<PAGE> 1
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, 2000
--------------
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 [X] No [ ]
<PAGE> 2
ASSOCIATED PLANNERS REALTY FUND
INDEX
PART I - FINANCIAL INFORMATION
--------------------------------------------------------------------------------
PAGE NO.
--------------------------------------------------------------------------------
Item 1. Financial Statements
Balance Sheets -
June 30, 2000 and December 31, 1999 3
Statements of Partner's Equity -
Six Months Ended June 30, 2000 and 1999 4
Statements of Income -
Three Months and Six Months Ended June 30, 2000 and 1999 5
Statements of Cash Flow -
Six Months Ended June 30, 2000 and 1999 6
Summary of Accounting Policies 7
Notes to Financial Statements 9
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 13
PART II- OTHER INFORMATION
Item 1. Exhibit and reports on Form 8-K 19
<PAGE> 3
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
BALANCE SHEETS
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------
JUNE 30, 2000 December 31, 1999
(UNAUDITED)
---------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Rental real estate held for sale, less accumulated
depreciation (Note 2) $2,405,960 $4,385,483
Cash and cash equivalents 22,099 5,223
Note receivable (Note 3) 1,737,979
Other assets 17,548 14,430
------------------------------------------------------------------------------------------------------
TOTAL ASSETS $4,183,586 $4,405,136
LIABILITIES AND PARTNERS' EQUITY
LIABILITIES
Accounts payable:
Trade $ -- $ 2,270
Related party (Note 5) 7,053 13,934
Notes payable (Note 4) 1,387,737 1,405,674
Security deposits and prepaid rent 18,982 22,079
Other liabilities 10,660 --
------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 1,424,432 1,443,957
PARTNERS' EQUITY (NOTES 6 AND 7) LIMITED PARTNERS:
$1,000 stated value per unit - authorized
7,500 units; issued and outstanding 7,499 2,627,963 2,875,885
General partner 131,191 85,294
------------------------------------------------------------------------------------------------------
TOTAL PARTNERS' EQUITY 2,759,154 2,961,179
------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND PARTNERS' EQUITY $4,183,586 $4,405,136
======================================================================================================
</TABLE>
See accompanying notes to financial statements.
<PAGE> 4
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENTS OF PARTNERS' EQUITY
SIX MONTHS ENDED JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
LIMITED PARTNERS GENERAL
TOTAL UNITS AMOUNT PARTNER
<S> <C> <C> <C> <C>
BALANCE AT DECEMBER 31, 1999 $ 2,961,179 7,499 $ 2,875,885 $ 85,294
Net income 277,911 -- 232,014 45,897
Distributions to limited partners (479,936) -- (479,936) --
----------- ----- ----------- -----------
BALANCE AT JUNE 30, 2000 $ 2,759,154 7,499 $ 2,627,963 $ 131,191
=========== ===== =========== ===========
SIX MONTHS ENDED JUNE 30, 1999
(UNAUDITED)
<CAPTION>
LIMITED PARTNERS GENERAL
TOTAL UNITS AMOUNT PARTNER
<S> <C> <C> <C> <C>
BALANCE AT DECEMBER 31, 1998 $ 4,218,566 7,499 $ 4,164,156 $ 54,410
Net income 429,933 -- 381,207 48,726
Distributions to limited partners (1,581,371) -- (1,581,371) --
Distributions to general partner (Note 5 (a)) (31,502) -- -- (31,502)
----------- ----- ----------- ---------
BALANCE AT JUNE 30, 1999 $ 3,035,626 7,499 $ 2,963,992 $ 71,634
=========== ===== =========== =========
</TABLE>
See accompanying notes to financial statements.
