FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 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 33-11013
ASSOCIATED PLANNERS REALTY INCOME FUND
(Exact name of registrant as specified in its charter)
CALIFORNIA 95-4120092
(State or other Jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
5933 W. CENTURY BLVD., SUITE 900
LOS ANGELES, CALIFORNIA 90045
(Address of principal executive offices)
(Zip Code)
(310) 670-0800
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last
report)
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>
ASSOCIATED PLANNERS REALTY INCOME FUND
(A California Limited Partnership)
ITEM 1. FINANCIAL STATEMENTS
In the opinion of the General Partner of Associated Planners Realty
Income Fund (the "Partnership"), all adjustments necessary for a fair
presentation of the Partnership's results for the three and nine months ended
September 30, 1995 and 1994, have been made in the following financial
statements which are of normal recurring entries in nature. However, such
financial statements are unaudited and are subject to any year-end
adjustments that may be necessary.
<TABLE>
BALANCE SHEETS
September 30, 1995 (Unaudited)and December 31, 1994
<CAPTION>
September 30, December 31,
1995 1994
<S> <C> <C>
ASSETS
RENTAL REAL ESTATE, net of
accumulated depreciation (Note 2) $4,097,367 $4,160,924
CASH & CASH EQUIVALENTS 76,651 85,804
INVESTMENT IN GOVERNMENT SECURITIES 172,553 163,272
OTHER ASSETS 54,276 25,929
$4,400,847 $4,435,929
LIABILITIES AND PARTNERS' EQUITY
ACCRUED LIABILITIES $22,325 $24,316
PROPERTY SECURITY DEPOSITS 26,290 30,698
TOTAL LIABILITIES 48,615 55,014
COMMITMENTS AND CONTINGENCIES
PARTNERS' EQUITY:
Limited Partner:
$1,000 stated value per unit;
authorized 12,000 units;
issued and outstanding - 5,096 4,151,932 4,196,996
General Partner: 200,300 183,919
TOTAL PARTNERS EQUITY 4,352,232 4,380,915
$4,400,847 $4,435,929
</TABLE>
[FN]
See accompanying notes to financial statements.<PAGE>
<PAGE>
<TABLE>
ASSOCIATED PLANNERS REALTY INCOME FUND
(A California Limited Partnership)
STATEMENTS OF PARTNERS' EQUITY
Six Months Ended June 30, 1995
(Unaudited)
<CAPTION>
Limited Partners General
Total Units Amount Partner
<S> <C> <C> <C> <C>
BALANCE, December 31, 1994 $4,380,915 5,096 $4,196,996 $183,919
Net income 97,606 --- 81,225 16,381
Distributions to limited partners (126,289) --- (126,289) ---
BALANCE, September 30, 1995 $4,352,232 5,096 $4,151,932 $200,300
Nine Months Ended September 30, 1994
(Unaudited)
<CAPTION>
Limited Partners General
Total Units Amount Partner
<S> <C> <C> <C> <C>
BALANCE, December 31, 1993 $4,381,340 5,096 $4,228,487 $152,853
Net income 159,998 --- 137,392 22,606
Distributions to limited partners (191,100) --- (191,100) ---
BALANCE, September 30, 1994 $4,350,238 5,096 $4,174,779 $175,459
</TABLE>
[FN]
See accompanying notes to financial statements.<PAGE>
<PAGE>
<TABLE>
ASSOCIATED PLANNERS REALTY INCOME FUND
(A California Limited Partnership)
STATEMENTS OF INCOME
Three and Nine Months Ended September 30, 1995 and 1994
(Unaudited)
<CAPTION>
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
September 30, September 30, September 30, September 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
REVENUES:
Rental $103,082 $125,627 $287,043 $372,741
Interest 3,330 2,796 8,857 6,712
106,412 128,423 295,900 379,453
COSTS AND EXPENSES:
Operating 8,660 14,720 41,999 41,703
Property taxes 5,003 5,003 14,296 14,786
Property management fees 5,167 6,281 12,595 18,637
General and administrative 21,368 20,285 58,936 63,014
Unrealized (gain) loss from investment in
government securities (840) (757) (3,089) 7,915
Depreciation and amortization 24,519 24,540 73,557 73,400
63,877 70,072 198,294 219,455
NET INCOME $42,535 $58,351 $97,606 $159,998
NET INCOME PER
LIMITED PARTNERSHIP UNIT $7.08 $9.87 $15.94 $26.96
</TABLE>
[FN]
See accompanying notes to financial statements.<PAGE>
<PAGE>
<TABLE>
ASSOCIATED PLANNERS REALTY INCOME FUND
(A California Limited Partnership)
STATEMENTS OF CASH FLOWS
Nine Months Ended September 30, 1995 and 1994
(Unaudited)
<CAPTION>
Nine Months Nine Months
Ended Ended
September 30, September 30,
1995 1994
<S> <C> <C>
Cash flows from operating activities:
Net income $97,606 $159,998
Adjustment to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 73,557 73,400
Proceeds from sales (purchases) of investments
in government securities (6,192) 30,705
Unrealized (gain) loss from investment in
government securities (3,089) 7,372
Increase (decrease) from changes in:
Other assets (28,347) (13,510)
Accounts payable (1,991) (27,977)
Prepaid rent --- 26,402
Security deposits (4,408) 874
Net cash provided by operating activities 127,136 257,264
Cash flows from investing activities:
Additions to rental real estate (10,000) (31,136)
Cash (used in) provided by investing activities (10,000) (31,136)
Cash flows from financing activities:
Distributions to limited partners (126,289) (191,100)
Cash provided by (used in) financing activities (126,289) (191,100)
Net increase in cash and cash equivalents (9,153) 35,028
Cash and cash equivalents at beginning of period 85,804 40,278
Cash and cash equivalents at end of period $76,651 $75,306
</TABLE>
[FN]
See accompanying notes to financial statements.
