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 THEx
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 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
BALANCE SHEETS
ASSETS
<PAGE>
<TABLE>
<CAPTION>
March 31, December 31,
1995 1994
<S> <C> <C>
Participating Insured Mortgages ("PIMs") $ 59,710,762 $ 59,837,946
Mortgage-Backed Securities and insured
mortgage ("MBS") (Note 2) 29,208,804 29,648,678
Total mortgage investments 88,919,566 89,486,624
Cash and cash equivalents 2,853,566 2,931,523
Interest receivable and other assets 908,307 983,130
Prepaid acquisition fees and expenses, net of
accumulated amortization of $3,849,943 and
$3,658,625, respectively 2,270,565 2,461,883
Prepaid participation servicing fees, net of
accumulated amortization of $1,750,161 and
$1,701,854, respectively 649,838 698,145
Total assets $ 95,601,842 $ 96,561,305
LIABILITIES AND PARTNERS' EQUITY
Liabilities $ 7,901 $ 14,734
Partners' equity (deficit) (Note 3):
Limited Partners 95,743,295 96,689,550
(7,500,099 Units outstanding)
General Partners (149,354) (142,979)
Total Partners' equity 95,593,941 96,546,571
Total liabilities and Partners' equity $ 95,601,842 $ 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
Ended March 31,
1995 1994
<S> <C> <C>
Revenues:
Interest income - PIMs $1,123,249 $1,218,843
Interest income - MBS 632,007 691,601
Other interest income 41,301 77,167
Total revenues 1,796,557 1,987,611
Expenses:
Asset management fee to an affiliate 165,544 173,153
Expense reimbursements to affiliates 29,555 61,885
Amortization of prepaid fees and expenses 239,625 239,625
Other 17,735 26,061
Total expenses 452,459 500,724
Net income $1,344,098 $1,486,887
Allocation of net income (Note 3):
Average net income per Unit
(7,499,999 Units outstanding) $ .17 $ .19
Corporate Limited Partner 17 $ 19
General Partners $ 40,323 $ 44,607
</TABLE>
The accompanying notes are an integral
part of the financial statements.
<PAGE>
KRUPP INSURED PLUS LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
For the Three Months
Ended March 31,
1995 1994
<S> <C> <C>
Operating activities:
Net income $ 1,344,098 $ 1,486,887
Adjustments to reconcile net income to net cash
provided by operating activities:
Amortization of prepaid fees and expenses 239,625 239,625
Premium amortization MBS 1,435 9,584
Changes in assets and liabilities:
Decrease (increase) in interest receivable
and other assets 74,823 (67,862)
Decrease in liabilities (6,833) (1,209)
Net cash provided by operating activities 1,653,148 1,667,025
Investing activities:
Principal collections on MBS 438,439 2,322,954
Principal collections on PIMs 127,184 117,618
Net cash provided by investing activities 565,623 2,440,572
Financing activity:
Quarterly distributions (2,296,728) (2,498,721)
Net increase (decrease) in cash and cash equivalents (77,957) 1,608,876
Cash and cash equivalents, beginning of period 2,931,523 8,775,797
Cash and cash equivalents, end of period $ 2,853,566 $10,384,673
</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 March 31, 1995 and its
results of operations and cash flows for the three months ended March
31, 1995 and 1994.
The results of operations for the three months ended March 31, 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 March 31, 1995, the Partnership's MBS portfolio has a market value of
approximately $20,182,000 and unrealized gains and losses of $291,000
and $38,000, respectively, with maturities from 2004 to 2033.
3. Changes in Partners' Equity
A summary of changes in Partners' Equity for the three months ended
March 31, 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 1,303,758 17 40,323 1,344,098
Quarterly distributions (2,250,000) (30) (46,698) (2,296,728)
Balance at March 31, 1995 $ 95,741,941 $1,354 $(149,354) $ 95,593,941
</TABLE>
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Liquidity and Capital Resources
The most significant demand on the Partnership's liquidity is 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
FNMA, FHLMC and 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 represent interests in
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 three
months ended March 31, 1995 and the period from inception to March 31, 1995
(Amounts in thousands, except per Unit amounts).
<TABLE>
<CAPTION>
Three Months Ended Inception through
March 31, 1995 March 31, 1995
Distributable Cash Flow:
<S> <C> <C>
Net Income for tax purposes $1,550 $ 62,574
Items not requiring or (not providing)
the use of operating funds:
Amortization of prepaid expenses
and organization costs 34 4,661
Amortization of MBS premiums 1 285
Acquisition expenses paid from
offering proceeds charged to operations - 1,098
Gain on sale of MBS - (114)
Total Distributable Cash Flow ("DCF") 1,585 68,504
Limited Partners Share of DCF 1,537 66,448
Limited Partners Share of DCF per Unit .20 8.86
General Partners Share of DCF 48 2,056
Net Proceeds from Capital Transactions:
Insurance claim proceeds and
principal collections on PIMs 127 46,010
Principal collections on MBS 438 37,440
Insurance claim proceeds and
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 565 42,789
Cash available for distribution
(DCF plus Net Proceeds from
Capital Transactions) $2,150 $111,293
Distributions: (includes special
distribution)
Limited Partners 2,250 (a) 108,087 (a)
Limited Partners Average per Unit $ .30 (a) $ 14.41 (a)(b)
General Partners 48 (a) 2,056 (a)
Total Distributions $2,298 $110,143
</TABLE>
(a) This includes an estimate of the May 1995 distribution.
(b) Limited Partners average per Unit return of capital as of May 1995
is $5.55 [$14.41-$8.86]. 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.
<PAGE>
Operations
The following discussion relates to the operations of the Partnership
during the three months ended March 31, 1995 and 1994.
<TABLE>
<CAPTION>
(Amounts in thousands)
1995 1994
<S> <C> <C>
Interest income on PIMs $ 1,123 $ 1,219
Interest income on MBS 633 701
Other interest income 41 77
Partnership expenses (212) (261)
Distributable Cash Flow $ 1,585 $ 1,736
</TABLE>
Distributable Cash Flow ( DCF ) for the first quarter of 1995 decreased
when compared to the first quarter 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.
<PAGE>
DATE: April 26, 1995
<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> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 2,853,566
<SECURITIES> 88,919,566<F1>
<RECEIVABLES> 908,307
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,920,403<F2>
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 95,601,842
<CURRENT-LIABILITIES> 7,901
<BONDS> 0
<COMMON> 95,593,941<F3>
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 95,601,842
<SALES> 0
<TOTAL-REVENUES> 1,796,557<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 452,459<F5>
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,344,098
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,344,098
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,344,098
<EPS-PRIMARY> 0<F6>
<EPS-DILUTED> 0
<FN>
<F1>Includes the following investments:Participating Insured Mortgages ("PIMs")
$59,710,762 and Mortgage-Backed Securities ("MBS") $29,208,804.
<F2>Includes the following prepaid acquisition fees and expenses of $2,270,565 net
of accumulated amortization of $3,849,943 and prepaid participation servicing
fees of $649,838 net of accumulated amoritzation of $1,750,161.
<F3>Represents total equity of general partners and limited partners of ($149,354)
and $95,743,295.
<F4>Represents interest income on investments in mortgages and cash.
<F5>Includes $239,625 of amortization related to prepaid fees and expenses.
<F6>Net income allocated $40,323 to the General Partners and $1,303,775 to the
Limited Partners for the 3 months ended March 31, 1995. Average net income per
unit of Limited Partners interest is $.17 on 7,500,099 units outstanding.
</FN>
</TABLE>
