash provided by (used in)
financing activities (127,400) 522,595
Net increase in cash and cash equivalents 147,698 1,560,098
Cash and cash equivalents at
beginning of period 103,300 36,227
CASH AND CASH EQUIVALENTS AT END OF PERIOD $250,998 $1,596,325
</TABLE>
[FN]
See accompanying notes to financial statements
<PAGE>
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
SUMMARY OF ACCOUNTING POLICIES
BUSINESS
Associated Planners Realty Fund (the "Partnership"), a California limited
partnership, was formed on November 19, 1985 under the Revised Limited
Partnership Act of the State of California. The Partnership was formed
to acquire income-producing real property throughout the United States
with emphasis on properties located in California and southwestern states.
The Partnership purchases such properties on an all cash basis and intends
to own and operate such properties for investment over an anticipated holding
period of approximately five to ten years.
BASIS OF PRESENTATION
The consolidated financial statements do not give effect to any assets that
the partners may have outside of their interest in the partnership, nor to
any personal obligations, including income taxes, of the partners.
The consolidated financial statements include the accounts of Associated
Planners Realty Fund and all joint ventures in which it has a majority
interest.
RENTAL REAL ESTATE AND DEPRECIATION
Assets are stated at cost. Depreciation is computed using the straight-line
method over estimated useful lives ranging from five to 35 years.
In the event that facts and circumstances indicate that the cost of an asset
may be impaired, an evaluation of recoverability would be performed.
If an evaluation is required, the estimated future undiscounted cash flows
associated with the asset would be compared to the carrying amount to
determine if a write-down to market value is required.
RENTAL INCOME
Rental revenue is recognized on a straight-line basis to the extent that
rental revenue is deemed collectible.
<PAGE>
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
SUMMARY OF ACCOUNTING POLICIES
STATEMENTS OF CASH FLOWS
For the purpose of the statements of cash flows, the Partnership considers
cash in the bank and all highly liquid investments purchased with original
maturities of three months or less, to be cash and cash equivalents.
USE OF ESTIMATES
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.
RECLASSIFICATIONS
For comparative purposes, certain prior year amounts have been reclassified
to conform to the current year presentation.
NEW ACCOUNTING PRONOUNCEMENTS
Statement of Financial Accounting Standards No. 121 "Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to Be
Disposed of" (SFAS No. 121) issued by the Financial Accounting Standards
Board is effective for financial statements for fiscal years beginning
after December 15, 1995. The new standard establishes new guidelines
regarding when impairment losses on long-lived assets, which include plant
and equipment, and certain identifiable intangible assets, should be
recognized and how impairment losses should be measured. The Partnership
elected adoption of SFAS No. 121 on January 1, 1996. This adoption had no
effect on the statement of income for the six months ended June 30, 1996 as
there were no impairment amounts recorded during the period.
<PAGE>
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
THREE AND SIX MONTHS ENDED JUNE 30, 1996 AND 1995 (UNAUDITED)
AND YEAR ENDED DECEMBER 31, 1995
NOTE 1- NATURE OF PARTNERSHIP
The Partnership began accepting subscriptions in March 1986 and completed its
funding in December 1987.
Under the terms of the partnership agreement, the General Partner, West Coast
Realty Advisors, is entitled to cash distributions ranging from 10% to 15%.
The General Partner is also entitled to net income or loss allocations
varying from 1% to 15% and 1% depreciation and amortization allocations
in accordance with the partnership agreement.
NOTE 2- RENTAL REAL ESTATE
The Partnership currently has interests in the following four rental real
estate properties. Two are wholly-owned and two are jointly owned by the
Partnership (81.2%) and an affiliate (18.8%):
Location (Property Name) Date Purchased Original Acquisition
Cost
Encinitas, California
(179 Calle Magdalena) December 31, 1986 $ 555,743
Encinitas, California
(187 Calle Magdalena) December 31, 1986 639,697
Clovis, California January 23, 1987 1,208,990
Simi Valley, California November 12, 1987 2,620,217
The major categories of property are:
June 30, 1996 December 31, 1995
Land $2,361,894 $2,361,894
Building and Improvements 4,404,947 4,404,947
Furniture and Fixtures 46,660 46,660
6,813,501 6,813,501
Less accumulated depreciation 1,033,504 969,820
Net rental real estate $5,779,997 $5,843,681
<PAGE>
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
THREE AND SIX MONTHS ENDED JUNE 30, 1996 AND 1995 (UNAUDITED)
AND YEAR ENDED DECEMBER 31, 1995
NOTE 2- RENTAL REAL ESTATE (CONTINUED)
A significant portion of the Partnership's rental revenue was earned from
a tenant whose individual rent represented more than 10% of total rental
revenue. Specifically:
One tenant accounted for 38% in 1996;
One tenant accounted for 38% in 1995;
NOTE 3 - RELATED PARTY TRANSACTIONS
(a) For Partnership management services rendered to the Partnership,
the General Partner is entitled to receive 10% of all distributions of
cash from operations. These amounts totaled $6,791 for the quarter ended
June 30, 1996 and $8,332 for the quarter ended June 30, 1995, and $12,740
for the six months ended June 30, 1996 and $16,664 for the six months
ended June 30, 1995. The amounts paid to the general partner in 1995 were
treated as an expense of the Partnership, while the amounts paid in 1996
were treated as distributions to the general partner (See Note 7).