<PAGE>
ASSOCIATED PLANNERS REALTY INCOME FUND
(A California Limited Partnership)
SUMMARY OF ACCOUNTING POLICIES
BASIS OF PRESENTATION
The accompanying balance sheet as of September 30, 1995, and the income
statements and statements of cash flow for the three and nine month periods
ended September 30, 1995, and 1994 are unaudited. In the opinion of
management these statements include all adjustments, consisting primarily of
normal recurring accruals, necessary for a fair presentation of the financial
position and results of operations for the periods presented. The results of
operations for the three and nine month periods ended September 30, 1995,
are not necessarily indicative of results to be expected for the year ended
December 31, 1995.
The financial statements do not give effect to any assets that the
partners may have outside of their interest in the partnership, nor to any
personal obligations, including income taxes, of the partners.
BUSINESS
Associated Planners Realty Income Fund ("the Partnership"), a California
limited partnership, was formed on December 23, 1986 under the Revised
Limited Partnership Act of the State of California for the purpose of
developing or acquiring, managing and operating unleveraged income
producing real estate. The Partnership met its minimum funding of $1,200,000
on February 26, 1988 and terminated its offering on September 5, 1989.
REAL ESTATE HELD FOR INVESTMENT AND DEPRECIATION
Assets are stated at cost. Depreciation is computed using the straight-
line method over an estimated useful life ranging from 31.5 to 40 years for
financial reporting and income tax reporting purposes.
ORGANIZATIONAL COSTS
Organizational costs are capitalized and amortized over the first
five years of the partnership.
LEASE COMMISSIONS
Lease commissions which are paid to real estate brokers for locating
tenants are capitalized and amortized over the life of the lease.
<PAGE>
ASSOCIATED PLANNERS REALTY INCOME FUND
(A California Limited Partnership)
SUMMARY OF ACCOUNTING POLICIES
(Continued)
RENTAL INCOME
Rental revenue is recognized on a straight-line basis to the extent
that rental income is deemed collectible.
INVESTMENT IN GOVERNMENT SECURITIES
Investment in Government Securities, which represent trading securities,
are accounted for in accordance with SFAS No. 115. The difference between
historical cost and market value are reported as unrealized gains or losses
in the statements of income.
STATEMENTS OF CASH FLOW
For purposes of the statements of cash flows, the Partnership considers
cash in the bank, and all highly-liquid investments purchased with original
maturities of three months or less , to be cash and cash equivalents.
<PAGE>
ASSOCIATED PLANNERS REALTY INCOME FUND
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
Three and Nine Months Ended September 30, 1995 and 1994 (Unaudited)
and December 31, 1994
Note 1 - Nature of Partnership Business
Associated Planners Realty Income Fund, a California limited partnership
(the "Fund"), was formed on December 23, 1986 under the Revised Limited
Partnership Act of the State of California for the purpose of acquiring,
managing, and operating income-producing real estate. Under the terms of the
partnership agreement, the General Partner (West Coast Realty Advisors, Inc.
and W. Thomas Maudlin Jr.) is entitled to cash distributions and net income
allocations varying from 1% for depreciation allocations to 15% of cash and
income after the limited partners have received cash distributions equal to
their initial cash investment plus a cumulative 8% return. The General
Partner is also entitled to cash distributions and net income allocations of
10% from ongoing partnership operations. Further, the General Partner has
received acquisition fees for locating and negotiating the purchase of rental
real estate and management fees for operating the Partnership.
