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: 0-15837
OUTLOOK INCOME FUND 9,
A CALIFORNIA LIMITED PARTNERSHIP
----------------------------------------------------------
(Exact name of Registrant as specified in its charter)
California 33-0202964
-------------------------------- ----------------
(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 executive offices) (Zip Code)
(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: 35,742,572
NO EXHIBIT INDEX REQUIRED
Page 1 of 17
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
OUTLOOK INCOME FUND 9,
A CALIFORNIA LIMITED PARTNERSHIP
Balance Sheets
(in thousands, except Unit amounts)
(Unaudited)
June 30, December 31,
Assets 1995 1994
------- ----------- ------------
Real estate investments, at cost:
Land $ 4,192 $ 4,192
Building and improvements 25,693 25,510
-------- --------
29,885 29,702
Less accumulated depreciation (9,013) (8,479)
-------- --------
Net real estate investments 20,872 21,223
Property held for sale, net - 9,282
Property held pending foreclosure,
net - 3,591
Cash and cash equivalents 274 801
Notes receivable 2,000 2,000
Accounts receivable, net 162 87
Prepaid expenses and other assets 197 280
Deferred financing costs and other
fees (net of accumulated
amortization of $1,083 and
$1,014 in 1995 and 1994,
respectively) 704 1,015
-------- --------
Total assets $ 24,209 $ 38,279
======== ========
(continued)
See accompanying notes to financial statements.
Page 2 of 17
OUTLOOK INCOME FUND 9,
A CALIFORNIA LIMITED PARTNERSHIP
Balance Sheets - continued
(in thousands, except Unit amounts)
(Unaudited)
June 30, December 31,
1995 1994
----------- -----------
Liabilities and Partners' Equity (Deficit)
------------------------------------------
Notes payable - secured $ 14,900 $ 26,076
Participating notes:
Notes issued and outstanding 4,915 5,229
Accrued interest, thereon 4,601 4,582
Less: Notes held in trust (2,656) (544)
Accrued interest, thereon (2,458) (413)
-------- --------
Net due to outside holders 4,402 8,854
Note payable - unsecured - 7
Accrued interest payable 694 785
Accounts payable 116 152
Accrued expenses 390 247
Deferred income and security
deposits 74 134
-------- --------
Total liabilities 20,576 36,255
Partners' equity (deficit):
General Partner (391) (407)
Limited Partners, 35,742,572
Equity Units outstanding 4,024 2,431
-------- --------
Total partners' equity 3,633 2,024
-------- --------
Total liabilities and
partners' equity $ 24,209 $ 38,279
======== ========
See accompanying notes to financial statements.
Page 3 of 17
OUTLOOK INCOME FUND 9,
A CALIFORNIA LIMITED PARTNERSHIP
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:
Operating $ 4,357 $ 5,066 $ 1,822 $ 2,489
Interest and other 231 197 101 81
------ ------ ------ ------
Total revenues 4,588 5,263 1,923 2,570
------ ------ ------ ------
Expenses:
Operating (including $1,193 and
$1,340 paid to affiliates in
the six months ended June 30,
1995 and 1994, respectively) 2,885 3,289 1,293 1,661
General and administrative
(including $229 and $246 paid
to affiliates in the six
months ended June 30, 1995
and 1994, respectively) 290 298 152 144
Depreciation and amortization 863 909 399 454
Interest 1,221 1,545 477 771
------ ------ ------ ------
Total expenses 5,259 6,041 2,321 3,030
------ ------ ------ ------
Loss before extraordinary items (671) (778) (398) (460)
Extraordinary items:
Gain on sale of assets 155 - - -
Gain on deed-in-lieu of
foreclosure 196 - 196 -
Gain from Participating Notes
purchased 1,929 - 21 -
------ ------ ------ ------
Total extraordinary items 2,280 - 217 -
Net income (loss) $ 1,609 $ (778) $ (181) $ (460)
====== ====== ====== ======
Net income (loss) per Equity
Unit $ 0.04 $(0.02) $(0.01) $(0.01)
====== ====== ====== ======
Distributions per equity unit $ - $ - $ - $ -
====== ====== ====== ======
See accompanying notes to financial statements.
