UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[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 0-17557
Brauvin High Yield Fund L.P.
(Exact name of registrant as specified in its charter)
Delaware 36-3569428
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
150 South Wacker Drive, Chicago, Illinois 60606
(Address of principal executive offices) (Zip Code)
(312) 443-0922
(Registrant's telephone number, including area code)
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>
BRAUVIN HIGH YIELD FUND L.P.
(a Delaware limited partnership)
INDEX
Page
PART I Financial Information
Item 1. Financial Statements . . . . . . . . . . . . . . . . . 3
Balance Sheets at September 30, 1995 and
December 31, 1994. . . . . . . . . . . . . . . . . . . 4
Statements of Operations for the nine months ended
September 30, 1995 and September 30, 1994. . . . . . . 5
Statements of Operations for the three months ended
September 30, 1995 and September 30, 1994. . . . . . . 6
Statements of Partners' Capital for the period
January 1, 1992 to September 30, 1995. . . . . . . . . 7
Statements of Cash Flows for the nine months ended
September 30, 1995 and September 30, 1994. . . . . . . 8
Notes to Financial Statements. . . . . . . . . . . . . 9
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations. . . . . . . . . . 17
PART II Other Information
Item 1. Legal Proceedings. . . . . . . . . . . . . . . . . . . 20
Item 2. Changes in Securities. . . . . . . . . . . . . . . . . 20
Item 3. Defaults Upon Senior Securities. . . . . . . . . . . . 20
Item 4. Submissions of Matters to a Vote of Security Holders . 20
Item 5. Other Information. . . . . . . . . . . . . . . . . . . 20
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . 20
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. Financial Statements
Except for the December 31, 1994 Balance Sheet, the following Balance
Sheet as of September 30, 1995, Statements of Operations for the nine
months ended September 30, 1995 and 1994, Statements of Operations for the
three months ended September 30, 1995 and 1994, Statements of Partners'
Capital for the period January 1, 1992 to September 30, 1995 and Statements
of Cash Flows for the nine months ended September 30, 1995 and September
30, 1994 for Brauvin High Yield Fund L.P. (the "Partnership") are unaudited
and have not been examined by independent public accountants but reflect,
in the opinion of the management, all adjustments necessary to present
fairly the information required. All such adjustments are of a normal
recurring nature.
These financial statements should be read in conjunction with the
financial statements and notes thereto included in the Partnership's 1994
Annual Report on Form 10-K.
<PAGE>
BRAUVIN HIGH YIELD FUND L.P.
(a Delaware limited partnership)
BALANCE SHEETS
September 30, December 31,
1995 1994
ASSETS
Investment in real estate, at cost:
Land $ 5,768,768 $ 5,768,768
Buildings 13,554,207 13,554,207
19,322,975 19,322,975
Less: accumulated depreciation (2,755,463) (2,465,487)
Net investment in real estate 16,567,512 16,857,488
Investment in Joint Ventures (Note 5):
Brauvin High Yield Venture 33,826 34,179
Brauvin Funds Joint Venture 2,505,759 2,494,341
Brauvin Gwinnett County Venture 558,840 569,626
Cash and cash equivalents 1,173,374 1,016,066
Due from affiliates 44 12,151
Prepaid offering costs 17,821 20,873
Other assets -- 6,039
Total Assets $20,857,176 $21,010,763
LIABILITIES AND PARTNERS' CAPITAL
LIABILITIES:
Accounts payable and accrued expenses $ 21,911 $ 14,652
Due to affiliates 3,179 2,859
Rent received in advance 48,494 232,379
Total Liabilities 73,584 249,890
PARTNERS' CAPITAL:
General Partners 125,169 129,815
Interest Holders 20,658,423 20,631,058
Total Partners' Capital 20,783,592 20,760,873
Total Liabilities and Partners' Capital $20,857,176 $21,010,763
See accompanying notes to financial statements.
<PAGE>
BRAUVIN HIGH YIELD FUND L.P.
