UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESx
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1995
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 0-15815
Krupp Insured Plus Limited Partnership
Massachusetts 04-2915281
(State or other jurisdiction of (IRS employer
incorporation or organization) identification no.)
470 Atlantic Avenue, Boston, Massachusetts 02210
(Address of principal executive offices) (Zip Code)
(617) 423-2233
(Registrant's telephone number, including area code)
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>
PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
KRUPP INSURED PLUS LIMITED PARTNERSHIP
<TABLE>
BALANCE SHEETS
ASSETS
<CAPTION>
June 30, December 31,
1995 1994
<S> <C> <C>
Participating Insured Mortgages ("PIMs") $59,581,068 $59,837,946
Mortgage-Backed Securities and insured
mortgage ("MBS") (Note 2) 28,822,577 29,648,678
Total mortgage investments 88,403,645 89,486,624
Cash and cash equivalents 2,659,584 2,931,523
Interest receivable and other assets 878,196 983,130
Prepaid acquisition fees and expenses, net
of accumulated amortization of $4,041,261
and $3,658,625, respectively 2,079,247 2,461,883
Prepaid participation servicing fees, net
of accumulated amortization of $1,798,469
and $1,701,854, respectively 601,530 698,145
Total assets $94,622,202 $96,561,305
LIABILITIES AND PARTNERS' EQUITY
Liabilities $ 10,543 $ 14,734
Partners' equity (deficit) (Note 3):
Limited Partners
(7,500,099 Units outstanding) 94,769,109 96,689,550
General Partners (157,450) (142,979)
Total Partners' equity 94,611,659 96,546,571
Total liabilities and Partners' equity $94,622,202 $96,561,305
</TABLE>
The accompanying notes are an integral
part of the financial statements.
<PAGE>
KRUPP INSURED PLUS LIMITED PARTNERSHIP
STATEMENTS OF INCOME
<TABLE>
<CAPTION>
For the Three Months For the Six Months
Ended June 30, Ended June 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Revenues:
Interest income - PIMs $1,120,847 $1,113,151 $2,244,096 $2,331,994
Interest income - MBS 623,411 656,582 1,255,418 1,348,183
Other interest income 40,920 92,313 82,221 169,480
Total revenues 1,785,178 1,862,046 3,581,735 3,849,657
Expenses:
Asset management fee to an affiliate 166,397 171,682 331,941 344,835
Expense reimbursements to affiliates 29,554 61,884 59,109 123,769
Amortization of prepaid expenses and
fees 239,626 239,626 479,251 479,251
General and administrative 34,298 37,163 52,033 63,224
Total expenses 469,875 510,355 922,334 1,011,079
Net income $1,315,303 $1,351,691 $2,659,401 $2,838,578
Allocation of net income (Note 3):
Average net income per Unit
(7,499,999 Units outstanding) $ .17 $ .18 .34 $ .37
Corporate Limited Partner 17 18 34 37
General Partners $ 39,459 $ 40,550 $ 79,782 $ 85,157
</TABLE>
The accompanying notes are an integral
part of the financial statements.
<PAGE>
KRUPP INSURED PLUS LIMITED PARTNERSHIP
<TABLE>
STATEMENTS OF CASH FLOWS
<CAPTION>
For the Six Months
Ended June 30,
1995 1994
<S> <C> <C>
Operating activities:
Net income $ 2,659,401 $ 2,838,578
Adjustments to reconcile net income to net cash
provided by operating activities:
Amortization of prepaid expenses and fees 479,251 479,251
Premium amortization MBS - 21,076
Changes in assets and liabilities:
Decrease (increase) in interest receivable
and other assets 104,934 (94,039)
Increase (decrease) in liabilities (4,191) 3,280
Net cash provided by operating activities 3,239,395 3,248,146
Investing activities:
Principal collections on PIMs 256,878 237,153
Principal collections on MBS 826,101 3,731,898
Net cash provided by investing
activities 1,082,979 3,969,051
Financing activities:
Quarterly distributions (4,594,313) (4,975,764)
Special distributions - (7,950,106)
Net cash used for financing activities (4,594,313) (12,925,870)
Net decrease in cash and cash equivalents (271,939) (5,708,673)
Cash and cash equivalents, beginning of period 2,931,523 8,775,797
Cash and cash equivalents, end of period $ 2,659,584 $ 3,067,124
</TABLE>
The accompanying notes are an integral
part of the financial statements.