<PAGE> 5
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENTS OF INCOME
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
THREE MONTHS Three Months SIX MONTHS Six Months
ENDED Ended ENDED Ended
JUNE 30, 2000 June 30, 1999 JUNE 30, 2000 June 30, 1999
(UNAUDITED) (Unaudited) (UNAUDITED) (Unaudited)
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
REVENUES
Rental (Note 2) $ 76,692 $ 124,586 $ 151,680 $ 275,050
Gain on sale of property -- -- 291,151 380,849
Interest 24,997 425 37,791 13,676
---------------------------------------------------------------------------------------------------------------------------
101,689 125,011 480,622 669,575
---------------------------------------------------------------------------------------------------------------------------
COSTS AND EXPENSES
Operating 7,683 10,962 25,049 40,208
Property taxes 5,617 10,350 13,070 20,699
Property management fees (Note 5(c)) 4,281 6,268 7,848 13,837
General and administrative 31,268 17,875 53,657 46,943
Depreciation and amortization 17,406 31,847 39,424 63,693
Interest expense (Note 4) 42,388 32,495 63,663 54,262
---------------------------------------------------------------------------------------------------------------------------
108,643 109,797 202,711 239,642
---------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) $ (6,954) $ 15,214 277,911 429,933
===========================================================================================================================
NET INCOME (LOSS) PER LIMITED PARTNERSHIP
UNIT (Note 6) $ (1.04) $ 1.44 $ 30.94 $ 50.83
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE> 6
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
SIX MONTHS Six Months
ENDED Ended
JUNE 30, 2000 June 30, 1999
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (UNAUDITED) (Unaudited)
-----------------------------------------------------------------------------------------------
<S> <C> <C>
CASH FLOW FROM OPERATING ACTIVITIES:
Net income $ 277,911 $ 429,933
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 39,424 63,693
Gain on sale of property (291,151) (380,849)
Increase (decrease) from changes in:
Other assets (3,118) 10,740
Accounts payable (9,151) 13,199
Security deposits and prepaid rent (3,097) (16,037)
Other liabilities 10,660 --
----------- -----------
NET CASH PROVIDED BY OPERATING ACTIVITIES 21,478 120,679
----------- -----------
CASH FLOWS PROVIDED BY INVESTING ACTIVITIES:
Proceeds from sale of rental real estate 481,250 1,283,129
Principal payments from Note Receivable 12,021 --
----------- -----------
NET CASH PROVIDED BY INVESTING ACTIVITIES 493,271 1,283,129
----------- -----------
CASH FLOWS USED IN FINANCING ACTIVITIES:
Repayment of notes payable (17,937) (16,382)
Distributions to minority interests -- (2,270)
Distributions to limited partners (479,936) (1,581,371)
Distributions to general partner -- (31,502)
----------- -----------
NET CASH USED IN FINANCING ACTIVITIES (497,873) (1,631,525)
----------- -----------
(497,873)
NET INCREASE, (DECREASE) IN CASH AND CASH EQUIVALENTS 16,876 16,876
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 5,223 257,749
----------- -----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 22,099 $ 30,032
=========== ===========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for interest $ 63,663 $ 54,262
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING
ACTIVITY:
Note Receivable issued in sale of real estate $ 1,750,000 --
</TABLE>
See accompanying notes to financial statements.
<PAGE> 7
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 an
emphasis on properties located in California and the southwestern states. The
Partnership purchased these properties on an all cash basis or on a moderately
leveraged basis and intended on owning and operating such properties for
investment over an anticipated holding period of approximately five to ten
years.
BASIS OF PRESENTATION
The 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.
RENTAL REAL ESTATE AND DEPRECIATION
Assets are stated at cost. Depreciation is computed using the straight-line
method over estimated useful lives ranging from 5 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 and collection is probable.
STATEMENT OF CASH FLOWS
For the purposes 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.
<PAGE> 8
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
SUMMARY OF ACCOUNTING POLICIES
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.
COMPREHENSIVE INCOME (LOSS)
Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive
Income," ("SFAS 130") establishes standards for reporting and display of
comprehensive income and its components in a full set of general-purpose
financial statements. Comprehensive income is comprised of net income and all
changes to stockholders' equity except those due to investments by owners and
distribution to owners. The Company does not have any components of
comprehensive income (loss) for the six months ended June 30, 2000 or 1999.
NET INCOME (LOSS) PER LIMITED PARTNERSHIP UNIT
Net income (loss) per limited partnership unit is calculated by dividing the
limited partners' share of net income (loss) by the weighted average number of
limited partnership units outstanding for the period.
