FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES 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: 33-3657
GLENBOROUGH PARTNERS,
A CALIFORNIA LIMITED PARTNERSHIP
as successor to Glenborough Limited pursuant to Rule 15d-5
-----------------------------------------------------------------
-
(Exact name of Registrant as specified in its charter)
94-3193010
California (successor to 94-2997842)
------------------------------- ----------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
400 South El Camino Real,
Suite 1100
San Mateo, California 94402
--------------------- ------------
(Address of principal (Zip Code)
executive offices)
(415) 343-9300
-----------------------------
(Registrant's telephone number)
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
--- ---
Total number of units outstanding as of June 30, 1995: 2,961,853
Page 1 of 18
NO EXHIBIT INDEX REQUIRED
PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
GLENBOROUGH PARTNERS,
A CALIFORNIA LIMITED PARTNERSHIP
Consolidated Balance Sheets
(In thousands, except units outstanding)
(Unaudited)
June 30, December 31,
1995 1994
---------- ----------
Assets
------
Real estate investments, at cost:
Land $ 2,054 $ 2,045
Buildings and improvements 16,161 16,076
-------- --------
18,215 18,121
Less:
Accumulated depreciation (3,071) (2,901)
-------- --------
Net real estate investments 15,144 15,220
Real estate held for sale, net 4,433 4,558
Other Assets:
Cash and cash equivalents 372 2,604
Receivables 27 15
Deferred loan fees, net of accumulated
amortization of $74 and $44 at June
30, 1995 and December 31, 1994,
respectively 322 352
Deferred leasing commissions, net of
accumulated amortization of $163 and
$161 at June 30, 1995 and December
31, 1994, respectively 9 10
Notes receivable 233 -
Prepaid expenses 24 69
Deposits 148 199
Other assets 146 158
-------- --------
Total assets $ 20,858 $ 23,185
======== ========
Page 2 of 18
(continued)
Page 3 of 18
GLENBOROUGH PARTNERS,
A CALIFORNIA LIMITED PARTNERSHIP
Consolidated Balance Sheets - continued
(In thousands, except units outstanding)
(Unaudited)
June 30, December 31,
1995 1994
-------- --------
Liabilities and Partners' Equity
--------------------------------
Liabilities:
Notes payable 15,460 17,160
Accounts payable 3 85
Accrued expenses 157 496
Advances from related parties - 60
Deposits and other liabilities 93 95
-------- --------
Total postpetition liabilities 15,713 17,896
-------- --------
Partners' equity:
General partners 432 435
Limited partners, 2,961,853
units outstanding 4,713 4,854
-------- --------
Total partners' equity 5,145 5,289
-------- --------
Total liabilities and partner's
equity $ 20,858 $ 23,185
======== ========
See accompanying notes to consolidated financial statements.