(a Delaware limited partnership)
STATEMENTS OF OPERATIONS
For the Nine Months Ended September 30,
1995 1994
INCOME:
Rental $1,868,945 $1,877,745
Interest 39,598 15,767
Other 256 902
Total income 1,908,799 1,894,414
EXPENSES:
General and administrative 117,936 122,016
Management fees 18,643 19,055
Depreciation 289,976 289,977
Total expenses 426,555 431,048
Income before equity interest in
joint ventures 1,482,244 1,463,366
Equity Interest in Joint Venture's Net Income:
Brauvin High Yield Venture 4,296 4,217
Brauvin Funds Joint Venture 219,668 217,435
Brauvin Gwinnett County Venture 34,844 34,393
Net income $1,741,052 $1,719,411
Net income allocated to the General Partners $ 34,821 $ 34,388
Net income allocated to the Interest Holders $1,706,231 $1,685,023
Net income per Unit outstanding (a) $ 0.66 $ 0.65
(a) Net income per Unit was based on the average Units outstanding during
the period since they were of varying dollar amounts and percentages
based upon the dates Interest Holders were admitted to the Partnership
and additional Units were purchased through the Plan.
See accompanying notes to financial statements.
<PAGE>
BRAUVIN HIGH YIELD FUND L.P.
(a Delaware limited partnership)
STATEMENTS OF OPERATIONS
For the Three Months Ended September 30,
1995 1994
INCOME:
Rental $ 653,206 $639,324
Interest 15,812 8,434
Other 118 (619)
Total income 669,136 647,139
EXPENSES:
General and administrative 47,400 36,693
Management fees 6,375 6,069
Depreciation 96,658 96,659
Total expenses 150,433 139,421
Income before equity interest in
joint ventures 518,703 507,718
Equity Interest in Joint Venture's Net Income:
Brauvin High Yield Venture 1,438 1,411
Brauvin Funds Joint Venture 73,727 73,556
Brauvin Gwinnett County Venture 11,239 10,632
Net income $ 605,107 $593,317
Net income allocated to the General Partners $ 12,102 $ 11,866
Net income allocated to the Interest Holders $ 593,005 $581,451
Net income per Unit outstanding (a) $ 0.23 $ 0.23
(a) Net income per Unit was based on the average Units outstanding during
the period since they were of varying dollar amounts and percentages
based upon the dates Interest Holders were admitted to the Partnership
and additional Units were purchased through the Plan.
See accompanying notes to financial statements.
<PAGE>
BRAUVIN HIGH YIELD FUND L.P.
(a Delaware limited partnership)
STATEMENTS OF PARTNERS' CAPITAL
For the Period January 1, 1992 to September 30, 1995
General Interest
Partners Holders* Total
Balance, January 1, 1992 $143,107 $21,499,300 $21,642,407
Contributions, net -- 193,848 193,848
Selling commissions and
other offering costs (Note 1) -- (35,891) (35,891)
Net income 42,348 2,075,069 2,117,417
Cash distributions (39,264) (2,560,503) (2,599,767)
Balance, December 31, 1992 146,191 21,171,823 21,318,014
Contributions, net -- 281,434 281,434
Selling commissions and
other offering costs (Note 1) -- (36,324) (36,324)
Net income 43,788 2,145,606 2,189,394
Cash distributions (52,853) (2,590,902) (2,643,755)
Balance, December 31, 1993 137,126 20,971,637 21,108,763
Contributions, net -- 63,295 63,295
Selling commissions and
other offering costs (Note 1) -- (37,316) (37,316)
Net income 45,922 2,250,200 2,296,122
Cash distributions (53,233) (2,616,758) (2,669,991)
Balance, December 31, 1994 129,815 20,631,058 20,760,873
Contributions, net -- 293,232 293,232
Selling commissions and
other offering costs (Note 1) -- (28,997) (28,997)
Net income 34,821 1,706,231 1,741,052
Cash distributions (39,467) (1,943,101) (1,982,568)
Balance, September 30, 1995 $125,169 $20,658,423 $20,783,592
*Total Units sold at September 30, 1995, December 31, 1994, 1993 and 1992 were
2,610,327, 2,581,003, 2,574,675 and 2,546,530 respectively. Cash distributions
to Interest Holders per Unit were $0.74, $1.01, $1.01 and $1.01 for the nine
months ended September 30, 1995 and the years ended December 31, 1994, 1993
and 1992, respectively. Cash distributions to Interest Holders per Unit are
based on the average Units outstanding during the period since they were of
varying dollar amounts and percentages based upon the dates Interest Holders
were admitted to the Partnership and additional Units were purchased through
the distribution reinvestment plan.