<PAGE> 9
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
THREE AND SIX MONTHS ENDED JUNE 30, 2000 AND 1999 (UNAUDITED)
AND YEAR ENDED DECEMBER 31, 1999
NOTE 1 - PRESENTATION OF INTERIM INFORMATION
In the opinion of the General Partner of Associated Planners Realty Fund (the
"Partnership"), the accompanying unaudited financial statements include all
normal adjustments considered necessary to present fairly the financial position
as of June 30, 2000, and the results of operations and cash flows for the three
and six months ended June 30, 2000 and 1999. Interim results are not necessarily
indicative of results for a full year.
The financial statements and notes are presented as permitted by Form 10-Q, and
do not contain certain information included in the Partnership's audited
consolidated financial statements and notes for the fiscal year ended December
31, 1999.
NOTE 2 - RENTAL REAL ESTATE HELD FOR SALE
As of June 30, 2000, the Partnership owns the following rental real estate
property.
<TABLE>
<CAPTION>
Location (Property Name) Date Purchased Cost
--------------------------------------------------------------------------------------------------
<S> <C> <C>
Clovis, California January 23, 1987 $2,854,220
The major categories of property are: June 30, 2000 December 31, 1999
--------------------------------------------------------------------------------------------------
Land $878,646 $1,631,966
Building and Improvements 1,959,465 3,822,668
Furniture and Fixtures 16,109 16,109
--------------------------------------------------------------------------------------------------
2,854,220 5,470,743
Less accumulated depreciation 448,260 1,085,260
--------------------------------------------------------------------------------------------------
Net rental real estate held for sale $2,405,960 $4,385,483
==================================================================================================
</TABLE>
A significant portion of the Partnership's rental revenue was earned from
tenants whose individual rents represent more than 10% of total rental revenue.
Specifically:
Two tenants accounted for 49% and 14%, respectively, for the six months ended
June 30, 2000;
Two tenants accounted for 56% and 42%, respectively, for the six months ended
June 30, 1999.
<PAGE> 10
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
SIX MONTHS ENDED JUNE 30, 2000 AND 1999 (UNAUDITED)
AND YEAR ENDED DECEMBER 31, 1999 (CONTINUED)
NOTE 3 - NOTE RECEIVABLE
On February 4, 2000, the Partnership sold its property located in the Simi
Valley of California to an unaffiliated buyer for $2,350,000 and received cash
and a note receivable for $1,750,000. The note, which is secured by the property
sold, provides for interest at 6% and monthly payments of principal and interest
of $10,492. The note matures on February 4, 2004 and all remaining amounts of
principal and interest are due on that date. The receivable balance was
$1,737,979 as of June 30, 2000.
NOTE 4 - NOTES PAYABLE
In October 1996, the Partnership obtained permanent financing secured by a first
deed of trust from a major insurance company to replace the construction loan on
Shaw Villa Shopping Center, which is located in Clovis, California. The terms of
the loan are as follows: Principal - $1,500,000; Interest Rate of 9.1% fixed for
five years then may be adjusted to the weekly average of the five year Treasury
Note yield for the seventh week prior to the adjustment date (5th anniversary
date) plus 250 basis points, but in no event less than the existing rate, nor to
exceed the maximum rate allowed by law; Amortized over twenty years; balance due
November 1, 2006; and current monthly payments of principal and interest of
$13,593. The note payable balance was $1,387,737 and $1,405,674 as of June 30,
2000 and December 31, 1999.
The aggregate annual future principal maturities at June 30, 2000 are as
follows:
<TABLE>
<CAPTION>
AMOUNT
---------------------------------------------------------------------
<S> <C>
2001 $ 38,406
2002 42,052
2003 46,043
2004 50,412
2005 55,196
Thereafter 1,155,628
---------------------------------------------------------------------
Total $ 1,387,737
======================================================================
</TABLE>
<PAGE> 11
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
SIX MONTHS ENDED JUNE 30, 2000 AND 1999 (UNAUDITED)
AND YEAR ENDED DECEMBER 31, 1999 (CONTINUED)
NOTE 5 - RELATED PARTY TRANSACTIONS
(a) For management services rendered to the Partnership, the General Partner is
entitled to receive 10% of all distributions of cash from operations. These
amounts totaled $0 for the quarter ended June 30, 2000 and $14,421 for the
quarter ended June 30, 1999 and $0 for the six months ended June 30, 2000 and
$31,502 for the six months ended June 30,1999.
