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 MARCH 31, 1996
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>
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 months ended March 31, 1996 and 1995, 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>
ASSOCIATED PLANNERS REALTY INCOME FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
BALANCE SHEETS
MARCH 31, 1996 (UNAUDITED) AND DECEMBER 31, 1995
<CAPTION>
MARCH 31, 1996 DECEMBER 31, 1995
<S> <C> <C>
ASSETS
RENTAL REAL ESTATE, net of
accumulated depreciation (Note 2) $4,048,292 $4,072,847
CASH AND CASH EQUIVALENTS 241,041 261,728
OTHER ASSETS 55,236 46,443
$4,344,569 $4,381,018
LIABILITY AND PARTNERS' EQUITY
ACCRUED LIABILITIES $ 5,398 $ 23,496
SECURITY DEPOSITS & PREPAID RENTS 29,717 26,290
35,115 49,786
COMMITMENTS & CONTINGENCIES
PARTNERS' EQUITY:
Limited Partner:
$1,000 stated value per unit;
authorized 12,000 units; issued - 5,096 4,272,740 4,124,520
General Partners: 36,714 206,712
TOTAL PARTNERS' EQUITY 4,309,454 4,331,232
$4,344,569 $4,381,018
</TABLE>
[FN]
See accompanying notes to financial statements.
<PAGE>
<TABLE>
ASSOCIATED PLANNERS REALTY INCOME FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENTS OF PARTNERS' EQUITY
THREE MONTHS ENDED MARCH 31, 1996
(UNAUDITED)
<CAPTION>
LIMITED PARTNERS GENERAL
TOTAL UNITS AMOUNT PARTNER
<S> <C> <C> <C> <C>
BALANCE, DECEMBER 31, 1995 $4,331,232 5,096 $4,124,520 206,712
Net income 49,000 --- 41,890 7,110
Reallocation of balances prior --- --- 170,030 (170,030)
to January 1, 1996 (Note 6)
Distributions to general partner (7,078) --- --- (7,078)
Distributions to limited partners (63,700) --- (63,700) ---
BALANCE, MARCH 31, 1995 $4,309,454 5,096 $4,272,740 $ 36,714
THREE MONTHS ENDED MARCH 31, 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 20,715 --- 16,437 4,278
Distributions to limited partners (31,850) --- (31,850) ---
BALANCE, MARCH 31, 1995 $4,369,780 5,096 $4,181,583 $188,197
</TABLE>
[FN]
See accompanying notes to financial statements.
<PAGE>
<TABLE>
ASSOCIATED PLANNERS REALTY INCOME FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENTS OF INCOME
THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(UNAUDITED)
<CAPTION>
THREE MONTHS THREE MONTHS
ENDED ENDED
MARCH 31, 1996 MARCH 31, 1995
<S> <C> <C>
REVENUES:
Rental $103,381 $71,338
Intere 2,906 2,601
106,287 73,939
COST AND EXPENSES:
Operating 15,511 10,592
Property tax 3,690 4,290
Property management fees (Note 3 (c)) 4,398 3,202
General and administrative 9,133 15,258
Unrealized(gain)loss-government securities
account --- (4,637)
Depreciation and amortization 24,555 24,519
57,287 53,224
NET INCOME $49,000 $20,715
NET INCOME
PER LIMITED PARTNERSHIP UNIT $8.22 $3.23
</TABLE>
[FN]
See accompanying notes to financial statements.
<PAGE>
<TABLE>
ASSOCIATED PLANNERS REALITY INCOME FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(UNAUDITED)
<CAPTION>
THREE MONTHS THREE MONTHS
ENDED ENDED
MARCH 31, 1996 MARCH 31, 1995
<S> <C> <C>
Cash flows from operating activities:
Net Income $49,000 $20,715
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation and amortization 24,555 24,519
Increase (decrease) from changes in:
Other assets (8,792) (41,491)
Accounts payable (18,098) 7,388
Security deposit and prepaid rents 3,426 5,445
Net cash provided by operating 50,091 16,576
activities
Cash flows from investing activities:
Additions to government securities --- (722)
investment
Additions to real estate --- (10,000)
Net unrealized (gain) loss--government
securities --- (4,637)
Net cash used by investing activities --- (15,359)
Cash flows from financing activities:
Distributions to general partners (7,078) ---
Distributions to limited partners (63,700) (31,850)
Net cash used in financing activities (70,778) (31,850)
Net (decrease) in cash and cash (20,687) (30,633)
equivalents
Cash and cash equivalents at beginning 261,728 85,804
of period
CASH AND CASH EQUIVALENTS AT END OF $241,041 $55,171
PERIOD
</TABLE>
[FN]
See accompanying notes to financial statements.