Page 4 of 18
GLENBOROUGH PARTNERS,
A CALIFORNIA LIMITED PARTNERSHIP
Consolidated Statements of Operations
(in thousands, except per unit amounts)
(Unaudited)
Six months ended Three months ended
June 30, June 30,
---------------- -----------------
1995 1994 1995 1994
------ ------ ------ ------
Revenues:
Rental $ 1,510 $ 4,618 $ 763 $ 1,598
Interest and other 253 96 215 60
------ ------ ------ ------
Total revenues 1,763 4,714 978 1,658
------ ------ ------ ------
Operating expenses (including $1
and $15 paid to related parties
in 1995 and 1994 for miscellaneous
reimbursements, respectively):
Property taxes 102 553 56 77
Repairs and maintenance 56 432 33 160
Management fees and reimbursed
expenses (paid to related
parties) 199 635 98 217
Insurance 20 93 11 52
Utilities 62 451 34 139
Salaries and wages (including
$9 and $179 paid to related
parties in 1995 and 1994,
respectively) 13 195 4 58
Professional fees 69 554 55 226
Depreciation and amortization 328 1,636 161 524
Other 40 119 20 61
------ ------ ------ ------
Total operating expenses 889 4,668 472 1,514
------ ------ ------ ------
Operating income 874 46 506 144
(continued)
Page 5 of 18
GLENBOROUGH PARTNERS,
A CALIFORNIA LIMITED PARTNERSHIP
Consolidated Statements of Operations - continued
(in thousands, except per unit amounts)
(Unaudited)
Six months ended Three months ended
June 30, June 30,
---------------- -----------------
1995 1994 1995 1994
------ ------ ------ ------
Other income and (expense):
Gain on sale - 1,503 - -
Interest expense (960) (2,558) (469) (1,412)
Income (loss) on investment
in real estate (58) - 1 -
------- ------- ------- -------
Income/(loss) before extraordinary
item (144) (1,009) 38 (1,268)
Extraordinary item - 120,027 - 120,051
------- ------- ------- -------
Net income/(loss) $ (144)$119,018 $ 38 $118,783
======= ======= ======= =======
Income/(loss) before
extraordinary item per
limited partnership unit $ (0.05)$ (0.29) $ 0.01 $ (0.38)
Extraordinary item per limited
partnership unit - 35.26 - 36.08
------- ------- ------- -------
Net income/(loss) per limited
partnership unit $ (0.05)$ 34.97 $ 0.01 $ 35.70
======= ======= ======= =======
Distributions per limited
partnership unit $ - $ - $ - $ -
======= ======= ======= =======
See accompanying notes to consolidated financial statements.
Page 6 of 18
GLENBOROUGH PARTNERS,
A CALIFORNIA LIMITED PARTNERSHIP
Consolidated Statements of Partners' Equity (Deficit)
(in thousands)
For the six months ended June 30, 1995 and 1994
(Unaudited)
Total
General Limited Partners'
Partner Partners Equity
---------- ---------- ----------
Consolidated balance,
December 31, 1993 $ (2,234) $(110,034) $(112,268)
Net income 2,369 116,649 119,018
--------- --------- ---------
Consolidated balance,
June 30, 1994 $ 135 $ 6,615 $ 6,750
========= ========= =========
Consolidated balance,
December 31, 1994 $ 435 $ 4,854 $ 5,289
Net loss (3) (141) (144)
--------- --------- ---------
Consolidated balance,
June 30, 1995 $ 432 $ 4,713 $ 5,145
========= ========= =========
See accompanying notes to consolidated financial statements.
Page 7 of 18
GLENBOROUGH PARTNERS,
A CALIFORNIA LIMITED PARTNERSHIP
Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
For the six months
ended
June 30,
----------------------
1995 1994
-------- --------
Cash flows from operating activities:
Net income/(loss) $ (144) $119,018
Adjustments to reconcile net
income/(loss) to net cash
used in operating activities:
Depreciation and amortization 328 1,636
Gain on sale - (1,503)
Gain from bankruptcy reorganization
and early extinguishment of debt - (120,027)
Changes in assets and liabilities:
Decrease in other liabilities (2) (214)
Increase in receivables (5) (246)
Decrease in accounts payable and
accrued expenses (456) (486)
Decrease in advance from related
parties (60) (1,000)
Decrease (increase) in other assets 12 (163)
Decrease in prepaid expenses 45 -
Decrease in deposits 51 -
Decrease in prepaid incentive
and transaction fees (paid to a
related party) - 348
Increase in deferred leasing
commissions (1) (431)
Increase in accrued interest 34 1,165
------- -------
Net cash used in operating activities (198) (1,903)
------- -------
(continued)
Page 8 of 18
GLENBOROUGH PARTNERS,
