UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 3, 1997 (June 18, 1997)
----------------------------
OUTLOOK INCOME FUND 9,
A CALIFORNIA LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)
California 0-15837 33-0202964
(State or other (Commission (IRS Employer
jurisdiction of File Number) I.D. Number)
incorporation)
400 South El Camino Real, Suite 1100, San Mateo, California 94402
(Address of principal executive offices)
Registrant's Telephone number, including area code: (415) 343-9300
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Page 1 of 8
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Item 2. ACQUISITION OR DISPOSITION OF ASSETS
On June 18, 1997, Outlook Income Fund 9, a California Limited Partnership (the
"Partnership"), sold Lake Mead Estates Apartments, a 160 unit apartment complex
located at 2068 North Nellis Boulevard in Las Vegas, Nevada to an unaffiliated
third party for $4,900,000. The proceeds from the sale were used to payoff the
loan secured by the property of approximately $3,700,000 and settlement and
other closing costs, including a transaction fee of $147,000 paid to the general
partner. The remaining net proceeds of $868,000 were added to the Partnership's
reserves.
Item 7. FINANCIAL STATEMENTS
The following pro forma financial statements represent the Partnership's balance
sheet and statement of operations as of and for the three months ended March 31,
1997 and for the year ended December 31, 1996, as if the transactions discussed
below had occurred on January 1, 1996.
The pro forma adjustments reflect: (i) the disposition of the Country Suites by
Carlson - Memphis hotel as reported in the Current Report Form 8-K filed with
the Securities and Exchange Commission (the "Commission") on April 23, 1997, and
amended in the Quarterly Report Form 10-Q filed with the Commission on May 15,
1997) and (ii) the sale of the Lake Mead Estates Apartments.
Page 2 of 8
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OUTLOOK INCOME FUND 9,
A CALIFORNIA LIMITED PARTNERSHIP
Pro forma Balance Sheet
As of March 31, 1997
(in thousands, except units outstanding)
(Unaudited)
<TABLE>
<CAPTION>
Memphis Lake Mead
Historical(1) Disposition(2) Disposition(3) Pro Forma
<S> <C> <C> <C> <C>
Assets
Investments in real estate:
Rental property, net $ 12,231 $ --- $ --- $ 12,231
Rental property held for sale 3,917 --- (3,917) ---
Rental property held pending
foreclosure 3,381 (3,381) --- ---
-------------- -------------- ------------- -------------
Total real estate investments 19,529 (3,381) (3,917) 12,231
Cash and cash equivalents 1,543 (89) --- 1,454
Notes receivable 2,000 --- --- 2,000
Accounts receivable, net 163 (43) --- 120
Deferred financing costs and
other fees, net 395 (12) (120) 263
Other assets 254 (27) (17) 210
-------------- ------------- ------------- -------------
Total assets $ 23,884 $ (3,552) $ (4,054) $ 16,278
============== ============= ============= =============
</TABLE>
- continued -
Page 3 of 8
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OUTLOOK INCOME FUND 9,
A CALIFORNIA LIMITED PARTNERSHIP
Pro forma Balance Sheet - continued
As of March 31, 1997
(in thousands, except units outstanding)
(Unaudited)
<TABLE>
<CAPTION>
Memphis Lake Mead
Historical(1) Disposition(2) Disposition(3) Pro Forma
<S> <C> <C> <C> <C>
Liabilities and Partners' Equity (Deficit)
Liabilities:
Notes payable $ 16,282 $ (3,468) $ (3,703) $ 9,111
Participating notes:
Notes issued and outstanding 4,591 --- --- 4,591
Accrued interest, thereon 5,263 --- --- 5,263
Less: Notes held in trust (3,288) --- --- (3,288)
Accrued interest, thereon (3,739) --- --- (3,739)
-------------- ------------- ------------- -------------
Net due to noteholders 2,827 --- --- 2,827
Accounts payable and accrued expenses 499 (131) (5) 363
Interest payable 850 (78) (30) 742
Other liabilities 63 --- (14) 49
-------------- ------------- -------------- -------------
Total liabilities 20,521 (3,677) (3,752) 13,092
-------------- ------------- ------------- -------------
Partners' equity (deficit):
General Partner (393) 1 (3) (395)
Limited Partners, 35,727,572 equity
units outstanding 3,756 124 (299) 3,581
-------------- ------------- ------------- -------------
Total partners' equity 3,363 125 (302) 3,186
-------------- ------------- ------------- -------------
Total liabilities and partners'
equity $ 23,884 $ (3,552) $ (4,054) $ 16,278
============== ============= ============= =============