<PAGE>
ASSOCIATED PLANNERS REALTY INCOME FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
SUMMARY OF ACCOUNTING POLICIES
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. The Partnership was formed to
acquire income-producing real property throughout the United States with
emphasis on properties located in California and southwestern states. The
Partnership purchases such properties on an all cash basis and intends to own
and operate such properties for investment over an anticipated holding period of
approximately five to ten years.
BASIS OF PRESENTATION
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.
RENTAL REAL ESTATE AND ESTATE AND DEPRECIATION
Assets are stated at cost. Depreciation is computed using the straight-line
method over estimated useful lives ranging from 31.5 to 40 years for financial
reporting and income tax reporting purposes.
In the event that facts and circumstances indicate that the cost of an asset may
be impaired, an evaluation of recoverability would be performed. If an
evaluation is required, the estimated future undiscounted cash flows associated
with the asset would be compared to the carrying amount to determine if a write-
down to market vale is required.
LEASE COMMISSIONS
Lease commissions which are paid to real estate brokers for locating tenants are
capitalized and amortized over the life of the lease.
RENTAL REVENUE
Rental revenue is recognized when the amount is due and payable under the terms
of a lease agreement.
<PAGE>
ASSOCIATED PLANNERS REALTY INCOME FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
SUMMARY OF ACCOUNTING POLICIES
(CONTINUED)
INVESTMENTS
During 1994, the Partnership changed its method of accounting for Investments.
Investments 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 statement of income. The effect
of this change in accounting policy is not material to the financial statements.
STATEMENTS OF CASH FLOWS
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.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
RECLASSIFICATIONS
For comparative purposes, certain prior year amounts have been reclassified to
conform to the current year presentation.
<PAGE>
ASSOCIATED PLANNERS REALTY INCOME FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 1996 AND 1995 (UNAUDITED)
AND YEAR ENDED DECEMBER 31, 1995
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.
The Partnership began accepting subscriptions in October 1987 and closed the
offering on September 5, 1989. The Partnership began operations in March 1988.
Under the terms of the partnership agreement, the General Partners (West Coast
Realty Advisors, Inc. and W. Thomas Maudlin Jr.) are entitled to cash
distributions from 10% to 15%. The General Partners are also entitled to net
income (loss) allocations varying from 1% to 15% and 1% of depreciation and
amortization in accordance with the partnership agreement. Further, the General
Partners receive acquisition fees for locating and negotiating the purchase of
rental real estate, management fees for operating the Partnership and a
commission on the sale of the partnership properties.
NOTE 2 - RENTAL REAL ESTATE
The Partnership owns the following two rental real estate properties, one is
wholly-owned and the second, a 90% undivided interest:
Acquisition
Location (Property Name) Date Purchased Cost
Chino, California
(Yorba Center) October 25, 1988 $ 1,851,147
San Marcos, California January 9, 1990 2,806,905
The major categories of rental
real estate:
March 31, 1996 December 31, 1995
Land $1,282,861 $1,282,861
Building and Improvements 3,416,326 3,416,326
4,699,187 4,699,187
Less accumulated depreciation 650,895 626,340
Net rental real estate 4,048,292 4,072,847
<PAGE>
ASSOCIATED PLANNERS REALTY INCOME FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 1996 AND 1995 (UNAUDITED)
AND YEAR ENDED DECEMBER 31, 1995
(CONTINUED)
NOTE 2 - RENTAL REAL ESTATE (CONTINUED)
A significant portion of the Partnership's rental revenue was earned from
tenants whose individual rents represented more than 10% of total rental
revenue.