Note 2 - Rental Real Estate
As of September 30, 1995 and December 31, 1994 the Fund's net real
estate investment in the Yorba Center Building and PROCARE Industrial
Building is as follows:
September 30, December 31,
1995 1994
Land $1,282,861 $1,282,861
Buildings and Improvements 3,416,327 3,406,327
4,699,188 4,689,188
Less Accumulated Depreciation 601,821 528,264
Net Real Estate Investment $4,097,367 $4,160,924
<PAGE>
ASSOCIATED PLANNERS REALTY INCOME FUND
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
Three and Nine Months Ended September 30, 1995 and 1994
(Unaudited)and December 31, 1994
(continued)
Note 3 - Related Party Transactions
(a) For Partnership management services rendered to the Partnership,
the General Partner is entitled to receive 10% of all distributions of Cash
from Operations. These amounts totaled $5,662 for the quarter ended
September 30, 1995 and $7,078 for the quarter ended September 30, 1994,
and $14,014 for the nine months ended September 30, 1995 and $21,234 for the
nine months ended September 30, 1994.
(b) For administrative services rendered to the Partnership, the
General Partner, in accordance with the partnership agreement, was reimbursed
$9,000 for the nine months ended September 30, 1995 and 1994, and $3,000 for
the three months ended September 30, 1995, and 1994.
(c) Property management fees incurred in accordance with the
Partnership Agreement to West Coast Realty Management, Inc., an affiliate of
the corporate General Partner, totaled $12,595 for the nine months September
30, 1995, $18,637 for the nine months ended September 30, 1994, $5,167 for
the three months ended September 30, 1995, and $6,281 for the three months
ended September 30, 1994.
(d) During 1990, the Partnership acquired a 90% undivided interest in
property located in San Marcos, California (Note 2). The remaining 10%
interest is owned by Associated Planners Realty Growth Fund, an affiliate.
Note 4 - Net Income and Cash Distributions Per Limited Partnership Unit
The Net Income per Limited Partnership Unit was computed in accordance
with the Partnership Agreement on the basis of the number of outstanding
limited partnership units. Cash distributions of $10.00, $8.50, $6.25, and
$12.50 per unit are reflected for the distribution dates of August 4, 1995,
May 5, 1995, February 3, 1995, February 9, 1994, May 5, 1994, and August 2,
1994 respectively. The record date in each case was March 31, 1995, June 30,
1995, September 30, 1995, December 31, 1994 & 1993 respectively.
Note 5 - Subsequent Event
The Partnership distributed $63,700 ($12.50 per unit), on November 6,
1995, to Limited Partners of record as of September 30, 1995.
<PAGE>
ASSOCIATED PLANNERS REALTY INCOME FUND
(A California Limited Partnership)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITIONAND RESULTS OF OPERATIONS
Introduction
Associated Planners Realty Income Fund (the "Partnership") was organized
in December 1986, under the California Revised Limited Partnership Act. The
Partnership began offering units for sale on October 20, 1987. As of March
31, 1990, the Partnership had raised $4,652,625 in gross capital
contributions. The Partnership netted approximately $4,173,000 after sales
commissions andsyndication costs.
The Partnership was organized for the purpose of investing in, holding,
and managing improved, leveraged income-producing property, such as
residential property, office buildings, commercial buildings, industrial
properties, and shopping centers. The Partnership intends to own and operate
such properties for investment over an anticipated holding period of
approximately five to ten years.
The Partnership's principal investment objectives are to invest in
rental real estate properties which will:
(1) Preserve and protect the Partnership's invested capital;
(2) Provide for cash distributions from operations;
(3) Provide gains through potential appreciation; and
(4) Generate Federal income tax deductions so that during the early
years of property operations, a portion of cash distributions may
be treated as a return of capital for tax purposes and, therefore,
may not represent tax able income to the limited partners.
<PAGE>
ASSOCIATED PLANNERS REALTY INCOME FUND
(A California Limited Partnership)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(Continued)
The ownership and operation of any income-producing real estate is
subject to those risks inherent in all real estate investments, including
national and local economic conditions, the supply and demand for similar
types of properties, competitive marketing conditions, zoning changes,
possible casualty losses, increases in real estate taxes, assessments, and
operating expenses, as well as others.
The Partnership is operated by West Coast Realty Advisors, Inc. ("WCRA")
(the corporate General Partner) and Mr. W. Thomas Maudlin Jr. (an individual
General Partner), collectively the "General Partner," subject to the terms of
the Amended and Restated Agreement of Limited Partnership. The Partnership
has no employees, and all administrative services are provided by
WCRA, the corporate General Partner.
Results of Operations
Operations for the quarter ended September 30, 1995 reflect an entire
period of operations for all Partnership properties. Rental income for the
three and nine months ended September 30, 1995 decreased over that for the
prior years three and nine months ended September 30, 1994 by approximately
$22,545 and $85,698 as a result of a vacancy at the San Marcos building from
January 8, 1995 to February 13, 1995. In addition, the new tenant (No Fear
Inc.) entered into a lease at a rate that was 30% less than the rate on the
lease of the prior tenant (Professional Care Products).