</TABLE>
Page 4 of 8
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OUTLOOK INCOME FUND 9,
A CALIFORNIA LIMITED PARTNERSHIP
Pro forma Statement of Operations
For the three months ended March 31, 1997
(in thousands, except per unit amounts and units outstanding)
(Unaudited)
<TABLE>
<CAPTION>
Memphis Lake Mead
Historical(1) Disposition(2) Disposition(3) Pro Forma
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 2,023 $ (357) $ (254) $ 1,412
Interest and other income 123 --- (6) 117
-------------- ------------- ------------- -------------
Total revenues 2,146 (357) (260) 1,529
-------------- ------------- ------------- -------------
Expenses:
Operating 1,149 (313) (135) 701
Interest 452 (78) (89) 285
Depreciation and amortization 184 (2) (1) 181
General and administrative 102 --- --- 102
-------------- ------------- ------------- -------------
Total expenses 1,887 (393) (225) 1,269
-------------- ------------- ------------- -------------
Net income (loss) $ 259 $ 36 $ (35) $ 260
============== ============= ============= =============
Net income per equity unit $ 0.01 $ --- $ --- $ 0.01
============= ============= ============= =============
Weighted average number of equity
units outstanding during the
period used to compute net income
(loss) per equity unit 35,727,572 35,727,572 35,727,572 35,727,572
============== ============= ========== ==============
</TABLE>
Page 5 of 8
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OUTLOOK INCOME FUND 9,
A CALIFORNIA LIMITED PARTNERSHIP
Pro forma Statement of Operations
For the year ended December 31, 1996
(in thousands, except per unit amounts and units
outstanding)
(Unaudited)
<TABLE>
<CAPTION>
Memphis Lake Mead
Historical(1) Disposition(2) Disposition(3) Pro Forma
<S> <C> <C> <C> <C>
Revenues:
Rental income $ 7,208 $ (1,854) $ (970) $ 4,384
Interest and other income 478 --- (24) 454
-------------- ------------- ------------- -------------
Total revenues 7,686 (1,854) (994) 4,838
-------------- ------------- ------------- -------------
Expenses:
Operating 4,646 (1,483) (534) 2,629
Interest 1,811 (311) (360) 1,140
Depreciation and amortization 1,147 (225) (170) 752
General and administrative 419 --- --- 419
-------------- ------------- ------------- -------------
Total expenses 8,023 (2,019) (1,064) 4,940
-------------- ------------- ------------- -------------
Net income (loss) before
extraordinary item (337) 165 70 (102)
Extraordinary item:
Gain from Participating Notes
purchased 448 --- --- 448
-------------- ------------- ------------- -------------
Net income $ 111 $ 165 $ 70 $ 346
============== ============= ============= =============
Net income (loss) per equity unit:
Before extraordinary item $ (0.01) $ --- $ --- $ ---
Extraordinary item 0.01 --- --- 0.01
------------ ------------- ------------- -------------
Total $ --- $ --- $ --- $ 0.01
============ ============= ============= =============
Weighted average number of equity
units outstanding during the
period used to compute net income
(loss) per equity unit 35,732,957 35,732,957 35,732,957 35,732,957
============== ============= ============= =============
</TABLE>
Page 6 of 8
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OUTLOOK INCOME FUND 9,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Pro forma Financial Statements
As of March 31, 1997
1. Reflects the Partnership's historical balance sheet at March 31, 1997 and
historical statements of operations for the three months ended March 31,
1997 and the year ended December 31, 1996.
2. Reflects the foreclosure of the Country Suites by Carlson - Memphis
property (a 121 - suite hotel located in Memphis, Tennessee), due to the
continued insufficient funds generated from operations to cover debt
service. On March 14, 1997, the Partnership received a Notice of
Foreclosure. On April 4, 1997 the lender foreclosed upon the property.
3. Reflects the June 18, 1997 sale of the Lake Mead Estates Apartments, a 160
unit apartment complex located in Las Vegas, Nevada. The property was sold
for $4,900,000 to an unaffiliated third party.
Page 7 of 8
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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, hereunto duly authorized.
OUTLOOK INCOME FUND 9,
A CALIFORNIA LIMITED PARTNERSHIP
By: Glenborough Corporation,
a California corporation
Its Managing General Partner
Date: July 3, 1997 By: /s/ Terri Garnick
-------------------------
Terri Garnick
Chief Financial Officer
