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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
AMENDED CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) August 20, 1998
UNIPROP MANUFACTURED HOUSING COMMUNITIES INCOME FUND II
(Exact name of registrant as specified in its charter)
Michigan 0-16701 38-2702802
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
280 Daines Street, Suite 300, Birmingham, MI 48009
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (248) 645-9261
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Not Applicable
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(Former name or former address, if changed since last report)
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Item 7. Financial Statements and Exhibits
AMENDMENT TO PRIOR REPORT: This Current Report on Form 8-K/A hereby
amends and makes reference to the registrant's Current Report on Form 8-K
dated (and filed) September 4, 1998 reporting Item 2, Acquisition or
Disposition of Assets, which is incorporated herein by reference.
(b) Pro forma financial information.
On August 20, 1998, Uniprop Manufactured Housing Communities Income Fund II
(the "Partnership") borrowed $30,000,000 (the "Loan") from GMAC Commercial
Mortgage Corporation ("GMACCM"). The Loan carries a fixed interest rate of
6.37% over its term of 120 months, amortized over 30 years. The Loan was
secured by mortgages on the Partnership's Ardmor Village, Camelot Manor,
Dutch Hills, El Adobe, Stonegate Manor, Sunshine Village and West Valley
properties. The Partnership used the proceeds from the Loan to refinance
the Partnership's outstanding indebtedness of $30,045,000 (the "Existing
Indebtedness").
1. The unaudited pro forma balance sheet of Uniprop Manufactured
Housing Communities Income Fund II as of June 30, 1998, giving
effect to the loan secured by the mortgages on the Company's
Ardmor Village, Camelot Manor, Dutch Hills, El Adobe,
Stonegate Manor, Sunshine Village and West Valley properties,
as if such transaction had occurred on June 30, 1998.
2. The unaudited pro forma statement of income of Uniprop
Manufactured Housing Communities Income Fund II for the six
months ended June 30, 1998, and the twelve months ended
December 31, 1997, giving effect to the loan secured by the
mortgages on the Partnership's Ardmor Village, Camelot Manor,
Dutch Hills, El Adobe, Stonegate Manor, Sunshine Village and
West Valley properties, as if such transaction had occurred on
January 1, 1997.
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UNAUDITED PRO FORMA FINANCIAL INFORMATION
The following pro forma balance sheet as of June 30, 1998, and the pro forma
statements of income for the six months then ended, and for year ended December
31, 1997, have been prepared to reflect the Refinancing and the related
adjustments described in the accompanying notes. The pro forma information is
based on the historical financial statements of Uniprop Manufactured Housing
Communities Income Fund II and should be read in conjunction with the notes
thereto. The pro forma statements of income were prepared as if the Refinancing
had occurred on January 1, 1997. The pro forma financial information is
unaudited and not necessarily indicative of the results of operations which
actually would have occurred if the Refinancing had been consummated at the
beginning of 1997, nor does it purport to represent the financial position or
results of operations for future periods. The pro forma balance sheet was
prepared as if the Refinancing had occurred at June 30, 1998.
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UNIPROP MANUFACTURED HOUSING COMMUNITIES INCOME FUND II
(A MICHIGAN LIMITED PARTNERSHIP)
PRO FORMA BALANCE SHEET
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
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Historical Adjustments Pro Forma
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<S> <C> <C> <C>
ASSETS
Net property and equipment $ 45,539,846 $ - $ 45,539,846
Cash and cash equivalents 1,310,695 (174,730) (A) 1,135,965
Marketable securities 875,859 - 875,859
Mortgage-backed securities 1,502,250 (1,502,250) (B) -
Unamortized financing costs 917,677 28,811 (C) 946,488
Investment 998,995 (998,995) (D) -
Other assets 494,752 - 494,752
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$ 51,640,074 $ (2,647,164) $ 48,992,910
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LIABILITIES AND PARTNERS' EQUITY
Notes payable $ 30,045,000 $ (45,000) (E) $ 30,000,000
Accounts payable 149,431 - 149,431
Other liabilities 944,436 (229,730) (F) 714,706
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TOTAL LIABILITIES 31,138,867 (274,730) 30,864,137
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PARTNERS' EQUITY
Unit holders 20,267,382 (2,373,711) 17,893,671
General partner 233,825 1,277 235,102
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TOTAL PARTNERS' EQUITY 20,501,207 (2,372,434) (G) 18,128,773
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$ 51,640,074 $ (2,647,164) $ 48,992,910
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</TABLE>
NOTES
(A) The net decrease relates to the assumed payment of $229,730 of historical
accrued interest on the existing indebtedness, and the receipt of $55,000
in cash reserves as a result of the Refinancing.
(B) Represents proceeds from liquidation of mortgage-backed securities ("Class
D").
(C) The net increase is as a result of the write-off of $871,189 historical
financing costs related to the existing indebtedness, and the payment of
$900,000 in financing costs related to the Refinancing.
(D) Represents a portion of the proceeds from the liquidation of the
investment ("Class R Security"). See also (G) below.
(E) The net decrease is as a result of the pay-off of the existing
indebtedness of $30,045,000 and the receipt of $30,000,000 in loan
proceeds from the Refinancing.
(F) See (A) above.
(G) The net decrease has four components:
1. The expense related to the write-off of $871,189 in financing costs
(See (C) above).
2. The gain of $1,298,755 ($2,297,750 total proceeds less $998,995 cost -
see (D) above) from the liquidation of the investment ("Class R
Security").
3. Payment of $2,500,000 to the limited partners using available proceeds
of the Refinancing.