Specifically:
Two tenants accounted for 54% and 10% in 1996
Two tenants accounted for 12% and 53% in 1995
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 $7,078 for the three months ended March 31,
1996 and $3,539 for the three months ended March 31, 1995. See Note 6.
(b) For administrative services rendered to the Partnership, the General
Partner, in accordance with the partnership agreement, was reimbursed $3,000 for
the three months ended March 31, 1996 and 1995.
(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 $4,398 for the three months March 31, 1996, and $3,202
for the three months ended March 31, 1995.
(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.
<PAGE>
ASSOCIATED PLANNERS REALTY INCOME FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 1996 AND 1995 (UNAUDITED)
AND YEAR ENDED DECEMBER 31, 1995
(CONTINUED)
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 weighted average number of outstanding
Limited Partnership Units of 5,096 for 1996 and 1995.
The Limited Partner cash distributions, computed in accordance with the
Partnership Agreement, were as follows:
Record Date Outstanding Amount Total
Units Per Unit Distribution
September 30, 1995 5,096 $12.500 $63,700
June 30, 1995 5,096 10.000 50,960
March 31, 1995 5,096 8.4088 42,851
December 31, 1994 5,096 6.2500 31,850
Total $189,361
September 30, 1994 5,096 $6.2500 $31,850
June 30, 1994 5,096 12.500 63,700
March 30, 1994 5,096 12.500 63,700
December 31, 1993 5,096 12.500 63,700
Total $ 222,950
Distributions were paid in the fiscal quarter following the record date.
<PAGE>
ASSOCIATED PLANNERS REALTY INCOME FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 1996 AND 1995 (UNAUDITED)
AND YEAR ENDED DECEMBER 31, 1995
(CONTINUED)
NOTE 5 - NEW ACCOUNTING PRONOUNCEMENTS
Statement of Financial Accounting Standards No. 121. "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed of"
(SFAS No. 121) issued by the Financial Accounting Standards Board (FASB) is
effective for financial statements for fiscal years beginning after December 15,
1995. The new standard establishes new guidelines regarding when impairment
losses on long-lived assets, which include plant and equipment, and certain
identifiable intangible assets, should be recognized and how impairment losses
should be measured. This adoption had no effect on the statement of income for
the quarter ended March 31, 1996 as there were no impairment amounts recorded
during the period.
NOTE 6 - REALLOCATION OF PARTNER BALANCES
Per the provisions of Section 11.1 (V)(ii) of the Partnership Agreement, the
General Partner determined that action was necessary to "cure the ambiguities"
caused by the Agreement itself. The ambiguity involved the treatment of the
partnership management fee, being paid to the General Partner, as an expense of
the Partnership, when in fact, it was recently determined, that these fees
should have been treated as a general partner withdrawl of capital. In order to
properly reflect this inception to date correction, a transfer of $170,030 was
made from the General Partner's capital account to the Limited Partners capital
account during the quarter ended March 31, 1996.
NOTE 7 - SUBSEQUENT EVENTS
The Partnership distributed $66,248 ($13.00 per unit) on May 6, 1996 to Limited
Partners as of March 31, 1996.
<PAGE>
ASSOCIATED PLANNERS REALTY INCOME FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
INTRODUCTION
The Partnership began offering for sale limited partnership units on October
1987. On February 26, 1988, the Partnership reached its minimum offer level of
$1,200,000. The Partnership sold units throughout the remainder of the year,
and had raised $3,891,000 in gross proceeds or $3,483,788 net of syndication
costs and sales commissions as of December 31, 1988. During 1989, the
Partnership continued to raise funds through the sale of Units and had raised
$5,106,000 in gross proceeds or $4,594,101 net of syndication costs and sales
commissions as of September 5, 1989, the day the Partnership terminated its
offering of limited partnership units.
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 taxable 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.