Page 4 of 17
OUTLOOK INCOME FUND 9,
A CALIFORNIA LIMITED PARTNERSHIP
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
-------- -------- --------
Balance at December 31, 1993 $ (378) $ 5,295 $ 4,917
Net loss (8) (770) (778)
-------- -------- --------
Balance at June 30, 1994 $ (386) $ 4,525 $ 4,139
======== ======== ========
Balance at December 31, 1994 $ (407) $ 2,431 $ 2,024
Net income 16 1,593 1,609
-------- -------- --------
Balance at June 30, 1995 $ (391) $ 4,024 $ 3,633
======== ======== ========
See accompanying notes to financial statements.
Page 5 of 17
OUTLOOK INCOME FUND 9,
A CALIFORNIA LIMITED PARTNERSHIP
Statements of Cash Flows (in thousands)
(Unaudited)
Six months ended
June 30,
------------------
1995 1994
------ ------
Cash flows provided by operating activities:
Net income (loss) $ 1,609 $ (778)
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation and amortization 863 909
Gain on sale of asset (155) -
Gain on deed-in-lieu of foreclosure (196) -
Gain from Participating Notes purchased (1,929) -
Changes in assets and liabilities:
Accounts receivable (75) (46)
Prepaid expenses and other assets 83 7
Deferred financing and other fees 136 (76)
Accounts payable (36) -
Accrued expenses 143 (104)
Accrued interest payable 107 308
Deferred income and security deposits (60) 3
-------- --------
Net cash provided by operating activities 490 223
-------- --------
Cash flows provided by (used for) investing activities:
Acquisitions of and additions to real estate (199) (299)
Proceeds from sale of Millwood 9,549 -
-------- --------
Net cash provided by (used for) investing activities 9,350 (299)
-------- --------
Cash flows provided by (used for) financing activities:
Notes payable principal payments (7,639) (347)
Repayment of unsecured notes payable (2,007) (2)
Borrowings on unsecured notes payable 2,000 -
Payment of Participating Notes and accrued
interest from Millwood sale (609) -
Buy-back of Participating Note units - discounted (2,112) -
-------- --------
Net cash used for financing activities (10,097) (349)
-------- --------
Net decrease in cash and cash equivalents (527) (425)
Cash and cash equivalents at beginning of period 801 1,375
-------- --------
Cash and cash equivalents at end of period $ 274 $ 950
======== ========
Supplemental disclosure of cash flow information:
Cash paid for interest $ 1,194 $ 1,036
======== ========
-continued-
Page 6 of 17
OUTLOOK INCOME FUND 9,
A CALIFORNIA LIMITED PARTNERSHIP
Statements of Cash Flows (in thousands)
(Unaudited)
Supplemental disclosure of noncash transactions:
Reduction of accrued interest payable resulting from
purchase of Participating Notes at discount $ 1,929 $ -
======== ========
Reduction of real estate investments resulting
from a deed-in-lieu of foreclosure $ 3,718 $ -
======== ========
Reduction of note payable resulting from a
deed-in-lieu of foreclosure $ 3,537 $ -
======== ========
See accompanying notes to financial statements.
Page 7 of 17
OUTLOOK INCOME FUND 9,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Financial Statements
June 30, 1995
(Unaudited)
Note 1. 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 Outlook
Income Fund 9, A California Limited Partnership (the
"Partnership"), as of June 30, 1995 and December 31, 1994, and
the related statements of operations for the six and three months
ended June 30, 1995 and 1994, and the changes in partners' equity
and cash flows for the six months ended June 30, 1995 and 1994.
Note 2. REFERENCE TO 1994 AUDITED FINANCIAL STATEMENTS
----------------------------------------------
These unaudited financial statements should be read in
conjunction with the Notes to Financial Statements included in
the 1994 audited financial statements.