(b) For administrative services provided to the Partnership, the General
Partner is entitled to reimbursement for the cost of certain personnel
and relevant expenses. These amounts totaled $3,000 for the three months
ended June 30, 1996 and June 30, 1995, and $6,000. for the six months ended
June 30, 1996 and 1995.
(c) Property management fees incurred, in accordance with the Partnership
Agreement, to West Coast Realty Management, Inc., an affiliate of the
corporate General Partner, totaled $8,733 for the quarter ended
June 30, 1996, and $6,836 for the quarter ended June 30, 1995, and
$17,309 for the six months ended June 30, 1996 and $16,793 for the six
months ended June 30, 1995.
<PAGE>
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
THREE AND SIX MONTHS ENDED JUNE 30, 1996 AND 1995 (UNAUDITED)
AND YEAR ENDED DECEMBER 31, 1995
(continued)
NOTE 4- CONSTRUCTION IN PROGRESS AND CONSTRUCTION LOAN PAYABLE
In January 1995, the Partnership closed escrow on a parcel of land adjacent
to the Shaw Villa Shopping Center. The purchase price of the land was
$206,749, including a $13,102 acquisition fee paid to the Advisor. The
purchase was financed using $23,602 in cash, and the remainder by a one
year construction loan from Valliwide Bank of Fresno. The loan bears
interest at 2% over the bank's prime rate (8.25% at June 30, 1996).
The total construction loan commitment is for $1,365,000 which matures on
October 5, 1996. Borrowings on the construction loan totaled $1,225,950
as of December 31, 1995 and June 30, 1996. The construction loan
amortization is interest only with payments via additional draws against
this loan. The construction was completed during 1995 and total
construction costs of $1,372,900 was allocated to land, building and
improvements. Included in construction costs is $87,838 in construction
loan interest that was capitalized.
The carrying amount of the loan is a reasonable estimate of fair value of
the construction loan payable because the interest rates approximate the
borrowing rates currently available for mortgage loans with similar
terms and average maturities.
NOTE 5- COMMITMENTS
The Partnership has an agreement to reimburse a tenant $165,440 in
improvement costs incurred in connection with construction move-in costs.
The Partnership has recorded a liability for this agreement in accounts
payable as of June 30,1996. This amount is expected to be paid by
September 30, 1996.
<PAGE>
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
THREE AND SIX MONTHS ENDED JUNE 30, 1996 AND 1995 (UNAUDITED)
AND YEAR ENDED DECEMBER 31, 1995
NOTE 6- NET INCOME AND CASH DISTRIBUTIONS PER LIMITED PARTNERSHIP LIST
The Net Income per Limited Partnership Unit was computed in accordance with
the partnership agreement using the weighted average number of outstanding
limited partnership units of 7,499 for 1996 and 1995.
The Limited Partner cash distributions, computed in accordance with
the Partnership Agreement, were as follows:
Outstanding Amount Total
Record Date Units Per Unit Distribution
March 31, 1996 7,499 8.15 61,117
December 31, 1995 7,499 7.14 53,543
Total $114,660
March 31, 1995 7,449 10.00 75,040
December 31, 1994 7,449 10.00 75,040
Total $150,080
Distributions were paid in the fiscal quarter following the record date.
NOTE 7 - REALLOCATION OF PARTNER BALANCES
Per the provisions of Section 11.1 (V)(ii) of the Partnership Agreement,
the General Partner determined that action was necessary to "cure the
ambiguities" caused by the Agreement itself. The ambiguity involved
the treatment of the partnership management fee, being paid to the General
Partner, as an expense of the Partnership, when in fact, it should have
been treated as a general partner withdrawal of capital. In order to
properly reflect this inception to date correction, a transfer of
$305,548 was made from the General Partner's capital account to the
Limited Partners capital account during the quarter ended March 31, 1996.