LIQUIDITY AND CAPITAL RESOURCES
On February 6, 1996, the Partnership made distributions to the limited partners
totaling $63,700, ($12.50 per unit), of which approximately $14,700 constituted
a return of capital to the unit holders of record at December 31, 1995.
Distributions are determined by management based on cash flow and the liquidity
position of the Partnership and anticipated occupancy of the properties. It is
the intention of management to make quarterly distributions of cash, subject to
maintenance of reasonable reserves.
Management uses cash as its primary measure of a partnership's liquidity. The
amount of cash that represents adequate liquidity for a real estate limited
partnership depends on several factors. Among them are:
1. Relative risk of the partnership;
2. Condition of the partnership's properties;
3. Stage in the partnership's life cycle (e.g., money-raising,
acquisition, operating or disposition phase); and
4. Distribution to 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
LIQUIDITY AND CAPITAL RESOURCES (CONTINUED)
The Partnership has adequate liquidity based upon the above four points. The
first point refers to the approximately 1% property reserve requirement of
capital funds raised that the Partnership currently has; this relatively low
reserve level is appropriate since all Partnership properties are acquired
without the use of debt financing. This is a minimum guideline that is
disclosed in the Partenrship's prospectus; the Partnership had more than enough
funds to meet this requirement as of March 31, 1996. Related to the property
reserve requirement is the second point - the condition of the Partnership's
properties. Since the properties are in good condition, no unusual maintenance
and repair expenditures are anticipated. The third point is relevant to the
Partnership because after the January 1990 purchase of the San Marcos property,
the Partnership had completed its acquisition phase, and entered the operating
phase. The fourth point relates to partner distributions. The Partnership makes
distributions from operations quarterly. Such distributions are subject to
payment of Partnership expenses and reasonable reserves for expenses,
maintenance, and replacements.
During the quarter ended March 31, 1996 the Partnership paid the General Partner
a partnership management fee of $7,078 and distributed $63,700 to the limited
partners of which $14,700 constituted a return of capital. Partnership
management fees were calculated and paid in accordance with the Partnership
Agreement.
The Tax Reform Acts of 1986 and 1987 and the Revenue Reconciliation Acts of 1990
and 1993 did not have a material impact on the Partnership's operations.
The effects of the slowdown in the economy, inflation and changing prices have
not had a material impact on the Partnership's revenues and income from
operations.. During the years of the Partnership's existence, inflationary
pressures in the U.S. economy have been minimal, and this has been consistent
with the experience of the Partnership in operating rental real estate in
California. The Partnership has several clauses in the leases with its
properties' tenants that would help alleviate much of the negative impact of
inflation.
<PAGE>
ASSOCIATED PLANNERS REALTY INCOME FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
NEW ACCOUNTING PRONOUNCEMENTS
Statements of Financial Accounting Standards No.121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed of"
(SFAS No. 121) issued by the Financial Accounting Standards Board (FASB) is
effective for financial statements for fiscal years beginning after December 15,
1995. The new standard establishes new guidelines regarding when impairment
losses on long-lived assets, which include plant and equipment, and certain
identifiable intangible assets, should be recognized and how impairment losses
should be measured. This adoption had no effect on the statement of income for
the quarter ended March 31, 1996 as there were no impairment amounts recorded
during the period.
<PAGE>
ASSOCIATED PLANNERS REALTY INCOME FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONT.)
RESULTS OF OPERATIONS
Operations for the quarter ended March 31, 1996 and 1995 reflect full quarters
of rental activities for the Partnership's properties. However, the San Marcos
property was not leased from January 8 to February 12, 1995. This was due to
vacancy at the property between the time that the Professional Care Products
(previous tenant) lease terminated and the No Fear (current tenant) lease began.
In addition to the vacancy at the property, the lease rate that No Fear entered
into was approximately 30% less than the rate that Professional Care Products
was paying during its tenancy. The occupancy rate at the Yorba Center Shopping
Center was at 100% as of March 31, 1996 (as compared to 90% at March 31, 1995),
the drop in rental rates at the San Marcos property (discussed above), offset by
increased occupancy was responsible for a 45% ($32,043) increase in rental
revenue for the quarter ended March 31, 1996 as compared to the quarter ended
March 31, 1995.