4. Payment of $300,000 prepayment penalty on the existing indebtedness.
<PAGE> 5
UNIPROP MANUFACTURED HOUSING COMMUNITIES INCOME FUND II
(A MICHIGAN LIMITED PARTNERSHIP)
PRO FORMA STATEMENT OF INCOME
SIX MONTHS ENDED JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
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HISTORICAL ADJUSTMENTS PRO FORMA
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<S> <C> <C> <C>
INCOME
Rental $ 5,707,802 $ - $ 5,707,802
Interest 56,334 (56,334) (A) -
Other 334,882 - 334,882
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6,099,018 (56,334) 6,042,684
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OPERATING EXPENSES
Property Operations 1,285,917 - 1,285,917
Depreciation and Amortization 920,000 (4,037) (B) 915,963
Administrative 1,718,029 - 1,718,029
Property Taxes 471,399 - 471,399
Interest 1,340,017 (399,781) (C) 940,236
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5,735,362 (403,818) 5,331,544
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NET INCOME $ 363,656 $ 347,484 $ 711,140
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INCOME PER LIMITED PARTNERSHIP UNIT $ .11 $ .21
DISTRIBUTIONS PER LIMITED PARTNERSHIP UNIT $ .34 $ .34
BOOK VALUE PER LIMITED PARTNERSHIP UNIT $ 6.14 $ 5.70
NUMBER OF LIMITED PARTNERSHIP UNITS 3,303,387 3,303,387
NET INCOME ALLOCABLE TO GENERAL PARTNER $ 3,637 $ 7,111
DISTRIBUTIONS ALLOCABLE TO GENERAL PARTNER - -
BOOK VALUE ALLOCABLE TO GENERAL PARTNER $ 233,825 $ 244,482
RATIO OF EARNINGS TO FIXED CHARGES (D) 1.27 1.76
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</TABLE>
NOTES
(A) Elimination of interest earnings on mortgage-backed securities ("Class D")
that were included in historical interest income.
(B) Net decrease results from the elimination of $19,811 in amortization of
financing costs related to the existing indebtedness, and the addition of
amortization totalling $15,774 related to financing costs incurred in the
Refinancing. (Financing costs are amortized over a 30-year period using
the straight-line method.)
(C) The decrease represents the interest expense reduction as a result of the
Refinancing, calculated as follows:
- Elimination of historical interest expense on existing
indebtedness $(1,340,017)
- Interest expense as a result of Refinancing 940,236
(D) Calculated as follows: (net income + interest expense) divided by
interest expense.
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UNIPROP MANUFACTURED HOUSING COMMUNITIES INCOME FUND II
(A MICHIGAN LIMITED PARTNERSHIP)
PRO FORMA STATEMENT OF INCOME
YEAR ENDED DECEMBER 31, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
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HISTORICAL ADJUSTMENTS PRO FORMA
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<S> <C> <C> <C>
INCOME
Rental $ 11,340,654 $ - $ 11,340,654
Interest 203,570 (112,675) (A) 90,895
Gain on liquidation of investment ("Class R Security") - 1,298,755 (B) 1,298,755
OTHER 378,302 - 378,302
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11,922,526 1,186,080 13,108,606
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OPERATING EXPENSES
Property operations 4,347,873 - 4,347,873
Depreciation and amortization 1,850,779 (9,139) (C) 1,841,640
Administrative 998,950 - 998,950
Write-off of financing costs - 1,230,139 (D) 1,230,139
Property taxes 896,103 - 896,103
Interest 2,661,565 (753,239) (E) 1,908,326
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10,755,270 467,761 11,223,031
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NET INCOME $ 1,167,256 $ 718,319 $ 1,885,575
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INCOME PER LIMITED PARTNERSHIP UNIT $ .35 $ .57
DISTRIBUTIONS PER LIMITED PARTNERSHIP UNIT $ .64 $ 1.40
BOOK VALUE PER LIMITED PARTNERSHIP UNIT $ 6.37 $ 5.82
NUMBER OF LIMITED PARTNERSHIP UNITS 3,303,387 3,303,387
NET INCOME ALLOCABLE TO GENERAL PARTNER $ 11,673 $ 18,856
DISTRIBUTIONS ALLOCABLE TO GENERAL PARTNER - -
BOOK VALUE ALLOCABLE TO GENERAL PARTNER $ 230,188 $ 237,371
RATIO OF EARNINGS TO FIXED CHARGES (F) 1.44 1.99
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</TABLE>
NOTES
(A) Elimination of interest earnings on mortgage-backed securities ("Class D")
that were included in historical interest income.
(B) Represents the gain recognized on liquidation of investment ("Class R
Security").
(C) Net decrease results from the elimination of $39,139 in amortization of
financing costs related to the existing indebtedness, and the addition of
amortization totalling $30,000 related to financing costs incurred in the
Refinancing. (Financing costs are amortized over a 30-year period using
the straight-line method.)
(D) Write-off of financing costs of $930,139 as of January 1, 1997 relating to
the existing indebtedness and the payment of a $300,000 prepayment penalty
on the existing indebtedness.
(E) The decrease represents the interest expense reduction as a result of the
Refinancing, calculated as follows:
- Elimination of historical interest expense on existing
indebtedness $(2,654,320)
- Interest expense as a result of refinancing 1,901,081
(F) Calculated as follows: (net income + interest expense) divied by
interest expense.
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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 thereunto duly authorized.
Date: September 15, 1998
UNIPROP MANUFACTURED HOUSING
COMMUNITIES INCOME FUND II,
a Michigan Limited Partnership
BY: Genesis Associates Limited Partnership,
Its General Partner
BY: Uniprop, Inc.,
Its Managing General Partner
By: /s/ Paul M. Zlotoff
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Paul M. Zlotoff, Chairman