A CALIFORNIA LIMITED PARTNERSHIP
Consolidated Statements of Cash Flows - continued
(in thousands)
(Unaudited)
For the six months
ended
June 30,
----------------------
1995 1994
-------- --------
Cash flows from investing activities:
Proceeds from sale of real estate - 1,307
Improvements to real estate (94) (313)
Decrease in restricted cash - (21)
Increase in interest receivable (7) 1
Increase in other notes receivable (233) -
--------- ---------
Cash provided by (used in) investing
activities (334) 973
--------- ---------
Cash flows from financing activities:
Borrowings on notes payable - 15,462
Principal payments on notes payable (1,700) (14,681)
--------- ---------
Cash provided by (used in) financing
activities (1,700) 781
--------- ---------
Net decrease in cash and cash equivalents (2,232) (149)
Cash and cash equivalents, beginning
of period 2,604 1,506
--------- ---------
Cash and cash equivalents, end
of period $ 372 $ 1,506
========= =========
Supplemental disclosure of cash flow
information:
Cash paid for interest $ 926 $ 1,357
========= =========
Supplemental disclosure of non cash
transactions:
Bankruptcy reorganization and early
extinguishment of debt:
Rollout and foreclosure of real
estate, net $ - $ 99,867
========= =========
Extinguishment of debt $ - $(280,482)
========= =========
Other net assets $ - $ 60,661
========= =========
See accompanying notes to consolidated financial statements.
Page 9 of 18
GLENBOROUGH PARTNERS,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Consolidated Financial Statements
June 30, 1995
(Unaudited)
Note 1. SUMMARY OF ORGANIZATION
-----------------------
Glenborough Partners, A California Limited Partnership is the
successor to Glenborough Limited, A California Limited
Partnership pursuant to section 15d-5 of the Securities Exchange
Act of 1934.
On May 21, 1992, GPA Ltd, formerly known as GOCO Realty Fund I,
the partnership holding and operating the Partnership's real
property (including its related Brazos Debt), filed a petition in
the United States Bankruptcy Court for the Northern District of
California for reorganization under Chapter 11 of the Federal
Bankruptcy Code. On January 13, 1994, a plan of reorganization
was filed with the Bankruptcy court which became effective
January 24, 1994.
To facilitate the Partnership's holding and transfer of real
property as set forth under the plan of reorganization, two
partnerships were created in February 1994: (i) GPA West, L.P.
("West"); and (ii) GPA Industrial, L.P. ("Industrial"). West and
Industrial are subsidiaries of GPA Ltd. and as such, the
financial statements have been consolidated with Glenborough
Partners. The general partners of West and Industrial are
Glenborough Realty Corporation and Robert Batinovich while the
sole limited partner of each of the two partnerships is GPA Ltd.
A third subsidiary partnership, GPA Bond L.P.("Bond"), was
created in December 1994 to hold and operate a property purchased
on December 29, 1994. The general partners of Bond are
Glenborough Realty Corporation and Robert Batinovich while the
sole limited partner is GPA Ltd.
After the redemption of units as part of the reorganization plan,
the general partners now hold a 2.27% share of the Partnership's
net income or loss and distributions. Conversely, the limited
partners now hold a 97.73% share of the partnership's net income
or loss and distributions.
Note 2. SIGNIFICANT ACCOUNTING POLICY
-----------------------------
In the opinion of Glenborough Realty Corporation, the managing
general partner, the accompanying unaudited financial statements
contain all adjustments (consisting of only normal accruals)
necessary to present fairly the financial position of Glenborough
Partners, A California Limited Partnership as successor to
Glenborough Limited pursuant to Rule 15d-5 (the "Partnership"),
at June 30, 1995 and December 31, 1994, and the related
statements of operations for the three and six months ended June
Page 10 of 18
GLENBOROUGH PARTNERS,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Consolidated Financial Statements
June 30, 1995
(Unaudited)
30, 1995 and 1994, and statements of partners' equity (deficit)
and the statements of cash flows for the six months ended June
30, 1995 and 1994.