<PAGE>
KRUPP INSURED PLUS LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
1. Accounting Policies
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted in this report on
Form 10-Q pursuant to the Rules and Regulations of the Securities and
Exchange Commission. However, in the opinion of the General Partners,
The Krupp Corporation and The Krupp Company Limited Partnership-IV
(collectively the "General Partners") of Krupp Insured Plus Limited
Partnership (the "Partnership"), the disclosures contained in this
report are adequate to make the information presented not misleading.
See Notes to Financial Statements included in the Partnership's Form 10-
K for the year ended December 31, 1994 for additional information
relevant to significant accounting policies followed by the Partnership.
In the opinion of the General Partners of the Partnership, the
accompanying unaudited financial statements reflect all adjustments
(consisting of only normal recurring accruals) necessary to present
fairly the Partnership's financial position as of June 30, 1995, its
results of operations for the three and six months ended June 30, 1995
and 1994 and its cash flows for the six months ended June 30, 1995 and
1994.
The results of operations for the three and six months ended June 30,
1995 are not necessarily indicative of the results which may be expected
for the full year. See Management's Discussion and Analysis of
Financial Condition and Results of Operations included in this report.
2. MBS
At June 30, 1995, the Partnership's MBS portfolio had a market value of
approximately $29,457,000 with unrealized gains of approximately
$634,000 and maturities from 2004 to 2033.
3. Changes in Partners' Equity
A summary of changes in Partners' Equity for the six months ended June
30, 1995 is as follows:
<TABLE>
<CAPTION>
Corporate Total
Limited General Partners'
Unitholders Partner Partners Equity
<S> <C> <C> <C> <C>
Balance at December 31, 1994 $96,688,183 $ 1,367 $(142,979) $96,546,571
Net income 2,579,585 34 79,782 2,659,401
Quarterly distributions (4,500,000) (60) (94,253) (4,594,313)
Balance at June 30, 1995 $94,767,768 $ 1,341 $(157,450) $94,611,659
</TABLE>
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Liquidity and Capital Resources
The most significant demands on the Partnership's liquidity are regular
quarterly distributions paid to investors of approximately $2.3 million.
Funds used for investor distributions come from interest received on the
PIMs, MBS, cash and cash equivalents and the principal collections received
on the PIMs and MBS. To the extent the Partnership funds a portion of the
distribution from principal collections, the capital resources of the
Partnership will decrease. As a result of this decrease, the total cash
inflows to the Partnership will also decrease which may result in periodic
adjustments to the quarterly distributions paid to investors.
Assessment of Credit Risk
The Partnership's investments in mortgages are guaranteed or insured by
the Federal National Mortgage Association ("FNMA"), the Government National
Mortgage Association ("GNMA"), the Federal Home Loan Mortgage Corporation
("FHLMC") and the Department of Housing and Urban Development ("HUD") and
therefore the certainty of their cash flows and the risk of material loss
of the amounts invested depends on the creditworthiness of these entities.
FNMA is a federally chartered private corporation that guarantees
obligations originated under its programs. FHLMC is a federally chartered
corporation that guarantees obligations originated under its programs and
is wholly-owned by the twelve Federal Home Loan Banks. These obligations
are not guaranteed by the U.S. Government or the Federal Home Loan Bank
Board. GNMA guarantees the full and timely payment of principal and basic
interest on the securities it issues, which represents interest in pooled
mortgages insured by HUD. Obligations insured by HUD, an agency of the
U.S. Government, are backed by the full faith and credit of the U.S.
Government.
<PAGE>
Distributable Cash Flow and Net Cash Proceeds From Capital Transactions
Shown below is the calculation of Distributable Cash Flow and Net Cash
Proceeds from Capital Transactions, as defined by Section 17 of the
Partnership Agreement, and the source of cash distributions for the six
months ended June 30, 1995 and the period from inception to June 30, 1995
(amounts in thousands, except per Unit amounts).