See accompanying notes to financial statements.
<PAGE>
BRAUVIN HIGH YIELD FUND L.P.
(a Delaware limited partnership)
STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30,
1995 1994
Cash flows from operating activities:
Net income $1,741,052 $1,719,411
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 289,976 289,977
Equity interest in Brauvin High Yield
Venture's net income (4,296) (4,217)
Equity interest in Brauvin Funds Joint
Venture's net income (219,668) (217,435)
Equity interest in Brauvin Gwinnett County
Venture's net income (34,844) (34,393)
Decrease in other assets 6,039 18,518
Decrease (increase) in due from affiliates 12,107 (7,928)
Increase (decrease) in accounts payable
and accrued expenses 7,259 (44,638)
Decrease in rent received in advance (183,885) (21,053)
Increase in due to affiliates 320 --
Total adjustments (126,992) (21,169)
Net cash provided by operating activities 1,614,060 1,698,242
Cash flows from investing activities:
Distributions from Brauvin High Yield Venture 4,649 5,750
Distributions from Brauvin Funds Joint Venture 208,250 203,350
Distributions from Brauvin Gwinnett
County Venture 45,630 42,120
Net cash provided by investing activities 258,529 251,220
Cash flows from financing activities:
Sale of Units, net of liquidations, selling
commissions and other offering costs 267,287 124,813
Cash distributions to General Partners (39,467) (39,272)
Cash distributions to Interest Holders (1,943,101) (1,932,662)
Net cash used in financing activities (1,715,281) (1,847,121)
Net increase in cash and cash
equivalents 157,308 102,341
Cash and cash equivalents at beginning
of period 1,016,066 857,383
Cash and cash equivalents at end of period $1,173,374 $ 959,724
See accompanying notes to financial statements.
<PAGE>
BRAUVIN HIGH YIELD FUND L.P.
(a Delaware limited partnership)
NOTES TO FINANCIAL STATEMENTS
(1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION
BRAUVIN HIGH YIELD FUND L.P. (the "Partnership") is a Delaware limited
partnership organized for the purpose of acquiring debt-free ownership of
existing, free-standing, income-producing retail, office and industrial real
estate properties predominantly subject to "triple-net" leases. The General
Partners of the Partnership are Brauvin Realty Advisors, Inc., Jerome J.
Brault, Cezar M. Froelich and David M. Strosberg. Brauvin Realty Advisors,
Inc. is owned primarily by Messrs. Brault (44%) and Froelich (44%). Brauvin
Securities, Inc., an affiliate of the General Partners, was the selling agent
of the Partnership. The Partnership is managed by an affiliate of the
General Partners.
The Partnership was formed on January 6, 1987 and filed a Registration
Statement on Form S-11 with the Securities and Exchange Commission which
became effective on September 4, 1987. The sale of the minimum of $1,200,000
of depositary units representing beneficial assignments of limited
partnership interests of the Partnership (the "Units") necessary for the
Partnership to commence operations was achieved on November 18, 1987. The
Partnership's offering closed on May 19, 1988. Through September 30, 1995
and December 31, 1994, the Partnership had sold $26,103,265 and $25,810,033,
of Units, respectively. The September 30, 1995 total includes $2,600,835 of
Units purchased by Interest Holders who utilized their distributions of
Operating Cash Flow to purchase additional Units through the distribution
reinvestment plan (the "Plan") and is net of Units purchased by the
Partnership from Interest Holders liquidating their investments in the
Partnership, which Units were retired. As of September 30, 1995, the
Participants have acquired Units under the Plan which approximate 10% of
total Units outstanding.