<PAGE>
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
THREE AND SIX MONTHS ENDED JUNE 30, 1996 AND 1995 (UNAUDITED)
AND YEAR ENDED DECEMBER 31, 1995
NOTE 8 - NEW ACCOUNTING PRONOUNCEMENTS
Statement of Financial Accounting Standards No. 121 "Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to Be
Disposed of" (SFAS No. 121) issued by the Financial Accounting Standards
Board is effective for financial statements for fiscal years beginning
after December 15, 1995. The new standard establishes new guidelines
regarding when impairment losses on long-lived assets, which include plant
and equipment, and certain identifiable intangible assets, should be
recognized and how impairment losses should be measured. The Partnership
elected adoption of SFAS No. 121 on January 1, 1996. This adoption had no
effect on the statement of income for the six months ended June 30, 1996 as
there were no impairment amounts recorded during the period.
NOTE 9 - SUBSEQUENT EVENTS
The Partnership distributed $61,117 ($8.15 per unit) on August 6, 1996
to Limited Partners of record as of June 30, 1996.
<PAGE>
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
INTRODUCTION
Associated Planners Realty Fund (the "Partnership") was organized in
November 1985, under the California Revised Limited Partnership Act. The
Partnership began offering units for sale on March 28, 1986. As of
December 27, 1987, the Partnership had raised $7,499,000 in gross
capital contributions. The Partnership netted approximately $6,720,000
after sales commissions and syndication costs.
The Partnership was organized for the purpose of investing in, holding,
and managing improved, leveraged income-producing property, such as
residential property, office buildings, commercial buildings, industrial
properties, and shopping centers. The Partnership intends to own and
operate such properties for investment over an anticipated holding period
of approximately five to ten years.
The Partnership's principal investment objectives are to invest in rental
real estate properties which will:
(1) Preserve and protect the Partnership's invested capital;
(2) Provide for cash distributions from operations;
(3) Provide gains through potential appreciation; and
(4) Generate Federal income tax deductions so that during the early
years of property operations, a portion of cash distributions may
be treated as a return of capital for tax purposes and, therefore,
may not represent taxable income to the limited partners.
The ownership and operation of any income-producing real estate is subject
to those risks inherent in all real estate investments, including national
and local economic conditions, the supply and demand for similar
types of properties, competitive marketing conditions, zoning changes,
possible casualty losses, increases in real estate taxes, assessments, and
operating expenses, as well as others.
<PAGE>
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
The Partnership is operated by the General Partner subject to the terms of
the Amended and Restated Agreement of Limited Partnership. The Partnership
has no employees, and all administrative services are provided by West
Coast Realty Advisors, Inc., the General Partner.
RESULTS OF OPERATIONS
Operations for the quarter ended June 30, 1996, reflect an entire period
of operations for the Partnership's properties. Rental revenue for the
three and six months ended June 30, 1996 increased from that for the three
and six months ended June 30, 1995 by $25,379 and $10,327, respectively,
due to increased occupancy of the single tenant Santa Fe Business Park
Building, offset by the sale of the Shurgard Mini-Warehouse facility on
May 15, 1995. Costs and expenses related to the properties operation
increased for the three and six months ended June 30, 1996 compared to the
three and six months ended June 30, 1995 by $43,288 and $14,090,
respectively, primarily due to interest expense of $39,361 for the three
months ended June 30, 1996 and $41,178 for the six months ended June 30, 1996.
This interest pertained to the construction loan related to the Clovis,
California property. These interest charges were incurred after the
completion of construction. In addition to the increase in interest
expense, property management fees increased due to increased occupancy at
the Santa Fe Business Park Building and operating costs increased due to
higher property insurance costs, consulting fees, general repairs and
maintenance costs and an adjustment to the 1995 minority interest account
balance. This increases were offset by lower property taxes, accounting
and legal costs and partnership operating costs.
The Partnership generated $145,482 in income from operations before
depreciation of $63,684 for the six months ended June 30, 1996 compared to
$290,578 in income from operations before depreciation of $66,823 for the
six months ended June 30, 1995. This decrease is primarily attributable
to the gain of $116,749 recognized during the three months ended
June 30, 1995 relating to the sale of the Puyallup, Washington
mini-warehouse building to Shurgard Storage Centers, Inc. on May 15, 1995.