The statement of cash flows reflects proceeds from the sales or cash
used in purchases of government securities for 1995 and 1994. These amounts
pertain to gross sales and gross purchases of government securities and are
not being reflected as net sales or net purchases for the periods being
reported.
At September 30, 1995, the Yorba Center Shopping Center was 90% leased
to eight tenants.
The Partnership generated $171,163 in income from operations (before
depreciation expense of $73,557) for the nine months ended September 30, 1995
compared to $233,398 in income from operations (before depreciation expense
of $73,400) for the nine months ended September 30, 1994. Interest income
increased $2,145 (32%) as a result of higher interest rates and higher
investable cash balances. Operating and General and Administrative expenses
decreased $21,161 (10%) as a result of lower repairs and maintenance,
property management fees, and utilities for the nine months ended
September 30, 1995 as compared to the nine months ended September 30, 1994.
<PAGE>
ASSOCIATED PLANNERS REALTY INCOME FUND
(A California Limited Partnership)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
(Continued)
Liquidity and Capital Resources
During the nine months ended September 30, 1995, $127,136 in cash was
provided by operating activities. This resulted from a cash basis income of
$171,163 (net income with depreciation expense added back). These operating
cash flow additions were offset by a $28,347 increase in other assets (due to
prepaid leasing costs paid in connection with the new tenant, No Fear,
Inc.) a $1,991 decrease in accounts payable (attributable to a normal
decrease in trade accounts payable), a $6,192 increase in an investment in
government securities (due to re-invested interest from government securities
holdings), a $3,089 unrealized gain in government securities and $4,408
decrease in security deposits (due to a lower security deposit received from
the new tenant, No Fear Inc. compared to the previous tenant, Professional
Care Products). Cash used in investing activities totaled $10,000 in
connection with tenant improvements on the San Marcos property. Cash used in
financing activities totaled $126,289 due to the distributions to the
limited partners during the nine months ended September 30, 1995.
The Partnership's cash reserve is invested primarily in a pool of
government securities managed by an outside independent investment firm.
This reserve is intended to provide stability and safety of principal,
competitive interest rates and quick availability of funds.
With the purchase of the 90% interest in the PROCARE Industrial Building
in January 1990, the Partnership had completed its acquisition program.
<PAGE>
ASSOCIATED PLANNERS REALTY INCOME FUND
(A California Limited Partnership)
PART II
O T H E R I N F O R M A T I O N
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBIT AND REPORTS ON FORM 8-K
(a) Information required under this section has been included
in the financial statements.
(b) Reports on Form 8-K
None
<PAGE>
ASSOCIATED PLANNERS REALTY INCOME FUND
(A California Limited Partnership)
S I G N A T U R E S
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.
ASSOCIATED PLANNERS REALTY INCOME FUND
A California Limited Partnership
(Registrant)
November 14, 1995 By: WEST COAST REALTY ADVISORS, INC.
A California Corporation,
A General Partner
William T. Haas
William T. Haas
Director and Executive Vice President / Secretary
November 14, 1995
Michael G. Clark
Michael G. Clark
Vice President / Treasurer
[ARTICLE] 5
[CIK] 0000808420
[NAME] ASSOCIATED PLANNERS REALTY INCOME FUND
<TABLE>
<S> <C>
[PERIOD-TYPE] 9-MOS
[FISCAL-YEAR-END] DEC-31-1995
[PERIOD-START] JAN-01-1995
[PERIOD-END] SEP-30-1995
[CASH] 76,651
[SECURITIES] 172,553
[RECEIVABLES] 1,615
[ALLOWANCES] 0
[INVENTORY] 0
[CURRENT-ASSETS] 303,481
[PP&E] 4,699,188
[DEPRECIATION] (601,821)
[TOTAL-ASSETS] 4,400,848
[CURRENT-LIABILITIES] 46,971
[BONDS] 0
[COMMON] 0
[PREFERRED-MANDATORY] 0
[PREFERRED] 0
[OTHER-SE] 4,352,232
[TOTAL-LIABILITY-AND-EQUITY] 4,400,848
[SALES] 283,389
[TOTAL-REVENUES] 298,989
[CGS] 201,383
[TOTAL-COSTS] 201,383
[OTHER-EXPENSES] 0
[LOSS-PROVISION] 0
[INTEREST-EXPENSE] 0
[INCOME-PRETAX] 97,606
[INCOME-TAX] 0
[INCOME-CONTINUING] 0
[DISCONTINUED] 0
[EXTRAORDINARY] 0
[CHANGES] 0
[NET-INCOME] 97,606
[EPS-PRIMARY] 15.94
[EPS-DILUTED] 15.94
</TABLE>