Note 3. REFERENCE TO 1994 AUDITED FINANCIAL STATEMENTS
-----------------------------------------------
These unaudited financial statements should be read in
conjunction with the Notes to Consolidated Financial Statements
included in the 1994 audited financial statements.
Note 4. NET INCOME (LOSS) PER LIMITED PARTNERSHIP UNIT
----------------------------------------------
Pursuant to the Glenborough Partners and GPA Ltd. partnership
agreements, the general partners held a 2.27% and 1.99% share of
the partnership's net income or loss and distributions in 1995
and 1994, respectively. This percentage is derived from the
general partners' 1% direct interest in GPA Ltd. and a 1.28% and
0.99% indirect interest through their 1% general partner interest
in Glenborough Partners' 99% interest in GPA Ltd. in 1995 and
1994, respectively.
For financial reporting purposes, 2,961,853 and 3,335,931
weighted average units were outstanding to limited partners for
the six months ended June 30, 1995 and 1994, respectively. Net
income (loss) per unit in 1995 and 1994 is derived by dividing
97.73% and 98.01%, respectively of the net income (loss) by the
respective weighted average number of units outstanding to the
limited partners.
Note 5. RELATED PARTY TRANSACTIONS
--------------------------
In accordance with the Limited Partnership, Cash Collateral and
Property Management Agreements, the Partnership paid its general
partner, Glenborough Realty Corporation and its affiliates
(collectively "Glenborough") compensation for services provided
to the Partnership and management of the Partnership's assets.
Page 11 of 18
GLENBOROUGH PARTNERS,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Consolidated Financial Statements
June 30, 1995
(Unaudited)
All fees and allocated expenses due to Glenborough and included
in the Partnership's operating expenses for the six months ended
June 30, 1995 and 1994 are as follows (in thousands):
Six months ended
June 30,
------------------
1995 1994
-------- --------
Property management fees $ 54 $ 207
Reimbursed general and administrative
expenses 145 428
------ ------
Total management fees and reimbursed
general and administrative expenses $ 199 $ 635
====== ======
In the first half of 1995, Glenborough was reimbursed $9,000 for
salaries and wages of on-site management, maintenance and
landscape employees.
In the first half of 1994: (i) Glenborough was reimbursed
$179,000 for salaries and wages of on-site management,
maintenance and landscape employees and $15,000 for miscellaneous
reimbursements; and (ii) Glenborough was paid $36,000 for leasing
commissions which were capitalized and are amortized over the
terms of the related leases.
Note 6. NOTE RECEIVABLE FROM AFFILIATES
-------------------------------
On March 28, 1995, GPA West purchased a $1,908,000 mortgage note
receivable from California Federal Bank ("CalFed"), secured by a
first deed of trust on a property owned by a partnership with the
same general partner as the Partnership. This transaction was
funded from the proceeds of a 1994 property sale. The CalFed
mortgage note had been modified and converted into a demand note
retroactive to March 28, 1995, bearing interest at two percentage
points plus the prime lending rate with principal and interest
due when the note is called. This note was repaid in May 1995.
Note 7. NOTES RECEIVABLE
---------------
On February 24, 1995, Glenborough Partners advanced $125,000 to
an unaffiliated partnership in return for a promissory note which
bears interest at a rate of twelve percent (12%) per annum. The
Partnership received a loan fee of $12,500 at the time the funds
were advanced which has been recognized as other income. Total
Page 12 of 18
GLENBOROUGH PARTNERS,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Consolidated Financial Statements
June 30, 1995
(Unaudited)
principal and interest was due on the April 25, 1995 maturity
date but was extended to July 28, 1995.
On April 28, 1995, Glenborough Partners advanced an additional
$60,000 to the same unaffiliated partnership for a promissory
note which consists of terms identical to the February 24, 1995
note above. In addition, the Partnership received a loan fee of
$6,000 at the time the funds were advanced to the affiliate which
was recognized as other income in the second quarter of 1995.