Note 3. TRANSACTIONS WITH AFFILIATES
----------------------------
Glenborough Corporation and Glenborough Hotel Group
("Glenborough"), affiliates of Glenborough Realty Corporation,
have been compensated for management services. Included in
operating expenses for the six months ended June 30, 1995 and
1994, are the following amounts paid to Glenborough:
1995 1994
-------- --------
Property management fees $ 90,500 $ 118,200
Property salaries (reimbursed) 101,900 186,700
Hotel management fees 135,900 141,200
Hotel salaries (reimbursed) 865,100 893,500
The Partnership also reimbursed Glenborough for expenses incurred
for services provided to the Partnership such as accounting,
investor services, data processing, duplicating and office
supplies, legal and administrative services and the actual costs
of goods and materials used for or by the Partnership.
Glenborough was reimbursed $229,100 and $236,100 by the
Partnership for such expenses during the six months ended June
30, 1995 and 1994, respectively. Such amounts are included in
general and administrative expenses.
In addition, in accordance with the Partnership Agreement, the
Partnership paid Glenborough a transaction fee in January 1994 of
$9,500 for negotiating the October 1993 financing in the form of
a first deed of trust note secured by Branford Business Park.
Such expense is included in general and administrative expenses.
Page 8 of 17
OUTLOOK INCOME FUND 9,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Financial Statements
June 30, 1995
(Unaudited)
The Partnership paid Glenborough Corporation a 3% property
disposition fee in the amount of $312,000 for the Millwood sale
(discussed in Note 4). The fee was computed in accordance with
the partnership agreement and was included in the net gain on
sale of assets.
Note 4. PROPERTY SALES
--------------
In December 1993, based upon the deterioration of the local
market as seen in the steady decline of occupancy, market rents
and net operating income from 1991, and based on the unsuccessful
attempt at generating interest in the Branford property at an
asking price approximately equivalent to the book value of the
property, management determined that the carrying value of
Branford Business Park had been impaired. As a result, the
Partnership recorded a writedown of $1,697,400 to reduce the
carrying value of the property to its estimated net realizable
value.
On November 15, 1994, the Partnership sold Branford Business Park
to an unaffiliated third party for $2,675,000, out of which
$700,000 was used to payoff the outstanding note secured by the
property. The Partnership financed a $2,000,000 note at 8.5%
interest with interest-only payments due until maturity on
November 11, 1999. Since the cash received from the transaction
was used to payoff the outstanding note, the Partnership was
responsible for paying $166,000 in closing costs. The
Partnership incurred a loss on the sale in the amount of
$257,000.
On March 28, 1995, the Partnership sold Millwood Estates
Apartments to an unaffiliated third party for $10,400,000, out of
which $7,572,400 was used to payoff the outstanding note secured
by the property. In addition, sales proceeds were used to payoff
the $2,000,000 note payable used to repurchase Participating
Notes (as discussed in Note 5). After closing costs and the
payoff of the two notes, the Partnership netted cash proceeds in
the amount of $152,300. The Partnership recognized a gain on
sale on its 1995 Statement of Operations in the amount of
$155,000. In anticipation of the sale of the property,
management reclassified the net book value of Millwood Estates
Apartments to "Property held for sale" on the Partnership's
December 31, 1994 balance sheet.
Page 9 of 17
OUTLOOK INCOME FUND 9,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Financial Statements
June 30, 1995
(Unaudited)
Note 5. PARTICIPATING NOTES
--------------------
In January 1994, the Partnership sent a "Conditional Offer to
Purchase 12% Participating Notes" ("the Offer") to all Note
investors. The Offer was made to Noteholders in an effort to
reduce the impact of the Notes' accrued interest on the value of
the Equity Units. The Offer was contingent upon selling one or
more properties or otherwise obtaining financing to raise the
cash needed to repurchase the Notes at a discount. The Offer
originally expired December 1, 1994 but was extended an
additional 60 days. Approximately 46% of the Noteholders
accepted the offer. Buying back these notes will provide a
significant interest savings to the Partnership, which will
benefit the Equity Unit investors (whose returns are subordinated
to the Noteholders' receiving a return of principal plus 12%
simple deferred interest per annum). On February 15, 1995, the
Partnership repurchased approximately $2,190,000 in principal of
the Participating Notes with accrued interest of approximately
$1,908,000 for a total purchase price of $2,190,000 with the
proceeds from a $2,000,000 short-term loan. By June 30, 1995,
some of the Noteholders who originally accepted the Offer
declined it. Therefore, the final amount of repurchased
Participating Notes at June 30, 1995 was $2,112,000. Accrued
interest on these Notes amounted to $1,929,000. The accrued
interest equated to the discount, since the noteholders who
accepted the Offer received the principal amount of their
original note without any of the deferred interest accrued to
date. The forgiveness was recognized as an extraordinary gain on
the Partnership's 1995 statement of operations. The Notes and
accrued interest will be held in trust for the benefit of the
Partnership.