The Partnership has acquired the land and buildings underlying 20 Taco
Bell restaurants, 11 Ponderosa restaurants and two Children's World Learning
Centers. The Partnership also acquired 1%, 49% and 23.4% equity interests
in three joint ventures with three entities affiliated with the Partnership.
These ventures own the land and buildings underlying nine Ponderosa
restaurants, a Scandinavian Health Spa and a CompUSA store, respectively.
<PAGE>
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Method
The accompanying financial statements have been prepared using the
accrual method of accounting.
Federal Income Taxes
Under the provisions of the Internal Revenue Code, the Partnership's
income and losses are reportable by the partners on their respective income
tax returns. Accordingly, no provision is made for Federal income taxes in
the Financial Statements. However, in certain instances, the Partnership has
been required under applicable state law to remit directly to the tax
authorities amounts representing withholding from distributions paid to
partners.
Investment in Real Estate
The operating properties acquired by the Partnership are stated at cost
including acquisition costs, net of accumulated depreciation. Depreciation
expense is computed on a straight-line basis over approximately 35 years.
Investment in Joint Ventures
The Partnership owns a 1% equity interest in Brauvin High Yield Venture,
which owns the land and building underlying nine Ponderosa restaurants; a 49%
equity interest in Brauvin Funds Joint Venture, which owns the land and
building underlying a Scandinavian Health Spa; and a 23.4% equity interest in
Brauvin Gwinnett County Venture, which owns the land and building underlying
a CompUSA store. The accompanying financial statements include the
investments in Brauvin High Yield Venture, Brauvin Funds Joint Venture and
Brauvin Gwinnett County Venture using the equity method of accounting.
Organization Costs and Prepaid Offering Costs
Organization costs represent costs incurred in connection with the
organization and formation of the Partnership. Organization costs were
amortized over a period of five years using the straight-line method.
The General Partners have guaranteed payment of any organization and
offering costs that exceed defined percentages of the gross proceeds of the
offering. Prepaid offering costs represent amounts in excess of the defined
percentages of the gross proceeds. Subsequently, gross proceeds of the
offering are expected to increase due to the purchase of additional Units
through the distribution reinvestment plan (the "Plan") and the prepaid
offering costs will be transferred to offering costs and treated as a
reduction in Partners' Capital.
Cash and Cash Equivalents
Cash and cash equivalents include all highly liquid debt instruments
with an original maturity within three months of purchase.
(2) PARTNERSHIP AGREEMENT
Distributions
All Operating Cash Flow, as defined in the Partnership Agreement (the
"Agreement"), shall be distributed: (a) first, to the Interest Holders until
the Interest Holders receive an amount equal to their 10% Current Preferred
Return, as such term is defined in the Agreement; and (b) thereafter, any
remaining amounts will be distributed 98% to the Interest Holders and 2% to
the General Partners.
The net proceeds of a sale or refinancing of a Partnership property
shall be distributed as follows:
first, to the Interest Holders until each Interest Holder has been
paid an amount equal to the 10% Cumulative Preferred Return, as
defined in the Agreement;
second, to the Interest Holders until each Interest Holder has been
paid an amount equal to his Adjusted Investment, as defined in the
Agreement;
third, to the General Partners until they have been paid an amount
equal to a 2% preferred return;
fourth, 95% of any remaining Net Sale or Refinancing Proceeds, as
such term is defined in the Agreement, to the Interest Holders and
the remaining 5% to the General Partners.
Distributions to Interest Holders and the General Partners for the third
quarter of 1995 will be made on November 15, 1995 in the amounts of $656,669
and $13,401, respectively.
Profits and Losses
Net profits and losses from operations of the Partnership [computed
without regard to any allowance for depreciation or cost recovery deductions
under the Internal Revenue Code of 1986, as amended (the "Code")] for each
taxable year of the Partnership shall be allocated 98% to the Interest
Holders and 2% to the General Partners. Notwithstanding the foregoing, all
depreciation and cost recovery deductions allowed under the Code shall be
allocated 2% to the General Partners and 98% to the Taxable Interest Holders,
as defined in the Agreement.