These two notes were paid off in July 1995.
On June 12, 1995, the Partnership advanced $48,000 to another
unaffiliated partnership in return for a promissory note which
also bears interest at a rate of twelve percent (12%) per annum
and matures September 30, 1995. The Partnership received a loan
fee of $2,000 at the time the funds were advanced which has been
recognized as other income.
Note 8. NOTES PAYABLE
-------------
In May 1995, the $2,500,000 note payable secured by the Rosemead
Springs property matured. The Partnership made a $1,500,000
principal paydown in June 1995 from reserves originating from the
proceeds from a December 1994 property sale. The remaining
$1,000,000 note balance has been extended to mature October 1995.
In December 1994, GPA Bond purchased the Bond Street building
from Heller Financial, Inc. ("Heller"). Heller financed
$2,835,000 towards this transaction with the difference funded
from the Partnership's working capital reserves. The Heller note
accrues interest at the rate of three hundred fifty (350) basis
points plus the Base Rate (which is defined as the three month
Libor rate). Monthly interest only payments commenced February
1, 1995 and will continue until the maturity date of December 31,
1999. Principal payments are required on a quarterly basis
commencing April 15, 1995 at an amount of excess cash flow, which
is defined as net cash flow less: (i) current payments due on the
loan; and (ii) a ten percent (10%) per annum return on equity to
the borrower.
Note 9. LOSS ON INVESTMENT IN REAL ESTATE
---------------------------------
In order for the Partnership to obtain free and clear title from
Brazos, the previous mortgage holder on the properties known as
the J.I. Case and Navistar buildings, the Partnership made a
$1,000,000 principal paydown on a note payable on behalf of an
affiliated partnership. Financing for the J.I.Case and Navistar
Page 13 of 18
GLENBOROUGH PARTNERS,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Consolidated Financial Statements
June 30, 1995
(Unaudited)
buildings was extremely difficult to find in the current market,
so as an inducement for the lender to finance this release price
purchase, the Partnership paid down a portion of an
unconsolidated affiliate's note payable in good faith. In
December 1994, the Partnership and the affiliated partnership,
UCT Associates, A California Limited Partnership ("UCT") agreed
that the $1,000,000 paid by the Partnership and any subsequent
payments on behalf of UCT was an investment in UCT. Coupled with
that, Robert Batinovich contributed his limited partner interest
in the profits and losses of UCT. This gave the Partnership a 45%
non-voting limited partner interest, a 99% allocation of future
income and losses, and an economic interest in any future upside
of this property, without exposure to any loss. This was made
possible after Glenborough waived a portion of its potential
transaction fees on the disposition of properties in 1994.
As of December 31, 1994, the General Partner believed that there
is no real equity in UCT, therefore the $58,000 in additional
costs paid in the first half of 1995 on the behalf of UCT was
recognized as a loss on investment in real estate while the
Partnership's share of UCT's net loss in 1995 will be recognized
only to the extent of any income previously recognized.
Note 10. GAIN ON SALE
------------
On February 4, 1994, the Partnership sold the Coherent Auburn
property to the tenant for $3,650,000. After paying
approximately $93,000 for other fees, $500,000 for the Brazos'
release of the Rosemead Springs Business Park, and $750,000 for
Brazos' release of Burlingame Plaza, the Partnership applied most
of the remaining proceeds towards Brazos' lien release price for
four properties known as the J.I. Case and Navistar buildings.
The gain on sale was approximately $1,503,000.
Note 11. EXTRAORDINARY ITEM
------------------
On May 21, 1992, GOCO Realty Fund I, now known as GPA, Ltd., the
partnership holding and operating the Partnership's real
property, filed a petition in the Unites States Bankruptcy Court
for the Northern District of California (the "Court") for
reorganization under Chapter 11 of the Federal Bankruptcy Code.