On January 27, 1995, the Partnership borrowed $2,000,000 from an
unaffiliated lender to facilitate the repurchase of Notes as
discussed above. Since the Partnership was relying on the
proceeds from the sale of a property to fund the repurchase of
the Notes, but such funds would not be available until the sale
of Millwood Estates, the Partnership borrowed the money necessary
to facilitate the purchase in order to meet the deadline required
by the Offer. The loan required interest-only payments at a
variable interest rate (11% at March 28, 1995) and matured June
26, 1995. However, the loan was paid off on March 28, 1995 with
a portion of the proceeds from the sale of Millwood Estates
Apartments (discussed in Note 4).
On June 9, 1995, the Partnership paid $609,000 ($314,000 of
Participating Notes principal with accrued interest in the amount
of $295,000) to the Noteholders as a result of the sale of
Page 10 of 17
OUTLOOK INCOME FUND 9,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Financial Statements
June 30, 1995
(Unaudited)
Millwood Estates in accordance with the Participating Notes
Indenture. Due to cash constraints experienced by the
Partnership, $279,300 was accrued and payable at June 30, 1995.
In June 1995, the Partnership sent a second "Conditional Offer to
Purchase 12% Participating Notes" (the "second Offer") to the
remaining Noteholders. The second Offer is for the repurchase of
the Notes for a price equal to 135% of the Noteholders original
investment (ie. the purchase price for each Note will be $1.35
compared to an approximate current Note and accrued interest
value of $1.95). The second Offer is contingent upon the
Partnership's ability to raise the funds necessary from the sale
of properties for the repurchase. The Partnership reserves the
right to repurchase only some of the Notes or not to repurchase
any Notes, depending upon the amount of Noteholders who accept
the second Offer and the price at which the Partnership is able
to sell the properties. The second Offer expires October 31,
1995, but the Partnership retains the right to extend the
expiration to December 31, 1995.
Note 6. PROPERTY HELD PENDING FORECLOSURE
---------------------------------
Based on the continued low occupancy due to market saturation,
and the property's inability to meet debt service payments,
management negotiated a deed-in-lieu of foreclosure with the
lender on the Regency Residence property. The Partnership paid
all net cash flow (defined as all income collected less operating
expenses) to the lender from November 1994 until title to the
property passed on May 26, 1995. The principal balance of the
note secured by the property on May 26, 1995 was $3,537,000, with
accrued interest in the amount of $98,700.
The Partnership recorded a write-down of $835,900 to reduce the
carrying value of the property to the balance of the note payable
and accrued interest at December 31, 1994.
The Partnership recognized a gain on deed-in-lieu of foreclosure
in the amount of $196,000 primarily due to the write-off of
accrued property taxes that the property was unable to pay. The
gain is included on the Partnership's 1995 statement of
operations.
Page 11 of 17
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
LIQUIDITY AND CAPITAL RESOURCES
Outlook Income Fund 9 was formed to invest in improved, income-
producing real estate with the following objectives: (i) preserve
and protect capital, (ii) provide substantially tax-sheltered
distributions to Unit holders, and (iii) offer the potential for
appreciation in value.
Distributions were paid by the Partnership through the first
quarter of 1991. But the Partnership had historically paid more
in distributions than it earned, and had depleted its reserves.
Since 1991, management has been striving to reduce debt and
rebuild reserves to a level of at least $2,000,000. At this
time, management is unable to predict when distributions will
resume.