The net profit of the Partnership from any sale or other disposition of
a Partnership property shall be allocated (with ordinary income being
allocated first) as follows: (a) first, an amount equal to the aggregate
deficit balances of the Partners' Capital Accounts, as such term is defined
in the Agreement, shall be allocated to each Partner who or which has a
deficit Capital Account balance in the same ratio as the deficit balance of
such Partner's Capital Account bears to the aggregate of the deficit balances
of all Partners' Capital Accounts; (b) second, to the Interest Holders until
the Interest Holders have been allocated profits equal to their 10%
Cumulative Preferred Return; (c) third, to the Interest Holders until the
Interest Holders have been allocated an amount of profit equal to the amount
of their Adjusted Investment; (d) fourth, to the General Partners until such
time as they have been allocated profits equal to a 2% preferred return; and
(e) thereafter, 95% to the Interest Holders and 5% to the General Partners.
The net loss of the Partnership from any sale or other disposition of a
Partnership property shall be allocated as follows: (a) first, an amount
equal to the aggregate positive balances in the Partners' Capital Accounts,
to each Partner in the same ratio as the positive balance in such Partner's
Capital Account bears to the aggregate of all Partners' positive Capital
Accounts balances; and (b) thereafter, 98% to the Interest Holders and 2% to
the General Partners.
(3) TRANSACTIONS WITH RELATED PARTIES
An affiliate of the General Partners manages the Partnership's real
estate properties for an annual management fee equal to up to 1% of gross
revenues derived from the properties. The property management fee is
subordinated, annually, to receipt by the Interest Holders of an annual 10%
non-cumulative, non-compounded return on Adjusted Investment (as defined).
The Partnership pays affiliates of the General Partners selling
commissions of 8-1/2% of the capital contributions received for Units sold by
the affiliates.
An affiliate of one of the General Partners provides securities and real
estate counsel to the Partnership.
Fees, commissions and other expenses paid or payable to the General
Partners or its affiliates for the nine months ended September 30, 1995 and
1994 were as follows:
1995 1994
Selling commissions $29,029 $27,472
Management fees 18,643 19,055
Reimbursable operating
expenses 54,000 56,274
Legal fees 334 2,700
(4) WORKING CAPITAL RESERVES
The Partnership set aside 1% of the gross proceeds of its Offering as a
working capital reserve. At any time two years subsequent to the termination
of the Partnership's offering (May 19, 1990), it became permissible to reduce
the working capital reserve to an amount equal to not less than 1/2% of the
proceeds of the Offering ($125,000) if the General Partners believed such
reduction to be in the best interests of the Partnership and the Interest
Holders. As a result thereof, $125,000 was paid to an affiliate of the
General Partners in the fourth quarter of 1990 as an additional Acquisition
Fee and $125,000 remains in reserve.