On January 13, 1994, GPA Ltd., entered a plan of reorganization
with the Court. The plan was confirmed by the Court and the plan
became effective January 24, 1994. A brief description of the
principal points of the plan is incorporated by reference to the
Partnership's December 31, 1994 Form 10-K.
Page 14 of 18
GLENBOROUGH PARTNERS,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Consolidated Financial Statements
June 30, 1995
(Unaudited)
The impact of the reorganization is a $120,051,000 extraordinary
gain from the bankruptcy reorganization and early extinguishment
of debt in the six months ended June 30, 1994.
Note 12. SUBSEQUENT EVENT
----------------
In July 1995, the Partnership entered into an agreement to
purchase a $925,000 note receivable from an unaffiliated
partnership for $460,000. The note accrues interest at a rate of
eight percent (8%) per annum, payable in predetermined quarterly
amounts.
Simultaneously, a note modification was agreed upon whereby in
exchange for $10,000 from the borrower at the signing of the
modification and $40,000 at November 15, 1995, the Partnership
has allowed the borrower (the buyer ) the option to purchase the
note for: (i) $625,000 if paid on or before December 29, 1995;
(ii) $775,000 if paid on or before August 28, 1996; or (iii)
$850,000 if paid on or before December 28, 1996.The buyer
expressed an inability to pay before December 29, 1995 and the
general partner felt it was in the best interests of the
Partnership to extend the first option date to March 31, 1996.
Page 15 of 18
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
INTRODUCTION
The predecessor partnership commenced operations as of June 30,
1986, following its acquisition of 66 real estate projects
subject to non-recourse institutional debt secured by the
projects and certain other assets, subject to certain
liabilities, most of which related to the operation of the
projects. The predecessor partnership acquired the projects and
other assets in exchange for the Units, in an Exchange
Transaction involving 21 limited partnerships and one individual
property owner. At the end of 1993, there was a technical
termination of the predecessor partnership and Glenborough
Partners commenced as successor to Glenborough Limited
(collectively, "the Partnership").
The following discussion addresses the Partnership's financial
condition at June 30, 1995 and its results of operations for the
six months ended June 30, 1995 and 1994. This information should
be read in conjunction with the Consolidated Financial
Statements, notes thereto and other information contained
elsewhere in this report.
LIQUIDITY AND CAPITAL RESOURCES
In February 1995 and April 1995, the Partnership advanced
$125,000 and $60,000, respectively to an unaffiliated partnership
in exchange for promissory notes bearing interest at a rate of
twelve percent (12%) per annum. Both notes matured on July 28,
1995 when principal and cumulative accrued interest were due.
These notes were paid off in August 1995. Upon funding these
advances, the Partnership received loan fees of 10% of the
amounts advanced.
In March 1995, the Partnership purchased a $1,908,000 mortgage
note receivable from California Federal Bank ("CalFed"), secured
by a first deed of trust on a property owned by an affiliate.
This transaction was funded from the proceeds of a 1994 property
sale. This CalFed mortgage note had been modified and converted
into a demand note retroactive to March 28, 1995, bearing
interest at two percentage points plus the prime lending rate
(currently 9%) with principal and interest due when the note is
called. This note was paid off in May 1995.
In June 1995, the Partnership advanced $48,000 to an unaffiliated
partnership in exchange for a promissory note bearing interest at
a rate of twelve percent (12%) per annum. The note matures
September 30, 1995 with principal and cumulative accrued interest
due. Upon funding this advance, the Partnership received a loan
fee of $2,000.
The Partnership's $372,000 cash and cash equivalent balance at
June 30, 1995 coupled with the August 1995 repayment of the note
receivable discussed above, should be sufficient to meet near
term operating requirements and cover its June 30, 1995, $151,000
balance in accounts payable and accrued expenses.