(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, 2000
and June 30, 1999 and $6,000 for the six months ended June 30, 2000 and 1999.
(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 $4,281 for the quarter ended June 30, 2000 and $6,268
for the quarter ended June 30, 1999, and $7,848 for the six months ended June
30, 2000 and $13,837 for the six months ended June 30, 1999 .
NOTE 6 - NET INCOME (LOSS) AND CASH DISTRIBUTIONS PER LIMITED PARTNERSHIP LIST
The Net Income (Loss) 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 2000 and 1999.
The Limited Partner cash distributions, computed in accordance with the
Partnership Agreement, were as follows:
<TABLE>
<CAPTION>
Outstanding Amount Total
Record Date Units Per Unit Distribution
------------------------------------------------------------------------------------
<S> <C> <C> <C>
December 31, 1998 7,499 $ 20.50 $ 153,730
March 19, 1999 7,499 $191.03 to $188.52 1,427,641
March 15, 2000 7,499 $64.00 479,936
------------------------------------------------------------------------------------
Total $2,061,307
====================================================================================
</TABLE>
<PAGE> 12
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
SIX MONTHS ENDED JUNE 30, 2000 AND 1999 (UNAUDITED)
AND YEAR ENDED DECEMBER 31, 1999 (CONTINUED)
NOTE 7 - LIQUIDATION OF PARTNERSHIP
At June 30, 2000, the Partnership's remaining property is held for sale. The
General Partner plans to liquidate the Partnership after the final property is
sold. There is no assurance that the remaining property will be sold and the
Partnership will be liquidated during 2000. The financial statements do not
contain any adjustments that might result from the liquidation of the
Partnership.
<PAGE> 13
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Certain statements in the Management Discussion and Analysis constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995 (the "Reform Act"). Such forward-looking
statements involve known and unknown risks, uncertainties, and other factors
which may cause the actual results, performance or achievements of the
Partnership to be materially different from any future results, performance or
achievements, expressed or implied by such forward-looking statements.
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 intended 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> 14
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
INTRODUCTION (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 - SIX MONTHS ENDED JUNE 30, 2000 VS. SIX MONTHS ENDED JUNE
30, 1999
Operations for the six months ended June 30, 2000, reflect the operations of the
Simi Valley building prior to its sale on February 4, 2000 and of the Shaw Villa
Shopping Center.
Net income for the six months ended June 30, 2000 of $277,911 was lower than the
net income for the six months ended June 30, 1999 of $429,933, primarily because
the $380,849 gain recognized from the sale of the Encinitas, California
properties in January 1999 exceeded the gain of $291,151 recognized on the Simi
Valley property in February 2000. In addition rental income decreased primarily
as a result of the vacancy of the Simi Valley property starting May 31, 1999 and
its subsequent sale in February 2000.
Rental revenue for the six months ended June 30, 2000 decreased from that for
the six months ended June 30, 1999 by $123,370, due to lower rents collected as
a result of the vacancy and subsequent sale of the Simi Valley property.
Interest income increased $24,115 for the six months ended June 30, 2000 as
compared to the six months ended June 30, 1999 primarily due to interest income
on the note receivable received in connection with the sale of the Simi Valley
property.
Operating expenses decreased $15,159 (37.70%) because fewer properties were
owned during the six months ended June 30, 2000 compared to the six months ended
June 30, 1999. General and administrative expenses increased $6,714 (14.30%) due
to higher legal and accounting expenses. Depreciation expense decreased $24,269
(38.10%) during the six months ended June 30, 2000 compared to the six months
ended June 30, 1999 primarily because of the property sold in February 2000.
During the six months ended June 30, 2000 the Partnership distributed $479,936
to the limited partners as compared to the six months ended June 30, 1999 when
the Partnership distributed $1,612,873 to the general and limited partners and
$2,270 to the minority interest. Cash proceeds from the sale of the Simi Valley
property were distributed in April 2000, while the proceeds from the sale of the
two properties located in Encinatas were distributed March 1999. Cash basis
income for the six months ended June 30, 2000 was $26,184. This was derived by
adding depreciation and amortization expense to net income, less the gain on
sale of properties. In contrast cash basis income for the six months ended June
30, 1999 was $112,777.