<PAGE>
(5) EQUITY INVESTMENT
The Partnership owns equity interests in the Brauvin High Yield Venture,
Brauvin Funds Joint Venture and Brauvin Gwinnett County Venture and reports
its investments on the equity method. The following are condensed financial
statements for the Brauvin High Yield Venture, Brauvin Funds Joint Venture
and Brauvin Gwinnett County Venture:
BRAUVIN HIGH YIELD VENTURE
September 30, December 31,
1995 1994
Land and buildings, net $5,193,147 $5,283,334
Other assets 5,810 9,086
Total Assets $5,198,957 $5,292,430
Liabilities $ 11,250 $ 69,363
Partners' capital 5,187,707 5,223,067
Total Liabilities
and Partners Capital $5,198,957 $5,292,430
For the Nine Months Ended September 30,
1995 1994
Rental income $528,762 $521,910
Expenses:
Depreciation 90,187 90,188
Management fees 5,319 5,426
Operating and
administrative 3,615 4,563
Net income $429,641 $421,733
<PAGE>
BRAUVIN FUNDS JOINT VENTURE
September 30, December 31,
1995 1994
Land and buildings, net $4,844,023 $4,926,596
Other assets 324,300 217,144
Total Assets $5,168,323 $5,143,740
Liabilities $ 1,281 $ --
Partners' Capital 5,167,042 5,143,740
Total Liabilities and
Partners' Capital $5,168,323 $5,143,740
For the Nine Months Ended September 30,
1995 1994
Rental income $ 541,403 $534,549
Expenses:
Depreciation 82,572 82,572
Management fees 5,110 5,056
Operating and
administrative 5,419 3,177
Net income $448,302 $443,744
<PAGE>
BRAUVIN GWINNETT COUNTY VENTURE
September 30, December 31,
1995 1994
Land and buildings, net $2,387,949 $2,422,262
Other assets 13,625 45,198
Total Assets $2,401,574 $2,467,460
Liabilities $ -- $ 19,792
Partners' Capital 2,401,574 2,447,668
Total Liabilities and
Partners' Capital $2,401,574 $2,467,460
For the Nine Months Ended September 30,
1995 1994
Rental income $190,751 $191,729
Expenses:
Depreciation 34,314 34,314
Management fees 1,870 1,926
Operating and
administrative 5,663 8,510
Net income $148,904 $146,979
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
Liquidity and Capital Resources
The Partnership commenced an offering to the public on September 4, 1987
of 1,500,000 Units which was subsequently increased to 2,500,000 Units. The
offering closed on May 19, 1988 after 2,500,000 Units were sold. The
Partnership purchased the land and buildings underlying seven Taco Bell
restaurants in 1987. In 1988, the Partnership purchased 13 Taco Bell
restaurants, nine Ponderosa restaurants and an interest in a joint venture
which purchased nine Ponderosa restaurants. In 1989, the Partnership
purchased the land and building underlying a Ponderosa restaurant, an
interest in a joint venture which purchased a Scandinavian Health Spa, the
land and buildings underlying two Children's World Learning Centers and the
land and building underlying an additional Ponderosa restaurant. In 1993,
the Partnership purchased a 23.4% interest in a joint venture which purchased
a CompUSA store.
The Partnership raised $25,000,000 through its initial offering and an
additional $2,600,835 as of September 30, 1995, through Units purchased by
certain Interest Holders investing their distributions of Operating Cash Flow
in additional Units through the distribution reinvestment plan (the "Plan").
As of September 30, 1995, Units valued at $1,497,570 have been purchased by
the Partnership from Interest Holders liquidating their original investment
and retired. The Partnership has no funds available to purchase additional
property, excluding those raised through the Plan.
The General Partners have adopted an enhancement to the Partnership's
Distribution Reinvestment Plan effective August, 1995. This enhancement will
permit unit holders to reinvest at a unit price that will be adjusted to
reflect any return of investor capital generated through property sales. In
addition, any unit liquidations will also occur at the adjusted unit price.
Below is a table summarizing the historical data for distribution rates
per annum:
Distribution
Date 1995 1994 1993 1992 1991 1990 1989
February 15 10.00% 10.00% 10.00% 10.00% 9.50% 9.25% 9.00%
May 15 10.00 10.00 10.00 10.00 9.625 9.50 9.25
August 15 10.00 10.00 10.00 10.25 9.75 9.50 9.25
November 15(a)10.00 10.50 10.50 10.25 9.75 9.50 9.25
(a) The November 15, 1992, 1993 and 1994 quarterly distributions were made
at a rate of 10% per annum and a second bonus distribution was made at
a rate of 0.25%, 0.50% and 0.50%, respectively, per annum.
Future increases in the Partnership's distributions will largely depend
on increased sales at the Partnership's properties resulting in additional
percentage rent and, to a lesser extent on rental increases, which will occur
due to increases in receipts from certain leases based upon increases in the
Consumer Price Index or scheduled increases of base rent.
The Taco Bell located in Dunedin, Florida which had been closed by the
operator has been subleased to a new operator and has reopened. This
restaurant is leased to the parent company, Taco Bell Corporation, who
remains the primary lessee through the full lease term. We do not anticipate
any interruption in lease payments.