In January 1994, the Partnership sent a "Conditional Offer to
Purchase 12% Participating Notes" ("the Offer") to all Note
investors. The Offer was made to Noteholders in an effort to
reduce the impact of the Notes' accrued interest on the value of
the Equity Units. The Offer was contingent upon selling one or
more properties or otherwise obtaining financing to raise the
cash needed to repurchase the Notes at a discount. The Offer
originally expired December 1, 1994 but was extended an
additional 60 days. Approximately 46% of the Noteholders
accepted the offer. Buying back these notes will provide a
significant interest savings to the Partnership, which will
benefit the Equity Unit investors (whose returns are subordinated
to the Noteholders' receiving a return of principal plus 12%
simple deferred interest per annum). On February 15, 1995, the
Partnership repurchased approximately $2,190,000 in principal of
the Participating Notes with accrued interest of approximately
$1,908,000 for a total purchase price of $2,190,000 with the
proceeds from a $2,000,000 short-term loan. By June 30, 1995,
some of the Noteholders who originally accepted the Offer
declined it. Therefore, the final amount of repurchased
Participating Notes at June 30, 1995 was $2,112,000. Accrued
interest on these Notes amounted to $1,929,000. The accrued
interest equated to the discount, since the noteholders who
accepted the offer received the principal amount of their
original note without any of the deferred interest accrued to
date (see Note 5 of the Notes to Financial Statements). The
forgiveness was recognized as an extraordinary gain on the
Partnership's 1995 statement of operations. The notes and
accrued interest will be held in trust for the benefit of the
Partnership.
On January 27, 1995, the Partnership borrowed $2,000,000 from an
unaffiliated lender (guaranteed by the General Partner) to
facilitate the repurchase of Notes as discussed above. Since the
Partnership was relying on the proceeds from the sale of a
property to fund the repurchase of the Notes, but such funds
would not be available until the sale of Millwood Estates, the
Page 12 of 17
Partnership borrowed the money necessary to facilitate the
purchase in order to meet the deadline required by the Offer.
The loan required interest-only payments at a variable interest
rate (11% at March 28, 1995) and matured June 26, 1995. However,
the loan was paid off on March 28, 1995 with a portion of the
proceeds from the sale of Millwood Estates Apartments (discussed
in Note 4 of the Notes to Financial Statements).
In anticipation of the Regency Residence property being given to
the bank by a deed-in-lieu of foreclosure as discussed in Note 6
of the Notes to Financial Statements, the Partnership recorded a
net realizable value reserve in the amount of $835,900 at
December 31, 1994 and reclassed the net book value to "Property
held pending foreclosure, net" on the Partnership's balance
sheet. The realizable value reserve brought the net book value
of the property down to the amount outstanding (principal and
accrued interest) on the note secured by the property. Title to
the property passed to the lender on May 26, 1995 (see Note 6 of
the Notes to Financial Statements).
On March 28, 1995, the Partnership sold Millwood Estates
Apartments to an unaffiliated third party for $10,400,000, out of
which $7,572,400 was used to payoff the outstanding note secured
by the property. In addition, sales proceeds were used to payoff
the $2,000,000 note payable used to repurchase Participating
Notes (as discussed in Note 5 of the Notes to Financial
Statements). In anticipation of the sale of the property,
management reclassified the net book value of Millwood Estates
Apartments to "Property held for sale" on the Partnership's
December 31, 1994 balance sheet.
Accounts receivable at June 30, 1995 increased $75,000 to
$162,000 from $87,000 at December 31, 1994 due primarily to an
increase in accounts receivable at the Memphis and Tempe
properties associated with tour groups which accounted for a
large percentage of occupancy at the properties. Management
expects full collection of these receivables and payments are
currently being made on the accounts.
Prepaid expenses and other assets decreased $83,000 from December
31, 1994 to June 30, 1995 primarily due to payments from property
tax and insurance impound accounts which are required by two
lenders who hold the notes secured by the Lake Mead and Bryant
Lake properties. Property taxes for these properties are
primarily due in the second and fourth quarter of each calendar
year.
Deferred financing costs and other fees decreased by
approximately $311,000 from December 31, 1994 to June 30, 1995 as
a result of the amortization of costs and the sale of Millwood
Estates Apartments. Net loan fees in the amount of $193,000
relating to the Millwood loan were written-off as a result of the
sale of the property.