Primarily due to the partial vacancy at the San Marcos property, operating
expenses increased 46% ($4,919) as the result of less costs that the
Partnership was able to pass on to tenants. However, the Partnership also
experienced a 40.1% decrease in general and administrative costs ($6,125) due to
lower insurance costs and lower legal & accounting expenses. The Partnership
also experienced a 11.7% ($305) increase in the interest income due to larger
cash reserve balances maintained during 1996 as compared to 1995.
Overall, the Partnership generated $73,555 in income from operations before
depreciation expense of $24,555 for the quarter ended March 31, 1996. This
compares favorably to 1995 when income from operations totaled $45,234 before
depreciation of $24,519 and gain on government securities of $4,637. Net income
per limited partnership unit rose from $3.23 in 1995 to $8.22 in 1996. The
number of limited partnership units outstanding in each quarter was 5,096.
<PAGE>
ASSOCIATED PLANNERS REALTY INCOME FUND
(A CALIFORNIA LIMITED PARTNERSHIP)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONT.)
RESULTS OF OPERATIONS (CONT.)
In 1994, the Partnership purposely started reducing the amount of distributions
to investors in anticipation of lower rental revenues from the San Marcos
property. Up until January 1995, it was not clear to the General Partner as to
what rent, if any, could be realized on an ongoing basis from the San Marcos
Property. Distributions to limited partners fell from a high of $47.50 per unit
in 1993, to $43.75 in 1994, to $37.16 in 1995. With the placement of a tenant
in the San Marcos Building (No Fear, Inc.) and the build-up of a track record of
rent collections from the tenant, the general partner now feels it would be
prudent to make cash distributions to limited partners so that a large portion
of the large cash balance is gradually paid out (contingent upon maintenance of
reasonable reserve levels). Therefore, distributions are expected to total
between $40.00 and $45.00 per unit for 1996.
During the quarter ended March 31, 1996, $50,091 in cash was provided by
operating activities. This resulted from a net cash basis income of $73,555
from operations (net income plus depreciation expense) plus a $3,426 increase in
security deposits and prepaid rents (primarily due to a new tenant security
deposit receivable plus prepaid April 1996 rent received in March 1996). These
amounts were offset by a $8,792 increase in other assets (primarily due to a
increase in deferred rent receivable due to free tenant rent for January 1996),
and a $18,098 decrease in accounts payable (primarily due to a decrease in the
amount of trade payables). There were no investing activities for the quarter
ended March 31, 1996. Cash used in financing activities totaled $70,778 due to
$63,700 distributed to the limited partners during the quarter and $7,078
distributed to the general partner for partnership management fees.
The area in which Yorba Center operates continues to experience a relatively
high level of economic vitality, and the General Partner does not foresee
significant challenges in keeping the center occupied by various small retailers
and service businesses.
The Partnership anticipates continuing to operate properties during 1996 for the
purpose of generating the maximum amount of cash available for distribution to
the limited partners, while maintaining a reasonable level of cash reserves.
There are currently no plans to dispose of either of the two properties.
<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)
May 14, 1996 By: WEST COAST REALTY ADVISORS, INC.
A California Corporation,
A General Partner
William T. Haas
Director and Executive Vice President/Secretary
May 14, 1996
Michael G. Clark
Vice President/Treasurer
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000808420
<NAME> ASSOCIATED PLANNERS REALTY INCOME FUND
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 241,041
<SECURITIES> 0
<RECEIVABLES> 13,138
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 296,277
<PP&E> 4,699,188
<DEPRECIATION> (650,895)
<TOTAL-ASSETS> 4,344,570
<CURRENT-LIABILITIES> 35,115
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 4,309,454
<TOTAL-LIABILITY-AND-EQUITY> 4,344,570
<SALES> 103,378
<TOTAL-REVENUES> 106,287
<CGS> 57,287
<TOTAL-COSTS> 57,287
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 49,000
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 49,000
<EPS-PRIMARY> 8.22
<EPS-DILUTED> 8.22
</TABLE>