<TABLE>
<CAPTION>
Six Months Ended Inception through
June 30, 1995 June 30, 1995
Distributable Cash Flow:
<S> <C> <C>
Income for tax purposes $ 3,071 $ 64,095
Items not requiring or (not providing) the use of
operating funds:
Amortization of prepaid expenses, fees and organiz-
ation costs 68 4,695
Amortization of net MBS premiums - 284
Acquisition expenses paid from offering proceeds
charged to operations - 1,098
Gain on sale of MBS - (114)
Total Distributable Cash Flow ("DCF") $ 3,139 $ 70,058
Limited Partners Share of DCF $ 3,045 $ 67,956
Limited Partners Share of DCF per Unit $ .41 $ 9.06
General Partners Share of DCF $ 94 $ 2,102
Net Proceeds from Capital Transactions:
Insurance claim proceeds and principal collections
on PIMs $ 257 $ 46,140
Principal collections on MBS 826 37,828
Principal collections on PIMs and MBS reinvested
in PIMs and MBS - (40,775)
Gain on sale of MBS - 114
Total Net Proceeds from Capital Transactions $ 1,083 $ 43,307
Cash available for distribution
(DCF plus Net Proceeds from
Capital Transactions) $ 4,222 $113,365
Distributions:
Limited Partners $ 4,500 (a) $110,337 (a)
Limited Partners Average per Unit $ .60 (a) $ 14.71 (a)(b)
General Partners $ 94 (a) $ 2,102 (a)
Total Distributions $ 4,594 $112,439
</TABLE>
(a) This includes an estimate of the August 1995 distribution.
(b) Limited Partners average per Unit return of capital as of August
1995 is $5.65 [$14.71 - $9.06] Return of capital represents that
portion of distributions which is not funded from DCF such as
proceeds from the sale of assets and substantially all of the
principal collections received from MBS and PIMs.Operations
<PAGE>
The following discussion relates to the operations of the Partnership
during the three and six months ended June 30, 1995 and 1994:
<TABLE>
<CAPTION>
(Rounded to $1,000)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Interest income on PIMs $1,121 $1,113 $2,244 $2,332
Interest income on MBS 622 668 1,255 1,369
Other interest income 41 92 82 169
Partnership expenses (230) (270) (442) (531)
Distributable Cash Flow $1,554 $1,603 $3,139 $3,339
</TABLE>
Distributable Cash Flow ( DCF ) for the second quarter and first half of
1995 decreased when compared to the second quarter and first half of 1994
as a result of lower average asset balances in 1995. The Partnership will
continue to see a decrease in DCF because the portion of distributions
funded with principal collections reduces the overall income generating
assets held by the Partnership.
<PAGE>
KRUPP INSURED PLUS LIMITED PARTNERSHIP
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
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Krupp Insured Plus Limited Partnership
(Registrant)
BY:/s/Marianne Pritchard
Marianne Pritchard
Treasurer and Chief Accounting Officer of The Krupp
Corporation, a General Partner of the Registrant.
DATE: July 24, 1995
-9-
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from the Balance
Sheet and Statement of Income and is qualified in its entirety by reference to
such Financial Statements
</LEGEND>
<CIK> 0000786622
<NAME> KRUPP INSURED PLUS L.P.
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 2,659,584
<SECURITIES> 88,403,645<F1>
<RECEIVABLES> 878,196
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,680,777<F2>
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 94,622,202
<CURRENT-LIABILITIES> 10,543
<BONDS> 0
<COMMON> 94,611,569<F3>
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 94,622,202
<SALES> 0
<TOTAL-REVENUES> 3,581,735<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 922,334<F5>
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 2,659,401
<INCOME-TAX> 0
<INCOME-CONTINUING> 2,659,401
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,659,401
<EPS-PRIMARY> 0<F6>
<EPS-DILUTED> 0<F6>
<FN>
<F1>Includes the following investments: Participating Insured Mortgages ("PIMs")
$59,581,068 & Mortgage-Backed Securities ("MBS") $28,822,577.
<F2>Includes the following prepaid acquisition fees & expenses of $2,079,247 net of
accumulated amortization of $4,041,261 and prepaid participating servicing of
$601,530 net of accumulated amortization of $1,798,469.
<F3>Represents total equity of general partners and limited partners of ($157,450)
and $94,769,109.
<F4>Represents interest income on investments in mortgages & cash.
<F5>Includes $239,626 of amortization related to prepaid fees & expenses
<F6>Net income allocated $39,459 to the General Partners & $1,275,844 to the
Limited Partners for the 3 months ended June 30, 1995. Average net income per
unit of Limited Partners interest is $.17 on 7,500,099 Units outstanding.
</FN>
</TABLE>