The $11,176,000 decrease in notes payable-secured from December
31, 1994 to June 30, 1995 was primarily due to the payoff of the
Page 13 of 17
loan secured by the Millwood property in the amount of $7,618,000
as part of the sale on March 28, 1995 and the write-off of the
debt associated with the Regency Residence property deed-in-lieu
of foreclosure on May 26, 1995 in the amount of $3,537,000.
Accrued expenses increased approximately $143,000 from $247,000
at December 31, 1994 to $390,000 at June 30, 1995 due to an
accrual in the amount of $279,300 associated with the payment of
Participating Notes and relating accrued interest as a result of
the Millwood sale (as discussed in Note 5 of the Notes to
Financial Statements), partially offset by a decrease in accrued
property taxes.
Management's ongoing business plan for the Partnership is to
preserve capital, reduce debt and rebuild reserves. Management
has already successfully restructured the Partnership's deferred
interest debt which has lowered interest expense and stabilized
payments through the loan terms and paid down the Participating
Notes at a discount. By restructuring and/or reducing debt,
building reserves, suspending distributions, and prudent day to
day management of income and expenditures, management is striving
to maintain stable operations and endure the challenge of the
market.
Results of Operations
----------------------
Operating revenues of $4,357,000 for the six month period ending
June 30, 1995 decreased $709,000 compared to the six month period
ending June 30, 1994 primarily as a result of decreased revenue
resulting from the disposition of the Millwood and Regency
Residence properties which accounted for a $505,000 and $194,000
decrease, respectively. Occupancies of the Partnership's
remaining properties did not vary significantly from June 30,
1994 to June 30, 1995.
Following is a comparison of occupancy (and average daily room
rate for the hotels) of the properties currently owned by the
Partnership:
Occupancy Level
Percentage
------------------
June 30, June 30,
1995 1994
--------- ---------
Lake Mead Estates 91% 99%
Bryant Lake Phases I and II 100% 100%
Bryant Lake Phase III 99% 91%
Country Suites - Memphis 72% 77%
Average Daily Room Rate $52.58 $52.37
Country Suites - Tempe 89% 87%
Average Daily Room Rate $53.04 $46.93
Operating expenses of $2,885,000 for the six month period ending
June 30, 1995 decreased $404,000 compared to the six month period
Page 14 of 17
ending June 30, 1994 primarily as a result of decreased expenses
resulting from the disposition of the Millwood and Regency
Residence properties which accounted for a $185,000 and $191,000
decrease, respectively.
The decrease in depreciation and amortization of $46,000 from
June 30, 1994 to June 30, 1995 is a result of the decrease in
depreciable assets relating to the disposition of the Millwood
and Regency Residence properties.
The decrease in interest expense of $324,000 from June 30, 1994
to June 30, 1995 is a result of the disposition of the Millwood
and Regency Residence properties which accounted for a $188,000
and $54,000 decrease, respectively. In addition, $82,000 of the
decrease relates to the repurchase of the Participating Notes by
the Partnership.
As discussed in Note 4 of the Notes to Financial Statements, the
sale of Millwood Estates resulted in a gain of $155,000 and is
included on the Partnership's 1995 statement of operations.
As discussed in Note 6 of the Notes to Financial Statements, the
Regency Residence deed-in-lieu of foreclosure resulted in a gain
of $196,000 and is included on the Partnership's 1995 statement
of operations.
As discussed in Note 5 of the Notes to Financial Statements, the
repurchase of Participating Notes and the forgiveness of the
related accrued interest resulted in a gain of $1,929,000 and is
included on the Partnership's 1995 statement of operations.
Page 15 of 17
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
None.
(b) Reports on Form 8-K
On June 13, 1995, the Partnership filed a report
on Form 8-K reporting the sale of Millwood Estates on
March 28, 1995.
On June 19, 1995, the Partnership file a report of
Form 8-K reporting the deed-in-lieu of foreclosure
for the Regency Residence property on May 26,
1995.
Page 16 of 17
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.
OUTLOOK INCOME FUND 9,
A CALIFORNIA LIMITED PARTNERSHIP
By: Glenborough Realty Corporation
a California corporation
Managing General Partner
Date: August 11, 1995 By: /s/ Andrew Batinovich
----------------------------
Andrew Batinovich
Senior Vice President,
Chief Financial Officer
and Director