Page 16 of 18
During the six months ended June 30, 1995, the Partnership
experienced negative cash flow from operations after debt service
payments and capital and tenant improvements. Short-term
prospects for liquidity and capital resources remain somewhat
problematic since one of the Partnership's current properties,
Rosemead Springs is substantially vacant, but is currently in
escrow for sale. Its related $2,500,000 note payable matured in
May 1995, but has been partially paid down to $1,000,000 and
extended to mature October 1995. Until Rosemead is sold,
management anticipates that, assuming no new leasing at Rosemead,
the Partnership's near-term cash flow will continue to be
negative.
Management is aggressively seeking new tenants and pursuing
renewals of existing leases as they expire for its multi-tenant
Bond Street building. The potential buyer for the other multi-
tenant building, Rosemead Springs, has the specific intention to
purchase the property for its own use. However, absent a sale or
dramatic improvement in local economic conditions and demand for
commercial space in and around the Rosemead property, management
anticipates rent concessions and lower effective rental rates.
As always, the Partnership remains vulnerable to a variety of
other factors beyond the Partnership's control, that may
adversely affect capital resources and liquidity, such as excess
supply in relation to demand, increases in unemployment,
population shifts, levels of corporate activity, zoning changes
and changes in tenant's needs.
Management continues to explore other opportunities where it may
invest its capital resources in order to maximize return to
investors. In the meantime, management will continue to make
short-term advances at market interest rates when and wherever
appropriate.
The Partnership suspended its distributions in 1990 in an attempt
to increase liquidity and capital resources for tenant and
capital improvements, leasing commissions, refinancing costs, and
increasing debt service payments. As of August 4, 1995,
distributions remain suspended and at this time, management is
unable to predict when they may be resumed.
RESULTS OF OPERATIONS
Total revenues and operating expenses decreased in all areas
except interest and other revenues during the three and six
months ended June 30, 1995 compared to the three and six months
ended June 30, 1994 due to the transferring of all but six of the
remaining properties back to the lender in the 1994 loan workout.
Interest and other revenue increased during the three and six
months ended June 30, 1995 over the same periods ended June 30,
1994 largely resulting from significant property tax refunds from
successful property tax appeals and the loan fees received upon
the advances to unaffiliated partnerships discussed above.
Page 17 of 18
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
The Partnership is not a party to, nor any of its
assets the subject of any material pending legal
proceedings.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item 6. Exhibits and Reports on Form 8-K
(b) Reports on Form 8-K.
No reports on Form 8-K were required to be filed during
this reporting period.
Page 18 of 18
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:
GLENBOROUGH PARTNERS,
A CALIFORNIA LIMITED PARTNERSHIP
By: By: Glenborough Realty
Corporation,
Robert Batinovich its Managing General Partner
General Partner
By:
Robert Batinovich
President and
Chairman of the Board
By:
Andrew Batinovich
Senior Vice President,
Chief Financial Officer
and Director
Date: August 10, 1995
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:
GLENBOROUGH PARTNERS,
A CALIFORNIA LIMITED PARTNERSHIP
By: /s/ Robert Batinovich By: Glenborough Realty
Corporation,
Robert Batinovich its Managing General Partner
General Partner
By: /s/ Robert Batinovich
Robert Batinovich
President and
Chairman of the Board
By: /s/ Andrew Batinovich
Andrew Batinovich
Senior Vice President,
Chief Financial Officer
and Director
Date: August 10, 1995
Page 18 of 18
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 372
<SECURITIES> 0
<RECEIVABLES> 260
<ALLOWANCES> 0
<INVENTORY> 4433
<CURRENT-ASSETS> 656
<PP&E> 18215
<DEPRECIATION> (3071)
<TOTAL-ASSETS> 20858
<CURRENT-LIABILITIES> 160
<BONDS> 15460
<COMMON> 0
0
0
<OTHER-SE> 5145
<TOTAL-LIABILITY-AND-EQUITY> 20858
<SALES> 0
<TOTAL-REVENUES> 1763
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</TABLE>