<PAGE> 15
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
RESULTS OF OPERATIONS - SIX MONTHS ENDED JUNE 30, 2000 VS. SIX MONTHS ENDED JUNE
30, 1999 (CONTINUED)
Overall the Partnership generated $26,184 in income from operations before
depreciation expense of $39,424 and $291,151 gain from the sale of the Simi
Valley, California property for the six months ended June 30, 2000. This
compares to the six months ended June 30, 1999 when cash basis income totaled
$112,777 before depreciation expense of $63,693 and $380,849 gain from the sale
of the Encinitas, California properties. Net income per limited partnership unit
decreased from $50.83 in 1999 to $30.94 in 2000. The weighted average number of
limited partnership units remained unchanged at 7,499 in each six month period.
RESULTS OF OPERATIONS - THREE MONTHS ENDED JUNE 30, 2000 VS. THREE MONTHS ENDED
JUNE 30, 1999
Operations for the quarter ended June 30, 2000, reflect the operations of the
Partnership's remaining property Shaw Villa Shopping Center. In contrast the
quarter ending June 30, 1999 also includes the operations of the Simi Valley
property which was sold in February 2000.
The net loss for the quarter ended June 30, 2000 of ($6,954) compares with net
income of $15,214 for the quarter ended June 30, 1999.
Rental revenue decreased $47,894 (38.44%) for the three months ended June 30,
2000, compared to the three months ended June 30, 1999. The decrease was
primarily due to two months of rental income on the Simi Valley property for
this period in 1999, followed by the vacancy of the property as of May 31, 1999
and its subsequent sale in February 2000. Interest income increased $24,572 for
the three months ended June 30, 2000 as compared to the three months ended June
30, 1999 primarily due to interest income on the note receivable received in
connection with the sale of the Simi Valley property.
Operating expenses decreased $3,279 (29.91%) and depreciation expense decreased
$14,441 (45.34%) during the quarter ended June 30, 2000 compared to the quarter
ended June 30, 1999 primarily due to the sale of the Simi Valley property in
February 2000. General and administrative expenses increased $13,393 (74.93%)
due to higher legal and accounting expenses.
During the quarter ended June 30, 2000, the Partnership distributed $479,936 to
the limited partners, as compared to the quarter ended June 30, 1999 when the
Partnership distributed $14,421 to the general partner. This increase was
primarily due to the distribution of the cash proceeds from the sale of the Simi
Valley property in April 2000. Cash basis income for the quarter ended
<PAGE> 16
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS (CONTINUED)
RESULTS OF OPERATIONS - THREE MONTHS ENDED JUNE 30, 2000 VS. THREE MONTHS ENDED
JUNE 30, 1999 (CONTINUED)
June 30, 2000 was $10,452. This was derived by adding depreciation and
amortization expense to net income, less the gain on sale of properties. In
contrast cash basis income for the quarter ended June 30, 1999 was $47,061.
Overall the Partnership generated $10,452 in income from operations before
depreciation expense of $17,406. This compares unfavorably to the quarter ended
June 30, 1999 when cash basis income totaled $47,061 before depreciation expense
of $31,847. Net income (loss) per limited partnership unit decreased from $1.44
in 1999 to $(1.04) in 2000. The number of limited partnership units outstanding
in each quarter was 7,499.
LIQUIDITY AND CAPITAL RESOURCES
During the six months ended June 30, 2000, the Partnership made distributions to
the limited partners totaling $479,936 of which $232,458 constituted a return of
capital. This includes the distribution of proceeds from the sale of the Simi
Valley property. During the six months ended June 30, 1999, the Partnership made
distributions to the limited partners totaling $1,581,321 of which $1,506,012
constituted a return of capital. This includes the distribution of $1,427,641
from the sale of the two properties located in Encinitas, California, which were
sold in January 1999. The remaining distribution of $153,730 or $20.50 per
limited partnership unit compares unfavorably to the $190,529 in cash generated
from property operations (net income plus depreciation expense) for the six
months ended December 31, 1998 on which such distributions were based.
Additionally, the partnership distributed $31,502 to the general partner and
$2,270 to the minority interest during the six months ended June 30, 1999.