<PAGE>
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
LIQUIDITY AND CAPITAL RESOURCES
During the six months ended June 30, 1996, $275,098 in cash was provided
by operating activities. This resulted primarily from net cash basis
income of $145,482 from operations (net income plus depreciation expense)
plus a $119,990 increase in accounts payable (primarily attributable to a
$165,440 liability to reimburse a tenant in improvement costs incurred in
connection with construction move-in costs. These additions to operating
activities were offset by a $715 decrease in security deposits and prepaid
rents, and a $18,053 adjustment to the minority interest account balance for
the Encinitas properties. In contrast, during the six months ended
June 30, 1995, $282,920 was provided by operating activities. This
resulted primarily from cash basis income of $173,829 (net income plus
depreciation expense less gain on sale of property), plus $55,652 in proceeds
received from the liquidation of the government securities account and a
$62,209 decrease in other assets (primarily due to the reclassification
of deposits used in construction in progress of the Shaw Villa property),
less a $15,877 decrease in accounts payable (attributable to normal
decrease in trade payable). There were no investing activities for the six
months ended June 30, 1996. In contrast, $754,583 in cash was provided
by investing activities for the six months ended June 30, 1995. This
resulted from $1,517,819 in gross proceeds received in connection with the
sale of the Puyallup, Washington mini-warehouse, offset by $751,490 in
construction in progress costs associated with the Shaw Villa property and
$11,746 in restaurant equipment purchased for a Shaw Villa property tenant.
Cash used in financing activities for the six months ended June 30, 1996
totaled $127,400, of which $114,660 was distributions paid to the limited
partners and $12,740 paid to the general partners. In contrast, $522,595
was provided by financing activities for the six months ended June 30, 1995.
This resulted from $672,675 in proceeds borrowed in connection with the
construction in progress of the Shaw Villa property offset by $150,080
in distributions paid to the limited partners.
<PAGE>
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
LIQUIDITY AND CAPITAL RESOURCES (CONT.)
In January 1995, the Partnership closed escrow on a parcel of land adjacent
to the Shaw Villa Shopping Center. The purchase price of the land was
$206,749, including a $13,102 acquisition fee paid to the Advisor. The
purchase was financed using $23,602 in cash, and the remainder by a one
year construction loan from Valliwide Bank of Fresno, that was subsequently
extended to October 5, 1996. The loan bears interest at 2% over the bank's
prime rate (8.25% at June 30, 1996). The total construction loan
commitment is for $1,365,000 which matures on October 5, 1996.
Borrowings on the construction loan totaled $1,225,950. The construction
loan amortization is interest only with payments of $41,178 paid during the
six months ended June 30, 1996. The construction was completed during 1995
and total construction costs of $1,372,900 was allocated to land, building
and improvements. Included in construction costs is $87,838 in
construction loan interest that was capitalized.
The carrying amount is a reasonable estimate of fair value of the construction
loan payable because the interest rates approximate the borrowing
rates currently available for mortgage loans with similar terms and
average maturities.
Net income per limited partner unit decreased from $26.05 for the six
months ended June 30, 1995 to $9.05 for the six months ended June 30, 1996,
primarily due to the $116,749 gain on sale of the Shurgard Mini-warehouse
facility on May 15, 1995.
<PAGE>
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)
NEW ACCOUNTING PRONOUNCEMENTS
Statement of Financial Accounting Standards No. 121 "Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to Be
Disposed of" (SFAS No. 121) issued by the Financial Accounting Standards
Board is effective for financial statements for fiscal years beginning
after December 15, 1995. The new standard establishes new guidelines
regarding when impairment losses on long-lived assets, which include plant
and equipment, and certain identifiable intangible assets, should be
recognized and how impairment losses should be measured. The Partnership
elected adoption of SFAS No. 121 on January 1, 1996. This adoption had no
effect on the statement of income for the six months ended June 30, 1996 as
there were no impairment amounts recorded during the period.
<PAGE>
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
PART II
O T H E R I N F O R M A T I O N
ITEM 1.LEGAL PROCEEDINGS
None
ITEM 2.CHANGES IN SECURITIES
None
ITEM 3.DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4.SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5.OTHER INFORMATION
None
ITEM 6.EXHIBIT AND REPORTS ON FORM 8-K
(a) Information required under this section has been included in the
financial statements.
(b) Reports on Form 8-K
None
<PAGE>
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
S I G N A T U R E S
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.
ASSOCIATED PLANNERS REALTY FUND
A California Limited Partnership
(Registrant)
August 14, 1996 By: WEST COAST REALTY ADVISORS, INC.
A California Corporation,
General Partner
Neal E. Nakagiri
Vice President/Secretary
August 14, 1996
Michael G. Clark
Vice President/Treasurer
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000785791
<NAME> ASSOCIATED PLANNERS REALTY FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 250,998
<SECURITIES> 0
<RECEIVABLES> 0
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0
0
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</TABLE>