Since the distribution to Limited Partners had been at least 10% per
annum during the nine months ended September 30, 1995 and the years ended
December 31, 1994 and 1993, the General Partners and its affiliates collected
a management fee of $18,643, $25,596 and $24,969, respectively and received
$39,467, $53,233 and $52,853, in Operating Cash Flow distributions for the
nine months ended September 30, 1995 and the years ended December 31, 1994
and 1993, respectively. This is anticipated to continue throughout 1995.
Results of Operations - Nine months ended September 30, 1995 and 1994.
Results of operations for the Partnership for the nine months ended
September 30, 1995 reflected net income of $1,741,052 as compared to
$1,719,411 for the nine months ended September 30, 1994 an increase of
approximately $22,000. The increase in net income is a result of a decrease
in expenses and an increase in the Joint Venture's net income. Total income
for the nine months ended September 30, 1995 was $1,908,799 as compared to
$1,894,414 for the nine months ended September 30, 1994, an increase of
approximately $14,000. The increase in total income was due to an increase
in interest income which was a result of higher interest rates on funds
invested. The increase in interest income was partially offset by a decrease
in rental income caused by a decline in percentage rent. Total expenses for
the nine months ended September 30, 1995 were $426,555 as compared to
$431,048 for the nine months ended September 30, 1995, a decrease of
approximately $4,000. The decrease in total expenses is primarily due to a
decrease in insurance expense as a result of the full amortization of a lease
insurance policy on the Taco Bell rents.
Results of Operations - Three months ended September 30, 1995 and 1994
Results of operations for the Partnership for the three months ended
September 30, 1995 reflected net income of $605,107 as compared to $593,317
for the three months ended September 30, 1994, an increase of approximately
$12,000. Total income for the three months ended September 30, 1995 was
$669,136 as compared to $647,139 for the three months ended September 30,
1995, an increase of approximately $22,000. Total expenses for the three
months ended September 30, 1995 were $150,433 as compared to $139,421 for the
three months ended September 30, 1994, an increase of approximately $11,000.
The increase in net income is a result of an increase in rental income due to
an increase in percentage rent during the third quarter and an increase in
interest income. The increase in revenue was partially offset by the
increase in general and administrative expenses.
<PAGE>
PART II - OTHER INFORMATION
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. Exhibits and Reports On Form 8-K.
Exhibit 27. Financial Data Schedule
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of l934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
BY: Brauvin Realty Advisors, Inc.
Corporate General Partner of
Brauvin High Yield Fund L.P.
BY: /S/ Jerome J. Brault
Jerome J. Brault
Chairman of the Board of Directors,
President and Chief Executive Officer
DATE: November 14, 1995
BY: /s/ Thomas J. Coorsh
Thomas J. Coorsh
Chief Financial Officer and Treasurer
DATE: November 14, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 1,173,374
<SECURITIES> 3,098,425 <F1>
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 19,322,975 <F2>
<DEPRECIATION> 2,755,463
<TOTAL-ASSETS> 20,857,176
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 20,783,592 <F3>
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 20,857,176
<SALES> 0
<TOTAL-REVENUES> 1,908,799 <F4>
<CGS> 0
<TOTAL-COSTS> 426,555 <F5>
<OTHER-EXPENSES> (258,808) <F6>
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,741,052
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1> "SECURITIES" REPRESENTS INVESTMENTS IN JOINT VENTURE
<F2> "PP&E" REPRESENTS INVESTMENT IN REAL ESTATE [LAND AND
BUILDING]
<F3> "COMMON" REPRESENTS TOTAL PARTNERS CAPITAL
<F4> "TOTAL REVENUES" REPRESENTS RENTAL, INTEREST, AND OTHER
INCOME
<F5> "TOTAL COSTS" REPRESENTS TOTAL EXPENSES
<F6> "OTHER EXPENSES" REPRESENTS EQUITY INTEREST IN JOINT
VENTURES' NET INCOME
</FN>
</TABLE>