Management uses cash as its primary measure of the Partnership's liquidity. The
amount of cash that represents adequate liquidity for a real estate limited
partnership, in the short-term and long-term, depends on several factors. Among
them are:
1. Relative risk of the partnership;
2. Condition of the partnership's properties;
3. Stage in the partnership's life cycle (e.g., money-raising, acquisition,
operating or disposition phase); and
4. Distributions to partners.
The Partnership believes that it has the ability to generate sufficient cash to
meet both short-term and long-term liquidity needs, based upon the above four
factors.
<PAGE> 17
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 (CONTINUED)
The first factor refers to the risk of Partnership's investments. The
Partnership's investments in properties were paid for in cash or on a moderately
leveraged basis.
The second factor relates to the condition of the Partnership's property. The
Partnership's property is in good condition. There is no foreseeable need to
increase reserves to fund deferred or unusual maintenance and repair
expenditures.
The third factor relates to life cycle. The Partnership completed its funding,
acquisition and operating stages of properties in previous years. The
Partnership is in the disposition stage. As part of the disposition stage, the
Partnership has listed its remaining property for sale.
The fourth factor relates to Partnership distributions. The Partnership is
currently making semi-annual distributions from operations. Such distributions
are subject to payments of Partnership expenses and reasonable reserves for
expenses, maintenance, and replacements. In addition, at least six months of
cash profits are left in the Partnership's balance sheet at each quarter end,
since the Partnership makes distributions to the limited partners one month
after each record date of June 30, and December 31. The General Partner believes
that the Partnership will have the ability to meet its cash requirements in both
the short-term and long-term.
Slowdowns in the economy, inflation and changing prices have had a nominal
effect on the Partnership's revenues and income from continuing operations.
During the thirteen years of the Partnership's existence, inflationary pressures
in the U.S. economy have been minimal, and this has been consistent with the
experience of the Partnership in operating rental real estate in California.
The General Partner is attempting to sell the remaining property owned by the
Partnership. Once the Shaw Villa Shopping Center is sold and the note receivable
taken in connection with the sale of the Simi Valley property is liquidated, the
net proceeds will be distributed to the limited and general partners in
accordance with the partnership agreement, and the partnership will then be
terminated and dissolved. There is no assurance that the remaining property will
be sold and the partnership will be liquidated during 2000. The financial
statements do not contain any adjustments that might result from the liquidation
of the partnership.
CASH FLOWS - SIX MONTHS ENDED JUNE 30, 2000 VS. SIX MONTHS ENDED JUNE 30, 1999
Cash resources increased $16,876 during the six months ended June 30, 2000
compared to a $227,717 decrease in cash resources for the six months ended June
30, 1999. Cash provided by operating activities increased by $21,478 for the six
months ended June 30, 2000 with the largest
<PAGE> 18
ASSOCIATED PLANNERS REALTY FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
CASH FLOWS - SIX MONTHS ENDED JUNE 30, 2000 VS. SIX MONTHS ENDED JUNE 30, 1999
(CONTINUED)
contributor being $277,911 in net income offset by $291,151 resulting form the
sale of the Simi Valley property. In contrast, the six months ended June 30,
1999 provided $120,679 in cash from operating activities due primarily to
$429,933 in net income offset by $380,849, resulting from the gain on the sale
of the two Encinatas properties. Investing activities resulted in a $493,271
increase in cash resources during the six months ending June 30, 2000 due to
cash proceeds from the sale of the Simi Valley property. Investing activities
resulted in a $1,283,129 increase in cash resources during the six months ended
June 30, 1999 due to cash proceeds from the sale of the two properties located
in Encinitas, California. For the six months ended June 30, 2000 financing
activities used $497,873 because of distributions to limited partners totaling
$479,936 and repayments on notes payable of $17,937. Cash from financing
activities decreased $1,631,525 during the six months ended June 30, 1999 due to
$1,615,143 being distributed to the limited, general and minority interests and
$16,382 used as payments on notes payable.
<PAGE> 19
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. 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> 20
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)
By: WEST COAST REALTY ADVISORS, INC.
A California Corporation,
General Partner
/s/ JOHN R. LINDSEY
August 14, 2000 -------------------------------
John R. Lindsey
Vice President/Treasurer
/s/ W. THOMAS MAUDLIN JR.
August 14, 2000 -------------------------------
W. Thomas Maudlin Jr.
President of General Partner
